Answer: Common resource ,
Non excludable and Rival in consumption
Explanation:
Common resource is defined as the resource that is usually available to people in open form and people tend to overuse it.This creates shortage of resource and brings scarcity.They are considered rival in nature.Any good is considered rival if consumption of good by one person reduces consumption of that good for another person. It is regarded as subtractable.Non-excludable good is defined as the good that does not stop other people or group of people to consume or use it.There is no certain restriction of using particular good.According to the questions scenario, recreational wildlife game area is common resource because Yakov, Rajiv and Kevin are using that area for hunting openly .Other hunters can also use the area for hunting as it is available commonly for everyone as per their needs.
Animal of wildlife game area can be considered rival and non-excludable in consumption because they are openly available for hunter and there is no restriction on their usage (hunting) particularly.Thus, if a hunter hunts more number of animals using intensive hunting mechanism, it will reduce number of animals for other hunters .
As marketing tools, how do blogs benefit companies? A. Demographic information about customers can be easily discovered. B. Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations. C. Blogs are online selling platforms for people located in hard-to-reach places. D. Blogs provide companies with a platform to help portray wider merchandise. E. Blogs help reach a wider audience compared to other online direct marketing tools.
Answer:
The correct answer to the following question will be Option B.
Explanation:
A blog seems to be a new website where items are frequently published being presented in reverse order, can give a new, initial, personal as well as inexpensive chance of engaging in conducting this survey.The benefit of utilizing a company blog though is that the content provides faith to your clients or clients to support you as well as your organization as such a professional in your specialized subject or area.The other choices have no relation to the given circumstance. So choice B seems to be the perfect solution to that.
Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses
Answer:
Option C
Explanation:
In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.
Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.
Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per bag. She observes that every hour, 4 people each buy one bag of pistachios and 2 people each buy one bag of almonds. Having surveyed them, she learns that 2 of the pistachio buyers would be willing to pay $2 for the bag of almonds while the other two would only be willing to pay $1. Both almond buyers would be willing pay $5 for the bag of pistachios. Suppose Peggy decides to sell a bundle containing one bag of pistachios and one bag of almonds in addition to selling them separately. What price should she charge for the bundle in order to maximize revenue?
Answer:
The price she should charge for the bundle in order to maximize profit is 9
Explanation:
Solution
The total pistachios sold = 7 * 2 =14
The total almonds sold is = 4*1 = 4
So,
The total of both pistachios and almonds = 14 + 4 + 18
Thus,
we solve for getting average of the two which is:
Getting the average of the two in the bundle = 18/2
=9
Therefore p =9
On 3/1/14 Fox Corp bought back 1,000 shares of their common stock for $15 per share. There were no shares in the treasury prior to that. On 5/23/14 they sold 200 of those shares for $17 each. On 6/19/14 they sold another 400 shares of those shares for $10 per share. Consider writing out all of your entries on scratch paper to assist you in answering questions 31 and 32. What will the remaining balance in the treasury stock account be after all of the above transactions have been recorded
Answer:
For question (31) $ 6000 (32) The net impact on retained earning is 1600 (Which is a negative
Explanation:
Question 31
No. Rate Value
Purchase of Treasury Stock 1000 15 15000
Less: Sold on 5/23/14 200 15 3000
Less: Sold on 6/19/14 400 15 6000
Net remaining value 6000
Note: to calculate the closing value of treasury stock, rate of selling stock need to be taken same as of date of purchase.
For question 31 the answer is $ 6000
Question 32
Impact on retained earning on first sale
No. Rate Value
Sale VALUE 200 17 3400
Less: Purchase of Treasury Stock 200 15 3000
Credit Retained earning 400
Impact on retained earning on second sale
No. Rate Value
Sale VALUE 400 10 4000
Less: Purchase of Treasury Stock 400 15 6000
Debit Retained earning -2000
Net Impact on retained earning 1600 (Negative i.e. Debit)
Therefore the remaining balance in the treasury stock account be after all of the above transactions have been recorded is $6000
Note: Kindly find an attached copy of the complete question to this solution
At the beginning of 2020, Vaughn Company acquired a mine for $1,965,400. Of this amount, $115,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,010,000 units of ore appear to be in the mine. Vaughn incurred $195,500 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $46,000. During 2020, 2,433,000 units of ore were extracted and 2,081,000 of these units were sold.
