Answer:
A
Explanation:
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.
Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Supply is more elastic in the long run than in the short run because the producer can make adjustments in the long run
Which of the following sentences apply correct number style?
a. More than $5,000,000.00 has been allocated to technology infrastructure upgrades.
b. Twenty-seven percent of our entry-level employees have majored in accounting.
c. Dan Yannotti, Director of Health Initiatives, turns 32 this year.
Answer:
The sentence that applies the correct number style is:
c. Dan Yannotti, Director of Health Initiatives, turns 32 this year.
Explanation:
Sentence A's number style should have been formatted like: "More than $5 million ..." Alternatively, it could be formatted as "Five Million Dollars."
Sentence B's number style should have been formatted like: "27% of our ...."
This leaves sentence C as the sentence that applies the correct number style.
The Wisconsin Lottery will pay a lottery winner a lump sum payment of $19,046,180 as the final payment of her winnings in four years. If the appropriate discount rate for the payment is 8.6% what is the present value of the payment?
a. $5,191,977.
b. $5,408,309.
c. $116,741.
d. $17,899,197.
e. $17,899,197.
Answer: $13,692,683.93
Explanation:
Present value = Amount / (1 + rate) ^ number of periods
= 19,046,180 / (1 + 8.6%)⁴
= $13,692,683.93
Options are most probably for a variant of this question.
Question 2
A demand curve reflects each of the following except the
a. highest price buyers are willing to pay for each quantity.
b.quantity that each buyer will ultimately purchase.
c. value each buyer in the market places on the good.
d. willingness to pay of all buyers in the market.
Moving to another question will save this response.
Answer:
d. willingness to pay of all buyers in the market.
Explanation:
The demand curve shows the relationship between the price of a good or service and the quantity demanded at a particular time.
Therefore, a demand curve reflects:
a. highest price buyers are willing to pay for each quantity.
b.quantity that each buyer will ultimately purchase.
c. value each buyer in the market places on the good.
With this in mind, what the demand curve does not reflect, with these in mind is a willingness to pay of all buyers in the market.
Discount Mart utilizes the allowance method of accounting for uncollectible receivables.
On December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,280 outstanding accounts receivable. Due to Thomas's failing health, he is closing his company and is expecting to make no further payments to Discount Mart.
Journalize this transaction. If an amount box does not require an entry, leave it blank.
Answer: See explanation
Explanation:
From the question, we are given the information that on December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,280 outstanding accounts receivable, then the journal entry based on the above will be:
December 12:
Debit Cash $540
Debit Allowance for doubtful account $740
Credit Account receivable $1280
Note that the allowance for doubtful account was calculated as:
= Account receivable - Cash
= $1280 - $540
= $740
If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years. What is the net cost of the new equipment? g
Answer:
$315,000
Explanation:
The below is missing from the question, hence, my solution would be based on the original question and additional details below:
Old Equipment New Equipment
Purchase price $225,000 $375,000
Accumulated depreciation $90,000 - 0 -
Annual operating costs $300,000 $240,000
The net cost of the equipment is the actual expenditure to the firm by acquiring the new equipment which is the cost of new equipment minus the amount receivable from selling the old equipment
net cost of new equipment=$375,000-$60,000
net cost of new equipment=$315,000
Gelbart Company manufactures gas grills. Fixed costs amount to $32,510,400 per year. Variable costs per gas grill are $520, and the average price per gas grill is $1,300. Required: 1. How many gas grills must Gelbart Company sell to break even
Answer:
the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills
Explanation:
The computation of the number of gas grills must Gelbart Company sell to break even is given below:
= Fixed cost ÷ contribution margin per unit
= $32,510,400 ÷ ($1,300 - $520)
= $32,510,400 ÷ $780
= 41,680 gas grills
Hence, the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,510 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,185 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,330. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%
Answer:
$2,116
Explanation:
The computation is shown below:
Option 1 - Leasing
= 3510 + ( 3510 ÷ 1.2 ) + ( 3510 ÷ 1.2 ^ 2 )
= 8872.5
Now
Option 2 - Buying
Given that
Initial Cost - 5185
PV of salvage value = 1330 ÷ 1.2 ^ 3
= 769.68
So,
Cost = 5185 - 769.68
= 4457.176
Now the payment should be
= 4457.176 × 0.47473 (PV annuity factory for 20% at 3 years)
= $2,115.955
= $2,116
Next year's earnings are estimated to be $2. The company plans to reinvest 20% of its earnings at 15%. If the cost of equity is 8%, what is the present value of growth opportunities
Answer: $15.33
Explanation:
Present value of growth opportunities = Value of company with growth - Value of company without growth
Value of company with growth:
Using Gordon Growth:
Growth rate = Reinvestment rate * Earnings reinvested
= 20% * 15%
= 3%
Value with growth = ( Earnings * Dividend payout ratio) / (Cost of equity - growth rate)
= (2 * (1 - 20%) ) / (8% - 3%)
= $32.00
Value without growth:
= Earnings / Cost of equity
= 2 / 12%
= $16.67
Present value of growth opportunities = 32 - 16.67
= $15.33
The preferred stock of a company pays a $2.75 quarterly dividends. If the preferred stockholders' required return is 7.25% for these shares, what price should the preferred stock sell for?
