Answer:
$25
Explanation:
Willingness to pay is the highest amount a consumer is willing to pay for a service
A tax is a compulsory sum levied on goods and services by the government. Taxes increases the price of goods
deadweight loss of the tax is the reduction in demand or efficiency as a result of tax
Consider a hypothetical economy. Households spend $0.90 of each additional dollar they earn and save the remaining $0.10. The spending multiplier for this economy is ___________. Suppose investment in this economy decreases by $200 billion. The decrease in investment will lead to a decrease in income, generating a decrease in consumption that decreases income yet again, and so on.
Answer:
Spending multiplier = 10Change in consumption = -$180 billionExplanation:
The spending multiplier is calculated by the formula:
= 1 / Marginal propensity to save
The marginal propensity to save is the proportion of every additional dollar that is saved which is this case is $0.10 which is 10%.
Spending multiplier is:
= 1 / 0.1
= 10
Change in consumption as a result of the decrease:
= -200 * marginal propensity to consume
= - 200 * 0.9
= -$180 billion
Rommer Company purchases Daley Inc. for cash on January 1, 2018. The book value of Daley Company's net assets, as reflected on its December 31, 2017 statement of financial position is . An analysis by Rommer on December 31, 2017 indicates that the fair value of Daley's tangible assets exceeded the book value by , and the fair value of identifiable intangible assets exceeded book value by . How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.? A. B. C. D.
Answer:
$85,000
Explanation:
Calculation to determine How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.?
Using this formula
Good will=purchases-book value - fair value of tangible assets-fair value of intangible assets
Let plug in the formula
Goodwill=$930,000-$750,000-$50,000-$45,000
Goodwill=$85,000
Therefore How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc. is $85,000
Renata Corporation purchased equipment in 2018 for $244,800 and has taken $110,160 of regular MACRS depreciation. Renata Corporation sells the equipment in 2020 for $146,880. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $fill in the blank 1 of which $fill in the blank 2 is treated as ordinary income due to § 1245 recapture
Answer and Explanation:
The computation of the amount and the character of the renata gain or loss is shown below;
purchased equipment in 2018 $244,800
regular MACRS depreciation taken -$110,160
WDV as per MACRS method $134,640
Less: Sell the equipment -$146,880
loss on sale of equipment -$12,240
There is a loss and that would be short term capital loss
. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
Question Completion:
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 38,500 October 28,500 August 87,000 November 15,000 September 56,000 December 15,500 The selling price of the beach umbrellas is $14 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $504,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 91,550 feet September 30 ? feet Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $49,290. Required: 1.
Answer:
Milo Company
July Aug. Sept. Total
1. Estimated sales $539,000 $1,218,000 $784,000 $2,541,000
2. Cash collections $489,300 $715,750 $1,026,900 $2,231,950
July Aug. Sept. Oct.
3. Production units 45,775 72,350 51,875 26,475
July Aug. Sept. Total
4. Quantity of Gilden (feet) 236,250 248,450 156,700 641,400
5. Cost of Purchases $141,750 $149,070 $94,020 $384,840
6. Cash disbursements for raw
material purchases $120,165 $145,410 $121,545 $387,120
Explanation:
a) Data and Calculations:
Selling price of the beach umbrellas = $14 per unit
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 38,500 87,000 56,000 28,500 15,000 15,500
Sales $504,000 539,000 1,218,000 784,000 399,000 210,000 217,000
Sales Collection:
June July Aug. Sept. Total
Sales on credit 539,000 1,218,000 784,000 $2,541,000
Sales Collection:
30% month of sale 161,700 365,400 235,200 762,300
65% month following 327,600 350,350 791,700 1,469,650
5% uncollectible
Total collections $489,300 $715,750 $1,026,900 $2,231,950
July August September October
Beginning Inventory $75,600 $80,850 $182,700 $117,600
Ending Inventory 80,850 182,700 117,600 59,850
Sales 539,000 1,218,000 784,000 399,000
Finished Goods Inventory:
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 36,000 38,500 87,000 56,000 28,500 15,000 15,500
Ending 5,775 13,050 8,400 4,275 2,250
Available 41,775 51,550 85,400 60,275 30,750
Beginning 5,400 5,775 13,050 8,400 4,275
Production 36,375 45,775 72,350 51,875 26,475
Raw materials inventory:
June July Aug. Sept. Oct.
