Answer:
33.61%
Explanation:
Reliable Moving Company calculation of percentage of total liabilities for December 31, 2018
Using this formula
Vertical analysis % = Specific item / Base amount × 100Vertical analysis %
Where:
Specific item =$395,000
Base amount =$1,175,000
Thus:
= ($395,000 / $1,175,000) × 100Vertical analysis %
=0.33617×100 Vertical analysis %
2018 Percentage of total liabilities= 33.61%
Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network systems, while Applicant 2 could work in programming, information support, or interactive media. Applicants 2 and 3 are best suited to work in network systems, while Applicant 1 could work in programming, information support, or interactive media. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media. Applicant 3 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Incomplete question, however I made interferences from an employer perspective.
Answer:
Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
From a performance point of view the programming, information support and interactive media roles of the company would be better handled by more than one individual since this roles involve more responsibilities that could not be handled by one individual.
The network systems role can better be managed by Applicant 1 only as it is a task that could be handled by a single employee.
Answer:
C. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
Took The Test2. Jill would like to plan for her son’s college education. She would like for her son, who was born today, to attend college for 5 years, beginning at age 18. Tuition is currently $12,000 per year and tuition inflation is 6%. Jill can earn an after-tax rate of return of 8%. How much must Jill save at the end of each year, if she wants to make the last payment at the beginning of her son’s first year of college?
Answer:
$4,531.50
Explanation:
first we must determine the cost of tuition in 18 years (2038):
$12,000 x (1 + 6%)¹⁸ = $34,252 per year
to calculate the total value of college tuition (5 years) in 2038 we can use the annuity due factor (6% and 5 years) 4.4651:
total college tuition = $34,252 x 4.4651 = $152,939
this means that Jill needs to have $152,939 for the moment her son starts college:
we have to calculate the payment:
to calculate the future value of an annuity (since she starts to save at end of the year, it is an ordinary annuity, not annuity due) we use the following formula:
future value = payment x ordinary annuity factor (8% and 17 years)
we know future value ($152,939) and the annuity factor = 33.7502
payment = future value / annuity factor
payment = $152,939 / 33.7502 = $4,531.50
TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which are smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
TerraLoc's decsion to manufacture the battery in-house is most consistent with which theory(s) of vertical integration?
a. Firm capability-based explanations
b. Alliance-based explanation
c. Opportunism-based explanations
d. Flexibility-based explanations
Answer:
The correct answer is the option A: firm capability-based explanations.
Explanation:
To begin with, given the fact that the company decided to manufactured the battery in-house in order to reduce the possibility of helping other competitors when using an outsourced manufacturer then the company is using its firm capability in order to achieve the goal of manufacturing that component of the final product. Therefore that if the company would not have the resources and capability of doing it then it would necessary outsourced the manufactured of it.
he following information was drawn from the accounting records of Chapin Company. On January 1, Year 1, Chapin paid $56,000 cash to purchase a truck. The truck had a five-year useful life and a $6,000 salvage value. As of December 31, Year 1, Chapin Company had a $68,000 balance in its Accounts Receivable account and a zero balance in its Allowance for Doubtful Accounts account. Sales on account for Year 1 amounted to $320,000. Chapin estimates that 5 percent of credit sales will be uncollectible. Required a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts. b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet. c. Record the year-end adjusting entry of uncollectible accounts expense. d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet.
Answer:
a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts.
December 31, 202x, accrued depreciation expense on truck
Dr Depreciation expense 10,000
Cr Accumulated depreciation - truck 10,000
b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet.
Truck $46,000
c. Record the year-end adjusting entry of uncollectible accounts expense.
December 31, 202x, allowance for doubtful accounts
Dr Bad debt expense 16,000
Cr Allowance for doubtful accounts 16,000
d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet.
Accounts receivable $52,000
Explanation:
truck's depreciation expense straight depreciation = ($56,000 - $6,000) / 5 years = $10,000 per year
accounts receivable balance December 31 = $68,000
allowance for doubtful accounts = $0
total sales on account = $320,000
5% of credit sales are uncollectible
accounts receivable = $68,000 - $16,000 = $52,000
4.
What does it mean when a solid white line separates a narrow bike lane
from the right-most lane of traffic?
