The First Church has been asked to operate a homeless shelter in part of the church. To operate a homeless shelter the church must hire a full time employee for $1,200/month to manage the shelter. In addition, the church would have to purchase $400 of supplies/month for the people using the shelter. The space that would be used by the shelter is rented for wedding parties. The church averages about 5 wedding parties a month that pay rent of $200 per party. Utilities are normally $1,000 per month. With the homeless shelter, the utilities will increase to $1,300 per month. What is the opportunity cost to the church of operating a homeless shelter in the church?

Answer:

payback period: 5.35 years

Explanation:

the payback period will be the time at which the project pays itself

it disregard the time value of money

the formula is:

[tex]\frac{investment}{cash \: flow} = payback[/tex]

as the fist cashflow are not regular we subtract them

1,450,000 - 305,000 - 290,000 = 855,000

and now we apply the formula

855,000 / 255,000 = 3,35294

we currently are on year 2 and we need 3.35294 more years

so the payback will occur at:

2 + 3.35 = 5.35

Answer:

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

W1: Risky Porfolio = 17%

W2: Risk Free Asset = 83%

E(Rp): Rate of Return: 6%

E(Rp) = W1 *R1 +   W2*R2

E(Rp) = 17%*16% + 83%*4% = 6%

Explanation:

To find the proportion of investment on each assets it''s necessary to applied the following equation:

E(Rp) = W1 *R1    +   W2*R2

To find W2 we define it as (1-w1) and then then the equation it's solved.

Where :

E(Rp) = Expected Return

W1 : Proportion of Risky Portfolio

R1 : Expected return of Risky Portfolio

W2: Proportion of Risk Free Asset

R2 : Expected return of Risk Free Asset

a. The proportion she should invest in the risky portfolio  P  is 0.17, and the proportion in the risk-free asset is  0.83. b. Standard deviation of the portfolio of the rate of return on her portfolio is 0.0433. c. 1. First client is more risk averse.

Let's address each part of the question step by step.

Given information:

- Expected return of the risky portfolio,  E([tex]r_P[/tex]) = 16%

- Standard deviation of the risky portfolio,  [tex]\sigma_P[/tex] = 26%

- Risk-free rate,  [tex]r_f[/tex] = 4%

- Required expected rate of return on the overall portfolio,  [tex]E(r_{\text{portfolio}}) = 6\%[/tex]

- Standard deviation constraint for the second client,  [tex]\sigma_{\text{portfolio}} \leq 23\%[/tex]

Part (a): Proportions to invest

Let  x  be the proportion invested in the risky portfolio  P , and  1 - x  be the proportion invested in the risk-free asset.

To achieve an expected return of 6% on the overall portfolio, we use the formula for the expected return of a portfolio:

[tex]E(r_{\text{portfolio}}) = x \cdot E(r_P) + (1 - x) \cdot r_f[/tex]

Substitute the given values:

[tex]0.06 = x \cdot 0.16 + (1 - x) \cdot 0.04[/tex]

Solve for  x :

0.06 = 0.16x + 0.04 - 0.04x

0.06 - 0.04 = 0.12x

0.02 = 0.12x

[tex]x = \frac{0.02}{0.12}[/tex]

x = 0.1667

So, the proportion she should invest in the risky portfolio  P  is 0.17, and the proportion in the risk-free asset is  0.83.

Part (b): Standard deviation of the portfolio

To find the standard deviation  [tex]\sigma_{\text{portfolio}}[/tex] of the overall portfolio:

[tex]\sigma_{\text{portfolio}} = \sqrt{x^2 \cdot \sigma_P^2}[/tex]

Substitute  x = 0.1667  and  [tex]\sigma_P[/tex] = 0.26 :

[tex]\sigma_{\text{portfolio}} = \sqrt{0.1667^2 \cdot 0.26^2} \\\\ \sigma_{\text{portfolio}} = \sqrt{0.02779} \\\\ \sigma_{\text{portfolio}} = 0.1667 \times 0.26 \\\\ \sigma_{\text{portfolio}} = 0.043342[/tex]

part (c): To determine which client is more risk-averse based on the given information, let's analyze the situation:

Given data:

- Expected return of the risky portfolio [tex]E(r_P) = 16\%[/tex]

- Standard deviation of the risky portfolio [tex]\sigma_P = 26\%[/tex]

- Risk-free rate  [tex]r_f[/tex] = 4%

Client 1:

Client 1 wants an expected rate of return on the overall portfolio equal to 6%. This means the client will allocate part of their investment to the risky portfolio and part to the risk-free asset.

