Answer: D. shifts the aggregate supply curve to the right.
Explanation:
Supply side economics refers to the macroeconomic theory which states that the economic growth in an economy can be improved by the reduction in taxes and decrease in regulations.
Such Economists believe that this is vital as the consumers will benefit as there'll be an increase in the supply of goods from the manufacturers. Also, there'll be reduction in prices due to less taxes being paid. Also, there'll be an increase in employment.
n Office Manager uses a Periodic Review Inventory System: they check the inventory in their Office Supply Closet once every 10 days, placing an order with their supplier depending on the inventory level of the office supplies. The manager has set a restocking level of 300 post it notes for their closet. This week, the manager has counted 140 post it notes in the closet. How many post it notes will the manager order from their supplier? In other words, what is the Order Quantity?
Answer: 160
Explanation:
The number of post it notes that the manager will order from their supplier will be the difference between the restocking level and the inventory at the time of review. This will be:
= Restocking level - Inventory at the time of review
= 300 - 140
= 160
Therefore, the order quantity is 160.
Botox Facial Care had earnings after taxes of $330,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $42.00. In 20X2, earnings after taxes increased to $386,000 with the same 200,000 shares outstanding. The stock price was $53.00. a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) c. Why did the P/E ratio change
Answer:
Botox Facial Care
20X1 20X2
a. Earnings per share $1.65 $1.93
b. P/E ratio 25.45x 27.46x
c. The P/E ratio changed from 25.45x to 27.46x following a change in earnings per share and the stock price per share.
Explanation:
a) Data and Calculations:
20X1 20X2
Earnings after taxes $330,000 $386,000
Outstanding shares 200,000 200,000
Earnings per share $1.65 $1.93
Stock price $42.00 $53.00
P/E ratio 25.45x 27.46x
Earnings per share = Earnings after taxes/Outstanding shares
P/E ratio = Stock price/Earnings per share
Calculate depreciation for year 2 based on the following information: Historical cost $40,000 Useful life 5 years Salvage value $3,000 Year 1 depreciation $7,400
Answer:
Depreciation for year 2 is also $7,400.
Explanation:
Assuming a straight line method of depreciation in which the depreciation is the same for each year, the annual depreciation can be calculated as follows:
Annual depreciation = (Historical cost - Salvage value) / Useful years = ($40,000 - $3,000) / 5 = $7.400
Since annual depreciation is $7,400, that implies that depreciation for year 2 is also $7,400.
Gantner Company had the following department information about physical units and percentage of completion: Ch21_Q64 If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May
Answer:
200,000 units
Explanation:
The computation of the total no of equivalent units for material during may month is given below:
Units added during May is
= 150,000 + 50,000
= 200,000 units.
Hence, the total no of equivalent units for material during may month is 200,000 units
The same should be considered and relevant
What is the nature of DENEL
Answer:
turn-key solutions of defence equipment
Answer:Denel SOC Ltd is a South African state-owned aerospace and military technology conglomerate established in 1992. It was created when the manufacturing subsidiaries of Armscor were split off in order for Armscor to become the procurement agency for South African Defence Force (SADF), now known as the South African National Defence Force (SANDF), and the manufacturing divisions were grouped together under Denel as divisions. The company had been experiencing major financial problems since 2015 and in 2021 it was announced in Parliament that Denel was on the brink of insolvency. The company stated that its woes were due to declining local defence budgets, weakened relationships with key customers and suppliers, the inability to retain or attract skilled personnel, ongoing salary disputes and a Fitch ratings downgrade.
The paradox of thrift accounts that both investors and consumers want to spend during a recession or depression, thereby increasing employment and enhancing the chances of recovery.A. TrueB. False
Answer: False
Explanation:
The Paradox of Thrift Accounts posits that having savings in a recession is bad because it would lead the economy to even worse levels of recession.
During recessions, people tend to save more and investors tend to invest less. Consumers do so because they hope the savings will enable them survive should something happen and investors don't want to lose money in recessions.
This Paradox argues that both investors and consumers who spend more so that employment will rise as well as production and pull the economy out of a recession.
Managerial accounting systems report both monetary and nonmonetary information. Examples of nonmonetary information include: Multiple select question. amount of sales per customer percentage of on-time deliveries. employee satisfaction data. employee diversity.
