Answer: a. 2. in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.
3. reserves = deposits.
b. $900.
Multiplier is 10
c. 4. 1/(desired reserve-deposit ratio).
d. 2. increase reserve requirements.
Explanation:
a. In fractional-reserve banking system, $1 of deposits can be used to create more than $1 in money supply as the money is continuously deposited into other bank accounts. This enables the money to keep increasing until it theoretically reaches a certain amount determined by the money Multiplier.
If the money Multiplier is equal to 1 which is a very rare occasion, this means that the amount required in reserves is equal to the deposits. $1 of deposits will yield a $1 in money supply increase.
b. The desired reserve-deposit ratio is 0.1. For every $1, 0.1 goes to reserves.
If bank reserves have increased by $10 then that means that deposits are,
0.1x = 10
x = $100
Deposits not in reserve are,
= 0.9 * 100
= $90
The money Multiplier can be calculated with the formula,
= 1/(desired reserve-deposit ratio)
= 1/0.1
= 10
Increase in money supply is therefore,
= $90 * 10
= $900
c. As earlier mentioned, option D is the general rule for calculating the money Multiplier.
= 1/(desired reserve-deposit ratio)
d. If the Fed increases the reserve requirement, the effect would be a reduction in the money supply because the denominator is now higher.
For instance, reserve requirement of 0.1 vs 0.2.
At 0.1, the money supply would be,
= 1/0.1
= 10
At 0.2, the money supply would be,
= 1/0.2
= 5
The higher the reserve requirement, the lower the Multiplier.
Which of the following statements is CORRECT? a. The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes. b. The price/earnings (P/E) ratio tells us how much investors are willing to pay for a dollar of current earnings. In general, investors regard companies with higher P/E ratios as being more risky and/or less likely to enjoy higher future growth. c. Other things held constant, the less debt a firm uses, the lower its return on total assets will be. d. Suppose you are analyzing two firms in the same industry. Firm A has a profit margin of 10% versus a margin of 8% for Firm B. Firm A's total debt to total capital ratio is 70% versus 20% for Firm B. Based only on these two facts, you cannot reach a conclusion as to which firm is better managed, because the difference in debt, not better management, could be the cause of Firm A's higher profit margin.
Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
Lopez Corporation incurred the following costs while manufacturing its product.Materials used in product $120,000 Advertising expense $45,000Depreciation on plant 60,000 Property taxes on plant 14,000Property taxes on store 7,500 Delivery expense 21,000Labor costs of assembly- 110,000 Sales commissions 35,000line workersFactory supplies used 23,000 Salaries paid to sales clerks 50,000Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.Compute:____ Cost of goods manufactured $Compute cost of goods sold.
Answer:
Cost of goods manufactured is $323,500
Cost of goods sold is $337,900
Explanation:
Given:
Materials used in product = $120,000
Advertising expense = $45,000
Depreciation on plant = $60,000
Property taxes on plant = $14,000
Property taxes on store = $7,500
Delivery expense = $21,000
Labor costs of assembly-line workers = $110,000
Sales commissions = $35,000
Factory supplies used = $23,000
Salaries paid to sales clerks = $50,000
Work in process inventory was $12,000 at January 1 and $15,500 at December 31.
Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.
(a) Cost of goods manufactured = Materials used in product + Depreciation on plant + Labor costs of assembly-line workers + Property taxes on plant + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
Based on the given information,
The cost of goods manufactured is $323,500
cost of goods sold $337,900
Calculations are as follows
(a) Cost of goods manufactured =Depreciation on plant + Materials used in product +Property taxes on plant + Labor costs of assembly-line workers + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
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You recently received a letter from Cut-to-the-Chase National Bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 16 percent on outstanding balances. What is the effective annual interest rate?
Answer:
Effect Annual rate of return =17.22%
Explanation:
The Effective annual rate of return is the equivalent rate earned where compounding is done frequently at period or interval less than a year.
EAR = (1+r/m)^n× m - 1
EAR - Equivalent annual rate of return, r- annul rate of return, n-number of years
r= 16/12 =1.333%, n= 1 m= 12 (note there are 12 months in a year)
EAR = (1+0.16/12)^(1×12) - 1
EAR = 1.0133^12 - 1 = 0.1722
EAR 0.1722 × 100 = 17.22%
Effect Annual rate of return =17.22%
1) Do you think there is/are any action(s) by Jessops Group Limited, that can be considered as a Corporate Social Responsibility (CSR) activity? 2) If yes, can you identify and explain a benefit of the CSR activity to Jessops Group Limited?
