Answer:
Part a
Income from operations calculation
Sales revenue $327,980
Less Cost of goods sold ($148,580)
Gross Profit $179,400
Less Operating Expenses
Selling and administrative expenses ($52,100)
Income from operations $127,300
Part b
Net Income calculation
Income from operations $127,300
Non-Operating items
Gain on sale of plant assets $30,840
Unrealized gain on available-for-sale investments $9,370
Interest expense ($6,060) $34,150
Net Income $161,450
Part c
Comprehensive income calculation
Net Income (from continuing activities) $161,450
Less Loss on discontinued operations ($11,970)
Comprehensive income $149,480
Part d
Comprehensive income $149,480
Less Dividends declared and paid ($5,190)
Retained Earnings $144,290
Explanation:
Income from Operations = Sales less Operating Expenses
Net Income = Income from Operations add or less Non Operating items
Comprehensive Income = Income from Continuing Activities + Income from discontinued Activities
Retained Income = Comprehensive Income less Dividends declared and paid.
A.P. Hill Corporation uses a process-costing system. Products are manufactured in a series of three departments. The following data relate to Department Two for the month of February: Beginning work-in-process (70% complete) 10,000 units Goods started in production 80,000 units Ending work-in-process (60% complete) 5,000 units The beginning work-in-process was valued at $66,000, consisting of $20,000 of transferred-in costs, $30,000 of materials costs, and $16,000 of conversion costs. Materials are added at the beginning of the process; conversion costs are added evenly throughout the process. Costs added to production during February were Transferred-in $16,000 Materials used 88,000 Conversion costs 50,000 Question Assume that the company uses the first-in, first-out (FIFO) method of inventory valuation. Under FIFO, how much conversion cost did A.P. Hill transfer out of Department Two during February
Answer:
$64,360
Explanation:
Calculation for how much conversion cost did A.P. Hill transfer out of Department Two during February
First step is to calculate FIFO EUP for conversion
under the FIFO method
Beginning WIP 3,000
(10,000 units × 30%)
Started and completed 75,000
(80,000units-5,000 units=75,000 units)
(75,000 units × 100% )
Ending WIP 3,000
(5,000 units × 60% )
FIFO EUP for conversion 81,000
(3,000+75,000+3,000)
Now let calculate the conversion cost
Conversion cost =$16,000 + [3,000 Beginning WIP +75,000 Started and completed*($50,000/81,000)]
Conversion cost =[$16,000 + (78,000 × $.62)]
Conversion cost=[$16,000 + $48,360
conversion cost=$64,360
Therefore how much conversion cost did A.P. Hill transfer out of Department Two during February will be $64,360
Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Blossom Company ($000 omitted).
Administrative expense
Officers' salaries $5,488
Depreciation of office furniture and equipment 4,548
Cost of goods sold 61,158
Rent revenue 17,818
Selling expense Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068
Sales revenue 97,088
Income tax 9,658
Interest expense 2,448
Required:
a. Prepare income statement for the year 2014 using the mutiple-step form. Common shares outstanding for 2014 total 40,550 (000 omitted).
b. Prepare an income statement for the year 2014 using the single-step form.
Answer:
Part a
Blossom Company
Income statement for the year 2014 - multiple-step form
$000
Sales revenue 97,088
Less Cost of goods sold (61,158)
Gross Profit 35,930
Less Operating Expenses :
Administrative expense
Officers' salaries 5,488
Depreciation of office furniture and equipment 4,548 (10,036)
Selling expense :
Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068 (18,914)
Operating Income (Loss) 6,980
Less Non Operating Expenses :
Income tax 9,658
Interest expense 2,448 (12,106)
Net Income (Loss) (5,126)
Part b
Blossom Company
Income statement for the year 2014 - single-step form
$000
Sales revenue 97,088
Less Cost of goods sold (61,158)
Gross Profit 35,930
Less Expenses :
Officers' salaries 5,488
Depreciation of office furniture and equipment 4,548
Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068
Income tax 9,658
Interest expense 2,448 (41,056)
Net Income (Loss) (5,126)
Explanation:
The multiple-step form shows the Operating Income and Net Income separately by grouping expenses as either operating and non-operating expenses.
The single-step form shows all expenses under one category and no grouping of expenses as either operating or non-operating.