Let  w  be the proportion invested in the risky portfolio.

The expected return on the complete portfolio  E([tex]r_c[/tex])  is given by:

[tex]E(r_c) = w \cdot E(r_P) + (1 - w) \cdot r_f[/tex]

Substituting the given values:

[tex]6\% = w \cdot 16\% + (1 - w) \cdot 4\%[/tex]

Solving for w :

0.06 = 0.16w + 0.04 - 0.04w

0.06 - 0.04 = 0.12w

0.02 = 0.12w

[tex]w = \frac{0.02}{0.12} \\\\ w = \frac{1}{6}[/tex]

So, Client 1 will invest [tex]\frac{1}{6}[/tex]  or approximately 16.67% of their total investment budget in the risky portfolio.

Client 2:

Client 2 wants the highest possible return but with a constraint on the standard deviation of the portfolio, which should not exceed 23%.

Given the information provided, we know that Client 2 is willing to accept a maximum standard deviation of 23%.

Risk Aversion Comparison:

To determine which client is more risk-averse, we typically consider the preference for risk in relation to the expected return. Client 1 is satisfied with a lower expected return (6%) and will allocate a smaller portion of their investment to the risky portfolio compared to Client 2, who seeks the highest possible return but with a constraint on risk (standard deviation).

Since Client 1 is willing to accept a lower expected return (6%) and allocates a smaller portion to the risky portfolio, it indicates a higher level of risk aversion compared to Client 2, who seeks maximum return while maintaining a risk constraint.

Therefore, Client 1 is more risk-averse.

Based on the choices provided:

- First client (Client 1) is more risk averse.

The complete question is:

Consider the following information about a risky portfolio that you manage and a risk-free asset: E(rP) = 16%, σP = 26%, rf = 4%. a. Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 6%.

a. What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset? (Round your answers to 2 decimal places.)

b. What will be the standard deviation of the rate of return on her portfolio? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

c. Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be no more than 23%. Which client is more risk averse? multiple choice. 1. First client 2. Second client

Answer:

1) Net sales: Income statement

2) Assets: Balance Sheet

3) Cash generated by operating activities: Cash flow statement

4) Retained earnings change: Retained earning statement

5) Total debt: Balance Sheet

6) Company performance: Income statement

7) Dividend: Retained earnings

8) Cash generation and spending: Cash flow statement

9) Financial position: Cash flow, Balance sheet, Income statement

Answer:

Bad debt expense $5.125

Explanation:

Initial Balance    

Accounts Receivable  $ 43.000  

Allowance for Uncollectible Accounts   $ 1.250

Entry    

Allowance for Uncollectible Accounts  $ 775  

Accounts Receivable   $ 775

New Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 475

Entry Adjustment

Bad debt expense  $ 5.125  

Allowance for Uncollectible Accounts   $ 5.125

END Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 5.600

The correct answer is c. The bad debt expense for 2016 would be: $5125

To calculate the bad debt expense for 2016, we need to follow these steps:

1. Determine the beginning balance of the Allowance for Uncollectible Accounts:

- Beginning balance: $1,250

2. Account for the write-offs during the year:

- Accounts written off: $775

3. Determine the required ending balance of the Allowance for Uncollectible Accounts:

- Required ending balance: $5,600

4. Calculate the Bad Debt Expense:

- The bad debt expense is the amount needed to adjust the allowance account to the required ending balance after considering the beginning balance and the write-offs.

