Answer:
i. buy put option
ii. Proceeds will be as follows:
$50 : 2,000,000
$60 : 2,400,000
$70 : 2,800,000
$80 : 3,200,000
Explanation:
i. A put is option is one in which buyer of the option has a right to sell the asset at an agreed price at a later date. There can be a premium on the purchase of an option but its safe to buy an option to reduce risk exposure.
ii. $50 : 2,000,000 (40,000 barrels * $50)
$60 : 2,400,000 (40,000 barrels * $60)
$70 : 2,800,000 (40,000 barrels * $70)
$80 : 3,200,000 (40,000 barrels * $80)
Arizona Crystal is a distributor of feldspar, amethyst and other mystically powerful types of crystals. The owner of Arizona Crystal, Geri Moonbeam, is proud to be a part of the movement that is contributing to the higher spirituality of the world. Geri buys crystals from local collectors and then ships them out to wholesalers throughout the country. Geri pays cash for the crystals, but she extends credit to the wholesalers. As the business has grown, problems have arisen. When Geri buys more crystals than she can sell, inventory increases and cash flow problems arise. When Geri doesn’t buy enough crystals, then she can’t fill orders and that creates problems with her customers. She needs to base her buying decisions on accurate forecasts of the demand for crystals so she can avoid these problems. After consulting her tarot cards, Geri visits a friend from El Paso, Texas, who channels for a Wall Street tycoon who didn’t survive the crash of 1929. He recommends that, since she only has twelve months of data, she should try using a moving average or exponential smoothing forecasting model. So Geri contacts you. She provides you with data on the number of crystals (in thousands) ordered during each of the past twelve months and asks you to help her develop a forecasting model. 8. Use a five period moving average model to forecast the demand in January of 1993. Also calculate the RMSE for this model. Use the table below to carry out your calculations. How does this model compare with the three period model? Month Demand (A) Demand (F) (A-F)2 Jan-92 25.6 Feb-92 24.7 Mar-92 21.3 Apr-92 13.9 May-92 12.6 Jun-92 18.0 Jul-92 21.5 Aug-92 22.3 Sep-92 30.7 Oct-92 15.0 Nov-92 13.8 Dec-92 22.6
Answer:
Explanation:
Month Demand (A) Demand (F) (A-F)²
Jan-92 25.6 - 0
Feb-92 24.7 - 0
Mar-92 21.3 - 0
Apr-92 13.9 - 0
May-92 12.6 19.62 49.28
Jun-92 18.0 18.1 0.01
Jul-92 21.5 17.46 16.32
Aug-92 22.3 17.66 21.53
Sep-92 30.7 21.02 93.7
Oct-92 15.0 21.5 42.25
Nov-92 13.8 20.66 47.06
Dec-92 22.6 20.88 29.58
The demand for january of 1993 is 20.88
RMSE² = 49.28+0.01+16.32+21.53+93.7+42.25+47.06+29.58
=299.73
[tex]=\frac{299.73}{12} \\\\= 24.98[/tex]
RMSE = √24.98
=4.99
The model has higher values of demand and RMSE than that of three month moving average model
During the year, Lillie rented her vacation home for three months and spend one month there. Gross rental income from the property was $5,000. Lillie incurred the following expenses: mortgage interest, $3,000; real estate taxes $1,500; utilities, $800; and depreciation, $4,000. Compute Lillie's allowable deductions for the vacation home.
Answer:
$8,100
Explanation:
The home was rented for more than 14 days, you must pay taxes for the rental income
Since Lille used the house for more than 15 days herself, limits her deduction. The home cannot be treated as rental home nor personal use vacation home.
total days used = (30 x 3) + 30 = 120 days
rental days = 90/120 = 75% (this doesn't apply to mortgage interest nor real estate taxes, they are still 100% deductible)
mortgage interest and real estate taxes still qualify as personal expenses = $3,000 + $1,500 = $4,500
utilities and depreciation will be deducted only 75% = ($800 + $4,000) x 75% = $3,600
total deductions = $4,500 + $3,600 = $8,100
A furniture factory's employees work overtime in February to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime salaries should be expensed in:______
a) the period when the workers receive their cheques
b) either in February or March depending on when the pay period ends
c) February.
d) March.
