Answer:
Date Account Detail Debit Credit
June 1 Cash $4,080
Common Stock $4,080
Date Account Detail Debit Credit
June 2 Equipment $1,720
Accounts Payable $1,720
Date Account Detail Debit Credit
June 3 Rental expense $910
Cash $910
Date Account Detail Debit Credit
June 12 Accounts Receivable $800
Welding Revenue $800
The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, and $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?
Answer:
$9,923,100
Explanation:
The computation of the present worth is as follows:
Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100
Consider the following budgeted data for the client case of Carla's accounting firm. The client wants a fixed-price quotation.
Direct professional labour $20,700
Direct support labour 10,200
Fringe benefits for direct labour 13,500
Photocopying 1,800
Telephone calls 2,000
Computer lines 5,700
Overhead is allocated at the rate of 100% of direct labour cost.
Required:
Prepare a schedule of the budgeted total costs for the client.
Answer:
See below
Explanation:
Budgeted total cost is computed as;
Direct support labor $10,200
Direct professional labor $20,700
Fringe benefit for direct labor $13,500
Overhead allocation $30,900
Budgeted total cost $75,300
Therefore, budgeted total cost for the client is $75,300
A farmer in Germany can use his land to produce corn or wheat. Suppose he can produce 1 million bushels of corn if it devotes all of its land to corn or 10 million bushels of wheat if it devotes all time to wheat. Plot the PPF with corn on the vertical access and wheat on the horizontal axis. What is the opportunity cost of a bushel of corn
Answer:
1/3 bushel of rye
Explanation:
Given that the farmer produces 30 bushels of corn every year but using the entire field on producing 30 corn bushels would cost 10 rye bushels. Thus, the opportunity cost of producing one bushel of corn would be 1/3 bushel of rye(10/30). The slope of the farmer's PPF would be -1/3 and hence, the opportunity cost of the farmer can be calculated by considering the reciprocal of a bushel of corn's opportunity cost.
A television assembly plant has a variable production output ranging from 200 sets to 850 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet and is leased from a real estate firm at an annual rate of $7.95 per square foot. It employs 250 people and their wage cost is, in large part, a function of the number of televisions produced. Most of the components that go into the assembly are also produced in the plant with in-house equipment that is operated based on production requirements. The most likely example of fixed cost in this plant is ______________.
Answer:
Annual rental rate
$636,000
Explanation:
Fixed cost is cost that does not vary with output. An example of fixed cost is rent
The annual rental rate is a fixed cost because it does not vary with output.
Variable cost is cost that varies with output. If output is zero, no variable cost would be incurred. An example of variable cost is wages
The wages paid to labour is a variable cost
Which of the following best describes what investment is?
A required payment to owners of a company
An amount of money to pay for larger operations
A new company with several shareholders
A renewable technology in a developing country
At the beginning of 2021, Artichoke Academy reported a balance in common stock of $154,000 and a balance in retained earnings of $54,000. During the year, the company issued additional shares of stock for $44,000, earned net income of $34,000, and paid dividends of $10,400. In addition, the company reported balances for the following assets and liabilities on December 31.
Assets Liabilities
Cash $52,600 Accounts payable $9,100
Supplies 13,400 Utilities payable 2,400
Prepaid rent 24,000 Salaries payable 3,500
Land 200,000 Notes payable 15,000
Required:
Prepare a statement of stockholders’ equity. Prepare a balance sheet.
Answer and Explanation:
The preparation of the statement of the stockholder equity and balance sheet would be shown in the attachment below:
The formulas for ending retained earning balance and stockholder equity is
Ending retained earnings = Opening retained earnings + net income - dividend paid
And, the ending equity is
= Opening equity + additional shares
The same would be shown in the attachment
The production possibilities frontier will shift outward
A.
if resources are used to produce consumption goods.
B.
if production occurs outside the production possibilities frontier.
C.
if resources are not used in production.
D.
.if resources are not used to produce capital goods
E.
