The approximate annual per capita spending for personal consumption is approximately $33,548.39. Spending per capita at constant prices accounts for both population growth and inflation.
Given,
Total personal consumption spending = $10.4 trillion
Population = 310 million
Required to calculate the approximate annual per capita spending for personal consumption =?
Per Capita Spending = Total Spending / Population
Per Capita Spending = $10.4 trillion / 310 million
Per Capita Spending = $10.4 trillion / 310 million
Per Capita Spending = $33,548.39
Therefore, the per capita spending is $33,548.39.
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Final answer:
The approximate annual per capita spending for personal consumption is $33,548.39, calculated by dividing the total personal consumption expenditures of $10.4 trillion by the population of 310 million people.
Explanation:
To determine the approximate annual per capita spending for personal consumption, we divide the total personal consumption expenditures by the population. The total expenditure is $10.4 trillion, which includes spending on durable goods ($1.7 trillion), nondurable goods ($2.4 trillion), and services ($6.2 trillion). With a population of 310 million people:
Per capita spending = Total spending / Population = $10.4 trillion / 310 million = $33,548.39 per person, approximately.
This figure indicates how much each person, on average, would have spent on goods and services in that year.
Another bank is also offering favorable terms, so Van decides to take a loan of $23,000 from this bank. He signs the loan contract at 13.00% compounded daily for four months. Based on a 365-day year, what is the total amount that Van owes the bank at the end of the loan’s term? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $24,017.91 $24,858.54 $24,978.63 $25,458.98
Answer:
Ans. The total amount that Van owes the bank at the end of the loan’s term is A) 24,017.91
Explanation:
Hi, first, let´s do what the hint of the problem says. Let´s find the number of days.
[tex]NumberDays=\frac{4}{12} *365=121.6667 Days[/tex]
Then, we have to turn that compounded daily rate to an effective daily rate, that is by dividing the rate by 365.
[tex]EffectiveDaily=\frac{0.13}{365} =0.000356164[/tex]
This means that 13% compounded daily is equal to 0.0356164%
Now, we can use the following equation to find the future value (in 4 months) of this obligation.
[tex]FutureValue=PresentValue(1+r)^{n}[/tex]
Where:
r= Effective rate of the loan (in our case, effective daily)
n= days to pay the loan (121.6667 days)
The math to this as follows.
[tex]FutureValue=23,000(1+0.000356164)^{121.6667}[/tex]
[tex]FutureValue=24,018.39[/tex]
Since I used the whole decimals to find the exact value, my result is close to answer A), therefore, total amount that Van owes the bank at the end of the loan’s term is $24,017.91.
Best of luck
Each of the following statements describes how the political and legal environment encourages productivity EXCEPT: A. Well-defined property rights encourage production and saving.
B. Political stability promotes economic growth.
C. Price changes in markets provide suppliers incentives to supply goods to markets.
D. Pay rates determined by a governmental planning agency provide workers with the incentive to work hard.
The statement 'D. Pay rates determined by a governmental planning agency provide workers with the incentive to work hard' does not necessarily relate to how the political and legal environment enhances productivity, as it implies government control over pay rates, unlike the others which encourage productive activities.
Explanation:Each statement here refers to how the political and legal environment can enhance productivity, with one exception: D. Pay rates determined by a governmental planning agency provide workers with the incentive to work hard. This is the exception because it implies government control over pay rates, which may not necessarily promote productivity. In contrast, factors like well-defined property rights, political stability, and price changes in markets typically encourage productivity by establishing a conducive environment for economic activities. For instance, well-defined property rights give individuals the confidence to invest in their property, knowing it is safe from arbitrary seizure. Political stability gives businesses a stable environment to operate, whilst varying prices respond to supply and demand, thereby encouraging suppliers.
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The exception to how a political and legal environment fosters productivity is when pay rates are determined by a governmental planning agency.This pivotal role doesn’t always offer the necessary incentives to drive the employees working in an economy to increase productivity.
Explanation:The statement that does not describe how the political and legal environment encourages productivity is (D) Pay rates determined by a governmental planning agency provide workers with the incentive to work hard. This is because centrally planned economies, where pay rates are set by a governmental planning agency, often provide less incentive for workers to increase productivity. Workers know they will receive the same pay regardless of how much effort they put into their work, potentially discouraging them from working hard. While the government can provide motivation for work through other means, the statement as is does not encourage an increase in productivity, unlike A, B, and C which all promote economic efficiency and growth.
