Answer:
The correct answer is option b.
Explanation:
If banks decide to hold more excess reserves relative to deposits, they will provide fewer loans. Fewer loans will cause reduction in investment because of lack of funds. This will cause the money supply to fall.
Federal Reserve can increase the money supply by buying treasury bonds. When Feds buy treasury bonds they pay for it. This increases the money supply in the market.
If banks hold more excess reserves, the money supply will fall. To counteract this, the Fed could buy Treasury bonds to increase the money supply.
Explanation:If banks decide to hold more excess reserves relative to deposits, it means they are keeping a larger portion of their deposits as reserves instead of lending it out. This action will cause the money supply to fall because there will be less money available for lending and economic activity.
To combat the impact of this, the Federal Reserve (the Fed) could buy Treasury bonds. When the Fed buys Treasury bonds, it injects money into the banking system, increasing the money supply and offsetting the decrease caused by the banks holding excess reserves.
Therefore, the correct answer is b. money supply to fall. To reduce the impact of this the Fed could buy Treasury bonds.
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Sam makes a deposit at the bank which is comprised of $5, $10, and $20 bills. If the number of $5 bills is three more than the number of $10 bills, the number of $20 bills is half the number of $5 bills, and his total deposit is $270, how many bills of each type did he deposit?
Answer:
Number of $5 bills= 12
Number of $10 bills= 9
Number of $20= 6
Explanation:
Giving the following information:
Total deposit= $270
$5 bills are three more than the number of $10 bills.
The number of $20 bills is half the number of $5 bills.
x1= number of $5 bills
x2= number of $10 bills
x3= number of $20 bills
x1=3+x2
x3=x1/2
The function to calculate the number of bills is:
Total number of bills= (3+x2)*$5 + x2*$10+ (x1/2)*$20
n $x1 n $x2 n $x3
4 20 1 10 2 40 70
5 25 2 20 2,5 50 95
6 30 3 30 3 60 120
7 35 4 40 3,5 70 145
8 40 5 50 4 80 170
9 45 6 60 4,5 90 195
10 50 7 70 5 100 220
11 55 8 80 5,5 110 245
12 60 9 90 6 120 270
x1= 12
x2= 9
x3=6
To solve the problem, we set up an equation using the variable x to represent the number of $10 bills. After following a series of algebraic steps, we find that Sam deposited 12 $5 bills, 9 $10 bills, and 6 $20 bills.
Let's represent the number of $10 bills that Sam has as x. According to the problem, the number of $5 bills is three more than the number of $10 bills, and the number of $20 bills is half the number of $5 bills. Therefore, we have:
Number of $5 bills: x + 3Number of $10 bills: xNumber of $20 bills: (x + 3) / 2These bills add up to a total of $270, which we can express in the following equation:
5(x + 3) + 10x + 20((x + 3) / 2) = 270
Solving this equation:
5x + 15 + 10x + 10(x + 3) = 2705x + 15 + 10x + 10x + 30 = 27025x + 45 = 27025x = 225x = 9From x, we can find:
Number of $10 bills: 9Number of $5 bills: 9 + 3 = 12Number of $20 bills: (12) / 2 = 6Sam deposited 12 $5 bills, 9 $10 bills, and 6 $20 bills.
Stone Beauty, Inc. is a merchandiser of stone ornaments. The company sold 7 comma 500 units during the year. The company has provided the following information: Sales Revenue $ 554 comma 000 Purchases (excluding freight in) 304 comma 000 Selling and Administrative Expenses 66 comma 000 Freight In 13 comma 000 Beginning Merchandise Inventory 44 comma 000 Ending Merchandise Inventory 43 comma 000 What is the cost of goods available for sale for the year?
Answer:
Cost of goods available for sale 344,000
Cost of goods sold 301,000
Explanation:
cost of goods available for sale :
Is the sum of all tehcost that the firm could have sold during the period.
Is the sum of beginning inventory (goods from prior periods) and the purchase done in the period
beginning inventory + purchase
beginnning inventory 44,000
purchase = 304,000
Cost of goods available for sale 344,000
Then, cost of goods available for sale - ending inventory = COGS
344,000 - 43,000 = 301,000 COGS
Answer:
The cost of goods available for sale for the year is $317,000
Explanation:
The computation of the cost of goods available for sale for the year is shown below by applying the formula:
= Beginning Merchandise Inventory + Purchases (excluding freight in) + Freight In - Ending Merchandise Inventory
= $44,000 + $304,000 + $13,000 - $43,000
= $317,000
The remaining items which are given in the question are not be considered in the computation part because the items are used for computing the net income, not for cost of goods available for sale for the year
A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from the acceptance of the offer?
