Answer:
c-1. ROE under Recession = 8.34%; ROE under Normal = 10.82%; and ROE under Expansion = 12.71%.
c-2. % change in ROE under Recession = -22.91%; and % change in ROE under Expansion = 17.46%.
c-3. ROE under Recession = 10.82%; ROE under Normal = 14.67%; and ROE under Expansion = 17.51%.
c-4. % change in ROE under Recession = -26.23%; and % change in ROE under Expansion = 19.41%
Explanation:
c-1. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Note: See part 1 of the attached excel file for the calculations of Net Income, Shareholders' Equity, and return on equity (ROE) under each of the three economic scenarios before any debt is issued.
In the attached excel file, return on equity (ROE) is calculated using the following formula:
ROE = (Net income / Shareholders' Equity) * 100
After applying the ROE formula, the following are then obtained:
ROE under Recession = 8.34%
ROE under Normal = 10.82%
ROE under Expansion = 12.71%
c-2. Calculate the percentage changes in ROE when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.)
Note: See part 1 of the attached excel file for the calculations of the percentage changes in ROE when the economy expands or enters a recession.
In the attached excel file, percentage changes in ROE is calculated as follows:
Percentage change in ROE = (ROE under recession/expansion - ROE under Normal) / ROE under Normal
After applying the Percentage change in ROE formula, the following are then obtained:
% change in ROE under Recession = -22.91%
% change in ROE under Expansion = 17.46%
c-3. Calculate the return on equity (ROE) under each of the three economic scenarios assuming the firm goes through with the recapitalization. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Note: See part 2 of the attached excel file for the calculations of Net Income, Shareholders' Equity, and return on equity (ROE) under each of the three economic scenarios assuming the firm goes through with the recapitalization.
In the attached excel file, return on equity (ROE) is calculated using the following formula:
ROE = (Net income / Shareholders' Equity) * 100
After applying the ROE formula, the following are then obtained:
ROE under Recession = 10.82%
ROE under Normal = 14.67%
ROE under Expansion = 17.51%
c-4. Given the recapitalization, calculate the percentage changes in ROE when the economy expands or enters a recession.(A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Note: See part 2 of the attached excel file for the calculations of the percentage changes in ROE when the economy expands or enters a recession.
In the attached excel file, percentage changes in ROE is calculated as follows:
Percentage change in ROE = (ROE under recession/expansion - ROE under Normal) / ROE under Normal
After applying the Percentage change in ROE formula, the following are then obtained:
% change in ROE under Recession = -26.23%
% change in ROE under Expansion = 19.41%
Babe Ruth was a famous baseball player in the 1920s. He made a salary of $80,000 in 1930, which was considered outrageous because it was more than President Hoover made ("I had a better year than he did" was Ruth's supposed response). Nowadays, baseball players make much more than $80,000; the average major league salary in 2017 is $4.47 million per year, and the highest salary is $33 million for Clayton Kershaw. Some of the difference in salaries between Babe Ruth and today's players is due to inflation, and some of it is due to the fact that major league players make more in real terms today, because the market for baseball has grown over times and because players have gotten a higher share of the baseball pie over time because they have a powerful union How much of the difference is due to inflation? What is Babe Ruth's 1930 salary in today's dollars? You can use the same "index method" formula that we used to convert nominal GDP to real GDP in class. There are various websites that show the Consumer Price Index for various years.
Answer:
In real dollars, Babe Ruth's salary = $80,000 / 0.0645 (CPI 1930) = $1,240,000
Since Babe Ruth was the highest paid baseball player back then, if we compare his updated salary to Kershaw's salary, it represents only = $1,240,000 / $33,000,000 = 3.76%.
That means that most of the players' salary raise was due to other factors, not just inflation.
A corporate culture is generally defined as the
Answer:
inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.
Explanation:
A corporate culture is the shared values, beliefs, attitudes, and behaviors that exist within a company or organization.
Corporate culture is shaped by various factors, including the company's mission, vision, and core values, as well as its history, leadership style, and the behaviors exhibited by top management. It can also be influenced by the industry in which the organization operates, geographical location, and the composition of its workforce.
A positive corporate culture promotes teamwork, innovation, open communication, and a healthy work-life balance. On the other hand, a negative or toxic culture can lead to low morale, high turnover, and hinder the organization's overall success.
In conclusion, a corporate culture is the collective values, beliefs, attitudes, and behaviors that define an organization's identity and shape the working environment. It has a significant impact on employee engagement, productivity, and the overall success of the company.
