Answer:
Temp Force required rate of return is 13%
The shareholders of B&B will have rights of dividend in the company's profit.
Explanation:
Temp Force company will require a rate of return based on the risk of the company. The beta factor determines the business risk of the company. For the Temp Force the beta factor is 1.2
Required rate of return of temp Force;
r = Rf + (Rm - Rf) * beta
r = 7% + (12% -7%) * 1.2
r = 13%
B&B shareholders will have voting rights in the company and they are eligible for any dividends declared by the company. They will have rights to elect the director and attend the AGM and EOGM. These rights are given to shareholders to maintain good corporate governance in the company.
On January 1, 2017, Ayayai Company purchased 8% bonds having a maturity value of $200,000, for $216,849.76. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Ayayai Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.On January 1, 2017, Ayayai Company purchasedOn January 1, 2017, Ayayai Company purchased Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
1. 1/01/2017
Dr Bonds receivable 200,000
Dr Premium on bonds receivable 16,849.76
(216,849.76-200,000)
Cr Cash 216,849.76
2. Carrying amount of bonds
1/01/2017 216,849.76
1/01/2018 213,859.76
1/01/2019 210,691.35
1/01/2020 207,332.83
1/01/2021 203,772.8
1/01/2022 200,000
3. 31/12/2017
Dr Interest receivable 16,000
Cr Interest revenue 13,010
Cr Premium on bonds receivable 2,990
Explanation:
1. Preparation of the journal entry at the date of the bond purchase.
1/01/2017
Dr Bonds receivable 200,000
Dr Premium on bonds receivable 16,849.76
(216,849.76-200,000)
Cr Cash 216,849.76
2. Preparation of a bond amortization schedule.
Date Cash received Interest revenue Premium amortized Carrying amount of bonds
1/01/2017 216,849.76
1/01/2018 16,000 13,010 2,990 213,859.76
1/01/2019 16,000 12,831.59 3,168.41 210,691.35
1/01/2020 16,000 12,641.48 3,358.52 207,332.83
1/01/2021 16,000 12,439.97 3,560.03 203,772.8
1/01/2022 16,000 12,227.20 3,772.80 200,000
Workings;
1/01/2018
($200,000*8%)=16,000
($216,849.76*6%)=13,010
(16,000-13,010)=2,990
(216,849.76-2,990)=213,859.76
1/01/2019
($200,000*8%)=16,000
(213,859.76*6%)=12,831.59
(16,000-12,831.59)=3,168.41
(213,859.76-3,168.41)=210,691.35
1/01/2020
($200,000*8%)=16,000
(210,691.35*6%)=12,641.48
(16,000-12,641.48)=3,358.52
(210,691.35-3,358.52)=207,332.83
3.Preparation of the journal entry to record the interest revenue and the amortization on December 31, 2017.
31/12/2017
Dr Interest receivable 16,000
($200,000*8%)
Cr Interest revenue 13,010
($216,849.76*6%)
Cr Premium on bonds receivable 2,990
(16,000-13,010)
A company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up each batch of A requires $60 of labor while setting up a batch of B costs $80. Each unit of A generates a profit of $17 while a unit of B earns a profit of $21. The company can sell all the units it produces. The data for the problem are summarized below.
Hours required by
Operation A B Hours
Cutting 3 4 48
Welding 2 1 36
The decision variables are defined as:
xi = the amount of product i produced
yi = 1 if xi > 0 and 0 if xi = 0
A spreadsheet implementation of the problem is shown below.
Q1. What is the objective function for this problem?
a. Maximize: 17x1 + 21x2 - 60y1 - 80y2
b. Minimize: 60y1 + 80y2
c. Minimize: 17x1 + 21x2 - 60y1 - 80y2
d. d. Maximize: 17x1 + 21x2
Q2. What is the appropriate formula to use in cell E8 of the Excel implementation of the ILP model for this problem?
a. =SUMPRODUCT(B8:C8,B14:C14) - SUMPRODUCT(B5:C5,B7:C7)
b. =SUMPRODUCT(B5:C5,B7:C7) - SUMPRODUCT(B8:C8,B14:C14)
c. =SUMPRODUCT(B5:C5,B7:C7) - SUMPRODUCT(B8:C8,B15:C15)
d. =SUMPRODUCT(B5:C5,B7:C7) - B8:C8
Q3. Which of the following algebraic constraints creates the link between setting up to produce A's and making some A's for this problem?
