Answer:
$22,789
Explanation:
One of the uses of the Bank Reconciliation Statement is to check the accuracy of the Cash Balance.
The Balance on the Bank Statement and that of the Cash Book in the Ledgers should always agree.
Bank Reconciliation Statement as a July 31
Balance as per Bank Statement $22,364
Add Lodgments not yet credited $1,745
Less unpresented checks ($1,320)
Balance as per Cash Book $22,789
Therefore,
The balance of cash using a bank reconciliation is $22,789
What’s the anti-money laundering (AML)
program ?
Answer: An anti-money laundering (AML) program is a set of procedures designed to guard against someone using the firm to facilitate money laundering or terrorist financing.
Explanation:
credit default swap definition.
Answer:
a financial contract whereby a buyer of corporate or sovereign debt in the form of bonds attempts to eliminate possible loss arising from default by the issuer of the bonds. This is achieved by the issuer of the bonds insuring the buyer’s potential losses as part of the agreement. if that makes sense.
Cornerstone Exercise 6-21 Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.
b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500.
d. On April 10, Mathis paid Reece the balance due.
Required: Prepare the journal entries to record these transactions on Reece's books. Assume that Reece uses the net method to record sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank. April 1 Accounts Receivable 3,038 Sales Revenue 3,038 (Recorded sale on account) April 1 Cost of Goods Sold 3,100 Inventory 3,100 x (Recorded cost of merchandise sold) April 8 Sales Revenue 3,100 Accounts Receivable 3,100 x (Recorded return of merchandise)
Answer:
April 1
Dr Accounts Receivable $3,100
Cr Sales $3,100
April 1
Dr Cost of Goods Sold $2,225
Cr Inventory $2,225
April 8
Dr Sales Returns and Allowances $800
Cr Accounts Receivable $800
April 8
Dr Inventory $500
Cr Cost of Goods Sold $500
April 10
Dr Cash $2,254
Cr Sales Discount $46
Cr Accounts Receivable $2,300
Explanation:
Preparation of the journal entries to record these transactions on Reece's books
April 1
Dr Accounts Receivable $3,100
Cr Sales $3,100
(Recorded sale on account)
April 1
Dr Cost of Goods Sold $2,225
Cr Inventory $2,225
(Recorded cost of merchandise sold)
April 8
Dr Sales Returns and Allowances $800
Cr Accounts Receivable $800
(Record return of merchandise)
April 8
Dr Inventory $500
Cr Cost of Goods Sold $500
(Recorded cost of merchandise returned)
April 10
Dr Cash $2,254
($2,300-$46)
Cr Sales Discount $46
($2,300*2%)
Cr Accounts Receivable $2,300
($3,100-$800)
(Received customer payment within)
name two considerations by the Minister of finance when setting up a budget
Answer:
1. Revenue
2. Expenditure
Explanation:
Given that a country's budget is a robust plan usually prepared by the government of the country under the watchful eye of the Minister of Finance which thereby is used in presenting the country's expected or predicted revenues and proposed expenditure for the subsequent financial year.
Hence, two considerations by the Minister of finance when setting up a budget are REVENUE and EXPENDITURE.
Demand for fasteners at W.W. Grainger is 20,000 boxes per month. Holding cost at Grainger is 20 percent per year. Each order incurs a fixed cost of $400. The supplier offers an all unit discount pricing scheme with a price of $5 per box for orders under 30,000 and a price of $4.90 for all orders of 30,000 or more. How many boxes should Grainger order per replenishment
Solution :
Given :
The annual demand, D = [tex]$200000 \times 12$[/tex]
= 240,000
The ordering cost, S = $ 400
Holding cost, H = 20 percent per year
The EOQ for each year,
[tex]$EOQ=\sqrt{\frac{2DS}{H}}$[/tex]
Under 30000, the cost = 5, Holding cost = 5 x 0.2 = 0
[tex]$EOQ=\sqrt{\frac{2\times 240000 \times 400}{1}}$[/tex]
= 13856.41
= 13856 (approx.)
It is feasible as it is not with in range of 30000 or more.
So calculating total cost at order quantity, Q = 13856 and 30000
Therefore total cost = purchase cost + annual ordering cost + annual holding cost.
