The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume.

a. True
b. False

Answers

Answer 1

Answer: False

Explanation:

The Sensitivity Parameter that measures the sensitivity of changes in consumption to changes in consumer confidence is not the Marginal Propensity to Consume.

The Marginal Propensity to Consume rather measures what proportion of additional income is spent on consumption. For example, if you earn an extra $50 this month and you spend $40, the Marginal Propensity to Consume is 40/50 = 0.8.


Related Questions

A company that wanted to increase its capital through equity financing would most likely get involved in which of the following markets

Answers

Answer:

Stock market

Explanation:

Equity financing is one of the ways that a public listed company can use to raise finances by issuing and selling shares to investors while the investors take ownership interest on the basis of shares owned.

After the initial public offering where the company sells shares to the general public , the secondary market , also known as the stock market is the place where the investors and stock brokers meet to buy shares at either an agreed price or the prevailing market price.

This market is regulated by the government authority.

Presented below are incomplete manufacturing cost data.

1. Determine the missing amounts for three different situations.

Direct Materials Used Direct Labor Used Factory Overhead Total manufacturing Cost

(1) $44,000 $62,200 $51,100 $_____

(2) $_____ $77,500 $144,000 $300,000

(3) $58,600 $_____ $114,000 $311,000

2. Determine the missing amounts.

Total Manufacturing Costs Work in Process (January 1) Work in Process (December 31) Cost of Goods Manufactured

(1) $_____ $122,000 $85,200 $_____

(2) $300,000 $_____ $99,800 $323,600

(3) $311,000 $465,000 $_____ $719,000

Answers

Answer and Explanation:

The computation of the missing amount is as follows

As we know that

Total manufacturing costs is

= Direct materials cost + Direct labor cost + Factory overhead  cost

And,

Cost of goods manufactured is

= Total manufacturing costs + Beginning work in process - ending work in process

Based on this, the calculation is as follows

  Direct materials Direct labor Factory       Total

                                                      overhead  manufacturing costs

1. $44,000               $62,200     $51,100        $157,300

2. $78,500             $77,500     $144,000       $300,000

3. $58,600            $138,400     $114,000       $311,000

Now

 Total Manufacturing Costs Beg. Work   End. Work  Cost of Goods

                                              in Process  in Process  Manufactured

1. $157,300                           $122,000     $85,200      $194,100

2. $300,000                         $123,400        $99,800     $323,600

3. $311,000                            $465,000       $57,000     $719,000

What is the current price for a bond worth $4,000 that has a price quote of 50?

Answers

Answer:

$ 2,500 as far as i know.

Explanation:

At the beginning of the year, Bryers Incorporated reports inventory of $7,300. During the year, the company purchases additional inventory for $22,300. At the end of the year, the cost of inventory remaining is $9,300. Calculate cost of goods sold for the year.

Answers

Answer:

$20,300

Explanation:

beginning inventory $7,300

purchases during the year $22,300

ending inventory $9,300

cost of goods sold = beginning inventory + purchases - ending inventory = $7,300 + $22,300 - $9,300 = $20,300

When you use a periodic inventory system, you calculate COGS using the previous formula, but if you use a perpetual inventory system, COGS are calculated for every individual sale.

Your client is an attorney. Her new admin is just learning how to use QuickBooks Online. The Automatically create invoices and don't notify me setting is on. The attorney charges her clients for copies made. These should have been entered using delayed charges, but the admin did not know that, and they were not entered into QuickBooks Online. What is the risk/danger of the new office admin person not entering the copies made in the Delayed Charges? 1. Job costs for this client will be reduced 2. There is no risk. Invoices will go out just fine 3. The attorney's clients will be undercharged 4. Photocopy expense will be understated

Answers

Answer:

3. The attorney's clients will be undercharged

Explanation:

Since the QuickBooks Online is set to "automatically create invoices" and clients are charged for copies made.  The only missing link is that the charges to clients have not been entered into the Delayed charges, which will capture the expenses on photocopy.  Therefore, "the risk/danger of the new office admin person not entering the copies made in the Delayed Charges" is that "the attorney's clients will be undercharged."

