There are many misunderstandings about the business cycle and how it can impact an economy. Determine if each of the given statements are true or false.

1. Business cycles can be described as fluctuations from the economy's long-term growth trend.
2. The four phases of business cycles are peaks, troughs, expansions, and recessions.
3. Business cycles are common in emerging economies but not in developed economies.
4. When a business cycle reaches the trough, the economy is usually operating at its capacity.
5. The peak of a business cycle is followed by a downturn or recession.
6. Business cycles last for followed by a downturn or recession approximately nine months.

Answers

Answer 1

Answer:

1. True

2. True

3. False

4.False

5.True

6.False

Explanation:

1. Business Cycles are basically due to country's economic growth trends. When a country's economy is prospering then the Business Cycle will be in a expansion category.

2. There are four phases of business cycle in an economy. Peaks, Troughs, Expansions and Recession. Expansion stage is characterized as when the economy is a country is growing, country is in a developing stage and employment increases.  

3. Business cycles are for every country. Even the developed countries face Business Cycle fluctuations due to Ups and Downs in an economic condition.

4. It is usually not true that the economy is operating at its capacity when it faces troughs in a Business Cycle. Trough is a stage where there is minimum of investment in a country, unemployment is increased, growth is business is near to zero and decline in business activities.

5. When an economy reaches to peak in a Business Cycle it then follows it cycle and enter into a recession or a downturn. At peak when there is end of expansion in a business it starts contacting and recession happens in a Business Cycle.  

6. Business Cycle may last for a few months or a year but it is not necessary that each Business Cycle lasts for exactly nine month. It can be lower or greater depending on the economic conditions of a country.

Answer 2

Final answer:

Business cycles consist of four phases—expansion, peak, contraction, and trough—and occur in all economies. A peak is followed by a downturn, and the trough signifies the lowest economic activity, not operating at full capacity. Business cycles do not have a fixed duration.

Explanation:

True or false: Business cycles can be described as fluctuations from the economy's long-term growth trend. This statement is True. Business cycles represent the short-term variations in economic activity relative to a long-term growth pattern.

True or false: The four phases of business cycles are peaks, troughs, expansions, and recessions. This statement is True. These are the commonly accepted four phases of the business cycle, each with distinct characteristics and economic impacts.

True or false: Business cycles are common in emerging economies but not in developed economies. This statement is False. Business cycles occur in all types of economies, regardless of their development status.

True or false: When a business cycle reaches the trough, the economy is usually operating at its capacity. This statement is False. The trough represents the lowest point in the business cycle, where economic activity is typically at its lowest, not its capacity.

True or false: The peak of a business cycle is followed by a downturn or recession. This statement is True. The peak is the highest point of the business cycle, after which economic activity generally declines, leading to a recession.

True or false: Business cycles last for approximately nine months. This statement is False. The duration of business cycles can vary greatly and is not limited to a specific time frame.


Related Questions

Panther Co. had a quality-assurance warranty liability of $359,000 at the beginning of 2018 and $308,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $44 million for the year. What were the warranty expenditures for 2018?

a. $1,320,000
b. $1,269,000
c. $0
d. $1,371,000

Answers

Answer:

d.$1,371,000

Explanation:

Given that

Warranty liability at the beginning of year = $359,000

Warranty liability at the end of year = $308,000

Warranty expense = $44 million

Sales percentage = 3%

So, the warranty expense = $44,000,000 × 3% = $13,20,000

So, the warranty expenditures for 2018 is

= Beginning warranty liability + warranty expense - ending warranty liability

= $359,000 + $13,20,000 - $308,000

= $1,371,000

Which of the following executive roles is responsible for overall priority setting, project selection and prioritization, general guidance and encouragement?a. Steering Team b. Sponsor c. Project Management Office d. Chief Projects Officer

Answers

Final answer:

The executive role responsible for overall priority setting, project selection and prioritization, general guidance and encouragement is the Steering Team.

Explanation:

The executive role responsible for overall priority setting, project selection and prioritization, general guidance and encouragement is the Steering Team.

The Steering Team is usually made up of high-level executives who set the direction and make crucial decisions for the organization. They prioritize projects based on the organization's goals and strategic objectives. They also provide general guidance and encouragement to ensure projects stay on track.

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Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to

a. reduce productivity. Other things the same, this decrease will be larger in a rich country.

b. reduce productivity. Other things the same, this decrease will be larger in a poor country.

c. raise productivity. Other things the same, this increase will be larger in a poor country.

d. raise productivity. Other things the same, this increase will be larger in a rich country.

