Answer:
Boat trailers= $96,200
Explanation:
Giving the following information:
Travel trailers Boat trailers:
Budgeted units to be produced 2,050 3,200
Budgeted number of setups 320 520 = 840
Total budgeted setup costs for the year are $155,400.
First, we need to calculate the predetermined activity rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Setup= 155,400/840= $185 per setup
Now, we can allocate costs to boat trailers:
Boat trailers= 185*520= $96,200
Pandey Inc. had the following activities during the month:______.
A. Borrowed $890,000 cash, signing a promissory note.
B. Bought a building for $1,180,000, paying $260,000 in cash and signing a promissory note for $920,000.
C. Rented equipment at a cost of $29,000 per month and issued a check covering six months’ rent.
D. Provided $200,000 of services and billed customers.
E. Purchased $68,000 of supplies on account.
F. Received a utility bill for the current period in the amount of $5,000.
G. Raised sales prices on 200 units from $450 per unit to $630 per unit.
H. Received a 50% deposit from a customer on a $58,000 order to be filled next month.
Required:
Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (−) sign before each number to show its effect on the accounting equation. If the activity should not to be recorded as a transaction, enter the word "None" in the first column for that activity. AssetsLiabilitiesStockholders' EquityAccount(s)AmountAccount(s)AmountAccount(s)AmountABCDEFGHWhat will be an ideal response?
Answer:
Based on the analysis, the basic accounting equations holds as follows:
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
Explanation:
Note: See the attached excel file for the horizontal analysis.
For event C: Advance payment for Equipment rentals = $29,000 * 5 months = $145,000
All the items under the shareholders’ fund are income statement items that will affect the retained earnings.
The additional note below the horizontal analysis in the excel file shows that accounting equations holds. That is;
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
The following information is for the Jeffries Corporation:
Product A: Revenue $16.00 Variable Cost $12.00
Product B: Revenue $24.00 Variable Cost $16.00
Total fixed costs $75,000
Assume the sales mix consists of three units of Product A and one unit of Product B.
If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will:____________
Answer:
will decrease per unit
If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will: $ 4.8 per unit of sales mix.
Explanation:
Jeffries Corporation:
Product A: Product B:
Revenue $16.00 $24.00
Variable Cost $12.00 $16.00
Contribution Margin $ 4.0 $8.0
Sales Mix 3 units 1 unit
% 0.75 0.25
When he sales mix consists of three units of Product A and one unit of Product B the weighted-average contribution margin was
C.M (3* Product A ) +C. M( 1* Product B)
$ 4.0*0.75 + $8.0*0.25= $ 3.0 + $2.0 = $ 5.0
If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will: $ 4.8 per unit of sales mix.
The new Sales mix % will be
Product A = 4/5= 0.8 % and
Product B = 1/5 = 0.2%
C.M (4* Product A ) +C. M( 1* Product B)
$ 4.0*0.8 + $8.0* 0.2= $ 3.2 + $1.6 = $ 4.8
Because the contribution margin of Product B is greater and the CM of Product A is less so when we decrease the % of Product B in the Sales mix the CM is also decreased.
Answer T for true or F for false.There can be no gains from trade between two countries if one of them has an absolute advantage in the production of all goods. Two individuals can benefit from specialization and trade if they agree upon a price that lies between their opportunity costs of producing the good. When a country opens to trade, people working in industries producing goods that the country exports are harmed by the trade. When two countries decide to engage in specialization and trade, the prices of all goods sold in each country will fall.
Answer:
Sentence One: False
Explanation:
Absolute advantage does not necessarily trump comparative advantage. Comparative advantage takes into consideration the principle of opportunity cost. The country with the absolute advantage may not be the country with the highest comparative advantage (that is, it is not the country with the least opportunity cost in the production of that same good).
Sentence Two: True
Specialization of trade occurs when countries specialize based on their absolute advantage then trade it with the goods from other countries which they have specialized in the production of same. When two of such countries agree on prices between their opportunity costs of producing the goods, it is usually more beneficial.
Sentence Three: False
Increased exports translate to increased revenue. Increased revenue means more business, the ability of the firms in such industry to retain and pay their workers and even hire more people as their operations expand.
Sentence Four: False
Specialization of trade simply means that a country focuses on improving its efficiency with regard to the production of CERTAIN production, not ALL its products. The fall in price is likely, however, to be seen in the goods in which it specialises in, subject to the laws of demand and supply as well as other economic factors.
Cheers
Item1 1 points eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 1 points Assume the perpetual inventory method is used. 1) The company purchased $13,900 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,400 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $21,800 cash. The amount of gross margin from the four transactions is: Multiple Choice $11,578. $11,510. $7,742. $7,900.
