Answer:
A
Explanation:
Here, we want to know what happens in the long run if the production exceeds potential GDP in short run.
An expansionary gap cannot persist for a long time, as the economic activity exceeds sustainable levels. In the long run, the output level comes back to potential, though price levels may rise.
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $117,000. The machine's useful life is estimated to be 10 years, or 130,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 10,400 units of product. Determine the machines' second year depreciation under the straight-line method.
Answer:
$11,400
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
( $117,000 - $3,000) / 10 = $11,400
the straight line depreciation method allocates the same depreciation expense for each year. so, the depreciation expense would be $11,400
Joe has a full-time construction job and also does odd jobs for people on the weekends. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of GDP?
a. No, if this income is not likely to be reported to the government.
b. Yes, all income earned counts in GDP.
c. Yes, the fence increases the value of your house.
d. No, his is a non-market activity.
e. No, this is a leisure activity.
Answer:
a. No, if this income is not likely to be reported to the government.
Explanation:
The GDP refers to the gross domestic product which refers to the finalized value of the goods and services that are produced in the domestic country
In the given case since the job is done on an odd basis and the payment is made without any bill or evidence which is treated as an ineligible for the tax payment
Therefore the correct option is a.
Suppose that the federal administration plans to fight a deep, ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately. Aggregate demand spending components include consumption (C), investment (I), government (G), and exports (X) minus imports (M). Analyze what the aggregate demand and aggregate supply model predicts about the infrastructure plan to answer three questions. Does the level of G increase ( ), decrease (-), or stay constant (0)
Answer: Increase (+)
Explanation:
The Government component of the Aggregate Demand refers to money spent by the Government/ Public sector to provide certain needs for the economy such as Education, Defense and Healthcare.
When the government spends on infrastructural development such as the scenario described in the text, they are engaging in a form of spending known as Government Investment. This will increase the amount of G in the aggregate demand model.
According to the definition of profit, if a profit-maximizing firm will always attempt to produce its desired level of output at the lowest possible cost, then it will Group of answer choices
Complete Question:
According to the definition of profit, if a profit-maximizing firm will always attempt to produce its desired level of output at the lowest possible cost, then it will
Group of answer choices;
A. do so regardless of what type of competition exists in a market.
B. take a long-run perspective on costs, when such costs cannot be adjusted.
C. take a short-run perspective on labor costs which cannot be immediately changed.
D. breakdown its cost structure according to short-run adjustments.
Answer:
A. do so regardless of what type of competition exists in a market.
Explanation:
According to the definition of profit, if a profit-maximizing firm will always attempt to produce its desired level of output at the lowest possible cost, then it will do so regardless of what type of competition exists in a market.
Profit maximization is considered by economists as either a short run or long run process that ultimately influences a firm's price, investment or input costs and level of production that would result in the highest profit.
Hence, a firm makes profit when the total cost used for the production of a product is subtracted from the total revenue generated from the sales of that product.
Mathematically, [tex]Profit = Total Revenue - Total cost.[/tex]
Regardless of what competition exists in the market, a firm is only very much concerned with knowing the quantity of goods that it should produce in order to make profits. Having the answer to the above question would help a profit-maximizing firm to produce its desired level of output at the lowest possible cost.
Hence, as the firm sells more of its products, the total revenue is also increasing and thus making more profits with respect to the price level in the market.
Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $320,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Select the correct answer. a. 4.38% b. 2.14% c. 3.26% d. 3.82% e. 2.70%
Answer: d. 3.82%
Explanation:
ROE = Net Income / Equity so Equity need to be ascertained.
1.75 = Total Assets/ Total Equity
Total Equity = Total Assets/ 1.75
1.33 = Revenue / Total Assets
Total Assets = Revenue / 1.33
= 320,000/1.33
= $240,601.50
Total Equity = 240,601.50/1.75
= $137,486.57
Old ROE = 10,549/ 137,489.57
= 0.07672582
= 7.67%
New ROE = (10,549 + 5,250) / 137,489.57
= 0.11491053466
= 11.49%
Difference = 11.49 - 7.67
= 3.82%
A company manufactures two products. For $1.00 worth of product A, the company spends $0.40 on materials, $0.20 on labor, and $0.10 on overhead. For $1.00 worth of product B, the company spends $0.50 on materials, $0.20 on labor, and $0.15 on overhead.
