The accounting system should ensure that payments are made only for bona fide expenses incurred by the company and that bills are paid in a timely fashion. Option D is correct.
The accounting system should ensure that payments for bills meet two key requirements:
Payments are made only for bona fide expenses incurred by the company: This means that the accounting system should have controls in place to verify that the bills being paid are legitimate and related to valid expenses of the company. It should prevent unauthorized or fraudulent payments and ensure that the company's funds are used appropriately.Bills are paid in a timely fashion: The accounting system should include procedures and processes that enable prompt payment of bills within the agreed-upon terms. Timely payment helps maintain good relationships with vendors, avoids late payment penalties, and ensures the smooth functioning of business operations.By incorporating these two aspects into the accounting system, companies can ensure that their bill payment process is effective, efficient, and aligned with good financial management practices. It promotes financial integrity, minimizes the risk of fraudulent or unauthorized payments, and maintains positive relationships with vendors and suppliers.
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9. Which of the following operational areas are
not impacted by Network Management and Provider
Services?
Group of answer choices
Sales, Enrollment, and Member Services
Claims
Pharmacy benefit manager
The operational area of "Pharmacy benefit manager" is not impacted by Network Management and Provider Services.
Network Management and Provider Services typically focus on managing and coordinating healthcare provider networks, ensuring network adequacy, negotiating contracts with providers, and overseeing the quality and efficiency of healthcare services. These functions primarily relate to the provider network and the relationships between the healthcare organization and the providers.
On the other hand, areas such as Sales, Enrollment, and Member Services, as well as Claims, are directly impacted by Network Management and Provider Services. Sales and Enrollment processes involve communicating network details to potential members and facilitating their enrollment in the network. Member Services also rely on accurate network information to address member queries and provide assistance. Claims processing involves validating provider information, ensuring network participation, and facilitating accurate billing and reimbursement processes.
However, the role of Pharmacy benefit manager (PBM) primarily involves managing prescription drug benefits, formularies, pharmacy networks, and pharmacy claims processing. While PBMs may collaborate with healthcare organizations and insurers, their operational area is more specific to pharmaceutical services and may not be directly impacted by Network Management and Provider Services.
Therefore, the answer is "Pharmacy benefit manager."
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How would MMM use the BCG portfolio analysis to assess
their product / business strategy?
MMM (Minnesota Mining and Manufacturing Company) would use the BCG portfolio analysis to evaluate their product/business strategy. The BCG analysis provides a framework for categorizing products and services according to their market share and growth rate.
It helps companies make strategic decisions about how to allocate resources and invest in their product lines. The BCG matrix has four categories: stars, cash cows, question marks, and dogs. Stars have a high market share and high growth rate, while cash cows have a high market share and low growth rate. Question marks have a low market share and high growth rate, while dogs have a low market share and low growth rate.Each of these categories requires different strategies. For example, stars should be invested in heavily to maintain their growth rate, while cash cows should be milked for their profits. Question marks require careful analysis to determine whether they are worth investing in, while dogs should be phased out to make way for more profitable products.MMM could use this framework to evaluate its product lines and determine which ones are worth investing in, and which ones should be divested or discontinued. They could also use it to assess potential new products and services to determine whether they are likely to be profitable. Overall, the BCG matrix is a useful tool for strategic planning and can help companies like MMM make informed decisions about their product/business strategy.
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Based on this model, firms earn revenue when ________ purchase ________ in product markets. Suppose Eleanor earns $575 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Darnell $200 per week to wash cars. Darnell uses $125 to purchase necklace from Classy's Jewelry Store.
Identify whether each of the following events in this scenario occurs in the factor market or the product market. Eleanor earns $575 per week working for Classy's Jewelry Store
Eleanor spends $10 to get her car washed. Darnell spends $125 to purchase necklace from Classy's Jewelry Store.
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs.
Check all that apply. - Eleanor's labor - The $125 Darnell spends to purchase necklace from Classy's Jewelry Store - The $200 per week Darnell earns working for Spotless Car Wash - The car wash Eleanor receives
Eleanor earns $575 per week working for Classy's Jewelry Store - This event occurs in the factor market, as Eleanor is providing her labor (input) to the firm.
Eleanor spends $10 to get her car washed - This event occurs in the product market, as Eleanor is purchasing a service (car wash) for personal use.
Darnell spends $125 to purchase a necklace from Classy's Jewelry Store - This event occurs in the product market, as Darnell is purchasing a product (necklace) for personal use.
Elements of this scenario that represent a flow from a household to a firm:
- Eleanor's labor: Eleanor provides her labor to Classy's Jewelry Store in exchange for income.
- The $125 Darnell spends to purchase a necklace from Classy's Jewelry Store: Darnell's spending contributes to the revenue of Classy's Jewelry Store.
- The $200 per week Darnell earns working for Spotless Car Wash: Darnell's earnings from Spotless Car Wash represent a flow of income from the firm to the household.
The car wash Eleanor receives is not a
is a service received by Eleanor, but it does not involve an exchange of money or inputs with a firm.
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Consider the following linear programming:
Min 2A + 2B
s.t A
+ 3B >= 12
3A
+ B >= 24
A,
B >= 0 a) Find the optimal solution using the graphical solution procedure.
b) If the objective function is changed to 2
A
+
6
B
,
what will the optimal solution be?
c) How many extreme points are there? What are the values of A and B at each extreme point?
A. The minimum value of 2A + 6B is 24. B. The minimum value of 2A + 6B is 24. c) The values of A and B at each extreme point are given below: Extreme Point A B(0, 0) 0 0(8, 0) 8 0(4, 4) 4 4
a) Find the optimal solution using the graphical solution procedure. The constraints of the given linear programming problem are: A + 3B ≥ 12, 3A + B ≥ 24, A, B ≥ 0Solving these inequalities to get the feasible region: Plotting the above feasible region graph, we get:
To find the optimal solution, we need to find the intersection of line 2A + 2B = C (where C is constant) and the feasible region. For example, if C = 8, we get the line 2A + 2B = 8. Graphing this line on the above feasible region, we get: We can see that the line 2A + 2B = 8 does not intersect the feasible region. Therefore, we need to try other values of C until we find the optimal solution.