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The trial balance for Swifty Corporation appears as follows:
Swifty Corporation
Trial Balance
December 31, 2017
Cash $250
Accounts Receivable 428
Prepaid Insurance 67
Supplies 148
Equipment 3280
Accumulated Depreciation, Equipment $490
Accounts Payable 315
Common Stock 980
Retained Earnings 1150
Service Revenue 2468
Salaries and Wages Expense 820
Rent Expense 410 0
$5403 $5403
If, on December 31, 2017, supplies on hand were $33, the adjusting entry would contain a:
Answer:
Explanation:
The adjusting entry for supplies is shown below:
Supplies expense A/c Dr $115
To supplies A/c $115
(Being adjusted entry recorded)
The trial balance show a supplies balance of $148 and the supplies on hand were $33, so the adjusted supply balance would be equal to
= Supplies balance - supplies on hand
= $148 - $33
= $115
Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. At present, Iowa produces 20 million bushels of wheat and 120 million bushels of corn, while Nebraska produces 20 million bushels of corn and 120 million bushels of wheat.
...
Explain how, with trade, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn while Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat.
Explanation:
Iowa's opportunity cost of producing 1 bushel of wheat is
= 3 bushels of corn
Nebraska's opportunity cost of producing 1 bushel of wheat is
= [tex]\frac{1}{3}[/tex]
= 0.33 bushels of corn
Iowa's opportunity cost of producing 1 bushel of corn is
= [tex]\frac{1}{3}[/tex]
= 0.33 bushels of wheat
Nebraska the opportunity cost of producing 1 bushel of corn is
= 3 bushels of wheat
Nebraska has a comparative advantage in producing wheat and Iowa has a comparative advantage in producing corn.
If both countries start to produce the commodity they have a comparative advantage in producing, both will gain from trade.
Iowa can give up producing 20 million bushels of wheat and instead produce additional
= 20 × 3 = 60 million bushels of corn
Similarly, Nebraska can give up producing 20 million bushels of corn and instead produce additional
= 20 × 3 = 60 million bushels of wheat
So now Iowa can produce 180 million bushels of corn no wheat and Nebraska can produce 180 million bushels of wheat and no corn.
If they trade, Nebraska can trade 120 million bushels of wheat for 60 bushels of corn. With this trade, Nebraska will end up with 120 million bushels of corn and 60 million bushels of wheat and Iowa will end up with 60 million bushels of corn and 120 million bushels of wheat.
With trade, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn while Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat by specializing in the goods that have lower opportunity costs for each state and then trading with each other.
Explanation:Opportunity cost is the value of the next best alternative that is forgone when making a decision. In the scenario given, Iowa and Nebraska have different opportunity costs for producing corn and wheat. The opportunity cost of producing 1 bushel of wheat for Iowa is 3 bushels of corn, while for Nebraska, the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat.
Given this information, with trade, both states can specialize in producing the good that has a lower opportunity cost for them and then trade with each other. Iowa should specialize in producing corn because its opportunity cost of corn is lower than that of Nebraska, and Nebraska should specialize in producing wheat because its opportunity cost of wheat is lower than that of Iowa.
Through trade, Iowa can swap some of its corn for Nebraska's wheat, and Nebraska can swap some of its wheat for Iowa's corn. This way, both states can end up with a larger quantity of the good they specialize in. So, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn, and Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat.
Which of the following pieces of information could be deleted from a 15-second Public Service Announcement on drinking water safety? A. The city water supply is contaminated. B. Paul Lining has been named Director of Public Works. C. The "boil water" edict is in force until further notice. D. Water should be boiled before it is used or consumed.
Answer:
B. Paul Lining has been named Director of Public Works.
Explanation:
If we need to advertize the most important information to the public, the nthe director of publc works are unnecessary information for the public.
They need to know that it is a metter of highly importance to boil water before consumption and why.
Answer:
The correct answer is letter "B": Paul Lining has been named Director of Public Works.
Explanation:
For a 15-second Public Service Announcement on drinking water safety, the conditions of how water should be drunk must be pointed out. Consequences of not doing that and factual data supporting those ideas could be ideal to draw peoples' attention and to generate an immediate change in their habits. Informing who is the new chief of that service seems irrelevant for that purpose.
Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.
Using the double-declining balance method, the book value at December 31, 2016 would be
Answer:
Using the double-declining balance method, the book value at December 31, 2016 would be $ 46.944
Explanation:
Depreciation rate = 1/useful life *100 = (1/10) * 100
2015 2016
Cost 73350 58.680
Rate 20% 20%
Dep 14.670 11.736
Book value 58.680 46.944
Molteni Motors Inc. recently reported $3 million of net income. Its EBIT was $6.75 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by 1 − T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
Answer:
Interest= $1750000
Explanation:
We know that:
EBIT
interest (-)
=earnings before taxes
tax (-)
=Net profit
EBIT= 6750000
Interest= ?
t= 0,40
Net profit= 3000000
interest= [netprofit/(1-t)]- EBIT
interest= (3000000/0,60)-6750000
interest= 1750000
Tax=(EBIT-interest)*0,35= 2000000
The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $12,960 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $4,000 and direct labor cost of $2,800. Therefore, the company's overhead application rate is:
Final answer:
The overhead application rate for the manufacturing company can be calculated as approximately $3.20 per dollar of direct labor cost.
