Answer:
Cost of goods sold = $105,060
Explanation:
a) Data and Calculations:
Cost of goods sold section of the multi-step income statement:
Merchandise Inventory, January 1, 20-- $37,000
Purchases 102,000
Purchases Returns and Allowances (4,200)
Purchases Discounts (2,040)
Freight-In 800
Merchandise Inventory, December 31, 20--(28,500)
Cost of goods sold $105,060
b) The cost of goods sold comprises the beginning inventory, purchases and freight-in costs incurred during the period, less purchases returns and discounts, and the ending inventory. It represents the cost incurred directly for the goods sold. This means that indirect costs are not included in the cost of goods sold. Such costs are usually deducted as period costs before arriving at the net income.
Gutierrez Company reported net income of $196,100 for 2020. Gutierrez also reported depreciation expense of $47,400 and a loss of $5,600 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $10,900 for the year, a $12,900 increase in accounts payable, and a $3,200 decrease in prepaid expenses.
Required:
Prepare the operating activities section of the statement of cash flows for 2020.
Answer:
$276,100
Explanation:
Preparation of the operating activities section of the statement of cash flows for 2020
GUTIERREZ COMPANY Statement of Cash FlowsFor Year Ended December 31, 2020
Cash flows – operating activities
Net income $196,100
Add Reconciling adjustments to net income to netcash provided by activities:
Depreciation expense$47,400
Loss on Disposal of plant assets $5,600
Increase in Accounts payable $12,900
Decrease in Accounts receivable $10,900
Decrease in Prepaid expenses $3,200
Net cash – operating activities $276,100
Therefore the operating activities section of the statement of cash flows for 2020 will be $276,100
Simon Company’s year-end balance sheets follow.
At December 31 2015 2014 2013
Assets
Cash $ 31,800 $ 35,625 $ 37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $ 523,000 $ 445,000 $ 377,500
Liabilities and Equity
Accounts payable $129,900 $ 75,250 $ 51,250
Long-term notes payable secured by
mortgages on plant assets 98,500 101,500 83,500
Common stock, $10 par value163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity$ 523,000 445,000 $ 377,500
The company’s income statements for the years ended December 31, 2015 and 2014, follow. Assume that all sales are on credit:
For Year Ended December 31 2015 2014
Sales $673,500 $532,000
Cost of goods sold $ 411,225 345,500
Other operating expenses 209,550 134,980
Interest expense 12,100 13,300
Income taxes 9,525 8,845
Total costs and expenses 642,400 502,625
Net income $ 31,100 $29,375
Earnings per share 1.90 $ 1.80
(1) Compute accounts receivable turnover.
(2) Compute inventory turnover.
(3) Compute days' sales in inventory.
Answer and Explanation:
The computations are given below:
As we know that
(1) The Account receivable turnover ratio is
= Net sales ÷ average account receivable
So
For 2015, it is
= $673,500 ÷ ($89,500 + $62,500) ÷ 2
= 8.86 times
For 2014, it is
= $532,000 ÷ ($62,500+$50,200) ÷ 2
= 9.44 times
(2) The inventory turnover ratio is
= Cost of goods sold ÷ average inventory
For 2015
= $411,225 ÷ ($112,500 + $82,500) ÷ 2
= 4.22 times
For 2014
= $345,500 ÷ ($82,500 + $54,000) ÷
= 5.06 times
(3) The days sales in inventory is
= Ending inventory ÷ cost of goods sold × 365
For 2015, it is
= $112,500 ÷ $411,225 × 365
= 99.85 days
For 2014, it is
= $82,500 ÷ $345,500 × 365
= 87.16 days
Alton Company uses a process-costing system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 75% complete. The firm's ending work-in-process inventory consists of 6,000 units that are 80% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?
a. A, 4,800; B, 0.
b. A, 4,800; B, 4,800.
c. A, 6,000; B, 0.
d. A, 6,000; B, 4,800.
e. A, 6,000; B, 6,000.