Step-by-Step Calculation:

1. Beginning Balance of Allowance for Uncollectible Accounts:

Beginning Balance = $1,250

2. Less: Write-offs during the year:

Write-offs = $775

3. Balance after write-offs:

Adjusted Balance = $1,250 - $775 = $475

4. Required Ending Balance:

Required Ending Balance = $5,600

5. Calculate the Bad Debt Expense:

Bad Debt Expense = Required Ending Balance - Adjusted Balance

Bad Debt Expense = $5,600 - $475 = $5,125

Therefore, the bad debt expense for 2016 would be: 5125

Therefore, the correct option is c. 5125 .

The complete question  is:

On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and $1,250, respectively. During 2016, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,600 at December 31, 2016. Bad debt expense for 2016 would be:

a. $7400

b. $2400

c. $5100

d. $950

Answer:

A) labor productivity= 20 units per hours

B) labor productivity=  22.5 units per hours

C) %of productivity increase=  12.5%

Explanation:

Giving the following information:

Carbondale Casting produces cast bronze valves on a 10-person assembly line.

160 valves are produced during an 8-hour shift.

A) labor productivity= number of unit/number of hours= 160/8= 20 units per hours

B) labor productivity= number of unit/number of hours= 180/8= 22.5 units per hours

C) %of productivity increase= (22.5/20)-1= 0.125= 12.5%

a. The labor productivity of the line is 2 valve per hour shift.

b. The increase production to 180 units per 8-hour shift is 2.25 valve per hour shift.

c. The percentage of productivity increase is 12.5%.

a. Labor productivity:

Labor productivity=16 valves/ 8 hour shift

Labor productivity=

b. New labor productivity:

New labor productivity=18 valves/ 8 hour shift

New labor productivity=2.25 valve per hour shift

c. Percentage of productivity increase:

Percentage of productivity increase=0.25/2

Percentage of productivity increase=12.5%

Inconclusion the labor productivity of the line is 2 valve per hour shift.

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Answer:

overrated

Explanation:

The expected vale of the stock is below their current market value.

This means the expected earnings and dividends of the company are going to decrease in the following months. Or that other stocks semes more profitable, making this stock price going down:

This may occurs because, the price earings of this stock (times the Earings per share pays the market price is greater than other stock. Investor will move from a stock with a P/E of 20 to another which P/E is % as their return in investment will be higher.

Answer:

Explanation:

a. If supply decreases then the supply curve shifts to the left. If demand remains constant the equilibrium price increases and the equilibrium quantity decrease.  

b. If demand decreases then the demand curve shifts to the left. If supply remains constant the equilibrium price decreases and the equilibrium quantity decrease.

c. If supply increases then the supply curve shifts to the right If the demand remains constant the equilibrium price decreases and the equilibrium quantity increases.

d. If demand increases then the demand curve shifts to the right. If supply increases, then the supply curve shifts to the right. The equilibrium price is undetermined because it depends on the shift’s magnitude but in all cases the equilibrium quantity increases.

e. If demand increases then the demand curve shifts to the right. If supply remains constant the equilibrium price increases and the equilibrium quantity increase.

f. If supply increases then the supply curve shifts to the right. If demand decreases, then the demand curve shifts to the left. The equilibrium price is undetermined, and the equilibrium quantity always decreases.

g. If demand increases then the demand curve shifts to the right. If supply decreases, then the supply curve shifts to the left. The equilibrium price is undetermined because it depends on the shift’s magnitude but in all cases the equilibrium quantity increases.

h. If demand decreases (shift to the left) and supply decreases (shift to the left). The equilibrium price in all cases decreases and the equilibrium quantity is undetermined because it depends on the shift’s magnitude

A drop in supply causes the supply curve to move to the left. The equilibrium price rises and the equilibrium quantity declines if demand stays constant.  

b. The demand curve swings to the left if demand declines. The equilibrium price and equilibrium quantity both decline if supply stays constant.

c. The supply curve swings to the right as supply rises. The equilibrium price falls and the equilibrium quantity rises if the demand stays constant.

d. The demand curve moves to the right as demand rises. The supply curve moves to the right as supply grows. Because it depends on the size of the shift, the equilibrium price is unpredictable, but the equilibrium quantity always rises.