.if technological advances occur
D. if resources are used to produce capital goods.
Production possibilities frontierThe PPF (production possibilities frontier) is a collection of points along which a country's economy allocates its resources most efficiently to produce as many things as feasible.The Production Possibilities Curve, also known as the Production Possibilities Frontier, is a graph that indicates how many units a firm can produce if it only makes two items and uses all of its resources efficiently.The production possibilities frontier will shift outward D. if resources are used to produce capital goods.For more information:
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9. Physical and mental examinations:
A. are not legitimate forms of discovery because such information is privileged.
B. are permissible forms of discovery if physical or mental condition of the party is relevant and requires a court
order.
C. are legitimate forms of discovery without court order.
D. are not permissible because it is an invasion of one's privacy.
Answer:
d
Explanation:
palaran mode pramissss
QS 4-15 Computing and analyzing gross margin ratio LO A2 Carrier Lennox Trane York Sales $ 150,000 $ 550,000 $ 38,700 $ 255,700 Sales discounts 5,000 17,500 600 4,800 Sales returns and allowances 20,000 6,000 5,100 900 Cost of goods sold 79,750 329,589 24,453 126,500 Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. (Round your gross margin ratio to 1 decimal place; i.e.; 0.2367 should be entered as 23.7%.)
Answer:
Maybe is you payed attention you would have knew the answer
Explanation:
Good luck :))
Carrier -
Net Sales - $125,000Gross Profit - $45,250Gross Margin Ratio - 36.2%Lennox -
Net Sales - $526,500Gross Profit - $196,911Gross Margin Ratio - 37.4%Trane -
Net Sales - $33,000Gross Profit - $8,547Gross Margin Ratio - 25.9%York -
Net Sales - $250,000Gross Profit - $123,500Gross Margin Ratio - 49.4%How to compute the aboveHere are the calculations for each company -
Carrier -
Net Sales = Sales - Sales Discounts - Sales Returns and Allowances
Net Sales = $150,000 - $5,000 - $20,000 = $125,000
Gross Profit = Net Sales - Cost of Goods Sold
Gross Profit = $125,000 - $79,750 = $45,250
Gross Margin Ratio = (Gross Profit / Net Sales) * 100
Gross Margin Ratio = ($45,250 / $125,000) * 100 = 36.2%
Lennox -
Net Sales = $550,000 - $17,500 - $6,000 = $526,500
Gross Profit = $526,500 - $329,589 = $196,911
Gross Margin Ratio = ($196,911 / $526,500) * 100 = 37.4%
Trane -
Net Sales = $38,700 - $600 - $5,100 = $33,000
Gross Profit = $33,000 - $24,453 = $8,547
Gross Margin Ratio = ($8,547 / $33,000) * 100 = 25.9%
York -
Net Sales = $255,700 - $4,800 - $900 = $250,000
Gross Profit = $250,000 - $126,500 = $123,500
Gross Margin Ratio = ($123,500 / $250,000) * 100 = 49.4%
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Ananda owns a clothing store that sells graphic T-shirts. N is the number of shirt she sells each month. the revenue function of her store is our equals 25n the cost function of her store is C equals 10n +900 using a calculator what is the breaking even point of Amanda store
Financial instruments Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors.
Identify the financial instruments based on the following descriptions.
a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Which of the following instruments are traded in the capital markets? Check all that apply.
a. Common stocks
b. Corporate bonds
c. Preferred stocks
d. Certificates of deposit
e. Long-term bank loans
The process in which derivatives are used to reduce risk exposure is called :________
Answer:
1a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
Identification: U.S. Treasury Bills (T-bills)
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
Identification: Certificate of deposit
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
Identification: Money Market Mutual Fund
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Identification: Lease Agreement
2. The instruments which are traded in capital markets are Common Stock, Preferred Stock, Corporate Bonds and Certificates of deposits excluding Long-term bank loans.