Explanation:
The overhead application rate is calculated by dividing the total estimated overhead costs by the total estimated direct labor cost. In this case, the Work in Process Inventory account has a debit balance of $12,960. The cost sheet for the job still in progress shows direct material cost of $4,000 and direct labor cost of $2,800.
To calculate the overhead application rate:
Overhead Application Rate = Total Estimated Overhead Costs / Total Estimated Direct Labor Cost
Since the Work in Process Inventory account has a debit balance, we can assume it includes both direct material and direct labor costs. Therefore, we can calculate the total estimated direct labor cost for the job still in process:
Total Estimated Direct Labor Cost = Debit Balance of Work in Process Inventory Account - Direct Material Cost
Substituting the values into the formula, we have:
Overhead Application Rate = $12,960 - $4,000 / $2,800
Simplifying, we get:
Overhead Application Rate = $8,960 / $2,800
Therefore, the company's overhead application rate is approximately $3.20 per dollar of direct labor cost.
Nicola borrows 50000 dollars from a bank that charges interest at an annual rate of 8 percent, compounded monthly. Calculate the monthly payment that Nicola would have to make in order for the loan to be paid off after exactly 25 years. (Give your answer, in dollars, to the nearest cent. You should not include the dollar sign or any commas in your answer.)
Answer: $387.23
Explanation:
Given that,
Borrowed from bank, P = $50,000
Annual interest rate, r = 8% = 0.08
Monthly rate of interest = [tex]\frac{0.08}{12}[/tex]
= 0.0067
Tenure(period), n = 25 years = 25 × 12
= 300 months
[tex]Monthly\ Installments=\frac{P\times r\times (1+r)^{n}}{[(1+r)^{n}-1]}[/tex]
[tex]Monthly\ Installments=\frac{50,000\times 0.0067\times (1+0.0067)^{300}}{[(1+0.0067)^{300}-1]}[/tex]
[tex]=\frac{50,000\times0.0067\times7.413453}{7.413453-1}[/tex]
[tex]= \frac{2,483.50676}{6.413453}[/tex]
= 387.23
Therefore, the required monthly payment is $387.23
Final answer:
Nicola needs to make a monthly payment of approximately $416.12 for 25 years to pay off a $50,000 loan with an 8% annual interest rate compounded monthly.
Explanation:
To calculate the monthly payment that Nicola would have to make to pay off the $50,000 loan after exactly 25 years at an annual interest rate of 8% compounded monthly, we will use the present value of an annuity formula. The monthly interest rate is 0.08 (annual rate) divided by 12 (months), which equals 0.00666667. The number of payments over 25 years is 25 years times 12 months, equalling 300 payments.
The formula for the present value of an annuity, which tells us the payment amount per time period, is:
PV = PMT ×
When rearranged to solve for PMT (the payment amount), it becomes:
PMT = PV ×
Substitute the values we have:
PMT = $50,000 ×
After performing the calculations, the monthly payment comes to approximately $416.12. Thus, Nicola would have to pay around $416.12 per month for 25 years to pay off the compounded interest loan.
A product may be made using machine I or machine II. The manufacturer estimates that the monthly fixed costs of using machine I are $18,000, whereas the monthly fixed costs of using machine II are $15,000. The variable costs of manufacturing 1 unit of the product using machine I and machine II are $10 and $20, respectively. The products sell for $50 each. What is the maximum profit if the projected sales are 650 units
Answer:
maximum profit is $8000 if sales from machine 1
Explanation:
given data
monthly fixed costs machine 1 = $18000
monthly fixed costs machine 2 = $15000
variable costs by machine 1 = $10
variable costs by machine 2 = $20
products sell = $50 each
to find out
What is the maximum profit if the projected sales are 650 units
solution
we consider here no of machine sold = x
and we know total Cost = Fixed Cost + Variable Cost
so for machine 1 cost = 18000 + 10x
for machine 2 cost = 15000 + 20x
here x we have given 650 machine sold so
for machine 1 cost = 18000 + 10(650) = $24500
for machine 2 cost = 15000 + 20(650) = $28000
we know products sell for $50 each
so earn for 650 = $32500
so profit from machine 1 = $32500 - $24500 = $8000
so profit from machine 2 = $32500 - $28000 = $4500
so maximum profit is $8000 if sales from machine 1
Final answer:
By calculating the profits using Machine I and Machine II, the maximum profit is achieved with Machine I, totaling $8,000.
Explanation:
To determine the maximum profit with projected sales of 650 units, we need to calculate the total cost and total revenue for producing 650 units with both Machine I and Machine II, then find the profit (Revenue - Cost) for each scenario to identify the higher profit.