e. The demand curve moves to the right as demand rises. The equilibrium price rises and the equilibrium quantity rises if supply is constant.

b. The supply curve moves to the right as supply rises. The demand curve moves to the left if demand declines. The equilibrium quantity always drops, and the equilibrium price is unpredictable.

g. The demand curve moves to the right as demand rises. The supply curve moves to the left if supply declines. Because it depends on the size of the shift, the equilibrium price is unpredictable, but the equilibrium quantity always rises.

h. In the event that both supply and demand decline (move to the left). Every time, the equilibrium price declines and the equilibrium amount is unknown because it relies on the size of the shift.

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A market comprised of a downward-sloping demand curve that intersects an upward-sloping supply curve is said to be stable because at any price other than equilibrium, forces in the market move price towards the equilibrium.

Economic forces must be in balance for there to be economic equilibrium. Economic variables essentially hold true to their equilibrium values in the absence of outside influences. Market equilibrium is another name for economic equilibrium.

The set of economic factors (often price and quantity) that the economy is driven toward by supply and demand is known as its economic equilibrium.

Any number of elements, including interest rates or total consumer spending, can be included in the definition of the phrase "economic equilibrium."

The point of equilibrium denotes an idealized state of rest where all hypothetically necessary economic transactions have already taken place, given the initial conditions of all pertinent economic variables.

The trade of products and services can take place in a market, which is a gathering place for interested parties. Buyers and sellers are typically the parties engaged.

The market might be actual, like a physical store where people interact in person, or it could be virtual, like an online market, where there is no face-to-face interaction between buyers and sellers.

Markets might be real-world, like a physical store, or digital, like an online merchant. The black market, auction market, and financial market are more examples. Prices for products and services are set by markets based on supply and demand.

Hence, option D is the correct answer

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Answer:

Income Statement  

Sales  $7.500  

Salaries expense -$1.300  

Utilities expense -$1.100  

Net Income  5.100  

Explanation:

To prepare an income statement for Cowboy Law Firm, you would need to include the accounts Salaries Expense, Utilities Expense, and Service Revenue. The income statement would show the firm's revenue and expenses for the given period, and calculate the net income.

To prepare an income statement, you would need to consider the accounts that are relevant to calculating the firm's revenue and expenses. In this case, the accounts that should be included in the income statement are Salaries Expense, Utilities Expense, and Service Revenue. These accounts represent the firm's expenses and revenue for the period.

Using the given information, the income statement would look like this:

Income Statement for Cowboy Law Firm (December)

Revenue:

     Service Revenue: $7,500

Expenses:

     Salaries Expense: $1,300

     Utilities Expense: $1,100

Net Income: $5,100

Answer:

Teller's break-even point in sales dollars for 2012 is $400,000

Explanation:

The formula to compute the break even point in dollars is shown below:

Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)

where,

Fixed expense is $120,000

And, the contribution ratio equals to

= (Contribution per unit)  ÷ (sales per unit) × 100

where,

Contribution is = Selling price - variable cost per unit

                        = $300 - $210

                        = $90 per unit

Now put the values to the above formula

So, the ratio would be

= ($90 per unit) ÷ ($300 per unit) × 100

= 30%

Now put the values to the above formula

So, the value would be

= $120,000 ÷ 30%

= $400,000

Answer:

Rottweiler's Net Capital Spending for 2008: $0,465 million.

Explanation:

December 31, 2007 Net Fixed Assets of $1.875

Dureing 2008 Depreciation Expense of -$0,220

December 31, 2008 Net Fixed Assets of $1.655

Net Capital Spending for 2008                 $0,465 .

December 31, 2008 Net Fixed Assets of $2.120

Answer:

Net Income         192,640‬

Explanation:

For the accrual basis, we will consider the revenue ercognized and the expenses incurred regardless, of the payment date or collection date.

This means we will not focus on cash, we will focus in the accrued revenues and expenses for the period:

Revenues                                 378,400

Expenses with deprecation    (185,760)  

                     Net Income         192,640‬

The cash payment on the computer and the loan are not revenues or expenses, are considered for the cash flow statement.