Answer:
$11,510
Explanation:
Calculation for the gross margin amount from the four transactions
First is to find the Cost of goods sold
Cost of goods sold = ($13,900 - $3,400) × (100%-2%)
Cost of goods sold=$10,500*0.98
Cost of goods sold=$10,290
Last step is to find the gross margin amount using this formula
Gross margin amount=Sales revenue - Cost of goods sold
Let plug in the formula
Gross margin amount=$21,800-$10,290
Gross margin amount=$11,510
Therefore the gross margin amount from the four transactions will be $11,510
Cindy is considering going to law school. If she does, she will spend $70,000 on tuition and books to get a college education (during the first time period), $140,000 on tuition and books to get a law degree (during the second time period), and her law degree will earn her $700,000 during the remainder of her work-life (during the third time period). Cindy's time preference for money is associated with a per-period interest rate of 10 percent. Approximately what is Cindy's present value of obtaining a law degree
Answer:
$346,581.52
Explanation:
we need to use the present value formula to solve this:
present value = future value / (1 + r)ⁿ
the present value of tuition and books will be negative (since they are a cash outflow)
PV = -70,000 / (1 + 0.1) = -70,000 / 1.1 = -$63,636.36
PV = -140,000 / (1 + 0.1)² = -140,000 / 1.1² = -$115,702.48
the present value of the expected income will be positive since it represents cash inflows
PV = 700,000 / (1 + 0.1)³ = 700,000 / 1.1³ = $525,920.36
the net present value of obtaining a law degree = $525,920.36 - $63,636.36 - $115,702.48 = $346,581.52
Which of the following positions would be considered a human resource specialist?
Answer:
1) Job Application. ...
2) Employee Benefits Survey. ...
3) Employee Referral Form. ...
4) 360 Degree Feedback. ...
5) PTO Request.
Explanation:
1 point
6. A combination of stocks and bond portfolio offers Mike Spangler a rate of return of 8.5%. Considering the inflation rate of
395, what is the actual (real) rate of return?
O 7.33%
5.330
3.33%
Answer:
5.33%
Explanation:
From the question,
We have the following:
Nominal rate was put at = 8.5% = 0.085
Rate of inflation = 3% = 0.03
The formula for actual or real rate of return =
= [(1 + nominal rate)/(1+inflation rate)]-1
= (1 + 0.085/1+0.03)-1
= (1.085/1.03)-1
= 1.0533-1
= 0.0533 x 100
= 5.33%
In conclusion, the actual or real rate of return is 5.33 percent
O'Neill, Incorporated income statement for the most recent month is given below. A proposal has been made that will lower variable expenses in Store A to 62% of sales. However, this reduction can only be accomplished by an increase in fixed expenses of $8,000. If this proposal is implemented and sales remain constant, overall company net operating income should: Select one: a. remain the same b. decrease by $4,200 c. increase by $2,000 d. increase by $8,000
Answer:
c. increase by $2,000
Explanation:
The computation of company net operating income is shown below:-
New amount for Store A variable expenses = Sales percentage × Store A sales
= 0.62 × $100,000
= $62,000
Change in net operating income = (Variable expenses of store A - New amount for Store A variable expenses) - Fixed expenses
= ($72,000 - $62,000) - $8,000
= $10,000 - $8,000
= $2,000 increase
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of the time and 101 guests 10% of the time. The variable costs per occupied room and overbooking costs are the same as in the lecture.Calculate the expected revenue, expected variable costs and expected costs from overbooking.Using marginal analysis, should the hotel raise its price? Explain your answer.
Answer:
$3019.50
Explanation:
Expected revenue can be calculated by multiplying the number of guests with the price given in the question. By working out the calculations if the marginal cost comes positive then the hotel should raise its price.
DATA
Expected number of guests = (5% x 96) + (10% x 97) + (2% x 98) + (30% x 99) + (25% x 100) + (10% x 101)
Expected number of guests = 98.9 or 99 guests
Expected revenue = 99 x 30.50 = $3019.50
Expected variable cost = 99 x (varibale cost given in the lecture)
Expected costs from overbooking = 99 - maximum allowed guests (given in lecture )
Expected profit = 3019.50 - 99 x (varibale cost given in lecture) - (99 - maximum allowed guests) given in lecture
Marginal cost = (expected profit - profit when price is 30 (given in lecture))/0.50
NOTE: Data given in the question lacks information such as variable cost given in the lecture.
Cost planning starts with the proposal for the project, at which time project costs are estimated. For budgeting purposes, it is best to keep the work packages or activities small in terms of scope and duration. Once your budget is planned and allocated across your work packages, it is critical to monitor and control your project's cost. What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data? In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation? Why is monitoring and controlling the project cost important for the success of the project? What are some key components to monitor the health of the project, as it relates to earned value?
Answer:
Each question is answered separately with mentioning the question part first in bold letters following with the answer to that part of the question.
Explanation:
What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data?
The budget plan is the baseline by which the project's progress can be compared with it's actual results. It helps to determine the variance of the project. Moreover, as the project's work and cost can change in the future we need to re-baseline the project's budget in order to keep better track of the comparison data.
In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation?
