Use the following demand schedule to determine total and marginal revenues for each possible level of sales.
Product
Price Quantity Demanded Total Revenue Marginal Revenue
$2 0 $ ---
2 $
2 2
2 3
2 4
2 5
What can you conclude about the structure of the industry in which this firm is operating?
The industry is purely monopolistic.
The industry is purely oligopolistic.
The industry is an example of monopolistic competition.
The industry is purely competitive.
Answers
Answer:
please check the attached image for the completed table containing the answers
The industry is purely competitive.
Explanation:
please check the attached image for a clear image of the table used in answering this question
Total revenue = product price x quantity demanded
for example, total revenue when quantity demanded is 2 is $ x 2 = $4
Marginal revenue is change in total revenue.
marginal revenue = total revenue - previous total revenue
e.g. marginal revenue when quantity demanded is 2 is = $4 - $2 = $2
the structure of the industry is a purely competitive market because price is equal to marginal revenue.
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Related Questions
Which of the following expands a company's market, allows firms to grow, and makes them less dependent on their country's economy for success?
a. WTO
b. GATT
c. global marketing
d. legal environment
Answers
Answer:
global marketing
Explanation:
Global marketing is defined is marketing a country or company's product not only locally but also internationally.
it is the process of producing, placing, and marketing a business' or nations goods or services worldwide.
Reunion Corporation provides the following information. March 31, 2018 March 31, 2019 Net Income Preferred Dividends Total Stockholders' Equity Stockholders' Equity attrbutable to Preferred $425,500 $4.380,00 $5,1320 $5,132,000 Stock Number of Common Shares Outstanding 294464 195,1 Based on the information provided above, compute the earnings per share of Reunion Corporation as of March 31, 2019. (Round any intermediate calculations and your final answer to the nearest cent.)A) $1.22 B) $2.18 C) $1.74 D) $1.46
Answers
Answer:
C) $1.74
Explanation:
2018 2019
Net Income $358,000 $425,500
Preferred Dividends $0 $0
Total Stockholders' Equity Stockholders' $4,380,000 $5,132,000
Equity attributable to Preferred Stock $0 $0
Number of Common Shares Outstanding 294,464 195,168
earnings per share = (net income - preferred dividends) / average outstanding shares
net income 2019 = $425,500preferred dividends 2019 = $0average number of common stocks = (294,464 + 195,168) / 2 = 244,816EPS = $425,500 / 244,816 = $1.738 ≈ $1.74
Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Units Costs Beginning work in process inventory 2,000 Beginning work in process inventory Started 20,000 Direct materials $ 2,500 Ending work in process inventory 5,000 Conversion 6,360 $ 8,860 Status of ending work in process inventory Direct materials added 168,000 Materials—Percent complete 100 % Direct labor added 199,850 Conversion—Percent complete 35 % Overhead applied (140% of direct labor) 279,790 Total costs to account for $ 656,500 Ending work in process inventory $ 84,110 Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answers
Answer: kindly check attached picture
Explanation:
Production activities for MARCH:
Beginning work in process inventory = 2000
Units started in March = 20,000
Therefore, total units to account for :
(2,000 + 20,000) units = 22,000 units
Total units transferred out :
Total units to account for - Ending work in process:
(22,000 - 5,000) units = 17,000 units
Check attached picture for further explanation
Perteet Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $6.70
Direct labor $3.25
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.70
Fixed administrative expense $0.40
Sales commissions $0.50
Variable administrative expense $0.55
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:__________
a. $28,000
b. $14,800
c. $21,400
d. $18,100
Answers
Answer:
Total overhead cost= $21,400
Explanation:
Giving the following information:
When it produces and sells 5,000 units, its average costs per unit are as follows:
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
First, we need to calculate the total fixed manufacturing overhead:
Fixed overhead= 3*5,000= $15,000
Now, we can calculate the total overhead cost for 4,000 units.
Total overhead cost= total variable cost + total fixed cost
Total overhead cost= 1.6*4,000 + 15,000
Total overhead cost= $21,400
the pure expectations theory holds, which of the following statements is CORRECT? a. The maturity risk premium would be zero. b. The yield curve for Treasury securities would be flat, but the yield curve for corporate securities might be downward sloping. c. If 2-year bonds yield more than 1-year bonds, an investor with a 2-year time horizon would almost certainly end up with more money if he or she bought 2-year bonds. d. The yield curve for both Treasury and corporate bonds should be flat. e. The yield curve for Treasury securities cannot be downward sloping.
Answers
Answer: The Maturity Risk Premium would be zero.