Machine I
Fixed Costs: $18,000Variable Cost per unit: $10Total Variable Cost: $10 * 650 = $6,500Total Cost: Fixed Costs + Total Variable Cost = $18,000 + $6,500 = $24,500Total Revenue: $50 * 650 = $32,500Profit: Total Revenue - Total Cost = $32,500 - $24,500 = $8,000Machine II
Fixed Costs: $15,000Variable Cost per unit: $20Total Variable Cost: $20 * 650 = $13,000Total Cost: Fixed Costs + Total Variable Cost = $15,000 + $13,000 = $28,000Total Revenue: $50 * 650 = $32,500Profit: Total Revenue - Total Cost = $32,500 - $28,000 = $4,500The maximum profit of $8,000 is achieved with Machine I.
Exercise 3-14 Presented below is information related to Pronghorn Corporation for the month of January 2017. Cost of goods sold $192,390 Salaries and wages expense $65,800 Delivery expense 7,620 Sales discounts 8,440 Insurance expense 11,850 Sales returns and allowances 12,030 Rent expense 18,830 Sales revenue 319,900 Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Explanation:
The closing entry for the following accounts are shown below:
1. Sales Revenue A/c Dr $319,900
To Income Summary $319,900
(Being revenue account closed)
2. Income summary A/c Dr $316,960
To Cost of goods sold $192,390
To Delivery Expense $7,620
To Salaries and Wages Expense $65,800
To Insurance Expense $11,850
To Sales returns and allowances $12,030
To Rent Expense $18,830
To Sales discounts $8,440
(Being expenses accounts are closed)
3. Income summary A/c Dr $2,940 ($319,900 - $316,960)
To Retained earning $2,940
(Being the difference is credited to retained earning)
Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year: Work in Process, January 1 $ 53,200 Work in Process, December 31 38,600 Direct materials used 14,100 Total Factory overhead 7,100 Direct labor used 28,100
The total manufacturing costs of Singing Dolls, Inc. for the year is $49,300, calculated by adding the Direct materials used ($14,100), the Total factory overhead ($7,100) and the Direct labor used ($28,100). The Work in Process amounts are not included in this calculation.
Explanation:The total manufacturing costs incurred by Singing Dolls, Inc. during the year can be calculated by summing up the Direct materials used, the Total factory overhead, and the Direct labor used. This gives us:
Direct materials used: $14,100
Total Factory overhead: $7,100
Direct labor used: $28,100
Adding these together, we obtain the total manufacturing cost: $14,100 + $7,100 + $28,100 = $49,300
It's important to note the Work in Process amounts (January 1: $53,200 and December 31: $38,600) are not included in this calculation as these represent unfinished goods and are not part of the total manufacturing costs incurred during the year.
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The total manufacturing costs incurred by Singing Dolls, Inc. during the year are calculated by adding together the direct materials used, direct labor used, and factory overhead. This results in a total of $49,300.
Explanation:The total manufacturing costs incurred during a year by Singing Dolls, Inc. can be calculated by adding together the direct materials used, total factory overhead, and direct labor used.
So, the formula is as follows:
Direct materials used = $14,100 Direct labor used = $28,100 Total factory overhead = $7,100Therefore, by adding these three amounts
Total manufacturing costs = Direct materials used + Direct labor used + Total factory overhead
Total manufacturing costs = $14,100 + $28,100 + $7,100
The Total manufacturing costs incurred by Singing Dolls, Inc. during the year is $49,300.
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Short-term financing transactions commonly occur in the:
A. primary markets.
B. secondary markets.
C. capital markets.
D. money markets
Answer:
The correct option is (D)
Explanation:
Short-term debt instruments are traded in money market that have maturity ranging from one day to one year. Some examples of money market instruments are certificate of deposits and treasury bills that have low risk and low returns.
Primary markets are where securities are traded for the first time. Buying and selling or already traded stock is done in secondary market. Capital markets deal with long-term securities. So, these options are incorrect.
Short-term financing is carried out in in money markets.
Brick Co. has 170,000 shares of common stock outstanding at January 1, 2015. On May 1, 2015, it issued 30,000 additional shares of common stock. Outstanding all year were 12,000 shares of convertible cumulative preferred stock. Each share of the convertible preferred stock, which was dilutive in 2015, is convertible into one share of Brick’s common stock. What is the number of shares that Brick should use to calculate 2015 diluted earnings per share
Answer:
The number of shares that Brick should use to calculate 2015 diluted earnings per share are 202,000 shares
Explanation:
The computation of the number of shares are shown below:
= January 1 shares + may 1 shares + convertible cumulative preferred stock
= 170,000 shares × 4 months ÷ 12 months + 200,000 shares × 8 months ÷ 12 months + 12,000 shares
= $56666.67 + $133,333.33 + $12,000
= $202,000 shares
The 4 months are calculated from January 1 to May 1, 2015
And, the 8 months are calculated from May 1 to December 31
Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expected to be $4,000.
