Answer:
1) October 1 2015, Cash $39.2million Dr
Notes Payable $39.2million Cr
2) December 31, 2015 Interest expense $0.784million Dr
Interest Payable $0.784million Cr
3) September 30, 2016 Notes Payable $39.2million Dr
Interest Payable $0.784million Dr
Interest Expense $2.352million Dr
Cash $42.336million Cr
Explanation:
1.
When note is issued, liability is credit by the notes value and cash is credited.
2.
The adjusting entry is prepared 3 months after the note is issued so the 3 month's interest on note relates to 2015 and it should be recorded as expense and as it is payable at maturity so interest payable is credited.
3 month interest = 39.2 * 0.08 * 3/12 = 0.784million
3.
The note and interest will be payable that was accrued along with the remaining 9 months interest. Total interest is 39.2 * 0.08 = 3.136million
One recent cost analysis report indicates that electricity from hydroelectric power can be produced for about $0.05 per kWh, while electricity from conventional coal-fired power plants can be produced for an average of about $0.11 per kWh . Calculate the percent change in the cost of electricity for a typical house resulting from a switch between conventional coal-fired power plants to hydroelectric power
Answer:
54.55 %
Explanation:
Cost of electricity used for typical house resulting from coal-fired power plant is
=10900*$0.11 = $1199
Cost of electricity used for typical house resulting from hydroelectric power plant is
=10900*$0.05 = $ 545
Therefore Percent change in cost of electricity for a typical house is
= [(1199 -545)/1199]*100
=54.55 %
A cost analysis report is a report that determines the different cost proposals as well as the cost of the products and services in order to propose the profit of the firm. The analysis report is also used to evaluate the lack of competitiveness and the comparable offers in the marketplace.
The percent change in the cost of electricity is 54.55 %
The cost of electricity used for a typical house resulting from the coal-fired power plant is
[tex]=10900\times\$0.11 = \$1199[/tex]
The cost of electricity used for a typical house resulting from the hydroelectric power plant is
[tex]=10900\times\$0.05 = \$ 545[/tex]
Therefore Percent change in the cost of electricity for a typical house is
[tex]=\frac{1199 -545}{1199} \times100\\&=54.55 \%[/tex]
Therefore, The percent change in the cost of electricity is 54.55 %
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On July 31, 2022, Blossom Company had a cash balance per books of $6,295.00. The statement from Dakota State Bank on that date showed a balance of $7,845.80. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $24.00.
2. The bank collected $1,675.00 from a customer for Blossom Company through electronic funds transfer.
3. The July 31 receipts of $1,349.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $354.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $345.00.
5. Checks outstanding on July 31 totaled $1,988.10.
6. On July 31, the bank statement showed an NSF charge of $730.00 for a check received by the company from W. Krueger, a customer, on account.
Required:
a. Prepare the bank reconciliation as of July 31.
Answer:
Adjusted book/Bank balance = $7,207
Explanation:
Blossom Company
Bank Reconciliation Statement
For the year ended July 31, 2022
Bank balance as per July 31 $7,845.80
Add: Deposit in Transit $1,349.30
Less: Outstanding check $(1,988.10)
Adjusted bank balance $7,207
Cash balance as per July 31 $6,295.00
Add: Collection from EFT $ 1,675.00
Less: Bank service charge $(24.00)
NSF check $(730.00)
Error in bank $(9.00)
Total deduction $(763.00)
Adjusted book balance $7,207
Therefore, the bank balance and book balance have been adjusted through bank reconciliation statement.