Production units 36,375 45,775 72,350 51,875 26,475
Production needs 145,500 183,100 289,400 207,500 105,900
Ending inventory 91,550 144,700 103,750 52,950
Available materials 237,050 327,800 393,150 260,450
Beginning inventory 91,550 144,700 103,750 52,950
Purchases 236,250 248,450 156,700
Cost of Purchases $141,750 $149,070 $94,020
Payment for purchases:
Accounts payable $49,290
50% month of purchase 70,875 74,535 47,010
50% following purchase 70,875 74,535
Total payments $120,165 $145,410 $121,545
Larry estimates that the costs of insurance, license, and depreciation to operate his car total $320 per month and that the gas, oil, and maintenance costs are 14 cents per mile. Larry also estimates that, on average, he drives his car 1,400 miles per month. Required: a. How much cost would Larry expect to incur during April if he drove the car 1,529 miles
Answer:
See below
Explanation:
The question above is incomplete. The concluding part is
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 1,400 mile month. Yes or No
Given the above information,
a. Total number of miles driven = 1.529 miles
Total cost = Fixed cost + Variable cost × Number of miles driven
= $320 + $0.14 × 1,529
= $320 + $214.06
= $534.06
b. Since $320 per month is the fixed, the fixed cost per mile will decrease with the increase in number of miles driven . It means that if he drives less than 1,400 miles , the actual cost will be more than the cost based on predetermined overhead rate of the cost.
No. It would not be meaningful for Larry to calculate an estimated average cost per mile for a typical 1,400 mile month.
Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs PoolCost DriverOverhead Cost Budgeted Level for Cost Driver Quality controlNumber of inspections$77,000 1,100 Machine operationMachine hours 153,000 1,500 Materials handlingNumber of batches 1,200 30 Miscellaneous overhead costDirect labor hours 57,000 5,700 Sheen Co. has an order for 1,000 laser printers that has the following production requirements: Number of inspections295 Machine hours240 Number of batches6 Direct labor hours770 Using activity-based costing, applied machine operation overhead for the 1,000 laser printers order is: Multiple Choice
Answer:
Total allocated costs= $53,070
Explanation:
First, we need to calculate the allocation rates using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Quality control= 77,000 / 1,100 = $70 per inspection
Machine operation= 153,000 / 1,500 = $102 per machine hour
Materials handling= 1,200 / 30 = $40 per batch
Miscellaneous overhead cost= 57,000 / 5,700= $10 per labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Quality control= 70*295= 20,650
Machine operation= 102*240= 24,480
Materials handling= 40*6= 240
Miscellaneous overhead cost= 10*770= 7,700
Total allocated costs= $53,070
Farm products which are perishable and seasonal nature are supplied by
Answer:
★ Farm products which are perishable and seasonal nature are supplied by many producers.
Explanation:
Hope you have a great day :)
One of the biggest differences between men and women consumers is that men tend to stay loyal to a store. Women are much more ready to shop around-- perhaps because they demand more from their products than men. Andrea purchased a copy of Fit magazine because it contained an article about selecting the right jogging suit. The enduring belief that it is a person:______.
Answer:
Since marketing is the process of creating, communicating and delivering products to customers with the aim of satisfying their needs, the purpose of a marketing philosophy is to identify and fulfill those needs, as well as wants and demands.
The efficient market hypothesis suggests that: Multiple Choice while individuals can be irrational, collectively they will not. because individuals are rational, collectively they are also rational. irrationality must a part of every economic model. asset price bubbles are efficient.
Answer: asset price bubbles are efficient.
Explanation:
The efficient market hypothesis simply states that all information are reflected by the share prices.
The efficient market hypothesis suggests that asset price bubbles are efficient. We should note they economic bubbles take place when the price of assets increases more then their true economic value but late falls.