a. x1 - 18 y1 > 0
b. x1 - y1 = 0
c. = if(x1 > 0, y1 = 1, y1 = 0)
d. x1 < 16y1
Answer:
The responses to this question can be defined as follows:
Explanation:
In question 1, the objective function to solve the given problem is: [tex]\text{Maximize:} 17x_1 + 21x_2 - 60y_1 - 80y_2[/tex]
In question 2, "[tex]=\text{SUMPRODUCT}(B5:C5,B7:C7) - \text{SUMPRODUCT}(B8:C8,B14:C14)[/tex] "
is the appropriate choice for the formula, which is using in cell E8, and it is also used in the ILP model.
In question 3, the choice "[tex]x_1 < 16y_1[/tex]" is used in the algebraic constraint for creating the link between setting up to produce A's and making some A's.
A fiscal policy *
1) Is performed by the central bank
2) Effective in the short run
3) Depends on the interest rate in the market
4) None of the above
Answer:
4
non of
the above
I hope
it
give you
answer
Choose the three primary ledgers used in double-entry bookkeeping?
Accounts payable ledger*
Accounts receivable ledger
Bookkeeping software
General ledger
The chart of accounts
Journals
Answer:
General ledger
The chart of accounts
Journals
Explanation:
The general ledger contains all the transactions carried out and registered by the company.
The chart of accounts is lists and codes all the accounts that are used by the by the company, e.g. cash might be account 101.
The journal entries are the individual entries recorded in the general ledger or any other specific ledger.
Which would an economist say best describes a "trust"?
a. a federal order
b. a public good
c. an illegal combination
d. a feeling in a market
An economist would say that "an illegal combination" best describes a "trust." In economics, a trust refers to an illegal combination or arrangement where multiple companies or entities collude to control and monopolize a particular market or industry, limiting competition and manipulating prices to their advantage. Thus, option c is correct.
In the context of trusts, an illegal combination refers to the collusion or agreement among multiple companies or entities to control and manipulate a market in an anti-competitive manner. It involves practices such as price-fixing, market allocation, and monopolistic behavior that are prohibited by antitrust laws.
The term highlights the unlawfulness and negative implications of such arrangements, as they distort market forces, hinder fair competition, and potentially harm consumers by limiting choices, driving up prices, and suppressing innovation.
Legal measures are in place to prevent and address these illegal combinations to safeguard market integrity and promote fair and open competition.
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Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assigning to each product line, the controller, Robert Hermann, has developed the following information.
Car Truck
Estimated wheels produced 42,000 11,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $863,000.
a. Calculate the overhead rate.
b. Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours are used to allocate overhead costs.
Answer:
Explanation:
Answer:
Total
Units Produced
42000
15000
Hours per unit
1
3
Total Hours
42000
45000
87000
So total hours required = 87000 hours
Now we will find overhead rate per hour
Total Overhead= $846.000
Overhead Rate per Hour
=$ 846000/87000
= $9.72 per Hrs.
overhead rate per hour =$ 9.72 per hour
_______________________________________
Car
Wheel
Total Hrs.