Compute the total amount of depletion for 2020.
Answer:
$462,270.00
Explanation:
The first task is to determine the depletion rate per unit of ore extracted from the mine.
depletion rate=total cost the mine/total units of ore extract
total cost of mine=acquisition cost-land value+development costs+removal cost
total cost of mine=$1,965,400-$115,000+$195,500+$46,000=$2,091,900.00
total units of ore extract is 11,010,000 units
depletion rate= 2,091,900.00/11,010,000=$0.19 per unit of ore
depletion amount in 2020=depletion rate*ore extracted in 2020=2,433,000*$0.19 =$462,270.00
Answer:
$408,903
Explanation:
Depletion is an estimated cost of a natural resource that is extracted. This resource is expensed as the extraction is made.
As per given data
Total Payment = $1,965,400
Land Value = $115,000
Value of Rights = $1,965,400 - $115,000 = $1,850,400
Estimated resources = 11,010,000 units
Resources extracted in the period = 2,433,000 units
Depletion expense is based on ratio of the amount of extraction in period to the total expected resource.
Depletion Expense = $1,850,400 x 2,433,000 / 11,010,000 units = $408,903
Discuss economic theory related to the quote above. Be sure to include a definition of Labor Force Participation Rate (LFPR) within your discussion. Locate and incorporate outside research that gives evidence and explanation as to the possible causes of these declines in the Labor Force Participation rate. Integrate biblical insights into your discussion board thread. In what way does scripture influence our decision to work
Answer:
The labor force is the group of individuals for employment. The labor force investment rate is the proportion of labor force partitioned by all out populace of the applicable age. As per month to month work survey, the labor force support rate keeps on falling. As indicated by different market analysts, this wonder is because of the blend of segment, basic, and repetitive elements. Also, due to LFPR , the support of youth and the primary age bunch is required to decay. Likewise, the investment paces of laborers of more seasoned age are additionally anticipated to increment, yet remain essentially lower than those of the prime age group. These aspects have applied descending weight on the general labor force support proportion over the 2012–2022 time period and the proportion is relied upon to decrease further, to 61.6% in 2022.
The drawn out issue of joblessness is because of repetitive and auxiliary reasons, when numerous individuals the segment organization of a nation mirrors the portions of men, ladies, and the distinctive age, race, and ethnic gatherings inside that populace. The case of the time of increased birth rates age in segment change influences the labor force investment rate. Consistently after 2000, the portion of the time of increased birth rates populace has moved into the 55-years-and-more seasoned age bunch which transfers from the principal age gathering to one with considerable lesser investment proportions, origins the general cooperation of the labor force to decay.
Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Answer:
he35
Explanation:
h
Dexter Industries purchased packaging equipment on January 8 for $116,600. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,600. The equipment was used for 8,700 hours during Year 1, 7,380 hours in Year 2, and 3,920 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ended December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. (Note: For STRAIGHT-LINE ONLY, round the first two years to the nearest whole dollar, then round the third year as necessary. For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.) 2. What method yields the highest depreciation expense for Year 1
Answer:
Straight-line method: $36,667 yearly depreciation expense for 3 years. Unit-of-production method: Year 1 - $47,850, Year 2 - $40,590, Year 3 - $21,560Double-declining method: Year 1 - $77,737, Year 2 - $25,910, Year 3 - $6,353Total for 3 years is $110,000 for all the depreciation methods.
Explanation:
(A) Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($116,600 - $6,600) / 3 years = $36,667 yearly depreciation expense.
Accumulated depreciation for 3 years is $36,667 x 3 years is $110,000.