Answers

Answer:

The correct answer is letter "B": reduce productivity. Other things the same, this decrease will be larger in a poor country.

Explanation:

Labor productivity measures the units a worker can produce per hour. Capital, technology, and human development influence the labor productivity employees could have. Poor countries are characterized by having low investments. If the labor force increases but the capital remains stagnant, the level of productivity is likely to fall since there is a surplus in labor hand.

Final answer:

In short, an increase in working population tends to reduce productivity, which is likely to be more pronounced in a rich country because of the higher initial capital per worker. However, the correct option is that productivity decreases and is more impacted in a poor country. Option b is correct.

Explanation:

An increase in the working population has different effects on productivity depending on whether it's a rich or a poor country. In the short term, an increase in the working population is likely to reduce productivity because the same amount of capital is now spread over more workers, reducing the amount of capital per worker.

In a rich country, where the amount of capital per worker is typically higher, this reduction in productivity may be larger because the gains from additional labor are less when capital is already abundant. Conversely, in a poor country, where capital is scarce, adding more labor can actually make better use of the limited capital, such as in the example of more taxi drivers sharing a single vehicle to increase its time on the road and thus, its productivity. In this case, the decrease in productivity due to more workers sharing the same capital might be less pronounced than in a rich country.

Therefore, the correct answer is b. reduce productivity. Other things the same, this decrease will be larger in a poor country.

A product sells for $125, variable costs are $80, and fixed costs are $45,000. If the selling price can be increased by 20% with a similar increase in variable costs, how many fewer units would have to be sold to earn $300,000? (Round the answer to the nearest unit.)

Answers

Final answer:

To earn $300,000, we need to set up an equation and solve for the number of units that need to be sold.

Explanation:

To calculate the total revenue, we multiply the selling price by the number of units sold. In this case, the selling price of the product is $125. Let's assume that the number of units sold is x. So, the total revenue is 125x.

With a 20% increase in the selling price and the variable costs, the new selling price would be 1.2 times the original selling price ($125 x 1.2).

Similarly, the new variable costs would be 1.2 times the original variable costs ($80 x 1.2).

To earn $300,000, the total revenue must be equal to the total costs, which include the variable and fixed costs.

So, we can set up the following equation: 1.2(125x) = (80 x 1.2)x + $45,000 + $300,000.

Solving this equation will give us the value of x, which represents the number of units that need to be sold to earn $300,000.

Which of the following types of value chain processes directly creates and delivers goods and services to customers? Question 3 options: General management processes Postproduction processes Support processes Core processes

Answers

Answer:

Core process:

Explanation:

The value chain is considered to be that network that defines the way of distributing goods and services to the customers. It also consists of details of all transaction that is done throughout the process of distributing goods to the customers.

The Core Process is a process in involves in the value chain which handles the delivery of goods and services directly to the customers

Kristen, a single taxpayer, receives two 2018 Forms W-2 from the two employers she worked for during the year. One Form W-2 lists her wages in Boxes 1, 3, and 5 as $18,700. Her other employer’s Form W-2 has $43,000 in Box 1 but $46,500 in both Box 3 and Box 5. Kristen participated in the second employer’s 401(k) plan. She also received health care from her second employer. Lastly, her second employer provided $30,000 of group term life insurance to Kristen.

a. What amount should Kristen report as taxable wages in 2018?
$

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The primary form of reporting wages to an employee is through Form W-2. An employee should receive a Form W-2 from an employer, each year, providing information about the wages paid, taxes withheld, as well as certain employee benefits. The employee uses the information provided on the Form W-2 when filing his or her individual income tax return.
b. What could explain the difference between Box 1 wages and Boxes 3 and 5 on her second employer’s W-2?

Answers

Answer:

A) $61,700

B) Kristen's contributions ($3,500) to her employer's 401(k) plan cause the difference between Boxes 3 and 5, and Box 1 in Kristen's second W-2 Form.

Explanation:

A) Kristen's taxable wages = Box 1 of the first W-2 Form: $18,700, plus Box 1 of the second W-2 Form: $43,000. If the group term life insurance was larger than $50,000, Kristen should have reported the premiums as part of her taxable income, but since the amount is lower ($30,000) it is not taxed.  