42000
45000
Hourly Rate
$9.72
$9.72
Allocated Overhead
$408414.00
$437586
_________________________________________________
Activity
No. of
Activity
Overhead Cost
Cost Per Activity
Setting up machines
1000
$215,000
$215.00
Assembling
87000
$347,000
$3.99
Inspection
1200
$284,000
$236.67
Activity
Car=A
Truck =B
Rate=C
Total $ Car=A*C
Total $ Truck=B*C
Setting up machines
200
800
$215.00
$43,000.00
$172,000.00
Assembling
42000
45000
$3.99
$167,517.24
$179,482.76
Inspection
100
1100
$236.67
$23,666.67
$260,333.33
$234,183.91
$611,816.09
What requires frequent safety and health inspections
Answer:
The food and drug industry
Explanation:
The Pure Food and Drug Act of 1906
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:Cash and cash equivalents $ 5,000Accounts receivable (net) 20,000Inventory 60,000Property, plant, and equipment (net) 120,000Accounts payable 44,000Salaries payable 15,000Paid-in capital 100,000The only asset not listed is short-term investments. The only liabilities not listed are $30,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.Required:Determine the following at December 31, 2021:1. Total current assets2. Short-term investments3. Retained earnings
Answer:
1. $90,000
2. $5,000
3. $20,000
Explanation:
1. Calculation to Determine the Total current assets
First step is to calculate the Total current liabilities using this formula
Total current liabilities=Accounts payable + Wages payable + Accrued Interest
Let plug in the formula
Total current liabilities=$44,000 + $15,000 + $1,000
Total current liabilities= $60,000
Now let calculate the Total current assets using ratio 1.5
Total current assets =1.5 × $60,000 x 1.5
Total current assets=$90,000
Therefore the Total current assets will be 90,000
2. Calculation to Determine the Short term investments using this formula
Short term investments=Total current assets - Cash - Accounts receivable - Inventories
Let plug in the formula
Short term investments=$90,000 - $5,000 - $20,000 - $60,000
Short term investments= $5,000
Therefore the Short term investments will be $5,000
3. Calculation to Determine the Retained earnings
First step is to calculate the Total Assets
Cash and cash equivalents $5,000
Add Accounts receivable (net) $20,000
Add Inventories $60,000
Add Short term investments $5,000
Add Property, plant, and equipment (net) 120,000
TOTAL ASSETS $210,000
Now let calculate the Retained Earnings
Total Assets $210,000
Less Accounts payable ($44,000)
Less Salaries payable ($15,000)
LessAccrued interest ($1,000)
Less Notes payable ($30,000)
Less Paid-in capital ($100,000)
RETAINED EARNINGS $20,000
Therefore the Retained Earnings will be $20,000
The following answer of "The Stonebridge Corporation" at December 31, 2021:
Total current assets will be 90,000 Short term investments will be $5,000Retained Earnings will be $20,000
"The Stonebridge Corporation"
Answer 1:
Total current assets
Total current liabilities=Accounts payable + Wages payable + Accrued InterestTotal current liabilities=$44,000 + $15,000 + $1,000Total current liabilities= $60,000Total current assets=$90,000
Total current assets using ratio 1.5Total current assets =1.5 × $60,000 x 1.5Total current assets=$90,000Therefore, the Total current assets is 90,000.
Answer 2:
Short term investments
Short term investments=Total current assets - Cash - Accounts receivable - InventoriesShort term investments=$90,000 - $5,000 - $20,000 - $60,000Short term investments= $5,000Thus, the Short term investments is $5,000.
Answer 3:
Retained Earnings
Total Assets $210,000Less Accounts payable ($44,000)Less Salaries payable ($15,000)LessAccrued interest ($1,000)Less Notes payable ($30,000)Less Paid-in capital ($100,000)Retained earnings$20,000
Working Notes:
Cash and cash equivalents $5,000
Add Accounts receivable (net) $20,000Add Inventories $60,000Add Short term investments $5,000Add Property, plant, and equipment (net) 120,000Total Assets $210,000
Thus, the Retained Earnings is $20,000.
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Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash collections from customers for services yet to be provided totaled $48,000. An $10,000 gain from the sale of property and equipment occurred. Interest income totaled $8,700. How much of these items were included in operating income
Answer:
$434,000
Explanation:
The total amount that should be included in the operating income as follows:
1. Cash sales $135,000
2. Credit sales $289,000
3. Gain from the sale of property and the equipment $10,000
Operating income $434,000
hence, the $434,000 should be included in the operating income
Prepare a classified year-end balance sheet, (Note: A $9,000 installment on the long-term note payable is due within one year.) The calendar year-end adjusted trial balance for Blessinger Co. follows
BLESSINGER CO.
Adjusted Trial Balance
December 31, 2017
Cash $112,000
Accounts receivable 27,000
Prepaid Prepaid 15000
Insurance 9000
Office supplies 3300
Office equipment 38000
Accumulated depreciation-Equipment 3200
Building 288000
Accumulated depreciation-Building 42000
Land 700,000
Accounts payable 25800
Salaries payable 14,500
Interest payable 2,500
Long-term note payable 72,000
P.Blessinger, Capital 910,000
P. Blessinger, Withdrawals 200,500
Service fees earned 430,800
Salaries expense 90,000
Insurance expense 5200
Rent expense 5000
Depreciation expense-Equipment 800
Depreciation expense-Building 7000
Totals $1500,800 $1500,800
Answer:
Blessinger Co.
