maria owns a store that prepares gourmet chocolates, which are hand-made and sold on the premises. what type of product is maria selling?

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Answer 1

Gourmet chocolates are produced by hand and sold in Maria's shop, Unsought, which she owns.

Which of the following is in charge of transferring products and services from suppliers to consumers?

An intermediary is a privately held or corporately controlled company that aids in the transfer of goods from the manufacturer to the final customer. a group of wholesalers and retailers who purchase products from other sellers and resell them.

What do the four stages of a product's lifecycle entail and how does it benefit businesses?

Introduction, growth, maturity, and decline are the four stages that make up a product's life cycle. Professionals in management and marketing use product life cycles to assist them decide on advertising schedules, price points, expanding into new product markets, redesigning packaging, and more.

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Related Questions

A ______ is a form that is sent with each payment, by the insurance carrier, to explain how the claim was processed.

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The complete sentence is -"The Authorization to Release Information is a form that is sent with each payment, by the insurance carrier, to explain how the claim was processed."

Who processes the claims?

Once accepted, the insurance provider investigates the claim for authenticity and pays out to the insured or requesting party (on behalf of the insured). The non-life insurance market is undergoing changes in policy administration and claims, the two basic activities of insurance.

In exchange for the insurer's pledge to repay the insured in the case of a covered loss, the policyholder assumes a guaranteed, known, and generally modest loss in the form of a payment to the insurer (a premium).

Therefore, The Authorization to Release Information is a document that the insurance provider sends with each payment to explain how the claim was handled.

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When a profit-maximizing firm is earning profits, those profits can be identified by?.

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Profits generated by a business that seeks to maximize its profits can be found by (P - ATC) x Q.

If a business that seeks to maximize profits is successful What could help you pinpoint those profits?

Profit is the sum of total revenue less total cost at any given quantity. The amount at which total revenue exceeds total cost by the greatest margin can be used to determine the most profitable production quantity.

What occurs when a company is trying to maximize its profit?

Profit maximization entails maximizing profits by employing a sound strategy that balances marginal revenue and marginal cost for business organizations. Numerous economic theories have this theory as their foundation. It exists in markets with perfect competition and monopolies.

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a partnership’s income-sharing ratio applies to: a. partnership income after salaries and interest are deducted b. partnership income before salaries are deducted but after interest is deducted c. partnership income after salaries are deducted but before interest is deducted d. partnership income before both salaries and interest are deducted

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A partnership’s income-sharing ratio applies to partnership income after the salaries and interest are deducted.

What is a partnership?

A partnership is a contract wherein parties, also referred to as business partners, decide to work together to further their shared objectives. A partnership may have one or more individuals, corporations, nonprofits, educational institutions, governmental bodies, or other entities as partners. Organizations may collaborate to broaden their reach and improve the chances that each will succeed in reaching its goals. A partnership might issue and hold stock or it might just be bound by a contract. Every partnership, even one that has not been reduced to writing, must have a partnership agreement in order to be formed. Although it is not legally necessary in common law nations, partners may benefit from a written partnership agreement that spells out the key elements of their relationship.

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1. an upstream monopolist produces an input to an downstream monopolist. the inverse demand curve for the downstream product is: p

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The downstream marginal costs of extra inputs required by the downstream monopolist and the periphery companies, in that order, are represented by the letters w and v.

What is a monopoly?

When there is "no competition" in a market, it creates a situation where one person or business is the only supplier of a given good or service. This contrasts with oligopoly and duopoly, which are examples of markets dominated by a small number of vendors, and monopsony, which refers to a single entity's ownership of a market to purchase an item or service. Therefore, the absence of economic rivalry to manufacture the commodity or service, the absence of effective substitutes, and the potential for a high monopoly price substantially above the seller's marginal cost that results in a high monopoly profit are the characteristics of monopolies. In terms of the law, a monopoly is a company that has a large amount of market power, or the ability to set excessively high prices.