Which of the following statements is true based on what we know about the properties of utility? Group of answer choices Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas. Alexandra receives 20 utility from drinking one soda, and Ally receives 20 utility from consuming one soda. They both receive the same level of satisfaction from consuming a soda. Natalie receives 20 utility from watching a movie while Andrew receives 30 utility from playing a video game. Therefore, Andrew enjoys video games more than Natalie enjoys movies. Ally receives 15 utility from consuming one pizza while Jason receives 25 utility from eating one pizza. Therefore, Jason enjoys pizzas more than Ally.
Answer:
Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas.
Explanation:
Utility is defined as the level of satisfaction that a consumer derives from consuming various products. It is subjective and is dependent on individual preferences.
So utility or level of satisfaction differs from one individual to the other.
For example 20 utility for Alexandra will be different for 20 utility from Jason as each person has a user defined measurement of utility.
The only option that conveys individual utility is - Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas.
Alexandra defines her own utility so her level of satisfaction can be compared when she consumes soda and pizza.
The other options compares utility between different individuals and this cannot be done objectively as each person defines his own utility.
On January 2, 2021, Farr Co. issued 10-year convertible bonds at 105. During 2021, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr's common stock was 50 percent above its par value. On January 2, 2021, cash proceeds from the issuance of the convertible bonds should be reported as:_______.
a. paid-in capital for the entire proceeds.
b. paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
c. a liability for the face amount of the bonds and paid-in capital for the premium over the face amount.
d. a liability for the entire proceeds.
Answer:
d. a liability for the entire proceeds.
Explanation:
In the case when the bonds would be converted into common stock and the market price of the common stock is 50% over its par value so the cash proceeds that arise from the issuance of the convertible bonds would be reported as the liability as the same would be credited to the liability account
Therefore the right option is d.
Concord Corporation had the following transactions during 2022: 1. Issued $190000 of par value common stock for cash. 2. Recorded and paid wages expense of $91200. 3. Acquired land by issuing common stock of par value $76000. 4. Declared and paid a cash dividend of $15200. 5. Sold a long-term investment (cost $4560) for cash of $4560. 6. Recorded cash sales of $608000. 7. Bought inventory for cash of $243200. 8. Acquired an investment in Zynga stock for cash of $31920. 9. Converted bonds payable to common stock in the amount of $760000. 10. Repaid a 6-year note payable in the amount of $334400. What is the net cash provided by financing activities
Answer:
The net cash provided by financing activities -$157,600.
Explanation:
Net cash provided by financing activities refers to the difference between the total cash inflows and total cash outflows from the financing activities section of the cash flow staement.
The net cash provided by financing activities can be calculated by preparing a partial cash flow statement as follows:
Concord Corporation
Net Cash Flow Statement (Partial)
As at December 31, 2022
Details Amount
Par value common stock issued for cash 190,000
Dividend declared and paid in cash (15,200)
6-year note payable repaid (334,400)
Net cash provided by financing activities (157,600)
Therefore, the net cash provided by financing activities -$157,600.
Alternatively, the net cash provided by financing activities can be calculated as follows:
Net cash provided by financing activities = Par value common stock issued for cash - Dividend declared and paid in cash - 6-year note payable repaid = $190,000 - $15,200 - $334,400 = -$157,600
Bettina Amman is a sales consultant. She travels all over the country selling her company’s products. Her total monthly expenses for June, July, and August were $4,356.01, $9,011.20, and $8,780.00. What was her average monthly expenditure?
a
$7,382.40
b
$22,147.21
c
$8,090.25
d
$6,565.00
Answer:
a. $7,382.40
Explanation:
With regards to the above,
Bettina Amman 's average monthly expenditure calculation is shown below;
= Total monthly expenses / Number of months
= $4,356.01 + $9,011.20 + $8,780 / 3
= $7,382.40
Therefore, Bettina Amman's average monthly expenditure is $7,382.40
Martha is a regional supervisor who earns a base salary of $34,400 per year plus a 1% commission on all service contracts that she sells to existing customers. The company pays salaries on a semi monthly basis and contract commissions on a quarterly basis. As of September 30, Martha had made $38,200 in contract sales for the third quarter. What will be her gross pay on her next pay date
Answer:
Martha gross pay on her next pay date is $1,815.33.
Explanation:
This can be calculated as follows:
Number of semi months in a year = 24
Semi monthly salary = Salary per year / Number of semi months in a year = $34,400 / 24 = $1,433.33
Commission from contract sales for the third quarter = Contract sales for the third quarter * Commission percentage = $38,200 * 1% = $382
Martha gross pay on her next pay date = Semi monthly salary + Commission from contract sales for the third quarter = $1,433.33 + $382 = $1,815.33
Therefore, Martha gross pay on her next pay date is $1,815.33.