A. Motor vehicles may not use the bike lane except to make a turn.
B. Motor vehicles may not use the bike lane except to park.
C. Motor vehicles may not use the bike lane for any reason.
D. Bicyclists may not turn left for any reason, except in an emergency,
Answer:
A single or double solid white line dividing traffic lanes going in the same direction can't be crossed for any reason. A single solid white line is generally used to indicate the right- most boundary of the drivable roadway on highways.
Explanation:
hope this helps you :)
Answer:
Hi! your answer should be A. Motor vehicles may not use the bike lane except to make a turn.
Explanation:
it wouldn't be B because you cannot park in the bike lane.
it wouldn't be C because you're allowed to use it when turning.
it wouldn't be D because that doesn't make much sense.
hope this helps!
Magnolia, Inc. has budgeted sales for the first quarter of the next year to be 45,000 units. The inventory on hand at the beginning of quarter is 5,000 units. The desired ending inventory is 3,000 units. Calculate the budgeted production for the first quarter.
Answer:
Production= 43,000 units
Explanation:
Giving the following information:
Sales= 45,000 units
Beginning inventory= 5,000 units
The desired ending inventory is 3,000 units.
To calculate the budgeted production, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 45,000 + 3,000 - 5,000
Production= 43,000 units
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 44 $ 36 $ 1,584 Apr. 7 Purchase 124 38 4,712 Jul. 16 Purchase 194 41 7,954 Oct. 6 Purchase 104 42 4,368 466 $ 18,618 For the entire year, the company sells 413 units of inventory for $54 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
TRC Corporation
Calculations, using FIFO:
a) Ending Inventory:
Ending Inventory in units = Units available for sale minus Units sold
Ending Inventory in units = 466 - 413 = 53 units
Ending Inventory value = Units x FIFO cost of last purchase = 53 x $42 = $2,226
b) Cost of goods sold:
Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
Cost of goods sold = $1,584 + 17,034 - 2,226 = $16,392
c) Sales Revenue:
Sales Revenue = Units sold x Selling price = 414 x $54 = $22,302
d) Gross Profit:
Gross Profit = Sales Revenue minus Cost of goods sold
Gross Profit = $22,302 - $16,392 = $5,910
Explanation:
a) Summary of Inventory Transactions:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 44 $ 36 $ 1,584
Apr. 7 Purchase 124 38 4,712
Jul. 16 Purchase 194 41 7,954
Oct. 6 Purchase 104 42 4,368
b) Cost of goods available 466 $ 18,618
c) Sales 413 $ 54 $ 22,302
d) Dec. 31 Ending Inventory 53 42 $ 2,226
e) The FIFO (First-in, First-out) inventory method assumes that goods sold are from earlier inventory units, unlike Last-in, First-out (LIFO). This means that beginning and earlier purchased inventory units are sold first before the latest purchases. Using the FIFO method, the ending inventory is valued at the cost of the most recent inventory purchases.
A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable, but he was worried that the cost of the new materials might negatively affect operating income. This would produce a(n) ________.A. unfavorable direct materials cost variance
B. unfavorable direct materials efficiency variance
C. favorable direct labor cost variance
D. favorable direct labor efficiency variance
Answer:
D
Explanation:
Because the higher the quality of materials the more efficient the product will be
Which of the following depicts the proper sequence of steps in the accounting cycle?
a. Journalize the transactions, analyze business transactions, prepare a trial balance
b. Prepare a trial balance, prepare financial statements, prepare adjusting entries
c. Prepare a trial balance, post to ledger accounts, post adjusting entries
d. Prepare a trial balance, prepare adjusting entries, prepare financial statements
Answer:
Option D. Prepare a trial balance, prepare adjusting entries, prepare financial statements
Explanation:
The accounting cycle sequence is given as under:
Analyzing the businessJournalize the TransactionsPost to Ledger AccountsPrepare a Trial BalancePosting adjusting entries and Preparing an adjusted trial balancePreparing the financial statementsJournalize and post closing entriesPrepare a post closing trial balance and financial statementSo we can see that the three steps highlighted above are the sequence shown in the option D. Hence option D is correct.
Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 Plastic 400 $ 2,800 104 Steel 402 24,000 105 Glue Indirect 1,620 106 Rubber 403 3,200 107 Titanium 404 31,600 Journalize the entry to record the issuance of materials. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
Details below
Explanation:
For issuance of an entry a single transaction is recorded that is work in process account is debited and materials inventory account is credited. In subsidiary ledgers job numbers are debited. For indirect Materials factory overhead is debited.
The given data is as follows.
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
The entry for materials requisitioned will be
A compound entry can be passed. In this the subsidiary ledger is not included.
Sr. No Particulars Debit Credit
Work In Process 61600
Factory Overhead 1620
Materials Inventory 63200
The one with a subsidiary ledger would look like this.
Sr. No Particulars Debit Credit
(Subsidiary)
1 Work In Process 61600
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Factory Overhead 1620
Materials Inventory 63200
This is combined entry but separate entries can be passed as well .
Sr. No Particulars Debit Credit
Work In Process 61600
Materials Inventory 61600
Sr. No Particulars Debit Credit
Factory Overhead 1620
Materials Inventory 1620
Sr. No Particulars Debit Credit
(Subsidiary ledger)
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Materials Inventory Plastic 2800
Materials Inventory Steel 24000
Materials Inventory Titanium 3200
Materials Inventory Rubber 31600
In each of the entries above materials inventory is credited.
Bobby Jones, an accountant for ABC Corporation, has been suspected of committing fraud. Some information already gathered about the fraud points to Bobby Jones as the most likely perpetrator. In his scheme, Bobby supposedly stole more than $5 million over the past three years. Due to the magnitude of the fraud and to set an example in the company, ABC decides to prosecute Bobby both civilly and criminally.
Describe What will happen to bobby jones during the civil litigation,including the stages of civil litigation that he and ABC will go through.
Answer:
In the civil litigation process what will happen to Bobby Jones are in four stages which are Inquiry and Pleading, Discovery, Motion Practice and Negotiation and Trial and Appeal.
Explanation:
Four steps are involved in the process of civil litigation stated as follows:
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
Inquiry and Pleading: The first step or phase is the inquiry and pleading.
In this staged a complaint is first issued against Bobby Jones by the ABC Corporation which elaborates on the offence and also points out the financial compensation for the damaged or problems caused.
(2) Discovery: This is where the various parties gives an effort to get more information as possible
(3) Motion Practice and Negotiation: This occurs prior to trial when bobby files motion to challenge the complaint issued against him.
(4)Trial and Appeal: The last stage is the trial and appeal. this occurs when the previous steps has failed.
In this step the trial is held, both Bobby and ABC Corporations seeks judgement from the judge and the judge issues the jury to put in the final verdict. If both parties are not satisfied with judgement received, they can appeal to a higher court to review the verdict or decision.
The income elasticity for most staple foods, such as wheat, is known to be between zero and one. As incomes rise over time, what will happen to the demand for wheat? What will happen to the quantity of wheat purchased by consumers? What will happen to the percentage of their budgets that consumers spend on wheat? All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?
Answer and Explanation:
a. As it is given that the income elasticity of wheat is between zero and one that reflects inelastic and less than unity condition.
So in this, when the income is increased the demand for wheat is also increased but it would be less proportionally
And, the percentage increase in demand for wheat is lower than the increase in income
b. The quantity of wheat purchased is increased as there is an increase in income which increased the demand for all goods
c. The percentage of their budget will go decline as the income elasticity is between zero and one that results into an increase in income and they can switch more expenditure for other goods
d. The farmer condition does not affect overall as if the income increased the demand for other goods is also increased but it is more than the wheat
A new American graduate is contemplating buying a
Japanese, German, or an American car. No matter the type of car, he
plans to buy a new one at the end of 8 years.
The Japanese cars will cost $30,000 and have a fuel
usage of 23 Miles Per gallon (mpg) for the first 2 years and will
decrease by 3% per year thereafter. The repair cost will start at $700
per year, and increase by 3% per year. At the end of year 8, the
car can be sold for $5000. Insurance cost will be $700 for the
first year, increasing by 2% per year thereafter.
A German car will cost $45,000 and have fuel usage
of 21mpg for the first 5 years, and decrease by 1% thereafter to
year 8. The repair cost will start at $1000 in year 1 and increase by
4% per year. It will have a salvage value of $7000 at the end of
year 8. Insurance cost will be $850 the first year, increasing by
2% per year thereafter.
