Consider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of bagels in the market, respectively. If the change given in each problem is the only change that happened (all other things are held constant), what will be the effect on the equilibrium price and quantity of bagels? Please draw a graph to explain.
A) The price of cream cheese, complementary goods to bagels, increases.
B) The price of croissants, substitute goods to bagels, decrease
C) The economy experiences an overall decrease in income (Suppose that bagel is an inferior good).
Answers
Answer:
please refer to attachment for more explanation
Explanation:
a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.
b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.
c. Lower income of the consumer would make the demand for the inferior good bagel to rise. Demand curve will shift upwards and price and quantity will rise.
Related Questions
The objective of maximizing value for the shareholders provides an important theme in corporate finance. This objective is not without criticism. Which of the following is NOT a criticism. Select one: a. The objective is blind to social and ethical costs associated with value maximization. b. The objective does not well account for the fact that managers are naturally inclined to act in their own best interests, which are not always in line with that shareholders. c. It assumes that accrual based profits are superior to cash flows. d. It assumes some level of market efficiency.
Answers
Answer:
D
Explanation:
Agency conflicts arises when the objectives of managers isn't aligned with that of shareholders.
Due to the objective of maximising value for shareholders, managers might be induced to engage in aggressive accounting practices in order to present a higher profits than might actually exist. This practice is unethical. This places more emphasis on profits than cash flows.
Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $3 million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project A: Cost of capital = 18%; IRR = 21% Project B: Cost of capital = 14%; IRR = 11% Project C: Cost of capital = 7%; IRR = 10% Harris intends to maintain its 35% debt and 65% common equity capital structure, and its net income is expected to be $6,288,000. If Harris maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be? Round your answer to two decimal places. %
Answers
Answer:
Dividend payout ratio = 37.98%
Explanation:
Residual dividend policy means where a company uses residual equity to fund dividend payments.
We will accept Project A & C because Project B has lesser IRR than its Cost of Capital
Total investment = $3,000,000 * 2
Total investment = $6,000,000
Dividends = Earnings - Investment
Dividends = $6,288,000 - 65%*($6,000,000)
Dividends = $6,288,000 - 0.65($6,000,000)
Dividends = $6,288,000 - $3,900,000
Dividends = $2,388,000
Dividend payout ratio = Dividend / Total earnings
Dividend payout ratio = $2,388,000 / $6,288,000
Dividend payout ratio = 0.379771
Dividend payout ratio = 37.98%
All of the following expenses paid or incurred in the course of operating a business are deductible as business expenses except:________.
a. Political contributions.
b. Costs incurred by a public utility company in connection with an appearance at a public utility commission rate making hearing.
c. Reimbursements to job applicants in connection with interviews.
d. Penalty for nonperformance of a contract.
Answers
Answer: Political contributions
Explanation:
The expenses which are vital in running a business are deductible and examples of these are utility costs, legal services, salaries, office rent, equipment and supplies, utility costs, professional dues, etc.
Of the options given in the question, political contribution are not paid or incurred while running a business. Under Section 162(e), the political contributions are not deductible.
The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $570,000 on November 1, 2016. The bonds sold for $513,591, a price to yield the market rate of 8%. The bonds mature October 31, 2036 (20 years). Interest is paid semiannually on April 30 and October 31.Required:1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?Interest Expense $6,8482. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?Bonds Payable $513,789Interest Payable 3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017?Interest Expense 4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?Bonds Payable Interest Payable
Answers
Answer:
1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?
Interest expense 6,847.882. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?
carrying value of bonds payable = $513,591 + $197.88 = $513,788.88
interest payable $6,650
3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017?
total interest expense = $13,701.04 + $20,567.60 + $6,864.10 = $41,132.74
4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?
carrying value of bonds payable = $515,021.62
interest payable $6,650
Explanation:
the journal entry to record the purchase:
November 1, 2016, bonds issued at a discount
Dr Cash 513,591
Dr Discount on bonds payable 56,409
Cr Bonds payable 570,000
journal entry to record accrued interests:
December 31, 2016
Dr Interest expense 6,847.88
Cr Interest payable 6,650
Cr Discount on bonds payable 197.88
bond discount amortization (December 31, 2016) = (513,591 x 8% x 2/12) - (570,000 x 7% x 2/12) = 6,847.88 - 6,650 = 197.88
journal entry to record first coupon payment:
April 30, 2017
Dr Interest expense 13,701.04
Dr Interest payable 6,650
Cr Cash 19,950
Cr Discount on bonds payable 401.04
bond discount amortization (December 31, 2016) = ($513,788.88 x 8% x 4/12) - (570,000 x 7% x 4/12) = 13,701.04 - 13,300 = 401.04
journal entry to record second coupon payment:
October 31, 2017
Dr Interest expense 20,567.60
Cr Cash 19,950
Cr Discount on bonds payable 617.60
bond discount amortization (December 31, 2016) = ($514,189.92 x 4%) - (570,000 x 3.5%) = 20,567.60 - 19,950 = 617.60
journal entry to record accrued interests:
December 31, 2017
Dr Interest expense 6,864.10
Cr Interest payable 6,650
Cr Discount on bonds payable 214.10
bond discount amortization (December 31, 2016) = (514,807.52 x 8% x 2/12) - (570,000 x 7% x 2/12) = 6,864.10 - 6,650 = 214.10
Simmons Consulting Co. has the following accounts in ts ledger Cash: Accounts Receivable Supplies: Office Equipment Accounts Payable, Michael Short, Capital; Michael Short, Drawing Fees Eamed, Rent Expense; Advertising Expense: Utilities Expense; Miscellaneous Expense.