Paul Martin had worked for 12 years for the department of transportation when he applied for a promotion to dispatcher. Martin scored 75 on an interview test. Betty Palmer, another candidate, scored 73 and got the job. Martin sued the county for reverse discrimination. The county said that both Martin and Palmer were qualified and that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county. The county pointed out that none of 238 skilled craft workers jobs in the county were help by women. Answer the questions below around this case.
a. What issue(s) must the court decide in the case (for example, racial harassment)?
b. If you were the judge, how would you rule? Explain.
c. Describe two ways to help ensure workforce planning and employment are compliant.
Answer:
a.)
The court has to hear the arguments from both side of the party , analyze the arguments that has imposed by the party on each other. And after analyzing, the court decide the judgement.
b.)
If I were the judge , then i would not consider the case under racial harassment .
Because the country has an argument that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county.
Also , we know others law that says about equal employment has to give to the person without any discrimination.
c.)
To lower down the illegal occupation activities , proper plan of the workspace is must.
Steps required for workspace planning -
1. Objective of Business
2. Current workforce
3. Workers Necessity
4. Gap Minimization
5. Action plan review.
Explanation:
As given,
Paul Martin had worked for 12 years for the department of transportation when he applied for a promotion to dispatcher.
Martin scored 75 on an interview test.
Betty Palmer, another candidate, scored 73 and got the job.
a.)
The court has to hear the arguments from both side of the party , analyze the arguments that has imposed by the party on each other. And after analyzing, the court decide the judgement.
b.)
If I were the judge , then i would not consider the case under racial harassment .
Because the country has an argument that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county.
Also , we know others law that says about equal employment has to give to the person without any discrimination.
c.)
To lower down the illegal occupation activities , proper plan of the workspace is must.
Steps required for workspace planning -
1. Objective of Business
2. Current workforce
3. Workers Necessity
4. Gap Minimization
5. Action plan review.
In 2016, Gruman uses the machine for 1,700 hours and produces 40,000 units. In 2017, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. Required: Compute the depreciation for 2016 and 2017 under each of the following methods:
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is not complete and lacks necessary data and requirements to solve. However, I have found a similar question on the internet and will be using its data to solve for this question. Furthermore, it has not given the name of methods, so I will be solving for two methods, which are:
1. Straight Line Method
2. Sum of the years depreciation Method.
Solution:
Data Missing:
Machine Price = $198,000
Service Life = 5 years or 10,000 hours
Production = 180,000 units
Residual Value = $18000
Now, the data is complete and can be solved for the above mentioned methods of depreciation.
1. Straight Line Method:
As we know,
Asset Cost = $198,000
Residual Value = $18000
Life in Years = 5
Depreciation:
Formula for Straight Line Depreciation is:
(Asset Cost - Residual Value)/life in years
Plugging in the values:
Depreciation = ($198,000 - $18000)/5
Depreciation = $180,000/5
Depreciation = 36000
It will be same for both the years 2016 and 2017 as well.
2. Sum of the years Depreciation Method:
For this, we need to have the depreciable asset value:
Depreciable Asset Value = (Asset Value - Residual Value)
Depreciable Asset Value = ($198,000 - $18000)
Depreciable Asset Value = $180,000
Sum of the years for 2016
Number of years for 2016 = 5
Sum = 5 + 4 + 3 + 2 + 1 = 15
Number of years for 2017 = 4
So, the formula for depreciation is:
(Number of years for 2016/Sum of Years) x depreciable Asset Value
(5/15) x 180,000 = 60,000
Similarly, for 2017
(Number of years for 2017/Sum of Years) x depreciable Asset Value
(4/15) x 180,000 = 48,000
Hence,
1. Straight Line Method:
Depreciation for 2016 = 36000
Depreciation for 2017 = 36000
2. Sum of the years Depreciation Method:
Depreciation for 2016 = 60,000
Depreciation for 2017 = 48,000
Slapshot Company makes ice hockey sticks. During the month of June, 1,900 sticks were completed at a cost of goods manufactured of $437,000. Suppose that on June 1, Slapshot had 350 units in finished goods inventory costing $80,000 and on June 30, 370 units in finished goods inventory costing $84,000.