Let
a = (0.40, 0.20, 0.10) b = (0.50, 0.20, 0.15)
Then a and b represent the "costs per dollar of income" for the two products. Suppose the company manufactures x dollars worth of product A and y dollars worth of product B and that its total costs for materials are $260, its total costs for labor are $120, and its total costs for overhead are $70.
Determine x and y, the dollars worth of each product produced.
Answer:
x = $400, y = $200
Explanation:
[tex]a = \left[\begin{array}{ccc}0.4\\0.2\\0.1\end{array}\right]\\b = \left[\begin{array}{ccc}0.5\\0.2\\0.15\end{array}\right][/tex]
[tex]xa + yb = \left[\begin{array}{ccc}260\\120\\70\end{array}\right] \\x \left[\begin{array}{ccc}0.4\\0.2\\0.1\end{array}\right] + y \left[\begin{array}{ccc}0.5\\0.2\\0.15\end{array}\right] = \left[\begin{array}{ccc}260\\120\\70\end{array}\right][/tex]
[tex]\left[\begin{array}{ccc}0.4&0.5\\0.2&0.2\\0.1&0.15\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}260\\120\\70\end{array}\right]\\\\\left[\begin{array}{ccc}0.1&0.15\\0.2&0.2\\0.4&0.5\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\120\\260\end{array}\right]\\[/tex]
Perform the following operation on the matrix equation above:
[tex]R_2 \rightarrow R_2 - 2R_1\\R_3 \rightarrow R_3 - 4R_1[/tex]
The result becomes:
[tex]\left[\begin{array}{ccc}0.1&0.15\\0&-0.1\\0&-0.1\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\-20\\-20\end{array}\right]\\[/tex]
Perform the following operation on the matrix equation above:
[tex]R_3 \rightarrow R_3 - R_2[/tex]
[tex]\left[\begin{array}{ccc}0.1&0.15\\0&-0.1\\0&0\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\-20\\0\end{array}\right]\\\left[\begin{array}{ccc}0.1&0.15\\0&-0.1\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\-20\end{array}\right][/tex]
From the matrix equation above:
0.1x + 0.15y = 70.........(1)
-0.1y = -20.............(2)
From equation (2)
y = (-20)/(-0.1)
y = $200
Put the value of y into equation (1)
0.1x + 0.15(200) = 70
0.1x = 40
x = 40/0.1
x = $400
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?
a. The creation of the Soviet Union and the higher tariffs on imports.
b. Growing jingoistic nationalism and a negative population growth rate in major international markets.
c. Resistance to direct investment and increasing competition in export markets
d. Increasing Chinese domination in the manufacturing sector and the falling dollar in global markets
e.The decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market
Answer:
The correct answer is the option C: Resistance to direct investment and increasing competition in export markets.
Explanation:
To begin with, the decade of 1960's was completely full of changes in the american life due to the big events that happened during that time. Moreover, the two most important challenges that the american economy had to face up were the fact that the direct investment was hardly constat and did not increase and the current fight in order to increase the competition in exports markets and all that because of the high expenditures that the government did due to the Vietnam War and the Space Race. Also, while the government spending increased the exports were reduce in the market because of the increase in the China's techonolgy exports.
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements Depletion Expense, indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A. Added to Net Income
B. Deduct from Net Income
1. Increase in accounts receivable
2. Increase in inventory
3. Decrease in prepaid expenses
4. Decrease in accounts payable
5. Increase in accrued liabilities
6. Increase in income taxes payable
7. Depreciation expense
8. Loss on sale of investment
9. Gain on disposal of equipment
10. Amortization expense
Answer:
1.B
2.B
3.A
4.B
5.A
6.A
7.A
8.A
9.B
10.A
Explanation:
The Net Income is adjusted with non-cash items and changes in working capital to reach Net Cash Flow from Operating Activities.
The Non Cash Expenses previously deducted must be added back whilst the Incomes previously included must be deducted from it.
The items that increase Working Capital must be deducted whilst items that decrease working capital must be added back.
In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic profit. True or False
Answer: False
Explanation:
In the long run, if there are still firms making an Economic profit, this would encourage other firms to enter the market. Once this happens the firms would stop making an Economic profit. Should they start making an economic loss, some firms would leave the market which would then bring the Economic losses to zero.
Marigold Corporation acquires a coal mine at a cost of $420,000. Intangible development costs total $105,000. After extraction has occurred, Marigold must restore the property (estimated fair value of the obligation is $84,000), after which it can be sold for $168,000. Marigold estimates that 4,200 tons of coal can be extracted.
Required:
If 735 tons are extracted the first year, prepare the journal entry to record depletion.