The acceptance of the special order in this case would result in a loss of $40,000 as the total costs of production for this order would exceed the revenue generated.
Explanation:To calculate the gain or loss from the acceptance of the offer, we first need to determine the total revenue from this special order and the total cost incurred to produce the special order. The total revenue, in this case, would be the price offered by the exporter multiplied by the number of units, that is $15/unit * 20,000 units = $300,000.
The total cost would be the sum of the variable cost and the fixed cost, each multiplied by the number of units. This amounts to ($12/unit variable costs + $5/unit fixed costs) * 20,000 units = $340,000.
Subtracting the total cost from the total revenue will give the gain or loss. So, $300,000 - $340,000 shows a loss of $40,000. Hence, the amount of the loss from the acceptance of the offer is $40,000.
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When the Fed sells government securities, the banks':
A. reserves will increase and lending will expand causing an increase in the money supply.
B. reserves will decrease and lending will contract causing a decrease in the money supply.
C. reserve requirements will increase and lending will contract causing a decrease in the money supply. D. reserves/deposit ratio will increase and lending will expand causing an increase in the money supply.
Answer:
The correct answer is option B.
Explanation:
When the Federal reserve bank sells government securities, the banks will purchase them and pay back fed. This payment is made out of banks' reserves. This causes the reserves to decrease.
As reserves decline, the banks will be able to provide fewer loans. Consequently, this decrease in lending will further cause the money supply to decrease.
Consider the widget exchange. Suppose that each widget contract has a market value of $0 and a notional value of $100. There are three traders, A, B, and C. Over one day, the following trades occur: A long, B short, 5 contracts. A long, C short, 15 contracts. B long, C short, 10 contracts. C long, A short, 20 contracts. What is trader B's net position in the contract at the end of the day?
Answer:
The trader B's net position in the contract at the end of the day is 5 long position contract
Explanation:
The computation of net position for the trader B is shown below:
Net position = Long position - short position
= 10 long position contracts - 5 short position contracts
= 5 long position contract
The other traders are irrelevant because we have to find out the net income for traders B only. Hence, all other information is ignored
Final answer:
Trader B's net position at the end of the day is 5 contracts long, calculated by subtracting the shorted 5 contracts from the 10 contracts bought long.
Explanation:
The student's question relates to finding trader B's net position in a contract market at the end of the day after a series of trades have been made between three traders. To compute this, we need to tally the long and short positions that B has engaged in during the trading day.
Firstly, when B trades short, this is a promise to deliver a commodity at a later date, and when B trades long, this is a commitment to receive the commodity. To tally B's position, we calculate the difference between B's long and short positions:
B short 5 contracts to A.
B long 10 contracts from C.
Trader B's net position is the difference between the long and short contracts:
Net Position = Long positions - Short positions
Net Position = 10 contracts - 5 contracts
Net Position = 5 contracts long
Therefore, at the end of the trading day, trader B has a net position of being 5 contracts long.
Stiller Corporation incurred fixed manufacturing costs of $12,000 during 2011. Other information for 2011 includes: The budgeted denominator level is 2,000 units. Units produced total 1,500 units. Units sold total 1,200 units. Beginning inventory was zero. The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold. Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:
Answer:
Cost of Goods Sold will contain 9,600 of the fixed manufacturing cost
Explanation:
actual fixed cost 12,000
Under absorption cost, the produced units will take the complete manufacturing cost
total manufacturing cost / produced units
12,000 / 1,500 units = 8
Then, we multiply by the amount of units sold to know how much of the manufacturing cost were recognize during the period
1,200 x 8 = 9,600
The rest, will be capitalized into inventory.
he balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items included with it, the company's accountant found:
Checks outstanding $4,500
NSF check 140
Note collected by bank for the Colt Company 1,500
Deposits outstanding 2,300
Bank service fees 60
What is the amount of cash that should be reported in the balance sheet as of August 31?