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: ProductSelling Price per UnitVariable Cost per UnitFixed Costper UnitDL Hoursper UnitA (Anchor bolts)$4.00 $1.00 $2.00 2 B (Bearings)$3.50 $0.50 $2.00 2 C (Castings)$6.00 $2.00 $3.00 3 There are 150 direct labor hours available. Machine-hour capacity allows 100 anchor bolts, only; 50 bearings, only; 40 casters, only; or any combination of the three that does not exceed the capacity. The direct labor hour constraint for Harrington's linear programming model is: ___________
Answer:
Labour hours constraint : 2a + 2b + 3c ≤ 150
Explanation:
Linear programming is a mathematical model that is used to solve a problem when a firm wants to maximize profit in the midst of multiple resource constraints.
The following steps should be followed:
Step 1: Define the variables
a= the units of product Anchor
b= the units of product Bearing
c= the units of product Casting
Step 2: Define the constraints:
The constraints represent the limitations which could be resource; in this case machine hours and direct labour hours. Since the constraint in focus is labour hours , so we only consider it.
Subject
Constraints: Labour hours : 2a + 2b + 3c ≤ 150
Non-negativity constraints a, b , c ≥ 0
Since the total available labour hours is 150 hours then the total consumption hours can either be equal to or less than 150, but can never be higher than 150.
The labour hours constraint is represented by 2a + 2b + 3c ≤ 150
The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,400 direct labor-hours will be required in February. The variable overhead rate is $8.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $108,780 per month, which includes depreciation of $18,080. All other fixed manufacturing overhead costs represent current cash flows.The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be:_____.
a. $193.690.
b. $211,850.
c. $112,940.
d. $80,750.
Answer:
See below
Explanation:
The computation of overhead rate for February is seen below
First, we need to determine the fixed manufacturing overhead per labor hour
Fixed manufacturing overhead per direct labor hour = Total manufacturing overhead ÷ Total direct labor hours
= $108,780 ÷ 7,400
= $14.7
Predetermined overhead rate = Variable overhead rate + Fixed manufacturing overhead rate
= $8.50 + $14.70
= $23.2 per direct labor hour
As the new profit center manager, you switch carriers to a more expensive, but quicker, more responsive transportation carrier. You justify this because when using a(n) ____________ perspective, your overall inventory and warehouse savings more than offset the increase in transportation costs. Group of answer choices lane operations economic order quantity total cost ABC
Answer:
You justify this because when using a(n) _____ABC_____ perspective, your overall inventory and warehouse savings more than offset the increase in transportation costs.
Explanation:
The ABC perspective allocates overhead costs based on the cost drivers and the level of activity consumed by each cost driver. This is the best cost allocation basis. ABC is justified by the fact that activities consume resources or cause costs to be incurred. As a profit center manager, your focus should be on minimizing the activities that drive up costs instead of just focusing on mere cost reduction without paying attention to the cost drivers.
The Consumer Price Index (CPI) is determined each month by multiple choice 1 averaging all the prices of goods and services in the economy. estimating the prices of goods and services in the economy at the same rate as the cost of living increases. comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in cities around the country. comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.
Answer:
The Consumer Price Index (CPI) is determined each month by
comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.
Explanation:
The US Consumer Price Index (CPI) is an important statistical tool for identifying inflation and deflation periods in the US economy. It computes the weighted average of prices of a predetermined basket of consumer goods and services. With the CPI changes, the assessment of the general cost of living in the economy becomes easier.
The campaign manager for a doomed candidate is considering which states to visit during the last frenzied campaign week leading up to the nationwide election. Pennsylvania (P), Wisconsin (W), Florida (F), New York (Y), and North Carolina (C) are all aching for one last visit, but the candidate has only 80 hours and $250 million left in her campaign fund. A visit to Pennsylvania takes 10 hours and costs $15 million but earns 1% of the electorate. A visit to Wisconsin takes 15 hours and costs $20 million and earns 1.5%; a visit to Florida is only $8 million but takes 16 hours and earns 2%, and a visit to New York costs $25 million, requires 2 hours and earns 2% of the electorate. North Carolina requires 18 hours and $22 million per trip but earns 3% of the electorate. What is the objective function if the campaign manager wants to earn the highest electorate
Answer: maximize P + 1.5W + 2F + 2Y + 3C
Explanation:
The objective function refers to an equation that is used in describing the target of production output which maximizes profits.