Answer:
YesExplanation:
Yes, Jessops is fulfilling its corporate social responsibility due to its contribution to the local councils for developing the collection facilities of discarded electronic goods and also by raising awareness for WEEE regulations, setting up plants to recycle used batteries can also be counted as a corporate social responsibility as it is an initiative to reduce environmental pollution caused by batteries.
There are four types of corporate social responsibility: Environment conservation, philanthropy, volunteerism, diversity and labor practices. Many corporations give money for preservation of wildlife and land, and take up environmental clean up efforts.
CSR helps the companies in many ways. It includes brand recognition and business reputation, it gives competitive edge to a company as companies prefer suppliers with responsible policies. It enhances customer loyalty and increases sales, it saves operational cost by reducing emissions and waste.
The CSR efforts helps the companies to attract talent and retain them as employees are motivated to work with companies taking up CSR initiatives.
CSR efforts also improves relations with the authorities and makes it easy to get financial access.
So, Jessop group will also get all these benefits from its CSR initiatives that will help it to become market leader in imaging industry.
Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Calculate Kevin's cost of goods sold for the year.?
Answer:
COGS= $598,020
Explanation:
Giving the following information:
Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use.
We need to deduct the inventory used for personal use.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 67,000 + 610,000 - 77,200 - 1,780
COGS= $598,020
Suppose initially, vertical portion of the supply curve intersects the demand curve on its downward portion. Graphically show the case where an increase in the interest rate paid on reserves does NOT lead to a change in the equilibrium fed funds rate.
Answer:
Kindly Check Explanation section
Explanation:
NB: Since, we are to show graphically and there is need to draw, kindly check the attached file for the graph that shows the case where an increase in the interest rate paid on reserves does NOT lead to a change in the equilibrium fed funds rate.
The concept of RESERVE is very important in accounting. The amount of money that is saved up from the normal profit of a business organization or company or a country which is being used for further efficient Production In the long run is known as RESERVE.
For a country, it is the central bank in such country that pays the interest with regards to reserves that are in excess.
It must be noted that as the rate of supply increases , the rate of at which the value of price is also reduces. Hence, when there is an increase in the interest rate paid on reserves the whole demand does not shoot up.
NB: The initial equilibrium is at E( the point at which D(A) and P(A) meets and an increase causes it to meet at the point D(B) and P(B).
Quantum Logistics. Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama-Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15 percent/year. What is the future worth of each site based on future worth ranking? Which city should be recommended?
Answer:
Anniston City should be recommended as it has higher future value.
Explanation:
Using the formula:
Future value of annuity = C * { [(1+r)^n - 1] / r } C where C= initial cost, r= interest rate (MARR=15%), n= 12)
- Langrange City
= $1,260,000 * { [(1+0.15)^12 - 1] / 0.15 } = $6,741,308.466
- Auburn City
$1,000,000 * { [(1+0.15)^12 - 1] / 0.15 } = $5,350,243.439
- Anniston City
$1,620,000 * { [(1+0.15)^12 - 1] / 0.15 } = $8,667,398.504
A shoe manufacturer is producing at a point where its marginal costs are $5 and its fixed costs are $5000. At the current price of $10 it is producing 500 pairs. If the demand goes down, such that they can now only charge $8 per pair, should they continue production in the short run?
Answer:
In a short time, as long as the product line can be sold with a positive contribution margin, the company should continue selling it.
Explanation:
Giving the following information:
UNitary variable cost= $5
Fixed costs are $5000.
Sales= 500 units
Selling price= $8
First, we need to calculate the current income:
Income= 500*(8-5) - 5000= -$3,500
In a short time, as long as the product line can be sold with a positive contribution margin, the company should continue selling it. Demand can increase and income could become positive.
Trademark dilution laws: Select one: a. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur. b. are intended at protecting consumers rather than focusing on protecting the investment of trademark owners. c. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment. d. require the licensee to transfer any inventions it derives from the licensed technology to the licensor.