Answer:

Gross profit would be $86.000

Explanation:

Gross Margin income statement  

Sales $ 190.000

Sales Discount -$ 5.000

Sales Return &  Allowances -$ 6.000

Cost of Goods -$ 93.000

Gross Profit $ 86.000

Gross Profit does not take operating expenses into account.

Answer:

The low-attendance day falls on an autumn Wednesday, while the high-attendance day falls on a summer Saturday.

Explanation:

There are no rare class of goods which do not follow the Law of Demand

The most probable reason may be the dates are at different time period, when the demand is lower and therefore the price must be lower to generate  enought attendance  to make it profitable. While, the second date is onpeak demand.

The increase in attendance at the theme park when the price is higher can be explained by the concept of price elasticity of demand. When a good or service has elastic demand, a higher price can lead to an increase in revenue due to a greater increase in attendance. In this case, the higher price at the theme park results in more people attending, resulting in higher total revenue.

The concept at play here is called price elasticity of demand. The demand curve shows how the quantity demanded of a good or service changes in response to changes in its price. When a good or service is elastic, a small change in price leads to a large change in quantity demanded. Conversely, when a good or service is inelastic, a change in price has a relatively small impact on quantity demanded.

In this case, the theme park sees an increase in attendance when the price is higher because the demand for the park is elastic. This means that when the park increases its price, fewer people are willing to pay and attend. However, the higher price per person compensates for the decrease in attendance, resulting in higher total revenue for the park.

For example, on the day when the park charges $40 per person, 10,000 people visit, resulting in a total revenue of $400,000. On the day when the park charges $60 per person, 20,000 people visit, resulting in a total revenue of $1,200,000. Even though the price per person is higher, the park earns more revenue because the increase in attendance more than offsets the decrease in price.

Answer:

$12,250

Explanation:

The profit-maximizing output is at MC = MR

We are given with Marginal Cost we need to find Marginal Revenue

MR = additional revenue for an additional unit

P = 150 – 0.25Q

Q = (150 - P)/0.25 = 600 - 4P

Total Revenue= P x Q = (150 - 0.25Q)Q

TR = 150Q-0.25Q^2

MR = will be the slope of the total revenue function:

dTR/dQ -0.5Q + 150

Now we equalize MR and MC

-0.5Q + 150 = 10 + 0.5Q

Q = 140

P when Q = 140

P = 150 - 0.25 Q = 150 - 0.25(140) = 150 - 35 = 115

Producer surplus:(using marginal cost)

[tex]\int\limits^{140}_0 {10 + 0.50q} \, dq[/tex]

(P(140) - P(0)) x Q140

(80 - 10 ) x 140 = 9,800

Consumer surplus:

(P0 - Pm ) x Qm /2

(150 - 115) x 140 / 2 = 2.450‬

Total Surplus:  9,800 + 2,450 = 12,250

Final answer:

The profit-maximizing quantity for the doll company American Girl can be found by setting marginal revenue equal to marginal cost. The total surplus at the profit-maximizing output level is $18,120.

Explanation:

The profit-maximizing quantity can be determined by finding the level of output at which marginal revenue equals marginal cost. In this case, we are given the inverse demand curve and the marginal cost curve.

To find the profit-maximizing quantity, we need to equate marginal revenue (MR) with marginal cost (MC). We can do this by setting the expressions for MR and MC equal to each other and solving for Q:

150 - 0.25Q = 10 + 0.50Q

By solving this equation, we find that Q = 80.

Once we have the profit-maximizing quantity, we can calculate the total surplus by subtracting the total cost from the total revenue:

Total revenue = price * quantity = (150 - 0.25Q) * Q

Total cost = variable cost + fixed cost = (10 + 0.50Q) + 0 (since there is no fixed cost mentioned)

The total surplus at the profit-maximizing output level is obtained by subtracting total cost from total revenue:

Total surplus = (150 - 0.25Q) * Q - (10 + 0.50Q)

Plugging in Q = 80 into the equation, we can calculate the total surplus.