Answer:
Inventory Dr $77,175
To Accumulated depletion $77,175
(being the depletion is recorded)
Explanation:
The journal entry is shown below:
Inventory Dr $77,175
To Accumulated depletion $77,175
(being the depletion is recorded)
For recording this we debited the inventory as it increased the assets and credited the accumulated depletion as it decreased the assets
The computation is shown below:
= (Cost of coal mine + intangible development cost + estimated fair value of the obligation - sales value) ÷ (extracted estimated tons) × (extracted tons for the first year)
= ($420,000 + $105,000 + $84,000 - $168,000) ÷ (4,200 tons) × (735 tons)
= $77,175
A customer recently wrote your bakery a letter complaining that the cherry scones were too crumbly and dry. Although the customer already ate all the scones, he is demanding a full refund. Your company does not honor refunds on food that has been consumed What could you include in the closing of your response to restore confidence?
1. A statement of company policy regarding refunds
2. A freebie or promotional discount
3. A defensive remark
4. An alternative product
Answer:
1. A statement of company policy regarding refunds
Explanation:
A statement of company policy regarding refunds would give clarity to the customer on the reason why the request for refund was denied.
The annual demand of an appliance company is 8000 units. The production capacity is 200 units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400 refrigerators to be produced in each production run. Assume 250 working days per year. a) Compute the daily demand of this product. b) If the company were to continue to produce 400 units each time production starts, how many days would production continue? c) How many production runs per year would be required? What would the annual cost be? d) how many refrigerators would be in the inventory when production stops? What would be the average inventory level in this case? e) If the company produced 400 refrigerators at a time, what would the total annual set up cost and holding cost be?
Answer and Explanation:
The calculations and computations as per the question requirement are given below
a. Daily demand for this product is
Daily demand = Annual demand ÷ Working days per year
= 8,000 ÷ 250
= 32 units
b. The calculation of the number of days for continuing the production is
= current production plan calls ÷ production capacity
= 400 ÷ 200
= 2 days
c. The production runs per year required is
Number of production runs per year = Annual demand ÷ Production quantity
= 8,000 ÷ 400
= 20
d. In the case of production stops, the number of refrigerators and the average inventory is
But processing this first we have to find out the maximum inventory level which is
= Q × (1 - d ÷ p)
As
Q represents Production quantity
d represents daily demand
p represents production capacity
Therefore, the maximum inventory level is
= 400 × (1 - 32 ÷ 300)
= 400 × (1 - 0.16)
= 400 × 0.84
= 336 refrigerators
Hence, the average inventory is
= Maximyum inventory ÷ 2
= 336 refrigerators ÷ 2
= 168 refrigerators
e. The total annual set up cost and holding cost is
But before this, we need to compute it individually
Annual set up cost = Number of production runs per year × Set up cost
= 20 × $120
= $2,400
Annual holding cost = Average inventory level × Holding cost
= 168 × $50
= $8,400
Total annual set up cost and holding cost is
= $2,400 + $8,400
= $10,800
" Some companies have developed creative ways to build communities that match customer lifestyles. This type of marketing has led to higher profits. For the customers, this is part of _________________. Group of answer choices"
Answer:
Relationship marketing
Explanation:
Marketing is a concept of presenting products to customer. There are various ways to market a product. Relationship marketing is a concept in which customer is the main focus, his needs, demands and customization requirements are kept in mind before referring any product to them. Many companies have formed a strategy in which product is designed according to customer lifestyle maintenance requirements. This will lead to higher profit as switching cost for customer is high and also their required product will not be available easily in the market.
Luana sells Beta Corporation stock with an adjusted basis of $58,000 and a fair market value of $70,000 for $64,000.
Luana has a realized of ________________ $ .
Answer:
Gain of $6,000
Explanation:
Since we were told that Luana sells Beta Corporation stock with an adjusted basis amount of $58,000 and a fair market value of the amount of $70,000 for $64,000 this means we have to less $64,000 from $70,000 which will give us a gain of $6,000
$70,000 -$64,000
=$6,000
This means that Luana has realized a Gain of $6,000
Red Star Copy Service processes 2,100,000 photocopies per month at its service center. Approximately 50 percent of the photocopies require collating. Collating is currently performed by high school and college students who are paid $9 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity of 6,000,000 photocopies, with lease and operating costs totaling $1,550, plus $0.05 per 1,000 units collated.