Transactions
Oct 1 Paid rent for the month, $4,800.
3 Paid advertising expense, $2,500.
5 Paid cash for supplies, $1,390
6 Purchased office equipment on account, $10,670
10 Received cash from customers on account, $19,730
15 Paid creditors on account, 59,480
27 Paid cash for miscellaneous expenses, S530.
30 Paid telephone bill (utility expense) for the month. $220.
31 Fees earned and billed to customers for the month, 538,620
31 Paid electricity bill (utility expense) for the month, S1540
31 Withdrew cash for personal use, 56,700.
Journalize the above selected transactions for October 20Y3 in a two-column journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Answers
Answer:
Simmons Consulting Co
General Journal
Oct 1
Rent Expense $4,800 (debit)
Cash $4,800 (credit)
Paid Rent Expense
Oct 3
Advertising expense $2,500 (debit)
Cash $2,500 (credit)
Paid Advertising Expense
Oct 5
Supplies $1,390 (debit)
Cash $1,390 (credit)
Paid for Supplies
Oct 6
Office equipment $10,670 (debit)
Office Equipment Accounts Payable $10,670 (credit)
Bought Office equipment on credit
Oct 10
Accounts Receivable $19,730 (debit)
Cash $19,730 (credit)
Received payment from accounts
Oct 15
Cash $59,480 (debit)
Accounts Payable $59,480 (credit)
Made payment to Accounts Payable
Oct 27
Miscellaneous Expenses $530 (debit)
Cash $530 (credit)
Paid for Miscellaneous Expenses
Oct 30
Utilities expense $220 (debit)
Cash $220 (credit)
Paid for telephone bill
Oct 31
Cash $538,620 (debit)
Fees Earned $538,620 (credit)
Cash received for Fees Earned
Oct 31
Utilities expense $1,540 (debit)
Cash $1,540 (credit)
Paid for electricity bill
Oct 31
Drawings $56,700 (debit)
Cash $56,700(credit)
Cash drawings by owner
Explanation:
I have prepared the journals and their narrations, see the above.
Mr. Smith would like to run for a Senate seat in Massachusetts. He is 49 years old and has been a citizen of the United States all his life. He lives in New York and is registered to vote in that state. He owns a house in Massachusetts and visits there occasionally. His business is in Albany, New York. Can Mr. Smith run for the Massachusetts Senate seat? Why or why not?
Answers
Answer: No. Mr. Smith cannot run for the Massachusetts Senate seat
Explanation:
From the question, we are informed that Mr. Smith is 49 years old, a United States citizen and that he would like to run for a Senate seat in Massachusetts. He lives in New York and is registered to vote in that state.
It should be noted that Mr Smith isn't a resident of Massachusetts and therefore, he cannot run for Senator as he's not registered there but rather he registered in New York. Assuming he registered in New York, then he can be a senator there but he isn't registered there, therefore he can't.
Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units Beginning inventory of 3,300 units that are 100 percent complete for materials and 30 percent complete for conversion. 15,100 units started during the period. Ending inventory of 3,300 units that are 11 percent complete for conversion. Manufacturing Costs Beginning inventory was $20,100 ($10,500 materials and $9,600 conversion costs). Costs added during the month were $30,400 for materials and $48,500 for conversion ($27,100 labor and $21,400 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the costs to be assigned to the units transferred out and the units still in process.