The American car will cost $35,000 and have fuel
usage of 20mpg for the first 3 years and will decrease by 3% per
year thereafter. The repair cost will be $800 in year 1, increasing by
4% per year thereafter. Being an American, the graduate will price
the pride of owning an American car at $0.4 for every 20 miles
driven, increasing by 2% per year. Insurance costs will be $800 per
year increasing by 2.2% per year. The car can be sold for $5500 at
the end of year 8.
If the graduate anticipates driving 150000 miles by
the end of year 8 and the average interest rate is expected to
remain at 5% per year, which car is economically affordable based
on present worth analysis? Assume fuel cost will be $3 per gallon
in year 1 and increase by an average of 2% per year. Show all your
workings.
Answer:
The best option is to buy Japanese Car.
Explanation:
Fuel usage per year is 150000/ 8 = 18750 miles per year
Fuel cost (year 1 -8) = $3.0, $3.06, $3.12, $3.18, $3.25, $3.312, $3.38, $3.5
Japanese Car:
Fuel usage 18750 / 23 = 815 * $3 = $2446
Fuel charges (year 1 -8) = $2445, $2494, $2623, $2758. $2900, $3050, $3207, $3372
Repair Cost (year 1 - 8) = $700, $721, $742, $764, $787, $811, $835, $860
Insurance cost (Year 1 - 8) = $700, $714, $728, $742, $757, $772, $788, $804
Present value of cost at 5% = 24674.07
Cost of car is $30,000
Total cost = $54674.07
American Car:
Cost $35,000
Fuel usage 18750/20 = 937.5 * $3 per gallon = $2812.5.
Fuel charges (year 1 -8) = $2812, $2913, $2986, $3011. $3098, $3124, $3176, $3208
Repair Cost (year 1 - 8) = $800, $894, $921, $978, $1109, $1176, $1207, $1301
Insurance cost (Year 1 - 8) = $800, $827, $876, $898, $908, $932, $954, $934
Present value of cost at 5% = 25302.18
Cost of car is $35,000
Total cost = $60302.
German Car:
Cost = $45,000
Fuel usage 18750 / 21 = 892 * $3 = $2678
Fuel charges (year 1 -8) = $2679, $2732, $2786, $2842. $2899, $2987, $3077, $3171
Repair Cost (year 1 - 8) = $1000, $1040, $1081, $1124, $1169, $1216, $1265, $1316
Insurance cost (Year 1 - 8) = $850, $867, $884, $902, $920, $938, $957, $976
Present value of cost at 5% = 27105.73
Cost of car is $45,000
Total cost = $72105.
Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,053,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2012
2,413,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2013
241,300
3. Shares issued for cash on March 31, 2014
2,136,000
Number of common shares issued and outstanding at December 31, 2014
4,790,300
4. A 2-for-1 stock split of Newton’s common stock took place on March 31, 2015
Compute the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement
Compute the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement.
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.
Answer:
1. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. The weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Explanation:
1. To calculate the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement we would have to ake the following calculation:
Jan1.2013-Sep30.2013(2,413,000*9/12)=1,809,750
retroactive adjustment for stock dividend ×1.10
Jan1.2013-Sep30.2013 adjusted= 1,990,725
Oct.2013-Dec31.2013(2,654,300*3/12)= 663,575
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. To calculate the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement we would have to make the following calculation:
Jan1.2014 -Mar31.2014(2654300*3/12) 663575
April1.2014 -Dec31.2014 (4790300*9/12) 3592725
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement we would have to make the following calculation:
2014 weighted average no of shares 4256300
Retroactive adjustment for stock split ×2 =8512600
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement we would have to make the following calculation:
Jan1.2015-Mar31.2015 (4790300*3/12)=1197575
Retroactive adjustment for stock split ×2
Jan1-Mar31.2015 adjusted. 2395150
Mar1.-Dec31.2015 (9580600*9/12)= 7185450
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
In contrasting equity and efficiency, why do high-tech firms seem to treat their employees better (better wages, benefits, working environments, vacations, etc.) compared to how landscaping or fast-food franchises treat their employees
Answer:
High-tech firms are hiring expensive, sophisticated people who are in high demand compared to fast food franchises and treat them better to avoid losing them to other companies
Explanation:
High-tech firms are hiring expensive, sophisticated people who are in high demand. This brings about a better treatment of their employees because if they do not offer these amenities to employees, they would become employees of other high-tech companies. Individuals with low skill levels do not get high salaries or benefits. They are not in as high demand as highly skilled workers. It is efficient, but many would argue that it is not fair.