A.$20,200
B.$16,700
C.$23,400
D.$15,700
Answer:
A.$20,200
Explanation:
The computation of the cash amount which is to be reported is shown below:
= August bank statement balance - checks outstanding + deposit outstanding
= $22,400 - $4,500 + $2,300
= $20,200
The other items like NSF check, Note collected by the bank for the Colt Company, and Bank service fees are irrelevant. Hence, these are ignored and not be considered in the computation part
You are setting up a part-time business with an initial investment of $27,000. The unit cost of the product is $11.30, and the selling price is $18.80. (a) Find equations for the total cost C (in dollars) and total revenue R (in dollars) for x units. C(x) = R(x) = (b) Find the break-even point by finding the point of intersection of the cost and revenue equations. units (c) How many units would yield a profit of $1000? units
Answer:
A. The function to express the cost is:
C(X) = $11.3*X + $27,000
The function to express the revenue is:
R(X) = $18.8*X
B. The break-even point is obtained for 3600 units
C. It is needed 3734 units to yield a profit of $1,000.
Explanation:
The expression for the cost of bussines is obtained by adding the initial investment to the cost of production of X units:
C(X) = $11.3*X + $27,000
Meanwhile the revenue for selling X is units is represented as:
R(X) = $18.8*X
Then the break-even point is found by equalling C(X) with R(X):
R(X) = C(X)
$18.8*X = $11.3*X + $27,000
$18.8*X - $11.3*X = $27,000
$ 7.5*X = $27,000
X = $27,000 / $7.5
X = 3,600 units
The profit of the bussines P(X) can be expressed sustracting the cost C(X) to the revenue R(X):
P(X) = R(X) - C(X)
P(X) = $18.8 * X - ($11.3*X + $27,000)
Equalling the profit to $1000 we will find the amount of units for selling:
$1,000 = $18.8*X - ($11.3*X + $27,000)
$1,000 = $18.8*X - $11.3*X - $27,000
$1,000 = $7.5*X - $27,000
$1,000 + $27,000 = $7.5*X
$28,000 = $7.5*X
$28,000 / $7.5 = X
X = 3734 units
Brief Exercise 26-4 Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Variable manufacturing costs $ $ $ Fixed manufacturing costs Purchase price Total annual cost $ $ $ The decision should be to the part.
Answer:
differential loss for 14,700
Explanation:
[tex]\left[\begin{array}{cccc}&$Make&$Buy&$Differential&\\$Variable Cost&-73,500&-88,200&-14,700&\\$Fixed cost&-29,400&-29,400&0&\\$Total&-102,900&-117,600&-14,700&\\\end{array}\right][/tex]
We multiply the variable copst per unit by the 14,7000 units
then we add the fixed cost for the total cost for the make option
Then, we multiply the 14,700 by 6 for the buy option and add the unavoidable fixed cost.
In this case, it is not convinient to buy the assembly part as it would incour in a differential loss for 14,700
Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $8, and each clock sells for $18. Calculate Red Hawk’s unit contribution margin and contribution margin ratio. Suppose Red Hawk sells 2,000 clocks this year. Calculate the total contribution margin.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Its variable cost per clock is $8.
Each clock sells for $18.
Suppose Red Hawk sells 2,000 clocks this year.
A) contribution margin= selling price - variable costs= 18-8= $10
B) Contribution margin rate= contribution margin/ selling price= 10/18= 0.5556
C= Total contribution margin= units* contribution margin= 2000*10= $20,000
Calculate unit contribution margin, contribution margin ratio, and total contribution margin for Red Hawk Enterprises selling 2,000 clocks.
Unit Contribution Margin: $18 - $8 = $10 per clock
Contribution Margin Ratio: ($10 / $18) x 100% = 55.56%
Total Contribution Margin: $10 x 2,000 = $20,000
The following information pertains to Alpha Computing at the end of 2015:
Assets $972,500
Liabilities $450,000
Net Income $237,500
Common Stock $370,000
Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2015.
What amount of dividends did the company pay in 2015?
Answer:
Dividens paid in 2015: $85.000
Explanation:
TOTAL ASSETS 972.500
TOTAL LIABILITIES 450.000
Common Stock $ 370.000
Retained Earnings $ 152.500
TOTAL EQUITY $ 522.500
Retained Earnings Report
Opening retained earnings $ 0
Add: Net Income $ 237.500
Subtotal $ 237.500
Less: Dividens -$ 85.000
Total $ 152.500
The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $ 61,000 Contributions to pension plan 111,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 643,000 Plan assets (fair value), December 31 750,000 Actual return on plan assets 152,000 PBO, January 1 910,000 PBO, December 31 906,000 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year?