Answer:
e. A, 6,000; B, 6,000.
Explanation:
At the beginning of the process Materials A are added. Therefore it won't matter if the process is 80% or less/more is complete, the materials A have already been added and would be equivalent to the ending work-in-process inventory i.e. 6,000 units.
Materials B are added when the units are 75% complete. Since the ending work-in-process are 80% complete, then this means that the Materials B equivalent to 6,000 units have already been added to the ending inventory.
Hence, both materials A and B have been added to the ending work-in-process inventory for 6,000 units. Therefore, option E is correct.
The answer that correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory is: E) A, 6,000; B, 6,000.
Equivalent units of production
Materials A
Ending work-in-process inventory=6,000 units x 100%
Ending work-in-process inventory=6,000
Materials B
Ending work-in-process inventory=6,000 units x 100%
Ending work-in-process inventory=6,000
Inconclusion the answer that correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory is: E) A, 6,000; B, 6,000.
Learn more here:https://brainly.com/question/21852333
a rightward shift of an entire demand curve could be the result of an increase in
Jackson is preparing for his hearing before the Federal Communications Commission (FCC) involving a complaint that was filed against him by the FCC regarding the interruption of radio frequency. The order to "cease and desist" using the radio frequency has had a detrimental impact on his business.
Can Jackson request that the matter be settled, even if a hearing date has been scheduled?
Yes, Jackson can still request that the matter be settled outside of the adjudication process.
No, once the matter has been scheduled for a hearing, the matter cannot be settled.
Answer:
Yes, Jackson can still request that the matter be settled outside of the adjudication process.
Explanation:
If the Federal Communications Commission (FCC) agrees with Jackson that the legal matter be settled outside of the adjudication process, then Jackson can have his way. Adjudication refers to the final judgment or pronouncement in a case. This final judgment usually determines the course of action that the FCC can take regarding the interruption of radio frequency by Jackson. But if it seems that Jackson's request for the out-of-court settlement is just an abuse of process, aimed at occasioning some delay, then it behooves the FCC to disagree with his request and proceed with the adjudication process. Each matter should be based on its merits and the facts of the case.
Corporation made sales of million during . Of this amount, collected cash for million. The company's cost of goods sold was million, and all other expenses for the year totaled million. Also during , paid million for its inventory and million for everything else. Beginning cash was million.
Carter's top management is interviewing you for a job and they ask two questions:
Required:
a. How much was Carter's net income for 2016?
b. How much was Carter's cash balance at the end of 2016?
Answer:
A. $405 million
B. $332 million
Explanation:
A. Calculation for How much was Carter's net income for 2016
Using this formula
2016 Net income=Sales revenue - Cost of goods sold - Other expenses
Let plug in the formula
2016 Net income= $900 million - $270 million - $225 million
2016 Net income = $405 million
Therefore How much was Carter's net income for 2016 is $405 million
B. Calculation for How much was Carter's cash balance at the end of 2016
Using this formula
2016 Ending cash balance =Beginning balance + Cash receipts - Payments
Let plug in the formula
2016 Ending cash balance=$ 110 millon + $872 million- $375million - $275million
2016 Ending cash balance= $332million
How much was Carter's cash balance at the end of 2016 is $332million
Jostens Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% bonds outstanding during 2017. The preferred stock is convertible into 20,000 shares of common stock. During 2017, Jostens paid endives of $1.20 per share on its common stock and $3.00 per share on its preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for the year ended December 31,2017 was $80,000. Assume the income tax rate was 30%. Diluted earnings per share of 2017 (rounded to the nearest penny) are: Select one:
a. $3.64
b. $3.72
c. $3.36
d. $3.48
e. $3.22
Answer:
$3.46 per share
Explanation:
The computation of the diluted earning per share is shown below:
But before that the earning per share is
= ($800,000 - (20,000 shares × 3)) ÷ (200,000 shares)
= $3.70 per share
The diluted earning per share is
= ($800,000 - $60,000 + $60,000+ (1,000,000 × 10% ) × (1- 0.30)) ÷ (250,000 shares)
= $865,000 ÷ 250,000 shares
= $3.46 per share
This is the answer but the same is not provided in the given options
It is important to organize your time when taking a college course, True False
Answer:
imma say true
Explanation:
On the basis of the following data, what is the estimated cost of the inventory on May 31 using the retail method?