[tex]$=(CD)+\frac{Q}{2}H+\frac{D}{Q}S$[/tex]
Q = 13856
Total cost = [tex]$(5\times 240000)+(\frac{240000}{13856})\times 400+(\frac{12856}{2})\times 1$[/tex]
= 1213856
Q = 30000
Total cost = [tex]$(4.9\times 240000)+(\frac{240000}{30000})\times 400+(\frac{30000}{2})\times 0.98= 1193900$[/tex]
Total cost is less than Q = 30000
Order quantity = 30000 boxes
Equipment was sold for $50,000. The equipment was originally purchased for $85,000. At the time of the sale, the equipment had accumulated depreciation of $30,000. Calculate the gain or loss to be recorded on the sale of equipment. Multiple Choice Gain of $5,000. Loss of $35,000. Gain of $20,000. Loss of $5,000.
Answer:
Loss of $5,000
Explanation:
loss to be recorded on the sale of equipment is $5,000
Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000; fixed overhead: $240,000. Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24,000 Variable overhead incurred: $50,000 Fixed overhead incurred: $250,000 The variable-overhead spending and efficiency variances for Theory are: Variable-Overhead Spending Variance Variable-Overhead Efficiency Variance A. $ 0 $ 0 B. $ 0 $ 2,000 unfavorable C. $ 2,000 unfavorable $ 0 D. $ 2,000 favorable $ 2,000 unfavorable E. $ 2,000 unfavorable $ 2,000 favorable
Answer:
See below
Explanation:
a. Variable overhead spending variance
= AH × ( AR - SR)
Where
AH = Actual Hours worked = 24,000
AR = Actual variable overhead rate = $50,000
SR = Standard variable overhead rate = $48,000
Therefore,
Variable overhead spending variance
= 24,000 × ($50,000 - $48,000)
= $48,000
By studying, Will can produce a higher grade, , on an upcoming economics exam. His production function depends on the number of hours he studies marginal analysis problems, A, and the number of hours he studies supply and demand problems, R. Specifically,
Gw = 2.5A^0.36R^(0.64)
His roommate David's grade-production function is
2.5A^0.25R^(0.75)
Note that d/dR and d/dR. Will's marginal productivity of studying supply and demand problems is:_____.
a. 1.60A^0.36R^-0.36.
b. 0.64(GW/R).
c. 2.5A^0.36R%0.64/R.
d. both a and b.
e. all of the above.
Answer:
c. 2.5A^0.36R%0.64/R.
Explanation:
Marginal productivity is the increase in amount of one unit of output with the one unit increase of input. Will can produce higher grade when he studies more hours. His grade will increase by one level when he studies more. His grade production function is the level of increase in his output.
Remsco has taxable income of $73,000 and a charitable contribution limit modified taxable income of $78,500. Its charitable contributions for the year were $8,020. What is Remsco's current-year charitable contribution deduction and contribution carryover (assuming Remsco does not elect to use the 25% of modified taxable income to determine its charitable contribution deduction)
Answer:
$7,850 and $170
Explanation:
The computation of the Remsco's current-year charitable contribution deduction and contribution carryover is given below:
The deduction is limited to 10% of the modified taxable income i.e.
= $78,500 × 10%
= $7,850
And, the carryover amount is
= $8,020 - $7,850
= $170
On January 1, 2021, Carla Vista Corporation signed a 5-year noncancelable lease for equipment. The terms of the lease called for Carla Vista to make annual payments of $195000 at the beginning of each year for 5 years beginning on January 1, 2021 with the title passing to Carla Vista at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Carla Vista uses the straight-line method of depreciation for all of its fixed assets. Carla Vista accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $813124 at an effective interest rate of 10%.
In 2022, Carla Vista should record interest expense of:________
a. $67994.
b. $48494.
c. $61812.
d. $42312.
Answer:
In 2022, Carla Vista should record interest expense of:________
c. $61,812.