3. The process in which derivatives are used to reduce risk exposure is called hedging.
What are 4 status types that can be assigned to an estimate in QuickBooks Online?
Answer:
The status of estimates in QuickBooks Online is Pending, Accepted, Closed and Rejected.
Explanation:
The four status types are provided below:
PendingAcceptedClosedRejected→ Pending - To take account of something like the consumer, users can simply create a fresh quotation.
→ Accepted - The quotation has been somewhat acknowledged or confirmed by your client.
→ Closed - Around one several circumstances could be described here. Whether you have determined that you'll never seek particular goods as well as activity, or you'll never pay for something like this.
→ Rejected - The client opted not to acknowledge perhaps the appreciation.
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IN the light of Nike Case, identify the following:
Nike company marketing management.
Nike is following marketing orientation rather than a product orien
Nike's competitive advantage as a market leader.. identify Nike e
opportunities through the scanning tools.
Answer:
Nike company follows brand recognition marketing strategy.
Nike focuses on market trends rather than product features.
Explanation:
Nike has great brand image among its customers. It focusses on its brand and launches new products with heavy R&D experiences. The management of Nike focus on market orientation rather than product orientation. It identifies the market trends and then customizes its product according to customers needs.
Robert treats coffee and creamer as perfect complements and has very specific requirements for the ratio of creamer to coffee. He will drink coffee only if he has exactly 5.00 packets of creamer for every cup of coffee. Coffee is priced at $3.00 per cup and creamer at $0.25 per packet. In the questions below, give your answers to two decimal places.
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Answer:
a. Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Zero packets of creamer is the substitution effect.
Explanation:
a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________
The consumption ratio can be stated as follows:
5 Creamer = 1 cup of coffee
Budget line has an equation can also be given as follows:
B = (Pm * Qm) + (Pf * Qf) ...................... (1)
Where;
B = Budget = The amount Robert has to spend on coffee and creamer = $39.00
Pm = Price of creamer = $0.25
Qm = Quantity of creamer = ?
Pf = Price of coffee = $3.00
Qf = Quantity of coffee = ?
39 = (0.25 * Qm) + (3 * Qf)
39 = 0.25Qm + 3Qf
Since "5 Creamer = 1 cup of coffee". This also implies thal 1 creamer = 1 / 5 cup of coffee. Therefore, we have;
39 = 0.25Qm + (3 * 1/5 * Qm)
39 = 0.25Qm + (3/5)Qm
39 = 0.25Qm + 0.60Qm
39 = 0.85Qm
Qm = 39 / 0.85
Qm = 45.88
Qf = 45 / 5 = 9.18
Therefore, Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.
b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?
Since Robert treats coffee and creamer as perfect complements, this implies that there there is nothing like substitution effect under this condition.
Therefore, zero packets of creamer is the substitution effect.
You work in the customer care division at Flannery Electronics. Mr. Gallegos, a longtime customer, is experiencing a problem with his home theater system and has submitted a letter requesting that Flannery Electronics either fix or replace his system at no cost. Unfortunately, Mr. Gallegos’s customer service and factory warranties expired three months ago. You must write to Mr. Gallegos and inform him that Flannery will be unable to honor his request.
1. Should the tone for this message be formal or informal?
A. Formal
B. Informal
2. Which communication channel would be most appropriate?
A. Phone call
B. Letter
C. Instant message
D. Face-to-face meeting
3. Mr. Gallegos will most likely have a_____response to the message you send him.
4. Who might be the secondary audience for your message to Mr. Gallegos?
5. Assume you just wrote the following e-mail message to a subordinate about a presentation.
Hey Jim,
Nice work on that presentation. I’m going to send a copy to the CEO to show off your creativity. Congratulations to you and your team.
Speaking of teams, I’m sending a recommendation to Human Resources. Your leadership during the presentation really shows, and you deserve a promotion for all that hard work. A team is only as good as its leader, after all.
Before sending the message, it occurs to you that your e-mail will probably be forwarded to other subordinates.
