Answer:
the depreciation expense in year 2 is $1,133,475
Explanation:
The computation of the depreciation expense in year 2 is given below:
depreciation in Year 2 is
= Asset amount × Depreciation percentage in year 2
= $2,550,000 × 44.45%
= $1,133,475
Hence, the depreciation expense in year 2 is $1,133,475
These are selected 2017 transactions for Swifty Corporation: Jan. 1 Purchased a copyright for $122,750. The copyright has a useful life of 5 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 26 years for $51,120. Sept. 1 Purchased a small company and recorded goodwill of $154,200. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events.
Answer:
Dr Amortization expense $24,550
Cr Copyright asset $24,550
Dr Amortization $10,650
Cr Patent asset $10,650
Explanation:
Preparation of all adjusting entries at December 31 to record amortization required by the events
Based on the information given the adjusting entries at December 31 to record amortization required by the events will be :
Dr Amortization expense $24,550
Cr Copyright asset $24,550
Dr Amortization $10,650
Cr Patent asset $10,650
Calculation for Annual amortization of copyrights
Annual amortization of copyrights = Cost of copyright/Useful life
Annual amortization of copyrights= $122,750/5
Annual amortization of copyrights= $24,550
Calculation for Annual amortization of patent
Annual amortization of patent = Cost of patents/Useful life
Annual amortization of patent= $51,120/4
Annual amortization of patent= $12780
Amortization of patent for 2017 = $12780 x 10/12
= $10,650
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.
Required:
For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object
Cost Cost Object Direct cost/indirect Cost
Ex. Catered food served to patients A particular patient
The wages of pediatric nurses The pediatric department
Prescription drugs A particular patient
Heating the hospital The pediatric department
The salary of the head of pediatrics The pediatric department
The salary of the head of pediatrics A particular pediatric patient
Hospital chaplain's salary A particular patient
Lab tests by outside contractor A particular patient
Lab tests by outside contractor A particular department
Answer:
Cost and Cost object / Explanation
a. The wages of pediatric nurses/The pediatric department
The wages of pediatric nurses are the costs and the pediatric department is the cost object and are directly related to each other. Wages is an element of direct cost. The wages of pediatric nurses relating to the pediatric department are Direct costs.
b. Prescription drugs / A particular patient
The prescription drugs are the costs and a particular patient is the cost object. The prescription drugs are direct costs as such costs are directly attributable to the treatment of a particular patient. This cost is incurred in direct proportion to the requirement of the pediatric patient.
c. Heating the hospital / The pediatric department
The cost of heating the hospital is an indirect cost as it is not directly required for the treatment of the pediatric patient. The cost of heating the hospital is to be incurred irrespective of the number of patients. It is a fixed cost and is not related to the level of activity.
d. The salary of the head of pediatrics / The pediatric department
The expenses of pediatric department are dependent upon the number of pediatric patients as it is the principal source of revenue for the department. The salary of the head of pediatrics relating to the pediatric patient is directly related to the number of pediatric patients. Thus, it is a direct cost.
e. The salary of the head of pediatrics / A particular pediatric patient
The treatment of the particular patient involves certain fixed or variable costs. The salary of the head of pediatrics is not directly relevant for the treatment of the particular patient. Thus, it is an indirect cost.
f. Hospital chaplain's salary / A particular patient
Hospital chaplain’s salary relating to a particular patient is not directly related to the patient. It is an indirect cost as it is a period cost or fixed cost. It has to be incurred irrespective of the number of patients.
g. Lab tests by outside contractor / A particular patient
Lab test is for the treatment of a particular patient due to which it is considered as a direct cost for the hospital. Lab tests by outside contractor relating to a particular patient is a direct cost as the nature of the expense is variable.
h. Lab tests by outside contractor / A particular department
This cost is a direct cost as it relates to a particular department and not the entire hospital. Lab tests by outside contractor relating to a particular department is a direct cost as the nature of the expense is variable.
A company has the following cash transactions for the period.