Answer:
The pension expense for the year is $94,130
Explanation:
The computation of the pension expense is shown below:
= Service cost + Interest cost - expected return of plant
where,
Service cost = $61,000
Interest cost = PBO, January 1 × discount rate
= $910,000 × 10%
= $91,000
Expected return on plant asset = Plan assets (fair value), January 1 × Long-term expected return on plan assets
= $643,000 × 9%
= $57,870
Now put these values to the above formula
So, the value would equal to
= $61,000 + $91,000 - $57,870
= $94,130
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:
Factory rent $ 37,700
Company advertising 25,500
Wages paid to seamstresses 76,800
Depreciation on salespersons' vehicles 30,600
Thread 1,030
Utilities for factory 24,700
Cutting room supervisor's salary 30,300
President’s salary 76,500
Premium quality cotton material 40,200
Buttons 835
Factory insurance 18,500
Depreciation on sewing machines 7,400
Wages paid to cutters 50,000
Required:
1. Compute the cost of direct materials for Cotton White.
2. Compute the cost of direct labor for Cotton White.
3. Compute the cost of manufacturing overhead for Cotton White.
4. Compute the total manufacturing cost for Cotton White.
5. Compute the prime cost for Cotton White.
6. Compute the conversion cost for Cotton White.
7. Compute the total period cost for Cotton White.
The cost computations for Cotton White, Inc., include direct materials of $42,065, direct labor of $126,800, manufacturing overhead of $118,600, total manufacturing cost of $287,465, prime cost of $168,865, conversion cost of $245,400, and total period cost of $132,600.
Explanation:The student is asking to compute various costs incurred by Cotton White, Inc., including direct materials, direct labor, manufacturing overhead, total manufacturing cost, prime cost, conversion cost, and total period cost.
Direct materials cost: This includes all the raw materials used in the production that can be directly traced to the goods being produced. In this case, it is the sum of the cost of premium quality cotton material ($40,200), thread ($1,030), and buttons ($835), which equals $42,065.Direct labor cost: This represents the cost of wages paid to employees who directly work on the products. For Cotton White, this includes wages paid to seamstresses ($76,800) and cutters ($50,000), totaling $126,800.Manufacturing overhead cost: This includes all production costs except direct materials and direct labor. Here, it is the sum of factory rent ($37,700), utilities for the factory ($24,700), cutting room supervisor's salary ($30,300), factory insurance ($18,500), and depreciation on sewing machines ($7,400), totaling $118,600.Total manufacturing cost: It is the sum of direct materials, direct labor, and manufacturing overhead, coming to $287,465.Prime cost: This is the sum of direct materials and direct labor, which is $168,865.Conversion cost: This is the sum of direct labor and manufacturing overhead, totaling $245,400."You plan on saving money for retirement in 30 years (t=30) at which time, you wish to have saved $1,000,000. In order to do this, you plan on depositing $10,000 into the bank for 10 years starting next year (last $10,000 deposit at t=10). And then deposit $x every year after that until your retirement day (last deposit of $x at t=30). If the interest rate is 6% per annum, what is the $x you must deposit?"
Answer:
X= $15,692.9393
Explanation:
Giving the following information:
Number of years= 30
Final value= 1,000,000
First, deposit $10000 for ten years (last deposit at t=10).
After ten years, you deposit X for 20 years until t=30.
i= 6%
First, we need to calculate the final value in t=10. We are going to use the following formula:
FV= {A*[(1+i)^t-1]}/i
FV= {10000*[(1.06^10)-1]}/0.06= $131807.9494
We can calculate the amount of money to input every year. We need to isolate A:
A= (FV*i)/[(1+i)^n-1]
First, we need to calculate the final value of the $131807.9494
FV= PV*[(1+i)^n]
FV= 131807.9494*1.06)^20= 422725.95
We need (1000000-4227725.95) $577274.05 to reache $1000000
A= (FV*i)/[(1+i)^n-1]
A= (577274.05*0.06)/[(1.06^20)-1]= 15692.9393
X= $15,692.9393
Precious, Inc. is a merchandiser of a single line of golden rings. At the beginning of the day, the shop had 10 rings in its inventory. During the day, 4 new rings were delivered to the shop. By close of business, only 7 rings remained in inventory. The purchase price of each ring from the supplier is $223. In addition, the company pays $5 for shipping and delivery insurance on each ring that they purchase. What is the company’s Gross Profit for the day if it sells each ring for $662?