What will you need to change to make the message appropriate for both a subordinate and other subordinates?
A. Start with the promotion discussion and use a more formal tone.
B. Focus on congratulating the team using each individual’s name and use a more formal tone. C. Send news about the promotion recommendation in a separate e-mail.
D. Make the message even more friendly and informal but focus only on congratulating the team.
Answer:
1. The tone of the message should be;
A. Formal
2. The communication channel that would be most appropriate is;
B. Letter
3. Mr. Gallegos will most likely have a negative response to the message you send to him.
4. The secondary audience for your message to Mr. Gallegos will be his
friends and family who might also be customers.your boss5. To make the message appropriate for both a subordinate and other subordinates, I will,
B. Focus on congratulating the team using each individual’s name and use a more formal tone.
C. Send news about the promotion recommendation in a separate e-mail.
Explanation:
1. Given the fact that the transaction between Mr. Gallegos and Flannery Electronics was an official one, a formal tone would be the best means of communication.
2. A formal letter will communicate the response of Flannery Electronics more appropriately.
3. Considering the fact that Mr. Gallegos is aggrieved, he will most likely have a negative response to the message.
4. Since the incident happened in his home, Mr. Gallegos will most likely convey details of the response to his family and friends. Your boss might also want to take a look at the letter to be sure that it aligns with the standards and best practices of the business.
5. To make the message more appropriate, I will send news about the promotion recommendation in a separate e-mail and then focus on congratulating the team in this particular message.
If TOMS advertised its shoes differently
Answer:
it might have more sales <3
Explanation:
The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows:
Resource Number of Moves Total Cost
Forklift depreciation:
Low 4,000 $3,200
High 15,000 3,200
Indirect labor:
Low 4,000 $83,200
High 15,000 147,000
Fuel and oil for forklift:
Low 4,000 $ $3,550
High 16,000 11,360
Required:
If required, round your answers to two decimal places. Enter a "0" if required.
1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components.
Forklift depreciation:
V $
F $
Y $
Indirect labor:
V $
F $
Y $ + $X
Fuel and oil for forklift:
V $
F $
Y $X
2. Using your knowledge of cost behavior, predict the cost of each item for an activity output level of 11,000 moves.
Forklift depreciation $
Indirect labor $
Fuel and oil for forklift $
Answer:
Results are below.
Explanation:
To calculate the variable and fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= LAC - (Variable cost per unit* LAU)
Forklift depreciation:
Low 4,000 $3,200
High 15,000 3,200
Depreciation is a fixed cost. It doesn't vary with the number of units produced.
Indirect labor:
Low 4,000 $83,200
High 15,000 147,000
Variable cost per unit= (147,000 - 83,200) / (15,000 - 4,000)
Variable cost per unit= $5.8
Fixed costs= 147,000 - (5.8*15,000)
Fixed costs= $60,000
Fixed costs= 83,200 - (5.8*4,000)
Fixed costs= $60,000
Fuel and oil for forklift:
Low 4,000 $ $3,550
High 16,000 11,360
Variable cost per unit= (11,360 - 3,550) / (16,000 - 4,000)
Variable cost per unit= $0.651
Fixed costs= 11,360 - (0.651*16,000)
Fixed costs= $944
Fixed costs= 3,550 - (0.651*4,000)
Fixed costs= $944
Now, the cost for 11,000 moves:
Depreciation= $3,200
Indirect labor= 60,000 + 5.8*11,000
Indirect labor= $123,800
Fuel and oil for forklift= 944 + 0.651*11,000
Fuel and oil for forklift= $8,105
What requires frequent safety and health inspections
Answer:
OSHA
Explanation:
By promoting transparency, the government can improve
a.profit margins
b.economies of scale
c.market efficiency
d.zoning
Answer:
Option c. is correct
Explanation:
By promoting transparency, the government can improve market efficiency.