Required:
A. Determine the total costs of collating 500,000 and 1,700,000 per month:
1. With student help.
2. With the collating machine.
B. Determine the monthly volume at which the automatic process becomes preferable to the manual process.
Answer:
A. The total costs of collating 500,000 per month With student help is $900
The total costs of collating 1,700,000 per month With student help is $3,060
The Total costs of collating 500,000 per month With the collating machine is $1,575
The Total costs of collating 1,700,000 per month With the collating machine is $1,635
B. The monthly volume at which the automatic process becomes preferable to the manual process is 885,714
Explanation:
A. In order to calculate the total costs of collating 500,000 and 1,700,000 per month With student help we would have to make the following calculations:
total costs of collating 500,000 per month With student help=(number of copies to be collating/average of copies per hour)*price per hour
total costs of collating 500,000 per month With student help=(500,000/5,000)$9
total costs of collating 500,000 per month With student help=$900
total costs of collating 1,700,000 per month With student help=(1,700,000/5,000)*$9
total costs of collating 1,700,000 per month With student help=$3,060
In order to calculate the total costs of collating 500,000 and 1,700,000 per month With the collating machine we would have to make the following calculations:
total costs of collating 500,000 per month With the collating machine= lease and operating costs+(number of copies to be collating/units collated)*additional price
Total costs of collating 500,000 per month With the collating machine= $1,550+(500,000/1,000)*$0.05
Total costs of collating 500,000 per month With the collating machine= $1,575
Total costs of collating 1,700,000 per month With the collating machine= $1,550+( 1,700,000/1,000)*$0.05
Total costs of collating 1,700,000 per month With the collating machine= $1,635
B. In order to calculate the monthly volume at which the automatic process becomes preferable to the manual process we would have to use the following formula:
the monthly volume at which the automatic process becomes preferable to the manual process is cost with students help=cost with collating machine
Therefore, (x/5,000)*$9=$1,550+(x/1,000)*$0.05
$8,750x=$7,750,000,000
x=885,714
The monthly volume at which the automatic process becomes preferable to the manual process is 885,714
intext:"Callie Company received a $700 payment from a customer previously billed for services performed. The journal entry to record this transaction would include a"
Answer:
Debit Cash account $700
Credit Accounts receivable $700
Explanation:
When revenue is earned but cash is yet to be received,
Debit Accounts receivable
Credit Revenue account
When cash is received,
Debit Cash account
Credit Accounts receivable.
As such, when a company received $700 from a customer previously billed for services performed,
Debit Cash account
Credit Accounts receivable
Knowledge Check 01 As of December 31, Marr, Inc., has accrued benefits to its employees for medical insurance (in the amount of $12,000) and a contribution to a retirement program (at 10% of the employees' $200,000 gross salary). Prepare the December 31 entry for Marr by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Journal Entry to record the employee benefit expense
Dr. Employee Benefits Expense $32,000
Cr. Employee Medical Insurance Payable $12,000
Cr. Employee retirement program payable $20,000
Explanation:
Employee benefits expense is the sum of medical insurance and retirement program expenses. As these payments are accrued and not yet been paid, so these will be classified as liabilities.
Employee Medical Insurance expense = $12,000
Employee retirement expense = $200,000 x 10% = $20,000
Employee benefits expense = Employee Medical Insurance + Employee retirement program
Employee benefits expense = $20,000 + $12,000
Employee benefits expense = $32,000
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:
Answer:
$193,000
Explanation:
Carter Company
Sales 4,525,000
Cost of goods sold -2,550,000
1,975,000
Operating expenses -1,372,000
Net Income 603,000
Average invested assets 4,100,000
Target income 10% 410,000 410,000
Residual income $193,000
What is the relationship between organizational needs analysis and strategic planning? How can tying HRD programs to an organization’s strategicplan make it easier to justify requests for resources to develop and deliver HRD programs?
Explanation:
An organization's strategic planning comprises the organizational values, its mission, vision and objectives and defines a company's strategic action plans in detail so that its long-term objectives and goals are achieved.
To be effective, strategic planning must understand each system in the organization and correctly allocate the use of resources according to the needs of the company.
The analysis of organizational needs will help the company to monitor its resources and its influence on the internal and external environment, developing ideal alternatives in a market where there are changes in consumer behavior, innovation, new technologies, etc.
The programs of the human resources department must therefore be linked to the strategic plan of an organization, to facilitate requests for resources to develop and provide HRD programs, since the needs of personnel directly impact the way in which the strategic actions foreseen by the planning are developed. Organizational culture should be based on positive values that seek to motivate employees to be productive and perform their duties with dedication and excellence, so HRD programs must be considered as an essential part of the development of the internal forces that will lead an organization to success.