What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant

Answers

Answer:

In QuickBooks Online Accountant, users with admin access and Firm Owners and have the authority to access of other users in the firm. The 3 levels of access that can be granted to Team users of QuickBooks Online Accountant are:

Full : these users have access to accounting features, and books such as edit, remove and add users.Basic : These users have access to create and read accounting.Custom: These users can access administrative functions for the firm , access to manage clients  and  access to client QuickBooks .

The three levels of access that can be granted to the team users of QuickBooks Online includes the Basic access, Full access and Custom access.

QuickBooks Online Accountant is an accounting based software which allows companies to controls all the financial side of their business

Only the users with administrator access and Firm Owners have the authority to access information on the accounting software.

The 3 levels of access granted to team users on the QuickBooks Online Accountant includes:

Basic access users: These are users who have access have access to create and read accounting information.Full access users: These are users who have access to accounting features such as edit, remove and add users as well as privilege enjoyed by basic access users. Custom access users: These are users who can access administrative functions for the firm.

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What do you see as the major deficiencies current information systems budgeting and prioritization processes are run

Answers

Answer:  

The major challenges with the current information systems budgeting and prioritisation process are:

The focus was overly on how the budgeted monies will be spent and how much return it will bring to the business. Not much thought was given to how the monies required for the expenses will be generated. Budgeting not only looks at the outflow, it examines existing and potential sources of income/revenue. When this is balanced, the company can integrate such into their marketing strategy armed with what information about the market that they possess.The prioritization is all wrong. Budgeting is because there is are organisational objectives to be met with limited resources.

Because those resources are limited, the said objectives have to be prioritized. Income-generating projects must hold more priority over non-revenue generating activities.

If there is a strategic link between the company's Information Systems upgrade and an increase in its bottom line, then it must be given priority.

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The Green Giant has a 7 percent profit margin and a 61 percent dividend payout ratio. The total asset turnover is 1.4 times and the equity multiplier is 1.6 times. What is the sustainable rate of growth

Answers

Answer:

5.17%

Explanation:

The green giant has a 7% profit margin

= 7/100

= 0.07

The dividend payout ratio is 67%

= 67/100

= 0.67

Total turnover is 1.4 times

Equity multiplier is 1.6 times

The first step is to calculate the return of equity

ROE= profit margin×total turnover×equity multiplier

= 0.07×1.4×1.6

= 0.1568

Therefore, the sustainable rate of growth can be calculated as follows

= return of equity×(1-dividend payout ratio)

= 0.1568×(1-0.67)

= 0.1568×0.33

= 0.0517×100

= 5.17%

Hence the sustainable rate of growth is 5.17%

The demand in a market for smartphones has increased, causing prices to
rise. What effect will this likely have on the supply of smartphones?
A. The supply curve will shift up according to the increased demand.
B. Supply will decrease, as always happens when price increases.
C. The supply point will increase by moving along the existing supply
curve, and the entire curve will shift upwards as well.
D. The supply point will increase by moving along the existing supply
curve, the curve itself will not shift.

Answers

Answer:    D.  The supply point will increase by moving along the existing supply curve, the curve itself will not shift.

The demand in a market for smartphones has increased, causing prices to The supply point will increase by moving along the existing supply curve, the curve itself will not shift. Hence, the correct option is D.

What is Supply curve?

Supply curve is the curve which is a graphic representation of the relationship among the quantity of product and the price of the products, which the seller is willing to supply.

Supply curve on the right means the increase in the supply of the product in market.

So, the shift to the supply curve to the right for  the smartphones, will result from increase in consumer income, as the income of the customer rises, will result in outwards shift (right) and when  goods are normal goods.