The government should be transparent as transparency will also strengthen the democracy and effectiveness in Government. Openness provides information to the citizens about what their Government is doing for them.
Option c. is correct
Smith Brothers, a furniture manufacturer based in North Carolina, has tie-ups with raw material suppliers and shipping companies who provide Smith Brothers a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Smith Brothers charges more for its products on the West Coast than in other parts of the United States. Which of the following acts prohibits this practice?
a. Sherman Antitrust Act
b. Wheeler-Lea Amendment
c. Credit Card Accountability, Responsibility, and Disclosure Act
d.Telephone Consumer Protection Act
e. Robinson-Patman Act
Answer:
e. Robinson-Patman Act
Explanation:
Robinson-Patman Act is a federal law that aims to combat price discrimination by businesses. Companies are not allowed to supply goods at different prices in different locations.
The Act mostly applies to interstate trade and cooperatives are usually exempted.
In the given scenario Smith Brothers charges more for its products on the West Coast than in other parts of the United States. This is despite the fact that they get uniform cost of production across the country.
This is a violation of the Robinson-Patman Act
Risk is defined as:_____.
a. the tendency of people to evaluate the hazardousness of a situation or decision based on biases.
b. the estimated likelihood that a decision or action will have a negative consequence.
c. the degree to which probabilities cannot be assessed.
d. a product, process, or condition that potentially threatens people and their reproduction.
Answer:
The estimated likelihood that a decision or action will have a negative consequence
Explanation:
Risk is simply defined as a state of being Uncertain or not having the assurance as partains to loss. It is used in situations where probabilities of possible outcomes are known. Its estimate is not easy to go by.
Being Uncertain as partains to risk is having doubt about our ability to predict future outcomes. It usually is different across individuals even if risk is the same. Certain character may alter the Information and can limit it and it may be a good thing.
Brendan buys a used car in April 2020 from his neighbor for $20,000. After one month, he loses his job and decides to sell the car to get some cash. He sells the car for $22,000 to a car dealer. The dealer fixes a few things here and there and sells the car for $27,000 in July 2020. Because of these transactions, the 2020 nominal GDP increases by ______ dollars.
Answer:
the increase in nominal GDP is $29,000
Explanation:
The computation of increase in nominal GDP is as follows:
= Selling value of car + difference
= $22,000 + ($27,000 - $20,000)
= $22,000 + $7,000
= $29,000
hence, the increase in nominal GDP is $29,000
We simply added the selling value and the difference
Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work session and another at the afternoon work session. Gibson is in a competitive industry, and needs to increase productivity to stay competitive. They feel that a 20 percent increase is needed.
Gibson's management believes that the 20 percent increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 2000 units per day.
Calculate labor productivity for the initial situation
Calculate labor productivity for the hypothetical 25 percent increase, and its impact on output.
What is the productivity after the change in work rules?
Question Completion:
It is assumed that the hypothetical increase in labor productivity remains 20% as in the original question.
Answer:
Gibson Products
1. The Labor Productivity for the initial situation = 10
2. The Labor Productivity for the hypothetical 20% increase = 12
3. With the 20% increase in labor productivity, the output increased from 1,600 to 1,920 (1,600 * 1.2).
4. The Labor Productivity after the change in work rules = 12.5
Explanation:
a) Data and Calculations:
Current production = 1,600 valves per day
Number of workers = 20
Schedule of work each day = 7 a.m. to 4 p.m. (9 hours)
Break Time = 1 hour (30 + 15 + 15 minutes)
Total Productivity Time per day = 8 hours (9 - 1) * 20 = 160
Current productivity = Daily output/Daily Labor input
= 1,600/160 = 10
Hypothetical increase in productivity = 10 * 20% = 2
Hypothetical productivity = 12 (10 + 2)
Output with hypothetical productivity increase = 1,920 (1,600 * 1.2)
New Schedule of work = 7:30 a.m. until 4:30 p.m. (9 hours)
Break Time = 1 hour
Total Productivity Time per day = 8 hours (9 - 1) * 20 = 160
New output after the change in work rules = 2,000
Labor productivity for the initial situation = 1,600/160 = 10
Labor productivity for the hypothetical 20% increase = 12
Labor productivity after the change in work rules = 12.5 (2,000/160)
Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes $17,435 in direct materials cost and $10,100 in direct labor cost. A total of 1,350 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313
Answer:
the total manufacturing cost is $39,150
Explanation:
The computation of the total manufacturing cost assigned as follows:
Overhead costs is
= 115% of $10,100
= $11,615
Now the total manufacturing cost is
= Direct materials cost + Direct labor costs + Overhead costs
= $17,435 + $10,100 + $11,615
= $39,150
Hence, the total manufacturing cost is $39,150
Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $15,500 and the adjusted basis was $1,050 at the time of the accident. The taxi was repaired at a cost of $2,975 and insurance reimbursed Don $757 of this cost. What is the amount of Don's casualty loss deduction
Answer:
$293
Explanation:
Calculation for the amount of Don's casualty loss deduction
Using this formula
Casualty loss deduction amount=Adjusted basis -Insurance reimbursed
Let plug in the formula
Casualty loss deduction amount=$1,050- $757
Casualty loss deduction amount=$293
Therefore the amount of Don's casualty loss deduction will be $293
Consider an economy with a corn producer, some consumers, and a government. In a given year, the corn producer grows 30 million bushels of corn and the market price for corn is $5 per bushel. Of the 30 million bushels produced, 20 million are sold to consumers, 5 million are stored in inventory, and 5 million are sold to the government to feed the army. The corn producer pays $60 million in wages to consumers and $20 million in taxes to the government. Consumers pay $10 million in taxes to the government, receive $10 million in interest on the government debt, and receive $5 million in Social Security payments from the government. The profits of the corn producer are distributed to consumers.
Required:
a. Calculate GDP using (i) the product approach, (ii) the expenditure approach, and (iii) the income approach.
b. Calculate private disposable income, private sector saving, government saving, national saving, and the government deficit. Is the government budget in deficit or surplus?
Answer:
a. GDP using product approach
There are no intermediate goods inputs. Corn producer grows 30 million bushels of corn and each bushel of corn worth is $5.
GDP = 30 million * $5
GDP = $150 million
GDP using expenditure approach
i) Consumers buy 20 million bushels of corn
Consumption = 20 million * 5
Consumption (C) = $100 million
ii) Corn producer adds 5 million bushels to inventory
Investment = 5 million * $5
Investment (I) = $25 million
iii) Government buys 5 million bushels of corn
Government spending = 5 million * $5
Government spending (G) = $25 million
GDP = C + I + G
GDP = $100 + $25 + $25
GDP = $150 million
GDP using income approach
Profit income = $150 million - $60 million - $20 million
Profit income = $70 million
Government income = Taxes paid by the corn producer = $20 million
GDP = $60 million + $70 million + $20 million
GDP = $150 million
b. Private disposable income = GDP + Net factor payments + Government transfers + Interest on the government debt - Total taxes
Private disposable income = $150 million + 0 + $5 million + $10 million - $30 million
Private disposable income = $135 million
Private savings = Private disposable income - Consumption
Private savings = $135 million - $100 million
Private savings = $35 million
Government savings = Government tax income - Transfer payments - Interest on the government debt - Government spending
Government savings = $30 million - $5 million - $10 million - $5 million
Government savings = $10 million
National savings = Private savings + Government savings
National savings = $35 million + $10 million
National savings = $45 million
Government budget surplus = Government savings = $10 million
Government deficit = (-) $10 million
The correct amounts of different calculations in an economy with corn producer, consumers and government are as follows,