Accounts Amounts Cash
received from sale of products to customers 31,500
Çash received from the bank for long-term loan 36,500
Cash paid to purchase factory equipment (41,500)
Cash paid to merchandise suppliers (10,300)
Cash received from the sale of an unused warehouse 11,300
Cash paid to workers (22,300)
Cash paid for advertisement (2,300)
Cash received for sale of services to customers 21,500
Cash paid for dividends to stockholders (4,300)
Assume the balance of cash at the beginning of the period is $3,300.
Required: 1.
Calculate the ending balance of cash. Ending balance
Answer:
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Many names have been recognized as notable business leaders. Steve Jobs, Bill Gates, Elon Musk, Mark Zuckerberg, Jack Welch, and Colleen Barrett are all leaders identified for their unique approach to leading people. Choose one of the following business leaders for this assignment: Jeff Bezos, Elon Musk, Steve Jobs, Bill Gates, Jack Welch, Indira Nooyi, Anne Mulcahy, Howard Schultz, Colleen Barrett, Larry Page, Mark Zuckerberg, Warren Buffett, Richard Branson, Susan Wojcicki, Marissa Mayer, or Mary Barra. Select one leader and discuss (in 1,250-1,500 words) what you have learned about the selected individual as a leader and the leadership style that leader embodies. Address the following in your discussion: Identify a leader and justify why you selected that particular leader. With what organizations is the leader affiliated
During January, Year 2, Geo entered into the following transactions: Paid $728 on account for utilities that were used during December, Year 1. Purchased $488 of supplies for cash. Signed a rental agreement for office space and paid $6,100 in advance for six months of rent beginning February 1, Year 2. Purchased $21,000 of new equipment, signing a promissory note. Provided $32,500 of services. $16,000 was received in cash and $16,500 was provided on credit. Paid workers $7,400 for work done in January. Required: Prepare journal entries for each of the following January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account. Beginning balances have been entered.
Answer:
Geo
1. Journal Entries:
1. Debit Utilities Payable $728
Credit Cash $728
To record the payment of utilities on account.
2. Debit Supplies $488
Credit Cash $488
To record the purchase of supplies for cash.
3. Debit Prepaid Rent $6,100
Credit Cash $6,100
To record the prepayment of rent for 6 six months.
4. Debit Equipment $21,000
Credit Note Payable $21,000
To record the purchase of equipment on account.
5. Debit Cash $16,000
Debit Accounts Receivable $16,500
Credit Services Revenue $32,500
To record the rendering of services for cash and on account.
6. Debit Salaries Expense $7,400
Credit Cash $7,400
To record the payment of salaries for January.
2. T-accounts:
Utilities Payable
Accounts Titles Debit Credit
Cash $728
Cash
Accounts Titles Debit Credit
Utilities payable $728
Supplies 488
Prepaid Rent 6,100
Service Revenue $16,000
Salaries Expense 7,400
Supplies
Accounts Titles Debit Credit
Cash $488
Prepaid Rent
Accounts Titles Debit Credit
Cash $6,100
Equipment
Accounts Titles Debit Credit
Note Payable $21,000
Note Payable
Accounts Titles Debit Credit
Equipment $21,000
Accounts Receivable
Accounts Titles Debit Credit
Service Revenue $16,500
Services Revenue
Accounts Titles Debit Credit
Cash $16,000
Accounts Receivable 16,500
Salaries Expense
Accounts Titles Debit Credit
Cash $7,400
Explanation:
Since the beginning balances were not supplied, the T-accounts are not balanced at the end of the period. Journal entries were prepared to record the daily business transactions for the first time in the accounting system. The entries showed the accounts to be debited and credited respectively.
At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units.
The following data relate to these two jobs:
On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $24 per unit and 900 units for Job 42 at $18 per unit.
During August, Kaye Company accumulated 700 hours of direct labor costs on Job 40 and 1,000 hours on Job 42. The total direct labor was incurred at a rate of $24 per direct labor hour for Job 40 and $10 per direct labor hour for Job 42.
The predetermined factory overhead rate is $6.00 per direct labor hour.
a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
Job 40 $
Job 42 $
b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.