The results of these calculations are tabulated below: By comparing the objective function value of these intersection points, we see that the optimal solution of the given problem is A = 4, B = 4. Therefore, the minimum value of 2A + 2B is 16.b) If the objective function is changed to 2A + 6B, the optimal solution will change. We can find the new optimal solution using the same graphical method as above. Line 2A + 6B = C will be plotted on the same feasible region graph. The results of these calculations are tabulated below: We can see that the optimal solution of the modified problem is A = 0, B = 4. Therefore, the minimum value of 2A + 6B is 24.
c) How many extreme points are there? What are the values of A and B at each extreme point?
There are three extreme points in the feasible region:
(0, 0), (8, 0), and (4, 4).
The values of A and B at each extreme point are given below: Extreme Point A B(0, 0) 0 0(8, 0) 8 0(4, 4) 4 4
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What is a minimum wage? What are the likely effects on the labor
market? Who wins and who loses from a minimum wage?
A minimum wage is a legally mandated wage floor that sets the lowest hourly rate at which employers are required to compensate workers. It is intended to protect workers from excessively low wages and ensure a basic standard of living.
The effects of a minimum wage on the labor market can be complex and depend on various factors, including the level of the minimum wage, the elasticity of labor demand and supply, and the overall economic conditions. Some likely effects include:
1. Increase in wages: A minimum wage can lead to higher wages for workers earning below the mandated threshold, improving their income levels.
2. Reduction in employment: Employers facing higher labor costs may respond by reducing their workforce, cutting back on hours, or automating certain tasks to offset the increased expenses.
3. Redistribution of income: A minimum wage can redistribute income from employers or business owners to low-wage workers, potentially reducing income inequality.
The winners and losers from a minimum wage can vary. Low-wage workers who directly benefit from higher wages are likely to be winners, as their incomes improve. However, some potential losers include small businesses, which may face financial challenges due to increased labor costs, and workers who may face reduced employment opportunities or hours as a result of businesses adjusting to the minimum wage.
It is important to note that the specific effects of a minimum wage can vary across different industries, regions, and economic contexts. The overall impact on the labor market is subject to ongoing debate among economists, who analyze empirical evidence and consider the trade-offs associated with implementing a minimum wage policy.
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A schedule that shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specific period of time is called (a) supply (b) demand (e) quantity supplied (d) quantity demanded
If a schedule that shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specific period of time is called (b) demand.
Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a specific time period. A schedule that shows these different quantities at different prices is known as a demand schedule.
The demand schedule illustrates the relationship between the price of a product and the quantity demanded by consumers. It outlines the quantities that consumers are willing to buy at different price levels, typically in a tabular form. The demand schedule helps to understand how changes in price affect consumer behavior and the quantity demanded.
By examining the demand schedule, economists can construct a demand curve, which is a graphical representation of the relationship between price and quantity demanded. The demand curve slopes downward, indicating that as the price of a product decreases, the quantity demanded increases, and vice versa.
In summary, the demand schedule provides valuable information about consumer preferences and their willingness to purchase a product at different price points, contributing to the understanding of market dynamics and pricing decisions.
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Understanding Peer Effects of Unemployment. You might think it would be worse if other people are unemployed at the same time as you were because it would be harder to find a job. But the psychological evidence shows the opposite. Unemployment may seem less painful to individuals if their peers are also unemployed because
Unemployment may seem less painful to individuals if their peers are also unemployed because of social comparison and shared experiences.
Psychological evidence suggests that individuals tend to engage in social comparison, especially during times of hardship such as unemployment. When surrounded by peers who are also unemployed, individuals may perceive their own situation as more acceptable or normal. This perception can alleviate feelings of isolation and reduce the stigma associated with unemployment.
Moreover, shared experiences with peers facing unemployment can create a sense of solidarity and support. Individuals can find comfort in knowing that they are not alone in their struggles and can exchange advice, resources, and emotional support. This social support network can help mitigate the negative psychological impact of unemployment and enhance coping mechanisms.
Additionally, witnessing others experiencing unemployment may provide individuals with a broader perspective on the job market and the challenges faced by job seekers. This knowledge can help individuals adjust their expectations and strategies accordingly, reducing feelings of frustration and hopelessness.
It is important to note that while the psychological impact of unemployment may be influenced by peer effects, the overall economic challenges and difficulties in finding a job remain unchanged.
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Which of the following is included in logistics?
a. Creating teams and increase communication in the company
b. Raw material
C Employees transportation
d. Maintaining products
Logistics includes raw material management, employees transportation, and maintaining products. However, creating teams and increasing communication in the company are not directly related to logistics.
The correct option is a. Creating teams and increase communication in the company
Logistics refers to the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from the point of origin to the point of consumption. It encompasses various activities involved in the supply chain management to ensure efficient and effective movement of products or services. Creating teams and increasing communication in the company are more related to organizational management and fostering collaboration within the company, rather than specific logistics activities. While effective teamwork and communication are important for overall organizational efficiency, they are not considered direct components of logistics processes.
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Which of the following is (are) included in business expenditures in measuring GDP? A. changes in inventories. B. personal consumption expenditures. C. transfer payments. D. all of the above.
The correct answer to the question, GDP (Gross Domestic Product) is a measure of a nation's economy. It is the overall value of all final products and services created within a country's borders over a certain period. The correct option is C) transfer payments.
GDP is the market value of all final products produced and sold by a nation's economy in a given period. The key categories of the components used to calculate the GDP are personal consumption expenditures (C), gross private domestic investment (I), government consumption and gross investment (G), and net exports (NX).A. Changes in inventories are a part of business expenditures when measuring GDP. Inventories are the goods that a company has in storage to be sold or used in the manufacturing process, and the addition of goods to inventories adds to the country's GDP.B. Personal consumption expenditures are part of the GDP calculation, as they measure the value of goods and services that people purchase.