Answer: employee satisfaction data
Explanation:
Managerial accounting helps in the provision of vital information to internal managers. Managerial accounting is useful for making planning and control decisions.
Examples of nonmonetary information include the employee satisfaction data, quality of purchase decisions etc.
Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 15,500 units, 100% complete with respect to materials cost and 20% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $25,200. A total of 53,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.6 for materials and $3.3 for conversion costs. The total cost of the units completed and transferred out of the department was:
a. $259,700
b. $254,180
c. $189,740
d. $225,380
Answer:
a. $259,700
Explanation:
The computation of the total cost of the units completed and transferred out of the department is given below:
= 53,000 units × $1.6 + 53,000 un$its × $3.3
= $84,800 + $174,900
= $259,700
Hence, the total cost of the units completed and transferred out of the department is $259,700
If an economy has aggregate price levels that are increasing, but the wage rate stays the same because of downward wage stickiness, what would be the economic consequences
Answer:
Business would fire some employees as labor becomes too expensive and the quantity of real GDP supplied would decrease.
Explanation:
According to the sticky wage [tex]\text{theory}[/tex], when the stickiness enters a market, there is a change in [tex]\text{one direction}[/tex] which will be favored over a change in the other direction.
The [tex]\text{aggregate price level}[/tex] is the measure of overall level of the prices in an economy.
When the [tex]\text{aggregate price level}[/tex] increases, it results in inflation. In an economy, when the aggregate price level increases, and the wage rate remains the same due to the downward wage stickiness, it results in an economy which would fire some of the employees as the labor becomes very expensive and the quantity of the real GDP supplied would also decrease.
Your company is estimated to make dividends payments of $2.2 next year, $3.9 the year after, and $4.8 in the year after that. The dividends will then grow at a constant rate of 2% per year. If the discount rate is 9% then what is the current stock price?
Answer:
$63.01
Explanation:
The share price today is the present value of expected future cash flows which in this case are the expected future dividends and the terminal value of dividends beyond the 3rd year.
Year 1 dividend =$2.2
Year 2 dividend =$3.9
Year 3 dividend =$4.8
Terminal value=Year 3 dividend*(1+constant growth rate)/(required rate of return-constant growth rate)
constant growth rate=2%
the required rate of return=9%
Terminal value=$4.80*(1+2%)/(9%-2%)
Terminal value=$69.94
Present value of a future cash flow=cash flow/(1+required rate of return)^n
n is 1 for year 1 dividend, 2 for year 2 dividend , 3 for year 3 dividend, and terminal value(terminal value is stated in year 3 terms)
stock price=$2.2/(1+9%)^1+$3.9/(1+9%)^2+$4.8/(1+9%)^3+$69.94/(1+9%)^3
stock price=$63.01
QS 6-6 Petty cash accounting LO P2 1. Brooks Agency set up a petty cash fund for $150. At the end of the current period, the fund contained $28 and had the following receipts: entertainment, $70; postage, $30; and printing, $22. Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.
Answer and Explanation:
The journal entries are as follows:
1. Petty cash A/c Dr $150
To Cash A/c $150
(Being the establishment of petty cash is recorded)
2.
Entertainment expenses A/c Dr $70
Postage expense A/c Dr $30
Printing A/c Dr $22
To Petty cash A/c $122
(Being the reimbursement of petty cash fund is recorded)
Cute Camel Woodcraft Company is considering a one-year project that requires an initial investment of $500,000; however, in raising this capital, Cute Camel will incur an additional flotation cost of 6%. At the end of the year, the project is expected to produce a cash inflow of $700,000. The rate of return that Cute Camel expects to earn on the project after its flotation costs are taken into account is
Answer:
The correct answer is "32.076%".