Job 40 $
Job 42 $
Answer:
a. Job 40 Job 42
Direct material 200*24= $4,800 900*18= $16,200
Direct labor 700*24= $16,800 1000*10 = $10,000
Overhead applied 700*6= $4,200 1000*6 = $6,000
Total Job cost $25,800 $32,200
b. Job 40 cost per unit = $25,800/1000 units
Job 40 cost per unit = $25.8 per unit
Job 42 cost per unit = $32,200/500 units
Job 42 cost per unit = $64.4 per unit
A motive is always required for the suspect to be criminally liable
Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,030 units that were 75% completed. 10,000 units were started into the process during January. On January 31, the inventory consisted of 400 units that were 40% completed. What would be the equivalent units for conversion cost using the weighted average method
Answer:
Equivalent units for conversion cost is 10,790 units
Explanation:
Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630
Ending Work In Process 400 x 40% = 160
Total equivalent units for conversion cost = 10,790
Pension data for Goldman Company included the following for the current calendar year: Service cost $ 140,000 PBO, January 1 650,000 Plan assets, January 1 700,000 Amortization of prior service cost 5,000 Amortization of net loss 1,000 Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 10% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
$129,000
Explanation:
Calculation for pension expense
Service Cost $140,000
Add: Interest Cost $39,000
($650,000 × 6%)
Add: Amortization of prior service cost $5,000
Add: Amortization of net loss $1,000
Less Expected return on plan assets $56,000 ($700,000 × 8%)
Pension Expense $129,000
Therefore Pension Expense is $129,000
Sheffield Corp. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $11700. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000
Answer:
$20,300
Explanation:
Calculation for What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000
Direct materials charged to Job 250=$45,000 - ($11,700 / .90) - $11,700
Direct materials charged to Job 250=$45,000 - $13,000- $11,700
Direct materials charged to Job 250= $20,300
Therefore the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000 will be $20,300
Lofty Inc. is considering investing in a game which can provide the corporation with the following returns as the outcomes: Probability of Investment States Occurrence Returns State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25% Calculate the expected rate of return for this investment.
Answer: 16.82%
Explanation:
The expected return of an investment is a weighted average of the different returns given the probabilities that certain states occur in the economy.
=( 18% * 20%) + (42% * 16%) + (30% * 3%) + (10% * -25%)
= 0.036 + 0.0672 + 0.009 - 0.025
= 0.1682
= 16.82%
Terry Dactal has compiled the financial information displayed below. Which of the following is Terry’s net worth? Salaries $72,400 Credit Card Balance $8,600 Cash on Hand $1,500 Utilities paid to date $8,450 Coin Collection $2,350 Jewelry value $8,500 Home value $335,000 Auto loan balance $14,300 Stock Portfolio value $18,500 1967 Ford Mustang value $40,900 Grocery Expenses $7,550 Checking account $3,200 Mortgage Balance $278,600 Property Taxes owed $1,750 Mortgage loan payments made $19,500 Student loan balance $26,200 New York vacation expenses paid $4,200 Auto loan payments paid $6,600 Income taxes paid-to-date $9,100 Clothing/entertainment expense $5,000 Interest earned $400 Insurance premiums paid $5,500
Answer: $80,500
Explanation:
A person's net worth is their Net assets less their liabilities.
Terry's assets include:
Cash on hand, Coin collection, Home value, Jewellery, stock portfolio, 1967 Ford Mustang, Checking account
Terry's liabilities include:
Credit card balance, Auto loan balance, Mortgage balance, Property taxes owed, Student loan balance.
Net worth is therefore:
= (1,500 + 2,350 + 335,000 + 8,500 + 18,500 + 40,900 + 3,200) - (8,600 + 14,300 + 278,600 + 1,750 + 26,200)
= $80,500
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 100 carts per hour. Workers receive $11 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12 per hour, while output increased by 4 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.)