The term refers to the total amount of money that people spend on goods and services, excluding those which are invested or saved.C. Transfer payments are not included in the GDP calculation. Transfer payments refer to payments made to individuals who do not provide anything in exchange for the payment, such as Social Security and welfare payments.D. All of the above, Changes in inventories, Personal consumption expenditures, and Government consumption and gross investment are all included in business expenditures in measuring GDP.
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Wheeler Corporation constructed a building at a cost of $20,000,000, excluding any interest. The weighted average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $600,000. If the salvage value is $1,600,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is: Select one: O a $475,000 b. $490,000 O c. $500,000 O d. $515,000 e. $675,000
Given,The cost of constructing a building = $20,000,000 Weighted average accumulated expenditures = $8,000,000 Actual interest = $1,200,000 Avoidable interest = $600,000 Salvage value = $1,600,000 Useful life = 40 years The formula for straight-line depreciation is,Depreciation expense = (Cost – Salvage value) / Useful life Depreciation expense for the first full year = ($20,000,000 - $1,600,000) / 40= $460,000
Wheeler Corporation constructed a building at a cost of $20,000,000, excluding any interest. The weighted average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $600,000. If the salvage value is $1,600,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is $460,000.The straight-line depreciation method is a method of computing depreciation by dividing the cost of an asset by the number of years it is expected to last. Each year, the same amount of depreciation is charged to the asset, regardless of whether it is the first or last year of its useful life. The formula for straight-line depreciation is,Depreciation expense = (Cost – Salvage value) / Useful lifeUsing the above formula,Depreciation expense for the first full year = ($20,000,000 - $1,600,000) / 40= $460,000The avoidable interest is subtracted from actual interest because it is not necessary to pay interest on capital expenditures that have not been made. The capitalized interest is found by multiplying the weighted average accumulated expenditure by the interest rate. Interest is subtracted from the capitalized interest to obtain the amount of interest to be capitalized.
The depreciation expense for the first full year using the straight-line method is $460,000.
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In 1992, South Central Los Angeles exploded into riots...again. Why? What had improved for black Americans in the city since the 1960s, and what problems remained? Or what new problems emerged? And what did these portend for the future of race and American cities?
The 1992 riots in South Central Los Angeles, also known as the Los Angeles uprising, were sparked by the acquittal of four white police officers involved in the beating of Rodney King, a black motorist. However, the riots were not solely a response to this incident but were a result of deeper-rooted issues in the city. To understand why the riots occurred, it is important to consider the context of racial tensions, socioeconomic conditions, and systemic inequalities prevalent at the time.
Since the 1960s, there were both improvements and persisting problems for black Americans in Los Angeles. Some improvements included advancements in civil rights legislation, increased access to educational opportunities, and the rise of black political representation. These changes provided avenues for empowerment and social mobility for some black residents.
However, significant problems remained, particularly in marginalized communities like South Central Los Angeles. Economic disparities persisted, with limited job opportunities and high unemployment rates among black residents. Racial discrimination and police brutality continued to plague the community, leading to a strained relationship between law enforcement and black residents.
New problems also emerged over the years. The influx of drugs, particularly crack cocaine, into inner-city communities exacerbated social and economic challenges. Drug-related violence, gang activity, and the associated destabilization of neighborhoods further compounded the problems faced by black Americans in Los Angeles.
The riots served as a powerful expression of frustration and anger over these longstanding issues. They highlighted the deep-seated inequalities, racial tensions, and systemic injustices that were not adequately addressed. The riots exposed the underlying social, economic, and political dynamics that contributed to the marginalization of black communities.
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In some economies, a significant portion of the internal debts,
that is, debts of one domestic resident to another are in foreign
currency terms. This phenomenon is called "liability
dollarization�
Liability dollarization refers to a situation in which a significant portion of internal debts within an economy are denominated in foreign currency, typically the US dollar. This phenomenon is prevalent in economies where there is a high level of confidence in foreign currencies, particularly the US dollar, and a lack of trust in the stability and value of the domestic currency.
Liability dollarization can occur in both the public and private sectors. In the public sector, it often involves government borrowing in foreign currency to finance public projects or cover budget deficits. In the private sector, liability dollarization can be observed in bank loans, corporate debts, or individual borrowing denominated in foreign currencies.
The main motivation behind liability dollarization is to hedge against the risks associated with domestic currency depreciation, inflation, or financial instability. Borrowers may prefer to hold debt in a stable foreign currency to protect themselves from potential losses due to devaluation or hyperinflation of the domestic currency.
To manage liability dollarization, policymakers often implement measures to reduce currency risk, promote local currency borrowing, and strengthen domestic financial systems. These measures may include macroeconomic stability, prudent fiscal and monetary policies, developing local currency debt markets, and enhancing financial regulation and supervision.
Overall, liability dollarization reflects the preferences and concerns of economic agents in an economy with regard to currency stability and risk management. It highlights the challenges and complexities associated with maintaining a stable and credible domestic currency in the face of global financial dynamics.
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4- What are the essential characteristics of public goods? Why might It be difficult for private sector to supply public goods? Please briefly discuss. 5- How does an overvalued dollar affect U.S. exports and imports? Please briefly discuss. 6- What are the arguments for and against globalism. Please briefly discuss. 7- In what ways do company Investments in research and development create positive externalities?
Public goods are characterized by non-excludability and non-rivalry, meaning they are available to all individuals and one person's consumption does not diminish others' ability to consume. The private sector may struggle to supply public goods due to the free-rider problem and the absence of price mechanisms to incentivize production.
An overvalued dollar affects U.S. exports and imports in different ways. It makes exports more expensive for foreign buyers, reducing their demand. At the same time, imports become relatively cheaper for U.S. consumers, increasing their demand. This leads to a trade deficit as exports decrease and imports rise. The arguments for globalism include increased economic growth, job creation, and access to global markets. It promotes specialization, efficiency, and technological progress. However, critics argue that globalism can lead to job displacement, income inequality, and exploitation of labor in developing countries.