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if products are being sold to customers a and b above costs and the company is earning a profit, then customers a and b must both be profitable.

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This assertion is False in light of the question. A and B's clients must both be successful.

What else do you mean by price?

A cost is the worth of cash that has been expended in the production or delivery of a good or service and is therefore no longer accessible for use in accounting, retail, research, or accounting. In industry, the price could be related to acquiring, in which instance the cost is the sum of the money used to obtain it.

Do you pronounce costs or costs?

The word "cost" in its person singular denotes the total of a group, while "costs" denotes every component of that group.

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Figure: A Real Shock
Reference: Ref 18-2 (37-2)
(Figure: A Real Shock) Refer to the figure. After a real shock, the economy is operating at point Y in the figure. In the presence of crowding out, fiscal policy that would have shifted aggregate demand from AD 0 to AD 2 will only move the economy to point:
(ALSO)
(Figure: A Real Shock) Refer to the figure. After a real shock, the economy is operating at point Y in the figure. In the presence of crowding out, fiscal policy that would have shifted aggregate demand from AD0 to AD2 will only move the economy to point:
X

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In presence of crowding out, the fiscal policy that would have shifted aggregate demand from AD0 to AD2 will move economy to point X.

What is aggregate demand?

The overall demand for final products and services in an economy at a specific time is referred to as aggregate demand, or AD, in the field of macroeconomics. To depict the aggregate demand curve, the price level is displayed on the vertical axis and real production is depicted on the horizontal axis. The Sonnenschein-Mantel-Debreu findings refute the idea that the curve slopes downward and show that one cannot statistically predict the slope of the curve from presumptions about individual rational behavior. As a result of financial market equilibrium, the Keynes effect states that a higher price level indicates a smaller real money supply and higher interest rates. Lower overall demand for commodities results from this decreased investment spending on new physical capital.

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in evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity’s aging of receivables to support management’s financial statement assertion of

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In evaluating adequacy of allowance for the doubtful accounts, an auditor most likely reviews entity’s aging of receivables to support the management’s financial statement assertion of valuation and allocation.

What is valuation?

Calculating an asset's present value (PV) is the process known as valuation in the world of finance. In a corporate setting, it is frequently the speculative price that a third party would offer for a specific item. Assets and liabilities are both subject to valuation (e.g., bonds issued by a company). There are numerous situations when valuations are required, including investment analysis, capital planning, merger and acquisition transactions, financial reporting, and taxable events to calculate the correct tax responsibility. Market value, fair value, and intrinsic value are common phrases used to describe an asset's or liability's value. The International Valuation Standards provide definitions for typical bases of value and generally recognised best practises for evaluating assets of all kinds.

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sabv corporation's break-even-point in sales is $940,000, and its variable expenses are 80% of sales. if the company lost $44,000 last year, sales must have amounted to:

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1) Break Even Level = FE - CMR950,000 = X /.3950,000 * 3 = 285,000 2) Variable Expense Ratio = 1 -.7CMR =.302 (fixed expenses) Profit = (CM ratio Sales) - Fixed expenditures of 44,000 = (.3 * X) - 285,000 = 800,000.

What does an expense ratio of 1% entail?

The expense ratio is a yearly charge that is expressed in terms of your investment, or, as the name suggests, the proportion of your investment which goes towards to the fund's expenses. For every $1,000 you invest, a fund manager with a 1% cost ratio will charge you $10 annually.

What ratio of savings to expenses is ideal?

Although experts used to recommend a minimum savings rate of 10%, they now recommend a saving increase of approximately to 15%. Divide this amount into 10percentage points for retirement & 5% for immediate savings, such as a trip. Alternatively, the rule can be stated as a proportion of 100:1 or 85:15, where you consume the first number and save the second..

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question 6 metlock, inc. purchased a new machine on october 1, 2022, at a cost of $122,000. the company estimated that the machine will have a salvage value of $14,000. the machine is expected to be used for 10,000 working hours during its 5-year life. (a) compute the depreciation expense under straight-line method for 2022. 2022 depreciation expense $enter depreciation expense amount in dollar

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The depreciation expense under the straight-line method for 2022 is  $20,628.