Explanation:
Given:
Initial investment,
= $500,000
Cash inflows,
= $500,000
The floatation cost will be:
= [tex]500,000\times 6 \ percent[/tex]
= [tex]30,000[/tex] ($)
The total cost will be:
= [tex]Initial \ investment+Floatation \ cost[/tex]
= [tex]500000+30000[/tex]
= [tex]530000[/tex]
hence,
The rate of return will be:
= [tex]\frac{Inflows}{Cost} -1[/tex]
= [tex]\frac{700000}{530000} -1[/tex]
= [tex]\frac{700000-530000}{530000}[/tex]
= [tex]0.32076[/tex]
= [tex]32.076[/tex] (%)
View Policies Current Attempt in Progress In January, Dieker Company requisitions raw materials for production as follows: Job 1 $910, Job 2 $1,700, Job 3 $800, and general factory use $650. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31
Answer:
Dieker Company
Journal Entry:
Debit Work in Process $3,410
Debit Manufacturing overhead $650
Credit Raw materials $4,060
To record raw materials used for production.
Explanation:
a) Data and Calculations:
Job 1 $910
Job 2 $1,700
Job 3 $800 $3,410
General factory use $650
Total $4,060
Transaction Analysis:
Work in Process $3,410 Manufacturing overhead $650 Raw materials $4,060
b) While the summary journal entry is made in Work in Process, the detailed entries are made in Job 1, Job 2, and Job 3 cost sheets.
Paul’s Pizza Parlor bakes pizza pies according to Q = 3 L – 0.3 L 2. If labor costs $6 and pizza sells for $10, the optimal amount of labor is:
Answer: 4 units of labor
Explanation:
Optimum amount of labor occurs where marginal revenue equals marginal cost which means:
Marginal revenue product = Cost of labor
Marginal revenue product = Marginal product of labor * Prize of pizza
Marginal product of labor = differentiation of Q
= dQ/dL
= d(3L - 0.3L²)
= 3 - 0.6L
Marginal revenue product = (3 - 0.6L) * 10
= 30 - 6L
Marginal revenue product = Cost of labor
30 - 6L = 6
30 - 6 = 6L
L = 24/6
= 4 units of labor
A refiner produces heating fuel and gasoline from crude oil in virtually fixed proportions. What can you say about economies of scope for such a firm? What is the sign of its measure of economies of scope, SC?
Answer:
The cost benefits of simultaneous manufacturing do not exist and there are thus no economies as well as range disadvantages. A further explanation is provided below.
Explanation:
Scope savings are environmental impacts if a variety of commodities are produced collectively when producing these commodities collaboratively is far less costly than individually.Throughout this case, the manufacturer can create two items from the main resource although manufacturing takes place in some kind of a set proportion. Therefore includes the amount of production is identical to the expenditure of combined production of the products.Thus the above is the appropriate solution.
Kirkland sells season tickets for six events at a price of $48. For the 2013 season, 2,700 season tickets were sold.
Required:
a. Use the horizontal model to show the effect of the sale of the season tickets. (Enter decreases to account balances with a minus sign.)
b. Use the horizontal model (or write the journal entry) to show the effect of presenting an event.
c. Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?
Answer:
a. Assets = Liabilities + Stockholders' Equity = $129,600
b. Debit Unearned ticket revenue for $129,600, and Credit Total revenue for $129,600.
c. It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.
Explanation:
a. Use the horizontal model to show the effect of the sale of the season tickets. (Enter decreases to account balances with a minus sign.)
Note: See the attached excel file for the horizontal model showing the effect of the sale of the season tickets.
In the attached excel file, the following calculation is done:
Cash = Unearned ticket revenue = Price per season ticket * Number of season tickets sold = $48 * 2,700 = $129,600
Since Stockholders' Equity is equal to zero in the attached excel file, we have:
Assets = Liabilities + Stockholders' Equity = $129,600
b. Use the horizontal model (or write the journal entry) to show the effect of presenting an event.
The journal entry will look as follows:
General Journal Debit ($) Credit ($)
Unearned ticket revenue 129,600
Total revenue 129,600
(To record the effect of presenting an event.)
c. Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?
It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.
The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". As a result, the cemetery project will provide a net cash inflow of $57,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 7 percent per year forever. The project requires an initial investment of $759,000. The firm requires a 14 percent return on such undertakings. The company is somewhat unsure about the assumption of a 7 percent growth rate in its cash flows. At what constant rate of growth would the company just break even?