82.35
151.72
92.31
114.29
167.74
Answer:
$151.72
Explanation:
Quarterly dividends of preferred stock = $2.75
Annual dividend of preferred stock = 4 * Quarterly dividend
Annual dividend of preferred stock = 4 * $2.75
Annual dividend of preferred stock = $11
Required return = 7.25% = 0.0725
Return = Dividend / Current price
0.0725 = $11 / Current price
Current price = $11 / 0.0725
Current price = 151.724138
Current price = $151.72
So, the preferred stock should sell for $151.72.
A company issued 7%, 15-year bonds with a par value of $510,000 that pay interest semiannually. The market rate on the date of issuance was 7%. The journal entry to record each semiannual interest payment is: ________
a) Debit Bond Interest Expense $17,850, credit Cash $17,850
b) Debit Bond Interest Expense $35,700: credit Cash $35,700
c) Debit Bond Interest Payable $34,000, credit Cash $34,000.
Answer: A. Debit Bond Interest Expense $17,850, credit Cash $17,850
Explanation:
Since the company issued 7%, 15-year bonds with a par value of $510,000 that pay interest semiannually with a market rate of 7%, then the journal entry to record each semiannual interest payment will be:
Debit Bond Interest Expense $17,850
Credit Cash $17,850
(To record semi annual interest payment)
Note that bond interest expense was calculated as:
= $510,000 × 7% × 6/12
= $510,000 × 0.07 × 0.5
= $17850
Kingbird, Inc. purchased a piece of equipment for $72,200. It estimated a 8-year life and a $3,400 salvage value. At the end of year four (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $7,200.
Compute the revised depreciation assuming Kingbird uses the straight-line method.
Revised annual depreciation
$enter the revised annual depreciation in dollars
Depreciation Expense 3,060
Accumulated Depreciation 3,060
72,200-3,400=68,800/8yr=8,600*4yrs=34,400-72,200=37,800
37,800-7,200=30,600/10yr=3,060 annual depreciation
72,200-3,400=68,800/8yr
=8,600*4yrs
=34,400-72,200=37,800
37,800-7,200=30,600/10yr
=3,060 annual depreciation
Therefore, the Depreciation Expense of 3,060.
What is depreciation?Depreciation is a term used in accounting to describe two different aspects of the same idea: first, the actual decline in an asset's fair value as it is used and worn, such as the annual decline in value of factory equipment, and second, the allocation in accounting statements of the asset's original cost to the periods in which the asset is used (depreciation with the matching principle).
Depreciation is the process of reallocating, or "writing down," the cost of a physical item (such as equipment) over the course of that asset's useful life. It also refers to the decline in asset value. Long-term assets are depreciated by businesses for accounting and tax reasons. A company's or entity's balance sheet is impacted by the asset's decline in value, and the income statement they report is impacted by the process of depreciation from an accounting standpoint.
