Answer:
The correct option is (a) 3,000,000(A∕F,10%,10).
Explanation:
Ordinarily, the equation to use to calculate the amount the company is required to deposit each year is given as follows:
A = F * (r / ((1 + r)^n - 1)) ....................... (1)
Where;
A = Annual deposit = ?
F = Future value or accumulated sum of amount = $3,000,000
r = Annual interest rate = 10%, or 0.01
n = Number of years.
The standard notation of equation (1) above is given as follows:
A = F(A / F, r, n) ................................ (2)
Substituting the relevant description from the above into equation (2), we have:
A = 3,000,000(A∕F,10%,10)
Therefore, the correct option is (a) 3,000,000(A∕F,10%,10).
Contracts are typically private agreements in that they bind the two parties and no one else. Thus, parties not in privity of contract usually do not have rights to a contract. However, there are exceptions to the general rule. This activity outlines the importance of paying special attention to ramifications that result from assigning or delegating a contract, including the effects these actions have on assignees. Read the case and then answer the questions to create a strategy for how someone might determine the results of the scenario. Katerina owned property in Miami right on the beach that she leased to Scotty. Scotty used the property for business purposes, which was allowed under the lease. Three months into the lease, Scotty transferred his lease to a sports agent company for $5,000, which became the new tenant under the lease. Katerina became upset with Scotty's transferring of the lease because she thought that since she leased the property to Scotty, he should not be allowed to let anyone else lease the property. Furthermore, she had a strong aversion to sports agents after watching the movie Jerry Maguire, and she did not want any money-grubbing sports agents working on her property. Subsequently, Katerina wonders whether there is any way she can limit the ability of Scotty to transfer the lease. Walk through the different types of transferring of rights and duties. What type of transfer of rights or duties is described in this case
Answer:
The type of transfer of rights or duties described in this case is an assignment of contract rights.
Explanation:
Transfer of contract rights or duties may be either the assignment or the delegation of contractual rights and responsibilities to a third party. While assignment involves the transfer of rights or benefits from the assignor to the assignee, delegation involves the appointment of another party to perform one's duties under a contract.
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $1.50 , and the equilibrium quantity is 21.0 . When the price is $8.75 , the quantity supplied of cat food is 57.0 and the quantity supplied of dog food is 107.0 . For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places.
Answer:
Elasticity of supply for dog food = 0.95
Explanation:
From the question, we have:
New quantity supplied of dog food = 107.0
Old quantity supplied of dog food = Initial equilibrium quantity = 21.0
New price = $8.75
Old price = Initial equilibrium price = $1.50
Generally, the formula for calculating the elasticity of supply is as
follows:
Elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)
Where, based on the midpoint formula, we have:
Percentage change in quantity supplied of dog food = {(New quantity supplied of dog food - Old quantity supplied of dog food) / [(New quantity supplied of dog food + Old quantity supplied of dog food) / 2]} * 100 = {(107.0 - 21.0) / [(107.0 + 21.0) / 2]} * 100 = 134.375%
Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(8.75 - 1.50) / [(8.75 + 1.50) / 2]} * 100 = 141.463414634146%
Substituting the values into equation (1), we have:
Elasticity of supply for dog food = 134.375% / 141.463414634146% = 0.94989224137931
Approximated to 2 decimal places, we have:
Elasticity of supply for dog food = 0.95
Which of the following does not represent trade talks or a "round" of negotiations?
the Doha Round
the Paris Round
the Kennedy Round
the Tokyo Round
Answer:
The Paris Round
Explanation:
Just finished.
Answer:
The paris round
Explanation:
I DID THIS PROBLEM
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: $52,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. Prepaid rent of $26,000, covering the period January 1, 2022, through December 31, 2023. Notes payable of $204,000. The notes are payable in annual installments of $22,000 each, with the first installment payable on March 1, 2022. Accrued interest payable of $14,000 related to the notes payable. Investment in equity securities of other corporations, $84,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.