Matt's Machine Company has borrowed $10 million for four months at 5.5% APR, using inventory stored in a field warehouse as collateral. The warehouse fee is 0.5%, payable at the beginning of the loan. What is Matt's EAR?
Answer:
The Matt's EAR is 7.24%
Explanation:
The money borrowed by the company (L) = $10 million
Time period for the loan (T) = 4 months
Rate given (APR) = 5.5%
Per Month rate R=5.5%/12=0.46%
The fee of warehouse that is paid at the starting of the loan = 0.5%
Now we have to calculate the Matt’s EAR.
Warehouse fees =0.5%
So Fees F= 0.5% × L = 0.5% × $10 = $0.05 millions
Therefore, the Net amount we get N = L – F = 10 - 0.5 = $9.95 millions
Assume r be the per month EAR
N*(1+r)^4 = L*(1+R)^4
9.95*(1+r)^4 = 10*(1+0.46%)^4
r=0.58%
EAR =(1+r)^12-1= (1+0.58%)^12-1 = 7.24%
Which policy will allow a health care institution to achieve cultural competence most effectively?
A) Making all client education materials available in the client's native dialect.
B) Recruiting culturally diversed health care providers to staff the institution.
C) Providing a merit bonus to employees who complete cultural awareness courses.
D) Implementing a closed circuit television system to broadcast multilingual programming.
Answer:
B)
Explanation:
Cultural competence refers to the ability to understand, communicate with, and effectively interact with people across various cultures. Therefore the best policy to achieve this would be recruiting culturally diverse health care providers to staff the institution. Making sure that the staff is culturally diverse will increase the institutions probability of being able to properly interact and understand all cultures that they do business with.
Bank A pays 2% interest compounded annually on deposits, while Bank B pays 1.75% compounded daily.
a. Based on the EAR (or EFF%), which bank should you use?
b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year?Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
Answer:
Bank A
Yes
Explanation:
Effective annual rate = ( 1 + periodic interest rate)^m - 1
periodic interest rate = interest rate / number of compounding per year
m = number of compounding per year
Bank A = (1 + 0.02) - 1 = 2%
Bank B = (1 + 0.0175 / 365)^365 - 1 = 1.7654%
Bank A should be chosen because the EAR is higher
Yes, it should. if one plans to withdraw during the year, Bank B would be a better option because the amount invested would earn interest when withdrawn.
if one plans to withdraw within the year, and he invests in Bank A, if withdrawal is made within the year, all interest would be forfeited.
a. Bank A should be selected.
b. Yes
Calculation of the EAR:Since we know that
Effective annual rate = ( 1 + periodic interest rate)^m - 1
Here,
periodic interest rate = interest rate / number of compounding per year
m = number of compounding per year
Now
Bank A = (1 + 0.02) - 1 = 2%
Bank B = (1 + 0.0175 / 365)^365 - 1 = 1.7654%
Bank A should be selected since the EAR is higher
b.
Yes, it should. In the case, one plans should be withdrawn at the time of year so here bank B should be a better option since the amount invested earned interest at the time of withdrawn.
Learn more about rate here: https://brainly.com/question/24347131
"The conversion ratio of these convertible debentures is set at issuance at 200:1. The trust indenture for the debentures includes an "anti-dilutive" covenant. The company wants to issue 50,000 additional common shares. The conversion price after the issuance of the additional common shares will be:"
Answer:
$4
Explanation:
The conversion price of the convertible bonds set at issuance was $5 per share ($1000 par/200 conversion ratio). If the company issues more common shares, the market value of outstanding shares will fall. For instance, if the common stock price is trading at $5, Therefore, the bond and the common are at parity. If 25% more share isnissued by the company as it does in the aforementioned example -- there would be $1000000 share of common at $5 par or 200000 shares outstanding and the company intends to share 50000 more shares, or 25% more), the adjusted conversion price of the stock after issuance will now become $5/1.25 = $4 per share.
Nonetheless, i the conversion isn't being adjusted, the convertible security which was "at the money" goes "out the money". The protect convertible security holders, an anti-dilutive covenant is included in the trust indenture. The conversion price is adjusted for these dilutive effects. The new conversion pricewill be $5 original price/1.25 = $4
Use the following demand schedule to determine total and marginal revenues for each possible level of sales.