Cost Retail
May 1 Inventory $125,000 $166,667
May 1-31 Purchases $235,000 313,333
May 1-31 Sales 230,000
a. $250,000
b. $187,500
c. $172,500
d. $360,000
Answer:
b. $187,500
Explanation:
Using the retail method, we calculate the estimated cost of inventory on the 31st of May.
Calculation of retail value of the ending inventory Amount ($)
Retail price/value of the beginning inventory on May 1 (A) 166,667
Retail price/value of the goods purchased during May (B) 313,333
Retail price/value of the goods available for sale (C) 480,000
(C) = (A) + (B)
Total sales during May (D) 230,000
Retail value of ending inventory (E) 250,000
(E) = (C) - (D)
Now calculating the ratio of cost to the price ratio :
[tex]$\text{Cost to reatil price ratio} = \frac{\text{cost}}{\text{retail price}}$[/tex]
[tex]$=\frac{(F+G)}{(H+I)}$[/tex]
Here, F = cost of beginning inventory = $125,000
G = cost of inventory purchased = $235,000
H = retail value of beginning inventory = $166,667
I = retail value of goods purchased during the period = $313,333
The cost to retain ratio [tex]$=\frac{(F+G)}{(H+I)}$[/tex]
[tex]$=\frac{(125,000+235,000)}{(166,667+313,333)}$[/tex]
[tex]$=0.75$[/tex]
Now the estimated cost of the inventory on May 31st = cost to retail price ratio x retail value of ending inventory
= 0.75 x 250,000
= $ 187,500
Which of the following account options earns the lowest interest?
O Savings
O Certificate of deposit
O Roth IRA
O Money market
Out of the choices provided above, it can be concluded that a savings deposit account is the one that earns the lowest amount of interest. Therefore, the option A holds true.
What is the significance of a savings account?A savings account, or a bank deposit account, can be referred to or considered as such an account in which a person will be able to deposit any sum of monies, and earn a fixed and predetermined rate of interest over such deposit.
Usually, savings account is used for the purpose of safekeeping of money, and is not used for the purpose of investment. As a result, the amount of interest offered by the banks in a savings account deposit is the lowest among all money instruments.
Therefore, the option A holds true and states regarding the significance of a savings account.
Learn more about a savings account here:
https://brainly.com/question/3811440
#SPJ2
On April 1st, an automobile manufacturer had no beginning inventories and, it purchased 8,400 batteries at a cost $90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used to replace batteries in cars being used by the company's traveling sales staff. The remaining batteries withdrawn from the storeroom were installed in cars being manufactured by the company. Of the cars in production during April, 80 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 20 percent were unsold at April 30th. How much of the total battery cost would be recorded as Selling Expense for the month of April
Answer:
The total battery cost recorded as Selling Expense = $4,500 ($90 * 50 batteries)
Explanation:
a) Data and Calculations:
Work-in-process Inventory
Units Unit Cost Total
Purchase of batteries = 8,400 $90 $756,000
Used batteries:
Selling staff (50) $90 4,500
Production (7,750) $90 697,500
Ending inventory 600 $90 54,000
Finished goods inventory:
Production (7,750) $90 697,500
Finished goods (80%) 6,200 $90 558,000
Cost of goods sold and ending inventory of finished goods:
Cost of batteries sold 4,960 $90 $446,400
Ending inventory 1,240 $90 $111,600
b) The cost of batteries recorded as Selling Expense is the cost for the 50 batteries used by the company's traveling sales staff. It is determined by multiplying 50 by $90, the unit cost of each battery.