Sand Corporation has the following shares outstanding: 10,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3.20 per share cash dividend on the common stock. Two weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividends. b. Prepare the journal entry for the payment of the cash dividends.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dividend Dr, $200,000
To Dividends payable-Preferred Stock $40,000
(10,000 × $4)
To Dividends Payable-Common Stock $160,000
(50,000 × $3.20)
(Being declaration of cash dividends is recorded)
2. Dividends payable - Preferred stock Dr, $40,000
Dividends payable-Common Stock $160,000
To Cash $200,000
(Being payment of cash dividends is recorded)
Based on the information given the appropriate journal entries to record the transactions are:
Sand Corporation journal entries
1. Debit Cash Dividend $200,000
($40,000+$160,000)
Credit Dividend payable-preferred stock $40,000
(10,000 × $4)
Credit Dividend payable-common stock $160,000
(50,000 × $3.20)
(To record declaration of cash dividends )
2. Dividend payable-preferred stock $40,000
(10,000 × $4)
Debit Dividend payable-common stock $160,000
(50,000 × $3.20)
Credit Cash $200,000
($160,000+$40,000)
(To record payment of cash dividends)
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Niles Company granted 111 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $22 per share on January 1, 2015, the grant date of the restricted stock award.When calculating diluted EPS at December 31, 2016, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $22 per share during 2016? (Enter your answer in millions of shares (i.e., 10,000,000 should be entered as 10)
Answer:
The net Increase in the denominator will be $74 millions
Explanation:
According to the given data we have the following:
Total ESOP Granted=$111 million
Total Period (years)=3 years
Period from Jan 1 2015 to Dec 2016=2 years
In order to calculate the Increase in the denominator we would have to make the following calculation:
Increase in the denominator (Shares)=$111 million*(2/3)
Increase in the denominator (Shares)=$74 millions
The net Increase in the denominator will be $74 millions
William and Irene each contributed $20,000 cash to the WI Partnership on January 1 of last year. William and Irene share profits and losses equally. Last year, the partnership reported taxminus−exempt interest income of $4,000. This year, each partner receives $1,000 of the taxminus−exempt interest income in a cash distribution. There are no partnership liabilities and no other income, loss, contributions, or distributions during both years. William's basis in the partnership interest following these transactions is
Answer:
$21,000
Explanation:
Capital Account:
Particular Williams Irene Particular Williams Irene
$ $ $ $
Balance c/d 21,000 21,000 Cash 20,000 20,000
Cash distributn. 1,000 1,000
21,000 21,000 21,000 21,000
William's basis in the partnership business, is equal basis, because, the profit sharing ratio is on equal basis. The answer is $21,000.
Presented below is information related to Sunland CompanyPresented below is information related to Sunland Company. Cost Retail Beginning inventory $131,980 $286,000 Purchases 1,361,000 2,123,000 Markups 95,000 Markup cancellations 15,700 Markdowns 38,400 Markdown cancellations 4,700 Sales revenue 2,216,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory method
Answer:
$238,600
Explanation:
Cost Retail
Beginning inventory $131,980 $286,000
Purchases $1,361,000 $2,123,000
Goods available for sale
$1,492,980 $2,409,000
Add Markups 95,000
Less Markup cancellations (15,700)
($2,409,000+$95,000-$15,700)
Total $1,492,980 $2,488,300
Less Markdowns ($38,400 )
($2,488,300-$38,400) $2,449,900
Add Markdown cancellations $4,700
($2,449,900+$4700) $2,454,600
$1,492,980 $2,454,600
Less Sales revenue ($2,216,000)
($2,454,600-$2,216,000)
Ending Inventory at Retail $238,600
If a firm is currently in a short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision? A. The firm will not change output and earn a higher profit. B. The firm will decrease output to earn a higher profit. C. The firm will not change output but earn a lower profit. D. The firm will increase output but earn a lower profit. If a firm is currently in a short-run equilibrium earning a profit, what impact will an increase in variable factor prices have on its production decision? A. The firm will decrease output to earn a higher profit. B. The firm will not change output but earn a lower profit. C. The firm will not change output and earn a higher profit. D. The firm will decrease output and earn a lower profit.
Answer:
Question 1:
The correct option is "C"
Question 2:
The correct option is "D"
Explanation:
Question 1:
A firm amplifies benefit b comparing minimal income (MR) with peripheral cost (MC). A change in fixed costs like singular amount charge doesn't change MC, in this way firm delivers same yield. Be that as it may, higher fixed cost expands absolute expenses, consequently benefit diminishes.
Question 2:
Increment in factor cost will build MC and increment ATC, along these lines firm will diminish yield and benefit will fall.
On December 18, Intel receives $259,000 from a customer toward a cash sale of $2.59 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.59 million. What journal entries should Intel record on December 18 and January 23
Answer:
Date General Journal Debit Credit
Dec. 18 Cash $259,000
Unearned revenue $259,000
(To record advance receipt of cash)
Jan. 23 Cash (2590000 - 259000) $2,331,000
Unearned revenue $259,000
Sales revenue $2,590,000
(To record cash sale)
Jan. 23 Cost of goods sold $1,590,000
Inventory $1,590,000
(To record cost of goods sold)
A hotel has an average daily rate (ADR) of $50, fixed costs for each of the 2,200 rooms sold during the month of $15, and a variable cost percentage of 20%. Its contribution margin is:
Answer:
$10
Explanation:
he contribution margin is calculated by subtracting variable costs from selling price.
i.e., selling price- variable cost = contribution margin per unit
in this case
selling price is $50
variable cost
= 20/100 x 50
=0.2 x 50
=$10
contribution margin = $50- $10
=$40
If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $
Answer:
600,000
Explanation:
Answer:
The company will be required to earn a net income of $600,000.
Explanation:
The return on investment shows the relation between the net income and the investment.