Answer: February
Explanation:
Overtime is the amount of time that a person works beyond the normal working hours. From the question, we realise that a furniture factory's workers work overtime in February in order to finish an order that was sold on February 28.
Based on this scenario, the overtime wages should be expensed in February. This is because expenses are recognised when incurred while incomes are recognised when earned. Since the expenses are incurred in February, the overtime salaries should be expensed in February.
The common stock of Sweet Treats is selling for $45.65 per share. The company is expected to have an annual dividend increase of 2.6 percent indefinitely and pay a dividend of $3.30 in one year. What is the total return on this stock
Answer:
9.83%
Explanation:
The computation of the total return on the stock is shown below:
As we know that
Share price = Next year dividend ÷ (Required rate of return - growth rate)
$45.65 = $3.30 ÷ (Required rate of return - 2.6%)
Let us assume the required rate of return be X
So,
$45.65 × X - 1.1869 = $3.30
$45.65 × X = $3.30 + $1.1869
So, the X is 9.83%
Hence, the total return on the stock is 9.83%
Lehi City has designated an internal service fund as the single fund to account for its self-insurance activities. Most of the insured activities such as the police department, fire department, and general government functions are accounted for in the General Fund. What is the maximum amount that can be charged to expenditure in the General Fund related to the self-insurance activities
Answer: c)The actuarially determined amount necessary to cover claims, expenditures, and catastrophic losses.
Explanation:
The Expenditure on the account related to self - insurance activities refers to the amounts that will be deducted from the fund for anything insurance related.
The insurance is meant to cover the claims and unlikely events of catastrophies. Therefore when those things do occur it will be deducted from the service fund to cover those things.
Those along with expenses incurred to maintain the fund will be considered expenses and that is the maximum amounts that can be deducted from the fund.
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 297 pressure gauges were produced, and overhead costs of $88,560 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $38,850
2. Machine setups Number of setups 26,190
3. Quality inspections Number of inspections 23,520
$88,560
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Assign the manufacturing overhead costs for April to the two products using activity-based costing.
Instruments Gauges
Total cost assigned $ $
Overhead cost per Unit $ $
Answer and Explanation:
1. The computation of overhead rate for each activity is shown below:-
Overhead rate for each activity Overhead Rate
Materials handling 37
($38,850 ÷ 1,050)
Machine setups 54
($26,190 ÷ 485)
Quality inspections 48
(23,520 ÷ 490)
2. The computation of assignment of manufacturing overhead costs for April to the two products using activity-based costing is shown below:-
Assignment of Instruments Gauges
manufacturing
overhead costs
Materials handling $37 × 420 $15,540 $37 × 63 $23,310
Machine setups $54 × 225 $12,150 $54 × 260 $14,040
Quality inspections $48 × 265 $12,720 $48 × 225 $10,800
Total cost assigned $40,410 $48,150
Overhead cost
per Unit $40,410 ÷ 49 $824.69 $48,150 ÷ 297 $162.12
Therefore we have applied the above formula.
A country produces melons and wheat. 1.) Using the 3-point curved line drawing tool, draw a representative PPC for this country. Label it 'PPC'. 2.) Using the point drawing tool, show a production point that is efficient. Label it 'A'. 3.) Using the point drawing tool, show a production point that is attainable but not efficient. Label it 'BE'. Carefully follow the instructions above, and only draw the required objects.
Answer:
1.) Using the 3-point curved line drawing tool, draw a representative PPC for this country. Label it 'PPC'.
I have attached a picture below. It shows a simple possibilities frontier for a country that can produce up to 16 units of melons and wheat.
2.) Using the point drawing tool, show a production point that is efficient. Label it 'A'
Producition points that are efficient are any points on the curve. Producing 16 melons and 0 wheat is efficient because all economic resources are being used to produce the maximum amount of a good that is possible. Producing 8 melons, and 8 units of wheat is also efficient for the same reason.
3.) Using the point drawing tool, show a production point that is attainable but not efficient.
Any point inside the curve would be inefficient because resouces would be used to produce less than the maximum amount possible. For example, if 15 units of wheat are produced, but less than one unit of melon is produced, then, there is inefficiency, because 1 unit of melon should be produced in that case.