Explanation:
The Pure Expectations Theory believes that forward rates are just a representation of what people expect Future rates to be.
For this reason therefore, it believed that the Maturity Premium is Zero amongst Long Term Treasury Securities and that the difference in interest rates attached to Treasury bonds of different maturities is simply a result of what people perceive future interest rates to look like but as for Maturity Premiums, it doesn't exist in long term Treasury Securities.
Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 225,000
Fixed manufacturing overhead cost $ 4,275,000
Variable manufacturing overhead cost per machine-hour $ 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,700. The following information was available with respect to this job:
Direct materials 1,702
Direct labor cost $ 1,221
Machine-hours used 84
Compute the total manufacturing cost assigned to Job P90.
Answers
Answer:
a. $21 per machine hours
b. $4,855
Explanation:
a. The computation of the plantwide predetermined overhead rate is shown below:
Plantwide predetermined overhead rate is
= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour
= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. Now the total manufacturing cost assigned is
Particulars Amount
Direct material $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.
Common stock—$10 par value, 150,000 shares
authorized, 62, 000 shares issued and outstanding $620,000
Paid—in capital in excess of par value, common stock 423,000
Retained earnings 552,000
Total stockholders ' equity 1595,000
On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $31 per share on February 5 before the stock dividend.
Required:
Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Answers
Answer:
TVX Company
Stockholders Equity Section of the Balance Sheet, February 28
Common stock $632,400
Paid in capital in excess of par value, Common stock $449,040
Retained earnings $513,560
Total Stockholders Equity $1,595,000
Workings
Common Stock
= Common Stock + Dividends Declared
= 620,000 + ( 2% * 62,000 shares * $10 par value)
= 620,000 + 12,400
= $632,400
Paid in capital in excess of par value, Common stock
Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.
= Balance + Dividends Declared
= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)
= 423,000 + 26,040
= $449,040
Retained earnings
= Retained Earnings - Dividends distributed
= 552,000 - (2% * 62,000 * $31)
= 552,000 - $38,440
= $513,560
HK Goods Inc. is a large conglomerate that operates only in its home country. The company competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel industries. Which of the following diversification strategies does this best illustrate?
A. Process diversification
B. Product diversification
C. Geographic diversification
D. Market diversification
Answers
Answer:
B. Product diversification
Explanation:
Based on this information it seems that HK Goods Inc. is following the diversification strategy known as product diversification. This strategy revolves around selling the same or different variations of a product but in various different markets. Which is what HK Goods Inc. is doing by competing in a large variety of markets such as consumer electronics, health care, hotel, airlines, education, and steel industries, but still selling the same base product in only one geographical location.
A firm sells peanuts in a perfectly competitive market. Upon increasing production output from 60 packages to 75 packages, the total revenue increased from $300to $375. What was the marginal revenue of this increase in production
Answers
Answer:
$5
Explanation:
The computation of marginal revenue is shown below:-
Marginal revenue = Change in total revenue ÷ Change in output
= ($375 - $300) ÷ (75 - 60)
= $75 ÷ 15
= $5
The marginal revenue could be computed by dividing the change in total revenue from the change in output so that the increased in production could come
Home equity line interest. Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75 percent, how big a home equity credit line can Sean and Amy obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Answers
Answer:
$135,000
$75,000
Explanation:
Home value = $180,000
Loan to Value ratio = 75%
Formula: Maximum loan amount = Home value x loan to value ratio
Maximum loan amount = $180,000 x 75%
Maximum loan amount = $135,000
If the value of house is $100,000 then,
$100,000 x 75% = $75,000
$75,000 would qualify as Tax deductible interest
ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?
Answers
Answer:
Debit Cash account $71,250
Debit Factoring charge $3,750
Credit Accounts receivable $75,000
Explanation:
Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.
When receivables are factored,
Debit Cash account
Debit Factoring charge
Credit Accounts receivable
Charge on factoring = 5/100 × $75,000
= $3,750
Amount to be received = $75,000 - $3,750
= $71,250
6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent
Answers
Answer:
The amount willing to pay to buy one share is $6.92.
Explanation:
The announcement by company to pay annual dividend = $0.10
2nd year divident amount = $0.20
3rd year divident amount = $0.30
4th year divident amount = $0.40
5th-year divident amount = $0.50
The increase in dividend = 2 percent.
The desired rate of return = 8%
Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)
=(0.5 × 1.02) / (0.08-0.02)
=8.5
Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)
=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5
=$6.92.