This could be due to many reasons why cost reporting may differ from actual work such as lack of experience in estimating budgeted cost, uncertain events, fluctuations in prices due to economic instability etc.
The best way to resolve this is by consulting with some one who has more experience as a project manager when preparing the budget. Another way is to be prepared to make changes in the estimated budget plan to meet the market dynamics.
Why is monitoring and controlling the project cost important for the success of the project?
When the project's cost has been budgeted and prepared the main issue is to ensure that the actual work done is within the limit of the budgeted cost. If for example it is estimated that the project would incur $10,000 per month resulting in cost of $120,000 at the end of the year. After four months we notice that the project has so far incurred total cost of $60,000, this could be a problem as it has exceeded the estimated project cost. This would ultimately result in either project not being completed on time as the estimated cost has exceeded and no further budget is available or the project's cost would exceed the benefits it would provide in the near future. This is why monitoring and controlling the project cost important for the success of the project.
What are some key components to monitor the health of the project, as it relates to earned value?
The key components to monitor the health of the project are Cost Variance (Difference between what is planned to be spent and what is actually spent), Schedule Variance (Difference between what was planned to be done and what is actually done), Cost Performance Index (Ratio comparing how much you planned to spent and how much you actually spent), and Schedule Performance Index (Ratio comparing how much work you planned to do and how much work you actually did). They will help in estimating the project's current position whether it is operating better or worse than it is expected.
Carnes has the following account balances as of December 31, 2017 before an acquisition transaction takes place. Inventory $100,000 Land 400,000 Buildings (net) 500,000 Common stock ($10 par) 600,000 Additional paid-in capital 200,000 Retained earnings 200,000 Revenues 450,000 Expenses 250,000 The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On December 31, 2017, Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock. Riley paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Riley has $700,000 in its common stock account and $300,000 in its additional paid-in capital account. At the date of acquisition, by how much does Riley's additional paid-in capital increase or decrease? Question 2 options: A) $450,000 increase. B) $640,000 increase. C) $440,000 increase. D) $0. E) $650,000 decrease.
Answer:
C) $440,000 increase.
Explanation:
Particulars Amount
Number of shares issued (a) 30,000
Issued price per shares $25
Less: Par value per shares $10
Paid in capital in excess of par per share (b) $10
Total paid in capital in excess of par (a*b) $450,000
(30,000 shares * $15)
Less: Issue costs $10,000
Increase in additional paid-in-capital $440,000
You’ve collected the following information from your favorite financial website.
52-Week Price
Div PE Close Net
Hi Lo Stock (Div) Yld % Ratio Price Chg
64.60 47.80 Abbott 1.12 1.9 235.6 62.91 −.05
145.94 70.28 Ralph Lauren
2.50 1.8 70.9 139.71 .62
171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19
91.80 71.96 Duke Energy
3.56 4.9 17.6 74.30 .84
113.19 96.20 Disney 1.68 1.7 15.5 ? .10
According to your research, the growth rate in dividends for Abbott Laboratories for the previous 5 years has been negative 11.5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock?
Answer:
13.48%
Explanation:
Calculation for the required return for the company's stock using this formula
Required return = (D1/P0) +g
Let plug in the formula
Required return = [$1.12(1 + 0.115) / $62.91] + 0.115
Required return= [$1.12(1.115) / $62.91] + 0.115
Required return =(1.2488/$62.91)+0.115
Required return=0.019850580194+0.115
Required return = 0.1348 *100
Required return =13.48%
Therefore the required return for the company's stock will be 13.48
Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,600 to the Roth IRA ($4,200 a year). The current value of the Roth IRA is $17,600. In the current year, Sherry withdraws $15,300 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $15,300 withdrawal will she retain after taxes to fund her car purchase
Answer:
$14,382
Explanation:
The computation of the withdrawal amount is shown below:-
Amount Subject to tax= Amount of Withdrawal + Non-Taxable Amount
= $15,300 + $12,600
= $2,700
After Tax withdrawal Retained = Non-Taxable Amount - Tax - Penalty
= $12,600 + ($2,700 - ($2,700 × 24%) - ($2,700 × 10%))
= $12,600 + ($2,700 - $648 - $270)
= $14,382
Masters, Hardy, and Rowen are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Masters, $15,000; Hardy, $15,000; Rowen, $(2,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $28,000 in cash to be distributed. Rowen pays $2,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Answer:
a. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
Explanation:
Given options:
a. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
b. Debit Masters, Capital $14,000; debit Hardy, Capital $14,000; credit Cash $28,000.
c. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Rowen, Capital $2,000; credit Cash $28,000.
d. Debit Cash $28,000; debit Rowen, Capital $2,000; credit Masters, Capital $15,000; credit Hardy, Capital $15,000.
e. Debit Masters, Capital $9,334; debit Hardy, Capital $9,333; debit Rowen, Capital $9,333; credit Cash $28,000.