Why is research ethics important?
Answer:
Research ethics are important for the following reasons:
1.They promote the aims of research, such as expanding knowledge.
2.They support the values required for collaborative work
3. They support important social and moral values,
A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX). 0.1613
Answer:
What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is 0.1613.
Explanation:
The nominal cost of its non-free trade credit = the discounts lost for paying late.
In this case, the seller offers a 3% discount if the firm pays within 15 days.
annual financial cost = [discount / (100% - discount)] x [365 / (repayment time - discount period)]
annual financial cost = [3% / (100% - 3%)] x [365 / (85 - 15)] = (3% / 97%) x (365 / 70) = 0.1613 or 16.13%
The following information applies to Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories:
Beginning Inventory Ending Inventory
Raw materials inventory $ 120,000 $ 185,000
Work in process inventory-Weaving 300,000 330,000
Work in process inventory-Sewing 570,000 700,000
Finished goods inventory Inventory 1,266,000 1,206.000
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on credit) Factory wages cost (paid in cash) Other factory overhead cost (other Accounts credited) Materials used 500,000 3,060,000 156, 000 Direct-Weaving Direct-Sewing Indirect $ 240, 000 75,000 120,000 Labor used Direct-Weaving Direct-Sewing Indirect $1,200, 000 360,000 1,500,000 Overhead rates as a percent of direct labor Weavinqg Sewing 80% 150% Sales (on credit) $4,000,000
1. Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods and (c) cost of goods sold
2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, and (c) sale of finished goods
Complete this question by entering your answers in the tabs below
Required 1
Required 2
Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and (c) cost of goods sold
(a) Sewing
(b) Finished Goods
(c) Cost of goods sold
Find the given attachments
At the beginning of July, CD City has a balance in inventory of $2,950. The following transactions occur during the month of July.July 3 Purchase CDs on account from Wholesale Music for $1,850, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $4,900, that had a cost of $2,550. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,650, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,750, that had a cost of $2,050. July 28 Return CDs to Music Supply and receive credit of $210. July 30 Pay Music Supply in full.Assuming that CD City uses a perpetual inventory system, record the transactions.
Answer and Explanation:
The Journal entries is shown below:-
1. Merchandise Inventory Dr, $1,850
To Accounts payable $1,850
(Being inventory is recorded)
2. Merchandise Inventory Dr, $110
To Cash $110
(Being cash paid is recorded)
3. Accounts payable Dr, $200
To Merchandise Inventory $200
(Being return inventory is recorded)
4. Accounts Payable Dr, $1,650 ($1,850 - $200)
Inventory Dr, $33 ($1,650 × 2%)
To Cash $1,617
(Being cash paid is recorded)
5. Accounts receivable Dr, $4,900
To Sales revenue $4,900
(Being sales revenue is recorded)
6. Cost of goods sold Dr, $2,550
To Merchandise Inventory $2,550
(Being cost of goods sold is recorded)
7. Cash Dr, $4,900
To Accounts receivable $4,900
(Being cash receipt is recorded)
8. Inventory Dr, $2,650
To Accounts payable $2,650
(Being inventory is recorded)
9. Cash Dr, $3,750
To Sales revenue $3,750
(Being cash receipt is recorded)
10. Cost of goods sold Dr, $2,050
To Merchandise Inventory $2,050
(Being cost of goods sold is recorded)
11. Accounts payable Dr, $210
To Merchandise Inventory $210
(Being inventory is recorded)
12. Accounts payable Dr, $2,440 ($2,650 - $210)
To Cash $2,440
(Being cash is recorded)
The Federal Reserve System (the 'Fed') was created by the Federal Reserve Act, passed by Congress in 1913, and began operations in 1914. Like all central banks, the Federal Reserve is a government agency. All of the following statements are true about the Fed except:
a. the Federal Reserve is the "lender of last resort.
b. it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
c. it focuses on making a profit like commercial banks.
d. it has the power to supervise and regulate banks.