Prepare Journal Entries in a Revenue Journal Horizon Consulting Company had the following transactions during the month of October: Oct. 2 Oct. 3 Oct. 14. Oct. 24 Oct. 29 Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $380 Issued Invoice No. 322 to Armor Inc. for services rendered on account, $540. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $190. Issued Invoice No. 324 to Rose Co. for services rendered on account, $790 Collected Invoice No. 321 from Pryor Corp.
a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format revenue journal Accounts Rec. Dr DATE Invoice No. Account Debited Post. Ref Fees Earned Cr Oct. 2 Oct. 3 Oct. 14 Oct. 24 Oct. 31
b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp, customer account assuming a zero balance on October 1?
Answer and Explanation:
The recording and the computations are as follows
a. The recording of the October revenue transactions are shown below:
DATE INVOICE NO. ACCOUNT DEBITED POST.REF.
ACCOUNT REC. DR. FEES EARNED CR.
Oct 2 321 Pryor Co.
380
Oct 3 322 Armor Co.
540
Oct 14 323 Pryor co.
190
Oct 24 324 Rose co.
790
Oct 31 1900
b) Now the total amount for account receivable and fees earned is
Account receivable = 1900
Fees earned = 1900
c) The October 31 balance is
October 31 balance
= $380 + $190 - $380
= $190
A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
A C corporation earns $ 9.20 per share before taxes and the company pays a dividend of $ 4.00 per share. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the after-tax amount an individual would receive from the dividend?
Answer:
The answer is $4.27
Explanation:
Solution
Given that:
AC corporation earns = $9.2 per share
Pays a dividend of =$4.00
The tax rate (Corporate ) is =39%
The tax rate on personal dividends is= 15%
The tax rate for non-dividend personal income is = 36%
Now,
We must find the after tax rate amount of after tax rate an individual or a person would earn from the dividend
Thus,
The corporate tax =$9.40 * 39% = 3.67
Personal tax = $4.00 * 15% = 0.6
Now we find the total for the after tax rate
Total = $3.67 + $0.6
= $4.27
Therefore, the after tax rate an individual or a person would earn from the said divided is $4.27
Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand.
If a shortage exists in the pizza market, then the current price must be.............than the equilibrium price. For the market to reach equilibrium, you would expect................
Answer:
Lower
Buyers would offer higher prices
Explanation:
When a shortage occurs when Demand exceeds supply. Excess demand occurs when price is below equilibrium price and as a result suppliers reduce quantity supplied.
As a result of the shortage, buyers would offer higher prices. As a result of the higher prices, the quantity supplied would increase and equilibrium would be restored.
I hope my answer helps you
On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
Cash Accounts Payable
Accounts Receivable Shawn Dahl, Capital
Office Equipment Revenue
Canoe and Kayak Equipment Expenses
Following are the transactions:
1. Shawn Dahl invested $44,400 in cash to open the business
2. Paid $12,100 in cash for the purchase of kayak and canoe equipment
3. Paid $1,850 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $4,600 on credit
5. Received $4,700 in cash for kayak rentals
6. Rented canoes and kayaks for $2,000 on account
7. Purchased office equipment for $205 in cash
8. Received $1,200 in cash from credit clients
9. Shawn Dahl withdrew $2,300 in cash for personal expenses
Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
Answer:
what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
$800
Explanation:
We can seen in the transactions in the question that Whitewater Rentals first obtained $2,000 from rented canoes on account. These $2,000 represent the initial balance of accounts receivable.
Later, credit clients paid $1,200 cash. This reduced accounts receivable by the same amount.