Answer:
Cone Corporation
Current Assets:
Marketable securities $42,000
Long-term Assets:
Restricted Cash $52,000
Prepaid rent $26,000
Investment in equity securities $42,000
Current Liabilities:
Notes payable $22,000
Accrued Interest $14,000
Long-term Liabilities:
Notes payable $182,000
Explanation:
a) Data and Calculations:
1. Restricted Cash for bonds payable which mature in 2025 = $52,000 (Long-term asset)
2. Prepaid rent of $26,000 for 2022 to 2023 (long-term asset)
3. Notes Payable: Current liability = $22,000 Long-term liability = $182,000 ($204,000 - $22,000)
4. Accrued interest payable = $14,000 (current liability)
5. Investment in equity securities of $42,000 (long-term asset) Marketable Securities $42,000 (current asset)
Ian loaned his friend $30,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 8% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 8% on his investment. Calculate the annual payment and complete the following capital recovery schedule:
Answer:
Payment = Pmt(8%, 4, -30000) = $9,057.62
Interest Paid = Beginning amount * 8%
Principal paid = Payment - Interest Paid
End Balance = Beg Amount - Payment
Payment Beg Amount Payment Interest paid Principal paid End Balance
1 30,000 $9,057.62 2,400 6,657.64 23,342.38
2 23,342.38 $9,057.62 1,867.39 7,190.23 16,152.14
3 16,152.14 $9,057.62 1,292.12 7,765.45 8,386.69
4 8,366.39 $9,057.62 670.94 8,386.69 -
Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?
a. These managers are paid higher salaries than the low-performing managers.
b. These managers have external locus of control.
c. The employees within their departments tend to compete to reach productivity goals, which boosts performance.
d. The employees within their departments score high on agreeableness.
e. The employees within their departments are highly skilled and very knowledgeable about their jobs.
Answer:
E) The employees within their departments are highly skilled and very knowledgeable about their jobs.
Explanation:
Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span of control for management within his division. While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. In this case , the statement that regards high-performing managers is that The employees within their departments are highly skilled and very knowledgeable about their jobs. skilled employees are ones that posses special skills as well as knowledge and training that are needed in their various departments or section of work. They tends to make things easier for their manager since they know more about their work.
Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level of 0.5 to 0.55 in 30 days. Denver Financial seeks to capitalize on this potential opportunity. Suppose that Denver Financial begins by borrowing $30,000,000 and converting it to New Zealand dollars (NZ$). The following table shows the short-term interest rates (annualized) in the interbank market.
Currency Lending Rate Borrowing rate
(Adjusted for 30-day period) (Adjusted for 30-day period)
U.S. Dollars 6.62% 7.10%
New Zealand Dollars (NZ$) 6.38% 6.86%
Suppose that Denver Financial takes its NZ$60,000,000.00 and invests it. Denver Financial can earn a 0.0053 percent return after 30-days. Hint: Assume 360 days in a year At the end of 30-days, Denver Financial will have a total of NZ:___________(New Zealand dollars) from the investment.
a. $54287100
b. $42223300
c. $60319000
d. $48255200
Answer:
c. $60319000
Explanation:
My actual calculation was not exactly that number, it was NZ$60,318,000, but it is the closest option. You calculate it by multiplying the present value x (1 + interest rate) = $60,000,000 x (1 + 0.0053) = $60,000,000 x 1.0053 = $60,318,000
The question only asks to calculate the interest in NZ$, not to convert them to US$.
Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. Jackets can be sold as is to a secondhand clothing shop for $6 each.Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 each.Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,000 jackets into only 3,000 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each.Required:1. Calculate the incremental income.
Answer:
ALTERNATIVE 1 $30,000
ALTERNATIVE 2 $28,000
ALTERNATIVE 3 $33,000
Explanation:
Calculation for the incremental income
ALTERNATIVE 1 Sell as it is
Incremental revenue $30,000
(5,000*$6)
Incremental costs $0
Incremental Income $30,000
ALTERNATIVE 2 Disassemble and sell to recycler
Incremental revenue $60,000
(5,000*$12)
Incremental costs $32,000
Incremental Income $28,000
ALTERNATIVE3 Rework and turn into good jackets
Incremental revenue $135,000
(3,000*$45)
Incremental costs $102,000
Incremental Income $33,000
Therefore based on the above calculation the company should choose ALTERNATIVE 3 of the amount of $33,000
You are given an old car by your uncle, who wants you to keep it in working condition so that you can hand it off to your younger brother in three years. It will cost you $1,500 per year to keep it in working condition for your brother. If you skip maintenance altogether, the car will die after two years, but you can pocket the maintenance costs.
a. What will you be tempted to do?