Answer:
A. Labor productivity before=16 cart per workers-hour
Labor productivity After=26 cart per workers-hour
B. Multifactor productivity Before=0.94 carts per hour
Multifactor productivity before=0.94 carts per hour
Explanation:
A. Computation of labor productivity under each system
Labor productivity Before=100 carts per hour/6 workers
Labor productivity Before=16 cart per workers-hour
Labor productivity After=(100 carts per hour+4 carts per hour)/4 workers
Labor productivity After=(104carts per hour /4 workers
Labor productivity After=26 cart per workers-hour
B. Computation of the multifactor productivity under each system.
Multifactor productivity Before=100 carts per hour/(6 workers*$11 per hour)+$40 per hour
Multifactor productivity Before=100 carts per hour/($66 per hour+$40 per hour)
Multifactor productivity Before=100 carts per hour/$106 per hour
Multifactor productivity Before=0.94 carts per hour
Multifactor productivity before=(100carts per hour + 4carts per hour)/(4 workers * $11 per hour$)+($40 per hour+12 per hour)
Multifactor productivity before=(104carts per hour /(4 workers * $11 per hour$)+($40 per hour+12 per hour)
Multifactor productivity before=(104carts per hour /($66 per hour+$52 per hour)
Multifactor productivity before=(104carts per hour /118per hour
Multifactor productivity before=0.94 carts per hour
Below is the complete list of accounts of Sooner Company and the related balance at the end of April. All accounts have their normal debit or credit balance. Cash, $3,200; Prepaid Rent, $6,700; Accounts Payable $3,600; Common Stock, $33,000; Service Revenue, $24,700; Salaries Expense, $7,500; Accounts Receivable, $5,400; Land, $53,000; Deferred Revenue, $1,950; Retained Earnings, $21,250; Supplies Expense, $8,700. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.
Answer:
Trial Balance
Debit Credit
Land 53000
Accounts Receivable 5400
Cash 3200
Prepaid Rent 6700
Accounts Payable 3600
Deferred revenue 1950
Common Stock 33000
Retained earnings 21250
Service Revenue 24700
Salaries expense 7500
Supplies expense 8700
Totals 84500 84500
Explanation:
The trial balance has been made in the answer section.
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 6.5% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 5.5% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June. (The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.)
4 Sold $600 of merchandise (that had cost $300) on credit to Natara Morris.
5 Sold $9,400 of merchandise (that had cost $4,700) to customers who used their Zisa cards.
6 Sold $5,674 of merchandise (that had cost $2,837) to customers who used their Access cards.
8 Sold $4,250 of merchandise (that had cost $2,125) to customers who used their Access cards.
10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.
13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $473 balance in McKee’s account stemmed from a credit sale in October of last year.
17 Received the amount due from Access.
18 Received Morris’s check in full payment for the purchase of June 4.
Required:
Prepare journal entries to record the preceding transactions and events.
Answer:
4-Jun
Dr Accounts receivable—N. Morris 600
Cr Sales 600
4-Jun
Dr Cost of goods sold 300
Cr Merchandise inventory 300
5-Jun
Dr Cash 8,883
Dr Credit card expense 517
Cr Sales 9,400
5-Jun
Dr Cost of goods sold 4,700
Cr Merchandise inventory 4,700
6-Jun
Dr Accounts receivable—Access 5,560
Dr Credit card expense 113.5
Cr Sales $5,674
6-Jun
Dr Cost of goods sold 2,837
Cr Merchandise inventory 2,837
8-Jun
Dr Accounts receivable—Access 4,165
Dr Credit card expense 85
Cr Sales $4,250
8-Jun
Dr Cost of goods sold $2,125
Cr Merchandise inventory $2,125
10-Jun No journal entry required
13-Jun
Dr Allowance for doubtful accounts 473
Cr Accounts receivable—A. McKee 473
17-Jun
Dr Cash 9,725
Cr Accounts receivable—Access 9,725
18-Jun
Dr Cash 588
Dr Sales discounts 12
Cr Accounts receivable—N. Morris 600
Explanation:
Preparation of the journal entries to record the preceding transactions and events.