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On December 31, 2010, Beckford Company issues 150,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2011; $1 on December 31, 2012; $10 on December 31, 2013; and $9 on December 31, 2014. The service period is 4 years, and the exercise period is 7 years.Instructions:(a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.(b) Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014.(c) Prepare the entry on December 31, 2014, assuming that all 150,000 SARs are exercised.
Answer:
Beckford Company
a) A schedule of Compensation Expense for each year:
Stock-Appreciation Rights (SARs):
Date Due SARs Fair Value Compensation Annual %
of SARs Recognizable Expenses
December 31, 2011 150,000 $4 $600,000 $150,000 (25%)
December 31, 2012 150,000 $1 150,000 37,500 (25%)
December 31, 2013 150,000 $10 $1,500,000 375,000 (25%)
December 31, 2014 150,000 $9 $1,350,000 337,500 (25%)
Total SARs Compensation Expense for the 4 years = $900,000
b) Journal Entry at December 31, 2014 to record compensation expense:
Debit Compensation Expense (SARs) $337,500
Credit SARs Liability $337,500
To record the compensation expense for 2014.
c) Debit Compensation Expense (SARs) $900,000
Credit SARs Liability $900,000
To record the compensation expense for the four years.
Explanation:
a) Data and Calculations:
Stock-appreciation rights = 150,000
Period of exercise = 4 years
Portion exercisable each year = 37,500 (150,000/4)
Pre-established price of SARs = $10
Fair values of the SARs are:
December 31, 2011 = $4
December 31, 2012 = $1
December 31, 2013 = $10
December 31, 2014 = $9
b) Stock Appreciation Rights (SARs), like stock options, compensate Beckford employees during a predetermined period of four years with the difference between the stock's market price and a predetermined price of $10. Since the SARs are exercisable over four years, the compensation expense is based on the portion of the stock that is exercisable each year (which is 150,000 divided by 4). It differs from stock options because employees are entitled to a cash payment or stock issuance at the end of the period, whereas employees pay for stock options when they exercise them.
criminal charges are prosecuted by the party that was wronged true or falsebusiness
Assume Bank XYZ has 3 assets and 4 liabilities, with the following information: Assets Liabilities yield dollar value cost dollar value 5% 1,000 0% 3,000 10% 4,000 2% 1,000 20% 2,000 4% 1,000 6% 1,000 We also know the noninterest income is 1,000, the noninterest expense 1,200, the provision for loan losses 50, the realized securities gains and losses 40, and the tax 20. What is the net income of Bank XYZ
Answer:
The answer is "$500".
Explanation:
Calculating the total Interest Income:
[tex]= \$( 5\% \times 1000+10\% \times 4000+20\% \times 2000)\\\\= \$( \frac{5}{100} \times 1000+ \frac{10}{100} \times 4000+ \frac{20}{100} \times 2000)\\\\=\$ (50+400+400) \\\\ =\$ 850[/tex]
Profits of non-interest=$1000
Earnings and losses for shares = $40
For point 1:
The formula for Total Revenue: [tex]= \text{Total Interest Income}+ \text{Non Interest Income} + \text{Realized Securities gains and losses} \\[/tex]
[tex]= \$(850+1000+40) \\\\ = \$ 1890[/tex]
For point 2:
The formula for total Expenditure: [tex]\text{(Interest Expense+Non interest expense+Provision for losses+Taxes)}[/tex]
[tex]\text{Interest expense}= \$( 2 \% \times 1000+4\% \times 1000+6\% \times 1000)[/tex]
[tex]= \$( \frac{2}{100} \times 1000+ \frac{4}{100} \times 1000+ \frac{6}{100} \times 1000) \\\\= \$ (20+40+60)\\\\ =\$ 120[/tex]
Expenditure for non-interest=$1200
Loan and damage provisions = $50
Tax = $20
Complete Expenditures[tex]= \$(120+1200+50+20) = \$ 1390[/tex]
Therefore,[tex]\text{net sales = (Total Revenue-Total Expenditure)}[/tex]
[tex]=\$(1890-1390) \\\\ = \$ 500[/tex]
The Mixing Department of Premium Foods had 50,000 equivalent units of materials for October. Of the 50,000 units, 25,000 units were completed and transferred to the next department, and 25,000 units were 35% complete. Premium Foods's costs per equivalent unit of production are $0.96 for direct materials and $0.70 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method.Calculate the cost of the 25,000 units completed and transferred out and the 25,000 units, 35% complete, in the ending Work-in-Process Inventory.