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Accounts Payable The balance in Ashwood Company's Accounts Payable account at December 31, 2016, was $1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2016. The invoice cost was $85,000, and the goods were shipped FOB shipping point on December 29, 2016. The goods were received on January 2, 2017. Goods shipped FOB shipping point on December 20, 2016, from a vendor to Ashwood were lost in transit. The invoice cost was $40,000. On January 5, 2017, Ashwood filed a $40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2016, from a vendor to Ashwood were received on January 6, 2017. The invoice cost was $20,000. What amount should Ashwood report as accounts payable on its December 31, 2016, balance sheet? a. $1,325,000 b. $1,260,000 c. $1,285,000 d. $1,345,000

Answers

Answer:

Ashwood Company

Accounts Payable account at December 31, 2016:

Amount to report in the balance sheet =

a. $1,325,000

Explanation:

The balance in the account was $1,200,000

Adjustments:

In transit goods, shipped FOB shipping point = $85,000

Lost in transit goods, shipped FOB shipping point = $40,000

Total = $1,325,000

The shipping terms determine when liability for goods in transit pass to the buyer and if the buyer should include the goods in its own Ending Inventory and adjust its Accounts Payable respectively.  The liability for goods in transit passes to the buyer if the FOB is shipping point.  The liability does not pass to the buyer if the FOB is destination.

During the year, Belyk Paving Co. had sales of $2,485,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,349,000, $660,000, and $462,000, respectively. In addition, the company had an interest expense of $287,000 and a tax rate of 24 percent. The company paid out $412,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (lgnore any tax loss or carryforward provision and assume interest expense is fully deductible.)
Calculate the firm's net new long-term debt added during the year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answers

Answer:

$888,000

Explanation:

In order to determine how much new debt was added, we must calculate cash flows:

first we need to determine net income:

sales ($2,485,000) - COGS ($1,349,000) - S&A expenses ($660,000) - depreciation expense ($462,000) = EBIT = $14,000

since EBIT is lower than interest expense ($14,000 ≤ $287,000), we can assume there was a loss. But the question tells us to ignore any tax losses. So net income = $14,000 - $287,000 = -$273,000

operating cash flow = net income + adjustments = -$273,000 + $462,000 = $189,000

there were not capital spending and no new investments made, so cash flow from investing activities = $0

so the net cash flow from assets = $189,000

net cash flow form assets = net cash flow from stockholders + net cash flow from liabilities

net cash flow from stockholders = common stock issued - dividends = $0 - $412,000 = -$412,000

$189,000 = -$412,000 + net cash flow from liabilities

$601,000 = net cash flow from liabilities

net cash flow from liabilities = net new long term debt - interest expense

$601,000 = net new long term debt - $287,000

net new long term debt = $601,000 + $287,000 = $888,000

ACME Inc. has decided on a 10for1 reverse stock split. If the firm currently has​ 40,000,000 shares​ outstanding, how many shares will be outstanding after the stock​ split?

Answers

Answer:

$4,000,000 Shares

Explanation:

Calculation for how many shares will be outstanding after the stock​ split

Using this formula

Outstanding Shares after stock split =Shares​ outstanding ÷Reverse stock split

Let plug in the formula

Outstanding Shares after stock split =$40,000,000÷10

Outstanding Shares after stock split =$4,000,000 Shares

Therefore the amount of shares that will be outstanding after the stock​ split will be $4,000,000

A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent and 12.50 percent, respectively. What is the expected return on the portfolio

Answers

Answer:

Portfolio return = 11.08%

Explanation:

The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.

The expected return can be determined as follows

Weighted of stock A= 15,200/(15200+23400)=0.39

Weight of stock B = 23.400/((15200+23400)=   0.61  

Expected return on portfolio = (0.39 ×8.90% )  + (0.61*12.50%)= 11.08 %

Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting

Answers

Answer:

Gross profit from the month of December is $238000

Explanation:

Question is incomplete but the missing part is:

Cash received from customer during december 2017 - 387,000

Cash paid to supplier for inventory during december 2017 - 131,000

Accrual basis revenues

Particulars                                              Amount $

Cash received from customer                387000

during December 2017

Cash received in December  for            -139000

November accounts receivable

December sales made on account         141000

collected in January

Accrual basis revenues                          389000

Accrual basis expenses

Particulars                                              Amount $

Cash paid to suppliers for inventory      131000

during December 2017

Payments for inventory purchased         -19000

and used in November

Inventory purchased in November          39000

but not used in December

Accrual basis expenses                           151000

Gross profit from the month of December=  Accrual basis revenues - Accrual basis expenses