In the case when there is a high return on investment so the gain on investment should be favorable to its cost.
The following formula should be used to determine the net income.
As we know that
Return on investment = Net income ÷ investment made
30% = Net income ÷ $2,000,000
So, the net income is
= $2,000,000 × 30%
= $600,000
Hence, we can conclude that the company will be required to earn a net income of $600,000.
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Which one of the following is a way to improve the S/Q rating of branded pairs produced at a particular production facility? Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials) Avoiding the use of overtime Increasing the number of models/styles produced Increasing worker base pay by more than 2% annually Increasing expenditures for best practices training for workers
Answer: Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials)
Explanation:
The International Footwear Federation is a consumer group that issues s/q ratings for footware makers around the world.
The S/Q ratings range from 0 - 10 stars and measure everything between the quality and appearance of the footware apparel.
Footware with high quality materials that are durable rank high in the S/Q matrix and as such it is imperative that companies aiming to move higher up the S/Q scale, use high quality materials.
Avoiding the use of green/environmentally-friendly materials (which are of lower quality than superior materials) and instead using Superior materials, whilst not entirely good for the Environment, will make a shoe stronger which would increase the S/Q rating.
If Wild Widgets, Inc., were an all-equity company, it would have a beta of 1.05. The company has a target debt-equity ratio of .55. The expected return on the market portfolio is 10 percent and Treasury bills currently yield 3.2 percent. The company has one bond issue outstanding that matures in 30 years, a par value of $1,000, and a coupon rate of 6.1 percent. The bond currently sells for $1,055. The corporate tax rate is 24 percent.
What is the company’s weighted average cost of capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
WACC is 10.18%
Explanation:
In order to compute the WACC for Wild Widgets,Inc,we need first of all ascertain the cost of debt kd and the cost of equity ke.
The cost of debt is the same the yield to maturity where yield to maturity can be computed using rate formula in excel:
=rate(nper,pmt,-pv,fv)
nper is the number of years before maturity which is 30
pmt is the coupon payable on the bond,6.1%*$1000=$61
pv is the current price of the bond at $1,055
fv is the face value of the bond at $1,000
=rate(30,61,-1055,1000)
rate=5.71%
pretax cost of debt is 5.71%
In order to calculate levered cost of equity,we need to re-lever the beta value of 1.05 using the below formula:
Levered β = Unlevered β ×(1 + [(D/E) × (1−t) )
Unlevered β=1.05
D/E=0.55
tax=tax =24%=0.24
Levered β=1.05*(1+(0.55)*(1-0.24)
=1.05*(1+(0.55)*(0.76)
=1.49
Levered cost of equity is then computed using the levered beta of 1.49
Ke=risk free rate+Levered beta*(market return-risk-free rate)
risk free rate is 3.2%
market return is 10%
ke=3.2%+1.49(10%-3.2%)
ke=13.33%
WACC=Ke*(E/V)+Kd*(D/V)*(1-t)
Ke is 13.33%
kd is 5.71%
D/E=0.55=0.55/1 which means that debt has 0.55 equity has 1
D/V=D/E+V=0.55/1+0.55=0.35
E/V=E/E+V=1/(1+0.55)=0.65
WACC=13.33%*0.65+5.71%*(0.35)*(1-0.24)
=13.33%*0.65+5.71%*(0.35)*(0.76)
=0.086645 +0.0151886
=10.18%
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,520,000. Harding paid $385,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $407,000; Building, $1,210,000 and Equipment, $803,000. (Round your intermediate percentages to the nearest whole number: i.e 0.054231 = 5%. Do not round any other intermediate calculations.) Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,060,000 units over its 5-year useful life and has salvage value of $18,000. Harding produced 271,000 units with the equipment by the end of the first year of purchase. Which amount below is closest to the amount Harding will record for depreciation expense for the equipment in the first year?
Answer:
$123,630.2
Explanation:
Harding Corporation
33%× $1,520,000=$501,600
$501,600-$18,000=$483,600
$483,600/$1,060,000 units
=$0.4562
=45.62 per unit
$0.4562x 271,000 units = $123,630.2
Or
($501,600 cost of equipment (33% of $1,520,000 purchase price) minus $18,000 salvage value) / $1,060,000 units = $0.4562 per unit.
$0.4562x 271,000 units = $123,630.2
Therefore the amount below which is closest to the amount Harding will record for depreciation expense for the equipment in the first year is $123,630
A&B Enterprises may add customer appraisals as a component of employee performance appraisals. All of the following are most likely reasons for A&B to use customer appraisals EXCEPT ________. fostering change evaluating development programs holding employees accountable demonstrating customer commitment
Answer: Evaluating Development Programs
Explanation:
Customer Appraisal is very and should be very important to companies because it is a critical source of information that guides a company on knowing Consumer Behavior.