Not do the maintenance, because the MC < MB of doing the maintenance and the MC > MB of doing the maintenance.
Do the maintenance, because the MC < MB of doing the maintenance and the MC > MB of doing the maintenance.
Not do the maintenance, because the MC < MB of doing the maintenance and the MC > MB of doing the maintenance.
Not do the maintenance, because the MC < MB of doing the maintenance and the MC < MB of doing the maintenance.
b. Would higher maintenance costs make you more or less likely to do what your uncle wants?
More likely, because the MB of not doing the maintenance rises and the MC of doing the maintenance also rises.
More likely, because the MB of not doing the maintenance falls and the MC of doing the maintenance also falls.
Less likely, because the MB of not doing the maintenance falls and the MC of doing the maintenance rises.
Less likely, because the MB of not doing the maintenance rises and the MC of doing the maintenance also rises.
Answer:
a. What will you be tempted to do?
the options do not make sense. You will be tempted to not do the maintenance because the MC of doing the maintenance is higher than the MB of doing the maintenance. In other words, you will probably value using the car for 2 years and not spending money more than spending $4,500 in car repairs.
b. Would higher maintenance costs make you more or less likely to do what your uncle wants?
Less likely, because the MB of not doing the maintenance rises and the MC of doing the maintenance also rises.
1. Marina Stengart used her company laptop to communicate with her lawyer via her
personal, password-protected, web-based email account. The company's policy
stated:
E-mail and voice mail messages, internet use and communication, and computer
files are considered part of the company's business and client records. Such
communications are not to be considered private or personal to any individual
employee. Occasional personal use is permitted; however, the system should
not be used to solicit for outside business ventures, charitable organizations,
or for any political or religious purpose, unless authorized by the Director of
Human Resources.
After she filed an employment lawsuit against her employer, the company hired an
expert to access her emails that had been automatically stored on the laptop. Are
these emails private?
Answer
cool
Explanation:
i dont know
Online retailers lose approximately 25% of their customers every year. Unfortunately, due to the highly competitive camping gear marketplace, Camp Plus loses approximately 35% of its customers every year to its competition, giving it a retention rate of only 65%. Using a discount rate of 10%, you calculate a CLV for each of the 10,000 customers in Camp Plus's database.
Answer:
CLV = [(GC * r) / (1 + i - r)] - AC]
Explanation:
CLV is the customer lifetime value which is the calculation of net profit during the tenure of relationship with the clients and customers.
The formula for CLV calculation is :
CLV = [(GC * r) / (1 + i - r)] - AC]
Where,
GC is annual gross contribution,
r is retention rate of customers
i is discount rate
AC is Acquisition cost
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
Khaled is a preschool teacher working at a public school, but he is considering quitting his job to start a daycare facility of his own. Indicate which of the four types of interdependency is most relevant to each factor in Khaled's decision. Use the market for daycare facilities as Khaled's market of interest.
A. Khaled knows there are few daycare facilities in the area, but many families looking for daycare.
B. An increase in graduation rates for teachers saturates the market for preschool teachers. This decreases the wages of teachers.
C. If Khaled opens his own facility, he will be responsible for taxes, insurance, licensing, and facility upkeep, among other things. However, as a teacher Khaled will only need to keep up his teaching license. In addition, Khaled will not be able to take a long vacation in the summer if he runs a daycare center.
D. Khaled is up for a raise in the next 6 months at his teaching job.
It should be noted that since Khaled knows there are few daycare facilities in the area, but many families looking for daycare, this illustrates an example of dependencies between people or business in the same market.
Interdependencies.It should be noted that an increase in graduation rates for teachers saturates the market for preschool teachers. This decreases the wage of teachers is an example of dependencies between markets.
In a scenario where Khaled opens his own facility, he will be responsible for taxes, insurance, licensing, and facility upkeep, among other things. However, as a teacher Khaled will only need to keep up his teaching license but will not be able to take a long vacation in the summer if he runs a daycare center, this is dependencies between each of your individual choices.
Lastly, when Khaled is up for a raise in the next 6 months at his teaching job, this scenario is an example of dependencies through time.
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Pro-tech Software acquired all of the outstanding stock of Reliable software for $14 million. The book value of Reliable's net assets( assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.