In terms of mission, aspirations, and risk propensity, what are investors looking for in a team? Select one: a. That its missions and aspirations are closely aligned with those of the entrepreneurial team b. That the entrepreneurs are willing to share in the financial risk of the venture c. That the entrepreneurs are ultimately willing to exit the business d. All of the above

Answers

Answer:

a.That its missions and aspirations are closely aligned with those of the entrepreneurial team

Explanation:

Separation between the investors and the management team of a business brings about business interest risk. The business interest risk is the probability that the investors interest will be different from the business management interest. In order to align their interests with that of the entrepreneurial team of a business, investors normally for missions and inspirations that are closely aligned with those of the entrepreneurial team.

This congruence is important for boosting investors` confidence in the entrepreneurial team, because it shows that the investors and the entrepreneurial team are on the same page.

Option B is obvious in all business. It can`t be a deciding factor.

Option C is incorrect for this context.

Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:

Jan. 1 Issued common stock in exchange for $103,000 cash.

2 Purchased inventory on account for $38,000 (the perpetual inventory system is used).

4 Paid an insurance company $2,760 for a one-year insurance policy. Prepaid insurance was debited for the entire amount.

10 Sold merchandise on account for $12,300. The cost of the merchandise was $7,300.

15 Borrowed $33,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.

20 Paid employees $6,300 salaries for the first half of the month.

22 Sold merchandise for $10,300 cash. The cost of the merchandise was $6,300.

24 Paid $15,300 to suppliers for the merchandise purchased on January 2.

26 Collected $6,150 on account from customers.

28 Paid $1,000 to the local utility company for January gas and electricity.

30 Paid $4,300 rent for the building. $2,150 was for January rent, and $2,150 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts.


Required:
1. Prepare general journal entries to record each transaction.
2. Post the transactions into the appropriate T-accounts.
3. Prepare an unadjusted trial balance as of January 30, 2021.

Answers

Answer:

1. General journal entries to record each transaction.

Jan. 1                         Dr.             Cr

Cash                      $103,000

Common Stock                      $103,000

Jan. 2                         Dr.             Cr

Inventory              $38,000

Account Payable                   $38,000

Jan. 4                           Dr.             Cr

Prepaid Insurance  $2,760

Cash                                           $2,760

Jan. 10                            Dr.             Cr

Account Receivable  $12,300

Sale                                             $12,300

Cost of Goods Sold   $7,300

Inventory                                     $7,300

Jan. 15                            Dr.             Cr

Cash                          $33,000

Note Payable                               $33,000

Jan. 20                            Dr.             Cr

Salary Expense         $33,000

Cash                                              $33,000

Jan. 22                            Dr.             Cr

Cash                           $10,300

Sale                                             $10,300

Cost of Goods Sold   $6,300

Inventory                                     $6,300

Jan. 24                            Dr.             Cr

Account Payable       $15,300

Cash                                              $15,300

Jan. 26                           Dr.             Cr

Cash                          $6,150

Account Receivable                     $6,150

Jan. 28                            Dr.             Cr

Utility Expense          $1,000

Cash                                              $1,000

Jan. 30                            Dr.             Cr

Rent Expense              $2,150

Prepaid Rent               $2,150

Cash                                              $4,300

2.

MS Excel File is attached for T accounts Posting in Worksheet Named as " T Account". Please Find that.

3.

MS Excel File is attached for unadjusted trial balance in Worksheet Named as " Trial Balance". Please Find that.

Final answer:

To compute the firm's accounting profit, subtract the total expenses ($950,000) from the sales revenue ($1 million), resulting in an accounting profit of $50,000 for the year.

Explanation:

The question concerns the calculation of a firm's accounting profit, which is determined by subtracting all expenses from sales revenue. To calculate the accounting profit, we take the firm's total sales revenue of $1 million and deduct the costs of labor, capital, and materials, which are $600,000, $150,000, and $200,000 respectively.

Accounting profit = Sales revenue - (Labor costs + Capital costs + Materials costs)
Accounting profit = $1,000,000 - ($600,000 + $150,000 + $200,000)
Accounting profit = $1,000,000 - $950,000
Accounting profit = $50,000

This calculated figure represents the firm's net income or accounting profit for the year, after accounting for the explicit costs.

Brief Exercise 12-8 have a carrying Ayayai Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $300,000. The Johnson Division's net assets, including the good amount of $650,000. The fair value of the division is estimated to be $620,000 and the implied goodwill is $270,000 Prepare Ayayai journal entry to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Answers

Answer:

Explanation:

Since the fair value of the division is less than the carrying value of the division so the loss on impairment is recorded

The journal entry to record the impairment of the goodwill is shown below:

Loss on impairment A/c Dr $30,000

                       To Goodwill A/c $30,000

(Being loss on impairment is recorded)

The computation is shown below:

= Carrying value - fair value  

= $300,000 - $270,000

= $30,000

Final answer:

To record the impairment of goodwill, Ayayai Corporation would debit Loss on Impairment of Goodwill for $30,000 and credit Goodwill for the same amount, reflecting the decrease from the previously recorded $300,000 to the new implied goodwill of $270,000.