The journal entry to record the final distribution is shown below:
Master capital Dr $15,000
Hardy capital Dr $15,000
To Cash $30,000
(Being the final distribution is recorded)
Here debited both capital as it reduced the stockholder equity also it decreased the assets
Hence, the correct option is a.
The general journal entry to record the final distribution would be: Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
Based on the information given the appropriate journal entry is:
Debit Masters, Capital $15,000
Debit Hardy, Capital $15,000
Credit Cash $30,000
($28,000+$2,000)
(To record final distribution)
Inconclusion the general journal entry to record the final distribution would be: Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
Learn more about partnership here:https://brainly.com/question/14034519
Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31. Sales revenue $ 500,000 Cost of goods sold 272,000 Warranty expense 34,000 Inspection costs 15,000 Scrap and rework 10,600 Product returns due to defects 6,000 Depreciation expense 32,000 Machine maintenance expense 11,000 Wage expense 135,000 Machine breakdown costs 5,400 Estimated lost sales due to poor quality 10,000 a. Classify each of the above costs into the four quality cost categories and prepare a cost of quality report for Nogain. b. What percentage of sales revenue is being spent on prevention and appraisal activities? c. What percentage of sales revenue is being spent on internal and external failure costs?
Answer:
a)
Prevention costs: costs incurred in order to prevent failures or minimize defects, they include maintenance expenses = $11,000 Appraisal costs: costs incurred in order to make sure that the products meet quality standards and customers' expectations, they include inspection costs = $15,000 Internal failure costs: costs incurred due to faulty products or procedures that occur before any good is actually taken out of the facilities, they include scrap and rework ($10,600) and machine breakdown costs ($5,400) = $16,000External failure costs: costs incurred after the goods leave the facilities, they include warranty expenses ($34,000), product returns due to defects ($6,000) and lost sales due to low quality ($10,000) = $50,000Quality cost report:
Prevention costs
Machine maintenance expense $11,000 $11,000Appraisal costs
Inspection cost $15,000 $15,000Internal failure cost :
Scrap & rework $10,600 Machine breakdown costs $5,400 $16,000External failure costs :
Warranty expense $34,000 Product returns due to defects $6,000 Estimated lost sales due to poor quality $10,000 $50,000Total quality cost $92,000
b) What percentage of sales revenue is being spent on prevention and appraisal activities?
total sales revenue = $500,000
prevention and appraisal costs = $26,000
% = $26,000 / $500,000 = 5.2%
c) What percentage of sales revenue is being spent on internal and external failure costs?
internal and external failure costs = $66,000
% = $66,000 / $500,000 = 13.2%
In 2019, the Creighton Agricultural Products Company used a predetermined manufacturing overhead rate of 150% times direct labor cost. Information for the year is as follows: Actual direct materials cost $812,500 Actual direct labor cost $180,000 Actual overhead costs incurred: $264,000 Total direct labor hours 5,520 What is the amount of the adjustment to COGS required due to the over or under allocation of overhead costs. Select one: a. $4,300 b. $5,900 c. $6,000 d. None of the choices
Answer:
c. $6,000
Explanation:
The computation of the amount of the adjustment required to cost of goods sold is shown below:
Estimated manufacturing overhead cost is
= 150% × $180,000
= $270,000
And, the actual overhead cost incurred is $264,000
So, the adjustment amount is
= $270,000 - $264,000
= $6,000
Hence, the correct option is c. $6,000
) A homeowner is considering putting solar panels on the roof of his house. The installed cost of putting 3 kW of solar panels is $6000 and the panels come with a 25 year guarantee. The panels would be able to meet the average monthly electrical consumption of 850 kW-hrs for the house. a) If the homeowner has the $6000 available for the project, what would the cost of electricity from the power company need to be greater than ($/kW-hr) to make the project viable if other investments are providing 8% interest. ($0.0545/kW-hr) b) If the homeowner had to borrow the $6000 from the bank at 5% interest for 10 years (monthly payments) what would the cost of electricity need to be greater than in $/kWhr from the power company to make the project viable if other investments are providing 8% interest. ($0.0476/kW-hr)
Answer:
a) If the homeowner has the $6000 available for the project, what would the cost of electricity from the power company need to be greater than ($/kW-hr) to make the project viable if other investments are providing 8% interest. ($0.0545/kW-hr)
we can use the present value of an annuity formula:
PV = monthly savings x annuity factor
PV = $6,000Annuity factor, 300 periods, 0.6667% = 129.52005monthly savings = $6,000 / 129.52005 = $46.3249
price of kW-hr = $46.3249 / 850 = $0.054499851 ≈ $0.0545
b) If the homeowner had to borrow the $6000 from the bank at 5% interest for 10 years (monthly payments) what would the cost of electricity need to be greater than in $/kWhr from the power company to make the project viable if other investments are providing 8% interest. ($0.0476/kW-hr)
the monthly payment to cover the loan = PV / annuity factor
PV = $6,000Annuity factor, 120 periods, 0.4167% = 94.28033monthly payment = $6,000 / 94.28033 = $63.64
price of kW-hr = $63.64 / 850 = $0.074870588 ≈ $0.0749
At year-end, has cash of , current accounts receivable of , merchandise inventory of , and prepaid expenses totaling . Liabilities of must be paid next year. Assume accounts receivable had a beginning balance of and net credit sales for the current year totaled . How many days did it take to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number.)