(B) The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:
(Original Cost - Salvage value) / Estimated production capacity x Units/year
At Year 1, depreciation expense (DE) is: ($116,600 - $6,600) / 20,000 operating hours x 8,700 hours = $47,850
At Year 2, depreciation expense (DE) is: ($116,600 - $6,600) / 20,000 operating hours x 7,380 hours = $40,590
At Year 3, depreciation expense (DE) is: ($116,600 - $6,600) / 20,000 operating hours x 3,920 hours = $21,560
Accumulated depreciation for 3 years is $47,850 +$40,590 + $21,560 = $110,000.
Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 1.
(C) The double-declining method is otherwise known as the reducing balance method and is given by the formula below:
Double declining method = 2 X SLDP X BV
SLDP = straight-line depreciation percentage
BV = Book value
SLDP is 100%/3 years = 33.33%, then 33.33% multiplied by 2 to give 66.67% or 2/3
At Year 1, 66.67% X $116,600 = $77,737
At Year 2, 66.67% X $38,863 ($116,600 - $77,737) = $25,910
At Year 3, 66.67% X $12,953 ($38,863 - $25,910) = $8,636. This depreciation will decrease the book value of the asset below its salvage value $12,953 - $8,636 = $4,317 < $6,600. Depreciation will only be allowed up to the point where the book value = salvage value. Consequently the depreciation for Year 3 will be $6,353.
Accumulated depreciation for 3 years is $77,737 + $25,910 + $6,353 = $110,000.
On January 1, 2011, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2013, by the grantees still in the employ of the company. No options were terminated during 2011, but the company does have an experience of 20% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2011
Answer:
The amount should G charge to compensation expense for the year ended December 31, 2011 is $320,000
Explanation:
In order to calculate the amount should G charge to compensation expense for the year ended December 31, 2011 we would have to calculate the following formula:
amount should G charge to compensation expense for the year ended December 31, 2011=Total compensation/2
Note: company does have an experience of 20% forfeitures over the life of the stock options, therefore, 100%-20%=80%
Total compensation= 80,000 options × $10 × 80%
Total compensation= $640,000
amount should G charge to compensation expense for the year ended December 31, 2011=$640,000/2
amount should G charge to compensation expense for the year ended December 31, 2011=$320,000
Which of the following is the most likely negative consequence of excessive change in an organization? Group of answer choices Staff being asked to do too much Staff being restricted to a single activity The operation of the organization at less than capacity The establishment of a system for prioritizing projects
Answer:
Staff being asked to do too much.
Explanation:
Excessive change in an organization is defined as a process when organizations pursue several differing, unrelated and sometimes changes that are conflicting simultaneously. It can also be, when an organization involves in introducing new changes before previous changes are being accomplished.
Additionally, when staffs or employees perceives change as being excessive, they react in various ways. Some of their reactions to excessive change includes;
• They become overwhelmed.
• Lack of motivation.
• They're stressed out.
• Frustration and anger builds among them.
• Inadequacy, uncertainty
and incompetence.
The lower level staffs and middle managers are most likely to experience, the negative consequence of excessive change in an organization because they're being asked to do too much.
(Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate of his deceased uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000 and the rate of return is 12 percent per year, how much of the $8,000 must James deposit now to have the $5,000 in five years
Answer:
$2837.13
Explanation:
The account value is multiplied by 1 +12% = 1.12 each year, so at the end of 5 years, it will have been multiplied by 1.12^5. For some investment P, we want ...
5000 = P×1.12^5
5000/1.12^5 = P ≈ $2837.13
James must deposit about $2837.13 now to have the required amount in 5 years.
The economy is in equilibrium, TP = TE. Then, autonomous consumption rises. As a result, __________ rises, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of goods and services they produce. Group of answer choices consumption; TE; downward; fall; increase consumption; TE; upward; fall; increase consumption; TE; upward; rise; decrease investment; TE; upward; fall; increase investment; TP; leftward; fall; increase
Explanation:
The economy is in equilibrium, TP = TE. That is total production is equal to total production.
Then, autonomous consumption rises. As a result, consumption rises, the TE(total expenditure) curve shifts upwards, inventory levels unexpectedly falls, and business firms increases the quantity of goods and services they produce.
Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contributing land (basis of $30,000 and fair market value of $120,000). John received a 60% interest in partnership capital and profits in exchange for contributing $180,000 of cash. Three years after the contribution date, the land contributed by Brooke is sold by the partnership to a third party for $150,000. What gain must Brooke recognize on the land contribution when establishing the partnership
Answer:
$102,000
Explanation:
According to 26 US code Section 704(c) - Partner's distributive share :
Taxable gain to be recognized from sale = Sale value - ( Partner's share * Fair market value )
Brooke contributed the land, the gain realized before the land was contributed = $120,000 - $90,000 will be allocated entirely to her. She will also be allocated 40% of the gain after the contribution was made = ($150,000 - $120,000) x 40% = $30,000 x 40% = $12,000.
So the total gain recognized by Brooke will be $90,000 + $12,000 = $102,000.
Partnerships are pass through entities, the partners are taxed, not the partnership itself.
The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beginning inventory $ 196,000 $ 280,000 Purchases 896,000 1,280,000 Freight-in 24,000 — Net markups — 80,000 Net markdowns — 56,000 Sales — 1,344,000 If the ending inventory is to be valued at approximately the lower of cost or market, what is the cost-to-retail ratio?
Answer:
$ 168,000
Explanation:
Include both Mark-ups and Mark-Downs and Exclude beginning inventory
When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates
the Previous year Ending inventory :
Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail
For Current year Addition :
Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail
Current year addition in retail includes : Markup ,Markdown purchases
Kindly check the attached images below to see the step by step explanation to the question above.
Consider two independent firms, BU1 and BU2, which transact with each other through spot market transactions in a competitive market. In a typical year, BU1 incurs total costs of $2 million in producing goods that BU2 buys. BU2 would be willing to pay up to $7.5 million for these goods, but because of the competitive market, ends up paying $5 million. What is the value captured by BU1 from these transactions?
Answer:
Value captured by BU1 = $5.5 million
Explanation:
Given:
Two firm = BU1 , BU2
BU1 cost of production = $2 million
BU2 will able to pay up-to = $7.5 million
BU2 will pay = $5 million:
Find:
Value captured by BU1 = ?
Computation:
⇒ Value captured by BU1 = BU2 will able to pay up-to - BU1 cost of production
⇒ Value captured by BU1 = $7.5 million - $2 million
⇒ Value captured by BU1 = $5.5 million
Based on the information given the value captured by BU1 from these transactions is $3 million.
The value captured by the seller (BU1)
Seller value =Value BU1 is willing to sell -Value at which he sold
Where:
Value BU1 is willing to sell=$5 million
Value at which he sold=$2 million
Let plug in the formula
Seller value=$5 million-$2 million
Seller value= $3 million
Inconclusion the value captured by BU1 from these transactions is $3 million.
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Assume that an economy is initially in long-run equilibrium. Explain the short-run effect of monetary policy that causes an increase in interest rates. As a result of higher interest rates, the A. long-run aggregate supply curve will shift left. B. aggregate demand curve will shift left. C. short-run aggregate supply curve will shift left. D. aggregate demand curve will shift right. The new equilibrium will be A. where the original aggregate demand curve intersects the original short-run aggregate supply curve. B. where the new aggregate demand curve intersects the original short-run aggregate supply curve. C. where the new aggregate demand curve intersects the original aggregate demand curve.
Answer:
As a result of higher interest rates, the
B. aggregate demand curve will shift left.The new equilibrium will be
B. where the new aggregate demand curve intersects the original short-run aggregate supply curve.Explanation:
A contractionary monetary policy will increase the interest rates, lowering investment and consumption. This will result in a leftward shift of the aggregate demand curve.
The new equilibrium (E1) will be at the point where the new aggregate demand curve (AD1) intersects the original short run aggregate supply curve (SRAS) and the long run aggregate supply curve (LRAS).
A company incurs $3,600,000 of overhead each year in three departments: Processing, Packaging, and Testing.
The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of Oil and 600,000 drums of Sludge.