Customer service representatives (CSRs) often conceal their frustration when serving an irritating customer. This behavior from the CSRs is an example of
Answers
Answer:
emotional labor
Explanation:
This form of behavior or concealment of their frustrations demonstrated by the CSRs is an example of emotional labor. When in a workplace, employees are expected to conceal their emotions and instead display compassion to an ill patient, patience and understanding with an angry customer, or even enthusiasm in a long and boring meeting, even if they are fake reactions. These are all forms of emotional labor.
Bastille Corporation prepares monthly cash budgets.
Here are relevant operating budgets for 2017:
January February
Sales $360,000 $400,000
Purchases 120,000 130,000
Salaries 84,000 81,000
Administration expenses 72,000 75,000
Selling expenses 79,000 88,000
All sales and purchases are on account.
Budgeted collections and disbursement data are given below.
All other expenses are paid in the month incurred.
Administrative expenses include $1,000 of depreciation per month.
Other data:
1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January - collection of December 31, 2016 notes receivable $15,000; February - proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.
The company's cash balance on January 1, 2017 is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.
Required:
Prepare a cash budget for January and February.
Answers
Answer and Explanation:
The Preparation of the cash budget for January and February is prepared below:-
Bastille Corporation
Cash budget
for the month of January and February
Particulars January February
Beginning cash balance $46,000 $43,000
Add: Receipts
Customer collection $326,000 $378,000
Notes receivable collection $15,000 $0
Sale of marketable securities 0 $4,000
Total receipts $341,000 $382,000
Total cash available $387,000 $425,000
Less:
Cash payments during the
year
Purchases $110,000 $135,000
Salaries $84,000 $81,000
Administrative expenses $71,000 $74,000
Selling expenses $79,000 $88,000
Dividends 0 $10,000
Disbursement total $344,000 $388,000
Excess of cash
available $43,000 $37,000
Financing
Borrowings 0 $3,000
Repayments 0
Ending cash balance $43,000 $40,000
Note: February beginning balance is the balance of ending cash balance.
Squirrel Tree Services reports the following amounts on December 31.
Assets Liabilities and Stockholders’ Equity
Cash $ 8,300 Accounts payable $ 11,500
Supplies 2,400 Salaries payable 4,100
Prepaid insurance 4,100 Notes payable 26,000
Building 78,000 Common stock 40,000
Retained earnings 11,200
In addition, the company reported the following cash flows.
Cash Inflows Cash Outflows
Customers $ 96,000 Employee salaries $ 40,000
Borrow from the bank (note) 38,000 Supplies 22,000
Sale of investments 35,800 Dividends 15,500
Purchase building 98,000
Required:
1. Prepare a balance sheet.
2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sign.)
Answers
1. The preparation of the balance sheet is shown below.
2. The preparation of the cash flow statement is shown below.
1. Balance sheet:Squirrel Tree Services
Balance Sheet
For the year ended 31st December
Assets Amount Liabilities Amount
Cash $8,300 Accounts payable $11,500
Supplies $2,400 Salary payable $4,100
Prepaid insurance $4,100 Notes payable $26,000
Building $78,000
Total liabilities $41,600
Common stock $40,000
Retained earning $11,200
Total stockholder
equity $51,200
Total liabilities and
Total assets $92,800 stockholder equity $92,800
B. Cash flow statement:
Squirrel Tree Services
Cash flow
For the year ended 31st December
Particulars Amount
Cash flow from operating activities
Cash inflow from customers $96,000
Cash outflow for salaries ($40,000)
Cash outflow for supplies ($22,000)
Net cash flow from operating activities $34,000
Cash flow from investing activities
Sale of investment $35,800
Purchase of building ($98,000)
Net cash flow from investing activities ($62,200)
Cash flow from financing activities
Borrow from bank $38,000
Dividends ($15,500)
Net cash flow financing activities $22,500
Net increase in cash ($5,700)
Beginning cash of the year $15,200
Ending cash of the year $9,500
Working note
we deduct the cash inflow from cash outflow and add cash to reach the beginning cash of the year.
Learn more about the balance sheet here: https://brainly.com/question/24531985
What is the purpose of internal controls? Managers utilize internal controls as a basis of employee performance reviews. Internal controls are used by managers as a way to reduce outstanding customer balances. Companies use strong internal controls to guarantee that loss is eliminated. To help managers know if the business is receiving the assets and services it has paid for.
Answers
Answer:
Companies use strong internal controls to guarantee that loss is eliminated.
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
Answer: To help managers know if the business is receiving the assets and services it has paid for.