Answer: 30 days
Explanation:
Days to collect receivables = 365/ Average Receivables turnover
Average Receivables turnover = Net credit sales/ Average receivables
Average receivables = (Beginning receivables + ending receivables) /2
= (40,000 + 120,000)/2
= $80,000
Average Receivables turnover = 960,000/80,000
= 12
Days to collect receivables = 365/12
= 30.42 days
= 30 days
Use the following generalized linear demand relation:
Qe = 680 - 9P + 0.006M - 4PR
Where M is income and PRis the price of a related good, R.
1. From this relation it is apparent that the good is:____.
a. an inferior good.
b. a substitute for good R.
c. a normal good.
d. a complement for good R.
e. both c and d.
2. If M $15,000 and PR $20, the demand function is:______.
A. P = 690 - 9Qd.
B. Qd = 690 - 9P.
C. Qd = 680 - 9P.
D. P = 680 - 9Qd.
E. Qd = 800 - 19 P.
3. If M-$15,000 and Pr- $20 and the supply function is Qs price and quantity are, respectively:______.
A. P $55 and Q = 195.
B. P=$6 and Q = 38.
C. P=$12 and Q = 200.
D. P=$50 andQ = 170.
E. P=$40 and Q =250.
4. If M $15,000 and PR $20 and the supply function is Qs = 30 + 3P, then, when the price of the good is $60:______.
a. there is a shortage of 60 units of the good.
b. there is equilibrium in the market.
c. there is a surplus of 60 units of the good.
d. the quantities demanded and supplied are indeterminate.
5. If M $15,000 and Pr-$20 and the supply function is Qs 30+3P, then, when the price of the good is $40:_____.
a. there is equilibrium in the market.
b. there is a shortage of 180 units of the good.
c. there is a surplus of 180 units of the good.
d. there is a shortage of 80 units of the good.
Answer:
Explanation:
1 .
Qe = 680 - 9P + 0.006M - 4PR
When the price of good R is increased , the demand of good is decreased . That means the demand of another good is increased . It means that goods R is a complement good . Now the coefficient of M is positive that means when income increases , demand of good increases . So the good is a normal good .
Hence good is a normal and complement good of R
option e ) is correct.
2 .
Qe = 680 - 9P + 0.006M - 4PR
Putting the value of M = 15000 and PR = 20
Qe = 680 - 9P + 0.006x 15000 - 4 x 20
Qe = 680 - 9P + 90 - 80 = 690 - 9P
3 .
For equilibrium
supply = demand
30+3P = 690 - 9P
12 P = 660
P = 55
Q = 690 - 9P = 690 - 9 x 55 = 195
4 .
When the price of goods is 60 , it is higher than the equilibrium price , hence demand will shrink and it will be less than supply
quantity demanded = 690 - 9P = 690 - 9 x 60 = 150
quantity supplied = 30+3P = 30 + 3 x 60 = 210
excess supply = 210 - 150 = 60 .
5 .
when price is 40 which is less than equilibrium price
there will be more demand
quantity demanded
= 690 - 9P = 690 - 9 x 40 = 330
quantity supplied = 30+3P = 30 + 3 x 40 = 150
excess supply = 180
1. The good is both a normal as well as a complement for good R.
2. The demand function would be Qd = 690 - 9P.
3. The P is $55 and Q is 195 units.
4. There is a supply surplus of 60 units of the goods.
5. There is a shortage of 180 units of goods due to excess demand.
The good referred to as normal good as M is given positive, which means income increases the quantity of demand would also rise. On the other hand, the good is complementary to R due to the negative relationship that is the price of R increases would create an increase in demand of another good.
The function is given as:
[tex]Qe = 680 - 9P + 0.006M - 4PR[/tex]
Now, by substituting the value of M that is 15000 and PR that is 20 in the above function, it would give:
[tex]Qe = 680 - 9P + 0.006x 15000 - 4*20\\Qe=690 - 9P[/tex]
The equilibrium level is decided when demand equalizes with the supply.
Price at equilibrium would be computed as:
[tex]30+3P = 690 - 9P\\=55[/tex]
Now, equilibrium quantity would be:
[tex]Q = 690 - 9P \\ = 195[/tex]
The excess or surplus of supply would be seen when the price becomes 60. it is because this price would be more than the equilibrium price that is 55, which would decrease the quantity demanded. Thus, it shows that supply in the market is the same but demand falls with increased prices.
Quantity demanded would be:
[tex]Qd = 690 - 9*60 \\ = 150[/tex]
Quantity supplied would be:
[tex]Qs= 30 + 3* 60 \\= 210[/tex]
Finally, the excess supply is:
[tex]Qs-Qd\\=210 - 150 \\= 60[/tex]
When prices fall that is 40 below the equilibrium prices then it would increase the quantity demanded with the same supply in the market.