1. GDP as per product approach will be $150 million.
2. GDP as per the expenditure approach will be $150 million.
3 GDP as per the income approach will be calculated as $150 millions.
4. The net disposable income will be calculated as $135 million.
5. The private sector savings will be calculated as $35 million.
6. The government savings will be $10 million.
7. The National savings will be calculated as $45 million
8. And the government budget surplus is calculated as $10 million.
The calculation of financial status of an economyThe calculation of GDP can be done using the different approaches by using different formulas and putting the given values. [tex]\rm GDP\ Product\ Approach= \$30\ x\ 5\\\\\rm GDP\ Product\ Approach= \$150\ million[/tex]Using expenditure approach,[tex]\rm GDP = \$(100+25+25)\ million\\\\\rm GDP= \$150\ million[/tex]Using Income approach[tex]\rm GDP = \$(60+70+20)\ million\\\\\rm GDP = \$150\ million[/tex]Now calculating private disposable income [tex]\rm Private\ disposable\ income = GDP\ + Net\ factor\ payments\ + Government\ transfers\ + Interest\ on\ the\ government\ debt\ - Total\ taxes\\\\\rm Private\ disposable\ income = \$(150 + 0 + $5\ + $10\ - $30) \rm million\\\\\rm Private\ Disposable\ Income= \$135\ million[/tex]Now calculating Private Sector Savings[tex]\rm Private\ Savings = Private\ Disposable\ Income\ - Consumption\\\\\rm Private\ Savings = \$(135-100)\ million\\\\\rm Private\ Savings= \$35\ million[/tex]Now calculating government savings, [tex]\rm Government\ Savings\ = Government\ Tax\ Income\ - Transfer\ Payment\ - Interest\ Government\ Debt\ - Government\ Spending\\\\\rm Government\ Savings\ = \$(30 - $5 - $10 - $5) \rm million\\\\\rm Government\ Savings\ = \$10 million[/tex]Now calculating National Savings [tex]\rm National\ savings\ = Private\ savings\ + Government\ savings\\\\\National savings = \$(35 \ + $10) \rm million\\\\National\ savings = \$45\ \rm million[/tex]Now calculating government deficit\surplus [tex]\rm Government\ Budget\ Surplus = Government\ Savings\\\\\rm Government\ Budget\ Surplus = \$10 million[/tex]
Hence, the different financial calculations regarding the standings of the economy as on such date are as aforementioned, and it can be concluded that the government budget is in surplus.
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https://brainly.com/question/10876388
The full array of tangible products offered for sale by a business represents the business's
Group of answer choices
product mix.
services.
depth.
product line.
Suppose that, in the wake of Luon yoga pant recall, Lululemon instituted a policy requiring its manufacturing plants and materials suppliers to streamline work processes and thereby provide smooth, high-quality customer experiences. Which of the five types of external integration would such a policy represent
Answer:
The answer is "Material and service supplier integration".
Explanation:
The integration of materials and services between a business as well as its supply chain products and government agencies is coordinated. In the Ninja, Corporation realized the importance of such a move and picked the highest vendors. These companies should operate in collaboration with external providers and enhance customer quality, but Lululemon also adopted the very same approach to simplify their process including its suppliers.
During March, a firm expects its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is: Multiple Choice
Answer:
$65,000
Explanation:
contribution margin = total sales revenue - total variable costs = $160,000 - $95,000 = $65,000
if you want to calculate the contribution margin per units, all you need to do is divide the total contribution margin by the total number of units sold.
for example, if total units = 10,000
contribution margin per unit = $65,000 / 10,000 = $6.50
As of December 31, 2019, Sheffield Corp. had $3000 of raw materials inventory. At the beginning of 2019, there was $2500 of materials on hand. During the year, the company purchased $375000 of materials; however, it paid for only $322500. How much inventory was requisitioned for use on jobs during 2019
Answer:
the inventory that was requisitioned is $374,000
Explanation:
The computation of the inventory that was requisitioned as follows:
= Opening inventory + purchased inventory - ending inventory
= $2,500 + $375,000 - $3,000
= $374,000
hence, the inventory that was requisitioned is $374,000
The same would be considered