Explanation:

The student's question involves recording an impairment of goodwill for Ayayai Corporation's purchase of Johnson Company. Initially, goodwill of $300,000 was recorded, but due to impairment, the fair value decreased, and the implied goodwill is now at $270,000. To record the impairment loss, the company would need to make the following journal entry:

Loss on Impairment of Goodwill             Debit   $30,000
  Goodwill                                     Credit  $30,000
This entry represents the reduction in the carrying amount of the goodwill. The Loss on Impairment of Goodwill is debited to reflect the expense incurred due to a decline in the recoverable amount of the goodwill, and the Goodwill account is credited to reduce its balance.

The potential difference between two parallel plates is 458 V. An alpha particle with mass of 6.64 ×10−27 kg and charge of 3.20 ×10−19 C is released from rest near the positive plate. What is the speed of the alpha particle when it reaches the other plate? The distance between the plates is 40.6 cm.

Answers

Answer:

21.01 × 10⁴ m/s

Explanation:

Data provided in the question:

Potential difference between two parallel plates, V = 458 V

Mass of the alpha particle = 6.64 × 10⁻²⁷ kg

Charge released, q = 3.20 × 10⁻¹⁹ C

Distance between the plates, d = 40.6 cm

Now,

qV = [tex]\frac{1}{2}mv^2[/tex]

on substituting the respective values, we get

(3.20 × 10⁻¹⁹) × 458 = [tex]\frac{1}{2}\times(6.64\times10^{-27})v^2[/tex]

or

1465.6 × 10⁻¹⁹ = (3.32 × 10⁻²⁷)v²

or

v = 21.01 × 10⁴ m/s

A company that accepts responsibility for a problem and does all that society expects to solve that problem is using a:_______. a) defensive strategy. b) a proactive strategy. c) an accommodative strategy. d) a reactive strategy.

Answers

The company is using an accommodative strategy by accepting responsibility for a problem and doing all that society expects to solve that problem.

What is an Accommodative strategy?

An accommodative strategy can be defined as a strategy when an organization chooses to claim responsibility for a crisis and works on the creation of strategies that would avoid the possibilities of future crises.

In business terms, an accommodative strategy is a strategy under which management takes a positive view towards Corporate Social Responsibilities and acts positively to fulfill the needs of society.

Therefore the correct option is C.

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What is the relationship between the Employee class and the Manager class? What concept does this demonstrate

Answers

Answer:

Here, The Manager class is a child class of Employee class. There is an “Is-A” relationship between the manager and employee classes. Here Manager class extends from Employee class. That means Manager “is an” Employee.

It means Manager class objects will have the fields of the Employee class but it cannot access them on its own as my Name, my Title and my Age are declared private. It has to use super keyword and super class methods and constructors to access those fields. But, Manager class can access mySalary on its own because it is declared protected. As a sub class object can call super class methods ( which are public and protected ), the sub class objects can access those field indirectly by using super class constructors and methods. It means the Manager class cannot directly control the Employee class fields without using Employee class constructors and methods.

True or False: The shape of the production function reflects the law of diminishing marginal returns. True False

Answers

Answer: True

Explanation: The slope of the production function measures the change in output for each additional unit of input (the marginal return). It can be observed that the production function becomes flatter as more number of input is added. This exhibits the property of diminishing marginal return where at some point, adding an additional factor of production results in smaller increases in output. At this point, the effectiveness of each additional unit of input decreases.

It should be noted that the shape of the production function reflects the law of diminishing marginal returns.

What is production function?

Production function, serves as the equation that explains the relationship that exists between the quantities of productive factors as well as the

amount of product obtained.

It helps to reflects the law of diminishing marginal returns.

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In deciding whether or not to expand operations to Singapore, Digital Control Enterprises performed a(n) _______, in which it identified and analyzed the economic, social and competitive factors that may affect its success.

Answers

Answer:

Environmental scanning

Explanation:

Environmental scanning nos done by new businesses that are entering a new market and it involves gathering information about events within a market space and how they affect an organisation's internal and external environment. It is used to determine the future direction of the organisation.