Calculation of Quantity demanded:
[tex]Qd= 690 - 9 * 40\\ = 330[/tex]
Quantity supplied is computed as:
[tex]Qs = 30 + 3* 40 \\= 150[/tex]
Now the excess of demand would be:
[tex]Qd-Qs\\330-150\\=180[/tex]
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Amy Parker, a 22-year-old and newly hired marine biologist, is quick to admit that she does not plan to keep close tabs on how her 401(k) retirement plan will grow with time. This sort of thing does not really interest her. Amy's contribution, plus that of her employer, amounts to $2,250 per year starting at age 23. Amy expects this amount to increase by 4% each year until she retires at the age of 67 (there will be 45 EOY payments). What is the compounded future value of Amy's 401(k) plan if it earns 6% per year?
Answer:
$1,213,657.685
Explanation:
For computation of compounded future value first we need to find out the present worth which is shown below:-
[tex]Present\ worth = Initial\ amount\ of\ investment\times \frac{(1 - (1 + g)^n \times (1 + i)^{-n}}{i - g}[/tex]
[tex]= \$2,250\times (\frac{(1 - (1 + 0.04)^{45}\times (1 + 0.06)^{-45}}{0.06 - 0.04})\\\\ = \$2,250 \times \frac{1-0.216245988}{0.02}[/tex]
= $88,172.32636
Now, Future value = Present worth × (1 + interest rate)^number of years
= $88,172.32636 × (1 + 6%)^45
= $1,213,657.685
Therefore we have applied the above formula to determine the future value.
Boilermaker House Painting Company incurs the following transactions for September.
1. Paint houses in the current month for $15,000 on account. Assets increase and stockholders' equity increases.
2. Purchase painting equipment for $16,000 cash. One asset increases and another asset decreases.
3. Purchase office supplies on account for $2,500. Assets increase and liabilities increase.
4. Pay employee salaries of $3,200 for the current month. One asset increases and another asset decreases.
5. Purchase advertising to appear in the current month, $1,200. Assets increase and stockholders' equity increases.
6. Pay office rent of $4,400 for the current month. Assets decrease and stockholders' equity decreases.
7. Receive $10,000 from customers in (1) above. One asset increases and another asset decreases.
8. Receive cash of $5,000 in advance from a customer who plans to have his house painted in the following month. Assets increase and liabilities increase.
For each transaction, describe the dual effect on the accounting equation. For example, for the first transaction, (1) assets increase and (2) stockholders' equity increases.
The description of the dual effects of the transactions on the accounting equation is as follows:
1. Asset increases (Accounts Receivable) and stockholders' equity (Retained Earnings) increases.
2. One asset (Equipment) increases and another asset (Cash) decreases.
3. Assets (Supplies) increase and liabilities (Accounts Payable) increase.
4. Assets (Cash) decrease and stockholders' equity (Retained Earnings) decreases.
5. Assets (Cash) decrease and stockholders' equity (Retained Earnings) decreases.
6. Assets (Cash) decrease and stockholders' equity (Retained Earnings) decreases.
7. One asset (Cash) increases and another asset (Accounts Receivable) decreases.
8. Assets (Cash) increase and liabilities (Deferred Revenue) increase.
What is the Accounting Equation?The accounting equation is a depiction that assets equal liabilities and equity at every given time and with every transaction. This equation gives each transaction the dual effect.
Data Analysis:1. Accounts Receivable $15,000 Service Revenue $15,000
2. Equipment $16,000 Cash $16,000
3. Supplies $2,500 Accounts Payable $2,500
4. Salaries Expense $3,200 Cash $3,200
5. Advertising Expense $1,200 Cash $3,200
6. Rent Expense $4,400 Cash $4,400
7. Cash $10,000 Accounts Receivable $10,000
8. Cash $5,000 Deferred Revenue $5,000
Thus, the dual effect means that each transaction affects, at least, two accounts of the accounting equation.
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In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of and a volatility of . Currently, the risk-free rate of interest is . Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of , a volatility of , and a correlation of with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio. The required return is nothing%. (Round to two decimal places.) Use the result of the above calculation to determine whether you should add the venture capital fund to your portfolio. Should you add the venture fund to your portfolio?
Answer: 6.29%
Explanation:
Required return = Risk free rate + beta ( expected return - risk free rate)
Beta.
[tex]= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493[/tex]
Required return = 3.63% + 0.493(9.03% - 3.63%)
= 6.29%
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:_______.
Opened a business bank account with a deposit of $25,000 from personal funds.
Purchased office supplies on account, $2,600.
Received cash from fees earned for managing rental property, $7,030.
Paid rent on office and equipment for the month, $3,190.
Paid creditors on account, $1,180.
Billed customers for fees earned for managing rental property, $5,910.
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Paid office salaries, $2,250.