Answer:
Gross profit=$3038
Explanation:
We need to calculate the gross profit of the day based on the following information:
Beginning inventory= 10 rings
Purcase= 4 rings
Ending inventory= 7 rings
Cost of each ring= $223
Freight and insurance= $5 unit
Unitary cost= 223+5= $228
Total sale in units= 10+4-7= units
Gross profit= (PxQ)-(Unitary cost*Q)
Gross profit= (7*662)-(228*7)=$3038
On January 1, 2018, Green Corporation purchased 20% of the outstanding voting common stock of Gold Company for $300,000. The book value of the acquired shares was $275,000. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2018, Gold reported net income of $125,000 and paid cash dividends of $25,000. What is the carrying value of Green's investment in Gold at December 31, 2018?
Final answer:
The carrying value of Green's investment in Gold at the end of 2018 is calculated by adding the equity income recognized and subtracting both dividends received and amortization of the intangible asset from the initial investment cost, resulting in a carrying value of $315,000.
Explanation:
The carrying value of Green's investment in Gold on December 31, 2018, can be calculated by adding the equity income recognized during the year and subtracting any dividends received from the investment from the initial investment cost. The initial cost of the investment was $300,000. Since Green owns 20% of Gold, they would recognize 20% of Gold's net income, which would be $25,000 ($125,000 x 20%). Additionally, Green would reduce the carrying amount by the dividends received, which amounts to $5,000 ($25,000 x 20%). The excess purchase price over the book value is attributed to an intangible asset, which is amortized over its useful life. This excess amount is $25,000 ($300,000 - $275,000) and the annual amortization expense over five years would be $5,000 ($25,000 / 5).
The calculations for the carrying value are as follows:
Initial investment cost: $300,000Equity income recognized: $25,000Dividends received: ($5,000)Amortization of intangible: ($5,000)Thus, the carrying value at the end of the year is:
$300,000 + $25,000 - $5,000 - $5,000 = $315,000
Mapoob Sapling Learning macmilan learning Label each scenario by deciding whether opportunity cost has increased or decreased. Emily is deciding between her two favorite restaurants. One makes Indian food and the other makes Chinese food. The Indian restaurant has just raised its prices. The opportunity cost of Chinese food has Jacob has a bagel or a muffin for breakfast. Muffins are on sale so they cost $1 less than usual. The opportunity cost of eating a bagel has: Taylor has to take time off work to study. Since her wage has increased from $10 per hour to $15 per hour, the opportunity cosť of studying has: Justin decides to take the bus to school instead of driving to school. The rice of gasoline has just decreased. The opportunity cost of taking the bus Increased Decreased
Answer:
(a) The opportunity cost of Chinese food has decreased because Indian restaurant raises its price, so Chinese food is more affordable and indian food become expensive.
(b) The opportunity cost of eating a bagel has increased because the price of muffins falls.
(c) The opportunity cost of studying has increased because his wages increases from $10 to $15, so now he have to foregone more money income than before.
(d) The opportunity cost of taking the bus has increased because bus travel becomes more affordable or cheaper due to lower gasoline prices.
_____ refers to efforts to create, develop, and defend markets that satisfy individual and business customers.
a. Marketing
b. Supply chain
c. Sales
d. Business managemen
Answer: Marketing
Explanation: The concept of marketing in business management focuses on developing healthy relationship with the existing customers and attracting the potential customers. It is considered a primary function of business management.
The customer service and satisfaction are main objectives of marketing.
Thus, from the above we can conclude that the correct option is A.
A duopoly faces an inverse market demand of: p equals 390 minus 3 q 1 minus 3 q 2. You are told that firm 1 is the leader and firm 2 is the follower. Otherwise the firms are identical, each with a constant marginal cost of $90. What oligopoly model will you use to analyze this market?