The total surplus at the profit-maximizing output level is $18,120.

Answer:

10,970,000 x 21% = 2,303,700‬ income tax expense

10,755,000 x 21% = 2,258,55‬0 income tax payable

Explanation:

permanent difference:

sale of fixed asset          (117,000-73,500)       43,000

tax-exempt life insurance proceeds.            (258,000)

total                                                                  (215,000)

temporary difference ( which generates tax liability or benefit )

 170,000 bad debt expense

(300,000) higher tax depreciation

 (130,000) deferred tax liability

The taxable income will be for

10,840,000

-   215,000 permanent difference

+    130,000   temporary difference

10,755,000

Then, we apply the 21% corporate tax rate which is the income tax rate for 2019

10,755,000 x 21% = 2,258,55‬0 income tax payable

The accounting income tax expense will be calculate based on the temporary difference only:

10,840,000 + 130,000 = 10,970,000 x 21% = 2,303,700‬ income tax expense

Answer:

g = 16%

dividends yield:

Year 1 4.60%

Year 3: 4.78%

expected rate of return:

year 1 20.6%

year 3 20.78%

Explanation:

grow rate:

D1 /D0 = g

1.16/1.00 - 1 = 0.16

1.3456/1.16 - 1 = 0.16

the grow rate is 16%

dividend yield:

dividends/stock price =  dividend yield

1/21.7 = 0,0460 = 4.60%

1.3456/28.15 = 0,04780 = 4.78%

expected rate of return:

dividend yield + grow rate

4.60% + 16% = 20.6%

4.78% + 16% = 20.78%

The growth rate in dividends is calculated to be 7.71% using the given dividends details. The expected dividend yield is found to be 4.61% by dividing the annual dividend payment by the stock’s price. Subsequently, the expected total return, which sums up the dividend yield and the dividend growth rate, is 12.32%.

First off, to calculate the growth rate in dividends, we'd need to understand that it's the percentage increase in the amount of dividends from one year to the next. The average growth rate, g, is then calculated as: g = [(D2/D1)^(1/2)-1] * 100 where D2 is dividend in year 2, D1 is dividend in year 1. So, g = [($1.16/$1.00) ^ (1/2) - 1] * 100 = 7.71%.

To calculate the expected dividend yield, you take the annual dividend payment and divide it by the stock's price. Therefore, the dividend yield for the first year would be: Dividend yield = D1 / P = $1.00 / $21.70 = 4.61%.

Lastly, the expected total rate of return, often used to compare the performance of different investments, is the sum of the expected dividend yield and the dividend growth rate. So, in this case, Expected total return = Expected dividend yield + Dividend growth rate = 4.61% + 7.71% = 12.32%. As such, the expected total return is 12.32% if the market is in equilibrium.

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Answer:

(C) input prices; Supply decreases

Explanation:

The input prices are all the cost Anonio inccurs to produce a pizza.

The pepperoni will be part of his input price.

The lowest price at which Antonio can sale a pizza is determinate by his cost.

Now Antonio need to sell their pizzas for more cash. So this increase generated a supply decrease.

Answer:

B) Climate of trust

Explanation:

The problem seems to be Climate of trust. This fundamental factor allows teams to perform better than the sum of the performance of each of its members. Through an environment of trust, each member is supported and coached by other team members making individual improvements and increasing synergies within the team. A climate of trust is not exempt from criticism, but this criticism is understood as a helping tool rather than an instrument of personal harm. Finally, a climate of trust allows that errors and mistakes become a useful source of learning.

Answer Explanation

An expression about whether financial statements conform with generally accepted accounting principles

Audition. If the statement had been done conformed to GAAP it will be a positive audit.

business that raises money by issuing shares of stock:

Corporation, raise fund from issuance of stock

The portion of stockholders’ equity that results from receiving cash from investors

Capital or total paid-in capital

Obligations to suppliers of goods

Account Payable is the liability account to represent thedebt with suppliers

Amounts due from customers

Account receivable represent the amount to collect from customer

A party to whom a business owes money

It is a debtor to the company and will be state under:

Account Receivable or Note receivable accounts

A business that is owned jointly by two or more individuals but does not issue stock.

partnership are integrate by more than one party

The question asked to match terms with definitions related to business and accounting, such as Audit Opinion, Publicly-Traded Company, Paid-In Capital, Accounts Payable, Accounts Receivable, Creditor, Shareholder, and Partnership.