Gross profit = 389000 - 151000

Gross profit =  $238000

Colter Steel has $4,800,000 in assets. Temporary current assets $ 1,600,000 Permanent current assets 1,530,000 Fixed assets 1,670,000 Total assets $ 4,800,000 Short-term rates are 12 percent. Long-term rates are 17 percent. Earnings before interest and taxes are $1,020,000. The tax rate is 40 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be

Answers

Answer:

Colter Steel

Earnings after taxes:

Earnings before interest and taxes = $1,020,000

Interests = $659,500

Pre-tax Earnings = $360,500

Income Tax (40%)   144,200 ($360,500 x 40%)

Earnings after taxes = $216,300

Explanation:

a) Interests:

i) Long-term interests = 17% of Fixed Assets ($1,670,000) = $283,900

ii) Short-term interest = 12% of current assets ($4,800,000 - 1,670,000) = $375,600

Total interests = $659,500 ($283,900 + 375,600)

b) Short-term rates are the interest rates for current assets (or short-term borrowings).

c) Long-term rates are the interest rates for long-term assets or fixed assets (or long-term borrowings).

Prepare budgetary entries, using general ledger control accounts only, for each of the following unrelated situations: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).) Anticipated revenues are $11.8 million; anticipated expenditures and encumbrances are $8.0 million. Anticipated revenues are $8.0 million; anticipated expenditures and encumbrances are $9.4 million. Anticipated revenues are $9.4 million; anticipated transfers from other funds are $1.6 million; anticipated expenditures and encumbrances are $8.0 million; anticipated transfers to other funds are $0.7 million. Anticipated revenues are $8.6 million; anticipated transfers from other funds are $1.1 million; anticipated expenditures and encumbrances are $9.7 million; anticipated transfers to other funds are $1.0 million.

Answers

Answer:

Please see answer in explanatory column

Explanation:

Journal for  Budgetary entries

a) Anticipated revenues are $11.8 million; anticipated expenditures and encumbrances are $8.0 million

Account                                        Debit                Credit

Estimated Revenue control  $11,800,000

Appropriation control                                            $8,000,000    

Budgetary fund                                                      $3,800,000

Calculation

Budgetary fund = Estimated Revenue control  $11,800,000-

Appropriation control   $8,000,000 = $3,800,000        

b)Anticipated revenues are $8.0 million; anticipated expenditures and encumbrances are $9.4 million.

Account                                        Debit                Credit

Estimated Revenue control   $8,000,000

Budgetary fund                        $1,400,000

Appropriation control                                            $9,400,000

Budgetary fund = Estimated Revenue control  $8,000,000-

Appropriation control   $9,400,000 = -$1,400,000  , therefore will be debited

c)Anticipated revenues are $9.4 million; anticipated transfers from other funds are $1.6 million; anticipated expenditures and encumbrances are $8.0 million; anticipated transfers to other funds are $0.7 million

Account                                          Debit                             Credit

Estimated Revenue control         $9,400,000

Estimated other finance source control$1,600,000

Appropraition control                                                 $8,000,000

Estimated other finance source control                     $700,000

Budgetary fund                                                            $2,300,000

Budgetary fund = Estimated Revenue control +Estimated other finance source control) -Appropriation control + Estimated other finance source control=  $9,400,000 +$1,600,000)- $8,000,000 + 700,000 ) = 11,000,000 - $8,700,000 =$2,300,000  

d)Anticipated revenues are $8.6 million; anticipated transfers from other funds are $1.1 million; anticipated expenditures and encumbrances are $9.7 million; anticipated transfers to other funds are $1.0 million.

Account                                          Debit                             Credit

Estimated Revenue control           $8,600,000

Estimated other finance source control$1,100,000

Budgetary fund                                    $1,000,000

Appropraition control                                                 $9,700,000

Estimated other finance source control                     $1,000,000

Budgetary fund = Estimated Revenue control +Estimated other finance source control) -Appropriation control + Estimated other finance source control=  $8,600,000 +$1,100,000)- $9,700,000 + 1,000,000 ) = 9,700,000 - $10,700,000 =-$1,000,000  so will be debited

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:


Inventory on units; cost $5.70 each.
Purchased 12,000 units for $5.90 each.
Sold 9,600 units for $12 each.
Purchased 7,200 units for $6.00 each.
Sold units for $11.40 each.
Purchased 4,400 units for $5. 80 each.
Inventory on units.