Calculate depreciation expense using the straight-line method for 2018 and 2019, assuming a December 31 year-end. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)
Answer:
2018: 8 months
Depreciation= $916,67
2019: full year
Depreciation= $1375
Explanation:
Giving the following information:
Taco Hut purchased equipment on May 1, 2018.
Price: $15,000.
Residual value: $4,000
Useful life: 8 year
We need to calculate the depreciation for 2018 and 2019 using straight-line method:
Depreciation= (purchase price- residual value)/useful life
Depreciation= (15000-4000)/8= $1375
2018: 8 months
Depreciation=(1375/12)*8= 916,67
2019: full year
Depreciation= $1375
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $335,000; Cash paid for rent, $39,000; Cash paid to employees for services rendered during the year, $119,000; Cash paid for utilities, $49,000. In addition, you determine that customers owed the company $59,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,900 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
Answer:
The accrual net income for the year is $204,600
Explanation:
The computation of the accrual net income for the year is shown below:
Net income = Revenue - expenditure
where,
Revenue = Cash collected from customers + customers owed at the end of the year
And, the expenditure = Cash paid for rent + Cash paid to employees for services rendered during the year + Cash paid for utilities + gas and electric expenses
Now put these values to the above formula
So, the answer would be equal to
= Cash collected from customers + customers owed at the end of the year - Cash paid for rent - Cash paid to employees for services rendered during the year - Cash paid for utilities - gas and electric expenses
= $335,000 + $59,000 - $19,500 - $119,000 - $49,000 - $1,900
= $204,600
The rent payment is given for two years but we have to compute for the one year only
So, rent payment = $39,000 ÷ 2 = $19,500
Which one of the following best describes the term "efficient market"?A) The commissions on large transactions are smaller than the commissions on small transactions.B) New information is quickly reflected in security prices.C) Little time and effort are spent on marketing securities to the public.D) The cost of receiving, processing, executing, and reporting securities orders is small.
Answer: Option B
Explanation: In simple words, the market in which the price of the securities reflect all the information that is relevant to the the investor is called an efficient market. No investor can beat such markets as no security is undervalued or overvalued.
This accuracy in pricing could only be maintained when all the participants are fully aware of new information which is possible only if the information is quickly spread in the market.
Hence the correct option is B.
Weekly Company gathered the following information for the year ended December 31:Direct labor cost incurred for the year$ 180 comma 700Estimated manufacturing overhead costs$ 274 comma 300Estimated direct labor cost $ 219 comma 800Work in process inventory, Dec, 31$ 51 comma 700Finished goods inventory, Dec. 31$ 66 comma 000Cost of goods sold$ 141 comma 300Estimated direct labor hours 260 comma 500What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?
Answer:
predetermined manufacturing overhead rate $1.23
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
We will distribute the expected overhead cost along a cost driver.
In this case we are asked to use direct labor cost:
estimated overhead 270,300
estimated labor 219,800
overhead rate = 270,300 / 219,800 = 1,229754 = 1.23
Sheridan Company has $3080000 of short-term debt it expects to retire with proceeds from the sale of 87000 shares of common stock. If the stock is sold for $25 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?
Answer: $2,175,000
Explanation:
Given that,
short-term debt it expects = $3,080,000
sale of common stock = 87000 shares
stock sold = $25 per share
Short-term debt could be excluded from current liabilities = 87,000 shares × $25 per share
= $2,175,000
Therefore, the amount $2,175,000 of short term debt have to be excluded from current liabilities.
Papa Roach Exterminators, Inc., has sales of $699,000, costs of $385,000, depreciation expense of $47,000, interest expense of $25,000, and a tax rate of 30 percent. If the firm paid out $80,000 in cash dividends. What is the addition to retained earnings?
Answer:
The addition to retainer earnings is $ 169400.
Explanation:
note: $ 699000 - $385000 - $47000 - $ 25000 = $ 242000
addtion to the retainer earnings = $ 699000 - $385000 - $47000 - $ 25000 - 30%*242000
= $ 169400
Therefore, the addition to retainer earnings is $ 169400.
The addition to retained earnings is $89,400.
Explanation:The addition to retained earnings can be calculated by subtracting the total expenses from the net income before taxes.
Net income before taxes = Sales - Costs - Depreciation - Interest expense.
Using the given figures:
Net income before taxes = $699,000 - $385,000 - $47,000 - $25,000 = $242,000.Tax expense = Tax rate * Net income before taxes = 0.30 * $242,000 = $72,600.Net income after taxes = Net income before taxes - Tax expense = $242,000 - $72,600 = $169,400.Addition to retained earnings = Net income after taxes - Cash dividends = $169,400 - $80,000 = $89,400.Therefore, the addition to retained earnings is $89,400.