Answer:
a. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
Explanation:
Trademark dilution laws are rules and regulations that seek to protect the trademarks of well known brands from unauthorized use by other brands, in such a way that the distinctive attribute of the trademark is minimized. Trademark dilution laws are meant to ensure that the main purpose for which a product's trademark is known is meant to stand out significantly in the mind of consumers.
Smaller companies might want to copy the trademark of famous brands for their products which might be different. These laws seek to prevent this act even if it may not cause confusion in the minds of consumers as to which brand owns a product.
The curvilinear relationship of corporate performance and diversification indicates that: a. the less related the businesses acquired, the higher performing the organization. b. dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies. c. none of the strategies consistently outperforms the others. d. the highest performing business strategy is related constrained diversification.
Answer: d. the highest performing business strategy is related constrained diversification.
Explanation:
Multiple studies by strategic management experts have shown that business performance tends to relate in a curvelinear fashion with diversification and have shown that the companies who take advantage of this the most are companies using a related constrained diversification strategy.
This strategy involves expanding by acquiring companies or Businesses which have a similar business to the original company and then sharing resources, assets and knowledge amongst them.
In doing this they are applying the knowledge and resources as well as core competencies that made the original company successful to the acquired businesses so that they too can grow as the original company did.
g A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX).
Answer: 0.1613
Explanation:
From the question, a firm buys on terms of 3/15, net 45. This implies that a discount rate of 3% will be provided I payment is made within 15 days. If it's not made within 15 days, then full payment will be due on 85 days.
The nominal annual percentage cost is 0.1613. The calculation has been attached
Diogo has a utility function,U(q1, q2) = q1 0.8 q2 0.2,where q1 is chocolate candy and q2 is slices of pie. If the price of slices of pie, p2, is $1.00, the price of chocolate candy, p1, is $0.50, and income, Y, is $100, what is Diogo's optimal bundle?The optimal value3 of good q1 isq = units. (Enter your response rounded to two decimal places.)1 The optimal value of good q2 isq2 = units. (Enter your response rounded to two decimal places.)
Answer:
[tex](0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20[/tex]
since [tex]q_2 = 20[/tex]
[tex]q_1 = 8*20\\\\q_1=160[/tex]
Explanation:
U(q₁ q₂)
[tex]q_1^{0.8}q_2^{0.2}\\\\P_1= \$0.5 \ P_2=\$1 \ Y=100[/tex]
Budget law can be given by
[tex]P_1q_1+P_2q_2=Y\\\\0.5q_1+q_2=100[/tex]
Lagrangian function can be given by
[tex]L=q_1^{0.8}q_2^{0.2}+ \lambda (100-0.5q_1-q_2)[/tex]
First order condition csn be given by
[tex]\frac{dL}{dq} =0.8q_1^{-0.2}q_2^{0.2}-0.5 \lambda=0\\\\0.5 \lambda=0.8q_1^{-0.2}q_2^{0.2}---(i)[/tex]
[tex]\frac{dL}{dq} =0.2q_1^{0.8}q_2^{-0.8}- \lambda=0\\\\ \lambda=0.2q_1^{0.8}q_2^{-0.8}---(ii)[/tex]
[tex]\frac{dL}{d \lambda} =100-0.5q_1-q_2=0\\\\0.5q_1+q_2=100---(iii)[/tex]
From eqn (i) and eqn (ii) we have
[tex]\frac{0.5 \lambda}{\lambda} =\frac{0.8q_1^{-0.2}q_2^{0.2}}{0.2q_1^{0.8}q_2^{-0.8}} \\\\0.5=\frac{4q_2}{q_1}\\\\q_1=8q_2}[/tex]
Putting [tex]q_1=8q_2[/tex] in euqtion (iii) we have
[tex](0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20[/tex]
since [tex]q_2 = 20[/tex]
[tex]q_1 = 8*20\\\\q_1=160[/tex]
Raising Canes is a restaurant located primarily in the south and the owner is interested in expanding nationwide. Name and describe the various types of research suppliers and discuss which type could meet his need for finding the best locations in new markets.?
Answer:
- syndicate research service
- limited research service
- standardized research
- custom research
Explanation:
Note, Raising canes ones to expand nationwide, which of course is a monumental task.
- The syndicated research supplier using is already established standards for the research in exchange for a fee.