Answers
Answer:
1. Calculate the number of equivalent units of production for materials and conversion for March.
EUP for materials:
units completed + ending WIP = 15,100 + 3,300 = 18,500
EUP for conversion costs:
units completed + ending WIP = 15,100 + (3,300 x 11%) = 15,136.3
2. Calculate the cost per equivalent unit for materials and conversion for March.
total cost of materials = $10,500 + $30,400 = $40,900
total conversion costs = $9,600 + $48,500 = $58,100
cost per EUP for materials = $40,900 / 18,500 = $2.2108 per EUP
cost per EUP for conversion costs = $58,100 / 15,136.3 = $3.8385 per EUP
3. Determine the costs to be assigned to the units transferred out and the units still in process.
cost of transferred out units = 15,100 x ($2.2108 + $3.8385) = $91,344.43
cost of WIP = ($40,900 + $58,100) - $91,344.43 = $7,655.57
How does a business owner confirm that their pricing strategy was successful?
a. It is a success if the business can avoid paying corporate income taxes.
b. It is a success if the customers don't complain about the price.
c. It is a success if the Price X Quantity = The Maximum Total Revenue
d. There is no true method to measure a successful pricing strategy.
Answers
Bratt's Bed and Breakfast, in a small historic New England town, must decide how to subdivide (remodel) the large old home that will become their inn. There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to four adults. Option B would modernize only the second floor; the results would be six suites, four for two to four adults, and two for two adults only. Option C (the status quo option) leaves all walls intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. Below are the details of profit and demand patterns that will accompany each option. Which option has the highest expected value?Annual profit under various demand patterns Capacity p Average pA (Modernize all) $90,000 .5 $25,000 .5B (Modernize 2nd) $80,000 .4 $70,000 .6C (Status Quo) $60,000 .3 $55,000 .7
Answers
Answer:
Option B (Modernize 2nd) has the highest expected value which $74,000.
Explanation:
Note: The data in the question are merged together. They are therefore sorted before anwering the question as follows:
Annual profit under various demand patterns
Capacity p Average p
A (Modernize all) $90,000 .5 $25,000 .5
B (Modernize 2nd) $80,000 .4 $70,000 .6
C (Status Quo) $60,000 .3 $55,000 .7
The explanation to the answer is now provided as follows:
The expected value is estimated as the addition of the multiplication of each possible outcomes by the probability of occurrence of each outcome.
The expected value for each of the options in the question can therefore be estimated using the following formula:
Expected value = (Capacity * p of Capacity) + (Average * p of Average)
This formula is therefore applied to each options as follows:
Option A expected value = ($90,000 * 0.5) + ($25,000 * 0.5) = $45,000 + $12,500 = $57,500
Option B expected value = ($80,000 * 0.4) + ($70,000 * 0.6) = $32,000 + $42,000 = $74,000
Option C expected value = ($60,000 * 0.3) + ($55,000 * 0.7) = $18,000 + $38,500 = $56,500
Based on the calculations above, Option B (Modernize 2nd) has the highest expected value which $74,000.
Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates: Machining Assembly Direct labor hours 16,000 12,000 Direct labor cost $ 20,000 $ 15,000 Machine-hours 5,000 1,000 Manufacturing overhead $ 25,000 $ 30,000 What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?
Answers
Answer
Machining Department Assembly department
POAR = $5 per machine hour 200% of direct labor cost
Explanation:
Under absorption costing, overheads are charged to products using pre-determined overhead absorption rate. With this rate, overhead are included in the cost of every unit produced.
The rated is computed follows:
Predetermined overhead absorption rate (POAR)
= Estimated overhead for the period/Estimated activity level
Machining Department
POAR =25,000/ 5,000 machine hours=$5 per machine hour
Assembly department
PIAR = $30,000/15,000× 100 = 200% of labor cost
A multiconcept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces costs of both real estate and labor. The multiconcept restaurants typically offer a limited menu compared to full-sized, stand-alone restaurants. For example, KMAC operates a combination Kentucky Fried Chicken (KFC)/Taco Bell restaurant. The food preparation areas are separate, but orders are taken at shared point-of-sale (POS) stations. If Taco Bell and KFC share facilities, they reduce fixed costs by 30 percent; however, sales in joint facilities are 20 percent lower than sales in two separate facilities. What do these numbers imply for the decision of when to open a shared facility versus two separate facilities
Answers
Answer: The Multiconcept restaurant is beneficial to both restaurant chains
Explanation:
If they share resources then they are saving 30% in fixed costs even though they are losing 20% in sales.
If the losses in sales are subtracted from the savings in fixed costs, it means that both Taco Bell and KFC are benefitting by 10%.
This shows that the decision to open a shared facility versus two separate facilities is beneficial to both restaurants on a net benefits basis as the savings in fixed costs from sharing facilities outweighs the losses in sales probably resulting from not offering a full menu.