Explanation:
The cost of raising capital through retained earnings is__________ the cost of raising capital through issuing new common stock.
Answers
Answer:
less
Explanation:
flotation costs are the cost incurred when issuing new common stock.
there are no flotation cost when using retained earnings to raise new capital.
Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.
SMART TOUCH LEARNING
Post-Closing Trial Balance December 31, 2016
Balance
Account Title Debit Credit
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Common Stock 8400
Retained Earnings 22300
Total 1001,00 100100
Answers
Answer:
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
Explanation:
SMART TOUCH LEARNING
Balance Sheet
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Total Assets $ 87,000
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Total Liabilities $ 56,300
Common Stock 8400
Retained Earnings 22300
Owner's Equity / Retained Earnings $30,700
Total Liabilities and Owner's Equity $ 87,000
The accounting equation is
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
32900+ 6300+400 + 10900+ 10900+25600 = 17500 + 2600 + 1300 + 1700 + 33200 + 8400 22300
The total of Assets of a company are always equal to the total Liabilities and Owner's Equity.
Adding the assets we get $ 87,000 which is the same as the total of Liabilities and Owner's Equity.
A job cost sheet of Fugate Company is given below.
Job Cost Sheet
Date Direct Materials Direct Labor Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825
22 480 720
24 1,000
27 1,870
31 670 1,005
Cost of completed job:
Direct materials.
Direct labor.
Manufacturing Overhead.
Total cost.
Unit cost.
Requried:
a. What is the predetemined manufacturing overhead rate?
b. What are the total cost and the unit cost of the completed job?
c. Prepare the entry to record the completion of the job.
Answers
Answer:
A.Direct material 5,320
Direct labour 1,700
Manufacturing overhead 2,550
B. Total cost 9,570
Unit cost 6.38
C. Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Explanation:
A. Calculation for the predetemined manufacturing overhead rate
Date Direct material Direct Labour Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825 825
22 480 720 720
24 1,000
27 1,870
31 670 1,005
Total 5,320 1,700 2,550
B. Calculation for the total cost and the unit cost of the completed job
Cost of Completed job :
Direct material 5,320
Direct Labour 1,700
Manufacturing Overhead 2,550
Total Cost 9,570
Unit Cost = Total Cost / Number of units
Unit cost = 9,570/1,500
Unit cost = 6.38
C.Therefore when a job is fully completed, thebFinished goods inventory account will be
debited with the correspondent credit of Work in progress account.
Journal entry
May.31
Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
In producing jelly beans, 1,000 hours of direct labor were used at a rate of $12 per hour. The standard was 1,100 at $12.25 per hour. What is the direct labor efficiency variance
Answers
Answer:
Efficiency variance = $1,225 favorable
Explanation:
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate .
It occurs as result of workers working faster or slower than expected (i.e standard hour )
Hours
standard hours 1, 100
Actual hours 1,000
efficiency varainec in Labour hour 100 favorable
Standard labour rate × $12.25f
Efficiency variance $1,225 favorable
Efficiency variance = $1,225
Check my work Check My Work button is not enabled Item 1Item 1 1.11 points QS 7-9 Identifying journal of entry LO P1, P2, P3, P4 Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Identify the journal in which each of the transactions should be recorded.
Answers
Answer:
Purchases and Sales made on account/ bought on credit will go to the Purchases or Sales journal respectively. When transactions are done in cash, payments go to the Cash Payments Journal and cash received goes to the Cash Receipts Journal.
May 1 - Purchase Journal. May 8 - Sales Journal. May 14 - Purchases Journal May 17 - Purchase JournalMay 24 - Cash Receipt JournalMay 28 - Cash Payments JournalMay 29 - Cash Payments JournalWhich of the following products is most likely to be produced in a process operations system?
A. Airplanes
B. Cereal Bridges
C. Designer bridal gowns
D. Custom cabinets
Answers
Answer:
Cereal
Explanation:
Process operations system which is also known as either process manufacturing or process production can be defined as the way of producing a product in mass, by making use of mass production method and this product are often produce in a continuous flow.
Therefore CEREAL is the products that is most likely to be produced in a process operations system because the production of Cereal is mostly carried out or produce in a process operations system.
In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars?
Answers
Answer:
The car will be selling for $10250 today
Explanation:
To calculate the selling price of the car in dollars today, we have to convert the value of 1476000 yen into dollars based on the exchange rate between dollars and yen today. It is known that the car will be sold for the same amount of yen today for which it was sold in 1985 and this amount is 1476000 yen.
We know that 1 dollar equals 144 yen.