- Standardized research supplier is willing to meet the needs of clients by directing strategies best fitted to find suitable retail locations. It is the best type of research service to meet this client’s needs.
- Limited-service research are suppliers that are limited in their scope of operations such as data warehousing, or data processing.
Aston, a tenant in Jackie's apartment, had repeatedly complained about the leaky faucets in the apartment. However, Jackie was not interested in doing anything about it. Under the landlord and tenant law, what remedies did Aston have?
a. To terminate the lease, then seek damages or rent adjustment.
b. To seek constructive eviction.
c. To obtain a court order for quiet enjoyment.
d. To obtain the doctrine of caveat emptor under the common law.
e. None, because she was on a periodical tenancy.
Answer:
a. To terminate the lease, then seek damages or rent adjustment.
Explanation:
when a landlord breaches his/her duties, the tenant has three available remedies:
terminationdamages rent adjustmentGenerally when things like this happen, the tenant will terminate the contract and in order to do so must leave the premises and notify the landlord that he/she is doing so and the reasons why. Then the tenant can seek compensation for damages caused by the landlord's breach of duties. Damages are generally limited to relocation costs, e.g. costs of finding a new apartment and moving there.
If Aston decided to stay at the apartment, he could seek to fix the plumbing issues and seek compensation from the landlord.
Out of the possible options, option a is correct.
Use the In the News to answer three questions
IN THE NEWS Treasury Prices Fall with Improved Expectations Expectations of accelerated economic growth continue to boost yields on Treasury securities. The price of the Treasury's 2.0 percent 10-year bond fell $17.43 yesterday, from $843.88 to $826.45. The decline in the price of the treasury pushed the yield up from 2.37 percent to 2.42 percent. The 30-year bond also declined, increasing the yield from 2.96 to 3.00. Source: Market reports of January 6, 2017, What would the yield be on the 2.0 percent, $1,000, 10-year Treasury bond if the market price of the bonds were Instructions: Round your responses to two decimal places.
a. $1,000?
b. $800?
c. $1,200?
Answer:
2%
2.5%
1.67%
Explanation:
The yield can be computed using the yield formula which coupon payment divided by price.
The coupon payment=face value*coupon rate
face value is $1000
coupon rate is 2%
coupon payment=2%*$1000=$20
when price is $1000:
yield =$20/$1000=2%
when price is $800
yield=$20/$800=2.5%
when price is $1,200
yield =$20/$1,200=1.67%
In essence ,the lower the price the higher the yield as lower amount is invested in order to receive the same amount of annual coupon of $20
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company’s total fixed costs would be reduced by 20 percent.
Segmented income statements appear as follows:
Product Original Strawberry Orange
Sales $65,200 $85,600 $102,400
Variable costs 44,000 77,200 80,200
Contribution margin $21,200 $8,400 $22,200
Fixed costs allocated to each product line 9,400 12,000 14,200
Operating profit (loss) $11,800 $(3,600) $8,000
Required:
a. Prepare a differential cost schedule.
b. Should Cotrone drop the Strawberry product line?
Answer:
Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %
Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %
Explanation:
Cotrone Beverages
Differential Analysis
Totals Totals Difference / Change
including (less) Without (equals)
Strawberry Strawberry
Sales 253,200 167,600 85600 Decrease
Variable costs 201,400 124,200 77200 Decrease
Fixed costs allocated 35,600 28,480 7120 Decrease
Operating profit (loss) 13,200 14,920 (1720) Increase
Working
Total Fixed Costs Reduced will be = 35,600 *20%= 7120
Here we see the profit is increased by 1720 therefore strawberry line should be dropped.