Answer:
Explanation:
The computation of the cost of 25,000 units completed and transferred out is shown below;
( in $)
Costs Direct materials Conversion costs Total costs
Cost accounted for
completed
and transferred
out 24,000 17,500 41,500
(25,000 × $0.96) (25,000 × $0.70)
Ending
work in
process 24,000 6,125 30,125
(25,000 × $0.96) (25,000 × $0.96 × 35%)
Total cost
accounted for 48,000 23,625 71,625
Karen, Inc. manufactures a product that uses $15 in direct materials and $5 in direct labor per unit. Under the traditional costing system Karen uses, manufacturing overhead applied to each unit is $12. However, Karen is considering switching to an ABC system. Under the ABC system, the total activity cost would be $25. What is the total manufacturing cost per unit for Karen under the ABC system
Answer:
oie no sepo ingles:"(
Explanation:
perdonwnmeeeeeeeeeeeeeeeeeee
Swinnerton Clothing Company's balance sheet showed total current assets of $3,300, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors? Select the correct answer. a. $2,573 b. $2,570 c. $2,580 d. $2,577 e. $2,566
Answer:
c. $2,580
Explanation:
Calculation for What was its net operating working capital that was financed by investors
Current assets $3,300
Less Accounts payable ($575)
Less Accrued wages and taxes ($145)
Net operating working capital $2,580
($3,300-$575-$145)
Therefore What was its net operating working capital that was financed by investors will be $2,580
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.
Sales Mix
Unit Contribution
Margin
Lawnmowers 20 % $30
Weed-trimmers 50 % $20
Chainsaws 30 % $40
Yard Tools has fixed costs of $4,200,000.
Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)
Lawnmowers
units
Weed-trimmers
units
Chainsaws
units
Answer:
Lawnmowers= 30,000
Weed-trimmers= 75,000
Chainsaws= 45,000
Explanation:
First, we need to calculate the weighted average contribution margin:
Weighted average contribution margin= sales proportion*unitary contribution margin
Weighted average contribution margin= (0.2*30) + (0.5*20) + (0.3*40)
Weighted average contribution margin= $28
Now, the break-even point in units for the whole company:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 4,200,000 / 28
Break-even point (units)= 150,000
Finally, the number of units to be sold for each product:
Lawnmowers= 0.20*150,000= 30,000
Weed-trimmers= 0.5*150,000= 75,000
Chainsaws= 0.3*150,000= 45,000
Would you rather be able to change the size of your body, or be able to change your age?
ABC, a U.S. company sends by fax an offer to sell to XYZ, a French company, 1,000,000 widgets for $1.00 a widget. XYZ sends back a counter offer of $.75 a widget. ABC rejects the counter offer and sells the widgets to GHK Inc. instead. XYZ then sends an acceptance of the original offer of $1.00. ABC has a contract with XYZ and must give them the 1,000,000 widgets for $1.00 a wideget because they accepted the offer.
A. True
B. False
Answer:
The correct option is B. False.
Further explanation is given below in the explanation section.
Explanation:
Offer From ABC Company to XYZ Company:
1,000,000 widgets to sell.
Selling Price of 1 widget = $1.00
Total Price = $1,000,000
Counter Offer from XYZ company to ABC Company.
Selling Price = $0.75
Total Price = 0.75 x 1,000,000 = $750,000
But in the end, ABC company sold its widgets to GHK company.
The correct option to this question is false.
This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.
XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.
Children are likely to carry on the economic tildes of there parents in a __?
A:mixed economy
B:command economy
C:traditional economy
D: market economy
Jack Hammer invests in a stock that will pay dividends of $3.17 at the end of the first year; $3.64 at the end of the second year; and $4.11 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $67. What is the present value of all future benefits if a discount rate of 10 percent is applied
Answer:
Total PV= $59.31
Explanation:
Giving the following information:
Cash flows:
Cf1= $3.17
Cf2= $3.64
Cf3= 4.11 + 67= $71.11
Discount rate= 10%
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf / (1+i)^n
PV1= 3.17/1.1= 2.88
PV2=3.64/1.1^2= 3
PV3= 71.11/1.1^3= 53.43
Total PV= $59.31
What is the difference between Absolute Advantage and Compartive Advantage?
Answer: See explanation
Explanation:
Absolute advantage simply means when an economic entity such as individuals or the firms can produce a particular good more efficiently than others who produce similar good. In this case, a larger quantity is produced when compared to others.