Explanation:
a) Data and Calculations:
The Present Value (PV) of a 5-year noncancelable lease of equipment = $813,124
Annual lease payments = $195,000
Effective interest rate = 10%
Estimated lease term = 5 years
Estimated useful life of equipment = 7 years
Salvage value of equipment = $0
Method of Depreciation = Straight-line method
Lease period percentage = 71% (5/7)
Interest expense:
December 31, 2021 = $81,312 ($813,124 * 10%)
December 31, 2022 - $61,812 ($813,124 - $195,000 * 10%)
Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 3%. The yield to maturity of the bond is 8.80%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
Answer:
$775,751
Explanation:
the effective semiannual rate = 1.088 = (1 + r)²
r = 4.3072%
we must first determine the present value of the face value = $1,000,000 / (1 + 4.3072%)¹⁰ = $655,927.02
now the present value of the coupon payments = $15,000 x [1 - 1/(1 + i)ⁿ ] / i = $15,000 x [1 - 1/(1 + 0.043072)¹⁰ ] / 0.043072 = $119,823.98
market price = $775,751
Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses in the income statement are:______
a. equity method investments where a company has holdings of less than 20%.
b. trading securities where a company has holdings of less than 20%.
c. equity method securities where a company has holdings of between 20% and 50%.
d. consolidated investments where a company has holdings of more than 50%.
Answer:
a.equity method investments where a company has holding of less than 20 %
1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non–value-added activities? (Round your percentage answers to the nearest whole percent.) 4. Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.)
Answer:
1. Throughput time.
This is the length of time it takes to transform a raw material into finished goods.
= Inspection time + Process time + Move time + Queue time
= 0.7 + 2.8 + 1.3 + 4.1
= 8.9 days
2. Manufacturing Cycle Efficiency:
= Value added time / Throughput time * 100%
= 2.8 / 8.9 * 100%
= 31%
3. Percentage of time spent on none valuable activities:
= 1 - Manufacturing cycle efficiency
= 1 - 31%
= 69%
4. Delivery Cycle time:
= Wait time + Throughput time
= 16.2 + 8.9
= 25.1 days
5. New MCE.
Queue time is eliminated:
= 8.9 - 4.1
New Throughput time = 4.8 days
MCE = 2.8 / 4.8
= 58%
Lewis Company has employed a bookkeeper who is inexperienced. On December 29, after reviewing the records for the year, you discover the following error. On June 1, Lewis Company paid a supplier $300 on account. The bookkeeper recorded this by debiting Cash for $300 and crediting Accounts Payable for $300.
Required:
Prepare a correcting entry on December 26.
Answer:
See below
Explanation:
With regards to the above, wrong entry was;
Cash a/c Dr $300
................................ To Accounts payable Cr $300
However, the correct entry shid have been;
Accounts payable Dr $600
..............................To Cash $600 Cr
(Being an amount paid by Lewis company to a supplier)
Supplies expenses Dr $300
................To Cash $300
Suppose that a hot dog vendor uses a cart (K) and his time (L) to make and sell hot dogs. The vendor's production function is , where Q is the number of hot dogs per day. Suppose that the rental on hot dog carts is $50 per day and that the vendor wants to produce 500 hot dogs per day. The demand for labor is ____.
Answer:
L = 2084.75 W^-0.3
Explanation:
The computation of the demand of the labor is shown below:
At the optimum input
As we know that
MRTS = MPL ÷ MPK = w ÷ r
0.7(K ÷ L)^0.3 ÷ 0.3(L ÷ K)^0.7 = w ÷ 50
7K ÷ 3L = w ÷ 50
K = (3 ÷ 350)wL
Now apply the production function
Q = K^0.3L^0.7
500 = ((3 ÷ 350)wL)^0.3 L^0.7
500 = (3 ÷ 350)^0.3 × w^0.3 × L
L = 2084.75 × w^-0.3.
Accompanying a bank statement for Santee Company is a credit memo for $15,120 representing the principal ($14,000) and interest ($1,120) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries.