1. Prepare a cost of goods sold statement for the month of June.
Slapshot Company
Cost of Goods Sold Statement
For the Month of June
*Cost of goods sold
*Cost of goods Inventory, June 1
*Finished goods inventory June 30
*Work In process, June 1
___*___ $_____
___*___ _____
___*__ _____
__*____ $_____
2. Calculate the number of sticks that were sold during June.
units
Answer:
1. Cost of goods sold statement
Cost of goods sold Inventory, June 1 $80,000
Add: Cost of goods manufactured $437,000
Cost of goods available for sale $517,000
Less: Cost of goods sold Inventory, June 31 $84,000
Cost of goods sold $433,000
2. Number of sticks sold during June
Units on June 1 350
Add: Manufactured in June 1,900
Sticks available for sale 2,250
Less: Ending units June 30 370
Number of sticks sold 1,880
Project1 costs, Year 1 through Year 4: $100,000; $100,000;$100,000;$100,000 Project1 revenue, Year 1 through Year 4: $0; $5,000;$50,000;$110,000 Calculate ROI for Project1, using a 7 percent discount rate. Discount factor, Year 1 through Year 4: 0.93; 0.87; 0.82; 0.76 Fill in the following blanks - just type the numbers without labels, dollar signs, commas, etc.
Answer and Explanation:
Without discounting :
Return on investment(ROI) for year 1 = -$100000
Return on investment(ROI) for year 2 = -$95000
Return on investment(ROI) for year 3 =-$50000
Return on investment(ROI) for year 4 =$10000
With discounting(PV/(1+r)^n):
Return on investment for year 1 = 0.93×-$100000= -$93000
Return on investment for year 2= 0.87×-$95000= -$82650
Return on investment for year 3 = 0.82×-$50000=-$41000
Return on investment for year 4=
0.76×$10000= $7600
Number of Employees 20 Average Salary per employee $ 30,000 Weeks per year 52 Minutes available per week 2,400 Practical capacity percentage 80 % If a company uses time-driven activity-based costing, what is the practical capacity of resources supplied in minutes
Answer:
1,996,800 minutes
Explanation:
Calculation for what is the practical capacity of resources supplied in minutes
Practical capacity of resources supplied =52 weeks × 2,400 minutes per week× 80% × 20 employees
Practical capacity of resources supplied= 1,996,800 minutes
Therefore the practical capacity of resources supplied in minutes is 1,996,800 minutes
Orientation responsibilities are normally shared between:
of 2
Select one:
a. the HR department and top management.
b. mid- and upper-level executives.
C. coworkers and line managers.
d. the HR department and the new employee's immediate manager.
Clear my choice
Answer:
d. the HR department and the new employee's immediate manager.
Explanation:
An "employee orientation" is part of a new employee's onboarding process, before he's trained. It often happens on the first day of employment. It allows the new employee to feel welcomed in the company, which will make him more successful in achieving his goal.
It is the role of the HR department and direct manager or immediate manager to conduct the orientation. It is the role of the HR to give the employee the company handbook and sign contracts. On the other hand, the immediate manager introduces the new employee to his colleagues and gives him a tour of the company's premise. Some immediate managers provide a welcome party.
Identify the accoun title.
1. A new company is formed and shareholders invest $12,000 cash.
2. A company purchases for $18,000 cash a new truck that has a list price of $21,000.
3. A company pays stockholders a $10,000 cash dividend.
4. A company purchases a piece of land for $50,000 cash. An appraiser suggests that the value of this land is $55,000.
5. A company declares dividends of $1,100 to the shareholders but does not pay them yet; the company will pay these dividends in 60 days.
6. A company has to pay monthly wages of $5,600 to its employees; the company will pay them in two weeks.
Answer:
1. On formation of new Company and receipt of cash of $ 12,000 from shareholders
Cash Dr $ 12,000
To Share capital Cr $ 12,000
2. On purchase of truck for $ 18,000
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)
3. On payment of dividend in cash
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. On purchase of land
Land A/c Dr $ 50,000
To cash Cr $ 50,000
( On purchase of land on payment of $ 50,000).
There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
On payment of dividend after 60 days
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. After each month wages will be due to its workers, then accounting entry will be recorded as under
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
After two weeks, on payment of wages, the accounting entry will be recorded as under
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
Explanation:
1. The shareholder that will be invested with the help of the cash:
Cash Dr $ 12,000
To Share capital Cr $ 12,000
What is an account title?The specific name given to an item inside of an accounting system is known as the account title.