Required:
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method.

Answers

Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.

Second sales assumed to be 7,000 units at a price of $11.40 each.

Answer:

Altira Corporation

August 2021 Ending Inventory & Cost of Goods Sold:

1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920

2. Cost of goods sold =

9,600 x $5.87 = $56,352

7,000 x $5.95 =  $41,650

16,600 units   =  $98,002

Explanation:

a) Calculations:

                                         Units           Unit Cost       Total Cost

Beginning Inventory      2,000            $5.70              $11,400

Purchases                     12,000            $5.90            $70,800

Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87

Sales                             (9,600)          $12.00                               $115,200

Units remaining             4,400            $5.87             $25,828

Purchases                      7,200             $6.00            $43,200

Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95

Sales                             (7,000)            $11.40                              $79,800

Units remaining            4,600             $5.95             $27,370

Purchases                     4,400             $5.80             $25,520

Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88

Ending Inventory        9,000               $5.88             $52,920

b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.

On January 1, 2016, Sheldon Unlimited issues 12%, 15-year bonds payable with a face value of $250, 000. The bonds are issued at 106 and pay interest on June 30 and December 31.
1. Journalize the issuance of the bonds on January 1, 2016.
2. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016.
3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2016.
4. Journalize the retirement of the bond at maturity.

Answers

Answer:

1. Date        Account Title and Explanation      Debit         Credit

January 1       Cash                                             $265,000  

2016               Premium on bonds payable                          $15,000

                      Bonds payable                                               $250,000

                (To record Issuance of bonds )  

2 . Date        Account Title and Explanation      Debit         Credit

June 30         Bond interest expense              $14,500  

2016                Premium on bonds payable         $500  

                       Cash                                                                  $15,000

(Interest on bond paid and Premium amortized)  

3 . Date        Account Title and Explanation      Debit         Credit

Dec 31          Bond interest expense                   $14,500  

2016              Premium on bonds payable            $500  

                                  Cash                                                    $15,000

     (Interest on bond paid and Premium amortized)  

4.   Date        Account Title and Explanation      Debit         Credit

Dec 31 2030     Bonds payable                  $250,000  

                              Cash                                                       $250,000

                     (Bond redeemed)  

Working  

Bond issue price (250000 / 100*106)                            $265,000

Face value                                                                         $250,000

Premium on bonds payable                                              $15,000

Number of Interest payments (15 years x 2)              30 period

Discount/ premium to be amortized per Half year          $500.00

Interest on bond                                                                 $15,000.00

Interest expense to be recorded                                       $14,500

(15000-500)

Analysis of income statements,balance sheet and,aditional information from the accounting records of Gatdgets.Inc., reveals the following items1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.Required:Indicate in which section of the statement of the cash flows each of these items would be reported:operating activities,or a separate non cash activities note.

Answers

Answer:

1. Purchase of a patent - Investing activities

2. Depreciation expense - Operating activities

3. Decrease in accounts receivable - Operating activities

4. Issuance of a note payable - Financing activities

5. Increase in inventory - Operating activities

6. Collection of notes receivable - Investing activities

7. Purchase of equipment - Investing activities

8. Exchange of long-term assets - Non-cash activities

9. Decrease in accounts payable - Operating activities

10. Payment of dividends - Financing activities

Transactions for Jayne Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Identify the accounts to be debited and credited for each transaction.
Account Debited Account Credited
june 1
june 2
june 3
june 12

Answers

Answer:

June 1 , common stocks are issued

Dr Cash 5,000

    Cr Common stock 5,000

June 2 , equipment purchased on account

Dr Equipment 1,100

    Cr Accounts payable 1,100

June 3 , monthly rent paid

Dr Rent expense 740

    Cr Cash 740

June 12, service revenue

Dr Accounts receivable 700

    Cr Service revenue 700

Why does e-commerce save businesses money?
O
A. Because warehouses can stock much more inventory than stores.
B. Because they charge more for online purchases.
ОО
C. Because more people shop online than in stores.
D. Because they lower the quality of the product for online
purchases.