Company investments in research and development (R&D) create positive externalities by generating spillover effects. R&D investments often result in new knowledge, innovations, and technological advancements that benefit society as a whole. These spill-overs can lead to productivity gains, improved standards of living, and the development of new industries and markets. Additionally, R&D investments contribute to the overall knowledge base and may be shared or used by other firms and industries, fostering further innovation and economic growth.
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Maggie Enterprises issued $180,000 of 6%, 5-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield (a) 6%, (b) 8%, and (c) 4%.
Use financial calculator or Excel to calculate answers. Round answers to the nearest whole number.
a.) Answer
b.) Answer
c.) Answer
Maggie Enterprises issued $180,000 of 6%, 5-year bonds with interest payable semiannually
a) The issue price of the bonds when priced to yield 6% can be calculated using a financial calculator or Excel. Assuming semiannual interest payments, the formula to calculate the present value of the bond is: PV = C * [1 - (1 + r)^(-n)] / r + M / (1 + r)^n Where:
PV = Present value or issue price of the bond
C = Coupon payment per period (semiannual interest payment)
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For Gundy Company, units to be produced are 6,200 in quarter 1 and 8,680 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2022.
For preparing a direct labor budget for the 6 months ending June 30, 2022, we need to determine the labor hours required and labor costs incurred to produce the budgeted units.
For preparing a direct labor budget for the 6 months ending June 30, 2022, we need to determine the labor hours required and labor costs incurred to produce the budgeted units. Let us prepare the direct labor budget by quarters as follows:Direct labor budgetQuarter 1Quarter 2TotalUnits to be produced6,2008,68014,880Direct labor hours:6,200 units × 1.6 hours per unit9,9208,680 units × 1.6 hours per unit13,88823,808Direct labor cost:Direct labor hours × Hourly wage rate9,920 × $16 per hour$158,72013,888 × $16 per hour$222,208$380,928The direct labor budget for Gundy Company for the 6 months ending June 30, 2022, has been prepared as shown above. Here, we have calculated the direct labor hours and cost by multiplying the expected labor hours and hourly wage rate for each quarter with the respective units to be produced in each quarter. Gundy Company has to prepare a direct labor budget by quarters for the 6 months ending June 30, 2022. The company expects to produce 6,200 units in quarter 1 and 8,680 units in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. To prepare the direct labor budget, the company needs to determine the labor hours required and labor costs incurred to produce the budgeted units.In quarter 1, Gundy Company will require 9,920 direct labor hours (6,200 units x 1.6 hours per unit) to produce the 6,200 units. The direct labor cost for the quarter will be $158,720 (9,920 direct labor hours x $16 per hour). In quarter 2, the company will require 13,888 direct labor hours (8,680 units x 1.6 hours per unit) to produce the 8,680 units. The direct labor cost for the quarter will be $222,208 (13,888 direct labor hours x $16 per hour).The total direct labor budget for the 6 months ending June 30, 2022, will be $380,928 ($158,720 + $222,208). By preparing the direct labor budget, Gundy Company can ensure that it has sufficient labor hours and budgeted labor costs to achieve its production targets in each quarter.
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2) (20 points).Illustrate an initial situation where an economy is in equilibrium with output (Y) equal to potential (Yp) and inflation equaled the central bank's long-run target. Throughout problem 2, assume that the exchange rate does not change. What would likely happen to the U.S. economy if there were an unexpected faster pace of growth in our major trading partners from their internal or region-specific factors? Does this shift the aggregate demand curve out to the right, in to the left, or not shift the curve at all? Why and discuss components of GDP if relevant? Illustrate what happens to the AS and AD curves in the short and long-run using the macro model framework assuming that long-run inflation expectations are stable in the short- run, that the economy is self-correcting as in the handouts, and assuming that there is no monetary policy response other than the Taylor Rule response of monetary policy (which is built into the slope of the aggregate demand curve).
An unexpectedly faster pace of growth in major trading partners would shift the aggregate demand curve out to the right, leading to increased output and potentially higher inflation in the short run. However, in the long run, the economy would self-correct, returning to its potential output level with stable inflation expectations.
In an initial situation where the economy is in equilibrium with output (Y) equal to potential (Yp) and inflation equal to the central bank's long-run target, the economy is operating at its full potential and experiencing price stability.
If there were an unexpected faster pace of growth in the major trading partners of the U.S., it would likely have an impact on the U.S. economy. The impact would depend on the nature and magnitude of the growth in the trading partners. However, in general, an unexpected faster pace of growth in trading partners would lead to an increase in demand for U.S. goods and services.
This increase in demand would shift the aggregate demand (AD) curve out to the right. The components of GDP that would be affected depend on the specific nature of the demand increase. However, in general, it would likely lead to an increase in exports, which is a component of GDP, as U.S. goods and services are in higher demand from the trading partners.
In the short run, the increase in aggregate demand would lead to an increase in output (Y) and potentially higher inflation. This can be illustrated by the short-run aggregate supply (AS) curve shifting to the right due to higher demand. The increase in output would occur as firms increase production to meet the higher demand from the trading partners.
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Kellerman Company manufactures a series of kitchen utensils. This year the company decided to add a new silicone-coated whisk to the product line. The test marketing for the whisk showed high favorability and the company estimated sales of about 10,000 whisks per month. Jonah, the production manager, is performing both a variable and an absorption costing analysis even though GAAP requires that absorption costing be used on the company's financial statements. In one to two paragraphs, answer the following questions: * Briefly describe the key difference between variable costing and absorption costing when calculating product costs. * Explain the impact that absorption costing has on income when the number of units produced differs from the number of units sold. Explain why Jonah would also use variable costing analysis even though absorption costing is required by GAAP. The assignment is due by the end of May 20th. You may complete the writing assignment via email if you are unable to attach a word document.
The key difference between variable costing and absorption costing is in how they treat fixed manufacturing overhead costs.
Variable costing only considers variable costs as product costs, meaning that it only includes direct materials, direct labor, and variable manufacturing overhead in the cost of goods sold calculation. Fixed manufacturing overhead costs are treated as period expenses under variable costing and are not included in the cost of goods sold calculation. On the other hand, absorption costing treats all manufacturing costs, both fixed and variable, as product costs. This means that fixed manufacturing overhead costs are allocated to units produced and are included in the cost of goods sold calculation.