Answer:
Stackelberg duopoly
Explanation:
The Stackelberg duopoly is characterized by having two firms that produce a homogeneous good, both face the same costs and the same demand. One of the two firms is the leader and the other is the follower. This happens because one of them is bigger or is more recognized. The leader firm can choose the quantity that it will produce (q1) and then the follower firm will produce according to the leader firm choice. In game theory, people use backward induction to find the Nash equilibrium.
Your current income is $50,000 per year, and you would like to maintain your current standard of living (i.e., your purchasing power) when you retire. If you expect to retire in 30 years and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years?
Answer:
it will need income for 121,363.12
Explanation:
We will adjust the 50,000 principal by inflation at 3% per year during 30 years:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 50,000.00
time 30.00
rate 0.03000
[tex]50000 \: (1+ 0.03)^{30} = Amount[/tex]
Amount 121,363.12
An income for 121,363.12 per year in 30 years will have the same purchasing power as 50,000 dollars today.
To maintain your current standard of living when you retire in 30 years with a 3% annual inflation rate, you'll need an annual income of approximately $121,354.
Calculating Future Income Needed to Maintain Purchasing Power
To determine how much annual income you will need in 30 years to maintain your current standard of living given a $50,000 current income and an expected 3% annual inflation rate, follow these steps:
Identify the formula for future value with inflation: FV = PV times (1 + r)^n, where PV is the present value ($50,000), r is the inflation rate (3% or 0.03), and n is the number of years (30).
[tex]Plug in the values: FV = 50000 imes (1 + 0.03)^{30}.[/tex]
[tex]Calculate the result: FV = 50000 times (1.03)^{30} ≈ 50000 times 2.427 ≈ $121,354.[/tex]
So, in 30 years, you will need an annual income of $121,354 to maintain your current purchasing power, considering a consistent inflation rate of 3%.
Most financial advisers suggest that to live comfortably in retirement, you typically need about 70% of your pre-retirement income. However, this calculation helps you understand the equivalent value you'd need to keep the same purchasing power with an adjusted income.
Sheffield Corp. is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees) $174,240 Dividends $11,880 Sales revenue (from general store) 33,000 Notes payable 66,000 Accounts payable 14,520 Expenses during 2017 166,320 Cash 11,220 Supplies 7,260 Equipment 150,480 Common stock 52,800 Retained earnings (1/1/2017) 6,600 Determine Sheffield Corp.’s net income for 2017. Sheffield Corp.’s net income for 2017
Answer:
Net Income for 2017 - $40.920
Explanation:
Income Statement
Sales Service and Store $207.240
Cost of goods sold -$166.320
Gross Profit $40.920
Net Income $40.920
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year is $2,000,000. The costcapacity factor for this particular plant technology is 0.67 for capacities ranging from 200,000 gallons per year to 500,000 gallons per year. What is the estimated capital investment for a similar ethanol plant with a capacity of 400,000 gallons per year? Please only fill in the number of your calculated result in the blank, e.g., if the result is $100, fill in "100"; also round to the nearest integer.
Answer:
$2,740,251.24
Explanation:
Applying power sizing technique or an exponential model to determine the cost of new boiler.
This model identify the cost variation along with change in capacity or power of the equipment.
[tex]\frac{C_{A} }{C_{B} } =(\frac{S_{A}}{S_{B}})^{x}[/tex]
Where,
Cb = Cost of new plant
Sa = capacity of new plant
Sb = capacity of old plant
x = cost capacity factor
Therefore,
[tex]\frac{C_{A}}{2,000,000} =(\frac{400,000}{250,000})^{0.67}[/tex]
[tex]C_{A}=2,000,000\times\frac{400,000}{250,000}[/tex]
= 2,000,000 × 1.3701
= $2,740,251.24
Total stockholders' equity represents
a. a claim to specific assets contributed by the owners.
b. the maximum amount that can be borrowed by the enterprise.
c. a claim against a portion of the total assets of an enterprise.
d. only the amount of earnings that have been retained in the business.
Answer: Option C
Explanation: In simple words, the amount of assets that remain in the business after all liabilities have been met is called the stockholders equity. These are the funds available in the company on which the common stockholders have their right.
In other words, these are the assets which are financed by the owners of the company and no liability is incurred to purchase them.
Hence from the above we can conclude that the correct option is C.