Therefore, the balance of Accounts Receivable for Whitewater Rentals at the end of September is = $2,000 - $1,200 = 800
The debate on the effects of raising the minimum wage is ongoing. A few years ago, Seattle, Los Angeles, and San Francisco passed laws to gradually raise the minimum wage to $15/hour. Beaudry, Paul, David A. Green, and Ben M. Sand (investigated the possible effects of these laws on the labor market and concluded that "...for workers below $10 per hour in Seattle, the employment rate declines by over 10 percent in response to raising the minimum wage to $15. Meanwhile, for the larger group with wages at or below $15, the decline is approximately 7 percent." The authors' conclusion is consistent with the specific economic theory discussed in the course that
Answer:
The findings are consistent with the specific economic theory about minimum wage that is held by mainstream, neoclassical theories.
According to this theory, a minimum wage is essentially a binding price floor: a minimum price (in this case, the price of labor, which is the wage) set by the government that is above the market rate.
what happens when imposing this binding price floor is that the supply of labor (workers) becomes higher than the demand (the firms that hire the workers), leading to oversupply. In other words, some workers are left unemployed because there is no demand for them at the price set by the government.
The findings are consistent with this economic theory.
Present and future value
PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233
How much must be invested now at 9% interest to accumulate to $24,000 in four years?
a) $1,753.b) $1,965.c) $2,652.d) $2,317.
Answer:
$ 17,002.21 (none of the options is correct)
Explanation:
The formula for determining the present value ,which is the actual amount invested to give a future value is given below:
PV=FV*(1+r)^-n
The PV is the present value which is unknown
FV is the future worth of the investment which is $24,000
r is the rate of return which is 9% per year
n is the duration of investment which is 4 years
PV=$24,000*(1+9%)^-4
PV=$24,000*(1.09)^-4
PV=$24,000*0.708425211 =$ 17,002.21
Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta for the first adviser was 1.5, while that of the second was 1.
Required:
a. If the T-bill rate was 6% and the market return during the period was 14%, which adviser would be the superior stock selector.
b. Can you tell which adviser was a better selector of individual stocks (aside from the issue of general movements in the market)?
c. What if the T-bill rate were 3% and the market return 15%?
Answer: Adviser B is the superior stock selector.
Explanation:
For the comparision between the two investment advisers, the Jenson's Alpha will be utilized.
Jenson's Alpha:
= Portfolio Actual Return - CAPM(Benchmark Portfolio Return)
T Bill Rate(Risk free rate) = 6%
Market return(E(Em) = 14%
Beta of Investment Adviser A = 1.5
Beta of Investment Adviser B = 1
For Adviser A:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 6 + 1.5 (14-6)
= 6 + 12
= 18%
Actual Return = 19%
Jenson's Alpha = 19% - 18% = 1%
For Adviser B:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 6 + 1(14-6) = 6 + 1(8) = 14%
Actual Return = 16%
Jenson's Alpha = 16% - 14% = 2%
Adviser B is a better selector because he has a larger alpha of 2% compared to Adviser A who has 1%.
T Bill Rate(Risk free rate) = 3%
Market return(E(Rm) = 15%
Beta of Investment Adviser A = 1.5
Beta of Investment Adviser B = 1
For Adviser A:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 3 + 1.5 (15-3)
= 3 + 18
= 21%
Actual Return = 19%
Jenson's Alpha = 19% - 21% = -2%
For Adviser B:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 3 + 1(15-3) = 3 + 1(12) = 15%
Actual Return = 16%
Jenson's Alpha = 16% - 15% = 1%
Given the changes, Adviser B is still the better selector because he has a larger alpha of 1% compared to Adviser A who has -2%.
Who is following the law when it comes to protecting investors’ funds?
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
Answer:B (a mutual fund advisor who informs investors about risks)
Explanation:
As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so that you can be able to solve real life business problems after graduation. To achieve this objective, the 2020 class has been divided into ten groups; and each team works in a management capacity with ten management consulting companies in the Greater Accra Region. San Consulting - the firm that your group works with is a project management company that is into Real Estate construction and management consulting. This firm which has twenty years’ experience in this business is the first choice for all individuals and companies that want quality service. You have on the contrary, observed that many of the management practices have not developed precipitously as situations in the business environment warrant. The accountant confirmed this by saying in the last general meeting that a certain percentage of San’s profit margin is being lost because of this situation. She gave the example that the surveying department spent eight labor hours generating data that had been generated two weeks ago by another unit. Due to the fact that the surveying department did not know that the data had already been created, a substantial effort was wasted and this has been a recurrent problem. In addition, the increase in demand of the services of San’s Consulting has placed significant pressures on the five managers whose duties are not clearly defined. For instance, you have observed that any of these managers perform duties in the operations department as well as any other unit within the firm. They are not able to perform all the functions required of them due to the ineffectiveness of the organizational structure. You and the members of your group are expected to write a report to the top-level management team regarding your analysis of the situation in the firm.