4-Jun
DrAccounts receivable—N. Morris 600
Cr Sales 600
4-Jun
Dr Cost of goods sold 300
Cr Merchandise inventory 300
(Being to record Sales on credit)
5-Jun
Dr Cash 8,883
(9,400-517)
Dr Credit card expense 517
(5.5%*9,400)
Cr Sales 9,400
5-Jun
Dr Cost of goods sold 4,700
Cr Merchandise inventory 4,700
6-Jun
Dr Accounts receivable—Access 5,560.5
($5,674-113.5)
Dr Credit card expense 113.5
($5,674*2%)
Cr Sales $5,674
6-Jun
Dr Cost of goods sold 2,837
Cr Merchandise inventory 2,837
8-Jun
Dr Accounts receivable—Access 4,165
($4,250-$85)
Dr Credit card expense 85
(2%*$4,250)
Cr Sales $4,250
8-Jun
Dr Cost of goods sold $2,125
Cr Merchandise inventory $2,125
10-Jun No journal entry required
13-Jun
Dr Allowance for doubtful accounts 473
Cr Accounts receivable—A. McKee 473
17-Jun
Dr Cash 9,725
Cr Accounts receivable—Access 9,725
(5,560+4,165)
18-Jun
Dr Cash 588
(600-12)
Dr Sales discounts 12
(2%*600)
Cr Accounts receivable—N. Morris 600
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,400 cash and $34,400 of photography equipment in the company in exchange for common stock. 2 The company paid $3,000 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $970 cash. 20 The company received $4,231 cash in photography fees earned. 31 The company paid $765 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
Pose-for-Pics
1. T-accounts:
Cash
Date Account Title Debit Credit
Aug. 1 Common stock $7,400
Aug. 2 Prepaid insurance $3,000
Aug. 5 Office supplies 970
Aug. 20 Photography Fees 4,231
Aug. 31 Utilities 765
Aug. 31 Balance $6,896
Common Stock
Date Account Title Debit Credit
Aug. 1 Cash $7,400
Aug. 1 Photography equipment 34,400
Aug. 31 Balance $41,800
Photography Equipment
Date Account Title Debit Credit
Aug. 1 Common stock $34,400
Prepaid Insurance
Date Account Title Debit Credit
Aug. 1 Cash $3,000
Office Supplies
Date Account Title Debit Credit
Aug. 1 Cash $970
Photography Fees
Date Account Title Debit Credit
Aug. 20 Cash $4,231
Utilities Expense
Date Account Title Debit Credit
Aug. 31 Cash $765
2. Trial Balance
As of August 31
Account Title Debit Credit
Cash $6,896
Common stock $41,800
Equipment 34,400
Prepaid insurance 3,000
Office supplies 970
Photography fees 4,231
Utilities expense 765
Totals $46,031 $46,031
Explanation:
Before transactions are posted to the T-accounts (General Ledger) they are recorded in the General Journal. The T-accounts summarize the transactions into various ledger accounts. Periodically, the accounts are balanced and a trial balance is extracted to check if the posting is error-free.
Uncle Fred recently died and left $280,000 to his 45-year-old favorite niece. She immediately spent $80,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 20 years to permit her to withdraw $75,000 at the end of each year through age 80 if her funds earn 10 percent annually during retirement
Answer:
6.06%
Explanation:
The computation of the rate of return is shown below:
Given that
NPER = 20 years
PV = ($280,000 - $80,000) = $200,000
PMT = $0
FV = $75,000 × PVIFA factor at 10% for 21 years
= $75,000 × 8.6487
= $648,652.50
The following formula should be applied
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 6.06%
Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the total claims to the company's total resources are:
Answer:
$45,000
Explanation:
Given the above information, total resources is computed as;
Total resources = Cash + Purchase supplies + Equipment computer system
But
Cash = $20,000 + $25,000 - $5,000 - $10,000 = $30,000
Total resources = $30,000 + $5,000 + $10,000 = $45,000
Manufacturing activities consist of materials, production, and sales activities. The materials activity consists of the purchase and issuance of materials to production. The production activity consists of converting materials into finished goods. At this stage in the process, the materials, labor, and overhead costs have been incurred and the schedule of cost of goods manufactured is prepared. The sales activity consists of selling some or all of finished goods available for sale. At this stage, the cost of goods sold is determined.
From the list below, select the items that are classified as a materials activity.