Answer:
$ 3,200,000
Explanation:
Calculation for the amount paid for goodwill.
Goodwill = $ 14,000,000 - ($8,300,000 + $ 2,500,000)
Goodwill = $ 14,000,000 -$10,800,000
Goodwill= $ 3,200,000
Therefore the amount paid for goodwill is $ 3,200,000
why do banks charge transaction fee?
Answer:
To make a profit and pay operating expenses,
Adam kisses the sleeve of Eve’s blouse, an act to which she did not consent. Has Adam committed a tort and if so, which one? Explain why this is or is not a tort.
Answer:
Yes, Adam committed a tort.
Explanation:
In the situation, when Adam kisses the sleeve of Eve's blouse but without her consent, he committed a tort. A tort can be defined as a civil wrong which harm other. Here, Adam's act of kissing the sleeve was an invasion of Eve's privacy. It also caused her emotional distress. Therefore Adam has a legal liability in this case as it is tort.
Presented below is information from Headland Computers Incorporated.
July 1 Sold $22,600 of computers to Robertson Company with terms 3/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,334 will be honored on these sales.
10 Headland received payment from Robertson for the full amount owed from the July transactions.
17 Sold $256,100 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30 The Clark Store paid Headland for its purchase of July 17.
Required:
Prepare necessary ournal entries for Headland computers.
Answer:
July 1
Dr Accounts receivable $22,600
Cr Cash $22,600
Dr Sales returns and allowances $1,334
Cr Allowances for Sales returns and allowances $1,334
July 10
Dr Cash $21,922
Dr Sales Discount $678
Cr Accounts Receivable $22,600
July 17
Dr Accounts receivable $256,100
Cr Sales revenue $256,100
July 30
Dr Cash $256,100
Cr Accounts receivable $256,100
Explanation:
Preparation of the necessary journal entries for Headland computers.
July 1
Dr Accounts receivable $22,600
Cr Cash $22,600
Dr Sales returns and allowances $1,334
Cr Allowances for Sales returns and allowances $1,334
July 10
Dr Cash $21,922
($22,600-$678)
Dr Sales Discount $678
(3%*$22,600)
Cr Accounts Receivable $22,600
July 17
Dr Accounts receivable $256,100
Cr Sales revenue $256,100
July 30
Dr Cash $256,100
Cr Accounts receivable $256,100
American Fabrics has budgeted overhead costs of $990,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 450,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are: cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $360,000 and $630,000 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool Cotton Total
Machine hours 100,000 100,000 200,000
Number of setups 1,000 500 1,500
Calculate the overhead rates for activity-based costing using the traditional approach. (Round answers to 2 decimal places, e.g. $12.25.)
Overhead rates for activity-based costing
Cutting $... per machine hour
Design $... per setup
Overhead rates using the traditional approach ... per direct labor hour
Answer:
Results are below.
Explanation:
To calculate the activities rates, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Cutting= 360,000 / 200,000= $1.8 per machine hour
Design= 630,000 / 1,500= $420 per setup
Now, we need to determine the predetermined overhead rate for the whole company based on direct labor hours:
Predetermined manufacturing overhead rate= 990,000 / 450,000
Predetermined manufacturing overhead rate= $2.2 per direct labor hour
Boxer Company owned 24,000 shares of King Company that were purchased in 2019 for $350,000. On May 1, 2021, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 46,000 shares of Boxer stock outstanding. The market price of the King stock was $20 per share on the date of declaration and $39 per share on the date of distribution. By how much is retained earnings reduced by the property dividend
Answer:
$92,000
Explanation:
Calculation for By how much is retained earnings reduced by the property dividend
Using this formula
Reduction in Retained earnings=(Boxer stock outstanding/Declared property dividend )×King stock market price)
Let plug in the formula
Reduction in Retained earnings=(46,000/10 shares ) x $20
Reduction in Retained earnings= $92,000
Therefore By how much is retained earnings reduced by the property dividend is $92,000
Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using a factor formula, and a single-cell spreadsheet function that includes an EFFECT function.
The equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per week is:_________
Answer:
$8,693
Explanation:
Effective annual interets rate: AI = (1+i/m)^n - 1
i = 3*2=6%, m = 26
AI = [1+6%/26]^26 - 1
AI = 1.0617 - 1
AI = 0.0617
Let semi annual income be $X. So, present value of four semiannual income will be aggregated to get principal invetsed money of $30,000
30,000 = ∑[X/1.0617^n}
30,000 = 3.451 * X
X = 8693.132425383947
X = $8,693
Therefore, firm have to earn $8,693 after every 6 months at an interest rate of 3% per week to recover $30,000 initial investment in 2 years
The firm has to earn $8,693 after every 6 months at a rate of interest of 3% per week to recover $30,000 initial investment in 2 years.
What do you mean by present value?Present value(PV) is the present value of future cash flows or cash flows provided for a specified amount of return. Future cash flows are reduced by the discount rate, and when the discount rate is high, the present value of future cash flows decreases.
As per the given information:
[tex]\rm\,Effective \;annual \;interest \;rate: AI = (1+\frac{i}{m} )^{n} - 1\\\\i = 3\times2=6\%, \rm\,m = 26\\\\AI = [1+\dfrac{6\%}{26} ]^{26} - 1\\\\AI = 1.0617 - 1\\\\AI = 0.0617[/tex]
Let semi-annual income be $X.
So, the present value of four semiannual incomes will be aggregated to get principal invested money of $30,000
[tex]30,000 = \rm\,Summation[\frac{X}{1.0617} ^{n}]\\\\30,000 = 3.451 \times \rm\,X\\\\X = 8693.132425383947\\\\X = \$8,693[/tex]
Hence, the firm has to earn $8,693 after every 6 months at a rate of interest of 3% per week to recover $30,000 initial investment in 2 years.
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Selling price$85 100% Variable expenses 51 60 Contribution margin$34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used
Answer:
The company should use high-quality components. It will increase the net operating income by $2,080 (13,480 - 11,400).
Explanation:
First, we need to calculate the current net operating income:
Net operating income= total contribution margin - fixed costs
Net operating income= 2,600*34 - 77,000
Net operating income= $11,400
Now, the Net operating income including the high-quality component:
Unitary contribution margin= 85 - 56= $29
Number of units= 2,600*1.2= 3,120
Net operating income= 3,120*29 - 77,000
Net operating income= $13,480
The company should use high-quality components. It will increase the net operating income by $2,080 (13,480 - 11,400).
A furniture company using accrual accounting purchased 20 sofas in November 2011. In December 2011, 8 of the 20 sofas were sold to customers. The customers all signed contracts agreeing to pay half the amount owed in February 2012 and the remaining half in March 2012. At the time of sale, the company was reasonably sure the customers would pay the amount owed. The furniture company pays its salespeople a commission on each sofa sold, with commissions for December 2011 sales paid in January 2012. The furniture company paid $3,000 for advertising that ran in the local newspaper in November 2011. In which month should advertising costs be expensed
Answer:
November 2011
Explanation:
Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.
Suppose that Portugal and Germany both produce oil and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 barrels of oil while Germany's opportunity cost of producing a pound of cheese is 11 barrels of oil.
By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of oil.
Suppose that Portugal and Germany consider trading cheese and oil with each other. Portugal can gain from specialization and trade as long as it receives more than of oil for each pound of cheese it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than of cheese for each barrel of oil it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of oil) would allow both Germany and Portugal to gain from trade?
a. 7 barrels of oil per pound of cheese
b. 18 barrels of oil per pound of cheese
c. 2 barrels of oil per pound of cheese
d. 5 barrels of oil per pound of cheese
Answer:
Portugal and Germany and Comparative Advantage
a. Portugal
b. Germany
c. 3 barrels of oil
d. 1/11 barrels of cheese
e. 4 (11/3) barrels of oil per pound of cheese.
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of oil
Germany's opportunity cost of producing a pound of cheese = 11 barrels of oil
3/11 = 0.27
b) Portugal enjoys comparative advantage in the production of cheese while Germany enjoys comparative advantage in the production of oil because Portugal can produce cheese at lower costs than Germany while Germany can produce oil more efficiently than Portugal. When these two countries specialize in the production of the product that they enjoy comparative advantage, more goods will be produced in total, and they can exchange their surpluses with each other.