This question relates to various concepts in business and accounting. I'll match each term to the definition.

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Answer:

The gross profit is $39,000

Explanation:

The computation of the gross profit is shown below:

= Sales revenue - cost of goods sold

= $104,000 - $65,000

= $39,000

The gross profit always be computed by subtracting the cost of goods sold from the sales revenue. Therefore, we apply this formula to find out the gross profit.

All these items which is shown above will record in the income statement.

Answer:

Net income = $ 150500

Return on assets = 20.07 %

Explanation:

Net income = (annual sales)*7%

                    = $ 2150000*7%

                    = $ 150500

return on assets = [net income*100]/[assets to support expansion]

                           = (150500)(100)/(750000)

                           = 20.07 %

Therefore, the Net income for the year is $ 150500 and the Return on assets for the year is 20.07 %.

Answer:

Cost of goods manufactured= $16,129

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

In this exercise:

Cost of goods manufactured:

Direct materials= $7,700

Direct Labor=179hours  * $31=$5,549

Factory overhead= $32*90 hours= $2,880

Total= $16,129

Answer: 21.32 per hour

Explanation:

Guitars produced each month = 100

considered good enough to sell = 82%

Remaining are scrapped = 18 %

Selling price of each guitar = $260

Each guitar requires = 10 labor hours

Each employee works an average = 160 hours per month

Labor is paid = ​$11 per​ hour

materials cost = ​$40 per​ guitar

overhead = $4,200

Therefore,

Number of guitars are good enough to sell = 82% of 100

                                                                   = 82 guitars

Value of output = Number of guitars sell × Selling price of each guitar

                        = 82 × $260

                        = $21,320

Input in labor hours = Guitars produced each month × Labor hour employed in each guitar

                               = 100 × 10

                               = 1,000 hours

Labor productivity =[tex]\frac{output}{input}[/tex]

                                =  [tex]\frac{21,320}{1,000}[/tex]

                                = 21.32 per hour

Answer:

The 2019 book-tax difference associated with the stock options is $24,500 unfavorable

Explanation:

The steps to compute the book-tax difference is explained below:

Step 1: First we have to divide the total stock amount by two years so that we can find out the one year amount

Step 2: Then, compute the option amount for 2019, and subtract it from step 1

So, the total stock amount for year 1 equals to

= Issued non qualified stock options ÷ 2 years

= $59,000 ÷ 2

= $29,500

Now, the book difference would equal to

= $29,500 - (1,000 options × $5)

= $29,500 - $5,000

= $24,500 unfavorable

Final answer:

The 2019 book-tax difference for the exercised stock options is negative $24,500. This is calculated by subtracting the tax benefit of $5,000 (1,000 options with a $5 bargain element each) from the book expense of $29,500 recognized for the options that vested in 2019.

Explanation:

The question deals with the calculation of the book-tax difference related to nonqualified stock options exercised by employees of Orange Inc. In 2019, 1,000 options are exercised with a bargain element of $5 each. The bargain element represents the difference between the stock's market value at the time of exercise and the exercise price that employees pay to acquire the stock. To compute the book-tax difference for these exercised options, we need to consider the total taxable benefit received by the employees, which is the bargain element times the number of options exercised ($5 times 1,000 = $5,000). On the book side, if the expense recognized for accounting purposes over the vesting period matches the total value given, we would take half of the $59,000 value recognized in 2018 and the other half in 2019.

The book expense related to these options for 2019 is therefore $29,500 (half of the total $59,000 value). The book-tax difference for 2019 is the difference between the tax benefit and the book expense recognized, which would be the tax benefit of $5,000 subtracted from the book expense of $29,500, resulting in a negative book-tax difference of $24,500 for 2019. This figure represents the amount deducted for accounting purposes that exceeds the tax benefit realized by the employees for the options exercised in 2019.