When the number of units produced differs from the number of units sold, absorption costing will result in a different net income than variable costing. Because absorption costing includes fixed manufacturing overhead costs in the cost of goods sold calculation, net income will be higher when more units are produced than sold, and lower when fewer units are produced than sold. This is because under absorption costing, the unabsorbed fixed manufacturing overhead costs are carried forward as inventory on the balance sheet until they are eventually sold. In contrast, variable costing will show a consistent net income regardless of the number of units produced or sold, as fixed manufacturing overhead costs are treated as period expenses.
Jonah may use variable costing analysis even though absorption costing is required by GAAP for several reasons. First, variable costing provides a better understanding of the relationships between sales, costs, and profits, which can help managers make better decisions about pricing, product mix, and production levels. Second, variable costing can help identify inefficiencies in the production process, such as excess capacity or idle time, that may not be apparent under absorption costing. Finally, variable costing can provide insight into the impact of changes in variable costs, such as raw material prices or labor rates, on profitability, which can help managers forecast future earnings and plan accordingly. However, it is important to note that while variable costing may be useful for internal decision-making, absorption costing is required for external financial reporting under GAAP.
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Given the following market equations: Supply: Qs = -1+1p Demand: Qd = 70 - 2p Solve for the equilibrium price = $
The equilibrium price is approximately $23.67. the following market equations: Supply: Qs = -1+1p Demand: Qd = 70 - 2p Solve for the equilibrium price = $
to find the equilibrium price, we need to set the quantity supplied equal to the quantity demanded.
the supply equation is given as qs = -1 + 1p, where qs represents the quantity supplied and p represents the price.
the demand equation is given as qd = 70 - 2p, where qd represents the quantity demanded and p represents the price.
setting qs equal to qd:
-1 + 1p = 70 - 2p
combining like terms:
3p = 71
dividing both sides by 3:
p = 71/3
p ≈ 23.67 at this price, the quantity supplied and the quantity demanded will be equal, resulting in a market equilibrium.
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accepted. Question #1 (30 Marks) Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for setup costs and the other for general manufacturing overhead. Amherst allocates setup costs to the twolamps based on setup labour-hours and general manufacturing overhead costs on the basis of directmanufacturing labour-hours. It provides the following budgeted cost information. Basic Designer Total Direct materials per lamp $ 85 Direct manufacturing labour hours per lamp 0.5 hours 0.6 hours $ 20 $ Direct manufacturing labour rate per hour Set up costs 114,000 Lamps produced perbatch 250 50 Setup-hours per batch 1 hour 3 hours General manufacturing overhead costs 130,000 Required:Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity- based costing system. 1. What is the budgeted setup rate per hour? (3 marks) 2. What is the overhead rate for genera manufacturing overhead? (3 marks) 3. Nowcalculate the budgeted direct costs of basic and designer lamps if Amherst allocates overhead costs in each department using activity based costing. Then complete the indirect allocation of costs for the basic and designer lamps. Lastly, in each case calculate the totals for both types of lamps combined. (24 marks) 15 20
In Question #1, Amherst Metal Works uses an activity-based costing system to allocate costs to its basic and designer lamps.
The company has two indirect-cost pools for setup costs and general manufacturing overhead.
The budgeted cost information is provided, including direct materials per lamp, direct manufacturing labor hours, direct manufacturing labor rate, setup costs, lamps produced per batch, setup hours per batch, and general manufacturing overhead costs.
The task is to calculate the budgeted costs for the basic and designer lamps, including the setup rate per hour, overhead rate for general manufacturing overhead, and the budgeted direct costs using activity-based costing.
To calculate the budgeted setup rate per hour, divide the total setup costs by the total setup hours per batch. This will provide the cost per setup hour for each type of lamp. The overhead rate for general manufacturing overhead is calculated by dividing the total general manufacturing overhead costs by the total direct manufacturing labor hours for both types of lamps. This will give the cost per direct manufacturing labor hour. To calculate the budgeted direct costs of the lamps using activity-based costing, allocate the overhead costs to each lamp type based on the setup labor hours and direct manufacturing labor hours. Add the allocated overhead costs to the direct materials and direct manufacturing labor costs to obtain the budgeted direct costs for each type of lamp. Finally, calculate the totals for both types of lamps by summing up the individual costs for the basic and designer lamps.
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Answer ALL of the following questions: 1.What negative effects can livestock farming have on the environment? What impact can governments have by implementing policies that may target private landowne
Answer:
1. Livestock farming can have several negative effects on the environment, including:
- Land degradation: Overgrazing can damage soil structure and reduce its ability to hold water, leading to erosion, desertification, and loss of biodiversity.
- Water pollution: Livestock manure and fertilizers used in feed production can contaminate surface and groundwater with nutrients and pathogens, causing eutrophication, algal blooms, and fish kills.
- Greenhouse gas emissions: Livestock are a major source of methane and nitrous oxide, potent greenhouse gases that contribute to climate change and air pollution.
- Deforestation: Livestock farming is a leading cause of deforestation, as forests are cleared for pasture or feed crops, releasing carbon dioxide and reducing habitat for wildlife.
2. Governments can have a significant impact on mitigating the negative effects of livestock farming by implementing policies that target private landowners, such as:
- Environmental regulations: Governments can establish rules and standards for livestock operations to reduce their environmental impact, such as limiting the use of antibiotics, managing manure storage and disposal, and requiring nutrient management plans.
- Incentives and subsidies: Governments can provide financial incentives or subsidies to farmers who adopt more sustainable practices, such as rotational grazing, cover cropping, or agroforestry, that improve soil health, reduce runoff, and sequester carbon.
- Land-use planning: Governments can use zoning laws, conservation easements, or other mechanisms to protect sensitive ecosystems, such as wetlands, riparian areas, or wildlife corridors, from conversion to agriculture or development.
- Education and outreach: Governments can also invest in public education and outreach programs to raise awareness about the environmental impacts of livestock farming and promote sustainable food choices.