Comparative advantage is when an economic agent can actually produce goods at an opportunity cost that's lower than the opportunity cost of its competitors. Due to this, such economic agent can sell its good at a cheaper price than others and therefore make more revenue.
Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of $70,000, is worth $160,000.
a. Cardinal Corporation will have a basis of $160,000 in the land transferred by Carl.
b. Carl will have a recognized gain on the transfer of $30,000
c. Carl will have a recognized gain on the transfer of $90,000.
d. Cardinal Corporation will have a basis of $70,000 in the land transferred by Carl.
e. None of these choices are correct.
Answer:
e. None of these choices are correct.
Explanation:
Carl's gain = value of the note received + value of the mortgage - land's basis = $40,000 + $100,000 - $70,000 = $70,000
Snice the mortgage is higher than the basis ($100,000 higher than $70,000), this must be recognized as a Section 357 gain. The note receivable must also be recognized as gain since it doesn't qualify for Section 351.
Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 4.5% per year compounded yearly.
End of Year Series 1 Series 2
0 $300 $0
1 $350 $0
2 $400 $35X
3 $450 $25X
4 $0 $15X
5 $0 $5X
Answer:
14.90
Explanation:
The computation of the value of X is shown below;
End of Year Series 1 Series 2 series 1 series 2
0 $300 $0 1 $300 $0
1 $350 $0 1.045 $366 $0
2 $400 $35X 1.092025 $437 38.15X
3 $450 $25X 1.141166 $514 35.25X
4 $0 $15X 1.192519 $0 28.8X
5 $0 $5X 1.246182 $0 6.2X
$1,616 108.4X
Now
108.4X = $1,616
x = $1,616 ÷ 108.4
= 14.90
If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
Answer:
An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
If supply increases while all other factors remain constant, the equilibrium price will fall. The quantity demanded will rise. A decrease in supply raises the equilibrium price while decreasing the quantity demanded.
What is supply?Supply is a fundamental economic concept that describes the total amount of a specific good or service that consumers have access to.
If displayed on a graph, supply can refer to the amount available at a specific price or the amount available across a range of prices. Changes in the supply curve shift the equilibrium price and quantity. If supply grows, equilibrium price falls and quantity grows.
Therefore, an increase in the supply will cause a reduction in equilibrium price and an increase in the quantity of a good.
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Solivan Corp. incurred the following costs during the current year:
Construction of preproduction prototypes $180,000
Testing in search of process alternatives 110,000
Design of tools, jigs, molds, and dies involving new technology 115,000
Engineering follow-through in an early phase of commercial production 80,000
Seasonal or other periodic changes to existing products 105,000
In its income statement, Solivan should report research and development expense of:________
a. $295,000
b. $370,000
c. $405,000
d. $375,000
Answer:
c. $405,000
Explanation:
Calculation of R$D Expenses to be report in Income statement
Construction of pre-production prototypes $180,000
Testing in search of process alternatives $110,000
Design of tools, jigs, molds, and dies $115,000
involving new technology
Total R&D Expenses $405,000
Note: Engineering follow-through in an early phase of commercial production & Seasonal or other periodic changes to existing products are excluded from calculation of Research and Development Expenses.
A commercial cleaning company spends an average of $500 per year, per customer, in supplies, wages, and account maintenance. An average customer generates $1,000 in revenue per year. Assuming a discount rate of 12% and an annual retention rate of 80%, what is the best estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation presented in the core reading?
Answer:
$1,250
Explanation:
Calculation for what is the best estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation
Using this formula
Customer lifetime value (CLV) = r / (1 + i - r)
Let plug in the formula for
Customer lifetime value (CLV) = 0.8 / (1 + 0.12 - 0.8)
Customer lifetime value (CLV) = 2.5
Customer lifetime value (CLV) =($1,000-$5,00)× 2.5
Customer lifetime value (CLV) = $500 x 2.5
Customer lifetime value (CLV) = $1,250
Therefore the best estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation will be $1,250
Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Packaging Department, which prepares items for sale in kits or individually. The following information is available for the Molding department for January.