The following data are available:
Department Expected Use of Driver Cost
Processing 800 $1,500,000
Packaging 200,000 1,500,000
Testing 2,000 600,000
Production information for the two products is as follows:
Oil Sludge
Department Expected Use of Driver Expected Use of Driver
Processing 300 500
Packaging 120,000 80,000
Testing 1,600 400
The amount of overhead assigned to Sludge using ABC is
a. $1,800,000.
b. $1,657,500.
c. $1,942,500.
d. $1,380,000.
Answer:
its 1,800,000
because it the answer
Vaughn Manufacturing expects to purchase $180000 of materials in July and $170000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be?
Answer:
The August's cash disbursements for materials purchases would be
$172,500.00 for Vaughn Manufacturing
Explanation:
The cash disbursements in the month of August consist of the three-fourth cost of the August purchases and the one-fourth of the July purchases since the 3/4 of the cost of materials purchased is paid in the same month as purchases and the balance of 1/4 of purchase cost in the succeeding month
Cash disbursements in August=($170,000*3/4)+($180,000*1/4)=$127500 +$45,000=$172,500.00
Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $3.4 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $110,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used
Answer:
$658,000
Explanation:
According to the scenario, computation of the given data are as follows:
Granite Enterprises Patent acquired = $3.4 million
Used years = 5 years
Rocky corporation purchase after 5 years = $110,000
So, we can calculate the Granite's patent amortisation by using following formula:
Granite's patent amortisation = ($3,400,000 - $110,000) ÷ 5
= $3,290,000 ÷ 5
= $658,000
Stellar Plastics is analyzing a proposed project with annual depreciation of $19,500 and a tax rate of 34 percent. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per unit is $3.20 plus or minus 4 percent, and the expected fixed costs are $30,000 plus of minus 2 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000
Answer:
$20,226
Explanation:
expected sales = 11,400 - 12,000 - 12,600
expected sales price = $7.20 - $7.50 - $7.80
expected variable cost = $3.072 - $3.20 - $3.328
total fixed costs = $31,000
if you use an excel spreadsheet you can calculate all the different possible simulations and combine all the expected sales x 3 different price levels x 3 different variable costs and 1 fixed cost. Once you get all the 27 possible solutions, you just get the average.
I attached it because there is no room here.
Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency. If 1 BRL/USD futures contract is for 100,000 reals What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.
Answer:
The answer is 5000 future contracts
Explanation:
Solution
Given that:
Royal Dutch buys ethanol fuel from Brazilian energy company
Nowm,
The Required coverage = 500,000,000
The BRL/USD futures contract size = 100,000
Number of contracts required = 500,000,000/100,000
So,
= 500,000,000/100,000 = 5000
Therefore, the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery is 5000
A perfectly competitive firm is a: Group of answer choices price taker, because it must accept the market equilibrium price. price participant, because it can coordinate its pricing decisions with other firms. price maker, because it has the freedom to set the selling price. price leader; it can change its price and other firms will adjust.
Answer:
A. price taker, because it must accept the market equilibrium price.
Explanation:
A perfectly competitive firm is an ideal firm in which different firms sell products that are homogeneous or similar in nature. They are price takers because the prices of goods are determined by changes in demand and supply, therefore they must accept the market equilibrium price. They do not attempt to fix the prices of commodities. The opposite of this type of firm is a monopoly where a firm has complete control of a market, having the ability to change prices as it wills.
An example can be found among businesses that sell similar kinds of products. It could be in the form of grocery stores that sell similar wares. When any of the sellers leave the market, it does not affect the other sellers as their prices are at equilibrium. Therefore, anyone can enter or exit this type of market.
Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded and paid wages expense of $120,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $20,000. Sold a long-term investment (cost $8,000) for cash of $6,000. Recorded cash sales of $800,000. Bought inventory for cash of $320,000. Acquired an investment in Zynga stock for cash of $42,000. Converted bonds payable to common stock in the amount of $1,000,000. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities?