Depreciation (units-of-activity) is calculated as [(Cost - Salvage Value) / Total Working Hours] x Hours Worked  = [($122,000 - $14,000) / 10,000 Hours]  x 1,910 hours = $20,628. The cost of depreciation in 2020 is $20,628.

Depreciation is an accounting technique that disperses the cost of a fixed asset, such as real estate or machinery, across the time it will probably be in use.

Straight-line depreciation uniformly distributes an asset's cost over the period of time it will be used or its "useful life." Asset cost, usable life, and anticipated salvage value—or how much the asset is likely to be worth at the end of its useful life—are the only three inputs needed to determine the result.

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2. what are barriers to entry? give examples of barriers to entry. in what ways is government involved with the creation of barriers to entry?

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The factors that deter new businesses from entering a certain market are referred to as entry barriers.

What are barrier to entries?

Huge startup expenses and constrictive regulations are some of the elements that contribute to entry barriers.

Examples of barrier to entry:1) Scale economies, 2) product differentiation, 3) capital requirements, etc.4) Switching expenses. 5) access to the avenues of distribution. 6) Cost disadvantages that are not scale-related. 7) Governmental directives. By granting businesses patents, copyright, and exclusive rights, the government erects legal hurdles to entry.

A copyright grants the author of an original creative work temporary, exclusive access to it. Disney, for instance, is granted exclusive use of Mickie Mouse due to its ownership of the copyright.

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you have a total of $100,000 to invest in a portfolio of assets. the portfolio is composed of a risky asset t with an expected rate of return of 15% and a standard deviation of 20% and a treasury bill (i.e. risk-free asset) with a rate of return of 6%. how much money should be invested in the risky asset t to form a portfolio with an expected return of 11%? (hint: find wt)

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The fundamental anticipated return methodology entails dividing the weight of each asset in the portfolio by its expected return, then adding up all of those numbers.

How is the projected rate of return on a portfolio determined?

The weight of each asset is multiplied by its projected return to determine the expected return. The total predicted return for your portfolio may then be calculated by adding the figures for each investment. Consequently, the equation is as follows: Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return)...

How do you figure out a portfolio's risk and return?

The portfolio beta, which is the weighted average of the various betas, must first be determined in order to proceed. Next, we may determine the portfolio's necessary return.

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your firm is contemplating the purchase of a new $681,669 computer-based order entry system. the system will be depreciated straight-line to zero over its six-year life. it will be sold for $78,492 at the end of that time. you will save $192,664 before taxes per year in order processing costs, and you will be able to reduce working capital by $48,839 at the beginning of the project. working capital will revert back to normal at the end of the project. the tax rate is 37 percent. what is the npv of this project if the discount rate is 8.7 percent?

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The npv of this project if the discount rate is 8.7 percent is $5,680.94.

beginning expenditure (year 0): -$681,669 (cost of

computing system) less $92,500 (a decrease in net working capital) equals a loss of $592,000.

Annual depreciation cost is $684,500.

5 = $136,900

Net after-tax cash value: ($66,600 x (1–21%) = $52,614)

Years 1-4's net cash flows equal [($203,750 -

$136,900) x 79% ] + $136,900 $189,711.50

Year 5's net cash flow was $189,711,50 plus $52,614

= $242,325.50

NPV = applying a 21% discount rate

-$16,622 15

Since the NPV is negative, the project cannot be approved since the annual cost savings are too low.

When NPV = 0, the business would be undecided on whether to accept or reject the project.

therefore, net cash flows must rise.

by 2.92595 (PV annuity factor, $15,622.15

(21% over 5 cycles) = $5,680.94

This amount is pretax but after tax.