Direct materials $ 69,000 Direct labor $ 35,000 Variable manufacturing overhead $ 15,000 Fixed manufacturing overhead 28,000 Total manufacturing overhead $ 43,000 Variable selling expense $ 12,000 Fixed selling expense 18,000 Total selling expense $ 30,000 Variable administrative expense $ 4,000 Fixed administrative expense 25,000 Total administrative expense $ 29,000 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost
Answers
Answer: $147,000
Explanation:
Based on the information given in the question, the total product cost is calculated below:
Total product cost will be:
Direct materials: 69,000
Add: direct labor: 35,000
Add: total manufacturing overhead: 43,000
Total product cost:
= 69000 + 35000 + 43000
= $147,000
What is the price elasticity of demand? How is it calculated? Question #2: The makers of academic books find that when they raise the price of the average book from $50 to $75, quantity demanded among students drops from 100 to 90. Among casual readers, quantity demanded drops from 80 to 40. a. Calculate the price elasticity of demand for each group. b. Is demand price elastic or price inelastic for each group? c. Using the determinants of demand, explain why there is a difference in elasticity for each group.
Answers
Answer:
a. Calculate the price elasticity of demand for each group.
PED for students = 0.2PED for casual readers = 1b. Is demand price elastic or price inelastic for each group?
PED for students = 0.2, price inelasticPED for casual readers = 1, unitary elastic demandc. Using the determinants of demand, explain why there is a difference in elasticity for each group.
Basically, students are required to buy academic books, so their preferences will be to buy them regardless of their price, that is why their PED is price inelastic. On the other hand, casual readers will compare the price of academic books to other books (competition) and have more options where to choose from, that is why their PED is higher.Explanation:
The price elasticity of demand shows us how a 1% change in price will affect the quantity demanded of a product.
PED = % change in Q demanded / % change in price
PED for students:
% change in Q demanded = (90 - 100) / 100 = -10% % change in price = (75 - 50) / 50 = 50%PED = -0.1 / 0.5 = -0.2 or |0.2| in absolute terms
PED for casual readers:
% change in Q demanded = (40 - 80) / 80 = -50% % change in price = (75 - 50) / 50 = 50%PED = -0.5 / 0.5 = -1 or |1| in absolute terms
Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is: Select one: a. $164,000 b. $62,000 c. $394,000 d. $184,000
Answers
Answer:
d. $184,000
Explanation:
Some information is missing, so I looked for similar questions:
Sales revenues, Consumer $ 680,000
Sales revenues, Commercial $ 280,000
Variable expenses, Consumer $ 394,000
Variable expenses, Commercial $ 143,000
Traceable fixed expenses, Consumer $ 102,000
Traceable fixed expenses, Commercial $ 45,000
Consumer Commercial Total
Revenue $680,000 $280,000 $960,000
Variable expenses ($394,000) ($143,000) ($537,000)
Contribution margin $286,000 $137,000 $423,000
Traceable fixed exp. ($102,000) ($45,000) ($147,000)
Segment margin $184,000 $92,000 $276,000
Common fixed exp. ($210,000)
Operating income $66,000
You wish to retire in 14 years, at which time you want to have accumulated enough money to receive an annual annuity of $17,000 for 19 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement you can earn 10 percent on your money. What annual contributions to the retirement fund will allow you to receive the $17,000 annuity? Use Appendix C and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
Answers
Answer:
Annual contribution = $5873.06
Explanation:
First we will find the present value at the time of retirement and then we will find the annual contribution during the years of working. Below is the calculation to find the present value
Present value at the time of retirement = Annuity (P/A, r, n)
Present value at the time of retirement = $17000 (P/A, 10%, 19)
Present value at the time of retirement = $17000 (8.365)
Present value at the time of retirement = $142205
Now find the annual contribution:
Annual contribution = Future value (A/F, r, n)
Annual contribution = 142205 (A/F, 8%, 14)
Annual contribution = 142205(0.0413)
Annual contribution = $5873.06
g In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $19,500 during August 2021. $5,000 of cards were redeemed in September 2021, $3,390 in October, $3,080 in November, and $2,380 in December 2021. In 2022 an additional $1,250 of cards were redeemed in January and $680 in February. How much gift card revenue associated with the August 2021 gift card sales would Lizzie get to recognize in 2021 and 2022?
Answers
Answer:
2021
Due to the Accrual principle in Accounting, the revenue for 2021 will be the gift cards that were earned (redeemed) in 2021.
= 5,000 + 3,390 + 3,080 + 2,380
= $13,850
2022
Any gift cards that have not been redeemed within 12 months are not likely to be redeemed so the remaining gift cards can be said to be redeemed in 2022 which would mean that the revenue in 2022 is;
= 19,500 - 13,850
= $5,650
FreshProduce is a family-owned grocery store that sells organic and locally grown food and fresh produce. There is only one check-out station with one cashier. It takes the cashier on average 5 minutes to check out a customer. The standard deviation of the check-out time is also 5 minutes. On average, there are 6 customers per hour. The standard deviation of the inter-arrival time is 10 minutes. What is the utilization of the process? Group of answer choices 25% 50% 75% 100%
Answers
Answer:
50%
Explanation:
The time taking to check a customer is 5 minutes, hence the processing time is 5 minutes.