Learn more about depreciation here:
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Two years ago Sam bought a newly issued three-year US government bond (a risk-free asset) with a principle of $1000 and a 5% coupon rate. This year, one year before maturity, Sam decides to sell the bond and sees that the price people are willing to pay for his bond is now $1019.
Required:
a. Has the interest rate gone up or down since Sam purchased the bond?
b. What is the the current interest rate for bonds when Sam decides to sell?
Answer and Explanation:
In the case when sam purchased the bond, the rate of interest on the bond is
= 50 ÷ 1000
= 5%
Now, after the change in price, the interest rate is:
= 50 ÷ 1019
= 4.907%
a. So here the rate of interest is reduced or gone
b. And ,the current interest rate is 4.907%
so the same is to be considered and relevant
Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time extension on his past-due account receivable. The adjusting entry on December 31 for Lion Company would include a credit to:
Answer:
Interest Revenue for $37.50
Explanation:
The interest that has accrued on the note receivable from December 16 till December 31(for 15 days) needs to be recognized at the end of the year since the interest for those days has been earned.
Based on 30-day month counting, the interest that would be credited to interest revenue and debited to interest receivable on 31 December is computed thus:
interest receivable=$15000*6%*15/360
interest receivable=$37.50
You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end of the sixth year if you make the first deposit today?
Answer:
At the end of the sixth year, you will have:
= $8,487.17.
Explanation:
a) Data and Calculations:
Annual savings = $1,000
Interest rate per year = 10%
Period of savings = 6 years
First deposit = today
From an online financial calculator:
N (# of periods) 6
I/Y (Interest per year) 10
PV (Present Value) 0
PMT (Periodic Payment) 1000
Results
FV = $8,487.17
Sum of all periodic payments $6,000.00
Total Interest $2,487.17
A company had inventory on November 1, of 5 units at a cost of $24 each. On November 2, they purchased 14 units at $26 each. On November 6 they purchased 10 units at $29 each. On November 8, 11 units were sold for $59 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?
a) $460
b) $471
c) $482
d) $472
e) $458
Answer:
e
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
If 11 inventories were sold, the inventory left would consist of 13 units purchased on the 2nd and 5 units the company had on the 1st
Inventory value = (13x 26) + (5 x 24) = 458
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income.
(a) Purchased $100 of supplies for cash.
(b) Recorded an adjusting entry to record use of $20 of the above supplies.
(c) Made sales of $1,200, all on account.
(d) Received $800 from customers in payment of their accounts.
(e) Purchased equipment for cash, $2,500.
Answer:
(a) Cash reduction, no effect on net income
(b) Net income reduction, no effect on cash
(c) Net income increment, no effect on cash
(d) Cash increase, no effect on net income
(e) Cash reduction, no effect on net income
Explanation:
When items or services are exchanged for cash, these may be recognized as assets or expenses. While expenses reduce income, assets do not as it forms the exchange of one asset (cash) for another.
Considering the transactions in light of the above,
a) Purchased $100 of supplies for cash - Supplies are inventory (an asset) and would not reduce net income until it is used up
(b) Recorded an adjusting entry to record use of $20 of the above supplies. No effect on cash, entry is a reduction in supplies and recognition of cost of goods sold. As such net income reduces.
(c) Made sales of $1,200, all on account. - Sales on account are credit sales. This will be recognized as a credit to sales (increase in net income) and a debit to accounts receivable.
(d) Received $800 from customers in payment of their accounts. - To recognize this, we debit cash (increase in cash) and debit accounts receivable. This has no effect on net income.
(e) Purchased equipment for cash, $2,500 - Again, this is he exchange of cash for an asset. This has no effect on income.
Explain how an employee stock ownership plan (ESOP) can be used to fund the sale of a company to employees. Research and explain the process that enabled the employees to be the majority owners of Publix Super Markets to enrich the discussion about employee stock ownership plans.
Answer:look just bee the boss
Explanation:cause thats all ik
A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals:
Cash$40,000
Current liabilities$75,000
Accounts receivable 55,000
Long-term liabilities 35,000
Inventory 60,000
Common stock 100,000
Equipment 145,000
Retained earnings 90,000
Total assets$300,000
Total liabilities and equity$300,000
Answer: 1.27
Explanation:
The acid test ratio of a company measure how well a company would be able to pay off its current liabilities using its most liquid current assets (current assets less inventory).