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exercise 21.13 (static) evaluating a special order (lo21-1, lo21-2, lo21-3) visionary game company sells 600,000 units per year of a particular video game at $20 each. the current unit cost of the game is broken down as follows. direct materials $ 5.00 direct labor 2.00 variable factory overhead 4.00 fixed factory overhead (average cost per unit) 3.00 total $ 14.00 at the beginning of the current year, visionary received a special order for 12,000 of these games per month, for one year only, at a sales price of $11 per unit. to fill the order, visionary will have to rent additional assembly space at a cost of $18,000 ($1,500 per month). compute the estimated increase or decrease in annual operating income that will result from accepting this special order.

Answers

Variable overhead are the costs of operating a association that fluctuate with the level of enterprise or manufacturing activity. As production output will increase or decreases, variable overhead strikes in tandem.

How do you calculate variable manufacturing unit overhead?

Standard Variable Manufacturing Overhead

For example, if variable overhead expenses are commonly $300 when the organisation produces one hundred units, the standard variable overhead rate is $3 per unit. The accountant then multiplies the rate by using predicted production for the length to calculate estimated variable overhead expense.

The constant manufacturing unit overhead volume variance is the distinction between the budgeted fixed overhead at everyday capability and the standard fixed overhead for the proper devices produced.

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the will company reported the following data for last year: decrease in the cash account$ 25,000 net cash provided by operating activities20,000 net cash provided by investing activities15,000 based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be:

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Net cash provided by financing activities on the statement of cash flows of the will company would be $60000.

The net amount of cash flows used to fund a business is called cash flows from financing operations.

Here, On basis of the following data,

Net cash provided by financing activities would be, the sum of the decrease in the cash account, net cash by operating activities and net cash by investing activities.

I.e. 25000+20000+15000

=60000

The CFF of a company is an indicator of the company's financial health and management.

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doreen uses search to reach customers as they search for products similar to hers. she'd like to create a display remarketing campaign to reconnect with users and increase sales. how might remarketing help her meet this marketing objective?

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Doreen uses search to reach customers as they search for products similar to hers and create a display remarketing campaign to reconnect with users and increase sales. It will allow her to show ads to people who previously visited her website as they browse websites and use apps.

What do you mean by remarketing campaign?

Remarketing is the practise of engaging audiences who have previously interacted with your brand in order to persuade them to take a desired action, such as conversion. Because the customer journey is time-consuming, remarketing is an important component of digital marketing. Most customers do not discover a new brand, select some of its products, and make a purchase all in the same session. Customers may, for example, visit your website and add items to their shopping cart before leaving without making a purchase. Using the email addresses that customers have provided in their account, you can remarket to them by sending emails that remind them about those products, thereby preventing cart abandonment.

So, The required answer is that It will allow her to show ads to people who previously visited her website as they browse websites and use apps.

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companies with smaller fixed asset turnover ratios require a.large fixed asset investments. b.less labor-intensive investments. c.small fixed asset investments. d.none of these choices are correct.

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companies with smaller fixed asset turnover ratios require small fixed asset investments.

Investments

Investing, in general, is putting money to work in some form of enterprise or effort for a certain length of time in order to earn good returns (i.e., profits that exceed the amount of the initial investment). It is the process of distributing resources, often capital (money), with the hope of creating revenue, profit, or gains.

One can invest in a variety of undertakings (directly or indirectly), such as spending money to establish a business or acquiring real estate in the hopes of producing rental income and/or reselling it later at a better price.

Investing differs from saving in that the money is put to use, which implies that there is an inherent risk that the connected project (s) will fail.

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bear claw industries has two departments. the molding department applies overhead based on machine hours, while the assembly department applies overhead based on direct labor hours. the company made the following estimates at the beginning of the current year:

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bear claw industries has two departments. the molding department applies overhead based on machine hours, while the assembly department applies overhead based on direct labor hours. the company estimates at the beginning of the current year is:

$70. Molding department: Estimated overhead costs = $700,000. Estimated direct labor hours = 12,000. Estimated machine hours = 10,000.

What is the definition of industry?