2. The company purchased a truck this was with the help of the cash
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
3. Cash payment was made for the stockholders
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. The company was to make sure that there will be cash and profit for both
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
Next entry will be
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. monthly wages of $5,600
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
Next entry will be:
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
Learn more about account title, Here:
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someone please help i have to turn this in tonight.
Outline the process the raw ingredients for a single flavor of ice cream might undergo to get to a local grocery’s freezer case.
Answer:blending of the mix ingredients.
pasteurization.
homogenization.
aging the mix.
freezing.
packaging.
hardening.
Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities. Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. Paying higher wages tends to reduce the average experience level of a firm's workers.
Answer:
The answer is "Choice First and third"
Explanation:
Please find the complete question in the attached file.
The higher wages will improve the productivity of workers in various ways, that are salary with the number of workers exceeds the cost of labor, in the fewer countries. It can be associated with both the poor diet and over-market wages in these environments can enable the workers of the company to remain fit and efficient. The fewer employees may decide to seek other employment opportunities when a business pays salaries just above the current market price. This elimination of employee sales will minimize company training costs because new employees need to be trained.
6. Despite multimillion-dollar investments, many IT organizations cannot respond quickly to evolving business needs. Also, they cannot adapt to large-scale shifts like mergers, sudden drops in sales, or new product introductions. Can cloud computing help organizations improve their responsiveness and get better control of their IT costs
Answer:
Yes
Explanation:
In a way Yes. Cloud Computing can allow an IT organization to quickly meet their current changing needs since they have access to all the necessary equipment and computing power by simply making a phone call. That is the main service of Cloud Computing organizations, they provide all the necessary hardware power to IT companies completely remotely. All the IT company would have to do is pay for the extra computing power that they need and they can get it immediately. This will allow them to immediately adapt to changes such as mergers, sudden drops in sales, or new product introductions.
Headland Inc. issued $4,130,000 of 11%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,548,750 of these bonds were converted into 24,000 shares of $21 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. (b) Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.
Answer:
A. Dr Interest Payable $75,717
Dr Interest expense $154,233
Cr Discount on Bonds payable $2,800
Cr Cash $227,150
B. Dr Bonds payable $1,548,750
Cr Discount on Bonds payable $28,350
Cr Common Stock$504,000
Cr Paid-in capital in excess of par- Common Stock $1,073,100
Explanation:
(a) Preparation of the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.
Dr Interest Payable $75,717
[($4,130,000*0.11)/2*(2/6)]
Dr Interest expense $154,233
[($4,130,000*.11)/2*(4/6) + $2,800]
Cr Discount on Bonds payable $2,800
($700*4)
Cr Cash $227,150
[ ( $4,130,000*.11)/2]
Calculation for the discount per month
First step is to calculate the remaining months
Months remaining= (10 years *12-2)
Months remaining=118 months
Second step is to calculate the Total discount
Total Discount=$4,130,000-($4,130,000*.98)
total discount=$4,130,000-$4,047,400
total discount=$82,600
Now let calculate the discount per month
Discount per month=($82,600/118)
Discount per month=$700
(b) Preparation of the entry to record the conversion on April 1, 2021
Dr Bonds payable $1,548,750
Cr Discount on Bonds payable $28,350
Cr Common Stock$504,000
(24,000*$21)
Cr Paid-in capital in excess of par- Common Stock $1,073,100
[$1,548,750+$28,350-($504,000)]
Calculation for Unamortized bond discount
Discount of the bonds $30,975
($82,600*(3/8))
Less Discount amortized ($2,625)
[($82,600/118)*10 years*(3/8)]
Unamortized bond discount $28,350
($30,975-$2,625)
Over the past decade, many American candy companies have opened factories in Mexico and Canada to produce candy. The companies, including Hershey Company, Brach's Confections, and Ferrara Pan, then ship candy back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages. Price floors (price supports) for the sugar industry encouraged American candy companies to move production out of the United States. Describe how the enactment of a sugar price floor impacted the market for candy in the United States, resulting in the movement of manufacturing.
Answer:
The sugar industry in the US is very powerful and has been able to establish trade barriers and import quotas that affect domestic prices. Sugar prices in the US are extremely high compared to prices in any other country, including Canada, Mexico, China, European nation, i.e. American sugar is the most expensive in the world.
Besides imposing trade barriers, the government also imposes a binding price floor. Binding price floors always result in deadweight losses since the quantity demanded is lower than equilibrium. This is why American candy manufacturers move their production overseas. the highest cost in the candy industry is actually sugar, and wherever they decide to relocate their factories it will always be cheaper.