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
d. Work in process beginning inventory
e. Goods manufactured
f. Direct labor used
g. Factor overhead used
Answer:
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
Explanation:
Note: The materials activity consists of the purchase and issuance of materials to production
Thus, the items that are classified as a materials activity are :Raw materials used, Raw materials beginning inventory and Raw materials purchases
The purpose of growth accounting is to estimate the contribution each component of the aggregate production function makes to overall economic growth. estimate the growth rate of an economy. use the change in total factor productivity to estimate the growth rate of an economy. estimate the extent to which growing costs are affecting the overall performance of an economy.
Answer:
Estimate the contribution each component of the aggregate production function makes to overall economic growth
Explanation:
Growth accounting is a quantitative tool used to estimate the contribution each component of the aggregate production function makes to overall economic growth.
Growth accounting was first developed by Robert Solow.
The growth accounting equation is :
Capital Growth*(Weight of Capital's Contribution) + Labour Growth*(Weight of Labour's Contribution) + Technological Advancement
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.
If free trade exists between the countries, then each country will benefit if
a. England exports scones, Scotland exports sweaters.
b. England exports sweaters, Scotland exports scones.
c. both countries export scones.
d. given the production possibilities, both countries will not benefit from trade.
Answer:
A
Explanation:
The country with a comparative advantage in the production of a good should export the good
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
England
Comparative advantage in the production of scones = 1/50 = 0.02
Comparative advantage in the production of sweater = 50/1 = 50
Scotland
Comparative advantage in the production of scones = 2/40 = 0.05
Comparative advantage in the production of sweater = 40/2 = 20
England has a comparative advantage in the production of scones and should export scones
Scotland has a comparative advantage in the production of sweaters and should export sweaters
You buy a share of The Ludwig Corporation stock for $19.20. You expect it to pay dividends of $1.11, $1.1833, and $1.2614 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $23.26 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % Calculate the expected dividend yield. Round your answer to two decimal places. % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)
Answer:
P0 = $19.20
D1 = $1.11
D2 = $1.1833
D3 = $1.2614
P3 = $23.26
a. Dividend growth rate = (1.2614-1.1833)/1.1833 = 0.0781/1.1833 = 0.06600186 = 6.60%
b. Expected Dividend Yield=(Expected Dividend/Price)*100 = $1.11/$19.20 = 0.0578125 = 5.78%
c. Total Rate of Return = 6.60% + 5.78% = 12.38%
in 2001 an outbreak of hoof-and-mouth disease in europe led to the burning of millions of cattle carcasses. discuss the demand and supply implication caused by the outbreak, for an in-depth analysis of the discussion topic you may use all of the resources available to you. what impact would you expect on the supply of cattle hides, hide prices, the supply of leather goods, and the price of leather goods
Answer:
High demand
Low supply
High prices
Explanation:
The demand and supply of products, goods and services is heavily dependent on several factors ranging from economic, health and social factors. Disease and viral outbreaks have devastating effects on the market forces of demand and supply which in most cases will impact the market negatively with characteristically high prices and scarcity of products. The mouth and hoof outbreak in Europe was one which impacted the economy including farmers, leather and hides workers and all whose businesses and sustainability depends on cattles and its products. Due to the contagious nature of the disease and the ease at which it could spread if curtailment isn't effected on time, millions of cattles were slaughtered on sighting the symptoms and it's products including skins are burnt leading to losses in billions on the path of cattle rearers, shortage of lather, hides and skins, restriction in international product trade in other to avoid its spread to other parts of the world. These resulted in low supply and high demand of cattles and its products including leather goods meaning High prices for little available.