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In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provide above. Erin invests $50,000 for a one-fifth interest in the total capital of $230,000. What are the capital balances of Jacob and Katy after Erin is admitted into the partnership?
Jacob Katy
A. $142,400 $41,600
B. $142,000 $42,000
C. $140,000 $40,000
D. $137,600 $38,400
Answer:
D. $137,600 $38,400
Explanation:
As for the provided information, we have,
Total capital = $230,000
1/5th of this capital = $230,000/5 = $46,000
therefore, goodwill not recorded = $50,000 - $46,000 = $4,000
For this capital of Jacob and Katy will be debited.
Jacob = $4,000 [tex]\times[/tex] 3/5 = $2,400
Kathy = $4,000 [tex]\times[/tex] 2/5 = $1,600
Therefore, capital balances of Jacob and Kathy shall be:
Jacob = $140,000 - $2,400 = $137,600
Kathy = $40,000 - $1,600 = $38,400
During the Obama administration, the development of low-cost batteries for electric cars received large amounts of federal funding in terms of subsidies. Meanwhile, American households gave a higher priority towards minimizing their environmental impact. Consider the market for zero-emissions electric vehicles where there is an upward-sloping supply curve and a downward-sloping demand curve. Which direction will demand and supply shift? Both curves will shift left. Both curves will shift right. Demand will shift right and supply will shift left. Demand will shift left and supply will shift right. What will happen to the equilibrium price? Change is ambiguous. Price decreases. Price remains constant. Price increases. What will happen to the equilibrium quantity? Quantity remains constant. Quantity increases. Quantity decreases. Change is ambiguous
Answer:
The demand and supply curve will both shift to the right.
The change in price is ambiguous.
The quantity will increase.
Explanation:
As the government provides subsidies to zero-emission vehicles. The cost of production for such vehicles producing firms will decline. This will cause an increase in supply as the firms will be able to produce more at the same cost. This will cause an increase in supply shown by a rightward shift in the supply curve.
As there is a higher priority among households to reduce their environmental impact. They will demand more of these vehicles. This will cause an increase in demand indicated by a rightward shift in the demand curve.
The rightward shifts in both demand and supply curve will cause an increase in the equilibrium quantity of the commodity.
The change in price level depends upon the extent of the increase in demand and supply.
The demand and the supply for zero-emissions electric vehicles will both shift right due to federal funding for low-cost battery development and households' environmental priorities. This results in an ambiguous effect on equilibrium price but generally leads to an increase in equilibrium quantity.
Explanation:Considering the market for zero-emissions electric vehicles with an upward-sloping supply curve and a downward-sloping demand curve, the influx of federal funding targeted at developing low-cost batteries for electric cars would likely increase the supply of these vehicles, shifting the supply curve to the right. Concurrently, as American households prioritize minimizing their environmental impact, the demand for zero-emissions electric vehicles will increase, hence the demand will shift to the right.
As both the demand and the supply curves shift to the right, the effect on equilibrium price is ambiguous without further information about the magnitude of the shifts. However, the increase in both supply and demand generally leads to a higher equilibrium quantity, provided the shifts are of similar scales.
Jeremy is an effective leader who is capable of helping his subordinates complete their tasks. However, he is considered intimidating by some of his team members and is often unable to boost the group's morale. Jeremy feels that since his strengths are task oriented, management should place him as the leader of team members who need task-related guidance. Jeremy is a strong believer of which leadership theory or approach?
Answer:
Transactional leadership style
Explanation:
Transactional leadership style is where the leader is focused on the overall goals of the company and getting things done instead of building a more long term social relationship. The leader is focused on a more professional relationship which benefits all the involved parties in such a way that is limited to the company only.
Inventory records for Marvin Company revealed the following:
Date Transaction Number
of Units Unit
Cost
Mar. 1 Beginning inventory 990 $7.25
Mar. 10 Purchase 570 7.73
Mar. 16 Purchase 710 8.20
Mar. 23 Purchase 520 8.60
Marvin sold 1,900 units of inventory during the month. Cost of goods sold assuming FIFO would be
Answer: $14371.6
Explanation:
Given that,
According to FIFO method,
Marvin sold = 1,900 units of inventory during the month
Cost of Beginning inventory = 990 × $7.25
= $7177.5
on Mar. 10
Cost of Purchase = 570 × $7.73
= $4,406.1
Remaining purchases = Total units sold - Beginning inventory - number of units purchase on mar 10
= 1,900 - 990 - 570
= 340 units
Cost of remaining purchases = 340 units × $8.2
= $2,788
Total cost of goods sold = Cost of Beginning inventory + Cost of Purchase + Cost of remaining purchases
= $7177.5 + $4,406.1 + $2,788
= $14371.6
The cost of goods sold (COGS) using the FIFO method for the Marvin Company, given the inventory records and sale of 1900 units, would be $14371.60.