The demand for toys produced by the Miki Manufacturing Company has been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop simple linear regression forecast and answer the following questions.
Simple Linear Regression Forecast
Period Actual Demand Forecast Formulas
1 1,600 #N/A
2 2,000 #N/A
3 1,800 #N/A
4 1,200 #N/A
5 2,300 #N/A
6 3,600 #N/A
7 3,300 #N/A
8 3,200 #N/A
9 4,000 #N/A
10 4,900 #N/A
11 4,500 #N/A
12 4,400 #N/A
13 #N/A
Intercept #N/A
Slope #N/A
1. What is the trend line? Round your answers to two decimal places. Do not round intermediate calculations.
2. Calculate the linear trend forecast for the periods from 1 to 13. Round your answers to the nearest whole number. Use unrounded intercept and slope values.
Period Forecast
1
2
3
4
5
6
7
8
9
10
11
12
13
Answer:
attached below is the required solution
Explanation:
1) Determine the trend line
The trendline ( Y ) = 319.58x + 989.39 ( attached below is a graph showing the trendline )
2) attached below is the table showing the calculation of Linear trend forecast
Scenario II:
Mrs. Ghas T. Dur. Was hooked by so many nice freebies in Avon. She ordered new things including gadget for
her two adolescent children who are in grade 8 and the other in grade 12.
Last December her husband gave her all the money he received from the company he is working.
With the holiday season she spends for gifts and foods for special occasion, what she left by January was
5,000.00. She still owes Avon amounting to 4,500.00 which is due by 15th this month. Her two children were
asking to pay for tuition fees that has a balance of 4,500.00 and so they can take the exam. If you were in the
position of Mrs. Ghas what will you do then, which will you pay first and how much. Where will you get an extra
amount to pay your dues? Justify your answer.
Answer:
Pay tuition first
Explanation:
Mrs. Das should pay the tuition fee of her children first from the $5000 balance with her, this is to enable the children take their exams without any distraction. Failure to pay their tuition may also mean that the children will spend an additional year in some cases. Therefore to avoid inflicting psychological distress on the children, paying the children's tuition will be made priority.
Also, settling Avon before the due date is important too and if I were in her shoes may decide to return or sell some of the goods purchased from her because it could be seen that Mrs. Das was carried away by Avon's stock and purchased more than those things which they needed most importantly.
Differentiate an ordinary manager and a business entrepreneur?
Answer:
A manager is an employee hired to oversee daily administration of the business. while the entrepreneur owns the business
Answer:
An ordinary manager is a leader in a company that does not belong to him/her while an entreprenur is the owner of his/her company.
An ordinary manager is not a risk-taker as they maintain the status quo of the company while an enterpreur is a risk-taker who bears all the risk.
PLS HELP!! from least expensive to most.
Answer:
lowest budget
most expensive first class
Explanation:
there self explanatory
have a good rest of your day
Question 5 of 10
What role does Congress play in developing the federal budget?
A. Congress sends requests to the president for federal spending
priorities.
B. Congress sends different plans to state governments for their
approval.
C. Congress determines which federal spending programs will be
mandatory.
O D. Congress considers the president's budget proposal and votes on
a finalized budget.
Answer: D
Explanation:
The role that the congress play in developing the federal budget is that the Congress considers the president's budget proposal and votes on a finalized budget.
What is federal budget?The federal budget is a numbered plan for the United States' annual public expenditures.
It is used to pay for a variety of federal expenses, including distributing agricultural subsidies, paying federal personnel, and purchasing military equipment.
The duty of Congress in the development of the federal budget is to evaluate the president's budget proposal and vote on a finalized budget.
Therefore, option D is correct.
Learn more about the federal budget, refer to:
https://brainly.com/question/4514203
#SPJ2
All of the following are true of the Human Development Index except:
A. The United States loses points on the HDI because it's education level and literacy rate are lower than countries like Norway and Canada.