On March 1, journalize the entry that should be made by the company to bring the accounting records up to date. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSSantee CompanyGeneral Ledger
ASSETS
110 Cash
111 Petty Cash
120 Accounts Receivable
131 Notes Receivable
141 Merchandise Inventory
145 Office Supplies
146 Store Supplies
151 Prepaid Insurance
181 Land
191 Office Equipment
192 Accumulated Depreciation-Office Equipment
193 Store Equipment
194 Accumulated Depreciation-Store Equipment
LIABILITIES
210 Accounts Payable
221 Notes Payable
222 Interest Payable
231 Salaries Payable
241 Sales Tax Payable
EQUITY
310 Owner, Capital
311 Owner, Drawing
312 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
516 Cash Short and Over
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Insurance Expense
534 Office Supplies Expense
535 Rent Expense
536 Repairs Expense
537 Selling Expenses
538 Store Supplies Expense
561 Depreciation Expense-Office Equipment
562 Depreciation Expense-Store Equipment
590 Miscellaneous Expense
710
Interest Expense
On March 1, journalize the entry that should be made by the company to bring the accounting records up to date. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
1
2
3
Answer:
Dr Cash $15,120
Cr Notes Receivable $14,000
Cr Interest Revenue $1,120
Explanation:
Preparation of the journal entry
Based on the information given On March 1, the journal entry that should be made by the company to bring the accounting records up to date will be :
March 1
Dr Cash $15,120
Cr Notes Receivable $14,000
Cr Interest Revenue $1,120
TryFit Co. uses process costing to account for the production of energy food bars. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $13,000 in materials and $10,000 in conversion costs. April costs were $42,000 for materials and $46,000 for conversion costs. During April 14,000 units were completed. Ending work in process inventory was 10,000 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to: (Round your intermediate calculations to four decimal places.) Multiple Choice $30,487.40 $37,654.00 $79,520.80 $46,454.00
Answer:
$37,654.00
Explanation:
beginning WIP = $13,000 + $10,000 = $23,000
costs added during the month = $42,000 + $46,000 = $88,000
total materials costs = $55,000
materials cost per EUP = $55,000 / 24,000 units = $2.29
total conversion costs = $56,000
conversion cost per EUP = $56,000 / 19,000 = $2.95
ending inventory = (10,000 x $2.29) + (10,000 x $2.95 x 50%) = $37,650
Your cousin has asked you to bankroll his proposed business painting houses in the summer. He plans to operate the business for 5 years to pay his way through college. He needs $15000 to purchase an old pickup truck, some ladders, a paint sprayer and some other equipment. He is promising to pay you $4500 at the end of each summer for 5 years. Calculate the annual rate of return.
Answer:
the annual rate of return is 15.24%
Explanation:
The computation of the annual rate of return is shown below:
Given that
NPER = 5
PV = -$15,000
PMT = $4,500
FV = $0
The formula is shown below:
= RATE(NPER,PMT,-PV,FV,TYPE)
AFter applying the above formula, the annual rate of return is 15.24%
Olivia wants to buy some vacant land for investment purposes. She currently cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $175,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $10,000. What is the amount and character of Olivia's gain or loss
Answer:
$2,000 gain
Explanation:
Calculation to determine the amount and character of Olivia's gain or loss
Based on the information given we were told that she pays the landowner the amount of $8,000 in order for her to obtain an option to buy a land in which after purchasing the option she sells the option for the amount of $10,000 making her to gain the amount of $2,000.
Olivia's gain =$10,000-$8,000
Olivia's gain =$2,000
Therefore The amount and character of Olivia's gain will be $2,000
Answer: $2000
Explanation:
The amount and character of Olivia's gain or loss will be gotten by calculating the amount that Olivia paid the landowner $8,000 to obtain an option to buy the land and the amount she eventually sold the option. This will be:
= $10000 - $8000
= $2000
Therefore, she had a capital gain of $2000
Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC.
Burgundy uses a fiscal year ending April 30, and Violet uses a clean year.
Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy.
BV's taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2016 and $90,000 for 2017.
1. What is the amount of income from the LLC that Burgundy must report for its tax year ending April 30, 2017?
2. What is the amount of income from the LLC that Violet must report for her tax year ending December 31, 2017?
Answer: a. $141667
b. $45000
Explanation:
1. What is the amount of income from the LLC that Burgundy must report for its tax year ending April 30, 2017?
Guaranteed payments = $100,000
Share of 2016 income = ($80000 × 50% × 8/12) = $80000 × 0.5 × 0.67 = $26667
Share of 2017 income = ($90000 × 50% × 4/12) = $15000
Income = $100000 + $26667 + $15000
= $141,667
2. What is the amount of income from the LLC that Violet must report for her tax year ending December 31, 2017.
This will be the share of 2017 income which will be:
= 50% × $90000
= 0.5 × $90000
= $45000
The Tennis Times (TTT) is a publisher of magazines. Its accounting policy for subscriptions follows:RevenuesRevenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided.Assume TTT (a) collected $490 million in 2018 for magazines that will be distributed later in 2018 and 2019, (b) provided $239 million of services on these subscriptions in 2018, and (c) provided $251 million of services on these subscriptions in 2019.