An industry in macroeconomics is a division of an economy that creates a cluster of closely related products, services, or raw materials. One could cite the wood business or the insurance industry as examples. Industry classifications often use a group or company's major source of revenue to categorize it inside a certain industry when assessing it. As an illustration, the International Standard Industrial Classification (ISIC), which is utilized directly or through derivations for the official statistics of the majority of countries worldwide, categorizes "statistical units" according to the "economic activity in which they primarily participate."

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In terms of the circular flow diagram, businesses obtain revenue through the _____ marketand make expenditures in the _____ market.A. product; resource B. resource; product C. capital: product D. product, financial

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Option C is correct. The round glide mannequin illustrates how in an economic system profits should equal production. In other words, one person's expenditure is another entity's income.

For example, Ben is a mechanic. He sells his services to Sandra. Sandra's expenditure is Ben's income.

What are the flows of the round waft models?

The circular flow model is an economic mannequin that suggests the waft of cash via the economy. The most common shape of this mannequin shows the circular glide of profits between the household sector and the enterprise sector. Between the two are the product market and the aid market.

Businesses trade the revenue earned in the market for items and services to buy land, labor and capital in the market for resources.

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brief exercise 21.8 (static) matching decisions to all relevant costs or revenue (lo21-1, lo21-3, lo21-4) skip to question [the following information applies to the questions displayed below.] identify all relevant costs or revenue that are applicable to the decisions stated below: brief exercise 21.8 (static) part a a. reject a special order. (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.)

Answers

The correct options are:

The contribution margin of the product andInterference with other production

Associated costs are costs incurred as a direct reaction to a particular decision. Similarly, related revenues are the same, but instead of costs, they generate revenues as a result of certain decisions. This is usually an administrative decision.

Associated costs are business accounting terms that describe avoidable costs that are incurred only when a specific business decision is made. The related cost concept is used to eliminate unnecessary data that can complicate the decision-making process. When deciding on alternatives only the income and expenses that differ for each alternative are relevant.

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florrie is trying to decide the best way to structure her marketing channel and asks you for an advantage to using a distribution center. what will you tell her?

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The most effective way for her to structure her marketing channel and gain an advantage is to use a distribution center, which limits sales forecasts to the next six months. Typically, stores have more inventory on hand.

The process of creating, communicating, delivering, and exchanging value-added offerings for customers, clients, partners, and society at large is known as marketing. Getting people interested in a company's goods or services is marketing's primary goal.

Because it increases customer awareness of your goods or services, engages them, and helps them make a decision to buy, marketing is crucial for your company.

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match each type of bond with its description. secured secured drop zone empty. callable bonds callable bonds drop zone empty. convertible bonds convertible bonds drop zone empty. term term drop zone empty. serial bonds serial bonds drop zone empty. bond issue that matures on a single date bonds that can be exchanged for shares of stock in the issuing company bonds that mature in installments bonds are backed by collateral the issuing company can pay off the bonds at any time

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Debentures - unsecured bonds, Callable bonds - the issuing company can pay off the bonds at any time, convertible bonds - bonds that can be exchanged for shares of stock in the issuing company, term - bond issue that matures on a single date and serial bonds - bonds that mature in installments.

By purchasing a bond, you are making a loan to the issuer, who agrees to repay the face value of the loan on a specific date and to pay you periodic interest payments along the way, usually twice a year.

In exchange for regular interest payments, a bond is a financial instrument in which an investor lends money to a business or the government for a predetermined amount of time.

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The explosive growth in global trade means that large corporations are hiring Americans of mixed cultural backgrounds. For example, first-generation Americans of immigrant parents may speak two or more languages well. To deal with firms in other countries, large corporations benefit from a. employees from diverse backgrounds. b. employees with only the best credentials. c. outsourcing negotiations.

Answers

Large enterprises gain from employing just those with the best credentials to work with businesses in other nations.

What is explosive growth?