There are 6 customers per hour that is 1 customer per 10 minutes, therefore the inter arrival time is 10 minutes.
The utilization is the ratio of the processing time to the arrival time, it is given by the formula:
Utilization = Processing time / inter arrival time
Utilization = 5 minutes / 10 minutes = 0.5
Utilization = 50%
In which country, China or India, would you expect to encounter the most bureaucracy? Why?
Answers
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance Beginning Balance
Cash $64,400 $76,900
Accounts receivable 53,200 57,200
Inventory 71,400 65,000
Total current assets 189,000 199,100
Property, plant, and equipment 192,000 182,000
Less accumulated depreciation 64,000 45,500
Net property, plant, and equipment 128,000 136,500
Total assets $317,000 $335,600
Accounts payable $41,600 $74,000
Income taxes payable 32,400 39,600
Bonds payable 78,000 65,000
Common stock 91,000 78,000
Retained earnings 74,000 79,000
Total liabilities and stockholders’ equitY$317,000 $335,600
During the year, Ravenna paid a $7,800 cash dividend and it sold a piece of equipment for $3,900 that had originally cost $8,400 and had accumulated depreciation of $5,600. The company did not retire any bonds or repurchase any of its own common stock during the year.
Required:
1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company’s statement of cash flows?
7-a. What is the combined amount and direction (+ or −) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows?
7-b. What does this amount represent?
Cash paid to suppliers > Cost of goods sold
Cash paid to suppliers > Purchases
Cash paid to suppliers < Cost of goods sold
8-a. If the company debited income tax expense and credited income taxes payable $940 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?
9-a. What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows?
9-b. What does this adjustment represent?
Tax paid < Income tax expenses
No taxes are payable
Tax paid > Income tax expenses
11. What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?
10. Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction ( + or − ) of the adjustment?
8-b. What does the amount of these debits represent?
Tax refunds
Cash paid for income taxes
Taxes payable
12.What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?
13.What is the company’s net cash provided by (used in) investing activities?
14.What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?
15.What is the company’s net cash provided by (used in) financing activities?
Answers
Answer:
1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company’s statement of cash flows?Answer: Net decrease:$12,500
7-a. What is the combined amount and direction (+ or −) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows?
Answer: $-38,800
7-b. What does this amount represent?
Cash paid to suppliers > Cost of goods sold
Cash paid to suppliers > Purchases
Cash paid to suppliers < Cost of goods sold
Answer: Cash paid to suppliers>Purchases
8-a. If the company debited income tax expense and credited income taxes payable $940 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?
Answer: $8,140 (cash paid )
8-b. What does the amount of these debits represent?
Tax refunds
Cash paid for income taxes
Taxes payable
Answer: cash paid for income taxes
9-a. What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows?
Answer: Add back income tax expense $940 and subtract tax paid $-8,140
9-b. What does this adjustment represent?
Tax paid < Income tax expenses
No taxes are payable
Tax paid > Income tax expenses
Answer: Tax paid >Income tax expense
10. Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction ( + or − ) of the adjustment?
Answer: Deduct the gain on disposal $-1,100
11. What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?
Answer: Net cash used in operating activities: $-3,200
12.What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?
Answer: $18,400 on account of PPE purchased ($192,000+$8,400-$192,000)
13.What is the company’s net cash provided by (used in) investing activities?
Answer: $-14,500
14.What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?
Answer: $13,000
15.What is the company’s net cash provided by (used in) financing activities?
Answer: Net cash inflow from financing activities $5,200
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $965,000 and sold the bonds on January 3, 2022, for $968,500. At December 31, the bonds had a fair value of $960,000, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2021 and 2022 net income as a result of this investment
Answers
Answer:
2021= $0 gain/loss
2022= $3,500 gain
Explanation:
S and L financial buys and sells securities
On December 27, 2021 S&L purchased coca-cola bonds at par for $965,000
The bonds were sold for $968,500 at January 3 2022
At December 31, the bonds had a fair value of $960,000
Since the amount of fair value has reduced greatly below the value at which it was bought on December 31 then, this implies that there will be no gain/loss that will be recognised in the earnings
Therefore,
The Pretax amount that S&L include in its net income as a result of this investment in 2021 is
= $0 gain/loss in earnings
The pretax amount that S&L include in its net income as a result in this investment in 2022 is
= $968,500-$965,000
= $3,500 gain
Number the following in the order of the flow of manufacturing costs for a company.