Hours of labor or number of workers are common ways of measuring a company’s...
Answer:
productivity
Explanation:
The "productivity" of employees in a company is essential because it affects the company's profit. In order to measure or calculate the individual employee's productivity, you have to consider the hours of labor and the number of workers.
You have to divide the total output to the hours of labor in order to get the amount that your company is generating per hour of work.You have to divide the total output to the number of workers in order to get the the amount that every employee produced for your company per week.Michael won the Powerball jackpot of 57 million dollars. He has two options to collect the cash: (a) 30-year annuities (first payment one year from today) which future value equates the jackpot amount given that the prevailing interest rate is 8% per year; (b) a single payment now, corresponding to the present value of those 30-year annuities. Michael has big plans, hence he prefers option (b). Assuming that there are no taxes, how much money will he be able to collect now
Answer:
$5,664,627.53
Explanation:
future value of the annuity = $57 million
interest rate = 8%
number of periods = 30
FV annuity factor, 8%, 30 periods = 113.283
annual payment = future value / FV annuity factor= $57,000,000 / 113.283 = $503,164.64
the present value of an annuity = annual payments x PV annuity factor
PV annuity factor, 30 periods, 8% = 11.258
present value of the annuity = $503,164.64 x 11.258 = $5,664,627.53
Mackenzie wants to purchase a new sofa for $900. Her brother tells her that if she can come up with 75% of the purchase price, he will lend her the rest of the amount. If Mackenzie produces the required amount, what will be the amount of the loan she receives from her brother?
Answer:
$225
Explanation:
The cost of the new sofa is $900.
Mackenzie need to raise 75% of the cost price.
Her brother will lend her the balance, which is equivalent to 75% of the cost price.
Mackenzie needs to raise
= 75% of 900
=75/100 x 900
=$675
Her brother will lend her
= $900 - $675
=$225
Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause Group of answer choices net income to be overstated. an understatement of assets and an understatement of revenues. an understatement of revenues and an understatement of liabilities. an understatement of revenues and an overstatement of liabilities.
Answer:
an understatement of assets and an understatement of revenues.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). Examples of financial statements includes Balance sheet, cash-flow and income statement.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Hence, failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause an understatement of assets and an understatement of revenues.
Suppose the statutory incidence were instead on the consumers. Calculate the new equilibrium price and quantity in the market. In that case, the dollar portion of the $0.75/drink tax that is borne by consumers is $ . The dollar portion of the $0.75/drink that that is borne by producers is $ .
Answer:
The new equilibrium price is $6.43 and the quantity is 374.28
The tax borne by consumers is 0.72
The tax borne by producers is 0.03
Explanation:
The old equilibrium price of the bubble tea was $5.71 while the new price of the bubble tea is $6.43. The new price includes the tax effect which is paid by the consumers. The difference in the two equilibrium prices is the tax which is borne by consumers.
For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once. To record receipt of unearned revenue. To record this period's earning of prior unearned revenue. To record payment of an accrued expense. To record receipt of an accrued revenue. To record an accrued expense. To record an accrued revenue. To record this period's use of a prepaid expense. To record payment of a prepaid expense. To record this period's depreciation expense.