Answer:
Question requires the journal entries to record a, b and c.
a.
Date Account Title Debit Credit
2018 Cash $490,000,000
Unearned revenue $490,000,000
b.
Date Account Title Debit Credit
2018 Unearned revenue $239,000,000
Service revenue $239,000,000
c.
Date Account Title Debit Credit
2019 Unearned revenue $251,000,000
Service revenue $251,000,000
Imagine that you are the newly appointed HR manager for a 500-employee health care provider organization. Using features of the various HR service models described in the chapter and any other information you might need, develop an ideal human resources organization. Identify the HR models from which you are borrowing and explain why this particular orientation or perspective is needed in your ideal organization. Next, describe how the philosophy or outlook of the chief executive officer (CEO) might cause you to modify your model.
Answer:
Answer is explained in the explanation section below.
Explanation:
As the newly appointed HR manager of a 500-employee health care provider organization, I will focus on employee development and training because skilled and trained employees will demonstrate high efficiency in the health organization and less error in medical reports, which could lead to patient dissatisfaction if their problem is not resolved due to medical report errors or lacunae.
So, I'd go with the Counseling model, in which our health-care service providers provide employee training and development through techniques like job training, internships, role plays, and learning classes, all of which are essential in health-care organizations because we provide health-care solutions to our patients and want to hire and retain highly skilled and professional personnel in our organizations.
Since qualified and skilled workers are capable of operating at a high level of productivity, have the ability to evaluate challenges and produce solutions, support both technical and non-technical activities in the organization, are experts in their fields, and so on, this model is required to transform my company into an ideal organization.
Since I would look out for what is best for employees and their growth as an HR manager, but the CEO is more concerned with cost and profit, and training and development for 500 employees could be a little more costly, the CEO will want me to adapt my model based on cost and budget.
At the end of 2009, the following information is available for Clobes Company, Snyder Company, and Welz Company (you must show your calculations to receive full credit): Required: Which company has the highest level of financial risk? Using an appropriate ratio, support your answer. Which company is the most profitable from the owners' perspective? Using an appropriate ratio, support your answer. (3) Which company is getting the greatest return on assets? Show calculations.
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data to solve for this question. However I have found similar question on the internet and I will be using that data. Besides, I have attached the data used in the attachment below.
Solution:
1. The debt-to-equity ratio is the best way to assess financial risk. A higher debt-to-equity ratio indicates a higher level of financial risk. This ratio represents the willingness of the equity of the owners to fulfil their obligations.
Formula used:
Debt-to-equity ratio = Total liabilities divided by owner's equity
For Clobes:
Total liabilities = 100,000
Owners' equity = 200,000
Debt-to-equity ratio = 100000/200000 = 0.5
For Snyder:
Total liabilities = 300,000
Owners' equity = 200,000
Debt-to-equity ratio = 300000/200000 = 1.5
For Welz:
Total liabilities = 300,000
Owners' equity = 100,000
Debt-to-equity ratio = 300000/100000 = 3
Welz faces the greatest financial risk because it has the highest debt-to-equity ratio. It has a debt-to-equity ratio of three. Even though it depends on the industry, a company's debt-to-equity ratio should be between 1 and 1.5 if it is considered optimal. In this case, Welz's financial risk is considerably higher.
2. calculate Return on Equity(ROE)
Formula used:
ROE = Net income / Owner's equity
For Clobes:
Net income = 25,000
Owners' equity = 200,000
ROE = 25,000 / 200000 = 0.125
For Snyder:
Net income = 30,000
Owners' equity = 200,000
ROE = 30000 / 200000 = 0.15
For Welz:
Net income = 20,000
Owners' equity = 200,000
ROE = 20000 / 100000 = 0.2
Welz has the highest return of equity (ROE) of 0.2.
As a result, Welz is the most profitable company.