The objective function is used to determine the profitability of a business as profits are maximized while losses are minimized.
The objective function if the campaign manager wants to earn the highest electorate will be to maximize P + 1.5W + 2F + 2Y + 3C
Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended November 30, 2020 Sales revenue $7,465,900 Cost of goods sold Beginning inventory $1,868,500 Purchases 4,450,600 Goods available for sale 6,319,100 Ending inventory 1,331,800 Total cost of goods sold 4,987,300 Gross profit 2,478,600 Operating expenses 1,120,500 Net income $1,358,100 Additional information: 1. Accounts receivable increased $205,900 during the year, and inventory decreased $536,700. 2. Prepaid expenses increased $179,800 during the year. 3. Accounts payable to suppliers of merchandise decreased $345,700 during the year. 4. Accrued expenses payable decreased $105,800 during the year. 5. Operating expenses include depreciation expense of $95,300. Prepare the operating activities section of the statement of cash flows using the direct method
Answer:
Cash Flow From Operating Activities
Cash Receipt from Customers $7,260,000
Cash Paid to Suppliers and Employees ($6,294,700)
Cash Provided by Operating Activities $965,300
Explanation:
Step 1 : Cash Paid to Suppliers and Employees Calculation
Cost of goods sold $4,987,300
Add Operating expenses $1,120,500
Total $6,107,800
Adjustments :
Depreciation expense $95,300
Decrease in Inventory ($536,700)
Increase in Prepaid Expenses $179,800
Decrease in Accounts Payable $345,700
Decrease in Accrued Expense Payable $105,800
Cash Paid to Suppliers and Employees $6,294,700
Step 2 : Cash Receipt from Customers Calculation
Sales revenue $7,465,900
Less Increase in Accounts receivable ($205,900)
Cash Receipt from Customers $7,260,000
The following information pertains to Lance Company.
1. Cash balance per bank, July 31, $8,732.
2. July bank service charge not recorded by the depositor $45.
3. Cash balance per books, July 31, $8,768.
4. Deposits in transit, July 31, $3,500.
5. $2,023 collected for Lance Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Lance Company.
6. Outstanding checks, July 31, $1,486.
Required:
Prepare bank reconciliation at July 31, 2022.
Answer and Explanation:
The preparation of the bank reconciliation statement is presented below:
Balance as per bank $8,732.00
Add: Deposit in transit $3,500.00
Less: Outstanding checks -$1,486.00
Adjusted bank balance $10,746.00
Balance as per books $8,768.00
Add: EFT received from customer $2,023.00
10791.00
Less: Service charges -$45.00
Adjusted book balance $10,746.00
The Lance Company's Bank Reconciliation , as at July 31, 2022 is shown in the attached image below.
Bank reconciliation is the process of comparing and reconciling the cash balance recorded in a company's books (the "book balance") with the balance reported by the bank in its statement (the "bank balance"). It aims to identify and resolve any discrepancies between the two balances, ensuring that the company's financial records accurately reflect its actual cash position. The purpose of bank reconciliation is to ensure the accuracy and reliability of the company's financial records.
Learn more about bank reconciliation here:
https://brainly.com/question/28390711
#SPJ6
Consider two perfectly negatively correlated risky securities, A and B. Security A has an expected rate of return of 12% and a standard deviation of return of 17%. B has an expected rate of return of 9% and a standard deviation of return of 14%.
Required:
a. What are the weights of A and B in the global minimum variance portfolio respectively?
b. What is the rate of return on the risk-free portfolio that can be formed with the two securities ?
Answer:
A) Weight of Security A = 0.45
Weight of Security B = 0.55
B)Risk free rate = 10.35%
Explanation:
We are given;
A) Expected rate of return for Security A; ERR = 12%
Standard deviation of return for Security A; SD = 17%
Expected rate of return for Security B; ERR = 9%
Standard deviation of return for Security B; SD = 14%
Now, formula for weight of Security A is;
Weight of security A = SD of security B ÷ (SD of security B + SD of security A)
Weight of Security A = 14%/(14% + 17%)
Weight of Security A ≈ 0.45
Weight of Security B = 1 - weight of Security A
Weight of Security B = 1 - 0.45
Weight of Security B = 0.55
B) Formula for the risk free rate is;
Risk free rate = (weight of Security A × ERR of security A) + (weight of Security B × ERR of security B)
Risk free rate = (0.45 × 12%) + (0.55 × 9%)
Risk free rate = 10.35%
Question 4 of 10
Which one of these documents itemizes the closing costs and explains the terms of your loan?