Knowledge of Consumer Behavior can make or break a company as it enables them to know if they are satisfying their customer's needs.
Fostering Change, Holding Employees Accountable and Demonstrating a commitment to Customers are main reasons for Customer Appraisals. Evaluating Development Programs is not likely to be a reason so is the correct answer here.
A small business that makes household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 20%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment
Answer:
$270,000
Explanation:
Estimated increase in sales of 20%
Clothespins per year 75 tons
Sales of Clothespins 18,000 per ton
Hence
0.20 × 75 × 18,000 = $270,000
Therefore what will be the increase in revenue next year from the new equipment will be $270,000
A technology company that makes computers for professional use is trying to segment its customers. The company asked some professional computer users to evaluate the importance of various computer attributes that influence their purchase decisions and then used this data to segment the consumers based on similar response patterns. This is an example of segmentation by:
Answer:
Benefit sought
Explanation:
Customer segmentation can be defined as the process of placing customers into different groups, this grouping is based on the age, interest, gender. It can also be referred to as the classification of potential customers based on the similar characteristics that they share.
Customer segmentation makes it easy for marketers create an awareness of their product to a particular group of people.
Benefit sought can be described as the segmentation of a market based on the various benefits that potential customers receive from purchasing a product.
Lakisha is a professor of economics. She is currently earning $100,000 a year as a professor. She decides to quit her job as a professor and opens a consulting firm. In order to do this, she cashes out her retirement fund of $200,000. Her retirement fund has been earning 10% interest each year. At the end of her first year as an economic consultant, she earns $120,000 in accounting profit. What was her economic profit for the year?
Answer:
The correct answer is $0.
Explanation:
According to the scenario, computation of the given data are as follows:
Accounting Profit = $120,000
Current earning = $100,000
retirement fund = $200,000
Interest from retirement fund = 10% × $200,000 = $20,000
So, we can calculate the economic profit by using following formula:
Economic profit = Accounting profit - Current earning - Interest from retirement fund
By putting the value, we get
= $120,000 - $100,000 - $20,000
= $20,000 - $20,000
= $0
Lkisha economic profit for the year equal $0
Economic profit is the profit derived after deduction of costs of inputs and opportunity cost from revenue made from sale of output.
The Formula to use to calculate Lkisha economic profit is {Accounting profit - Salary given up - Interest from retirement fund given up}Given Information
Accounting Profit = $120,000
Current earning = $100,000
Retirement fund = $200,000
Economic Profit = $120,000 + $100,000 - (200,000 * 10%)
Economic Profit = $120,000 + $100,000 - $20,000
Economic Profit = $0
Therefore, Lkisha economic profit for the year equal $0.
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Suppose that in year 2025, the US economy enters once of its worst recessionary gaps in history. Address these two related questions below: Compare and contrasts how fiscal policy and monetary policy could be used to help address this economic downturn. Explain. The US government is currently trillions of dollars in debt. If economists view reducing this debt to be critically important, do you think fiscal or monetary policy is a better response to the economic downturn? Explain.
Answer:
Answer 1
Recession is a stage in a business pattern of transitory financial decay during which trade,industrial and monetary movement are diminished, for the most part recognized by a fall in GDP in two progressive quarters. Downturn brings about expansion and joblessness. In such a situation an expansionary monetary arrangement would help a lot in improving the condition of the economy. Monetary strategy is the utilization of government spending and expense approach to address the economy. In an expansionary financial strategy, the administration takes estimates, for example, diminishing assessments, expanding government uses or both, so as to battle recessionary weights.
A decline in charges implies that families have more removal pay to spend. Higher removal pay builds utilization which expands the (GDP). Further, a lessening in charges imparts to the organizations that the legislature is keen on resuscitating the economy. It expands their certainty which thus builds the private speculation part of GDP. Since government uses is a segment of GDP, an expansion in government consumptions brings about an increment in GDP . Further, such an expansion additionally brings about aberrant increment in utilization and different parts of GDP. Along these lines the total interest and the total inventory are both expected to increment. In any case, they don't move together or in extent because of the negative slant in the general public. Family unit will be a little reluctant about spending and the first might be a little suspicious about venture. Deficiency of merchandise can cause swelling and less interest for them can make the organizations stop creation and in this manner bring about joblessness.