Livestock farming can have a multitude of negative effects on the environment. These effects include land degradation, water pollution, air pollution, and greenhouse gas emissions.
When animals are raised for food, they require a large amount of land to graze on. As a result, livestock farming has been the primary driver of deforestation, leading to land degradation and habitat loss for wildlife. Moreover, the excrement and urine produced by animals can contaminate water sources nearby, causing pollution and damage to aquatic life. Finally, livestock farming produces a significant amount of greenhouse gases, such as methane and carbon dioxide, contributing to climate change.
Governments can help address these negative effects by implementing policies that target private landowners. For example, they can offer subsidies to farmers who use sustainable practices that reduce the impact of livestock farming on the environment. Governments can also regulate the use of pesticides, fertilizers, and other chemicals used in livestock farming to reduce pollution. Additionally, they can provide funding for research and development of alternative protein sources, such as plant-based protein or lab-grown meat, to reduce the demand for livestock farming. By implementing such policies, governments can promote sustainable practices that reduce the negative effects of livestock farming on the environment.
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Value Gym (VG) Peter is a qualified fitness instructor. He used to work at a luxury gym in country X. Customers of this luxury gym pay a high monthly membership fee no matter how many times they visit
Peter's decision to leave his job at the luxury gym to work for Value Gym shows his dedication to helping people lead healthy lives. As an instructor at Value Gym, he is committed to providing customers with a safe and effective workout experience that helps them achieve their fitness goals.
Value Gym (VG) is a company offering gym membership services that are significantly cheaper than other gym services on the market. The company offers a monthly membership fee with no extra charges regardless of how often a customer visits. Peter is a certified fitness instructor who used to work at a luxury gym in country X. However, he left his job to work for Value Gym because he believes that everyone should have access to affordable gym services.
As an instructor, Peter knows how important it is for people to get enough exercise to maintain a healthy lifestyle. He uses his knowledge and skills to help customers achieve their fitness goals. Peter creates a workout plan for each of his customers based on their fitness level and desired results. He also offers guidance on proper technique, diet, and other aspects of a healthy lifestyle.
Value Gym's philosophy is to make fitness accessible to everyone. They believe that a high membership fee shouldn't be a barrier to getting fit. The company aims to provide an environment where customers feel comfortable and motivated to exercise. The gym is equipped with modern facilities, and there are trained staff members available to help customers with their workouts.
In conclusion, Peter's decision to leave his job at the luxury gym to work for Value Gym shows his dedication to helping people lead healthy lives. As an instructor at Value Gym, he is committed to providing customers with a safe and effective workout experience that helps them achieve their fitness goals. The company's philosophy of making fitness affordable and accessible to everyone is a step in the right direction towards improving public health.
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Degree of Financial Leverage: Northwestern Savings and Loan has a current capital structure consisting of $250,000 of 16% (annual interest) debt and 2,00 shares of common stock. The firm pays taxes at the rate of 40%. A) Using EBIT values of $80,000 and $120,000, determine the associated earnings per share (EPS). B) Using $80,000 of EBIT as a base, calculate the degree of financial leverage (DFL). C) Rework parts A and B assuming that the firm has $100,000 of 16% (annual interest) debt and 3,000 shares of common stock.
A) Using the given capital structure of Northwestern Savings and Loan and EBIT values of $80,000 and $120,000, we can calculate the associated earnings per share (EPS).
For EBIT = $80,000:
Interest expense = $250,000 * 16% = $40,000
Taxable income = $80,000 - $40,000 = $40,000
Taxes = $40,000 * 40% = $16,000
Net income = $40,000 - $16,000 = $24,000
EPS = $24,000 / 2,000 shares = $12 per share
For EBIT = $120,000:
Interest expense = $250,000 * 16% = $40,000
Taxable income = $120,000 - $40,000 = $80,000
Taxes = $80,000 * 40% = $32,000
Net income = $80,000 - $32,000 = $48,000
EPS = $48,000 / 2,000 shares = $24 per share
B) Using $80,000 of EBIT as a base, we can calculate the degree of financial leverage (DFL).
DFL = (EBIT + Interest Expense) / EBIT
For EBIT = $80,000:
Interest expense = $40,000
DFL = ($80,000 + $40,000) / $80,000 = 1.5
C) Reworking the calculations with a capital structure of $100,000 of 16% debt and 3,000 shares of common stock would yield different results for EPS and DFL. By plugging in the new values into the formulas provided in parts A and B, you can calculate the updated EPS and DFL figures.
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Michael is an avid player of board games and is founder and president of the League of Serious Gamers (LSG) social club. Every year, Eugene travels to the Vietnam Convention of Board Game Players where he mixes with fellow enthusiasts, sees the many displays and experiences different board games. He usually returns with new or collector board games that he has purchased and which he onsells at cost price to members of the LSG. This year he bought a chess set which, he was told by the German seller, was once owned by Emperor Quang Trung. Michael placed the following entry in the newsletter that was regularly sent to LSG members: Gamers, a special find this time! Emperor Franz Joseph’s chess board and pieces. $10,000 for this piece of history. Peter is a wealthy collector of rare historical pieces. He was in the bedroom of his son Mark, who was a member of the LSG, telling him that he needed to go out and get a job. After delivering his lecture, he noticed the LSG newsletter, which was open at the advertisements section, and saw the entry about the chess set. Peter knew that the Quang Trung chess set was a much sought-after historical piece. However, he thought that the chess set was in the collection of an American buyer, and in any event would be worth much more than $10,000. Accordingly, Peter wrote down the phone number in the advertisement, arranged to meet Michael, inspected the chess set and paid him the money. Peter arranged a conference to which he invited other well-known collectors of historical pieces. However, his moment of triumph was destroyed when a friend of him loudly proclaimed to Peter and the assembled audience: ‘Oh, my dear boy! That’s not the Quang Trung chess set. Where did you get this — some backstreet bazaar?’ The conference ended in a humiliating farce for Peter. Sitting alone after everybody had left, he suddenly suffered a fit of pique, picked up the chess set and flung it against the wall. As a result the board was cracked and several pieces were badly chipped. Peter now wants to direct his ire against the person he blames for his humiliation — Michael — based on the representations he made about the chess set
If Peter sue Michale,what would happen?