B. Most countries that score very high on the scale are located in North America and Europe.
C. Ecology and the environment are strongly considered in the HDI calculations.
D. The HDI measures factors such as life expectancy, literacy, education level, and standard of living.
E. Many low HDI countries are located in sub-Saharan Africa.
Answer:
C. Ecology and the environment are strongly considered in the HDI calculations.
Explanation:
Human Development Index can be defined as a statistical tool used for summarily measuring human achievements, life expetancy, etc
All of the following are true of the Human Development Index (HDI);
I. The United States loses points on the HDI because it's education level and literacy rate are lower than countries like Norway and Canada.
II. Most countries that score very high on the scale are located in North America and Europe.
III. The HDI measures factors such as life expectancy, literacy, education level, and standard of living.
IV. Many low HDI countries are located in sub-Saharan Africa.
A firm reports net income of $456,325.00 for 2013. The firm has a dividend payout ratio of 20.00%. The firm currently has $994,000.00 in debt, and $1,628,000.00 in shareholder equity. The firm pays 6.00% annual interest on their outstanding debt. The firm wants to maintain its debt to equity ratio. Based on the interest rate on debt, how much more interest will the firm pay in 2014
Answer:
$433,550.00
Explanation:
let me know if I'm wrong
transporting goods by shipping is a low-cost mode of transportation that can carry a wide variety of goods but is very slow. Which of the following would be the best situation to transport the goods by ship.
A. a batch of t-shirts going from a producer in China to a retailer in California who needs to stock the merchandise on shelves next week.
B. a batch of t-shirts going from a producer in China to a retailer in California who won't be stocking the merchandise on shelves for another 2 months.
C. a batch of t-shirts going from a producer in Montana to a retailer in millions who won't be stocking the merchandise on shelves for another two months.
D. a t-shirt going from a retailer in California to a consumer in texas who wants overnight delivery.
Answer:
A
Explanation:
The transporting of the goods and services by the shipping is a low cost by ship as T-shirts going from china to a retailer in California would stock them on shelves for next week. Thus option A is correct.
What is shipping?Shipping is a freight transportation and involves the process of transporting commodities and including the merchandised goods and cargo.
The shipment usually refers to the transport by sea. Now it extends to land and air as well. Shippmnet made by rail includes 2% of the total type of transpration. The D2D refers to the door-to-door shipping that is domestic shipping of cargo.
Find out more information about the shipping.
brainly.com/question/15145472
. 21 Century Skills You will employ online tools for research
Directions
Read the instructions for this self.checked activity Type in your response to each question, and check your armer
a brief evaluation of your work
Activity
Conduct an online research on any consumer services industry to determine the competitive nature of the indu
global. Also analyze the role of the economic system that the industry operates in and the local and internationa
industry. Write an essay of about 500 words on your findings,
B
1
U
X
Font Sizes
A
Answer:
(Answer may vary but should include some of these points.)
Mi familia es muy unida. Nos juntamos los fines de semana a almorzar en la casa de mi abuela. Mi abuela nos quiere mucho y nos prepara postres muy ricos. Mis padres son muy independientes. Mi madre trabaja y mi padre también. Mi hermano estudia en la universidad y tiene una novia desde hace cinco años. Se quieren casar en noviembre. Mis abuelos están muy felices porque quieren ver crecer a los hijos de sus nietos. Me gusta mi familia porque somos todos muy unidos.
Explanation:
Andy Roddick is the new owner of Ace Computer Services. At the end of August 2020, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.
1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1.
2. At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $600.
3. On August 1, Roddick borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.
4. A telephone bill in the amount of $117 covering August charges is unpaid at August 31.
Instructions:
Prepare the adjusting journal entries as of August 31, 2020, suggested by the information above.
Answer:
1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1.
Dr Wages expense 1,900
Cr Wages payable 1,900
2. At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $600.
No journal entry necessary, you cannot make records based on approximate expenses. You should make the adjusting entry after the bill is received, not before.