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Withdrew cash for personal use, $2,130.
Required:1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
Answer:
Opened a business bank account with a deposit of $25,000 from personal funds.
Dr Cash 25,000
Cr Schatz, Pamela, capital 25,000
the account balances:
Cash 25,000
Schatz, Pamela, capital 25,000
Purchased office supplies on account, $2,600.
Dr Supplies 2,600
Cr Accounts payable 2,600
the account balances:
Supplies 2,600
Accounts payable 2,600
Received cash from fees earned for managing rental property, $7,030.
Dr Cash 7,030
Cr Service revenue 7,030
the account balances:
Cash 32,030
Service revenue 7,030
Paid rent on office and equipment for the month, $3,190.
Dr Rent expense 3,190
Cr Cash 3,190
the account balances:
Cash 28,840
Rent expense 3,190
Paid creditors on account, $1,180.
Dr Accounts payable 1,180
Cr Cash 1,180
the account balances:
Cash 27,660
Accounts payable 1,420
Billed customers for fees earned for managing rental property, $5,910.
Dr Accounts receivable 5,910
Cr Service revenue 5,910
the account balances:
Accounts receivable 5,910
Service revenue 12,940
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Dr Rent expense 710
Dr Miscellaneous expenses 350
Cr Cash 1,060
the account balances:
Cash 26,600
Rent expense 3,900
Miscellaneous expenses 350
Paid office salaries, $2,250.
Dr Wages expense 2,250
Cr Cash 2,250
the account balances:
Cash 24,350
Wages expense 2,250
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Dr Supplies expense 1,060
Cr Supplies 1,060
the account balances:
Supplies 1,540
Supplies expense 1,060
Withdrew cash for personal use, $2,130.
Dr Schatz, Pamela, drawings 2,130
Cr Cash 2,130
the account balances:
Cash 22,220
Schatz, Pamela, capital 22,870
An indication of the effect of each transaction and the account balances are as follows:
Transaction Assets = Liabilities + Capital
1. $25,000 $25,000
Account balances $25,000 $0 $25,000
2. $2,600 $2,600
Account balances $27,600 $2,600 $25,000
3. $7,030 $7,030
Account balances $34,630 $2,600 $32,030
4. -3,190 -$3,190
Account balances $31,440 $2,600 $28,840
5. -$1,180 -$1,180
Account balances $30,260 $1,420 $28,840
6. $5,910 $5,910
Account balances $36,170 $1,420 $34,750
7. -$710 -$710
Account balances $35,460 $1,420 $34,040
8. -$350 -$350
Account balances $35,110 $1,420 $33,690
9. -$2,250 -$2,250
Account balances $32,860 $1,420 $31,440
10. -$1,060 -$1,060
Account balances $31,800 $1,420 $30,380
11. -$2,130 -$2,130
Account balances $29,670 $1,420 $28,250
Transaction Analysis:Cash $25,000 Common Stock $25,000
Office supplies $2,600 Accounts Payable $2,600
Cash $7,030 Rental Fees $7,030
Rent Expenses $3,190 Cash $3,190
Accounts Payable $1,180 Cash $1,180
Accounts Receivable $5,910 Rental Fees $5,910
Automobile Expenses $710 Cash $710
Miscellaneous Expenses $350 Cash $350
Office Salaries Expenses $2,250 Cash $2,250
Supplies Expenses $1,060 Office Supplies $1,060
Drawings $2,130 Cash $2,130
Thus, based on the accounting equation, each transaction affects either the assets, liabilities, or capital.
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Tandy Corporation uses a job-order costing system with a single plant-wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $249,000, variable manufacturing overhead of $3.80 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job X784 which was recently completed: Job E's manufacturing cost: Total machine-hours 250 Direct materials $ 470 Direct labor cost $ 5,500 If the company marks up its unit product costs by 30% then the selling price for Job X784 is closest to: Group of answer choices $2,698.50 $12,693.50 $7,761.00 $11,693.50
Answer:
Selling price= $11,693.5
Explanation:
Giving the following information:
TJob X784:
Total machine-hours 250
Direct materials $ 470
Direct labor cost $ 5,500
The company marks up its unit product costs by 30%
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (249,000/30,000) + 3.8
Predetermined manufacturing overhead rate=$12.1 per machine hour
Now, we can calculate the total cost and selling price:
Total cost= 470 + 5,500 + 12.1*250
Total cost= $8,995
Selling price= 8,995*1.3= $11,693.5
Is your boss right? A. Yes, you can tell by the way the income shares for each factor move in opposite directions over time. B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time. C. The production function cannot be determined without knowing how real GDP changed over time. D. No, if it were a Cobb-Douglas production function, the income shares would change in the same direction over time.
Answer: B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
Explanation:
The Cobb-Douglas production function is usually used to show the relationship between capital and labor( can be used for other variables) and how much output they can produce at varying levels.