Work in process beginning:
Units in process 24,100
Stage of completion for materials 80%
Stage of completion for labor and overhead 30%
Costs in work in process inventory:
Materials $168,470
Labor 68,020
Overhead 17,160
Total costs in beginning work in process $253,650
Units started into production in January 59,800
Units completed and transferred in January 58,300
Costs added to production: Materials $281,593
Labor 311,150
Overhead 60,120
Total costs added into production in January $652,863
Work in process ending:
Units in process 25,600
Stage of completion for materials 50%
Stage of completion for labor and overhead 10%
Required:
Prepare a production cost report for Waterways using the weighted-average method.
Answer:
Waterways
Molding Department
Production Cost Report
Total costs of production:
Units Materials Conversion Total
Costs in work in process inventory: $168,470 $85,180 $253,650
Units started in January $281,593 371,270 $652,863
Total costs of production $450,063 $456,450 $906,513
Equivalent units of production:
Units Materials Conversion
Units completed & transferred 58,300 58,300 58,300
Work in process ending: 25,600 12,800 2,560
(25,600*50%) (25,600*10%)
Total equivalent units 71,100 60,860
Cost per equivalent unit:
Materials Conversion
Total costs of production $450,063 $456,450
Total equivalent units 71,100 60,860
Cost per equivalent unit $6.33 $7.50
Costs Assigned to units:
Materials Conversion Total
Cost per equivalent unit $6.33 $7.50
Units started and completed (58,300) $369,039 $437,250 $806,289
Work in Process, ending 12,800/2,560 81,024 19,200 100,224
Total costs assigned $450,063 $456,450 $906,513
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Work in process beginning: 24,100 80% 30%
Costs in work in process inventory: $168,470 $85,180 $253,650
Labor 68,020
Overhead 17,160
Units started in January 59,800 $281,593 371,270 $652,863
Units transferred 58,300
Labor 311,150
Overhead 60,120
Work in process ending: 25,600 50% 10%
Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following except:____.
a. her parents' anger if she skips the family trip to Aspen.
b. her contribution to gas money for the drive to Destin.
c. the hotel costs she will split with her friends in Destin.
d. the ski lift ticket her parents have already purchased for her.
Answer:
D.
Explanation:
The opportunity cost is the cost or the costs that she would be incurring for foregoing the trip to aspen colorado with her family members. Options A, b and c are all opportunity costs of not going on this trip.
Therefore the answer is option d.
if china has china business is china china or just china
who will wim trump or bid en³³³³³³³³³³³³³³³³³³³³³³³³∉∉∉∉∉∉∉∉∉∉∉
Answer:bid
Explanation:
Answer:
biden is a china puppet aka he is being controlled by china
Explanation:
- Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable
bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and
erat September 1. The fiscal year of the company is the calendar year. Journalize the entries
to record the following selected transactions:
20Y1
Mar. 1. Issued the bonds for cash at their face amount.
Sept. 1. Paid the interest on the bonds.
2045
Sept. 1. Called the bond issue at 102, the rate provided in the bond indenture.
(Omit entry for payment of interest.)
Answer:Please see answer in explanation column
Explanation:
The Journal entry is shown below:-
1. To record the issue of bonds payable
Date Account titles and explanation Debit Credit
March 1 20Y1 Cash $22,000,000
To Bonds payable $22,000,000
2.To record Interest on the bonds paid
Date Account titles and explanation Debit Credit
Sept 1 20Y1 Interest expense $770,000
Cash $770,000
Calculation:
Interest = face value of bonds x interest rate x time
=$22,000,000 x 7% x 6/12
=$770,000
3. To record bonds on retirement is recorded
Date Account titles and explanation Debit Credit
Sept 1 2045 Bonds payable $22,000,000
Loss on retirement of bonds $440,000
To Cash $22,440,000
Calculation:
Cash = $22,000,000 × 102/ 100) = 22,440,000
Loss on retirement of bonds = $22,440,000 - $22,000,000 = $440,000
According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.
According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.
The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.
This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.
There would be more willingness to work and the firms would have more people to hire.
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According to economists, all humans have their own "rational self-interest." What does this mean?
A.) They want to help others rather than help themselves.
B.) They will only make rational and logical decisions about purchases.
C.) They want to benefit themselves as much as possible.
D.) They will only make a purchase if it is involving their top three interests.
They want to benefit themselves as much as possible.
Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department.
Answer:
Note: The full question is attached below
Date Accounts Title and Explanation Debit Credit
Mar-31 WIP-Fermenting Department $15,971
Raw Material Inventory $9,288
Wages payable $3,305
Manufacturing Overhead $3,378
(Being cost assigned to WIP-Fermenting department)
The board of directors of Milligan Company has decided to dispose of an unneeded parcel of land through a property dividen to their shareholders. Invidivdual homesites have been identified on the land, and those individual sites will be deeded to the shareholders in proportion to their stock holdings. On december 31, 2013, the board of directors declares the property dividend. The land is to be officially deeded to the shareholders as of January 15, 2014 (i.e., pay date).