Suppose a group of competitive producers can produce two different goods (shovels and hammers) with basically the same resources. Most are currently producing many shovels and fewer hammers. The demand for hammers increases. What is likely to happen in the market for shovels
Answer:
The demand for hammers increases is likely to happen in the market for shovels is described below in complete details.
Explanation:
The equilibrium capacity will decline; the equilibrium price will decline.
Reason - The equilibrium capacity will decline as the market for shovels drop while the supply persists steadfast. And, the equilibrium price will also decline as there is a surplus capacity of shovels with an undersized market.
Falisari Corporation has computed the following unit costs for the year just ended:
Direct material used $ 25
Direct labor 19
Variable manufacturing overhead 35
Fixed manufacturing overhead 40
Variable selling and administrative cost 17
Fixed selling and administrative cost 32
Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing?
Variable Costing Absorption Costing
A. $ 79 $ 119
B. $ 79 $ 151
C. $ 96 $ 119
D. $ 96 $ 151
E. None of the answers is correct.
Answer:
A. $ 79 $ 119
Explanation:
Calculation for the choices that correctly depicts the per-unit cost of inventory under variable costing and absorption costing
Calculation for Variable costing using this formula
Variable costing = Direct materials + Direct labor + Variable Manufacturing Overhead
Let plug in the formula
Variable costing = = $25 + $19 + $35
Variable costing = $79
Calculation for Absorption costing using this formula
Absorption costing = Direct materials + Direct labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead
Let plug in the formula
Absorption costing= $25 + $19 + $35 + $40
Absorption costing= $119
Therefore the choices that correctly depicts the per-unit cost of inventory under variable costing and absorption costing are :$ 79 $ 119
Opinion polling and market research are examples of stratified random sampling.
A
True
B
False
he 2021 income statement of Adrian Express reports sales of $16,281,000, cost of goods sold of $9,851,500, and net income of $1,610,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 610,000 $ 770,000 Accounts receivable 1,420,000 1,010,000 Inventory 1,820,000 1,410,000 Long-term assets 4,810,000 4,250,000 Total assets $ 8,660,000 $ 7,440,000 Liabilities and Stockholders' Equity Current liabilities $ 2,010,000 $ 1,670,000 Long-term liabilities 2,310,000 2,410,000 Common stock 1,990,000 1,990,000 Retained earnings 2,350,000 1,370,000 Total liabilities and stockholders' equity $ 8,660,000 $ 7,440,000 Industry averages for the following four risk ratios are as follows: Average collection period 25 days Average days in inventory 60 days Current ratio 2 to 1 Debt to equity ratio 50% Required: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days in a year. Round your answers to 1 decimal place.)
Answer:
ADRIAN EXPRESS
1. Average Collection Period = 365/Average Receivable Turnover Ratio
= 365/13.4
= 27.2 days
2. Average days in inventory = Average Inventory/Cost of goods sold * 365
= $1,615,000/$9,851,500 * 365
= 59.8 days
3. Current Ratio = Current Assets/Current Liabilities
= $3,850,000/$2,010,000
= 1.9 to 1
4. Debt to Equity Ratio = Total Debts/Equity
= $4,320,000/$4,340,000 * 100
= 99.5%
Explanation:
a) Data and Calculations:
ADRIAN EXPRESS
Income Statement for the year ended December 31, 2021:
Sales = $16,281,000
Cost of goods sold = $9,851,500
Net Income = $1,610,000
ADRIAN EXPRESS
Balance Sheets December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $ 610,000 $ 770,000
Accounts receivable 1,420,000 1,010,000
Inventory 1,820,000 1,410,000
Long-term assets 4,810,000 4,250,000
Total assets $ 8,660,000 $ 7,440,000
Liabilities and Stockholders' Equity
Current liabilities $ 2,010,000 $ 1,670,000
Long-term liabilities 2,310,000 2,410,000
Common stock 1,990,000 1,990,000
Retained earnings 2,350,000 1,370,000
Total liabilities and stockholders' equity $ 8,660,000 $ 7,440,000
Industry averages for the following four risk ratios are as follows:
Average collection period 25 days
Average days in inventory 60 days
Current ratio 2 to 1
Debt to equity ratio 50%
Average accounts receivable = ($1,420,000 + 1,010,000)/2 = $1,215,000