Company A is a manufacturer with sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company B is a consulting firm with service revenues of $4,500,000 and a 25% contribution margin. Its fixed costs equal $375,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales
Answer:
See below
Explanation:
Company A
Degree of operating leverage is computed as
= Contribution margin / Net income
Net income = Contribution margin - Fixed costs
= 60% × $6,000,000 - $2,600,000
= $3,600,000 - $2,600,000
= $1,000,000
Degree of operating leverage = $3,600,000 /$1,000,000
= 3.6
Company B
Degree of operating leverage is computed as
= Contribution margin / Net income
Net income = Contribution margin - Fixed costs
= 25% × $4,500,000 - $375,000
= $1,125,000 - $375,000
= $750,000
Degree of operating leverage = $4,500,000 / $750,000
= 6
• 20% increase in sales company A
Sales = 20% × $6,000,000 + $6,000,000 = $7,200,000
Net income = 60% × $7,200,000 - $2,600,000 = $1,720,000
Degree of operating leverage = $4,320,000 / $1,720,000 = 2.5
• 20% increase in sales company B
Sales = 20% × $4,500,000 + $4,500,000 = $5,400,000
Net income = 25% × $5,400,000 - $375,000 = $975,000
Degree of operating leverage = $1,350,000 /$975,000 = 1.38
With regards to the above, company A tends to gain more from the sales increase because its operating leverage of 2.5 is more than that of company B, whose operating leverage is 1.38
Kendra Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?
a. Materials, 100%; labor, 100%; overhead cost, 40%.
b. Materials, 100%; labor, 100%; overhead cost, 100%.
c. Materials, 100%; labor 40%; overhead cost, 40%.
d. Materials, 40%; labor, 40%; overhead cost, 60%.
e. Materials, 40%; labor, 40%; overhead cost, 100%.
Answer:
a. Materials, 100%; labor, 100%; overhead cost, 40%.
Explanation:
The work in Process have already passed the mark at which Materials and Labor are added, that is the start of its production process so these are both 100% complete. Overheads are 40 % complete, which is the extent of work done on them since they occur evenly.
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be: Multiple Choice $90,000. $100,000. $110,000. $125,000. None of the answers is correct.
Answer:
$110,000
Explanation:
Variable cost is determined by high-low method:
Type A = $50,000
Type B = 0
Fixed cost determined using high low method is:
Type A = 0
Type B = $60,000
The total cost of high low method is $110,000.
As a developing nation, India has relied on assistance for building roads, power plants, schools, and hospitals. In order to receive assistance, the government of India has lower trade barriers and fosters private business. Many high-tech start-ups and call centers are now located in India. This example illustrates the function of the _______.
Answer:
international monetary fund (IMF)
Explanation:
This example illustrates the function of the international monetary fund (IMF). This fund is what helps India build all the infrastructure that they need in order to maintain its financial stability and allows it to improve its international trade and relationships. Since India is a member of the International monetary fund and contributes to it they are able to receive assistance for such expenses from the fund itself. All country members contribute to the fund and mutually benefit from doing so.
The sole proprietor of Sam's Swings is interested in gaining a better understanding of his current customers in terms of certain demographic and lifestyle characteristics so he may better serve their needs. For this purpose, he should most appropriately conduct ________ research.
Answer:
Descriptive.
Explanation:
This is explained to be be a form of study that shows to be done in a descriptive manner where it talks about the data analysis, design and form at which the given topic is been solved at the said moment. This is why in the above case, the demographic and lifestyle properties are been ascertained for better conclusions that can drive to the given description. When this is gotten, it will be clearly seen to get a resonable amount ofescription which he require.
Suppose that Harry drinks one cup of coffee with his preferred three packs of creamer every day for seven days. What is his utility for that week
Answer:
21
Explanation:
The computation of the utility for that week is as follows:
Given that
There are three packs
Also it is for seven days
u(x,y) = min(3x,y)
C = 1
x = 1
y = 3
So,
u = min(3,3)
= 3
For 7 days it would be
= 7 × 3
= 21
Hence, the utility for that week is 21
Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities. Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. Paying higher wages tends to reduce the average experience level of a firm's workers.
Answer:
The answer is "Choice First and third"
Explanation:
Please find the complete question in the attached file.
The higher wages will improve the productivity of workers in various ways, that are salary with the number of workers exceeds the cost of labor, in the fewer countries. It can be associated with both the poor diet and over-market wages in these environments can enable the workers of the company to remain fit and efficient. The fewer employees may decide to seek other employment opportunities when a business pays salaries just above the current market price. This elimination of employee sales will minimize company training costs because new employees need to be trained.