Digital Control Enterprises is performing a environmental scan to determine if they will expand operations in Singapore.

Prahm Corp. wants to raise $4.4 million via a rights offering. The company currently has 500,000 shares of common stock outstanding that sell for $45 per share. Its underwriter has set a subscription price of $20 per share and will charge the company a spread of 6 percent. If you currently own 3,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights?

Answers

Answer:

price for selling 3000 share right is $25060.87

Explanation:

Given data:

Total Amount raised=   $4,400,000  

Spreading rate = 6%

Subscription price =   $20 per share

Number of share owned by company = 500,000

Per share cost  = $45

Totals share own in the company = 3000

subscription price after deducting spreading rate [tex]= 20\times (1 -0.06) = $18.80[/tex]

Now, Right share [tex] = \frac{4400000}{18.8} = 234,043[/tex]

Right price is calculated as

Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)

plugging all value in above relation

                 [tex]= \frac{500000 \times 45 + 234043\times 18.8}{500000 + 234043}[/tex]

Right share = $36.65

single right value = 45- 36.65 = $8.35

Price for 3000 share right = 8.35 *3000 = $25060.86

The following represent activities in Marc Massoud’s Construction Company project.

a)Draw the network to represent this situation.

b)Which activities are on the critical path?

c)What is the length of the critical path?

Activity Immediate Predecessor(s) Time (weeks) Activity Immediate Predecessor(s) Time (weeks) A — 1 E B 2 B — 4 F C, E 7 C A 1 G D 2 D B 5 H F, G 3

Answers

Answer:

BEFH  is the critical path of this project with total duration of 16 weeks

Explanation:

Activity     Predecessor     Time

A                -                          1

B                -                          4

C                A                         1

D                B                         5

E                 B                         2

F                 C,E                      7

G                 D                        2

H                F,G                      3              

First we draw the network diagram, as shown in the attachment, according to the predecessors of each activity.

Critical activties have zero float (i.e, difference in values of final and initial start or finish of activty)

Critical Path: BEFH

Length: As shown in figure the length of critical path is 16 weeks. In other words, it takes 16 weeks to complete the project.

Answer:

Explanation:

The activities on the critical path are BEFH

The length of the critical path is 16 weeks

One approach to organization is putting activities that are similar under one person. ________ called this ""unity of direction.""

Answers

Answer:

Explanation:

One approach to organization is putting activities that are similar under one person. Fayol called this ""unity of direction."" . Fayol was the first person who outlined the functions of management. He has fourteen principles of management; Unity of directions is one of the principle which narrates that  One boss, one plan for a group, of activities having the same objective. As unity of direction principle, it leads all the members of the organization towards a common goal to achieve its objective.

Final answer:

Henri Fayol proposed the principle of 'unity of direction,' suggesting that similar activities should be managed together, which relates to modern business practices emphasizing core competencies and specialized product lines.

Explanation:

The principle of unity of direction was espoused by Henri Fayol, a French mining engineer and a key figure in the development of modern concepts of management. Unity of direction means that activities which are similar in nature should be managed under one plan and by one manager. This principle aligns with the shift in organizational structures we observe in modern times, where there's a greater emphasis on flat organizational structures and centrality of teamwork. Despite the trend towards less hierarchy and increased collaboration across roles, Fayol's principles still echo in today's business practices where focusing on a core competency and specialized product lines often leads to better success for firms rather than spreading efforts across a wide range of products.

Assume that a consumer is currently maximizing satisfaction and attending both movies and basketball games. If the price of movies decreases, what will happen to the marginal utilities of movies and of basketball games once the consumer adjusts to the new price of movies?

Answers

Answer and explanation:

Marginal Utility refers to the benefit or satisfaction obtained from consuming one more unit of a good or service. In economics, something has utility if it satisfies any consumer want or needs whether for usefulness or pleasure. It is a subjective term.

Thus, if the price of ticket movies decreases, its marginal utility will decrease and the marginal utility of tickets for basketball games will increase.

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 18,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $25,200. A total of 53,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.6 for materials and $3.3 for conversion costs. The total cost of the units completed and transferred out of the department was:

A. $259,700
B. $254,180
C. $189,740
D. $225,380

Answers

the correct answer is c

Ashton is an investor looking at the income statements of two different companies. The first company has a very detailed income statement, and the second company has a very condensed income statement. Which company is Ashton more likely to invest in? Why?

Answers

Answer:

The first company with detailed information.

Explanation:

Financial statements show the financial position of a company at a particular period in time. The various types are balance sheet, income statement, and cash flow statement.