Answers

Answer:

A. Because warehouses can stock much more inventory than stores.

Explanation:

Easter Egg and Poultry Company has $1,040,000 in assets and $649,000 of debt. It reports net income of $120,000. a. What is the firm’s return on assets? (Enter your answer as a percent rounded to 2 decimal places.) b. What is its return on stockholders’ equity? (Enter your answer as a percent rounded to 2 decimal places.) c. If the firm has an asset turnover ratio of 4 times, what is the profit margin (return on sales)? (Enter your answer as a percent rounded to 2 decimal places.)

Answers

Answer:

A. 11.54%

B. 30.69%

C. 2.88

Explanation:

Return on assets = net income/ total assets

= $120,000 / $1,040,000 = 0.115385 = 11.54%

Return on equity = net income/ total equity

Total equity = total assets - liabilities = $1,040,000 - $649,000 = $391,000

$120,000 / $391,000 = 0.3069 = 30.69%

Profit margin = gross profit/ revenue

Asset turnover = revenue / total asset

4 = revenue / $1,040,000

Revenue = $4,160,000

Profit margin = $120,000 / $4,160,000 = 0.0288 = 2.88

I hope my answer helps you

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.) a. gross FUTA tax $ . b. FUTA tax credits (assuming no penalties) $ . c. net FUTA tax

Answers

Answer:

a. $30,654

b. $27,588.60

c.  $3,065.40

Explanation:

The Gross/ Standard Federal Unemployment Tax (FUTA) is 6.0% but employers tend to receive a 5.4% reduction/ credit upon filing form 940 leaving them with a net of 0.6%.

a. The Gross tax is;

= 510,900 * 6%

= $30,654

b. FUTA Tax Credits

= 510,900 * 5.4%

= $27,588.60

c. Net FUTA Tax

= 510,900 * 0.6%

= $3,065.40

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $1.5 million. If it would cost $2 million to finish development and make the product, you go ahead and do so. The most you should pay to complete development is $_______million.

Answers

Answer:

You should pay "$3" million to complete the development.

Explanation:

The possibility you've already plunged $5 million is therefore no longer important to either calculation, although this money disappears. All counts now would be the small chance of gaining money. When you are investing around $1 million and are able to produce $3 million in funding, users earn $2 million in gross income, so clients will.You seem entitled to say that perhaps a gross of $3 million has indeed been wasted to the venture, and you really should not even have begun it.  That would be real, however, if you ever don't invest about $1 million extra you apparently can't have any profits and total damages will have been $5 million.

And therefore what counts has never been the overall income, but the incremental benefit that you will receive.  In reality, you'd pay approximately $3 million to feel a sense of achievement, not much more, and towards the bottom, you won't increase income.

What are the 4 phases in doing research?describe each phase
(for psychology)​

Answers

Answer:

•Discovery

• Data

• Analyze

• Ethical

Explanation:

• Discovery . Here, there are observations of events or actions which bring about new knowledge that will be further exposed to new hypothesis.

• Data . Raw data(qualitative- non numerical and quantitative -numerical) are collected in this stage and then processed to become information.

• Analyze . This is a stage where the processed data and information are analyzed. It is where the data are cleaned, inspected, transformed and then modeled with the aim of making meaningful insights, drawing conclusion and then support further decision making.

• Ethical. In this stage, researchers check to determine whether their procedures are ethical or not. This is where the data analysed are checked whether they conform with the correct rule of conduct.

Entries for Direct Labor and Factory Overhead Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows: Job 11-101 $4,640 Job 11-102 5,510 Job 11-103 6,612 Job 11-104 12,760 Job 11-105 18,270 Factory supervision 12,500 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $23 per direct labor hour. The direct labor rate is $29 per hour. a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank

Answers

Answer:

Work In Process : Job 11-101 $4,640 (debit)

Work In Process : Job 11-102 $5,510 (debit)

Work In Process : Job 11-103 $6,612 (debit)

Work In Process : Job 11-104 $12,760 (debit)

Work In Process : Job 11-105 $18,270 (debit)

Work In Process : Indirect labor $12,500 (debit)

Salaries Payable $60,292 (credit)

Explanation:

The factory labor consist of direct labor and indirect labor and all are accounted in the work in process account.