Answer 2
Tending to the issue of debt is blustery significant on the grounds that in any case the nation will end up in an debt trap. US may confront expanding inflationary weights, low fare acquiring, less beneficial utilization of assets. It is natural to imagine that contractionary financial arrangement that diminishes the spending is valuable for the decrease for obligation. Yet, on the off chance that the economy in a recessionary express the assessment salary will be exceptionally less and chopping down spending will be of nothing worth mentioning. In such a case inspiring the economy through an expansionary money related arrangement and keeping the swelling in charge is the best choice US can take. In the event that the GDP increments, and the economy come back to its balance, individuals will have the option to make good on charges. Government can then easing back lessen the spending and spotlight on clearing the obligation. In this manner, in the given situation, financial strategy is a superior reaction to a monetary downturn.
Fiscal policy and monetary policy are two primary tools that can be used to address an economic downturn such as a recessionary gap.
Fiscal policy involves changes in government spending and taxation to influence the economy. In the face of a recession, the government can increase spending on infrastructure, social programs, or defense to inject money into the economy, which can create jobs and stimulate demand. Alternatively, the government can cut taxes to increase consumers' disposable income, encouraging spending and investment. The increased government debt that results from higher spending or lower tax revenues can be justified if it leads to a more rapid economic recovery and a return to higher levels of employment and output.
Monetary policy, on the other hand, is controlled by the central bank (the Federal Reserve in the US) and involves managing the money supply and interest rates. During a recession, the central bank can lower interest rates to reduce the cost of borrowing, thereby encouraging businesses to invest and consumers to spend. Additionally, the central bank can engage in quantitative easing, buying government securities and other financial assets to inject liquidity into the economy. This can lower long-term interest rates and increase the money supply, which can help to stimulate economic activity.
Considering the current situation where the US government is deeply in debt, monetary policy might be seen as a more immediate and less politically contentious response to an economic downturn. Monetary policy can be implemented quickly and does not directly increase government debt. However, its effectiveness can be limited if interest rates are already low or if there is a lack of confidence in the economy.
In contrast, fiscal policy can be more direct and targeted in its stimulus but would increase the national debt, which could be problematic given the already high levels of debt. Nevertheless, if the recession is severe enough, the increase in debt might be considered a necessary investment to revive the economy. Moreover, if the government invests in productive capacities, it can lay the groundwork for future economic growth, which can help pay down the debt over time.
In conclusion, both fiscal and monetary policy have roles to play in addressing a severe economic downturn. The choice between them depends on the specific circumstances of the downturn, the current level of interest rates, the effectiveness of monetary policy transmission mechanisms, and the political will to either increase government debt in the short term or risk a deeper and more prolonged recession. If reducing debt is a priority, monetary policy might be preferred initially, but if the downturn is severe, fiscal policy may become necessary despite the increase in debt.
The logic behind this answer is that each policy tool has its strengths and limitations, and the best response to an economic downturn may involve a combination of both fiscal and monetary measures, tailored to the specific needs of the economy at the time. The decision also depends on the effectiveness of past policies, the current economic environment, and the long-term goals of economic stability and growth.
Six months ago, you purchased 2,300 shares of ABC stock for $28.08 a share. You have received dividend payments equal to $.80 a share. Today, you sold all of your shares for $30.07 a share. What is your total dollar return on this investment?
Answer:
Dollar Return $2.79
$6417 as per investment in shares
Explanation:
The return from an investment is the difference between value of stock when is was purchased to when it is sold plus any income received during the period
Dollar return will be divided into two
Capital gain which is the difference between purchasing price and selling price
Capital Gain = 30.07-28.08= 1.99
Income which is any income distributions made
Income = dividend Income = $0.80
Return = 1.99+0.8=$2.79
As per investment =2300*2.79 = $6417
Build interest in your sales message by developing your central selling points with rational, emotional, or dual appeals. Rational appeals are appropriate when a product is, for example, important to BLANK . Emotional appeals are appropriate when a product is, for example, BLANK . Whether using rational or emotional appeals, remember to translate cold facts into BLANK .THIS IS THE OPTIONS DO THEM PLEASE :)option 1-health-appearance-egooption 2-short-lived-expensive-essentialoption 3-scare tactics related to current events-warm feelings and reader benefits -logical arguments
Answer:
1. Health
2. Essential
3. Warm feelings and reader benefits
Explanation:
Note that, in marketing Rational appeals are appropriate when a product is, for example, important to herlth. While Emotional appeals are appropriate when a product is, for example, essenal products.
Whether using rational or emotional appeals, remember to translate cold facts into warm feelings and reader benefits.
Say a pill existed that made people selfless. After taking it they were only interested in others, not themselves. Under the coordination definition of economics: Multiple Choice there would be a social problem but not an economic problem. no economic problem would exist. there still would be an economic problem. there would be a political problem but not an economic problem.
Answer:
The correct answer is letter "C": there still would be an economic problem.