Classified Balance Sheet as at December 31, 2017
ASSETS
Non- Current Assets
Office equipment $38,000
Accumulated depreciation-Equipment ($3,200) $34,800
Building $288,000
Accumulated depreciation-Building ($42,000) $246,000
Land $700,000
Total Non Current Assets $980,800
Current Assets
Accounts receivable $27,000
Prepaid Prepaid $15,000
Insurance $9,000
Office supplies $3,300
Cash $112,000
Total Current Assets $166,300
TOTAL ASSETS $1,157,100
EQUITY AND LIABILITIES
LIABILITIES
Current Liabilities
Accounts payable $25,800
Salaries payable $14,500
Interest payable $2,500
Note Payable $9,000
Total Current Liabilities $51,800
Non-Current Liabilities
Long-term note payable ($72,000 - $9,000) $63,000
Total Non- Current Liabilities $63,000
TOTAL LIABILITIES $114,800
EQUITY
P.Blessinger, Capital $910,000
P. Blessinger, Withdrawals ($200,500)
Profit for the Year $332,800
TOTAL EQUITY $1,042,300
TOTAL EQUITY AND LIABILITIES $1,157,100
Explanation:
A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.
Calculation of Profit for the year :
$ $
Service fees earned 430,800
Less Expenses
Salaries expense 90,000
Insurance expense 5,200
Rent expense 5,000
Depreciation expense-Equipment 800
Depreciation expense-Building 7,000 (108,000)
Profit for the year 332,800
The Koster Co. currently pays an annual dividend of $1.00 and plans on increasing that amount by 5% each year. The Keyser Co. currently pays an annual dividend of $1.00 and plans on increasing their dividend by 3% annually. Given this, it can be stated with certainty that the _____ of the Koster Co. stock is greater than the _____ of the Keyser Co. stock.
Answer:
rate of capital gain
rate of capital gain
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why is it important for Holmes not to be the only person interviewing job candidates?
Answer:
Sherlok asked him wasssupppp and got job.
Explanation:
As soon as products are completed, their product costs are transferred from Raw Materials Inventory to Finished-Goods Inventory. True False
Answer:
True
Explanation:
In the case when the products is completed in all respects so here the product cost that involved direct material cost, direct labor cost, and overhead cost from raw material inventory would be transformed to the finished goods inventory
Therefore the given statement is true
hence, the correct option is first
Given the equity portion of a firm's balance sheets below, determine the average price per share at which new shares were sold by the firm in 2019.
2018 2019
Common Stock ($0.40 par) $620,600 $830,200
Capital Surplus $9,025,000 $13,726,000
Retained Earnings $17,400,000 $19,100,600
No answer text provided.
$12.22 per share
$9.37 per share
$12.62 per share
$8.97 per share
Answer:
$9.37 per share
Explanation:
The computation of the average price per share is shown below:
Common stock in the year 2019 $830,200
Less Common stock in the year 2018 $620,600
Rise in common stock $209,600
Divided by Par value per share $0.40
Number of new common shares sold 524,000
Now
Increase in capital surplus [$13,726,000 - $9,025,000 ] $4,701,000
Add: Increase in common stock $209,600
Total proceeds from sale of new shares $4,910,600
Divided by Number of new common shares sold 524,000
Average price per share 9.37
Problem 10-3A The following section is taken from Hardesty's balance sheet at December 31, 2016. Current liabilities Interest payable $ 46,500 Long-term liabilities Bonds payable (9%, due January 1, 2020) 565,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2017. (b) Assume that on January 1, 2017, after paying interest, Hardesty calls bonds having a face value of $160,000. The call price is 107. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2017, to accrue the interest on the remaining bonds.
Answer:
Hardesty
a) January 1, 2017:
Debit Interest payable $46,500
Credit Cash $46,500
To record the payment of interest on bonds.
b) January 1, 2017:
Debit Long-term liabilities Bonds payable $160,000
Debit Bonds Redemption Expense $11,200
Credit Cash $171,200
To record the redemption of bonds at 107.
c) December 31, 2017:
Debit Interest Expense $36,450
Credit Interest Payable $36,450
To record interest expense for balance of bonds.