= (Cash + Accounts Receivable) / Current liabilities
= (40,000 + 55,000) / 75,000
= 95,000 / 75,000
= 1.27
Carpenter Inc. had a balance of $89,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $454,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.9 million. What was the balance in the warranty liability account as of December 31, 2021
Answer:
$44
Explanation:
Calculation to determine what
was the balance in the warranty liability account as of December 31, 2021
Warranty liability account as of December 31, 2021=(1%*89,000)+(40,900,000*.01)-(1%*$454,000)
Warranty liability account as of December 31, 2021=89+(40,900,000*.01)-454
Warranty liability account as of December 31, 2021=$44
Therefore the balance in the warranty liability account as of December 31, 2021 was $44
A convertible preferred stock is convertible at $10, pays a 4% annual dividend, is callable at $110, and is trading at a current market price of $116. Based on these details, what is the parity price of the common stock
Answer:
$11.60
Explanation:
In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price
The par value of the preferred stock=$100(since call price is $110)
convertible price=$10
conversion ratio=$100/$10=10
The parity price is the current market price of the preferred stock divided by the conversion ratio
Parity price=$116/10
Parity price=$11.60
20Y9
2018
Sales
$8,375,000 $7,078,500
Accounts receivable:
Beginning of year
630,000 580,000
End of year
620,000 630,000
a. Determine the accounts receivable turnover for 2049 and 2048. Round answers to one decimal place.
2048:
20Y9:
b. Determine the days' sales in receivables for 2049 and 20Y8. Use 365 days and round all calculations to one decimal place.
20Y8:
days
2019:
days
c. Are the changes in the accounts receivable turnover and days' sales in receivables from 2018 to 2049 favorable or unfavorable?
Answer:
20Y9 20Y8
a. Accounts receivable turnover = 13.4x 11.7x
b. Days' sales in receivable = 27.2 days 31.2 days
c. The changes in the accounts receivable turnover and days' sales in receivables from 20Y8 to 20Y9 are favorable.
Explanation:
a) Data and Calculations:
20Y9 20Y8
Sales $8,375,000 $7,078,500
Accounts receivable:
Beginning of year 630,000 580,000 $1,210,000
End of year 620,000 630,000 $1,250,000
Average accounts
receivable = $625,000 $605,000
($1,250,000/2) ($1,210,000/2)
a. Accounts receivable turnover = Sales/Average accounts receivable
= 13.4x 11.7x
= ($8,375,000/$625,000) ($7,078,500/$605,000)
b. Days' sales in receivable = 365/Accounts receivable turnover
= 27.2 days 31.2 days
= (365/13.4) (365/11.7)
c. The changes in the accounts receivable turnover and days' sales in receivables from 20Y8 to 20Y9 are favorable.
Suppose GDP consists of eggs and ham. In 2002, 100 dozen eggs are sold at $3 per dozen, and 50 pounds of ham are sold at $4 per pound. If in 2001, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound, nominal 2002 GDP is
Answer:
Nominal GDP = $500
Explanation:
Given the price of eggs in 2002 = $3
Quantity of eggs = 100 dozens
Price of ham in 2002 = $4
Quantity of ham = 50 pounds
Nominal GDP = Current year price x current year quantity
Nominal GDP = 100 x 3 + 50 x 4
Nominal GDP = 300 + 200
Nominal GDP = $500
Materials costs of $720000 and conversion costs of $800800 were charged to a processing department in the month of September. All materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 120000 units were started into production in September, and there were 8000 units in ending work in process that were 30% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September
Answer:
The total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September is:
= $1,456,000.