Average Receivable Turnover Ratio = Net Sales/Average Receivable
= $16,281,000/$1,215,000 = 13.4
Average Collection Period = 365/Average Receivable Turnover Ratio
= 365/13.4
= 27.2 days
Average Inventory = ($1,820,000 + 1,410,000)/2 = $1,615,000
Average days in inventory = Average Inventory/Cost of goods sold * 365
= $1,615,000/$9,851,500 * 365
= 59.8 days
Current Assets = Total assets - Long-term assets
= $8,660,000 - $4,810,000
= $3,850,000
Current Ratio = Current Assets/Current Liabilities
= $3,850,000/$2,010,000
= 1.9 to 1
Total debts = current liabilities + long-term liabilities
= $2,010,000 + $2,310 = $4,320,000
Total Equity = Common Stock + Retained Earnings
= $1,990,000 + $2,350,000 = $4,340,000
Debt to Equity Ratio = Total Debts/Equity
= $4,320,000/$4,340,000 * 100
= 99.5%
Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are
Cash $35,000
Accounts Receivable 5,000
Inventory 40,000
Supplies 5,000
Notes Receivable (due in three years) 2,000
Equipment 80,000
Buildings 120,000
Land 30,000
Accounts Payable 37,000
Notes Payable (due in three years) 80,000
Common Stock 150,000
Retained Earnings 50,000
During the year, the company had the following summarized activities:
a. Purchased equipment that cost $21,000; paid $5,000 cash and signed a two-year note for the balance.
b. Issued an additional 2,000 shares of common stock for $20,000 cash.
c. Borrowed $50,000 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $4,000 cash.
e. Built an addition to the factory buildings for $41,000; paid $12,000 in cash and signed a three-year note for the balance.
f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
Required:
Analyze transactions to determine their effects on the accounting equation.
Answer:
Performance Plastics Company (PPC)
Analysis of Transactions to determine their effects on the Accounting Equation:
Assets = Liabilities + Equity
a. Assets (Equipment +$21,000 Cash -$5,000) = Liabilities (Notes Payable +$16,000) + Equity
b. Assets (Cash +$20,000) = Liabilities + Equity (Common Stock +$20,000)
c. Assets (Cash +$50,000) = Liabilities (Bank Loan +$50,000) + Equity
d. Assets (Supplies +$4,000 Cash -$4,000) = Liabilities + Equity
e. Assets (Factory Building +41,000 Cash -$12,000) = Liabilities (Notes Payable +$29,000) + Equity
f. N/A
Explanation:
a) Data and Calculations:
Cash $35,000
Accounts Receivable 5,000
Inventory 40,000
Supplies 5,000
Notes Receivable
(due in three years) 2,000
Equipment 80,000
Buildings 120,000
Land 30,000
Total assets $317,000
Accounts Payable 37,000
Notes Payable
(due in three years) 80,000
Common Stock 150,000
Retained Earnings 50,000
Total liabilities +
equity $317,000
b)The accounting equation is an important accounting concept that describes the double-entry basis of accounting. It shows that at every given time and after every business transaction, the assets are always equal to the liabilities and the equity balance. This implies that the assets are funded from the contributions of creditors and owners.
Heinz Company began operations on January 1, 2017, and uses the first in, first out (FIFO) method in costing its raw material inventory. Management is contemplating a change to the last in, first out (LIFO) method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory 2017 2018 FIFO $640,000 $ 712,000 LIFO $560,000 $636,000 Net Income (computed under the FIFO method) $980,000 $1,030,000 Based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of ________. Group of answer choices $1,070,000 $1,030,000 $954,000 $950,000
Answer:
C. $954,000
Explanation:
Final inventory FIFO LIFO Difference
2017 640,000 560,000 80,000
2018 712,000 636,000 76,000
Note: When method is changed to LIFO in 2018, it will effect ending inventory of 2018 only.
Net income as per FIFO $1,030,000
Decrease in income due to decrease -$76,000
in the ending inventory as per LIFO
Net income as per LIFO $954,000
So, a change to the LIFO method in 2018 would result in net income for 2018 of $954,000
The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is:________
a. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000
c. debit Rent Expense, $24,000; credit Prepaid Rent, $8,000
d. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000
Answer:
the answer is b bro
Explanation:
have a wonderful day bro