Answer:
b. it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
Explanation:
This is generally what the federal reserve does, and they try to stop both deflation and inflation
Neil Andrews is the marketing manager for the National Basketball Association. Neil analyzes and tracks his marketing campaigns to determine the best success rate per project for increasing ticket sales. Neil uses an internal KPI to track his marketing campaign success. Which of the following would be an internal KPI Neil would use to track his marketing campaigns?
A. Marketing campaign market share eBook
B. Marketing campaign percentage of fans purchasing Sports Ilustrated magazine
C. Marketing campaign advertiser revenue sales
D. Marketing campaign ROI
Answer:
Option D
Explanation:
Neil Andrews, communications coordinator for that National Basketball Association. Neil evaluates and monitors its marketing strategies to assess the optimal rate of performance for a campaign to boost ticket prices. The ROI marketing campaign will be an internal KPI Neil used to track its marketing techniques.
Apps that are permitted to be installed on the company network, such as IM software and company computer equipment used mostly for personal purposes on online communities, are two fields that should be handled by organizational security administrators.
Thus, from the above we can conclude that the correct option is D.
Winganon Company began 2020 with 6,500 units of its principal product. The cost of each unit is $8.25. Merchandise transactions for the month of January 2020 are as follows:
Purchases
Date of Purchase Units Unit Cost Total Cost
Jan. 7 9,000 $ 8 $ 72,000
Jan. 21 10,000 $ 9 $ 90,000
Totals 19,000 $ 162,000
Includes purchase price and cost of freight.
Sales
Date of Sale Units
Jan. 2 6,000
Jan. 13 9,000
Jan. 25 8,500
Total 23,500
required:
compute the number and total cost of unit available for sale in the year 2020?
Answer:
25,500 units
Cost of goods available for sale is $215,625.00
Explanation:
The available for sale units in the year is the sum of opening stock of inventory and purchases made in the course of the year as spelt below:
Quantity Price per unit $ total value $
Opening stock 6,500 8.25 53,625.00
Purchases(Jan7) 9,000 8.00 72,000.00
Purchases(Jan 21) 10,000 9.00 90,000.00
Total 25,500 215,625.00
The total number of goods available for sale is 25,500 units
The total cost of goods available for sale is $215,625
The cost of goods sold would then be the costs of goods available for sale less the value of closing stock of inventory
You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The Chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. She wants to know what policy to pursue to increase aggregate output by $500 billion. The best estimate she has for the MPC is 0.5. Which of the following policies should you recommend? Why?
A) increase government purchases by $200 billion B) increase government purchases by $250 billion C) cut taxes by $200 billion D) cut taxes by $200 billion and to increase government purchases by $200 billion
Answer:
Council of Economic Advisors (CEA)
I would recommend this policy to increase aggregate output:
B) increase government purchases by $250 billion
Explanation:
To increase aggregate output (GDP) by $500 billion, in order to reduce the unemployment rate, government, given the best estimate for the MPC as 0.5, it would be to increase government purchases by $250 billion. The MPC is the marginal propensity to consume.
By increasing government purchases by $250 billion, the ripple effect would ginger industries to generate more output, thereby increasing the factors that affect aggregate output. These actions would then increase aggregate output by more than $500 billion. This choice is made because government spending is funded from taxes, making government unable to cut taxes.
Economists define aggregate output as "the sum of all the goods and services produced in an economy over a certain period of time." Aggregate output is an economy's total productivity or GDP (Gross Domestic Product). The factors that determine aggregate output include household wealth, consumer and business expectations, capacity utilization, monetary policy, fiscal policy, exchange rates, and foreign GDP.
The equation for calculating aggregate output, which expands the GDP by showing price level, is given as "Y = Y ad = C + I + G + NX tells us that aggregate output (or aggregate income) is equal to aggregate demand, which in turn is equal to consumer expenditure plus investment (planned, physical stuff) plus government spending plus net exports (exports – imports)."
Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing operations, $8,400 income from operations of discontinued Line C, and $12,500 loss on disposal of Line C.
Starting with income from continuing operations, prepare a partial income statement for Niler for the current year. Ignore earnings per share.
Answer:
The net income for Niler Corporation for the current year is $30,900.