Sam has decided to buy a burger and fries at a restaurant, but he is considering whether to buy a drink as well. Suppose the price of a burger is $3.00, fries are $1.50, drinks are $2.00, and a value meal with all three costs $4.99. For Sam, what is the marginal cost of the drink?
Answer:
$.49
Explanation:
In this question we have given
Cost of one burger=$3
Cost of fries=$1.5
Cost of drink=$2
Cost of value meal=$4.99
Therefore, marginal price of drink=cost of value meal-cost of fries and burger
=4.99-3-1.5
=$.49
There are two teams of students: team A with 3 sophomores, 8 juniors and 13 seniors; and team B with 5 sophomores, 7 juniors and 6 seniors. Suppose we pick one student from each team at random. Find the probability that both students are of the same type (that is, both sophomores, or both juniors, etc).
Answer:
sopomores= 0.0397
juniors= 0.1481
seniors= 0.2063
Explanation:
Giving the following information:
There are two teams of students:
Team A with 3 sophomores, 8 juniors, and 13 seniors. Total of 24 students.
Team B with 5 sophomores, 7 juniors, and 6 seniors. Total of 18 students.
First, we need to calculate the probability of selecting any student on each team:
Team A:
sophomores=3/21= 0.1428
juniros= 8/21= 0.3809
senors= 13/21= 0.619
Team B:
sopomores= 5/18= 0.2778
juniors= 7/18= 0.3889
seniors= 6/18= 0.3333
Now, we can calculate the probability of selecting the same type of students:
sopomores= 0.1428*0.2778= 0.0397
juniors= 0.3809*0.3889= 0.1481
seniors= 0.619*0.3333= 0.2063
Which of the following is NOT true of a demand curve?
A. It has negative slope.
B. It shows the amount consumers are willing and able to purchase at various prices, holding other factors constant.
C. It relates the price of an item to the quantity demanded of that item.
D. It shows how an increase in price leads to an increase in quantity demanded of a good.
D. it shows how an increase in price leads to an increase in quantity demanded of a good.
The statement which is not true about the demand curve is it shows that an increase in price leads to an increase in the quantity demanded of a good. Thus, the correct answer is D.
What is the Demand curve?The demand curve depicts the relationship between the price of a commodity or service offered and the quantity demanded over time. This shows that demand for goods falls when a rise in the price has been observed.
The factors which affect the demand curve are the price of any product, income earned by the customer, amount of substitute goods, and availability of supply based on expectations of the future.
Therefore, option D increase in price leads to an increase in quantity is the correct answer which is not true about the demand curve.
Learn more about Demand Curve, here:
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One of the trade-offs Tesla faces is between safety and the maximum range someone can drive an all-electric car before having to recharge it. For example, adding steel to a car makes it safer but also heavier, which results in fewer mileage between recharges. Assume that this trade-off is consistent with increasing costs of added safety. Draw a hypothetical production possibilities frontier that Tesla engineers face that show this trade-off.
Answer:
A creation conceivable outcomes outskirts demonstrates the most extreme sum that an economy can deliver.
Explanation:
The creation plausibility outskirts is a marginalist model that mirrors the most extreme amounts of merchandise and ventures that a nation or endeavour is fit for delivering in a given period and dependent on certain generation factors and innovative learning. Hence there are three circumstances in the profitable structure of a nation or endeavour:
Inefficient beneficial structure: When it is underneath the PPF, that is, either all assets are not utilized (inactive assets), or the innovation isn't satisfactory. Efficient beneficial structure: It is situated before the fringe or near it. There are no inactive assets and the best innovation is being utilized. Unattainable beneficial structure: It is over the generation potential outcomes. It is hypothetical since no nation or endeavour can deliver past its ability.The journal entry to record the acquisition of land and a building by issuing common stock
(A) debits Land, Building, and Common Stock.
(B) debits Land and Building and credits Common Stock.
(C) debits Land and credits Common Stock.
(D) debits Common Stock and credits Land and Building.
Answer:
(B) debits Land and Building and credits Common Stock.
Explanation:
As with the acquisition of land and building, there is an increase in asset called land and building and for this the land and building account will be debited.
Further, after this since the assets are acquired in exchange of common stock, there is issue of common stock, which shall be credited, as increase in common stock is credited.
Therefore, assets land and building will be debited and common stock will be credited.
The correct journal entry to record the acquisition of land and a building by issuing common stock is option (B), which debits Land and Building and credits Common Stock.