Explanation:The subject of this question pertains to inventory management, specifically the calculation of Cost of Goods Sold (COGS) using the First-In, First-Out (FIFO) method. In the FIFO method, it is assumed that the oldest items in inventory are sold first. The calculation would go as follows:
Begin by selling the items from the beginning inventory, 990 units at $7.25 each, costing ($7.25 x 990) = $7177.50. Then sell from the Mar. 10 purchase, 570 units at $7.73 each, costing ($7.73 x 570) = $4406.10. Next, sell from the Mar. 16 purchase. However, since we've already sold 990+570=1560 units, and we need to sell 1900 units in total, we still need to sell 1900-1560 = 340 units. These are sold at $8.20 each, costing ($8.20 x 340) = $2788.00.
Adding up all these costs, the total Cost of Goods Sold (COGS) using the FIFO method is $7177.50 + $4406.10 + $2788 = $14371.60.
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You want to borrow $86,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,500, but no more. Assuming monthly compounding, what is the highest APR you can afford on a 72-month loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The highest APR you can afford for a 72-month loan with a borrowed amount of $86,000 and a monthly payment limit of $1,500 can be calculated with an algebraic formula. The formula allows you to numerically solve for the highest monthly rate you can afford which is then multiplied by 12 to find the annual rate.
Explanation:To solve this problem, you can use the formula for the monthly payment of a loan, which is: P = [rPV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate (annual interest rate / 12), PV is the present value of the loan, and n is the number of payments (month).
The algebraic solution returned by this formula allows you to solve for r indicating the highest monthly interest rate you can afford. Substituting the provided values from the problem, $1,500 = [r*86,000] / [1 - (1 + r)^-72], you can solve this equation for r numerically, for instance, by using a tool or calculator that performs iterative calculations.
Remember, the rate returned will be a monthly rate. You can multiply this by 12 to get an annual rate. This rate is the maximum APR you can afford for a loan using these conditions.
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Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 20 percent to $480 million. Current assets, fixed assets, and short-term debt are 20 percent, 70 percent, and 10 percent of sales, respectively. Charming Florist pays out 20 percent of its net income in dividends. The company currently has $125 million of long-term debt and $53 million in common stock par value. The profit margin is 15 percent.
a. Prepare the current balance sheet for the firm using the projected sales figure.
b. Based on Ms. Colby’s sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year?
c-1. Prepare the firm’s pro forma balance sheet for the next fiscal year.
c-2. Calculate the external funds needed.
A balance sheet is a fiscal report that gives a preview of an organization's monetary situation by summing up its resources, liabilities, and investors' value at a particular moment.
a. Current Asset report (Projected Deals: $480 million):
Current Resources:
Cash: $96 million (20% of $480 million)
Records of sales: $96 million (20% of $480 million)
Stock: $96 million (20% of $480 million)
All out Current Resources: $288 million
Fixed Resources: $336 million (70% of $480 million)
All out Resources: $624 million
Current Liabilities:
Momentary Obligation: $48 million (10% of $480 million)
Long haul Obligation: $125 million
Normal Stock: $53 million
All out Liabilities and Value: $624 million
b. External Funds Needed = (Projected Complete Resources - Current All out Liabilities and Value) - (Introductory All out Resources - Starting Absolute Liabilities and Value)
Outside Assets Required = ($624 million - $624 million) - ($480 million - ($125 million + $53 million))
Outside Assets Required = $0 - $302 million
= - $302 million (No outer assets required)
c-1. ro Forma Balance Sheet (Projected Deals: $480 million):
(Utilizing the determined qualities from section a.)
c-2. External Funds Needed:
As determined to some extent b, no outside reserves are required (- $302 million). The organization's projected development can be supported utilizing inward assets.
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The current balance sheet is prepared based on given ratios and Dahlia Colby's sales projection. In the next fiscal year, the firm's pro forma balance sheet is presented with additional retained earnings. Based on the difference between total assets and current liabilities, the external funds required for the Charming Florist can be determined.
Explanation:a. To prepare the current balance sheet using the projected sales figures, we will perform the following calculations:
Current assets: 0.20 × $480 million = $96 millionFixed assets: 0.70 × $480 million = $336 million Short-term debt: 0.10 × $480 million = $48 millionb. The net income of Charming Florist is determined by the profit margin which is 15% of the sales, making it $72 million (0.15 × $480 million). Dividends payout is 20% of the net income, therefore, $14.4 million (0.20 × $72 million) is paid out in dividends. This leaves $57.6 million (72 - 14.4) as an addition to retained earnings. To calculate the external funds needed, subtract this figure and the short-term debt from the total of current and fixed assets.
c-1. A pro forma balance sheet for the next fiscal year would look something like this:
c-2. Depending upon the exact current retained earnings, the required external financing can alter. But theoretically, if everything is the same, it can be calculated as Total Assets (i.e. Current and Fixed Assets) - (Short-term debts + Long-term debts + Common Stock + Retained Earnings).