Explanation:
Coordination, in Economics, refers to the set of actions different individuals take to satisfy their needs mutually. Problems arise in case there is not enough coordination of the individuals in an economy bringing lower benefits for them. For coordination to take place there must be a leader driving people's activities the most efficient way possible.
In the case of the example, after taking a pill that made people selfless, those individuals would still lack coordination because it would be difficult to determine which sector of individuals will be the priority for the satisfaction of needs. Therefore, even after the introduction of the pill, that society would give an economic problem.
The coordination definition of economics states that there would be no economic problem if a pill existed that made people selfless and interested in others. This is because people would coordinate their actions to prioritize the well-being of others, leading to positive social results.
Explanation:According to the coordination definition of economics, if a pill existed that made people selfless and only interested in others, there would be no economic problem. The coordination definition of economics focuses on how individuals and firms coordinate their economic activities to achieve their goals. In this scenario, if people were selfless and interested in others, they would likely coordinate their actions to prioritize the well-being of others, leading to positive social results. This aligns with the idea that self-interested behavior can lead to positive social outcomes in economics.
If a pill existed that made people selfless and only interested in the wellbeing of others, classical economic theory implies there still would be an economic problem. The coordination definition of economics largely assumes that individuals act in their own self-interest, which in turn benefits society through the invisible hand as described by Adam Smith. However, selflessness does not equate to the absence of economic problems; rather, it may create new challenges in terms of resource allocation and incentives, as the market relies on individual self-interest to signal needs and allocate resources efficiently.
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a. If Canace Company, with a break-even point at $259,000 of sales, has actual sales of $350,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?Round the percentage to the nearest whole number.
1. $
2. %
Answer:
Margin of safety in dollars is $91,000
Margin of safety as percentage of sales is 26%
Explanation:
Margin of safety can be defined as the amount of output or sales that a business can make before it reaches its breakeven point.
To calculate margin of safety in dollars
Margin of safety= Sales - Breakeven sales
Margin of safety= 350,000- 259,000
Margin of safety= $91,000
To calculate margin of safety as a percentage of sales, we use the following formula.
Margin of safety = (Sales- Breakeven point) ÷ Sales
Margin of safety = (350,000- 259,000)÷ 350,000
Margin of safety= 0.26= 26%
Answer:
1. Margin of Safety(MOS) expressed in dollars =91,000
2. Margin of Safety(MOS) expressed as percentage = 26% (to the nearest whole number)
Explanation:
The MARGIN OF SAFETY is applied as a measure of the difference between the actual sales and break-even sales.
In other words, to find Margin of Safety, you subtract break-even sales from the actual sales.
MOS is used to determine at which level sales can drop before a business incurs losses. It is a tool by which actual or budgeted sales may be decreased without resulting in any loss.
1. Formula for Margin of Safety(in dollars):
Margin of Safety(in dollars) = Actual/Budgeted Sales ➖ Break-even Sales
Where:
Actual Sales = $350,000
Break-even Sales = $259,000
➡ Margin of Safety(in dollars) = $350,000 ➖ $259,000 = 91,000(ans)
2. Formula for Margin of Safety (expressed as a percentage) = [(Actual/Budgeted Sales ➖ Break-even Sales) ➗ Actual/Budgeted Sales] ✖ 100%
Where:
Actual Sales = $350,000
Break-even Sales = $259,000
➡ Margin of Safety (in percentage) = [($350,000 ➖ $259,000) ➗ $350,000] ✖ 100%
= ($91,000 ➗ $350,000) ✖ 100%
= 0.26 ✖ 100% = 26%(ans).
reative Sound Systems sold investments, land, and its own common stock for $36.0 million, $14.4 million, and $38.8 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $20.4 million, $24.4 million, and $11.4 million, respectively. What amount should Creative Sound Systems report as net cash flows from financing activities
Answer:
$18.4 million
Explanation:
The computation of the net cash flows from financing activities is shown below:
Cash flows from financing activities
Issuance of the common stock $38.8 million
Less: Purchase of treasury stock -$20.4 million
Net cash flows provided from financing activities $18.4 million
The positive sign represents the inflow of cash and the negative sign shows the outflow of cash and the same is shown above
01) A firm faces the following relationship between the real wage it pays and the effort exerted by its workers. The marginal product of labor for this firm is given by MPN = E (100 - N)/9. How many workers will the firm employ? A) 96 B) 92 C) 88 D) 80
Answer:
A. 96
Explanation:
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The optimal number of workers a firm will employ is determined when the value of the marginal product of labor equals the market wage. Without the market price of the product, we cannot calculate the value of the marginal product to determine the profit-maximizing level of employment with the given marginal product of labor formula.