If Peter decides to sue Michael based on the representations he made about the chess set, the outcome will depend on several factors. First, the court would consider whether Michael made false or misleading statements about the chess set in his advertisement and newsletter entry. If it is determined that Michael knowingly misrepresented the chess set's historical significance or value, Peter may have a valid claim of misrepresentation or fraud against Michael.
However, Michael could argue that he believed the information he received about the chess set's historical origin and value was accurate at the time. He might also claim that he did not intentionally deceive Peter and genuinely believed the chess set was authentic. The court would need to assess the credibility of both parties' arguments and evaluate the evidence presented. Additionally, the court would consider the condition of the chess set after Peter flung it against the wall. Peter's actions could be seen as intentional damage to the property, potentially affecting the damages he could seek from Michael.
Ultimately, the outcome of the lawsuit would depend on the evidence, witness testimonies, and the court's interpretation of applicable laws regarding misrepresentation, fraud, and property damage.
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The ABC Furniture Company produces sofas, tables, and chairs at its plant in Greensboro, North Carolina. The plant uses three main resources to make furniture wood, upholstery, and labor. The resource requirements for each piece of furniture and the total resources available weekly are as follows: Resource Requirements Furniture Product Wood (lb) Upholstery (yd) Labor (hour) Sofa 6 10 5 Table 5 0 3 Chair 4 3 1 Total available resources 2020 1100 1080 The furniture is produced on a weekly basis and stored in a warehouse until the end of the week, when it is shipped out, however the warehouse has limited capacity of storing furniture. The warehouse can hold 600 pieces of table or chair, or 200 pieces of sofa (That is to say, a sofa takes up three times as much space as a table or chair). Each sofa earns $400 in profit, each table, $290, and each chair, $180. The company wants to know how many pieces of each type of furniture to make per week in order to maximize profit.
To maximize profit, ABC Furniture should produce 200 sofas, 0 tables, and 200 chairs per week, considering the resource requirements, warehouse capacity, and profitability of each furniture type.
ABC Furniture Company must identify ideal manufacturing volumes for each item of furniture to maximize profit. Linear programming allows this. Define choice variables:
S=weekly sofa production T=weekly table production
C=weekly chair production
Maximise profit:
Profit = 400S+290T+180C
Restricted by:
Wood constraint: 6S+5T+4C < 2020
Upholstery constraint: 10S+3C < 1100
Labour constraint: 5S + 3T + C < 1080
Warehouse constraint: 3S + T + C < 600 (storage capacity).
S, T, and C must be non-negative.
This linear programming problem helps the company find the best S, T, and C values to maximize profit while meeting resource and capacity restrictions.
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Demand for wine bottles at one of Vino's warehouses is normally distributed with average 10000 and standard deviation 3333. The firm wants to achieve a service level of 90%. How much safety inventory do they need to carry to achieve this service level? O a. 5060 units O b. 4400 units O c. 933 units O d. 4266 units
To determine the amount of safety inventory needed to achieve a specific service level, we can use the formula for safety stock:
Safety Stock = Z * σ * √(LT)
Where:
Z is the z-score corresponding to the desired service level
σ is the standard deviation of demand
LT is the lead time
In this case, the average demand is 10,000 bottles and the standard deviation is 3,333 bottles. The desired service level is 90%, which corresponds to a z-score of approximately 1.28 (obtained from standard normal distribution tables).
Assuming the lead time is known, we can calculate the safety stock as follows:
Safety Stock = 1.28 * 3,333 * √(LT)
The exact value of the lead time is not provided in the question, so we cannot determine the specific amount of safety inventory. However, using the provided options, we can compare the values of safety stock to find the closest match.
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the+four+largest+firms+account+for+approximately+90%+of+internet+search+activity.+the+internet+search+engine+industry+would+be+best+classified+as+a(n)+++++++++++++.
The internet search engine industry, where the four largest firms account for approximately 90% of the search activity, would be best classified as an oligopoly. An oligopoly is a market structure in which a small number of large firms dominate the market, resulting in high levels of market concentration and reduced competition.
In this case, the dominance of the four largest firms in the internet search engine industry indicates that there are significant barriers to entry and limited opportunities for smaller firms to compete effectively. Therefore, consumers may have fewer choices and may be subject to higher prices, as the dominant firms have significant market power and can influence the market conditions.
An oligopoly is a market structure in which a few large firms dominate the market, controlling a significant portion of the market share. In this case, the four largest firms account for 90% of the internet search activity, indicating that they have substantial control over the industry.
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when making a business decision with ethical concerns, merely complying with the law is referred to as the
When making a business decision with ethical concerns, merely complying with the law is referred to as the minimum ethical standard.
A minimum ethical standard is the most fundamental level of ethical behavior that can be anticipated in a circumstance. It is the threshold that separates what is morally acceptable from what is not. The minimum ethical standard is essentially a set of standards that govern acceptable behaviour in various domains of human interaction and activity. Business ethics refers to the principles, values, and rules that guide acceptable behaviour in a company or organization. Ethical issues are frequently encountered in the workplace and have the potential to create problems for the organization and its staff. The minimum ethical standard is the lowest level of ethical conduct that an organisation should aim to maintain. It establishes the ethical conduct that is required and provides guidance to employees on what is considered acceptable or not.
Therefore, when making a business decision with ethical concerns, merely complying with the law is referred to as the minimum ethical standard.
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a and b own property as community property. a dies, willing her property to c. the property would be owned by:
The executor of the estate, who is typically named in the will, is in charge of ensuring that the deceased's assets are properly distributed.
In the case where a and b own property as community property, a dies, willing her property to c; the property would be owned by c as his/her separate property.
Community property is a type of asset ownership that is recognized in some states and countries. It refers to assets owned by a married couple that are treated as though they belong to both individuals equally, regardless of who earned or acquired them.It means that if one spouse dies, the other will automatically own half of the assets and the deceased spouse's half will be distributed according to their will or, if they don't have a will, state law.