3. On August 1, Roddick borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.
Dr Interest expense 200
Cr Interest payable 200
4. A telephone bill in the amount of $117 covering August charges is unpaid at August 31.
Dr Telephone expense 117
Cr Telephone payable 117
Accounts receivable arising from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is:
A. $118,000.
B. $110,000.
C. $102,000.
D. $150,000.
Credit memos from the bank
decrease a bank customer's account
are used to show a bank service charge
show that a company has deposited a customer's NSF check
show the bank has collected a note receivable for the customer
Answer: $118,000 ;
show the bank has collected a note receivable for the customer
Explanation:
Based on the information given in the question, we can see that there is a reduction in the accounts receivables which will be:
= $40,000 - $32,000
= $8,000
This will then be added to the bet income in order to get the value for the cash flows from operating activities which will be:
= $110,000 + $8,000
= $118,000
Credit memo shows the payment or interest for a particular thing. This can be used to show that a particular bank has received a note, also can be used to show that an interest has been earned on the deposit made. Therefore, the correct option is "show the bank has collected a note receivable for the customer"
Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Paulson's transactions during July 2016
July 5 Received material costing $1,000 from a supplier. The material was purchased on account.
9 Requisitioned $3,000 of material for use in the factory, consisting of $2,500 of direct material and $500 of indirect material.
11 Recorded the factory payroll: $6,750 of direct labor and $750 of indirect labor.
17 Incurred various overhead costs totaling $7,000. (Credit Accounts Payable.)
20 Applied $10,000 of manufacturing overhead to the products being manufactured.
23 Completed product costing $8,000 and moved it to the warehouse.
26 Sold goods with a product cost of $1,500 on account for $2,500.
Required:
Record the transactions listed above in general journal form
Answer:
Paulson Manufacturing Company
General Journal
Date Accounts Titles Debit Credit
July 5 Raw materials inventory $1,000
Accounts payable $1,000
To record the purchase of materials on account.
July 9 Work-in-Process $2,500
Manufacturing overhead 500
Raw materials inventory $3,000
To record the requisitioning of materials.
July 11 Work-in-Process $6,750
Manufacturing overhead 750
Factory Wages $7,500
To record the factory payroll.
July 17 Manufacturing overhead $7,000
Accounts payable $7,000
To record various overhead costs incurred on account.
July 20 Work-in-Process $10,000
Manufacturing overhead $10,000
To record the application of overhead to products.
July 23 Finished Goods $8,000
Work-in-Process $8,000
To record the completion of production.
July 26 Cost of goods sold $1,500
Finished Goods $1,500
To record the cost of goods sold.
July 26 Accounts Receivable $2,500
Sales Revenue $2,500
To record the sale of goods on account
Explanation:
The general journal is a multi-purpose journal. It is used to record business transactions as they occur daily. It is the first record kept of business transactions. It shows the accounts to be debited and the others to be credited.
A stadium sold 4000 tickets at 75$/ticket, 5350 tickets at 62$/ticket and, 7542 tickets at 49$/ticket. What was the total ticket sales revenue?
Answer:
4000x70=280000
5350x62=331700
7542x49=369558
add that all up to get $981258
Hope this helps!
Indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. There are many teenagers who would like to work at fast-food restaurants, but they are not hired due to minimum-wage laws.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
c. The government has instituted a legal minimum price of $5 each for hamburgers.
Answer:
For this question assume that the equilibrium price for hamburgers is $7.
A Price ceiling on a good means that no price higher than the one mandated should be charged. Binding price ceiling means that the price ceiling is lower than the equilibrium price.
A Price floor means that no price should be charged that is lower than the mandated price. Binding price floor means that the price floor is higher than the equilibrium price.
a. Binding Price Floor
Minimum wage laws are price floors because they represent a minimum price that can be charged for labor. One cannot go below this price thereby making it a price floor. It is a binding price floor because it is higher than the Equilibrium price for labor. This is why people are not hiring the teenagers.
b. Binding Price Ceiling
The government has given a maximum price that can be charged for hamburgers. This makes it a price ceiling. It is binding because it is lower than the equilibrium price of $7..
c. Non-binding Price Floor
This is a minimum price which means that it is a price floor. It is non-binding because this price floor is lower than the equilibrium price of $7.