Product
Price Quantity Demanded Total Revenue Marginal Revenue
$2 0 $ ---
2 $
2 2
2 3
2 4
2 5
What can you conclude about the structure of the industry in which this firm is operating?
The industry is purely monopolistic.
The industry is purely oligopolistic.
The industry is an example of monopolistic competition.
The industry is purely competitive.
Answer:
please check the attached image for the completed table containing the answers
The industry is purely competitive.
Explanation:
please check the attached image for a clear image of the table used in answering this question
Total revenue = product price x quantity demanded
for example, total revenue when quantity demanded is 2 is $ x 2 = $4
Marginal revenue is change in total revenue.
marginal revenue = total revenue - previous total revenue
e.g. marginal revenue when quantity demanded is 2 is = $4 - $2 = $2
the structure of the industry is a purely competitive market because price is equal to marginal revenue.
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
On November 1, 2021, New Morning Bakery signed a $195,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022. New Morning Bakery should record which of the following adjusting entries at December 31, 2021?
A. Debit Interest Expense and credit interest Payable. $1950.
B. Debit Interest Expense and credit Interest Payable, $5850.
C. Debit Interest Expense and credit Cash, $1950.
D. Debit Interest Expense and credit Cash, $5850.
Answer:
Option A is correct
Explanation:
The amount owed and the interest would be paid in six months' time ,hence,prior to that time,any interest incurred would be accrued for.
December 31 2021 is two months after the note payable agreement was reached ,as a result,there is need to record accrued interest for two months,November and December.
Interest accrued=$195,000*6%*2/12=$1950
Interest expense is debited while interest payable is credited
Webster preferred stock pays an annual dividend of $6.20 a share. What is the maximum price you should pay today to purchase this stock if you desire a rate of return of 14.25 percent
Answer:
Maximum price = $43.50
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return
This principle can be applied as follows:
The value of cash flow the stock today is the present value of the future cash flow discounted at the required rate of return
The Di
P= D/ke
P= price of the stock today,- ?
D- annual dividend- 6.20
Ke- Cost of equity-14.25%
Price = 6.20/0/14.25=43.50
Maximum price = $43.50
Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October:
Cash in bank according to the general ledger $7,030
Cash according to the October 31 bank statement 16,240
Outstanding checks as of October 31 4,640
Bank service charge for October 20
Note receivable, including interest collected by bank in October 7,520
Requied:
a. Determine the amount of cash receipts stolen by the sales clerk.
b. What accounting controls would have prevented or detected this theft?
Answer:
a. Determine the amount of cash receipts stolen by the sales clerk.
$2,930
b. What accounting controls would have prevented or detected this theft?
It is simple, one single person cannot be in charge of collecting cash and making the deposits. At least 2 people must be involved in the process, that way, there will always be someone controlling what the other person does.
Explanation:
Reconciled bank statement:
Bank statement $16,240
- Outstanding checks $4,640
Reconciled bank statement $11,600
Cash account reconciliation:
Cash account balance $7,030
+ Note collected by bank $7,520
- Bank fees $20
Reconciled cash account $14,530
Amount stolen by sales clerk = $14,530 - $11,600 = $2,930
Tomas is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best aid he can use to accomplish this?
Answer:
The best aid to accomplish this is a knowledge of the foreign country's history
Explanation:
If Tomas wants to understand the way people in different countries think and act then he has to have a knowledge of the history of these people from different countries so that the company can serve them appropriately. This would help to foster better customer service delivery and also aid in effective communication. This is a great step towards success for the company.
Suppose you bought a bond with an annual coupon rate of 7.4 percent one year ago for $897. The bond sells for $926 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year
Answer:
Total dollar return is $103.00
Explanation:
The total dollar return on the investment comprises of the increase in price as well as the annual coupon of 7.4% of face value received over the holding period of one year.
annual coupon=face value*coupon rate=$1000*7.4%=$74.00
increase in bond's price=$926-$897=$29.00
Total dollar return on investment=$74.00+$29.00
Total dollar return on investment=$103
Arrange six departments into a 2 x 3 grid so that these conditions are satisfied: 1 close to 2, 5 close to 2 and 6, 2 close to 5, and 3 not close to 1 or 2.
Answer:
1?3
256
Explanation:
If one is close to 2, then but so is five, and 6 is near five then they all have to be on there own row. Seeing as 3 is close not close to 1, or 2, it has to be the furthest away from them as it can be, and the questionmark is there because you only have five numbers, (1,2,3,5,6) so there isn't enough info for the question mark to have an answer.