The income statement shows more clearly value of the company.

When Ashton is studying the income statement, he will need as much detail as possible so that he can make informed decision to invest.

The company with detailed income statement will be a better option. The company with condensed income statement will most likely not reveal some important information that will present itself as an unpleasant surprise in the future.

Final answer:

Ashton is more likely to invest in the company with the condensed income statement. A condensed income statement provides a summary of the company's financial performance in a concise manner. This suggests that the company may be well-managed and focused on key financial metrics.

Explanation:

Ashton is more likely to invest in the company with the condensed income statement. A condensed income statement provides a summary of the company's financial performance in a concise manner, making it easier for Ashton to quickly identify key information. In contrast, a detailed income statement may be overwhelming and time-consuming to analyze.

Additionally, a condensed income statement indicates that the company has a good understanding of its financial performance and can present its information efficiently. This suggests that the company may be well-managed and focused on key financial metrics.

Therefore, Ashton is more likely to invest in the company with the condensed income statement as it provides a clearer and more efficient overview of the company's financial performance.

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You have $86,000 and decide to invest on margin. If the initial margin requirement is 50 percent, what is the maximum dollar purchase you can make?

Answers

Answer:

$172,000

Explanation:

Given that,

A person having a amount today for investment = $86,000

Initial margin requirement = 50 percent

Therefore,

Maximum dollar purchase he can make is as follows:

= Amount of money available ÷ Initial margin requirement

= $86,000 ÷ 50%

= $86,000 ÷ 0.50

= ($86,000 × 100) ÷ 50

= $172,000

Therefore, the maximum amount of dollar purchase is $172,000.

Lewis Industries owns 600,000 shares of Compton Corporation, which it originally purchased for $8 each. On December 1, 2020, Lewis declares it will distribute these shares to its stockholders as a dividend with a December 31 date of payment. The shares have a market price of $7 on the declaration date and $9 on the distribution date. If Lewis’ carrying value for the shares is $5, how much of a reduction in stockholders’ equity should it record as a result of this distribution?

Answers

Answer:

The equity will decrease through retained earnigns for 3,000,000 dollars

Explanation:

The company's accounting will distribute the shares at the carrying value of the shares which is $5 per share as for them that is how much they are worth.

600,000 shares x $5 each = $3,000,000

retained earnings 3,000,000 debit

 investment on Comption        3,000,000 credit

The equity will decrease through retained earnigns for 3,000,000 dollars

A certain delivery service offers both express and standard delivery. Seventy-five percent of parcels are sent by standard delivery, and 25% are sent by express. Of those sent standard, 80% arrive the next day, and of those sent express, 95% arrive the next day. A record of a parcel delivery is chosen at random from the company's files.

Answers

Answer:

Probability, P(n) = 3/8

Explanation:  Let standard delivery be S and express delivery be E.

I) When the parcels were sent:

S(n) = 75/100 and E(n) = 25/100

II) When the parcels arrived:

S(n)← = 80/100 and E(n)← = 95/100

The probability a record of a parcel delivery is chosen, P(n) = S(n)*E(n) + E(n)*S(n) = 75/100*25/100 + 25/100*75/100

P(n) = 3/16 + 3/16 = 6/16

∴ P(n) = 3/8

Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Which supply chain drivers impact asset turnover?

Answers

I would expect an online retailer to have a higher asset turnover over a brick-and-mortar retailer because they are more adaptable to change as per the customers choice ,they have many choice options for their customers and are more relaxed  with their product  pricing strategy.

Explanation:

Asset turnover ratio is used to calculate the productivity of an asset.A company's productivity is directly proportional to its asset turn over ratio.

The formula for calculating

Asset Turnover Ratio =Total Sales of an asset/Average total asset

The supply chain drivers that affect asset turnover are Accounts receivable,inventory ,transportation,information, facilities,sourcing and pricing.

Final answer:

An online retailer typically has a higher asset turnover than a brick-and-mortar retailer due to fewer physical assets. However, key supply chain drivers like production, inventory, location, transportation, information, and sourcing also significantly impact asset turnover.

Explanation:

Generally, an online retailer is likely to have a higher asset turnover than a brick-and-mortar retailer. This is because online retailers typically need fewer physical assets to operate and can therefore generate more sales per dollar of assets. However, other factors such as their inventory management and supplier relationships can also impact asset turnover.