A. Closing under/overapplied factory overhead to Cost of Goods Sold.
B. Materials purchased.
C. Factory labor used and factory overhead incurred in production.
D. Completed jobs moved to finished goods.
E. Factory overhead applied to jobs according to the predetermined overhead rate.
F. Materials requisitioned to jobs.
G. Selling of finished product.
H. Preparation of financial statements to determine gross profit.
Answers
Answer:
B. Materials purchased.
F. Materials requisitioned to jobs.
C. Factory labor used and factory overhead incurred in production.
E. Factory overhead applied to jobs according to the predetermined overhead rate.
D. Completed jobs moved to finished goods.
A. Closing under/overapplied factory overhead to Cost of Goods Sold.
G. Selling of finished product.
H. Preparation of financial statements to determine gross profit.
Explanation:
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
The order of the flow of manufacturing costs for a company in an ascending order is;
1. Materials purchased.
2. Materials requisitioned to jobs.
3. Factory labor used and factory overhead incurred in production.
4. Factory overhead applied to jobs according to the predetermined overhead rate.
5. Completed jobs moved to finished goods.
6. Closing under/overapplied factory overhead to Cost of Goods Sold.
7. Selling of finished product.
8. Preparation of financial statements to determine gross profit.
Starbucks and Disney both once faltered in their
marketing efforts. This was because they were too
focused on and lost sight of their
Answers
Answer:
e. growth; customers
Explanation:
Starbucks and Disney both once faltered in their marketing efforts. This was because they were too focused on "growth" and lost sight of their "customers".
Starbucks and Disney lost sight of their customers as a result of focusing so much on growth. Even though growth is good but when you focus so much on it and loose customers, how can you grow? This affected their marketing efforts and led to wastage of resources.
The pursuit of growth should be with foresight and with the customers in mind. Such will reward the firm's marketing efforts.
Answer:
e
Explanation:
I need to select the items that are needs for my bank statement
Answers
Answer: Get a cell phone plan can insurance and a backpack. If u dont live in home im guessing
If u live in home, Cell Phone Plan, Car insurance, Electric Bill,
Explanation: Since you have 230 dollars
Since 1970, Super Rise, Inc., has provided maintenance services for elevators. On January 1, 2021, Super Rise obtains a contract to maintain an elevator in a 90-story building in New York City for 10 months and receives a fixed payment of $80,000. The contract specifies that Super Rise will receive an additional $40,000 at the end of the 10 months if there is no unexpected delay, stoppage, or accident during the year. Super Rise estimates variable consideration to be the most likely amount it will receive.
Required:
1. Assume that, because the building sees a constant flux of people throughout the day, Super Rise is allowed to access the elevators and related mechanical equipment only between 3am and 5am on any given day, which is insufficient to perform some of the more time-consuming repair work. As a result, Super Rise believes that unexpected delays are likely and that it will not earn the bonus. Prepare the journal entry Super Rise would record on January 1.
2. Assume instead that Super Rise knows at the inception of the contract that it will be given unlimited access to the elevators and related equipment each day, with the right to schedule repair sessions any time. When given these terms and conditions, Super Rise has never had any delays or accidents in the past. Prepare the journal entry Super Rise would record on January 31 to record one month of revenue.
3. Assume the same facts as requirement 1. In addition assume that, on May 31, Super Rise determines that it does not need to spend more than two hours on any given day to operate the elevator safely because the client's elevator is relatively new. Therefore, Super Rise believes that unexpected delays are very unlikely. Prepare the journal entry Super Rise would record on May 31 to recognize May revenue and any necessary revision in its estimated bonus receivable.
Answers
Answer:
1) Jan 1
Dr Cash $80,000
Cr Deferred Revenue $80,000
2)Jan 31
Dr Deferred Revenue 8,000
Dr Bonus Receivable 4,000
Cr Service Revenue 12,000
3)May 31
Dr Deferred Revenue 8,000
Dr Bonus Receivable 20,000
Cr Service Revenue 28,000
Explanation:
1. Preparation of the journal entry that Super Rise would record on January 1.
Based on the information we were told that a contract was obtained to maintain an elevator for 10 months in which they receives a fixed payment of the amount of $80,000 which means that the Journal entry on January 1will be:
Jan 1
Dr Cash $80,000
Cr Deferred Revenue $80,000
2)Preparation of journal entry Super Rise would record on Jan 31
Jan 31
Dr Deferred Revenue 8,000
(80,000/10months)
Dr Bonus Receivable 4,000
(40,000/10months)
Cr Service Revenue 12,000
3)Preparation of the journal entry Super Rise would record on May 31
May 31
Dr Deferred Revenue 8,000
(80,000/10months)
Dr Bonus Receivable 20,000
[( 40,000/10months)*5months]
January to May will give us 5months
Cr Service Revenue 28,000
Corentine Co. had $169,000 of accounts payable on September 30 and $141,000 on October 31. Total purchases on account during October were $298,000. Determine how much cash was paid on accounts payable during October. On September 30, Valerian Co. had a $111,000 balance in Accounts Receivable. During October, the company collected $111,390 from its credit customers. The October 31 balance in Accounts Receivable was $106,000. Determine the amount of sales on account that occurred in October. During October, Alameda Company had $119,500 of cash receipts and $120,150 of cash disbursements. The October 31 Cash balance was $27,100. Determine how much cash the company had at the close of business on September 30.