Explanation:The subject matter in question involves determining the optimal number of workers a firm should employ based on the relationship between the real wage, worker effort, and the marginal product of labor. A firm will continue to hire workers until the value of the marginal product of labor (VMPL), which is the product of the marginal product of labor and the market price of the output, equals the going market wage.
To find the profit-maximizing level of employment when the market wage is $12, we set the VMPL equal to $12 and solve for the number of workers (N). However, the student's question mentions neither the market price of the product nor any specifics that would allow us to calculate the VMPL. Therefore, based on the given information alone, we cannot determine how many workers the firm will employ.
Assuming the VMPL is available, you would calculate the marginal product of labor for various levels of employment (N), then determine the VMPL (MPN × P) for each level. The firm's profit-maximizing level of employment is reached when the VMPL equals the market wage, which in the supplied reference is $12.
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One component of the pension liability under both U.S. GAAP and IFRS is prior service cost (or past service cost under IFRS). ABC Company is trying to calculate the effect of PSC on their financial statements under both standards. Which of the following statements is true related to this analysis?
Answer:
Option A is correct which states that".There is no such thing, in IASB standards, as a "contingent asset"
The following data relate to the direct materials cost for the production of 10,000 automobile tires: Actual: 145,000 lbs. at $2.80 per lb. Standard: 150,000 lbs. at $2.75 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer and Explanation :
The computation is shown below:
Direct materials price variance is
= (actual price - standard price) × actual quantity
= ($2.80 - $2.75) × 145,000
= $7,250 unfavorable
Because actual price is higher than standard price so this is unfavorable
Direct materials quantity variance is
= (actual quantity - standard quantity) × standard price
= (145,000 - 150,000) × $2.75
= -$13,750 favorable
Sum of direct material cost variance = $7,250 - $13,750
= -$6,500 favorable
We simply applied the above formulas
Carmel Company has a frequent buyer program for its customers, where the customers can attain an "elite" level based on the number of orders and the total revenue of the orders. There are two elite levels: Platinum and Titanium. The benefits of elite membership include discounts and access to special customer service representatives who can resolve problems. The company has one full-time customer representative per 200 Titanium customers and one full-time customer representative per 2,000 Platinum customers. Customer representatives receive salaries plus bonuses of 1 percent of customer gross margin. Carmel spends 80 percent of its promotion costs on Titanium customers to encourage their loyalty. Customer Costs Total Titanium Platinum Number of customers 25,000 5,000 20,000 Average customer representative salary $ 68,000 $ 68,000 Promotion costs $ 2,850,000 Average gross margin per customer $ 1,590 $ 325 Required: a. Calculate the totals of the items below for both titanium and platinum customers, as well as the excess of gross margin over customer costs for each category. b. Which customers are more profitable?
Answer:
a.Titanium = $2,890,500
Platinum = $5,185,000
b. Platinum is more profitable
Explanation:
The computation of given question is shown below:
For Titanium
Total gross margin = 5,000 × $1,590
= $7,950,000
Salaries and bonus of Customer representative = ($68,000 × 5,000 ÷ 200) + (1% × $7,950,000)
= $1,700,000 + $79,500
= $1,779,500
b.
Promotion cost = $2,850,000 × 80%
= $2,280,000
Excess of gross margin over customer costs = Total gross margin - Salaries and bonus of Customer representative - Promotion cost
= $7,950,000 - $1,779,500 - $2,280,000
= $2,890,500
For Platinum
Total Gross margin = 20,000 × $ 325
= $6,500,000
Salaries and bonus of Customer representative = ($68,000 × 20,000 ÷ 2,000) + (1% × $6,500,000 )
= $680,000 + $65,000
= $745,000
Cost of promotion = $2,850,000 × 20%
= $570,000
Since, 80% is allocated for promotion expenses of titanium so we assume 20% for Platinum
Excess of gross margin over customer costs = Total Gross margin - Salaries and bonus of Customer representative - Cost of promotion
= $6,500,000 - $745,000 - $570,000
= $5,185,000
B. Since, Platinum is higher than Titanium. So, Platinum is more profitable.
Consider the race for governor of a small state. The population of the state is evenly divided between three cities—Summertown, Tarrytown, and Auburn. The governor's race is between Ralph Rubin (the mayor of Summertown) and Travis Turner (the mayor of Tarrytown). Assume that no matter what is said during the campaign, Rubin can count on the support of 100% of the Summertown population, and Turner can count on the support of 100% of the Tarrytown population. Assume 100% voter participation.
a. According to the result of majority-rule voting, the next governor will be the one preferred by the majority of the residents of ___________.