Explanation:
a) Data and Calculations:
Current liabilities
Interest payable $ 46,500
Long-term liabilities Bonds payable (9%, due January 1, 2020) $565,000
Interest payment date = January 1
Face value of bonds called = $160,000
Call price = 107
Bond redemption expense = ($160,000 * 107/100) - $160,000 = $11,200
Interest expense for 2017:
= ($565,000 - $160,000) * 9% = $36,450
A speculator can choose between buying 100 shares of a stock for $40 per share and buying 1000 European call options on the stock with a strike price of $45 for $4 per option.For second alternative to give a better outcome at the option maturity,the stock price must be above:_________.A) $45B) $46C) $55D) $50
Answer:
D) $50
Explanation:
When stock price = 50
Profit on shares = (Stock price - Purchase price) * Number of shares = (50 - 40) * 100 = 1000
Profit on call option = Number of options * (stock price - exercise price - premium paid) = 1000 * (50 - 45 - 4) = 1000
Hence when stock price = 50, both the options would yield the same profit but the call option strategy would have an upper hand in profitability for every price increase above the $50 level because then the share buying strategy would yield $100 profit for every $1 price increase whereas the option buying strategy would yield $1000 profit for the same level of price increase.
Hence for the second option to yield higher profit, the stock price should be above 50.
A local manufacturing business has announced that it will be closing its factory in your area and opening a new factory outside of the US. In one or more fully formed paragraphs, weigh the advantages and disadvantages of this action to your community, the business, and/or the global economy. Identify at least three advantages and three disadvantages. Do you support this change
Answer:
The disadvantages are in the first paragraphs and the advantages are in the second paragraphs.
Explanation:
One the one hand, the fact that the company has decided to close the local factory and open another one abroad indicates a serious of factors to have in mind when it comes to the community and the local area. To start, the local area will be affected obviously by this decision by losing jobs and also by losing money that will not longer be injected in the economy. Moreover, the business itself will have to do it all over to find new employers and calculate every cost and every aspect of the new factory abroad. And finally, in terms of the global economy this decision will affect as well the interaction that the company will now have from outside when it comes to doing business with local companies.
On the other hand, the decision will also bring advantages. When it comes to the business, the most quickly thought is that they will be able to lower the cost of producing if the choose a good country. In the case of the global economy this will also improve the movement of money from one country to another and more important the rise of new jobs in another place abroad. And finally, for the local community the most quickly advantage could be the case of the reduction in the polution of the area regarding the fact that the company is no longer working there.
On July 1, 2021, Ross-Livermore Industries issued nine-month notes in the amount of $1,200 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Answer and Explanation:
The computation of the interest expense that should be recorded to the following independent assumptions are as follows:
For December 31, 2021
= $1,200 × 11% × 6 months ÷ 12 months
= $66 million
For September 30, 2021
= $1,200 × 8% × 3 months ÷ 12 months
= $33 million
For October 31, 2021
= $1,200 × 7% × 4 months ÷ 12 months
= $44 million
For January 31, 2022
= $1,200 × 4% × 7 months ÷ 12 months
= $77 million
Career choice, getting/keeping a job, career changes, career advancement skills are examples of
A. employability skills
B. diversity
C. professional image
D. transferable skills
Answer:
b
Explanation:
AdCreate negotiated a rate of 12.5% for a commission system payment with Worry Free Financial for a campaign in 2016. AdCreate arranged for the airing of three ads, during Newshour on CNN, in the first week of the launch campaign. AdCreate's income for these three ads in the first week was $49,375. Based on this information, which of the following is true?
I. The client (Worry Free Financial) paid AdCreate $425,625 for the three ads.
II. AdCreate paid CNN $425,625 for the three ads.
III. AdCreate paid CNN $345,625 for the three ads.
a. Ill only
b. I and ll
c. II only
d. I only
Answer:
a.) 111 only
Explanation:
Let amount paid = x
12.5% of x = $49375
0.125x = 49375
x = 49375 / 0.125
x = 395,000
The amount worry free financial paid Adcreate is $395,000 ;
Adcreate would subtract their 12.5% ($49,375) and pay CNN;
Amount adcreate paid CNN is :
$395,000 - $49,375 = $345,625
Hence, statements; I. The client (Worry Free Financial) paid AdCreate $425,625 for the three ads.