Answer:
-$210,000
Explanation:
Issued Common Stock at par for Cash $250,000
Less:
Declared and paid a cash dividend $20,000
Repayment of 6-year note payable $440,000
Net Cash provided by Financing Activities ($210,000)
Marcellus Company is involved in a lawsuit. Footnote disclosure of the contingent liability which could arise does not have to be presented if the probability of Marcellus owing money as a result of the lawsuit is A) reasonably possible and the amount cannot be reasonably estimated. B) probable and the amount cannot be reasonably estimated. C) reasonably possible and the amount can be reasonably estimated. D) remote and the amount can be reasonably estimated.
Answer:
The answer is option B) probable and the amount cannot be reasonably estimated.
Explanation:
Contingency liability is the likelihood that a liability might occur sometimes in the future in the face of uncertain circumstances. To validate a contingency liability, the fa cts presented has to be reasonably possible and reasonably estimated.
in the case of Marcellus Company, footnote disclosure of the contingent liability which could arise does not have to be presented if the probability of Marcellus owing money as a result of the lawsuit is probable and the amount cannot be reasonably estimated.
Milton Friedman argues that __________.
O corporations today should adopt a broader view of their social responsibilities than they have in the past.
O corporate officials have a social responsibility that goes beyond serving the interests of their stockholders.
O strict governmental controls are necessary if society is to maximize its overall economic well-being.
O a business's only social responsibility is to maximize profits within the rules of the game.
Answer:
Milton Friedman argues that a business's only social responsibility is to maximize profits within the rules of the game.
Explanation:
Milton Friedman is known to hold an opposing view when compared to that of John Keynes about economic theory.
Whereas Milton Friedman believes that the utmost responsibility of any company is to the shareholders, the Keynesian are more consumer focused.
Milton Friedman believes strongly in free capitalism and as a result does not advocate for any company offering corporate social responsibility to the society or public.
g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000? The market rate of interest is the contract rate of interest. Therefore, inventors wi
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Total Years = 5, semiannually = 5 × 2 = 10
Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%
Journal Entries
On Jan 1
Cash A/c Dr. $9,594,415
Discount on bonds payable A/c Dr. $405,585
To Bonds payable A/c $10,000,000
(Being the issuance of bond payable is recorded)
Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585
2).
On Jun
Interest expenses A/c Dr. $390,559
Discount on bonds payable A/c($405,585 ÷10) Dr.40,559
To Cash A/c($10,000,0000 × 3.5%) $350,000
(Being the payment of first semiannual interest is recorded)
3).
On Dec 31
Interest expenses A/c Dr. $390,559
Discount on bonds payable A/c($405,585*10/100) Dr.$40,559
To Cash A/c($10,000,000*3.5/100) $350,000
(Being the payment of second semiannual interest is recorded)
b). Bond Interest Expense Amount for First Year
= Interest Expenses + Amortized Discount
= $700,000 + $81,117
= $781,117
Interest expenses = $350,000 + $350,000 = $700,000
Amortized Discount = $40,559 + $40,559 = $81,117
c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.
2021 2020 Income Statement Information Sales revenue $ 8,400,000 $ 7,900,000 Cost of goods sold 5,535,600 5,400,000 Net income 332,500 198,000 Balance Sheet Information Current assets $ 1,550,000 $ 1,450,000 Long-term assets 2,150,000 1,850,000 Total assets $ 3,700,000 $ 3,300,000 Current liabilities $ 1,150,000 $ 850,000 Long-term liabilities 1,550,000 1,550,000 Common stock 750,000 750,000 Retained earnings 250,000 150,000 Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000 Required: 1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders in 2021.
Answer:
2021 2020 Income Statement Information
Sales revenue $ 8,400,000 $ 7,900,000
Cost of goods sold 5,535,600 5,400,000
Net income 332,500 198,000
Balance Sheet Information
Current assets $ 1,550,000 $ 1,450,000
Long-term assets 2,150,000 1,850,000
Total assets $ 3,700,000 $ 3,300,000
Current liabilities $ 1,150,000 $ 850,000
Long-term liabilities 1,550,000 1,550,000
Common stock 750,000 750,000
Retained earnings 250,000 150,000
Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000
1.Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)
The four main profitability ratios are:
gross profit margin = (revenue - COGS) / revenue = ($8,400,000 - $5,535,600) / $8,400,000 = 0.341 or 34.1%net profit margin = net profit / revenue = $332,500 / $8,400,000 = 0.03958 or 3.96%return on assets = net income / average total assets = $332,500 / [($3,700,000 + $3,300,000)/2] = $332,500 / $3,500,000 = 0.095 or 9.5%return on equity = net income / shareholders equity = $332,500 / $1,000,000 = 0.3325 or 33.25%2.Determine the amount of dividends paid to shareholders in 2021.