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Which of the following best represents a walkthrough a. The controller reviews the bank reconciliation prepared by the accountant and its resulting journal entries b. The auditor walks the production line to find inefficiencies in the inventory process and reports them to management c. The controller takes a sample of recorded write-offs to ensure they have been properly approved d. The auditor traces three purchasing transactions from the purchase order to the financial statement for observation and understanding.
Final answer:
Option d, where the auditor traces transactions from purchase order to financial statements, best represents a walkthrough, as it involves a comprehensive review of a process to ensure accuracy and effectiveness.
Explanation:
Among the given options, the one that best represents a walkthrough is d. The auditor traces three purchasing transactions from the purchase order to the financial statement for observation and understanding. A walkthrough is a step-by-step review of a process within an organization to assess the effectiveness of internal controls, ensure compliance with policies, and identify any areas of improvement. In this context, the auditor is performing the walkthrough by tracing transactions to understand the purchasing process and verify that it reflects correctly in the financial statements.
Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 6060. What amount of money will be saved by socking away $11 comma 79311,793 per year starting at age 2929 with aa 66% annual interest rate. Will you achieve your goal using the long-term savings plan? What amount of money will be saved by socking away $27 comma 18627,186 per year starting at age 4040 at the same interest rate? Will you achieve your goal using the short-term savings plan?
Answer:
In both cases you will reach $1 million in savings
Explanation:
Giving the following information:
Suppose your goal is to save $1 million by the age of 60.
1) What amount of money will be saved by socking away $11,793 per year starting at age 29 with a 6% annual interest rate?
We need to use the final value formula with an annual deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {11793*[(1.06^31)-1]}/0.06= $1,000,066.18
2)What amount of money will be saved by socking away $27,186 per year starting at age 40 at the same interest rate?
FV= {27186*[(1.06^20)-1]}/0.06
FV= $1,000,053.1
In both the cases, an individual would reach his target of reaching $1 million in savings.
What is savings?Saving is that part of income which is not spent, or postponed consumption. Methods of saving include putting money aside in.
Example:
A deposit account, an investment fund, or as cash. Saving also regards cut back expenditures, such as recurring costs.
Computation of Savings:
(1). If starting at the age of 29 years, the total amount of saving would be:
Given that,
A= Annuity = $11,793,
n = time = 31 years,
r = Rate = 6%.
Now, we have to put here the formula of future value(FV):
[tex]\text{FV} =A \dfrac{(1+i)^n-1}{i}\\\\\\\text{FV} =\$11,793\times \dfrac{(1+6\%)^3^1-1}{6\%}\\\\\\\text{FV} = \$1,000,066.18[/tex]
(2). If starting at the age of 40 years, the total amount of saving would be:
Given that,
A= Annuity = $27,186,
n = time = 20 years,
r = Rate = 6%.
Here also, we have to put here the formula of future value(FV):
[tex]\text{FV} =A \dfrac{(1+i)^n-1}{i}\\\\\\\text{FV} =\$27,186\times \dfrac{(1+6\%)^2^0-1}{6\%}\\\\\\\text{FV} = \$1,000,053.1[/tex]
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Which of the following would increase the government purchases component of U.S. GDP?
A. The U.S. federal government pays $3 billion in pensions to government workers. B. The U.S. federal government pays $3 billion in interest on the national debt. C. The U.S. federal government pays $3 billion in salaries to soldiers in the military. D. The U.S. federal government pays $3 billion in interest to foreign holders of U.S. government bonds.
Answer:
Statement C
The U.S. federal government pays $3 billion in salaries to soldiers in the military.
Explanation:
The purchase component is a part of business investment while calculating the effect on GDP.
Under this all the cost incurred by the companies to produce the goods are included in such costs.
In the given instance, only salary is paid at the time of production, and thus, this will form part of purchase component of GDP.
Amount paid as salary to soldiers in the military is the correct option, as it will increase the purchase component.
Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $954,210 Office expense 219,470 Miscellaneous expense 19,085 Wages expense 458,020 Prepare an income statement for the year ended May 31, 20Y6. Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6
Answer:
Instructions are listed below
Explanation:
An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).
It follows the general structures:
Revenues (+)
Operating Revenue
Non-Operating Revenue
Total
Expenses (-)
Primary Activity Expenses
Secondary Activity Expenses
Total
Gains (+)
Losses (-)
Net income/loss
In this exercise:
Total revenues=$954210
Expenses:
Office expense 219470
Miscellaneous expense 19085
Wages expense 458020
Total Expenses=$696575
Net profit= $275635