II. AdCreate paid CNN $425,625 for the three ads.
are untrue
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 60,000 of these balls, with the following results:
Sales (60,000 balls) $1,500,000
Variable expenses 900,000
Contribution margin 600,000
Fixed expenses 375,000
Net operating income $225,000
Required:
a. Compute the CM ratio and the break-even point in balls.
b. Compute the the degree of operating leverage at last year
Answer:
A. 37,500 balls
B.2.67
Explanation:
A. Compution for the CM ratio and the break-even point in balls.
First step is to calculate the Contribution margin
Selling price $25 100%
Variable expenses $15 60%
Contribution margin $10 40%
($25-$15)
Now let calculate the CM ratio and the break-even point in balls using this formula
Unit sales to break even=Fixed expenses/Unit contribution margin
Let plug in the formula
Unit sales to break even=$375,000/$10
Unit sales to break even= 37,500 balls
Therefore the CM ratio and the break-even point in balls will be 37,500 balls
b. Computation for the degree of operating leverage at last year
Using this formula
Degree of operating leverage =Contribution margin/Net operating income
Let plug in the formula
Degree of operating leverage=$600,000/$225,000=
Degree of operating leverage = 2.67 (rounded)
Therefore the degree of operating leverage at last year will be 2.67
Some firms pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?
Answer:
departmental rate
Explanation:
From the question we are informed about Some firms which pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. In this case, the approach likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation is departmental overhead rate.
The departmental overhead rate can be regarded as expense rate that is been calculated in production process of a factory for each of the departments. It varies at stages of the production process
Because private business is involved in certain aspects of our economy, it is a modified version of free enterprise.
True
False
True, private enterprise is a revised form of free enterprise because it is engaged in certain parts of our economy.
Define free enterprise.Free enterprise, often known as market system and capitalist, is a provision and demand-driven capitalist model.
True, private enterprise is a revised form of free enterprise because it is engaged in certain parts of our economy.
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You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving yourself that you are willing to pay $21 for the same trip tomorrow. Determine if you have violated the law of demand based on your choices, and why or why not that is the case.
Answer:
We do not violate the law of demand based on my choices
Explanation:
We do not violate the law of demand because the preference for the product changed after i experienced the good. Law of demand is not violated as the preference / utility derived from Uber changes after one ride. Now the consumer derives more utility from Uber, so the willingness to pay also increases.
The following information is related to Dickinson Company for 2020.
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Required:
Prepare a multiple-step income statement and a retained earnings statement.
Answer:
Dickson Company
Multi-step Income Statement for the year ended December 31, 2020:
Sales revenue $25,000,000
Cost of goods sold 16,000,000
Gross profit $9,000,000
Interest revenue 70,000
Total revenue $9,070,000
Selling and
administrative expenses 4,700,000
Write-off of goodwill 820,000 $5,520,000
Income from operations $3,550,000
Gain on the sale of investments 110,000
Loss due to flood damage (390,000)
Income before taxes 3,270,000
Income taxes for 2020 1,244,000
Net Income $2,026,000
Loss on the disposition of
the wholesale division (net of tax) (440,000)
Loss on operations of the
wholesale division (net of tax) (90,000)
Comprehensive Income $1,496,000
EPS = $2.992
Statement of Retained Earnings for the year ended December 31, 2020:
Comprehensive Income $1,496,000
Retained earnings balance, Jan, 1 980,000
Dividends: common stock 250,000
Dividends: preferred stock 80,000 (330,000)
Retained earnings, December 31 $2,146,000
Explanation:
a) Data and Calculations:
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
b) EPS = $2.992 ($1,496,000/500,000 shares)
Suppose Nationwide increases the insurance premium they charge for their auto policies by 6 percent. In response, the demand for State Farm auto policies in a small town increases from 1,500 to 1,650. What is the cross-price elasticity of demand for State Farm auto policies in this town?Using the midpoint formula, the cross-price elasticity of demand for State Farm auto policies is _____. (Round to 3 decimal places.)In this instance, auto insurance from Nationwide and auto insurance from State Farm are _____.
Answer:
1.667
Explanation:
% Change in Quantity Demanded in units = (1650 - 1500 / 1500)*100 = (150/1500) * 100 = 10%
% Change in Price = [(1.06x-x)/x]*100 = (0.06/1)*100 = 6%
Cross-price elasticity of demand is given Ec = (% Change in Quantity Demanded of good / % Change in Price of good)
Cross-price elasticity of demand = 10% / 6%
Cross-price elasticity of demand = 0.10 / 0.06
Cross-price elasticity of demand = 1.6666666667
Cross-price elasticity of demand = 1.667
Therefore, the cross-price elasticity of demand of State Farm Auto Policies is 1.667.