Explanation:The correct journal entry to record the acquisition of land and a building by issuing common stock is option (B) which debits Land and Building and credits Common Stock.
When a company acquires land and a building by issuing common stock, it increases the assets of Land and Building, which are recorded as debits. At the same time, it increases the liabilities of Common Stock, which is recorded as a credit.
For example, if the company acquires land and a building worth $100,000 by issuing 1,000 shares of common stock at a price of $100 per share, the journal entry would be:
Debit Land $100,000Debit Building $100,000Credit Common Stock $100,000
Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category.Data Amount ($)Delivery expense to customers via UPS 8Salaries of salespeople 3Chipset (the set of chips on the phone's motherboards) 58Exterior case for phone 9Assembly-line worker;s wages 9Technical custumer support hotline 6Depreciation on plant and equipment 75Rearrangement of production process 5Salaries of scientist 14
Answer:
Delivery expense to customers via UPS = 8 - Distribution
Salaries of salespeople = $3 - Marketing
Chip set (the set of chips on the phone's motherboards) = $58 - Direct Materials
Exterior case for phone = $9 - Direct Materials
Assembly-line worker;s wages = $9 - Direct Labor
Technical customer support hotline = $6 - Customer Service
Depreciation on plant and equipment = $75 - Manufacturing Overhead
Rearrangement of production process = $5 - Design
Salaries of scientist = $14 - R & D
Total cost for each value chain category
Direct Labor: $9
Direct Materials: $9 + $58 = $67
Manufacturing Overhead: $75
Customer Service: $6
Design: $5
R & D: $14
Marketing: $3
Distribution: $8
Final answer:
The costs can be classified into different categories in the value chain based on their place. The categories include Production, Delivery, Sales, and Support. Each category can be further broken down into subcategories such as Direct Materials, Direct Labor, and Manufacturing Overhead. More information is needed to calculate the total cost for each value chain category.
Explanation:
The costs mentioned in the question can be classified into different categories based on their place in the value chain. The different categories are: Production, Delivery, Sales, and Support. Within the production category, the costs can be further classified as: Direct Materials, Direct Labor, and Manufacturing Overhead.
Based on the given data, the costs can be classified as follows:
Delivery expense to customers via UPS: falls under the Delivery categorySalaries of salespeople: falls under the Sales categoryChipset: falls under the Production category, in the Direct Materials subcategoryExterior case for the phone: falls under the Production category, in the Direct Materials subcategoryAssembly-line worker's wages: falls under the Production category, in the Direct Labor subcategoryTechnical customer support hotline: falls under the Support categoryDepreciation on plant and equipment: falls under the Production category, in the Manufacturing Overhead subcategoryRearrangement of production process: falls under the Production category, in the Manufacturing Overhead subcategorySalaries of scientists: falls under the Production category, in the Manufacturing Overhead subcategoryTo calculate the total cost for each value chain category, you would need more information about the costs. The total cost is the sum of all costs within a particular category.
How much cash does the firm actually have? You are Olivia, a financial analyst who works for an investment bank in downtown Denver, Colorado. You are analyzing the current cash condition of Sukam Inc. You have the following information from the company's financial reports: The company reported net sales of $5,000 million. Assume that there were no noncash sales. Operating costs (excluding depredation and amortization) were 65% of its total revenues. Depreciation and amortization charges were 5% of total sales. Interest charges were 15% of EBIT with a tax rate of 40%. is the money that the business is left with after paying operating expenses, interest expense, and taxes. However, because some revenues and expense are not cash transactions, net cash flow indicates the true cash flow situation of the company. The company's current cash flow is: $1,275 million $765 million $1,015 million $506 million
Answer:
Net profit= $765000 million
Explanation:
Giving the following information:
The company reported net sales of $5,000 million.
Operating costs (excluding depredation and amortization) were 65% of its total revenues.
Depreciation and amortization charges were 5% of total sales. Interest charges were 15% of EBIT with a tax rate of 40%.
Revenues= 5000000
Operating costs= (5000000*0.65)= (3250000)
EBITDA= 1750000
Depreciation and amortization= (50000000*0.05)= (250000)
EBIT= 15000000
Interest= (1500000*0.15)= (225000)
Tax= (15000000-225000)*0.40= (510000)
Net profit= $765000 million