Answer:
Top level management is the most senior executives of the company. To write a report to them about the organizational structure, we mention the summary of the situation and then ask them for their measures.
Explanation:
Ineffectiveness of Organizational Structure
Summary:
The organization structure is not clearly defined, Managers are performing duties in various departments at a time.
Details:
San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job description is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.
Conclusion:
The organizational structure needs to be set and every employee should have their defined job role so they are able to complete work with efficiency.
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
Account Balance
Cash $29,400
Accounts receivable 21,600
Accounts payable 12,000
Common stock 28,300
Retained earnings 10,700
The following events apply to Oak Consulting for Year 2:
Provided $68,400 of services on account.
Incurred $3,100 of operating expenses on account.
Collected $47,400 of accounts receivable.
Paid $31,100 cash for salaries expense.
Paid $13,590 cash as a partial payment on accounts payable.
Paid a $8,500 cash dividend to the stockholders.
Required:
a. What is the amount of net income for the year?
b. What is the amount of change in retained earnings for the year?
Answer:
a. What is the amount of net income for the year?
$34,190b. What is the amount of change in retained earnings for the year?
increased by $25,690Explanation:
net income:
total service revenue $68,400salaries expense -$31,100operating expenses -$3,100net income = $34,190change in retained earnings = net income - dividends = $34,190 - $8,500 = $25,690
Revenue and expenses are recorded on the periods that they occur, regardless of when they are collected or paid respectively.
Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock 5 years ago for $16,000. Also, Pekoe sold Earl (an unrelated party) stock for $6,500 that he bought 3 years ago for $9,500. What is Pekoe's recognized gain or loss?
Answer:
The answer is $3000
Explanation:
Solution
Given that:
Pekoe sold stock to his sister rose for the amount = $12,000
The stock cost 5 years ago for Pekoe = $16,000
Pekoe sold earl stock for =$6,500
Previous stock for earl 3 years ago = $9,500
Now we have to find the recognized loss of Pekoe
THus,
The sale of stock to rose will be a loss of $ 4000
which is
($12,000 -$16,000) =$4000 loss
Thus,
The sale of stock to Earl will result to the following loss which is state below:
$6,500 - $9,500 = a loss of $3000
Therefore the recognized loss of pekoe is $3000 or -$3000
Note: A loss was recognized here, no gain earned
Answer:
Pekoe would recognize the loss of $3,000.
Explanation:
The sale of stock to Rose would result in a loss of $3,000 ($12,000 (FMV) - $16,000 (cost) = $4,000 loss).
Under the tax law, "losses from sale or exchange of property ... directly or indirectly" are disallowed between related parties. When the property is later sold to an unrelated party, any disallowed loss may be used to offset gain on that transaction.
The sale of stock to Earl (an unrelated party) also results in a loss ($6,500 (FMV) - $9,500 (cost) = $3,000 loss). This is considered an arms-length transaction.
Pekoe would recognize the loss of $3,000.
If the price of a six-pack of Pepsi falls from $4 to$3 and the quantity purchased increases 80 percent, then demand is
Answer:
low
Explanation:
If the price decreases and the quantity increases, the demand is low.
If the price increases and the quantity decreases, the demand is high.
Hope this helps!!! PLZ MARK BRAINLIEST!!!
Consider a market characterized by a Herfindahl-Hirschman index of 5,000. One of the firms in this market has a Lerner index of 0.89 and is considering a horizontal merger with a competing firm. Based on this information, it is likely that the U.S. Department of Justice will:
Answer:
reject the merger
Explanation:
Seeing since the market is highly concentrated and the firm's lerner index is also very high, meaning they have a large measure of market power in that industry then it is safe to assume that the U.S. Department of Justice will most likely reject the merger due to this high concentration and the significant power that the proposing firm already has in the market.
You want to invite one of the authors of your textbook to come to your school and speak. Name two persuasive points you would include in your letter in order to persuade them to say “yes.”