The key supply chain drivers that impact asset turnover include production, inventory, location, transportation, information, and sourcing. Efficient management of these drivers can help reduce asset levels and increase sales, thus improving asset turnover. For instance, a company with efficient inventory management and supplier relationships may have a higher asset turnover ratio than its competitors even if it operates physical stores.

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Otis Thorpe Corporation has 10,000 shares of $100 par value, 8% preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2014.

Answer the questions in each of the following independent situations.

(a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2011, what are the dividends in arrears that should be reported on the December 31, 2014, balance sheet?
The dividends in arrears to be reported on the December 31, 2014​ = _______________
(b) If the preferred stock is convertible into 7 shares of $10 par value common stock and 4,000 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
c) If the preferred stock was issued at $107 per share, how should the preferred stock be reported in the stockholders’ equity section? (Enter account name only and do not provide descriptive information.)

Answers

Answer:

(a) Cumulative dividend is not reported in Balance sheet.

The dividends in arrears on December 31, 2014 is $240,000

(b) Preferred Stock (Dr.) $400,000

    Common Stock (Cr.) $280,000

     Paid in capital Excess of par (Cr.) $120,000.

(c) Cash (Dr.) $1,070,000

    Preferred Stock (Cr.) $1,000,000

    Paid in capital (Cr.) $70,000

Explanation:

a. Cumulative dividends on Preferred stocks are not declared and therefore they are not reported in Balance sheet of a company.

To calculate the dividends in arrears on December 31, 2014,

10,000 shares * $100 par value * 8% preferred stock. * 3 years arrears.

= $240,000.

b. Preferred stock conversion into common stock is recorded as common stock account in balance sheet.

Preferred stock conversion amount is 4,000 shares * $100 par value = $400,000. This is presented as debit entry.

The credit entry will be common stock account with $ 280,000 (4,000 * 7 shares conversion * $10 par value).

The difference in both entries will be recorded as paid in capital as credit.

c. When preferred stock is issued cash is increased so debit account will be cash (10,000 shares * $107 per share) and credit entry will be Preferred Stock account in balance sheet at par value (10,000 shares * $100 par value). The remaining is credited in paid in capital of preferred stock account  [10,000 shares * $7 ($107 - $100) per share].

Final answer:

The dividends in arrears should be reported as $240,000 on the December 31, 2014 balance sheet. When preferred stocks are convertible and 4,000 are converted, the business needs to debit Preferred Stock and credit to Common Stock. If the preferred stock was issued at $107, it is reported in the equity section as Preferred Stock and Paid-in Capital in Excess of Par (Preferred Stock).

Explanation:

(a) Dividends in arrears are calculated as the difference between the last payment date and the date of the Balance sheet. There are three years between December 31, 2011, and December 31, 2014. So, we need to calculate three years of dividends. The amount of the annual dividend is calculated as 8% of the par value (i.e., $100), so the annual dividend per share is $8. For 10,000 shares, it's $80,000 per year. Thus, for three years, it's $80,000 * 3 =  $240,000.

(b) If the preferred stock is convertible and 4,000 shares are converted, the entries would be a debit to Preferred Stock for $400,000 (4,000 shares times $100 par value), a debit to Paid-in Capital in Excess of Par (Preferred Stock) for the amount that the preferred stock was issued above its par value (if any), and a credit to Common Stock for $280,000 (4,000 shares times 7 new shares per original share times $10 par value) in the financial journal.

(c) If the preferred stock was issued at $107 per share, the preferred stock would be reported in the shareholders’ equity section as Preferred Stock ($1,000,000) and Paid-in Capital in Excess of Par (Preferred Stock) ($70,000).

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What are some of the innovative principles identified by James Brian Quinn that companies need to establish?

Answers

Answer and explanation:

American academic and author James Brian Quinn (1928-2012) found the following principles in large companies characterized by innovation: clear atmosphere and division; orientation to the market; small-size, flat organizations; multiple approaches; and, interactive learning.

Some of the innovative factors for company's establishment has been orientation, small, flat organization, multiple approaches, capital, freedom and encouragement.

James Brian Quinn has been American academic and author. He has been the inventor of managerial concept of intelligent enterprise.

According to James, the factor that has been led to the development of the company’s establishment has been:

Orientation: The development has been mediated with the market need. The atmosphere and the vision for the goal have played an important role in the establishment.

Small, flat organization: It has been mediated with the growth to the time. The entrepreneur’s have been started from the flat organization to mediate the growth of the organization or company.

Multiple approaches: The development with the chaos of the technology and the outside world has been mediating the growth of an organization.