Explanation:
When there is a discontinued operation, the income from the discontinued operation is added to the income from continuing operations while the loss on disposal of the same operation is added to obtain the net income for the company. This can be done as follows for this question:
Niler Corporation
Partial Income Statement
Details $
Income from continuing operations 35,000
income from operations of discontinued Line C 8,400
Loss on disposal of Line C (12,500)
Net income 30,900
Therefore, the net income for Niler Corporation for the current year is $30,900.
On average, 5% of credit sales has been uncollectible in the past. At year-end, before adjusting entries, the Accounts Receivable balance is $100,000 and the Allowance for Doubtful Accounts balance is $500 (credit). Net credit sales during the year were $150,000. Using the percentage of credit sales method, the ending balance in the "Allowance for Doubtful Accounts" is
Answer: $7500
Explanation:
The following can be deduced from the question:
Accounts Receivable balance= $100,000
Allowance for Doubtful Accounts = $500
Net credit sales = $150,000.
Percentage-of-sales approach states that the amount of bad debt expense that is recognized by a company will be calculated as a percentage of the credit sales that are generated during the current accounting period.
Using the percentage of credit sales method, the ending balance in the "Allowance for Doubtful Accounts" will be:
= Net credit sales × percentage of credit sales uncollected in the past
= $150,000 × 5%
= $150,000 × 0.05
= $7500
Data collected from the economy of Pokerville reveals that a 16% increase in income leads to the following changes:
• A 12% increase in the quantity of horses demanded.
• A 14% decrease in the quantity of clubs demanded.
• A 28% increase in the quantity of diamonds demanded.
Compute the income elasticity of demand for each good and use the dropdown menus to complete the first column in the following table.
Good Income Elasticity of Demand Normal or Inferior Good
Horses
Spades
Aces
Which of the following three goods is most likely to be classified as a luxury good?
a. Aces
b. Spades
c. Horses
Answer:
Horses - 0.75 - normal
Clubs- 0.875 - inferior
Diamonds - 1.75 - normal
Diamond is a luxury good
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income of the consumer.
Income elasticity of demand = percentage change in demand / percentage change in income
Income elascitiy for horses = 12% / 16% =
Income elasticity of demand for spades = 14% / 16% = 0.875
Income elasticity of demand for diamonds 28% / 16% = 1.75
A normal good is a whose demand increases when income increases and falls when income falls.
An inferior good is a good whose demand increases when income falls and whose demand falls when income increases.
Horses and diamonds are normal goods because the demand for the goods increases with income while clubs are inferior goods because the demand for the goods falls when income rises.
A luxury good is a good whose demand rises more than the rise in income. The demands for diamonds increase more than the increase in income, so diamonds are luxury goods.
I hope my answer helps you
Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt—HD has more debt and pays a higher interest rate on that debt. Based on the data given below, what is the difference between the two firms' ROEs? Applicable to Both Firms Firm HD's Data Firm LD's Data Assets $200 Debt ratio 50% Debt ratio 30% EBIT $40 Interest rate 12% Interest rate 10% Tax rate 35%
Answer:
2.41%
Explanation:
The difference between the two firms' ROEs is shown below:-
Particulars Firm HD Firm LD
Assets $200 Debt ratio 50% Debt ratio 30%
EBIT $40 Interest rate 12% Interest rate 10%
Tax rate 35%
Debt $100 $60
Interest $12 $6
($100 × 12%) ($60 × 10%)
Taxable income $28 $36
($40- $12) ($40 - $6)
Net income $18.2 $22.1
$28 × (1 - 0.35) $36 × (1 - 0.35)
Equity $100 $140
($200 - $100) ($200 - $60)
ROE 18.2% 15.79%
($18.2 ÷ $100) ($22.1 ÷ $140)
Taxable income = EBIT - Interest
Net income = Income - Taxable income
Equity = Assets - Debt
ROE = Net income ÷ Equity
Difference in ROE = ROE Firm HD - ROE Firm LD
= 18.2% - 15.79%
= 2.41%
So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.
An inexperienced accountant for Ayayai Corp. showed the following in the income statement: income before income taxes $250,000 and unrealized gain on available-for-sale securities (before taxes) $85,000. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income.
Answer:
Ayayai Corp.