O Appraisal
O Closing disclosure
Deed
O Affidavit
Continue
Chris invests a total of $19,000 in two accounts. The first account earned a rate of return of 13% (after a year). However, the second account suffered a 2% loss in the same time period. At the end of one year, the total amount of money gained was $1,495.00. How much was invested into each account
Answer:
Amount invested in account with 13% return = $12499.97 rounded off to 12500
Amount invested in account with -2% return = 6500.03 rounded off to 6500
Explanation:
To calculate the amount invested in each account, we must first calculate the total return earned by Chris as a percentage of his investment.
Total Return/gain = 1495 / 19000 = 0.078684 or 7.8684%
To calculate the overall return, we must use the weighted average of returns provided by each account. The weighted average can be calculated as follows,
Average Overall Return = wA * rA + wB * rB
Where,
w represents the weight of investment in each account as a percentage of overall investmentr represents the return provided by each accountLet weight of investment in account that provided 13% return be x
Let weight of investment in account that provided -2% return be (1 - x)
0.078684 = x * 0.13 + (1-x) * -0.02
0.078684 = 0.13x - 0.02 + 0.02x
0.078684 + 0.02 = 0.15x
x = 0.098684 / 0.15
x = 0.65789333333 or 65.789333333%
Amount invested in account with 13% return = 19000 * 65.789333333%
Amount invested in account with 13% return = $12499.97 rounded off to 12500
Amount invested in account with -2% return = 19000 * (1 - 65.789333333%)
Amount invested in account with -2% return = 6500.03 rounded off to 6500
What is the proper order to eliminate debt?
Fraud is encouraged when a notary does what?
Answer:
Overcharging for notary public services. Notarizing a document without the signer being in the notary's presence. Notarizing the notary's own signature. Issuing identification cards.
Explanation:
Excessive fees for notarial services, signing a document without the signer being present and notarizing it. the notary's signature is notarized. making identity cards available.
What is notary fraud?If a Notary Public violates the law while carrying out their responsibilities, they are held personally accountable. A Notary Public must post a bond in order to protect the injured party's right to recover up to $10,000. Despite this, the Notary Public is still personally responsible for any damages they may have caused, and they risk criminal prosecution as well as the revocation or suspension of their notary public commission.
A few examples of notary fraud include:
ignoring your documents' acknowledgmentcounterfeit stampsletting a signer sign a document without the presence of a notary publicA Notary Public who has been paid off to falsely recognize a document is the starting point of many fraud cases, particularly those involving real estate fraud. Due to the fact that practically all papers submitted in the county records require a notary stamp, this scenario occasionally occurs.
Learn more about notary, here:
https://brainly.com/question/28204126
#SPJ2
Advantages of supermarkets?
Answer:
you can buy and get stuff in physical form.
Explanation:
Answer:
You get to see what your buying
Explanation:
:>
Task 1: Answer the following questions in your notebook
1. What do you know about drug use?
2. What are the signs and symptoms of drug abuse?
he first activity.
Answer:
1. drug use can be harmful and also damages they way you think or do things for example if you have to much you feel like your going to pass out and do wierd actions.
2. some signs are you feel really tired and your eyes may want to close or you have to much and you feel like your fainting and if your around people you tend to act really badly and say where things
1. Drug use is the use of drugs for psychotropic rather than medical purposes.
2. Some symptoms include changes in appearance, dilated/constricted pupils, changes in hygiene, etc.
Identify the term being described for each of the following: A - sequence of activities in a project. B - The longest time sequence of activities in a project C - Used when two activities have the same starting and finishing points. D - The difference in time length of any path and the critical path. E - The statistical distribution used to describe variability of an activity time. F - The statistical distribution used to describe path variability an activity by allocating additional resources.