Interactive learning: It has been mediated with the learning process to be a continuous with the development of the entrepreneur and the company.

The other factors that have been responsible for the company’s establishment have been flexibility, Availability of capital, incentives, along with freedom and encouragement.

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Jan and Sam have all of their 2018 tax documents ready to bring to George to prepare their return. These documents include a W-2 for Jan ($52,300), a W-2 for Sam ($48,700), a state tax refund of $475, canceled debt income of $1,800 for Jan, and state lottery winnings of $2,000. They never itemize deductions. What will be their total on Form 1040, line 7? a. $105.275 b. $104,800 c. $103,275 d. $103,000?

Answers

Answer:

The answer is b. $104,800

Explanation:

W-2 for Jan $52,300+  Sam $48,700 + canceled debt income of $1,800 + state lottery winnings of $2,000 = $104,800

Which of the following statements is FALSE about outsourcing? It saves both direct and indirect management time. It reduces implementation risk. It gains economies of scale. It guarantees a certain a level of quality. It provides easy access to expertise.

Answers

Answer: The correct answer is "It guarantees a certain a level of quality.".

Explanation: It is called outsourcing in the business world, the process in which an organization hires other external companies to take over part of its activity or production.

The statement "It guarantees a certain a level of quality." is FALSE because there is no guarantee that outsourcing always means providing a certain level of quality.

The outsourcing has been unable to provide the quality of work to the organization. Thus, option D is correct.

The outsourcing can be defined as the business practice that has been carried out by the hiring of third party for performing a specific task. The outsourcing has been adopted with the decreased level of management.

The outsourcing has been capable of implementing the reduction in the risk factor, as the task has been performed by the third party and they have been responsible for the inappropriate task.

It has been characterized with the easy access as well as the economic profit. However, it has been unable to provide the quality of work to the organization. Thus, option D is correct.

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In January, Dieker Company requisitions raw materials for production as follows: Job 1 $970, Job 2 $1,520, Job 3 $810, and general factory use $660. During January, time tickets show that the factory labor of $7,600 was used as follows: Job 1 $2,390, Job 2 $1,730, Job 3 $1,560, and general factory use $1,920.

Prepare the job cost sheets for each of the three jobs.

Answers

Answer:

Dieker Company

Job Cost Sheet of

                        Job1                             Job2                                   Job3

Materials        $970                            $ 1520                                 $ 810

Factory Labor  $2390                      $ 1730                                  $1560

General Factory

Indirect material  $ 660                     $ 660                                 $ 660

Indirect labor      $ 1920                     $ 1920                                $ 1920

Total                   $ 5940                      $5830                             $  4950

Cost of Job 1

Materials          $ 970

Factory Labor $ 2390

G. Factory          $ 2580

Total                 $ 5940

Cost of Job 2

Materials          $ 1520

Factory Labor $ 1730

G. Factory          $ 2580

Total                 $ 5830

Cost of Job 3

Materials          $ 810

Factory Labor $ 1560

G. Factory          $ 2580

Total                 $ 4950

Final answer:

The job cost sheets for Job 1, Job 2, and Job 3 are $3,360, $3,250, and $2,370 respectively, calculated as the sum of each job's raw materials and labor costs.

Explanation:

This is about preparing job cost sheets. Here's how to do it for each of the three jobs.

Job 1

Raw materials: $970
Labor: $2,390 Total cost: $3,360

Job 2

Raw materials: $1,520
Labor: $1,730
Total cost: $3,250

Job 3

Raw materials: $810
Labor: $1,560
Total cost: $2,370

Each of these totals represents the combined cost of raw materials and factory labor assigned to each job. General factory use costs are typically not assigned to specific jobs but are accounted as overheads.

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Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs are $540 and Haulsee’s inventory carrying costs average 14% of the inventory value. What is the total inventory costs? a. $565,443 b. $224,331 c. $211,555d. $211,555,120

Answers

Answer:

Correct answer is c. $211,555.

Explanation:

Here inventory cost means total ordering cost plus total carrying cost for they year. This can be determine by using simple EOQ (economic order quantity) formula given below.

EOQ =((2* Annaul Requirement * cost per order)/carrying cost per unit)^ (1/2)

EOQ = ((2*800,000*540)/(370*14%))^(1/2)

EOQ = 4,084 units

so

Total order cost = 800.000/4,084 * 540 = 196 (aprox) *540 = 105,840 -A

Total Carrying cost = 4,084/2 * (370*14%) = 105,776-B

Total Cost = A+B = $ 211,555 (aprox)

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