Statement of Comprehensive Income
For the Year Ended xxx, 202x
Net income $187,500
Other comprehensive income:
Unrealized gain on AFS securities $85,000
Comprehensive income $272,500
Explanation:
In order to prepare a statement of comprehensive income we first need to determine net income after taxes = $250,000 x (1 - 25%) = $187,500
Unrealized gains or losses are not taxed until they are actually realized (either make profit or lose money).
Kuzma Foods, Inc. has budgeted sales for June and July at $ 680 comma 000 and $ 765 comma 000, respectively. Sales are 85% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is the budgeted Accounts Receivable balance on July 31?
Answer:
$195,075
Explanation:
The computation of the budgeted account receivable balance as on July 31 is shown below:
= July budgeted sales × credit sales percentage × following month percentage
= $765,000 × 85% × 30%
= $195,075
We simply multiplied the July budgeted sales with the credit sales percentage and the following month percentage so that the budgeted account receivable balance could come
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $37,000. A total of $4,000 was paid for installation and testing. During the first year, Milton paid $6,000 for insurance on the equipment and another $700 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $8,000. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1
Answer:
Annual depreciation= $4,620
Explanation:
Giving the following information:
Purchasing price= $37,000
Installation= $4,000
Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and the estimated salvage value is $8,000. During Year 1, the equipment produced 14,000 units.
First, we will determine the total cost consisting of the purchasing price and all costs to make the equipment operable.
Total cost= 37,000 + 4,000= $41,000
Now, to calculate the depreciation expense, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(41,000 - 8,000)/100,000]*14,000
Annual depreciation= $4,620
Required: Using the adjusted trial balance on the next page for Buttross Manufacturing, Inc., prepare statements for the fiscal year ended September 30, 2020, in good form:
Part 1: Prepare a Statement of Cost of Goods Manufactured
Part 2: Prepare a Multiple-Step Income Statement
Aside: The general ledger would usually include a factory overhead control account and the detail of factory overhead would be in a subsidiary ledger. However, the detail of factory overhead has been put into the adjusted trial balance mixed with the other accounts to make sure you can distinguish accounts going into cost of goods manufactured from those going into the income statement.
Find the given attachments for answer.
Note: The adjusted trial balance is added.
Cost of Goods Sold = Beginning finished goods inventory + COGM - Ending Finished Goods Inventory = 69,000 + 311,000 -100,000 = 280,000.
Cost of goods available for sale = Beginning finished goods inventory + COGM
COGS = Cost of goods available for sale - Ending finished goods inventory.
Every year, the U.S. Census Bureau conducts an income survey of about 60,000 American families carefully selected to represent the whole population. The data collected help to measure income inequality in the economy. Which of the following causes the census data to inaccurately measure income inequality?
a) Very few people move from one income quintile to another over the years.
b) Higher-income families tend to have more persons to support.
c) In-kind transfers do not add to people's incomes but are counted as income.
Answer:
c) In-kind transfers do not add to people's incomes but are counted as income.
Explanation:
In the given scenario the aim of the census is to measure income inequality in the population selected.
If however the amount of income earned by individuals is not estimated accurately the results of the study will be inaccurate.
In kind transfers are usually goods and services that a person gets for free of at a reduced rate. They are not considered to be income.
When in kind transfers are counted as income and do not actually add up to income, we cannot get a true picture of income of participants of the income survey.
People who have low income but high in kind transfers will be considered high income earners which is not true.
Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is pequals=140140minus−22q, where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $2020, which is the marginal cost his round imposes on the Club. What membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round. How much extra profit does the Club earn by using two-part pricing? The profit-maximizing membership fee (F) is $nothing. (Enter your response as a whole number.)
Answer: $1800
Explanation:
Here is the correct question:
Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is p=140-2q, where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $20, which is the marginal cost his round imposes on the Club. What membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round. How much extra profit does the Club earn by using two-part pricing? The profit-maximizing membership fee (F) is $nothing. (Enter your response as a whole number.)
Answer:
p = 140 - 2q
The profit-maximizing membership fee will be equal to total surplus
Therefore, the number of rounds that Joe played will be,
P = MC
20 = 140 - 2q
2q = 140 - 20
2q = 120
q = 120/2
q = 60
Total surplus = 1/2 × (vertical intercept of the demand curve - marginal cost) × the quantiy of rounds.