The board estimates the land to be worth approximately $200,000 on December 31, 2013. The book value of the land prior to the declaration is $175,000. On January 5, 2014, however, the city of Green Valley announces that the adjoining land will become the home of new recreational area, which will cause the value of the Milligan land to increase in value by an additional $100,000.
Required:
Prepare below journal entries to record the declaration of the property dividend on December 31, 2013 and the payment of the dividend on January 15, 2014.
Solution :
The declaration date of the dividends of Milligan Company is Dec,31 2013 on which the loss or the profit on the property will be booked. The book value in this case is $ 175,000 while the FMV is 200,000 dollars. Therefore the gain or the profit is = 200,000 - 150,000 = $ 500,00.
Therefore to gain a profit on the land appreciation of $500,00.
Declaring the dividends on Dec 31, 2013 from the retained earnings, that is the value of FMV of the land is given as :
The earnings retained = 200,000
To the dividends payable = 200,000
On the dividend payment date, Jan 5 2014
Dividends payable at = $200,000
To the land = 200,000
So the FMV or the value of the land is not relevant after Dec 31.
Aimi Corporation, based in Japan, decides to open a big manufacturing and distribution center in China. It does this by acquiring operating facilities from another company in China. The management at Aimi believes that adopting this approach will provide the company with instant access to new markets. In this context, the HR function at Aimi Corporation will:a.need to extend and expand its scope and operations to provide the appropriate contributions to firm performance.b.need to be extended to include employees of the Chinese company involved in the acquisition.c.need to be extended to include another set of employees but will not change in any other meaningful way.d.become complicated because of the disparate relationship between the staff in Aimi's home-country and the staff of the acquired company.
Answer: a. need to extend and expand its scope and operations to provide the appropriate contributions to firm performance.
Explanation:
The HR function will need to take into account the acquisition of these ew operating facilities and the fact that it will come with new employees and new ways to relate to those employees as they are from another country as the one that Aimi is based in.
The HR function will therefore have to extend and expand its scope and operations to incorporate this new situation and provide the appropriate contribution to the company from it.
Suppose that Portugal and Austria both produce beer and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 barrels of beer while Austria's opportunity cost of producing a pound of cheese is 11 barrels of beer.
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 beer.
Suppose that Portugal and Austria consider trading cheese and beer with each other. Portugal can gain from specialization and trade as long as it receives more than_______of beer for each pound of cheese it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______ of cheese for each barrel of beer 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 beer) would allow both Austria and Portugal to gain from trade?
A. 4 barrels of beer per pound of cheese
B. 6 barrels of beer per pound of cheese
C. 13 barrels of beer per pound of cheese
D. 2 barrels of beer per pound of cheese
Answer:
Portugal and Austria
Comparative Advantage in the Production of Beer and Cheese:
1a. Portugal
b. Austria
2. a. 3 barrels and
b. 0.09 or 1/11 pounds
3. A. 4 barrels of beer per pound of cheese
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of beer
Austria's opportunity cost of producing a pound of cheese = 11 barrels of beer
Price of trade (cheese in terms of beer) = 11/3 = 3.667 = 4
b) Portugal's comparative advantage over the production of cheese is her economy's ability to produce cheese at a lower opportunity cost than Austria. This comparative advantage gives Portugal the ability to sell cheese at a lower price than Austria and realize a more favorable balance of trade.
If the return on capital is 12% and the price for loanable funds is 14%, then:____.
a. currently businesses will not borrow loanable funds to invest in capital goods.
b. the return on capital will fall as the supply of capital decreases over time, and simultaneously, the price for loanable funds will increase as savers make even more savings available.
c. eventually the return on capital will decrease to the point where businesses will find it profitable to borrow loanable funds
Answer:
If the return on capital is 12% and the price for loanable funds is 14%, then:____.
a. currently businesses will not borrow loanable funds to invest in capital goods.
Explanation:
This simply means that the costs of borrowing exceed the returns. This makes borrowing and investment unattractive to businesses. The resulting effect on the economy will be disastrous. Many economic variables will be affected negatively, especially output and employment. At such times, the central bank needs to intervene with monetary policies to move the economy out of recession.