A person who is compensated to work for a person or business is considered to be an employee. A person is not need to work full-time in order to be regarded as an employee. All that is required is for your company to pay you for the task. A professional who performs for an organization in exchange for pay or compensation is called an employee. Employees enter into a binding agreement with their employer after negotiating terms, typically by signing an offer letter or employment contract, and they then join the team.

A store clerk is an example of an employee. Employees must carry out specified duties, such as: B. An worker is deemed to be an employee if they wear name tags and greet clients in a particular way.

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what technology enables business oriented transactions and information to be communicated electronically between people and organization

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Telecommunications, the electronic transmission of information over distances, and computers are now essentially inseparable:

What technology enables people and organizations to communicate electronically about business-related transactions and information?

By using computer telecommunications networks to sell goods, services, and information, e-commerce refers to maintaining relationships and carrying out business transactions.

What kind of technology enables people and organizations to exchange information and do business through the internet?

The exchange of electronic transaction documents from computer to computer, involving at least two trading partners, is known as electronic data interchange (EDI). Paper transactional documents like purchase orders and invoices are replaced with standardized electronic communications when using EDI.

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the company started when it acquired $33,000 cash by issuing common stock. purchased a new cooktop that cost $15,100 cash. earned $21,400 in cash revenue. paid $12,400 cash for salaries expense. adjusted the records to reflect the use of the cooktop. purchased on january 1, year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,300. use straight-line depreciation. the adjusting entry was made as of december 31, year 1. b. prepare a balance sheet and a statement of cash flows for the year 1 accounting period.

Answers

Equipment + Cash - Accumulated depreciation equals $37,450 by adding retained and common stock.

For the horizontal statements model, please refer to the attached excel file.

In the excel document that is attached, we have:

Cooktop or equipment cost minus estimated salvage value divided by expected useful life yields accumulated depreciation of ($39,000 - $3,3000)/5= $6,600

The following balances from the attached excel file can be used to demonstrate how the accounting equation works:

Equipment + Cash - Accumulated

Depreciation equals $46,460 ($33,500 + 15,400 - $6,600).

Retained + Common Stock = $39,00 plus

$7,460 = $46,460

As a result, we have:

Equipment + Cash - Accumulated

depreciation equals $37,450 by adding retained and common stock.

During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period. Amortization of assets with predetermined useful lives is included in depreciation.

Depreciation is the systematic lowering of a fixed asset's recorded cost until the asset's value is zero or insignificant, according to accounting terminology.

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which of the following methods can be used to compare mutually exclusive repeatable projects with unequal lives if inflation in the costs and/or cash flows of the projects is expected when the projects are repeated? group of answer choices equivalent annual annuity replacement chain approach both a and b can be used none of the above

Answers

Replacement chain approach can be used to compare mutually exclusive repeatable projects with unequal lives if inflation in the costs and/or cash flows of the projects is expected when the projects are repeated.

Value chains assist businesses in being more efficient so they can provide the most value for the least amount of money. A value chain's ultimate objective is to give a business a competitive edge by boosting productivity and controlling costs. The value chain strategy aims to comprehend an industry's businesses, from input suppliers to end-user consumers, as well as the support markets that offer the sector's technical, commercial, and financial services and the overall business environment. The value chain strategy aims to comprehend an industry's businesses, from input suppliers to end-user consumers, as well as the support markets that offer the sector's technical, commercial, and financial services and the overall business environment. The many business operations and procedures involved in producing a good or providing a service are referred to as the value chain. Research and development, sales, and all other phases of a product or service's lifespan can be included in a value chain. Value chains assist businesses in becoming more efficient so they can provide the most value for the least amount of money. A value chain's ultimate objective is to give a business a competitive edge by boosting productivity and controlling costs.

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Which departments within the organization should have access to the marketing plan?.

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The CMO of business unit is likely to be responsible for creation of its marketing plan.

What is a marketing plan?