Swifty Corporation records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,700, Service Revenue $9,400, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assuming: (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) $800 of supplies on hand and (b)$3,200 of service revenue should be reported as unearned
Answer:
Apr. 30
Dr Supplies Expense $1,900
Cr Supplies $1,900
Dr Unearned Service Revenue 3200
Cr Service Revenue 3200
Explanation:
Preparation of the adjusting entries at April 30
Based on the information given the adjusting entries at April 30 will be :
Apr. 30
Dr Supplies Expense $1,900
Cr Supplies $1,900
($2,700-$800)
(Being to record supplies on hand)
Dr Unearned Service Revenue 3200
Cr Service Revenue3200
(Being to record Unearned Service Revenue)
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $664,000 of manufacturing overhead cost, 41,500 of direct labor hours, and $830,000 of direct labor cost during the year (the cost of direct labor is $20 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 301. The job used 155 direct labor hours and required $12,700 of direct materials. The City of Westlake has contracted to purchase the playground equipment at a price of 20% over manufacturing cost.
Required SHOW WORK
1. Calculate the manufacturing cost of Job 301. (hint: remember you have to consider each product cost: direct materials, direct labor and manufacturing overhead)
2. How much will the City of Westlake pay for this playground equipment?
Answer and Explanation:
The computation is shown below:
1 Calculation of predetermined overhead rate is
Predetermined overhead rate= Estimated Overhead Cost ÷ Direct labor hours
= $664,000 ÷ 41,500
= $16 per direct labor hour.
Now
Calculation of Total Job Cost:-
Direct Materials $12,700
Direct Labor $3,100
(155 direct labor hours × $20 per hour)
Manufacturing Overhead $2,480
(155 direct labor hours × $16 per hour)
Total Job Cost $18,280
2- Calculation of contracted billing price:-
Total manufacturing cost of Job 301 $18,280
Add: Markup on manufacturing cost 20% of $18,280 $3,656
Billing price $21,936
Brad Carlton operates Carlton Collectibles, a rare-coin shop in Washington, D.C., that ships coins to collectors in all 50 states. Carlton also provides appraisal services upon request. During the last several years, the appraisal work has been done either in the D.C. shop or at the homes of private collectors in Maryland and Virginia. Determine the jurisdictions in which Carlton Collectibles has sales and use tax nexus.
Answer: He would have sales based on his appraisal and would use tax collection based on he has commercial domicile there
Explanation:
Carlton would have sales based on the appraisal his work receives in Virginia and Maryland. Appraisals go a long way to promote sales in business especially comes from clients who tend to give feedback based on the product they have used. He would use tax collection in the district of Columbia due to he has a commercial domicile in that area.
For each of the following transactions, indicate whether it represents an increase in the U.S. gross domestic product (GDP), and, if so, state whether it represents U.S. consumption, investment, government purchases of goods or services, or net exports. If the transaction does not change U.S. GDP explain why not?
a. Ms. Scott buys a used Honda Accordfrom her friend Danielle for $7,500.
b. You spent $12,500 on college tuition this year.
c. Pizza Hut buys 100 pounds of cheese from Wisconsin to make pizzas.
d. Mr. Luong is a Chinese citizen who works as a Chemistry teaching assistant at UC Mercedandearns $16,000 a year in salary.
e. A candy store buys $500 worth of chocolates made in Belgium.
f. Boeing produces 5 airplanes but are unable to sell them.
Answer:
a. No change in GDP.
There will be no change in GDP resulting from this transaction. Resales are considered double counting because the good had already been paid for before and so will inflate GDP.
b. GDP increase by $12,500. U.S. Consumption.
This is a consumption transaction as money is being spent to satisfy the need for education. It will therefore increase GDP by $12,500.
c. No change in GDP.
Intermediate goods to be used in production are not included in GDP to avoid double counting. Only the final value of goods and services are included. This is an intermediate good and so will not be included.
d. Increase in GDP $16,000. Government purchase of goods or services.
Mr. Luong works in a Public University which means that his salary is paid for by the government. This will increase GDP by $16,000 as it represents money spent by Government.
e. Decrease in GDP $500. Net Exports.
As this good was bought from outside the country, it is an import. Imports reduce a country's GDP because they reduce the Net exports. GDP will therefore reduce by $500.
f. Increase in GDP by plane value. Investment.
So long as the goods have already been produced in their final form, they will be part of GDP. They will increase GDP by their value and are a part of Investment.