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Incurred during September $720,000 $800,800 $1,520,800
Equivalent units of production:
Units Materials Conversion
Started into production 120,000
Ending work in process 8,000 8,000 (100%) 2,400 (30%)
Completed and transferred out 112,000 112,000 (100%) 112,000 (100%)
Equivalent units 120,000 114,400
Total cost of production $720,000 $800,800
Equivalent units 120,000 114,400
Cost per equivalent units $6 $7
Cost assigned to:
Units completed and transferred out $672,000 $784,000 $1,456,000
Ending work in process 48,000 16,800 64,800
Total cost assigned & accounted for $720,000 $800,800 $1,520,800
Coachlight Inc. has a periodic inventory system. The company purchased 290 units of inventory at $18.00 per unit and 480 units at $19.00 per unit. What is the weighted average unit cost for these purchases of inventory? (Round your final answer to two decimal places.) a) $18.62 b) $19.00 c) $18.50 d) $18.00
Adophus, Inc.'s 2010 income statement reported total revenues of $850,000 and total expenses (including $40,000 depreciation) of $720,000. The 2010 balance sheet reported the following: accounts receivable beginning balance of $50,000 and ending balance of $40,000; accounts payable beginning balance of $22,000 and ending balance of $28,000. Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
Answer:
Adolphus, Inc.
Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
= $186,000.
Explanation:
a) Data and Calculations:
Total revenues = $850,000
Total expenses 720,000
Operating income $130,000
Depreciation = 40,000
Beginning Ending Changes
Accounts receivable $50,000 $40,000 -$10,000
Accounts payable $22,000 $28,000 +$6,000
Operating activities section of the Statement of Cash Flows, 2010:
Net income $130,000
Non-cash expenses:
Depreciation 40,000
Changes in working capital:
Accounts receivable 10,000
Accounts payable 6,000
Net cash inflow = $186,000
If the constructor function is a machine to create object instances, then the _____ is the blueprint for the objects that are created.
I think ( prototype)
If the constructor function is a machine to create object instances, then the prototype is the blueprint for the objects that are created.
LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividend and incurs 6.22% flotation costs. What is the cost of new preferred stock financing?
Answer:
the cost of new preferred stock financing is 10.66%
Explanation:
The computation of the cost of new preferred stock financing is given below:
= Annual dividend ÷ [ Price × (1 - flotation cost) ]
= $10 ÷ [ $100 × (1 - 0.0622) ]
= $10 ÷ $ 93.78
= 10.66%
Hence, the cost of new preferred stock financing is 10.66%
The same is to be considered and relevant
A construction company entered into a fixed-price contract to build an office building for $28 million. Construction costs incurred during the first year were $8 million and estimated costs to complete at the end of the year were $12 million.
How much revenue will appear in the company's income statement in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)
How much gross profit or loss will the company recognize in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)
Answer:
Total costs = Incurred costs + Estimated costs to complete
Total costs = $8 million + $12 million
Total costs = $20 million
a. How much revenue will appear in the company's income statement in the first year using the percentage-of-completion method?
Revenue to recognize = Incurred costs/Total costs * Contract price
Revenue to recognize = $8 million / $20 million * $28 million
Revenue to recognize = $11.2 million
b. How much gross profit or loss will the company recognize in the first year using the percentage-of-completion method?
Gross Profit to Recognized = Revenue recognized - Costs incurred
Gross Profit to Recognized = $11.2 million - $8 million
Gross Profit to Recognized = $3.2 million
5. If a company had $15,000 in net income for the year, and its sales were $300,000 for the same year, what is its profit margin
Answer:
5%
Explanation:
Net income is $15,000
Sales is $300,000
The profit margin can be calculated as follows
= 15,000/300,000
= 0.05×100
= 5%
Profit margin is 5%
The marketing manager would like to introduce sales sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $10.00 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $101,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. What should be the overall effect on the company's monthly net operating income of this change?
Fixed expenses are $1,055,000 per month. The company is currently selling 9,700 units per month.
Selling Price Per Unit $140 Percent of Sales 100%
Variable expense = 28.00 Percent of Sales 20%
Contribution Margin $112 Percent of Sales 80%
Answer:
34600
Explanation:
The calculation is given below:
Particulars Present Proposed
Sales 9700 × 140 = 1358000 10000 × 140 = 1400000
Variable cost 9700 × 28 = 271600 10000 × 38 = 380000
Contribution margin 1086400 1020000
Fixed cost 1055000 954000
Operating income 31400 66000
So, Overall net operating income increase by
= (66000-31400)
= 34600