Answer: 6.49%
Explanation:
The constant rate of growth where the company would break even will be calculated thus:
Initial investment = Net cash inflow / (14% - g)
759000 = 57,000/(0.14 - g)
where g = growth rate
759000 = 57,000/(0.14 - g)
Cross multiply
759000(0.14 - g) = 57000
106260 - 759000g = 57000
759000g = 106260 - 57000
759000g = 49260
g = 49260/759000.
g = 0.0649
g = 6.49%
The growth rate that would lead the business to breakeven is 6.49%.
At breakeven, the growth rate would lead to the cash inflows from the project being just enough to pay back the initial investment put into the catering business.
This growth rate is calculated by the formula:
Growth rate = ( (Investment * return rate) * - First cash inflow) / Investment
= ( (759,000 * 14%) - 57,000) / 759,000
= 6.49%
The growth rate that would lead the business to breakeven is therefore 6.49%.
Find out more at https://brainly.com/question/13186160.
Front Company had net income of $82,500 based on variable costing. Beginning and ending inventories were 1,800 units and 3,200 units, respectively. Assume the fixed overhead per unit was $8.40 for both the beginning and ending inventory. What is net income under absorption costing
Answer:
$94,260.00
Explanation:
There is no doubt that the difference between net income under absorption costing and variable costing method lies in the treatment of fixed cost, under the former, each product is charged with fixed cost while total fixed cost is charged as a period cost under the latter.
In essence, the fixed cost on ending inventory would have been expensed and deducted in arriving at net income under variable cost, in other words, we simply add to net income under variable costing the fixed cost attributable to an increase in ending inventory
income=$82,500+(3200-1800)*$8.40
net income=$94,260.00
Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,080,000 Net operating income $ 3,108,960 Average operating assets $ 8,600,000 The company's minimum required rate of return 16 % The division's residual income is closest to:______
Answer:
1,732,960
Explanation:
The sales is $37,080,000
The net operating income is $3,108,960
The average operationg assets is $8,600,000
The required rate of return is 16%
The divisional residual income can be calculated as follows
= 3,108,960-(16/100×8,600,000)
= 3,108,960 - (0.16×8,600,000)
= 3,108,960-1,376,000
= 1,732,960
Hence the residual income is closest to $1,732,960
Selected accounts with amounts omitted are as follows: Work in Process Aug. 1 Balance 268,300 Aug. 31 Goods finished 168,800 31 Direct materials X 31 Direct labor 43,300 31 Factory overhead X Factory Overhead Aug. 1 – 31 Costs incurred 108,100 Aug. 1 Balance 12,100 31 Applied X If the balance of Work in Process on August 31 is $202,600, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs? a.$12,100 b.$12,990 c.$168,800 d.$108,100
Answer:
b.$12,990
Explanation:
Calculation to determine the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs
Using this formula
Overhead applied = Direct labor cost * Predetermined overhead rate
Let plug in the formula
Overhead applied= 43,300 * 30%
Overhead applied= $12,990
Therefore the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs is $12,990
Assume Plato merchandising business, which was established to purchase and sale of various products to customer. This company is a vat registered company and declares tax to the government. During the current month the business has purchased supplies for br.75, 250 Vat inclusive and sold various products for br.125, 250 before vat to customers and the business has two permanent employers to provide service to customers.
No Name of employers Basic salary Taxable allowance
1 Bulcha Deguna 5000 600
2 Solomon Adugna 6400 400
- Task 1.1 calculate the amount of direct tax for the month
- Task 1.2 determine the amount of indirect tax liability for the month
Task 1.3 list types of direct and indirect taxes
What is the internal rate of return of a project costing $3,000; having after-tax cash flows of $1,500 in each of the two years of its two-year life; and a salvage value of $800at the end of the second year in addition to the $1,500 cash flow?a) 13%.
b) 15%.
c) 16%.
d) 19%.
Cheese Mart LLC sells cheese to Pizza Palace for $1,500. Pizza Palace uses the cheese to make pizzas, selling them to consumers for a total of $9,000. These transactions contribute ________ to the gross domestic product (GDP).
Answer: $9000
Explanation:
The gross domestic product (GDP) is the final value of the goods that are produced in an economy. In this case, we are only interested in the final value which is the $9000.
It should be noted that when Cheese Mart LLC sells cheese to Pizza Palace for $1,500, this is an intermediate good and should not be counted when calculating the GDP.