Total surplus = 1/2 × (140 - 20) × 60
= 1/2 × 120 × 60
= 3600
Therefore, the maximum membership fee will be = $3600.
If the firm charge Joe a single price , then the rounds provided will be such that MR = MC
Total revenue = price × quantity
TR = (140 - 2q) × q
TR = 140q - 2q²
MR = dTR/dQ = 140 - 4q
We then equate MR = MC
140 - 4q = 20
4q = 140 - 20
4q = 120
q = 120/4
q = 30
P = 140 - 2q
P = 140 - (2 × 30)
P = 140 - 60
P = 80
Therefore, the profit if a single price is charge will be:
= TR - TC = pq - MC×q = (P-MC)×Q
= (80-20) × 30
= $1800
Therefore, the increase in the profit by two-par pricing will be:
=Membership fee - Profit of single price charge
= $3600 - $1800
= $1800
The new growth theory states that A. technological advances are the responsibility of the government. B. the subsistence level income leads to technological advances. C. technological advances are the result of discoveries and choices. D. it is impossible to replicate production activities. E. technological advances are the result of random chance.
Answer:
C. technological advances are the result of discoveries and choices.
Explanation:
The new growth theory was developed by a man named med Paul Romer. This new growth theory stresses the role which is determined by human choices.
The new growth theory states that technological advances are the result of discoveries and choices, rather than random choices. It explains the fact that new innovations and technological advancement are not the result of random chance, but they occur as a result of humans and their desire for new innovations.
Therefore option C is correct
A friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing: 1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).
Answer: 1. 12. 2. 1.090. 3. 0.08327
Explanation:
Here is the complete question:
friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing:
1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).
The value of f is:
2. Calculate the rate of job separation (s), using an average rate per week. Enter this value into the box below. Note that if s is the rate of job separation, then the average length of employment is (1/s).
The value of s is:
3. Calculate the natural rate of unemployment (U) using the above results and enter this value in the box below.
The natural rate of unemployment (in percent) is
1. From the question, we can see that it was said that took her one full week to get a job over the last 12 week summer break. The unemployment rate will be 12.
The value of f is: 12
2. From the question, the average length of the employment is 11/12 weeks. The rate of job separation will be: s = 12weeks ÷ 11 weeks
s = 1.090
The value of s is: 1.090
3. The natural rate of unemployment will be:
U = s/(s+f)
= 1.090/(1.090 + 12)
= 1.090/13.090
= 0.08327
A cost center
A) only incurs costs and does not directly generate revenues.
B) incurs costs and generates revenues.
C) is a responsibility center of a company which incurs losses.
D) is a responsibility center which generates profits and evaluates the investment cost of earning the profit.
Answer: A---incurs costs and does not directly generate revenue.
Explanation:
A cost center is a department or unit in an organization which incurs cost on the organisation for its operation but does not directly add profit or directly generate revenue to the company.
Examples of a cost centre in a company include, The IT department., Research and Development Department.
For example the way in which an IT department, a cost centre in a company can indirectly generate revenue by operating efficiently and for the Research and Development Department is to develop a new promising product.
Two countries are trying to decide which product should have an increased production Both Canada and Costa Rica produce cottee and corn, but is easier for Canada to raise com than grow Coffee Costa Rica easily grows coffee, but has a more difficult time growing com. In comparison with Costa Rica, Canada has:_________.
a the camale to create richer lasting coffee than Costa Rica
b the opportunity to increase their coffee production to better compete with Costa Rka
c. a comparative advantage with com.
A Moving to another question will save this response
Answer:
. a comparative advantage with com.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
If it is easier for Canada to produce Com, it means they have a comparative advantage in the production of com. Costa Rica has a comparative advantage in the production of coffee.
I hope my answer helps you
A company's January 1, 2019 balance sheet reported total assets of $111,000 and total liabilities of $48,000. During January 2019, the following transactions occurred: (A) the company issued stock and collected cash totaling $21,000; (B) the company paid an account payable of $5,100; (C) the company purchased supplies for $2,900 with cash; (D) the company purchased land for $41,000, paying $18,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above