Question Completion:
For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record receipt of unearned revenue
B. To record this period's earning of prior unearned revenue
C. To record payment of an accrued expense
D. To record receipt of an accrued revenue
E. To record an accrued expense
F. To record an accrued revenue
G. To record this period's use of a prepaid expense
H. To record payment of a prepaid expense
I To record this period's depreciation expense
Journal Entries
Insurance Expense 1,900
Prepaid Insurance 1,900
Salaries Payable 3,900
Cash 3,900
Prepaid Rent 3,200
Cash 3,200
Salaries Expense 4,900
Salaries Payable 4,900
Interest Receivable 1,900
Interest Revenue 1,900
Cash 3,900
Accounts Receivable (from consulting) 3,900
Cash 5,900
Unearned Professional Fees 5,900
Cash 4,300
Interest Receivable 4,300
Rent Expense 8,000
Prepaid Rent 8,000
Interest Expense 6,300
Interest Payable 6,300
Depreciation Expense 1,300
Accumulated Depreciation 1,300
Unearned Professional Fees 1,900
Professional Fees Earned 1,900
Answer:
Journal Entries with appropriate descriptions:
Insurance Expense 1,900
Prepaid Insurance 1,900
G. To record this period's use of a prepaid expense
Salaries Payable 3,900
Cash 3,900
C. To record payment of an accrued expense
Prepaid Rent 3,200
Cash 3,200
H. To record payment of a prepaid expense
Salaries Expense 4,900
Salaries Payable 4,900
E. To record an accrued expense
Interest Receivable 1,900
Interest Revenue 1,900
F. To record an accrued revenue
Cash 3,900
Accounts Receivable (from consulting) 3,900
D. To record receipt of an accrued revenue
Cash 5,900
Unearned Professional Fees 5,900
A. To record receipt of unearned revenue
Cash 4,300
Interest Receivable 4,300
D. To record receipt of an accrued revenue
Rent Expense 8,000
Prepaid Rent 8,000
G. To record this period's use of a prepaid expense
Interest Expense 6,300
Interest Payable 6,300
E. To record an accrued expense
Depreciation Expense 1,300
Accumulated Depreciation 1,300
I To record this period's depreciation expense
Unearned Professional Fees 1,900
Professional Fees Earned 1,900
B. To record this period's earning of prior unearned revenue
Explanation:
Journal entries are usually recorded to adjust revenue and expenses to the accrual basis of accounting and to match expenses to the period's revenue and vice versa. Short narrations are provided after recording each transaction. The purpose is to provide some descriptions of the transaction so that it can be understood by another person reviewing the records.
Describe what will happen to total revenue in the following situations: 1. Price decreases and demand is elastic 2. Price decreases and demand is inelastic 3. Price increases and demand is elastic 4. Price increases and demand is inelastic 5. Price increases and demand is unitary elastic 6. Price decreases and demand is perfectly inelastic 7. Price increases and demand is perfectly elastic
Answer:
Total revenue increases
If prices are reduced, demand would increase more than the fall in price and total revenue would increase.
2. Total revenue falls. If price is reduced, there would be little or no change in quantity demanded and as a result total revenue would fall.
3. Total revenue falls. If prices are increased, demand would fall more than the rise in price and total revenue would fall.
4, Total revenue increases. If demand is inelastic and prices are increased, the rise in price would be greater than the fall in demand. As a result, total revenue increases
5. no change in total revenue . a increase in price leads to an equal change in quantity demanded and there would be no change in total revenue
6. fall. If prices decreases, there would be no change in quantity demanded and total revenue would fall
7. total revenue falls to zero. If prices are increased, demand would fall to zero and total revenue would fall
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. If prices are reduced, demand would increase more than the fall in price and total revenue would increase. If prices are increased, demand would fall more than the rise in price and total revenue would fall.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one. If price is increased, there would be little or no change in quantity demanded and total revenue would increase. If price is reduced, total revenue would fall.
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded. If price increases, there would be an equal change in quantity demanded, total revenue would remain the same
Answer:
a. The overall income will drop.
b. The overall income will drop.
c. The overall income will drop.
d. The overall income will rise.
e. The overall income will not change.
f. The overall income will not change.
g. The overall income will not change.
Explanation:
a. If there is an elastic demand for the product and the price goes down, the overall revenue will go down. This is due to the fact that when there is a decrease in price, there is a rise in the amount that is desired. This is due to the fact that customers are sensitive to changes in price and will begin purchasing a greater quantity of the item or service after the price has dropped. Yet, because of the drop in price, there will be a reduction in the overall income that is generated from the sale of the product or service. This is due to the fact that the increase in quantity will not be sufficient to compensate for the reduction in cost that will result from the sale.
b. If there is no change in the level of demand, but the price is decreased, total revenue will likewise go down. This is due to the fact that if there is a fall in price, there will be an increase in the amount that is desired. Unfortunately, the increase in quantity will not be sufficient to compensate for the reduction in price, which will result in a lower overall income. This is due to the fact that the increase in supply will not be sufficient to compensate for the reduction in cost.
c. If there is no significant change in demand, then higher prices will not significantly affect overall income. This is due to the fact that as the price goes up, the amount of the good that is desired will go down. This is due to the fact that customers are sensitive to changes in price and will begin purchasing less of the item or service as the price rises. Even if the rise in price is more than the reduction in quantity desired, the overall income will still fall because of the lower amount of the good or service that is being purchased.
d. If there is no change in the level of demand, a rise in price will lead to an increase in total income. This is due to the fact that if the price goes higher, the quantity needed will go down, but not by an amount that is sufficient to compensate for the price going up. As a consequence, there will be an increase in total income as a direct consequence of the price rise.