Patricia decides to buy a pair of boots for $85.00. She was willing to pay $110.00. When her friend Cecilia sees the boots, she loves them and thinks they are worth $170.00. So she offers Patricia $135.00 for the boots, and Patricia accepts. Patricia and Cecilia are both thrilled with the exchange.
The total surplus received by both Patricia and Cecilia is $ _________
Answer:
$60
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Consumer surplus received by Patricia = $110 - $85 = $25
Consumer surplus received by Cecilia = $170 - $135 = $35
Sum of the surpluses = $25 + $35 = $60
Statement of stockholders’ equity
The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow:
Fees earned $900,000
Office expense 300,000
Miscellaneous expense 15,000
Wages expense 450,000
Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 20Y5.
Prepare a statement of stockholders’ equity for the year ended May 31, 20Y6.
Paradise Travel Service
Statement of Stockholders’ Equity
For the Year Ended May 31, 20Y6
Common Stock Retained Earnings Total
Balances, June 1, 20Y5 $fill in the blank 2$fill in the blank 3$fill in the blank 4
Issued common stock fill in the blank 6 fill in the blank 7 0 fill in the blank 8
Net income fill in the blank 10 0 fill in the blank 11 fill in the blank 12
Dividends fill in the blank 14 0 fill in the blank 15 fill in the blank 16
Balances, May 31, 20Y6 $fill in the blank 18 100,000 $fill in the blank 19 $fill in the blank 20
Answer:
Paradise Travel Service
Statement of Stockholders' Equity:
Common Stock, June 1, 20Y5 $60,000
Issued Common stock 40,000
Retained earnings $425,000
Total equity $525,000
Explanation:
a) Data and Calculations:
Income Statement:
Fees earned $900,000
Office expense 300,000
Miscellaneous expense 15,000
Wages expense 450,000 765,000
Net income $135,000
Retained Earnings Statement:
Retained earnings, June 1, 20Y5 $300,000
Net income 135,000
Dividends (10,000)
Retained earnings, May 31, 20Y6 $425,000
how does coved-19 effect in how mangers make decisions?
Answer:
1. not all people want to wear a mask when they walk into their store
2. a lot of their workers probaly quit or have corona, this would make it harder to make decisions with not a lot people to work!
Explanation:
Why does a company's budget need to be closely linked to the needs of good strategy execution? Provide at least two examples of companies that have used strategic priorities to drive how capital allocations are made.
Explanation:
A company's budget need to be closely linked to the needs of good strategy execution as the company
might utilize the budget as per the strategy to expand, gain capital from divesting to utilize in new initiatives.
The key here is to gain access to capital from different sources in order to utilize them in other present or future investments that will provide the best return. So, it is strategically very relevant to prioritize the budget earnings and spend as per the company strategy.
Norton, Inc. has the following information available for September 2020.
Unit selling price of video game consoles $400
Unit variable costs $280
Total fixed costs $48,000
Units sold 500
a. Prepare a CVP income statement that shows both total and per unit amounts.
b. Compute Norton's breakeven in units.
c. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer: See explanation
Explanation:
a. Prepare a CVP income statement that shows both total and per unit amounts.
CVP INCOME STATEMENT
Per unit. Total
Sales (500 units). 400. 200,000
Variable expense 280 140,000
Contribution margin. 120 60,000
Fixed expense. 48,000
Net operating Income. 12,000
b. Compute Norton's breakeven in units.
Breakeven point = 48000 / 120 = 400
c. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
CVP income statement for the break-even point
Per unit. Total
Sales (400 units). 400. 160,000
Variable expense 280 112,000
Contribution margin. 120 48000
Fixed expense. 48,000
Net operating Income. 0