Answer:

Using the straight-line method, the book value at December 31, 2018 would be $53.760

Explanation:

                2018 2019 2020 2021 2022

Cost      67200 53.760 40.320 26.880 13.440

Dep-Acu      13.440 13.440 13.440 13.440 13.440

Book Value53.760 40.320 26.880 13.440 0

Answer:

The correct answer is option A.

Explanation:

Structural unemployment is the type of unemployment that arises because of mismatch in skills that the workers possess and the skills that the employers want.  

In the given example, Dora is unemployed because she does not have the skills required to work in industries other than a textile mill. This is an example of structural unemployment.  

Marsha's case is an example of cyclical unemployment as it caused due to recession.  

Alan and Jim's cases are examples of frictional unemployment. Both of them remained unemployed for a short time when moving from one job to another.

In the provided options, Dora's case where she lost her job when the textile mill closed and doesn't possess the skills for another industry, resulting in her being unemployed for over a year, is an example of structural unemployment. Structural unemployment is due to the mismatch of skills between unemployed individuals and those needed for available jobs.

The example of structural unemployment in the options provided is: A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year.

Structural unemployment occurs when a labor market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed and the skills needed for the available jobs. In Dora's case, the industry she was employed in closed down, and she does not possess the skills necessary to secure another job in a different industry. This leads to a long term unemployment scenario because she can't transfer her skills to another industry or job. This is a classic example of structural unemployment.

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Answer:

[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]

Explanation:

Note that Total Costs are given by fixed costs (F) and marginal costs (m) that depend on the production level of the firm

[tex]CT_i=F+mq_i[/tex]

for i=1,2. The market demand is given by

[tex]p=a-bQ[/tex]

where [tex]Q=q_1+q_2[/tex] is the total production, so it's the sum of each firms production

Firm 1 will maximize it's own profits

[tex]max\,\Pi_1=p=(a-b(q_1+q_2))q_1-F-mq_1[/tex]

The first order conditions (take derivative of the profit with respect to [tex]q_1[/tex] are given by

[tex]a-2 b q_1-b q_2-m=0[/tex]

Then the best-response function for Firm 1 will be

[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]

and the solution for Firm 2 would be symmetric.

Note that only marginal costs are relevant for getting the best-response function, so adding fixed costs (F) don't change the results

Answer:

B. C = D

Explanation:

C= Total Capital of the partnership before the admission of a new partner

D= Total capital of the partnership after the admission of the new partner

The purchase occurs outside the partnership (but with the partners approvals)

The partnership will only credit the new partner and debit the seller partner by the amount they agree on.

The partnership received no assets and therefore his capital remains at same value.

If a new partner purchases an interest in capital directly from the old partners, the correct statement is C = D.

If a new partner purchases an interest in capital directly from the old partners, the correct statement is C = D. This means that the total capital of the partnership before the admission of the new partner is equal to the total capital of the partnership after the admission of the new partner. It also implies that the amount of capital credited to the new partner is equal to the amount of tangible assets contributed by the new partner into the partnership.

Answer:

The value of the bond = $1,132.37

Explanation:

The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid quarterly and the par value of the bond that will be paid at the end of 12 years.  

During the 12 years, there are 48 equal periodic coupon payments that will be made. Given a par value equal to $1,000, in each  year, the total coupon paid will be [tex] 1,000*0.13 [/tex]= $130. This annual payment will be split into four equal payments equal to [tex]\frac{130}{4}[/tex] =$32,5 . This stream of cash-flows is an ordinary annuity.

The required rate of return is to 11% per annum  which equates to 2.75% per quarterly period.

The  PV of the cash-flows = PV of the coupon payments + PV of the par value of the bond

=32.5*PV Annuity Factor for 48 periods at 2.75%+ $1,000* PV Interest factor with i=2.75% and n =48

= [tex]32.5*\frac{[1-(1+0.0275)^-^4^8]}{0.0275}+ \frac{1,000}{(1+0.0275)^4^8} [/tex]=$1,132.37