Answers
Answer and Explanation:
The computation is shown below:
a. For the cash paid
= Opening balance of account payable + total purchase - ending balance
= $169,000 + $298,000 - $141,000
= $326,000
b. The sale amount on account should be equivalent to the ending balance of account receivable i.e. $106,000
c. The beginning cash balance is
Closing cash balance = beginning cash balance + cash receipts - cash disbursements
$27,100 = Beginning cash balance + $119,500 - $120,150
So, the beginning cash balance is $27,750
7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
Answers
Answer:
What selling price would the company have established for Jobs P and Q?
Job P = $84,996Job Q = $61,632What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?
Job P = $4,250 per unitJob Q = $2,054 per unitExplanation:
a lot of information is missing, so I looked for a similar question in order to determine the costs of Jobs P and Q:
Molding Fabrication Total
machine-hours used 2,500 1,500 4,000
fixed manufacturing overhead $10,000 $15,000 $25,000
variable man. overhead $1.40 $2.20
per machine-hour
Job P Job Q
Direct materials $13,000 $8,000
Direct labor cost $21,000 $7,500
Machine-hours used:
Molding 1,700 800 Fabrication 600 900 Total 2,300 1,700variable overhead $3,220 $3,740
fixed overhead $10,000 $15,000
total costs $47,220 $34,240
cost per unit $2,2361 $1,141.33
total markup $37,776 $27,392
total selling price $84,996 $61,632
selling price per unit $4,249.80 $2,054.40
A financial instation formed by a large organizacion for its members is a savings and loan
Answers
Answer:
Credit Unions
Explanation:
Credit unions are non-profit making institutions established by large corporations or other entities to cater to their employee's financial welfare. They provide traditional banking services, although they operative like cooperatives societies. Credit unions are created, managed, and belong to their members.
Credit unions mainly offer credit facilities to its members. Because they are not for profits, they provide loans at very competitive terms compared to banks.
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, and 12 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 8 percent, and also has 12 years to maturity. Both bonds have a par value of $1,000. What is the price of each bond today? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) Price of Miller bond $ 1169.36 Price of Modigliani bond $ 847.53 If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 3 years? In 7 years? In 11 years? In 12 years?
Answers
Answer:
Miller-bond:
today: $ 1,167.68
after 1-year: $ 1,157.74
after 3 year: $ 1,136.03
after 7-year: $ 1,084.25
after 11-year: $ 1,018.87
at maturity: $ 1,000.00
Modigliani-bond:
today: $ 847.53
after 1-year: $ 855.49
after 3 year: $ 873.41
after 7-year: $ 918.89
after 11-year: $ 981.14
at maturity: $ 1,000.00
Explanation:
We need to solve for the present value of the coupon payment and maturity of each bonds:
Miller:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 80.000
time 12
rate 0.06
[tex]80 \times \frac{1-(1+0.06)^{-12} }{0.06} = PV\\[/tex]
PV $670.7075
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 12.00
rate 0.06
[tex]\frac{1000}{(1 + 0.06)^{12} } = PV[/tex]
PV 496.97
PV c $670.7075
PV m $496.9694
Total $1,167.6769
In few years ahead we can capitalize the bod and subtract the coupon payment
after a year:
1.167.669 x (1.06) - 80 = $1,157.7375
after three-year:
1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855
If we are far away then, it is better to re do the main formula
after 7-years:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 80.000
time 5
rate 0.06
[tex]80 \times \frac{1-(1+0.06)^{-5} }{0.06} = PV\\[/tex]
PV $336.9891
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 5.00
rate 0.06
[tex]\frac{1000}{(1 + 0.06)^{5} } = PV[/tex]
PV $747.26
PV c $336.9891
PV m $747.2582
Total $1,084.2473
1 year before maturity:
last coupon payment + maturity
1,080 /1.06 = 1.018,8679 = 1,018.87
For the Modigliani bond, we repeat the same procedure.
PV
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 30.000
time 24
rate 0.04
[tex]30 \times \frac{1-(1+0.04)^{-24} }{0.04} = PV\\[/tex]
PV $457.4089
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 24.00
rate 0.04
[tex]\frac{1000}{(1 + 0.04)^{24} } = PV[/tex]
PV 390.12
PV c $457.4089
PV m $390.1215
Total $847.5304
And we repeat the procedure for other years
Suppose we can divide all the goods produced by an economy into two types:
consumption goods and capital goods.
Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods. Suppose a technological advance occurs that affects the production of consumption goods but not capital goods. If a technological advance occurs that affects the production of consumption goods but not capital goods, then the production possibilities frontier will:_______.
Answers
Answer: C. shift outward along the consumption goods axis.
Explanation:
The Production Possibilities Frontier is used to graph the optimal production quantities of 2 types goods in an economy given the limited resources in the economy.
This means that the frontier represents the combination of both goods can be produced given available resources and if one produces more of one good they would have to give up producing some of the other good.
If there was a technological advance that could increase the amount of consumption goods given the same resources then the PPF would shift outward along the consumption good axis to reflect this.
Gains from trade
Consider two neighboring island countries called Contente and Dolorium. They each have 4 million labor hours available per month that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.
Country Rye Jeans
(Bushels per hour of labor) (Pairs per hour of labor)
Contente 8 16
Dolorium 5 20
Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Contente produces 6 million pairs of jeans and 36 million bushels of rye, and Dolorium produces 12 million pairs of jeans and 16 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
Contente's opportunity cost of producing 1 bushel of rye is _____ of jeans, and Dolorium's opportunity cost of producing 1 bushel of rye is _____ of jeans. Therefore, _______ has a comparative advantage in the production of rye, and _____ has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce _____ million bushels per month, and the country that produces jeans will produce _____ million pairs per month.
In the following table, enter each country's production decision on the third row of the table (marked "Production").
Suppose the country that produces rye trades 18 million bushels of rye to the other country in exchange for 54 million pairs of jeans.
In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," and enter each country's final consumption of each good on the line marked "Consumption."
When the two countries did not specialize, the total production of rye was 23 million bushels per month, and the total production of jeans was 68 million pairs per month. Because of specialization, the total production of rye has increased by _____ million bushels per month, and the total production of jeans has increased by _____ million pairs per month.
Because the two countries produce more rye and more jeans under specialization, each country is able to gain from trade.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption").
Contente Dolorium
Rye Jeans Rye Jeans
(Millions of (Millions of pairs) (Millions of (Millions of pairs)
bushels) bushels)
Without Trade
Production 8 48 15 20
Consumption 8 48 15 20
With Trade
Production
Trade Action
Consumption
Gains from Trade
Increase in Consumption
Answers
Answer:
Contente's opportunity cost of producing 1 bushel of rye is 0.5 of jeans, and Dolorium's opportunity cost of producing 1 bushel of rye is 0.25 of jeans. Therefore, DOLORIUM has a comparative advantage in the production of rye, and CONTENTE has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce 64 million bushels per month, and the country that produces jeans will produce 24 million pairs per month.
Suppose the country that produces rye trades 54 million bushels of rye to the other country in exchange for 18 million pairs of jeans.
Dolorium:
Export 54 million bushels of rye
Consume 10 million bushels of rye
Import 18 million pairs of jeans
Contente:
Export 18 million pairs of jeans
Consume 6 million pairs of jeans
Import 54 million bushels of rye
Before specialization, the total production of rye = 36 + 16 = 52 million bushels, and the total production of jeans = 6 + 12 = 18 million pairs.
Because of specialization, the total production of rye has increased by 12 million bushels per month, and the total production of jeans has increased by 6 million pairs per month.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table.
Contente:
Before specialization and trade, produced and consumed 6 million pairs of jeans and 36 million bushels of rye.
After specialization and trade, consumed 54 million bushels of rye and 6 million pairs of jeans.
Gain from trade is 18 million bushels of rye.
Dolorium:
Before specialization and trade, produced and consumed 12 million pairs of jeans and 16 million bushels of rye.
After specialization and trade, consumed 10 million bushels of rye and 18 million pairs of jeans.
Gain from trade is -2 million bushels of rye and 6 million pairs of jeans.
Explanation:
There is a mistake in the question, since Contente's production of jeans must be 6 per hour and its production of rye should be 12 bushels per hour. That is the only way that it can produce 6 million pairs of jeans and 36 million bushels of rye. Something similar happens with Dolorium, it must be able to produce 16 bushels of rye per hour and 4 pairs of jeans per hour in order to produce 12 million pairs of jeans and 16 million bushels of rye.
Country Rye Jeans
Contente 12 6
Dolorium 16 4
Contente's opportunity cost of producing rye = 6 / 12 = 0.5 pairs of jeans.
Dolorium's opportunity cost of producing rye = 4 / 16 = 0.25 pairs of jeans.
Dolorium's production of rye = 16 bushels x 4,000,000 labor hours = 64,000,000 bushels of rye.
Contente's production of jeans = 6 pairs x 4,000,000 labor hours = 24,000,000 pairs of jeans