Direct labor can be traced directly to the job being manufactured.

Whilst indirect labor can not be traced directly to the job being manufactured example is factory supervisor`s salary.

What are some of the issues to consider in determining whether the Internet would provide your business with a competitive advantage

Answers

Answer:

relevancy, cost, and information

Explanation:

When determining whether the Internet would provide your business with a competitive advantage you need to consider relevancy, cost, and information. First would be how much extra cost will you incur in order to place your business on the internet. Secondly, you need to consider the importance of the internet to you business, such as what percentage of your customer population will be on the internet. And lastly, you need to consider how much information you actually need to acquire in order to successfully implement this course of action.

Cost of Goods Sold Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow. $

Answers

Answer:

$3,085,000

Explanation:

FIFO means first in first out. It means it is the first purchased inventory that is the first to be sold.

The costs of goods sold would first be allocated to the beginning inventory = $310,000

The remaining cost of goods sold Je allocated to the inventory made during the year = 210,000 - 25,000 = 185,000

185,000 × ( $3,000,000 / $200,000) = $2,775,000

Total cost of goods sold = $2,775,000 + $310,000 = $3,085,000

I hope my answer helps you

Haag Corp.'s 2021 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2021 data are provided:

Income from exempt municipal bonds $ 100,000
Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes 200,000
Enacted corporate income tax rate 20%

Required:
Compute the amount that Haag should record for income tax payable.

Answers

Answer:

$440,000

Explanation:

The first is to calculate the taxable profits and taxable profit can be calculated as under:

Taxable Profit = Pre-Tax Accounting Profit - Tax allowable expenses not deducted + Tax disallowed expenses deducted previously   -  Tax disallowed Income added previously  - Tax allowed income not added in accounting profits

Here

Pre-Tax Accounting Income is $2,500,000

Municipal Bond Income is the Tax Disallowed Income added previously to accounting profits and must be eliminated from it at $100,000

Depreciation for tax purposes which is in excess of the book depreciation allowed is $200,000 and is Tax allowed Expenses not deducted.

By putting the values, we have:

Taxable Profit = $2,500,000 - $200,000  -  $100,000

Taxable Profit = $2,200,000

Now we will compute the income tax payable at 20%

Tax Payable = 20% *  $2,200,000 = $440,000

Income tax payable is the compulsory charge to be paid by the individual or company earning incomes over the exempt slab rates. Tax payable is computed on the taxable income, which is computed by deducting the deductible expenses and incomes from the net profit earned during a particular financial period.

The amount of income tax payable by Haag is $440,000

Computation:

The taxable income and the income tax payable are shown in the image attached below.

The procedure to compute the tax liability is:

1. Determine the pre-tax accounting income that is given $2,500,000.

2. Deductions like tax allowable expenses, tax allowed incomes, etc. In this case, the deductions are the exempt income from municipal bonds and the deduction of depreciation amount as it was recorded in the financial statement.

3. The amount determined is taxable income over which the 20% income tax rate will be charged.

To know more about income tax liability, refer to the link

https://brainly.com/question/7409145

The company is currently selling 6,500 units per month. Fixed expenses are $184,000 per month. The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Answers

Answer:

$14,050

Explanation:

Calculation of what should be the overall effect on the company's monthly net operating income of this change

Contribution Income Statement

6,500 units 6,690 units

Sales (at $190 per unit)$1,235,000 $1,271,100

Variable expenses (at $75 per unit)

$487,500 $501,750

Contribution margin$747,500 $ 769,350

Fixed expenses ($7,800 increase)

$184,000 $191,800

Net operating income$563,500 $577,550

6,500 units+190 unit increase in monthly sales=6,690

Fixed expenses ($7,800 increase)

$184,000 +$7,800$= $191,800

Net operating income$563,500 -$577,550 =$14,050

Therefore Net operating income would increase by $14,050

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