A comprehensive business plan could include a marketing strategy. A well-written marketing plan must start with a strong marketing strategy in order to accomplish goals. While a marketing strategy includes a list of tasks, it is of little use to a business without a strong strategic base. A marketing plan is a thorough report or blueprint that describes the advertising and marketing strategies to be used in the upcoming calendar year. It covers the commercial operations involved in achieving particular marketing goals within a predetermined time frame. A marketing strategy also contains a discussion of the target market, a description of the target market, and a description of the marketing mix that will be used by the company to meet its marketing objectives.

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on a budget line graph, a decrease in income and/or an increase in the prices of both goods will shift the budget line to the ___

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On a budget line graph, a decrease in income and/or an increase in the prices of both goods will shift the budget line to the inward left.

The budget line is a graphical representation of all possible combinations of the two commodities that can be purchased with the given income and cost so that the price of each of these combinations is equal to the customer's monetary earnings.

The slope of this line is equal to the price ratio of these goods. Because the prices of the two goods are constant, so is the slope of the budget line.

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if the government places a tax on large corporations then it is likely that the corporation's owners will end up paying all of that tax.

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True - if the government places a tax on large corporations then it is likely that the corporation's owners will end up paying all of that tax.

a government is the device or organization of human beings governing an prepared community, commonly a nation. in the case of its extensive associative definition, authorities normally includes legislature, government, and judiciary. government is a method by means of which organizational policies are enforced, in addition to a mechanism for determining policy. In many nations, the government has a sort of constitution, a declaration of its governing ideas and philosophy.

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. In a Bertrand model with identical firms and a non-differentiated product, price will increase in response to:
a-) an increase in the number of firms.
b-) a decrease in the number of firms.
c-) an increase in marginal cost.
d-) a decrease in marginal cost.

Answers

c-) an increase in marginal cost.

What is marginal cost ?

The marginal cost is the difference in overall production costs resulting from creating or producing an additional unit. To calculate marginal cost, divide the variation in production costs by the variation in quantity. The objective of marginal cost analysis is to determine the scale at which an organization can experience economies of scale to enhance production and overall operations. If the marginal cost of producing one additional unit is less than the price per unit, the producer might be in the black.

The total costs involved in producing an additional good are what is referred to as the marginal cost.

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Heron Company purchases commercial realty on November 13, 2002, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 22, 2020, for $850,000.
What are the tax consequences of the sale of realty if Heron is (a) a C corporation and (b) a sole proprietorship?
a. If Heron is a C corporation, what is the amount of each type of gain recognized?
If an amount is zero, enter "0". Round your answers to the nearest dollar.
Character of Gain Ordinary income under § 1245 $fill in the blank ba02540cbfe6fb7_1
Ordinary income under § 1250 $fill in the blank ba02540cbfe6fb7_2
Ordinary income under § 291 fill in the blank ba02540cbfe6fb7_3
§ 1231 gain fill in the blank ba02540cbfe6fb7_4
Total recognized gain $fill in the blank ba02540cbfe6fb7_5

Answers

a. If Heron is a C corporation, the amount of each type of gain recognized is as follows:

Ordinary income under § 1245: $287,492 (the amount of depreciation claimed)

Ordinary income under § 1250: $162,508 (the difference between the purchase price and the adjusted basis of the property, which is the purchase price less depreciation claimed)

Ordinary income under § 291: 0 (no recapture of depreciation is required)

§ 1231 gain: $440,508 (the difference between the sale price and the adjusted basis of the property, which is the purchase price less depreciation claimed)

Total recognized gain: $890,508 ($287,492 + $162,508 + $440,508)

b. If Heron is a sole proprietorship, the amount of each type of gain recognized is as follows:

Ordinary income under § 1245: 0 (no depreciation is allowed for a sole proprietorship)

Ordinary income under § 1250: 0 (no depreciation is allowed for a sole proprietorship)

Ordinary income under § 291: 0 (no recapture of depreciation is required)

§ 1231 gain: $850,000 (the difference between the sale price and the purchase price)

Total recognized gain: $850,000 ($850,000)

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