Answer: See explanation
Explanation:
A - sequence of activities in a project. = A path
B - The longest time sequence of activities in a project = Critical path
C - Used when two activities have the same starting and finishing points. = Critical activity
D - The difference in time length of any path and the critical path. = The path slack
E - The statistical distribution used to describe variability of an activity time. = Beta distribution.
F - The statistical distribution used to describe path variability an activity by allocating additional resources. = Normal distribution
Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5.
Required:
Draw the AC and AVC curves so that they are consistent with the marginal cost curve.
Answer:
AVC curve will be below the AC curve
Explanation:
As we know,
[tex]AC = AFC + AVC[/tex]
This means that Average cost is the sum of average fixed cost and Average variable cost. Thus it can be shown that AC curve will be above the AVC curve.
Also we know that MC curve is upward sloping.
Thus, the MC curve will cut the AVC curve first and it will be to the right of the point where the MC curve cuts the AC curve.
So the curve must look like,
Mike and Marianne pulled their resources together to open a coffee place. They each put $20,000 and also took a bank loan of $20,000. Interest rate the bank charges is 8% and estimated tax rate is 30% for their business. If they both want a 12% return on their investment, what is the weighted average cost of capital
Answer:
WACC= 9.8%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.3)× 8% = 5.6%
Total Equity = 20,000× 2= 40,000.
Bank loan = 20,000
Total value fund = 40,000 + 20,000 = 60,000
WACC= 5.5%× (2/6) + 12%× (4/6) = 9.8%
WACC= 9.8%
Private producers have no incentive to provide public goods because A. the government subsidy granted is usually insufficient to enable private producers to make a profit. B. production of huge quantities of public goods entails huge fixed costs.
Answer:
Private producers have no incentive to provide public goods because
B. production of huge quantities of public goods entails huge fixed costs.
Explanation:
There is rivalry in the production and consumption of private goods. This rivalry is generally described as competition. Most public goods are produced naturally or provided by the government to her citizens. Since they are made available for the welfare of the people, there is usually no cost recovery or exclusion of persons based on financial affordability. But private goods are manufactured and sold by private companies or individuals for a profit motive.
Bridge City Consulting bought a building and the land on which it is located for $175,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $20,000 for building renovations before it was ready for use. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $19,500 estimated residual value. (Do not round intermediate calculations.) What should be the book value of (a) the land and (b) the building at the end of year 2
Answer:
Part 1
D.E = $5,300
Part 2
a. Book Value = $61,900
b. Book Value = $122,500
Explanation:
Step 1 : Determine the Cost of Buildings
Separate the Cost of Land and the Cost of Building from the Purchase Price
Calculation of the Cost of Building
Purchase Price ($175,000 x 30%) $52,500
Building Renovations $20,000
Total $72,500
Step 2 : Depreciation calculation
Depreciation expense = (Cost - Residual Value) ÷ Useful Life
= ($72,500 - $19,500) ÷ 10
= $5,300
After Year 2
Buildings :
Accumulated Depreciation = $10,600
Book Value = $72,500 - $10,600 = $61,900
Land
Book Value = $175,000 x 70% = $122,500
Note : Land is not depreciated
ABC's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods sold for the year must equal:
Answer:
$9000
Explanation:
Inventory turnover is an example of an activity ratio
Activity ratios calculate the efficiency of performing daily task of a firm
Inventory turnover = cost of goods sold / average inventory
Average inventory = (beginning inventory + ending inventory) / 2
($2000 + $1000) / 2 = $1500
6 = cost of goods sold / 1500
To determine cost of goods sold, multiply both sides of the equation by 1500
1500 x 6 = $9000 = cost of goods sold
Big Corporation receives management consulting services from its 95 percent owned subsidiary, Small Inc. For the year 20X8, Small billed Big $140,000. Small's labor cost and other associated costs for the employees providing services to Big totaled $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000. Based on the preceding information, what amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8
Answer: $34750
Explanation:
The amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8 will be:
Net income of Small = $695,000
Bug company's share = 95% × $695000 = $660250
Therefore, non controlling shareholders at 5% will be:
= 5% × Net income of Small
= 5% × $695000
= 0.05 × $695000
= $34750