The thing about the Cobb-Douglas function however, is that it assumes a constant rate of income shares overtime. This country's income on the other hand, sees its income shares fluctuating overtime so the Cobb-Douglas function is not a good representation for them.
The firm Gelati-Banking (GB) is considering a project with the following characteristics. Sales will be $100 MM for sure in the first year and grow 10% in the second year; thereafter, the long term growth rate is 3%. Gross Profit Margin (Gross Profit over Sales) will be 20%. Depreciation will be $10 MM each year for the next two years. Working Capital held for the project will have to be 10% of sales. Additional CAPX each year will be $11MM in year 1 and $12 MM in year 2. All cash flows defined here are deterministic and will go on indefinitely. Interest rates are as follows: 3-month t-bill is 3%, the 2 year treasury is 4% and the long bond (30-year) is trading at 5% per year. The Corporate Tax Rate is 40%. What would the investment need to be for this project to be breakeven (ignoring depreciation effects of the investment)
Answer:
Investment needed for breakeven is 784.48 MM
Explanation:
Working is attached with this answer in PDF file, please find it.
The project will be at breakeven when NPV will be equal to 0
NPV = -Investment + Present value of year 1 cash flows + Present value of year 2 cash flows + Present value of year 3 and onwards cash flows
0 = - investment + 5/1.03 + 14.2/(1.04)2 + 15.326 / (0.05 - 0.03)
0 = -Investment + 4.854 + 13.129 + 766.500
Investment = 4.854 + 13.129 + 766.500
Investment = 784.483
(1.05)3
The investment will be less than $ 679.94 MM. At time 0 , the project will be at breakeven when the investment invested intially will be less than $ 669.94 MM.
Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is:__________.
a. $804,000.
b. $828,000.
c. $776,000.
d. $552,000.
Answer:
a. $804,000
Explanation:
Preparation of Worth Company's cost of goods sold for the year
Cost of goods manufactured $816,000
Add Beginning finished goods inventory $252,000
Less Ending finished goods inventory ($264,000)
Cost of goods sold $804,000
Therefore Worth Company's cost of goods sold for the year is: $804,000
H. J., Inc., and other customers of Northwestern Bell Corp. alleged that Northwestern Bell had Furnished cash and tickets for air travel, plays, and sporting events and had offered employment to members of the Minnesota Public Utilities Commission in exchange for favorable treatment in rate cases before the commission. A Minnesota statute makes it a felony to bribe public officials. H. J. and other customers brought suit against Northwestern for violation of the criminal bribery statute. Can the customers bring a criminal action?
Answer:
The private cause of action cannot come under the criminal statute. Thus, customers cannot bring the criminal action.
Explanation:
Bribery is an act of providing monetary or non-monetary benefits to an individual in order to influence his decision in one's favor. Bribery is a white collar crime.
The plaintiff are civilians therefore, the action which was alleged under bribery statute of criminal law do not provide any private remedies as it contains no provision for such remedies. Bribery under common law also do not have any cause of action in Minnesota state. Under the Criminal law, the civil action can only be taken if it appears that it was the legislative intent. Since, there was no legislative intent to provide civil cause of action in criminal statute, the customer cannot bring the criminal action.
You purchased 4,400 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $45.50 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 1 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 5 percent during 2016, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return from this investment? (Assume that the operating expense is netted against the fund’s return.)
Answer:
Total return is -2.24%
Explanation:
Calculation of the initial NAV
Initial NAV = Offering price * (1-% of front end load)
Initial NAV = $45.50 * (1 - 5%)
Initial NAV = $45.50 * 0.95
Initial NAV = $43.225
Calculation of the final NAV
Final NAV = Initial NAV * (1 + (Appreciation rate - Operating expenses ratio)
Final NAV = $43.225* (1 + (5% - 1.05%))
Final NAV = $43.225 * 1 + 0.0395
Final NAV = $43.225 * 1.0395
Final NAV = $44.9323875
Calculation of the sales proceeds per share
Sales proceeds per share = Final NAV * (1 - % of back end load)
Sales proceeds per share = $44.9323875 * ( 1 - 1%)
Sales proceeds per share = $44.483063625
Calculation of the total return
Total return = (Sales proceeds per share - Offering price) / Offering price
Total return = ($44.483063625 - $45.50) / $45.50
Total return = -2.24%
Civil liberties in Latin America vary. This means that __________. A. everyone across the region has the same civil liberties B. some people have more civil liberties than others C. people in Latin America have no civil liberties D. people in Latin America have the same civil liberties as people in the US
Answer:
Civil liberties in Latin America vary. This means that __________. A. everyone across the region has the same civil liberties B. some people have more civil liberties than others C. people in Latin America have no civil liberties D. people in Latin America have the same civil liberties as people in the US = Answer Is B
Explanation:
Some People Do Have More Rights That Others, Due To Capitalism, And Racism, And Think The Whites Are Most Important, Even Though Some "Not American" People Helped Form What Is Today, I Must Stop Know Before I Start Talking About All That
Answer:
b btw
Explanation:
