Answer:
$48,940
Explanation:
Straight line depreciation method charges a fixed amount as depreciation expense using the formula :
Depreciation expense = (Cost - Residual Value) ÷ Estimated useful life
therefore,
2019
Depreciation expense = $22,120
2020
Depreciation expense = $22,120
2021
New depreciable amount = Cost - Accumulated deprecation - New Residual Amount
= $240,000 - $44,240
= $195,760
New Useful life = Remaining years
= 6 - 2
= 4
therefore,
Depreciation expense = $195,760 ÷ 4
= $48,940
An exchange economy has two consumers, named Jimmy and Sue, and two commodities, apples and bananas. Jimmy’s initial endowment is 2 units of apples and 4 unit of bananas. Sue’s initial endowment is 4 apples and 4 units of bananas. Jimmy’s utility function over apples and bananas is U(AJ, BJ) =AJ1/2 BJ1/2. Sue’s utility function is of the form U(AS, BS) =AS+BS, where AJ and BJ are the amounts of apples and bananas for Jimmy and AS and BS are amounts of apples and bananas for Sue.The equation of the contract curve in terms of Jimmy’s coordinates is:________
a. BJ= 2AJ
b. BJ=(A2J)/2
c. BJ=AJ
d. BJ= (8AJ)/(1+AJ)
e. None of the above
Answer:
(a) BJ = AJ
In equilibrium, apples and bananas have the same price.
Jimmy’s consumption bundle must be 3 apples and 3 bananas
i just did this
Explanation:
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Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $10 million and Pictech will earn a profit of $3 million. (Hint: Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.) Pictech High Price Low Price Flashfone High Price 8, 8 3, 10 Low Price 10, 3 5, 5 If Flashfone prices high, Pictech will make more profit if it chooses alow price, and if Flashfone prices low, Pictech will make more profit if it chooses ahigh price. If Pictech prices high, Flashfone will make more profit if it chooses alow price, and if Pictech prices low, Flashfone will make more profit if it chooses ahigh price. Considering all of the information given, pricing highis not a dominant strategy for both Flashfone and Pictech. What is the Nash equilibrium of this game
Answer:
Flashfone and Pictech
The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.
Explanation:
a) Data and Calculations:
Pictech
High Low
High 8 8 3 10
Flashfone
Low 10 3 5 5
b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively. This payoff level does not put any of the two firms at a disadvantage.
Ruby Red manufactures, markets, and distributes citrus flavored soft drinks across the globe. Ruby Red hired a collection agency in 2018 to increase collection rates from customers. As a result, Ruby estimates that only 2% of its 2019 credit sales will be written off, compared to the 4% of 2018's credit sales that were estimated to be uncollectible. At December 31, 2019, Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts and credit sales of $1,570,000.
Required:
Use the percentage of credit sales method to calculate the bad debt expense.
Answer:
$31,400
Explanation:
Ruby estimates that only 2% of its 2019 credit sales will be written off
Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts
Ruby Red has credit sales of $1,570,000.
Bad debt expense = Credit sales * 2% of its 2019 credit sales
Bad debt expense = $1,570,000 * 2/100
Bad debt expense = $1,570,000 * 0.02
Bad debt expense = $31,400
Luca owns paper making business. His products feature pressed flowers and a natural edge. He has had great success selling his products in Italy and would like to now expand overseas to the United States. Luca doesn't have a lot of money to invest in this overseas expansion. Luca's best option for a market entry strategy would be: joint venture
Answer: joint venture
Explanation:
Since Luca doesn't have a lot of money to invest in this overseas expansion, his best option for a market entry strategy would be the joint venture.
A joint venture refers to a form of business whereby two or more parties come together and then pool their resources together in order for them to accomplish a certain task. In this case, the other party can come up with the fund which will be required for the business expansion.
The following is not one of the main reasons that makes evaluation of public projects difficult.
A. Public projects are subject to higher values of MARR
B. They often have differences in the impacts and benefits to different members of society
C. They are often motivated by political goals
D. Project lives often very long
Why is public sector economic analysis / evaluation of projects more challenging?
A. Impact on wider society
B. Project Objectives
C. Length of life cycle of projects
D. Determining the value of MARR
E. All the above
Answer:
A
E
Explanation:
It costs Sunland Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3200 scales at $15 each. Sunland would incur special shipping costs of $1 per scale if the order were accepted. Sunland has sufficient unused capacity to produce the 3200 scales. If the special order is accepted, what will be the effect on net income
Answer:
The Net income will increase by $6,400
Explanation:
Use the following formula to calculate the effect on the net income
As the fixed cost is irrelevant to special order
Net income = Increase in revenue - Increase in Variable cost - Special shipping cost
Where
Increase in revenue = 3200 x $15 = $48,000
Increase in Variable cost = 3200 x $12 = $38,400
Special shipping cost = 3200 x $1 = $3,200
Placing values in the formula
Net income = $48,000 - $38,400 - $3,200
Net income = $6,400
Hence, the net income will increase by $6,400
Bissell Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan assets Balance, January 1 $ 500,000 Balance, January 1 $ 258,000 Service cost 198,000 Actual return 33,000 Interest cost 36,000 Annual contribution 119,000 Benefits paid (87,000 ) Benefits paid (87,000 ) Balance, December 31 $ 647,000 Balance, December 31 $ 323,000 The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year
Answer:
$205,200
Explanation:
Calculation of Pension Expense
Service Cost $198,000
Interest cost $33,000
Expected return on the plan assets ($25,800) (258000*10%)
Pension Expense $205,200
So therefore, the pension expense for the year is $205,200.
If we add successive laborers to work a given amount of land on a wheat farm, eventually:____.
a. the increases in wheat harvested will get larger and larger.
b. average total cost will fall to zero.
c. the increases in wheat harvested will rise at a constant rate.
d. the increases in wheat harvested will get smaller and smaller.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
A marginal rate of technical substitution (MRTS) can be defined as an economic principle which is typically used to represent the rate at which a factor such as capital must decrease so that the same level or quantity of production is maintained when another factor such as labor is changed (increased).
An isoquant is the slope of a marginal rate of technical substitution (MRTS) which connects the two input factors provided that the level of output or production is the same.
Also, the diminishing marginal rate of technical substitution refers to the decline (fall) in marginal rate of technical substitution (MRTS) along an isoquant that produces the same quantity (level) of output.
When an isoquant has a diminishing marginal rate of technical substitution, the corresponding isoquants are convex to the origin. Thus, the marginal rate of technical substitution (MRTS) would continue to diminish as more of a factor such as capital is used.
If we add successive laborers to work a given amount of land on a wheat farm, eventually the increases in wheat harvested will get smaller and smaller.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
If we add successive laborers to work a given amount of land on a wheat farm, eventually: the increases in wheat harvested will get smaller and smaller.
Question 1 Accounting for Construction Contracts 10 Marks
XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a
contract price of $40 million. XYZ Ltd estimates that construction costs will be as follows:
___________________________________________________
Year Ending Cost
___________________________________________________
30 June 2016 $10 000 000
30 June 2017 $16 000 000
30 June 2018 $ 6 000 000
$32 000 000
The contract provides that ABC will make payments on 30 June of each year as follows:
2016 $8 000 000
2017 $20 000 000
2018 $12 000 000
$40 000 000
XYZ now estimates at the beginning of the 2017 financial year that construction costs will be
as follows:
_________________________________________________
Year Ending Cost
___________________________________________________
30 June 2016 $10 000 000
30 June 2017 $21 000 000
30 June 2018 $15 000 000
$46 000 000
Required:
Calculate:
a) Percentage of completion for each of the three years. (4 marks)
b) Revenue to be recognised in each of the three years. (3 marks)
c) Gross profit/loss to be recognised in each of the three years. (3 marks)
Answer:
1st part of the question
a. percentage completion year 2016=cost incurred to date/estimated total cost
=31%.
likewise 2017: percentage completion is 50%
and 2018:percentage completion is 19%
Explanation:
2016
ie: 10000000/32000000
=31.25 or 31%
2017
ie: 16000000/32000000
=50%
2018
ie: 6000000/32000000
=18.75% or 19%
Tyrion considers taking a new job. He focuses on the increased opportunities for promotion and the higher salary rather than his increased responsibilities; therefore, he views the new position as a ________ rather than a ________. a. threat; challenge b. challenge; distress c. challenge; threat d. distress; eustress
Answer:
b) challenge ; distress
Explanation:
Tyrion, in her new job - focuses on increased opportunities for promotion and the higher salary rather than his increased responsibilities.
He views the new position as a Challenge rather than a Distress.
As : Challenge means participation in a difficult competitive situation, & prove expertise, for higher rewards. Distress means being worried, anxious.
e payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. Firm B Invest Not Invest Firm A Invest 20 for A 70 for A 20 for B 5 for B Not Invest 5 for A 50 for A 70 for B 50 for B Firm A’s dominant strategy is to ______, and Firm B’s dominant strategy is to ______.
Answer:
Invest
invest
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing
firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.
Thus the option that would yield the highest payoff is for both firms to advertise.
this is an example of prisoners dilemma
You bought a share of Bavarian Sausage stock for $46.50 at the beginning of the year. During the year the stock paid a $2.75 dividend and at the end of the year it trades at $52.75. What is the total return of your stock investment
Answer:
$9
Explanation:
Given the information above, total return of stock investment is computed as;
Total returns = Dividend + Increase in stock price
Dividend = $2.75
Increase in stock price = $52.75 - $46.5 = $6.25
= $2.75 + $6.25
= $9
Total return of my stock investment is $9
Dollar returns
= (9/46.5) × 100
= 19.35%
Suppose that an increase in the price of melons from $0.50 to $1.50 per pound increases the quantity of melons that melon farmers produce from 2 million pounds to 4 million pounds. The price elasticity of supply in this case indicates that supply is Group of answer choices
Answer: elastic
Explanation:
The price elasticity of supply will be:
The percentage change in price will be:
= (1.50 - 0.50)/0.50 x 100
= 1.00/0.50 × 100
= 200
The percentage change in quantity will be:
= (4 -2)/2 x 100
= 2/2 × 100
= 100
Elasticity = % change in quantity/% Change in Price = 200/100 = 2
Since elasticity = 2, this indicates supply is elastic as it's greater than 1.
An organization takes active countermeasures to protect its systems, such as installing firewalls. This approach is known as _____________ .
Answer:
Risk reduction.
Explanation:
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits.
This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions. Also, it is considered to be the most important part of any organization or project.
A firewall is a network security protocol that monitors and controls inbound and outbound traffic based on set aside security rules.
Generally, a firewall is used to control access to a computer or network, as it creates a barrier between a computer or a network and the internet in order to protect against unauthorized access. It is a security system pre-installed on most computers to essentially inspect data being transmitted to or from a computer.
Furthermore, firewalls are typically bidirectional, it checks all sent and received data and only allow authorized traffic through.
Hence, when an organization takes active countermeasures to protect its systems, such as installing firewalls. This approach is known as risk reduction because it mitigates, minimizes or limits (reduces) the chances of its systems and data being circumvented or compromised by a hacker, intruder and third party.
In 2022 the Splish Brothers Inc. had net credit sales of $1020000. On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of $23100. During 2022, $34200 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $242000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022
Answer:
$35,300 (Credit)
Explanation:
Given that;
Allowance = 10% × $242,000 = $24,200
Amount written off of $34,200 would have made the balance in the allowance for doubtful debts
= $34,200 - $23,100
= $11,100 (Debit)
However, the balance in the account at the end of the year should amount to $24,200 hence the adjustment required
= $24,200 + $11,100
=$35,300 (Credit)
Suppose that you are a speculator that anticipates an appreciation of the Singapore dollar (S$). You purchase a call option contract on Singapore dollars. Each contract represents S$40,000, with a strike price of $0.69 and call option premium of $0.03 per unit. Suppose that the spot price of the Singapore dollar is $0.70 just before the expiration of the call option contract. At this time, you call the contract and immediately sell the Singapore dollars to a bank at the current spot price.
Fill in the following table from your (the buyer's) perspective.
Transaction Per Unit Per Contract
Selling price of $0.92 _________
- Purchase Price of 5$ -$0.86 _________
- Premium Paid for Option -$0.02 _________
Net profit _________ _________
Answer: $1600
Explanation:
Selling price:
Per unit = $0.92
Per contract = $0.92 × 40000 = $36800
Purchase price of $5:
Per unit = -$0.86
Per contract = -$0.86 × 40000 = -$34400
Premium Paid for Option:
Per unit: -$0.02
Per contract = -$0.02 × 40000 = -800
Net profit = $36800 + (-$34400) + (-800)
= $36800 - $34400 - $800
= $1600
The net profit is $1600
What types of behaviors does the average customer exhibit
Explanation:
there are four types of consumer behavior : habitual buying behavior , variety-seeking behavior , dissonance-reduding buying behavior , complex buying behavior
3 ways to prvent hazards in the laboratory
1-Do not use laboratory containers or refrigerators to store drinks or
food, or put chemicals in food containers
(bottles of water, etc.).
2-Work whenever possible in the fume cupboard, especially
if you handle volatile, toxic powdered products, when you do
experiments that generate fumes or gases, etc.
3-Use personal protective equipment (gloves, glasses,
masks, etc.) suitable for each job and risk.
Hope this can help youg The corporate charter of Imp Company authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of operations, the company had the following transactions: January 1 sold 8 million shares at $15 per share June 3 purchased 2 million shares of treasury stock at $18 per share December 28 sold the 2 million shares of treasury stock at $20 per share What amount should the company report as additional paid-in capital in its December 31, 2021, balance sheet
Answer:
$116 million
Explanation:
Calculation of Additional Paid-in-Capital
Jan 1: 8 million*$14 $112 million
June 3: 2 million*$17 ($34 million)
Dec 28: 2 million*$19 $38 million
Paid-in-Excess capital $116 million
So, the company should report $116 million as additional paid-in capital in its December 31, 2021, balance sheet.
The W.C. Pruett Corp. has $800,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. In addition, it has $600,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $2.88 million, its average tax rate is 30%, and its profit margin is 3%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.
Answer:
1. TIE ratio = EBIT / Interest expense
EBIT = [ (Annual sales x profit margin) / (1 - tax rate) ] + Amount of debt x interest rate
= [ ($2,880,000 x 3%) / (1 - 0.30) ] + $800,000 x 8%
= 187428.57143
= $187,428.57
TIE ratio = $187,428.57 / ($800,000 x 8%)
TIE ratio = $187,428.57 / $64,000
TIE ratio = 2.92857
TIE ratio = 2.93
2. ROIC = [ EBIT x (1 - tax rate) ] / (Amount of debt + common stock)
= [$187428.57 x (1 - 0.30) ] / ($800,000 + $600,000)
= 0.093714285
= 9.37%
The COM 341 Medical Supplies is in charge of maintaining hospital supplies at UVic Hospital. The lead time for replenishment deliveries is 6 days. It was calculated that the mean demand for a 3-day period was 60 units, with a standard deviation of 7 units. Please assume that demand follows a normal distribution. COM 341 Medical Supplies would like to maintain a 90% service level.
Required:
What is the appropriate reorder point?
Answer:
reorder point = 132.67 ≈ 133 units
Explanation:
z score for service level 90% = 1.28
lead time = 6 days
mean demand 60 units for 3 days period, 20 per day
standard deviation of demand = 7 units
reorder point = (20 x 6) + {1.28 + √[(7x7)/3] x √6} = 120 + 12.67 = 132.67 ≈ 133 units
define business idea as used in entrepreneurship
Answer:
Explanation:
A business idea is a starting point for any current or future entrepreneurs. It is essential because it is the beginning of a new life – the life of a business and the life of an entrepreneur. But, an idea is important only in the initial stage of a startup.
If Serena runs her own business and is responsible for everything, she is a/an
Answer:An entrepreneur
Explanation:
An entrepreneur is an individual who starts and runs a business with limited resources and planning, and is responsible for all the risks and rewards of her business venture.
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Bob is investing in a partnership with Andy. Bob contributes as part of his initial investment, Accounts Receivable of $120,000; an Allowance for Doubtful Accounts of $18,000; and $12,000 cash. The entry that the partnership makes to record Bob's initial contribution includes a Group of answer choices
Answer:
Credit to Bob, Capital for $114,000
Explanation:
Based on the information given the entry that the partnership makes to record Bob's initial contribution includes a CREDIT TO BOB, CAPITAL FOR $114,000 Calculated using this formula
Bob, Capital=Accounts Receivable-Allowance for Doubtful Accounts+Cash
Let plug in the formula
Bob, Capital=$120,000-$18,000+$12,000
Bob, Capital=$114,000
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $ 120 $ 112 Machine minutes needed per unit 10 minutes 8 minutes A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period
Answer:
$840,000
Explanation:
Calculation to determine What is the largest possible total contribution margin that can be realized each period
First step
L =120/10
L= 12
C= 112/8
C= 14
Now let the largest possible total contribution margin
Largest possible total contribution margin C=112*( 60,000/8 )
Largest possible total contribution margin C= 112*7500 units
Largest possible total contribution margin C = $840,000
Therefore the largest possible total contribution margin that can be realized each period is $840,000
Suppose you borrow $8,000 of principal that must be repaid at the end of two years, along with interest of 4 percent a year. If the annual inflation rate turns out to be 6 percent,
Instructions: Enter your responses rounded to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
a. What is the real rate of interest on the loan?
b. What is the real value of the principal repayment?
Hint: Future value = Present value × (1 + Growth in prices)t, where t is the number of years evaluated, e.g., The real value of loan repayment = Amount of loan × (1 + Real interest rate)t
c. Who loses, the debtor or the creditor?
I do not know, i just need points :/
Lara Technologies is considering a cash outlay of $227,000 for the purchase of land, which it could lease out for $36,150 per year. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is
Answer:
the opportunity cost of the land purchase is $34,050
Explanation:
The computation of the opportunity cost of the land purchase is shown below;
= Cash outlay × return percentage
= $227,000 × 15%
= $34,050
Hence the opportunity cost of the land purchase is $34,050
We simply multiplied the cash outlay with the return percentage so the same would be calculated
Fiscal Cliff Inc. has a capital structure that consists of 15 percent common stock and 85 percent long-term debt. In order to calculate Fiscal Cliff’s weighted average cost of capital, an analyst has accumulated the following information: · The company currently has 25-year bonds outstanding with annual coupon payments of 8 percent. The bonds have a face value of $1,000 and sell for $700. · The risk-free rate is 3 percent. · The market risk premium is 8 percent. · The beta on Fiscal Cliff's common stock is 2.3. · The company's retained earnings are sufficient so that they do not have to issue any new common stock to fund capital projects. · The company's tax rate is 40 percent. Given this information, what is Fiscal Cliff's WACC? A. 9.21% B. 12.58% C. 8.17% D. 7.63% E. 11.35%
Answer:
WACC= 8.7%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.
The Weighted average cost of debt can be worked out using the following steps:
Step 1: Cost of debt
The cost of debt is the same as the yield to maturity. The yield to maturity to Maturity can be used to work out the cost of debt using the formula below:
YM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 8%× 1000 =80 , P= 700, F- 1000
AYM = 80 + (1000-700)/25÷ 1/2× (1000+700)
= 92 ÷ 850
= Yield to maturity = 10.82%
After-tax cost of debt=Before-tax × (1-T)
After-tax cost of debt = 10.82%× (1-0.4) =6.49%
Step 2 : Cost of equity
This can be computed using the Capital Asset pricing model
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 3%, β- 2.3, Rm-Rf= 8%
Ke= 3% + 2.3× 8%
Cost of equity = Ke =21.4%
Step 3: WACC
WACC = (15%*21.4.5) + (85%*6.49)=8.7%
WACC= 8.7%
Jane's Donut Co. borrowed $198,000 on January 1, 2021, and signed a two-year note bearing interest at 11%. Interest is payable in full at maturity on January 1, 2023. In connection with this note, Jane's should report interest expense at December 31, 2021, in the amount of: Multiple Choice
Answer:
$21,780
Explanation:
Calculation to determine what Jane's should report interest expense at December 31, 2021, in the amount of:
Interest expense at December 31, 2021=$198,000 x 11% x 12/12
Interest expense at December 31, 2021= $21,780
Therefore Jane's should report interest expense at December 31, 2021, in the amount of: $21,780