Thus, let x be the number of dollars that equal 1476000 yen today.
x = 1476000 / 144
x = $10250
The car will be sold for $10250 today
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answers
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
Answers
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $44,000 and $1,300, respectively. During 2022, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,100 at December 31, 2022. Bad debt expense for 2022 would be:
Answers
Answer: $3,575
Explanation:
Opening balance for Allowance for Noncollectable Accounts for 2022 is closing balance for 2021 = $1,300.
Cool wear wrote off $775 during the year which would come out of the allowance;
= 1,300 - 775
= $525
An allowance of $4,100 was determined for the year which means that the Bad debt expense is the difference between the determined allowance and the current balance because this is the amount that the account had to be increased by to cater for the bad debt expense.
= 4,100 - 525
= $3,575
If workers leave a country to seek out better opportunities in another country, then this will move the original economy up along a stationary short-run aggregate supply curve. move the original economy down along a stationary short-run aggregate supply curve. shift the short-run aggregate supply curve of the original country to the left. shift the short-run aggregate supply curve of the original country to the right.
Answers
Answer: Shift the short-run aggregate supply curve of the original country to the left.
Explanation:
Workers are an input in the production of goods and services. If workers in an economy reduce in number, this would mean that there would be less workers able to produce goods and services in the country. This will invariably lead to a decrease in the amount of goods and services supplied and when there is a decrease in supply, the Short-Run Aggregate Supply curve will shift to the left to reflect this.
On January 2, 20X5, Park Co. purchased 10 percent of Sky, Inc.'s outstanding common shares for $400,000. Park is the largest single shareholder in Sky, and Park's officers are a majority on Sky's board of directors. As a result, Park is able to exercise significant influence over Sky. Sky reported net income of $500,000 for 20X5, and paid dividends of $150,000. In its December 31, 20X5, balance sheet, what amount should Park report as investment in Sky?
Answers
Answer:
The answer is $435,000
Explanation:
Initial Investment-----------------$400,000
Park Co's share of Sky's net income(10% x $500,000) --- $50,000
Park Co's share of Sky's dividend (10% x $150,000) ---------------------- ($15,000)
Reported Investment--------- $435,000
Therefore, Park's balance sheet
will report $435,000 as the investment in Sky's in the year ended December 31, 20X5.
a. Prepare a cost of goods manufactured statement for January.
b. Determine the cost of goods sold for January.
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories January 1 January 31
Materials $314,000 $276,800
Work in process 216,000 239,800
Finished goods 163,200 189,000
January 31
Direct labor $567,000
Materials purchased during the month 606,600
Factory overhead incurred during the month:
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Answers
Answer:
a.Cost OF Goods Manufactured $ 1324,680
b.Cost OF Goods Sold 1298,880
Explanation:
Sandusky Manufacturing Company
Cost of Goods Manufactured Statement
For the Month Ended January 31
Materials Inventories Beginning $314,000
Add Materials purchased during the month 606,600
Less Materials Inventories January 31 Ending $276,800
Total Materials Used $ 643,800
Direct labor $567,000
Factory overhead incurred during the month: $ 138280
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Total Manufacturing Costs 1349,080
Add Work in process Beginning 216,000
Cost OF Goods Available For Manufacture $ 1565,080
Less Work in process Ending 239,800
Cost OF Goods Manufactured $ 1325,280
The Cost OF Goods Manufactured Statement is obtained by the following formula
Cost OF Goods Manufactured = Materials used+ direct labor+ FOH + WIP Beginning - WIP Ending.
Sandusky Manufacturing Company
Cost of Goods Sold Statement
For the Month Ended January 31
Cost OF Goods Manufactured $ 1325,280
Add Finished goods Beginning 163,200
Cost OF Goods Available For Sale 1488,480
Less Finished goods Ending 189,000
Cost OF Goods Sold 1299,480
The Cost OF Goods Sold Statement is obtained by the following formula
Cost OF Goods Sold = Cost OF Goods Manufactured+ FG Beginning - FG Ending.
Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? Select the correct answer. a. $7,560 b. $1,890 c. $0 d. $5,670 e. $3,780
Answers
Answer:
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
Explanation:
In order to calculate the total dividends, if any, will it pay out, we would have to calculate first the residual dividend a follows:
residual dividend=forecasted net income-(percentage equity*capital budget)
According to the given data we have the following:
forecasted net income=$600,000
percentage equity=40%
capital budget=$2,000,000
Therefore, residual dividend=$600,000-(40%*$2,000,000)
residual dividend=-$200,000
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0