This past year inflation in Snowdonia has increased to 150%. As an economic analyst, you are charged with identifying those sectors of the population worst affected by this inflation event. Which group of people is likely to be worst affected by inflation
Answer:
disabled veterans living on fixed (non-adjustable) government transfer payments
Explanation:
Here the group income should remains the fixed or same for the time period so at the time when the price of the goods rised up or the value of the money reduced so it would become hard for the inflation event
Therefore the group of people who deals in veterans i.e. disabled and lived on fixed government transfer payment should be worst impacted by the inflation
You are going to retire in 43 years. After retirement, you need $80,000 at the end of year for 25 years. How much do you have to save for your retirement every month
Answer:
Results are below.
Explanation:
I will assume an interest rate of 8% per year.
First, we need to calculate the amount required at the moment of retirement:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 80,000 * {(1/0.08) - 1/[0.08*(1.08^25)]}
PV= $853,982.1
Now, the monthly deposit required:
i= 0.08/12= 0.0067
n= 43*12= 516
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (853,982.1*0.0067) / [(1.0067^516) - 1]
A= $188.43
On May 7, Jernigan Company purchased on account 640 units of raw materials at $15 per unit. During May, raw materials were requisitioned for production as follows: 224 units for Job 200 at $13 per unit and 294 units for Job 305 at $15 per unit.
Required:
Journalize the entry on May 7
Answer:
Date Account Title Debit Credit
May 7 Materials $9,600
Accounts Payable $9,600
Working:
= Units purchased * cost per unit
= 640 * 15
= $9,600
As the goods were purchased on account, they will be sent to accounts payable. Materials are assets so they will be debited when acquired.
MacKenzie Company sold $780 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:________ a) Debit Accounts Receivable $780 and credit Sales $780. b) Debit Cash $768.30; debit Credit Card Expense $11.70 and credit Sales $780. c) Debit Cash of $780 and credit Sales $780. d) Debit Cash of $780 and credit Accounts Receivable $780 e) Debit Cash $768.30 and credit Sales $768.30
Answer:
b) Debit Cash $768.30; debit Credit Card Expense $11.70 and credit Sales $780.
Explanation:
Based on the information given the Appropriate journal entry to record this sale transaction would be:
Debit Cash $768.30
($780-$11.70)
Debit Credit Card Expense $11.70
(1.5%*$780)
Credit Sales $780
(To record sales)
Carmichael Inc. has a beginning balance in Accounts Receivable of $100,000 at June 1. On June 24, Carmichael sells $20,000 of merchandise to K. Low, terms 2/10, n/30. Assuming just this one transaction occurred, what is the ending balance in Accounts Receivable at June 30 under the gross method
Answer:
$120,000
Explanation:
Particulars Amount
Beginning balance in accounts receivables A/C $100,000
Add: Credit sales $20,000
Ending balance in accounts receivables A/C $120,000
Jon Brooks quit his job in a bicycle shop, where he earned $15,000 per year, to become a graduate student in economics. At the university he attended, he spent $2,000 on books, $1,000 on cough medicine, and earned $12,000 as an economics teaching-assistant. What were Jon's economic costs while attending college?a. $18,000.b. $15,000.c. $6,000.d. $3,000.
Answer: a. $18,000
Explanation:
Economic costs are the sum of opportunity costs and accounting costs incurred when the next best alternative is not followed.
In this case, the opportunity costs are the salary that Jon Brooks foregoes and the actual costs are the cost on books and cough medicine.
Economic costs will therefore be:
= 15,000 + 2,000 + 1,000
= $18,000
A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2 kg of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 18,000 kg and the cost per kg is $8. What is the budgeted materials need in kg. in the first quarter?
A) 90,000 kg.
B) 84,000 kg.
C) 108,000 kg.
D) 102,000 kg.
E) 120,000 kg.
Answer:
B) 84,000 kg.
Explanation:
The computation of the budgeted materials need in kg. in the first quarter is given below:
begnning inventory 18000
required for production (45000 × 2) 90000
Less: closing (30000 × 2 × 20%) - 12000
Raw material needs 84000
hence, the budgeted materials need in kg. in the first quarter is 84,000
Therefore the option b is correct