3. Return on assets:
Formula used
Return on Assets = Net income / Total assets
For Clobes:
Net income = 25,000
Total assets = 300,000
Return on Assets = 25,000 / 300000 = 0.08
For Snyder:
Net income = 30,000
Total assets = 500000
Return on Assets = 30000 / 500000 = 0.06
For Welz:
Net income = 20,000
Total assets = 400,000
Return on Assets = 20000 / 400000 = 0.05
Hence,
Clobes has the highest return on assets, which is 0.08.
Which bank deals with short term of credit A. Agricultural bank B. Comersial bank C. Industrial Bank D. None of these
Answer:
B) commercial bank
Explanation:
i hope it helps you :)
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company requires to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,160 ounces of direct material in inventory at the start of July. The total ounces of direct materials to be purchased in July is:
a. 15,720 oz.
b. 15,880 oz.
c. 16,200 oz.
d. 15,800 oz.
e. 19,040 oz.
Answer:
Purchases= 15,880 ounces
Explanation:
Giving the following information:
Production:
July= 7,900
August= 8,100
The direct materials required per unit are 2 ounces (oz.).
Desired ending inventory= 20% of the units of budgeted production in the following month.
Beginning inventory= 3,160 ounces
To calculate the direct material purchase, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 7,900*2 + (8,100*2)*0.2 - 3,160
Purchases= 15,880 ounces
Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium? A) Marginal revenue will rise and marginal cost will fall. B) Marginal cost and marginal revenue will both rise. C) Marginal revenue will fall and marginal cost will rise. D) Marginal cost and marginal revenue will both fall.
Answer: C) Marginal revenue will fall and marginal cost will rise.
Explanation:
The profit-maximizing equilibrium is the production point where the Marginal Revenue equals the Marginal cost.
As the monopolist moves towards this point, they will see their marginal costs increase because they will be producing more goods.
For a monopolist to sell more goods however, they will need to reduce their prices. This means that Marginal revenue will come down.
Marginal revenue will keep decreasing and Marginal cost will keep increasing until both of them become equal to each other.
Desert Company exchanged 3,000 shares of its stock, for equipment from Jungle Company. Desert's stock has a par value of $50 per share and at the time of the exchange was not actively traded on a market but 12 months ago was sold at a value of $49 per share. The quoted fair value of the equipment is $170,993. What is the amount Desert should record as the historical cost of the equipment?
Answer:
Desert Company
The amount that Desert should record as the historical cost of the equipment is:
= $170,993.
Explanation:
a) Data and Calculations:
Value of stock exchanged = $150,000 (3,000 * $50)
Fair value of equipment = $170,993
Gain from exchange of Equipment for shares = $20,993
b) The quoted fair value of Jungle's equipment should be used to record the historical cost in the financial statement of Desert Company. This value represents the only verifiable value. This value should then be compared to the value of the Desert shares exchanged with Jungle to determine if there is a loss or a gain from the exchange.
Ted owns a small florist shop. Since his business is booming, his realizes he will soon need one more delivery van. He decides he will purchase a full size van versus a minivan, which he currently owns. The van he is looking to buy in 3 years will cost him $25,000. How much should he invest each quarter into an account that pays 3% per year compounded quarterly, so that he can have the desired funds in 3 years
Answer:
$1998.79
Explanation:
Quarterly payment = future value /annuity factor
Annuity factor = {[(1+r)^mn] - 1} / r
r = interest rate = interest rate / number of compounding 3%/4
N = number of years
m = number of compounding
Annuity factor =[ (1.0075)^12 - 1] / 0.0075 = 12.507586
Quarterly payment = $25,000 / 12.507586 = $1998.79
Beyond grades, what else would make a student stand out to an admissions counselor?
Answer:
Extracurricular Activity
Colleges prefer students who are active in academics as well as off it. This shows diversity in the student and is a trait that the counselors would be looking for.
Extracurricular activities like after-school jobs, sports and even volunteering at NGOs weigh heavily in the assessment of a student's ability to fit in a college and if you had great grade whilst doing these activities, you will have a better chance at being admitted.
Sarah is working on the layout of a company newsletter. What should she keep in mind?
Answer:
should understand deeply to put well the newsletter in approximately file card so as to avoid misplace and disappear of potential file.