Options:
a. Summertown
b. Tarrytown
c. Auburn
Answer:
C
Explanation:
The first point here is that the State is evenly distributed among the three cities that made up the state. That means if the state population is 300 , each city population is 100 .
Now , if Ralph Rubin get a 10% support from Summerton (100 people) and Turner got the 100% support of Tarrytown (100 people) assuming 1005 participation. The decider of the election will be the people of Auburn.
The preferred candidate by the majority ((more tha 50%)people of auburn will be the winner
According to the result of majority-rule voting, the next governor will be the one preferred by the majority of the residents of Auburn.
In a race for governor between two candidates with city-specific support, the winner will be the one preferred by the majority of the residents of Auburn due to the even division of the state's population among three cities.
In this scenario, even though each candidate has the complete support of their city's population, the winner will be chosen based on the majority of votes from all three cities combined.Since the population is evenly divided among the three cities, the majority will be determined by the combined total of votes from Auburn, making it crucial for a candidate to secure the majority support there.Brown Company purchased equipment in 2011 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2017, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2018, the equipment was sold for $40,000.
Answer:
The journal entry for disposal of equipment will be as follows;
Explanation:
Accumulated Depreciation Dr.$98,000
Cash Dr.$40,000
Loss on disposal (150-98-40) Dr.$12,000
Equipment Cr.$150,000
Answer:
Dr Depreciation Expense 3,500
Cr Accumulated Depreciation—Equipment 3,500
Dr Cash 40,000
Dr Loss on Disposal of Plant Assets 8,500
Dr Accumulated Depreciation—Equipment 101,500
Cr Equipment 150,000
Explanation:
Brown Company Journal entry
(a)
Dr Depreciation Expense 3,500
Cr Accumulated Depreciation—Equipment 3,500
( $14,000 × 1/4 = $3,500)
Dr Cash 40,000
Dr Loss on Disposal of Plant Assets 8,500
Dr Accumulated Depreciation—Equipment ($98,000 + $3,500) 101,500
Cr Equipment 150,000
An 80-room motel forecasts its average room rate to be $68.00 for next year at 75% occupancy. The rooms department has a fixed wage cost of $186,000. Variable wage cost for housekeeping is $9.00 an hour; it takes one-half hour to clean a room. Fringe benefits are 18% of total wages. Linen, laundry, supplies, and other direct costs are $2.75 per occupied room per day. The motel also has a 50-seat, limited-menu snack bar. Breakfast revenue is derived solely from customers staying overnight in the motel. On average, 40% of occupied rooms are occupied by two persons and, on average, 80% of overnight guests will eat breakfast. Average breakfast check is $6.50. Lunch seat turnover is 1.5, with an average check of $8.95. The average dinner check is $10.95 and there are 2.0 seat turns for dinner. The snack bar is open 365 days a year for all three meals. Direct costs for the snack bar are 78% of total snack bar revenue. Indirect costs for the motel are estimated at $580,800 for next year. a. Calculate the budgeted contributory income statement for each department and a consolidated total motel departmental income statement to determine operating income. b. Assume that at the end of next year, actual revenue was on 21,700 rooms occupied at an average rate of $68.40; actual housekeeping wages (before employee fringe benefits) were $108,208. Analyze room revenue for price and sales volume variances and housekeeping wages for cost, quantity, and sales volume variances; assume it took 32 minutes to clean each room actually occupied (sold).
Answer and explanation:
Budgeted rooms to be sold next year: 80 × 75% × 365 = 21,900
a. Budgeted Departmental Contributory Income Statement
$ $
Rooms Department
Sales Revenue: [21,900 * $68.00] $1,489,200
Expenses
Fixed wages expense $186,000
Housekeeping expenses [21,900 * 0.5 *$9.00] 98,550
Subtotal $284,550
Fringe benefits: [18% *$284,550] 51,219
Other costs: [21,900 * $2.75] 60,225 (395,994)
Rooms Contributory income $1,093,206
Overnight guests: 80 rooms * 75% = 60 rooms occupied
40% * 60 = 24 rooms double occupied
84 overnight guests
Average breakfast guests: 80% *84 = 67.2 Guests
Snack bar sales revenue $
Breakfast: [67.2 * $6.50 *365] $159,432
Lunch: [50 * 1.5 * $8.95 * 365] 245,006
Dinner: [50 * 2.0 *$10.95 * 365] 399,675
Total Sales Revenue $804,113
Expenses [78% * $804,113] (627,208)
Snack Bar Contributory Income $176,905
Consolidated Motel Departmental Income Statement
Rooms Contributory Income $1,093,206
Snack Bar Contributory Income 176,905
Total Contributory Income $1,270,111
Less: Indirect, Undistributed Costs (580,800)
Budgeted Operating Income
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