retained earnings 2021 - retained earnings 2020 = net income - dividends
$250,000 - $150,000 = $332,500 - dividends
$100,000 + dividends = $332,500
dividends = $332,500 - $100,000 = $232,500
Which of the following are considered to be benefits of international trade? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Higher prices for domestic firms in industries with the highest level of imports unanswered More jobs in industries with a significant number of imports unanswered The ability to purchase goods produced abroad at lower prices than the domestic good unanswered Access to new resources that are not available domestically unanswered The ability to purchase new products that are not produced domestically
Answer:
1. Access to new resources that are not available domestically.
2. The ability to purchase new products that are not produced domestically.
3. The ability to purchase goods produced abroad at lower prices than the domestic good.
Explanation:
International trade involves the economic exchange or transactions of capital, goods and services between countries, mainly over international boundaries as a result of want or need by the consumers.
Examples of such goods are crude oil, clothing, electronic gadgets etc.
International trade can be classified into three categories namely;
- Import trade.
- Export trade.
- Entrepot trade.
The International Trade Organization now known as the World Trade Organization which was founded in 1994 is focused on efficiently lowering the cost of alternatives, creating access to resources and increased diversity of choice for consumers.
If the government set a price ceiling of $40, there would be: Group of answer choices a shortage (or excess supply) of about 8 units a shortage (or excess supply) of about 12 units a surplus (or excess demand) of about 8 units a surplus (or excess demand) of about 12 units
Answer:
A surplus (or excess demand) of about 8 units
Explanation:
The picture attached shows the diagram necessary for the question which is part of the question. Solution is given below;
At the above ceiling at price of 40$
Quantity supplied will be 16
Quantity demanded will be 24
So when demand is more than supply than there will be a shortage in quantity by (24-16) 8 units.
When there is demand more than supply than it is an excess demand.
So surplus or excess demand by 8 units.
Direct materials information Medium speed bump Large speed bump
Standard pounds per unit 15 ?
Standard price per pound $1.00 $1.80
Actual quantity purchased and used per unit ? 16
Actual price paid for material per pound $1.80 $2.10
Direct materials price variance $1,120 U $1,920 U
Direct materials quantity variance $100 F ?
Total direct material variance ? $480 U
Number of units produced 100 400
Calculate missing direct material variables
Answer:
Explanation:
For Medium speed bump
AQ AP AQ SP SQ SP
1,400 $ 1.80 1,400 $ 1.00 1,500 $ 1.00
$ 2,520.00 $ 1,400.00 $ 1,500.00
A B C
DMPV A-B $ 1,120.00 U
DMQV C-B $ 100.00 F
DMV A-C $ 1,020.00 U
We know that Direct material price variance = AQ(AP-SP) = 1120
AQ = 1120/(AP-SP)
AQ = 1120/(1.80-1.00)
AQ = 1,400
SQ = 100 x 15 = 1500
For Large speed bump
AQ AP AQ SP SQ SP
6,400 $ 2.10 6,400 $ 1.80 7,200 $ 1.80
$ 13,440.00 $ 11,520.00 $ 12,960.00
A B C
DMPV A-B $ 1,920.00 U
DMQV C-B $ 1,440.00 F
DMV A-C $ 480.00 U
Using this equation , DMV = DMPV + DMQV
DMQV = DMV-DMPV
DMQV = 480-1920
DMQV = 1440 F
Direct material quantity variance = SP(SQ-AQ) = 1440
SQ-AQ = 1440/SP
1440/SP + AQ = SQ
1440/1.8 + 6400 = SQ
SQ = 7200