Willing Property Will is a legal document that specifies how a person's property is distributed after their death. The testator may name one or more beneficiaries to inherit their property.
The executor of the estate, who is typically named in the will, is in charge of ensuring that the deceased's assets are properly distributed.
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Assume the multiplier is 5 and that the total crowding-out effect is $20 billion. An increase in government purchases of $10 billion when the multiplier is 5 will shift the aggregate demand curve a. right $150 billion. b. right S70 billion. c. right $30 billion. d. None of the above is correct.
An increase in government purchases of $10 billion with a multiplier of 5 will shift the aggregate demand curve to the right by $50 billion. So the correct answer would be "None of the above is correct."
The multiplier effect determines how changes in government spending impact aggregate demand and the overall economy. The multiplier is calculated as 1/(1 - MPC), where MPC is the marginal propensity to consume. If the multiplier is 5, it means that for every dollar increase in government spending, the overall aggregate demand increases by $5.
In this case, an increase in government purchases of $10 billion would lead to a total increase in aggregate demand of $10 billion multiplied by the multiplier of 5, resulting in a $50 billion shift to the right in the aggregate demand curve. However, none of the given choices match this value. Therefore, the correct answer would be "None of the above is correct."
It's important to note that the total crowding-out effect of $20 billion mentioned in the question does not directly impact the calculation of the shift in the aggregate demand curve. The crowding-out effect refers to the reduction in private sector spending due to increased government borrowing, which may influence the overall impact on the economy but is not directly related to the shift in the aggregate demand curve.
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The following additional information is yet to be accounted for: 1. The building is to be depreciated at 6% per annum (straight line basis). 2. Motor vehicles are to be depreciated at 25% per annum (reducing balance basis). 3. Staff salaries of £4300 for December have not yet been accounted for. 4. A lump sum of £15200 was paid off the loan from the owner's personal funds in July. 5. Interest on the loan following the repayment was paid, but has not yet been recorded. 6. An invoice for unpaid administration expenses for £1860 was received in January for December. 7. The quarterly rent payment of £21000 was made in November. 8. A customer went out of business in December owing £1800. This amount will not be repaid. 9. Additional cash sales were made at the end of December. These amounted to £25000. Costs have already been accounted for. 10. A provision of doubtful debts of 2% needs to be made. Required: Use the information above to make the required adjustments to the accounts for Eric and Sons. Where calculations are necessary, clearly show your workings. a) Using the figures calculated above, prepare the income statement for the year ended 31 December 2021 for Eric and Sons. (15 marks) b) Using the figures calculated above, prepare the statement of financial position as at 31 December 2021 for Eric and Sons. (25 marks) (Total Question 1: 40 Marks) Question 1 Eric and Sons are a shoe retail outlet. Their unadjusted statements for 2021 are as follows: Income statement 31 December 2021 £ Sales 990000 Cost of goods sold 613000 Gross profit 377000 Rent 102000 Salaries 74000 Sales and distribution 67500 Administration 80600 324100 Net profit 52900 Statement of financial position 31 December 2021 Non-current assets Cost Building 485000 Motor vehicles 216000 Current assets Inventory 64600 Trade receivables 76800 Bank 18100 Total assets Equity and liabilities Capital 419000 Profit for the year 52900 Non-current liabilities Loan (5%) 139200 Current liabilities Trade payables 79000 Total equity and liabilities £ Acc Dep NBV 116400 54000 368600 162000 530600 159500 690100 471900 139200 79000 690100
To prepare the required adjustments to the accounts for Eric and Sons, let's go through each item and make the necessary adjustments:
Depreciation on the building:
Building depreciation = £485,000 * 6% = £29,100
Adjust the Accumulated Depreciation and Net Book Value (NBV) for the building.
Depreciation on motor vehicles:
Motor vehicles depreciation = £216,000 * 25% = £54,000
Adjust the Accumulated Depreciation and NBV for motor vehicles.
Staff salaries for December:
Add staff salaries of £4,300 to the Salaries expense.
Loan repayment from owner's personal funds:
Deduct the lump sum payment of £15,200 from the Loan payable.
Interest on the loan:
Record the interest expense for the loan based on the loan amount and interest rate. The exact calculation is needed to determine the amount.
Unpaid administration expenses:
Add the invoice for unpaid administration expenses of £1,860 to the Administration expense.
Quarterly rent payment:
No adjustment needed as the rent payment has already been made.
Bad debt provision:
Calculate the bad debt provision by multiplying the Trade receivables by 2% (£76,800 * 2% = £1,536). Deduct this amount from Trade receivables.
Additional cash sales:
Add the additional cash sales of £25,000 to the Sales revenue.
Now, we can use the adjusted figures to prepare the required financial statements:
a) Income Statement for the year ended 31 December 2021:
£
Sales 1,015,000 (990,000 + 25,000)
Cost of goods sold 613,000
Gross profit 402,000 (1,015,000 - 613,000)
Rent 102,000
Salaries 78,300 (74,000 + 4,300)
Sales and distribution expenses 67,500
Administration expenses 98,460 (80,600 + 1,860)
Depreciation expense 83,100 (29,100 + 54,000)
Net profit 73,640 (402,000 - 102,000 - 78,300 - 67,500 - 98,460 - 83,100)
b) Statement of Financial Position as at 31 December 2021:
Non-current assets
Cost
Building 485,000
Motor vehicles 216,000
Accumulated Depreciation
Building (116,400)
Motor vehicles (54,000)
Net Book Value (NBV)
Building 368,600 (485,000 - 116,400)
Motor vehicles 162,000 (216,000 - 54,000)
Current assets
Inventory 64,600
Trade receivables 75,264 (76,800 - 1,536)
Bank 18,100
Total assets 688,564 (368,600 + 162,000 + 64,600 + 75,264 + 18,100)
Equity and liabilities
Capital 419,000
Profit for the year 73,640
Non-current liabilities
Loan (5%) (139,200)
Current liabilities
Trade payables 79,000
Total equity and liabilities 432,440 (419,000 + 73,640 - 139,200 + 79,000)
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