e. if the demand is unitary elastic and the price goes up, the overall revenue won't change but it will stay the same. This is due to the fact that whenever there is a rise in price, there is a corresponding fall in the number of goods that are desired. As a consequence, there will be no change in overall income as a result of the rise in price since it will be balanced out by the drop in quantity.
f. If there is no change in the level of demand, regardless of whether the price goes up or down, overall revenue will stay the same. This is due to the fact that even if prices go down, consumers will still want the same amount of the good or service. Thus, there will be no change in overall income as a consequence of the fall in price since this will be balanced out by the demand for the same amount.
g. If there is no change in demand despite a rise in price, businesses will get the same amount of revenue overall. This is due to the fact that once the price is raised, customers will no longer purchase any of the product or service. Because of this, there will be no change in overall income as a consequence of the rise in price since there will be no change in the amount that is required.
Reading the newspaper this morning, you found an article that mentions a woman named Nada who used to live down the street from you. Nada was recently hired by the First State Bank to assist in the evaluation and forecasting of future financial and economic conditions in the communities served by the bank. In which area of finance does Nada work
Answer:
the options are missing:
Financial services
Financial markets and institutions
Managerial finance
Investments
the answer is Financial services.
Explanation:
Financial markets and institutions deals with stock and bond markets, it doesn't include evaluation of local markets.
Managerial finance deals with financial data analysis, and has nothing to do with Nada.
Investments generally deals with large clients, so neighborhood or community analysis doesn't fit very well either
Financial services includes serving smaller clients, e.g. opening checking accounts, mortgages, etc.
A risk management program must be implemented and periodically monitored to be effective. This step requires the preparation of a risk management policy statement. The cooperation of other departments is also necessary. a. What benefits can the firm expect to receive from a well-prepared risk management policy statement
Answer: The ability to see risks that are not predicted and accessing funds from financial institutions
Explanation:
Here are some of the benefits of well-prepared risk management policy statement;
1) The ability to see risks that are not expected; a team of experts would be engaged to identify and give an overview of all forms of risk that could be possibly involved.
2) The organization attracts credit easily; Organisations attract credit from financial institutions when they are able to provide assessments that they carried out regarding risks. This gives the client's confidence that they can entrust their finance to the organization due to the firm have considered all forms of pending failures and that which would occur.
The amount of joint costs allocated to product DBB-1 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar): $2,213,640. $939,240. $216,870. $757,800. $447,120.
Answer:
$2,213,640
Explanation:
Calculation for the amount of joint costs allocated to product DBB-1 using the sales value at split-off method
First step is to calculate the total amount
DBB-1= 16,000 units *$25
DBB-1= 400,000
DBB-2= 24,000 units *$35
DBB-2= 840,000
DBB-2= 36,000 units *$55
DBB-2= 1,980,000
Total =3,220,000
(400,000+840,000+1,980,000)
Second step is to calculate the Weight for DBB-3
Weight for DBB-3= 1,980,000 / 3,220,000 Weight for DBB-3=61.49%
Now let calculate the Joint cost for DBB-3
Joint cost for DBB-3=$36,00,000*61.49%
Joint cost for DBB-3=$2,213,640
Therefore The amount of joint costs allocated to product DBB-1 using the sales value at split-off method is $2,213,640
ABC Services reported the following transactions for September, 2013. A) The owner opened the business with a capital contribution of $23,500 cash. It was credited to Capital. B) The business purchased office equipment for $11,500. The business paid $2,500 cash down and put the balance on a note payable. C) The business paid insurance expense of $1,350 cash. D) The business paid a utility bill for $980 cash. E. The business paid $2,000 cash for September rent. F. The business had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales. G. The business paid $9,700 cash for office furniture. What are the total liabilities at the end of September, 2013
Answer:
ABC Services
The total liabilities at the end of September, 2013
= $9,000
Explanation:
a) Data and Calculations:
Capital contribution = $23,500
Equipment = $11,500
Cash payment for equipment = $2,500
Note payable on equipment = $9,000
Insurance expense paid = $1,350
Utility expense paid = $980
Rent paid = $2,000
Sales = $12,000
Cash Sales = $7,200 (60% of $12,000)
Credit Sales = $4,800 (40% of $12,000)
Office furniture paid = $9,700
Therefore, total liabilities at the end of September, 2013 = $9,000. This represents the note payable for the office equipment purchased in B.