Cotrone Beverages
Differential Analysis
Totals Totals Difference / Change
including (less) Without (equals)
Strawberry Strawberry
Sales 253,200 167,600 85600 Decrease
Variable costs 201,400 124,200 77200 Decrease
Contribution margin 51,800 43,400 8,400 Decrease
Fixed costs allocated 35,600 23,600 12000 Decrease
Operating profit (loss) 13,200 16,800 (3,600) Increase
Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600
Working
We find the totals with and without the strawberry product line and then subtract to find the differential costs
Cotrone Beverages
Product Original Strawberry Orange Total
Sales $65,200 $85,600 $102,400 253,200
Variable costs 44,000 77,200 80,200 201,400
Contribution margin $21,200 $8,400 $22,200 51,800
Fixed costs allocated 9,400 12,000 14,200 35,600
Operating profit (loss) $11,800 $(3,600) $8,000 13,200
If we drop the strawberry line then the new totals would be
Product Original Orange Total
Sales $65,200 $102,400 167,600
Variable costs 44,000 80,200 124,200
Contribution margin $21,200 $22,200 43,400
Fixed costs allocated 9,400 14,200 23,600
Operating profit (loss) $11,800 $8,000 16,800
g (Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project: Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. Investment required in equipment $ 440,000 Annual cash inflows $ 77,000 Salvage value of equipment $ 0 Life of the investment 20 years Discount rate 13 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The internal rate of return on the investment is closest to:
Answer:
16.70%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-440,000
Cash flow each year from year one to twenty = $77,000
IRR = 16.70%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
In the short-run aggregate demand and supply model, one important difference between monetary and fiscal policy is that monetary policy:_______.
a. influences aggregate supply but fiscal policy influences aggregate demand.
b. has shorter lags than fiscal policy, so monetary policy may impact the economy more quickly than fiscal policy.
c. influences aggregate demand but fiscal policy influences aggregate supply.
d. has longer lags than fiscal policy, so fiscal policy may impact the economy more quickly than monetary policy.
Answer:
a. influences aggregate supply but fiscal policy influences aggregate demand.
Explanation:
Remember, when the term monetary policy is used it refers to policies that are focused on the interest rates as well as the inflation rate, which certainly affects the money supply specifically. However, the fiscal policy is usually channelled towards aggregate demand of the economy.
Thus, it is right to say that one important difference between monetary and fiscal policy is that monetary policy affects aggregate supply but fiscal policy influences aggregate demand.
Tangarine Company is considering a project with an internal rate of return of 12%. Tangarine requires a minimum rate of return of 10%. The net present value of the project is: a.equal to zero. b.infinite. c.negative. d.positive. e.None of these choices are correct.
Answer:
The correct option is D
Positive NPV
Explanation:
The internal rate of return is the discount rate that equates the present value of cash inflow to the present value of cash inflows.
It is the maximum cost of capital that can be used to discount a project without causing harm to the investors. In other words, it is the cost of capital that produces an NPV of Zero.
It therefore means that any cost of capital that is less than the IRR would produce a positive NPV and vice and versa.
and vice versa
Finally, if the IRR is 12% a cost of capital of 10% would produce a positive NPV
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $49,700, net fixed assets of $248,300, current liabilities of $28,400, and long-term debt of $101,600.
A. Calculate Caraway's stockholders' equity.B. What is the firm's net working capital?
Answer:
A.
$168,000
B.
$21,300
Explanation:
A.
As per accounting equation
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Placing values in the equation
Equity = ( Current assets + Net Fixed Assets ) - ( Current Liabilities + Long term debt )
Equity = ( $49,700 + 248,300 ) - ( 28,400 + 101,600)
Equity = $168,000
B.
Net Working capital is the net of current assets and current liabilities of the company.
Use following formula of net working capital
Net working capital = Current assets - current liabilities
Net working capital = $49,700 - 28,400
Net working capital = $21,300
When landlords wrongfully withhold security deposits, they can often be sued for three times the amount of the security deposit. Is this reasonable? Should a landlord have to pay $3000 for a $1000 debt? What if you fail to pay a rent on time? Should you have to pay three times the amount of your normal rent? If your answers to these two questions are different, why is that?
Answer:
yes it is reasonable
Explanation:
subsection 12 of chapter 4 of the articles of lease-rental agreement states that if a landlord wrongfully withhold security deposits the landlord must pay 3x the amount due to all legal actions and no we don't have to pay 3x rent if we miss a payment we only have to pay the late fee and any other listed fees listed on your lease
At the beginning of the month, the Forming Department of Martin Manufacturing had 23,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 86,000 units and transferred 88,000 units to the next manufacturing department. At the end of the month, the department had 21,000 units in inventory, 80% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month
Answer:
Units stated and completed during the month= 65,000
Explanation:
The units stated and completed in the current period is referred to as the fully worked.
Using the first in first out (FIFO) approach, the fully worked is calculated as
Fully worked = newly introduced -closing inventory
= 86,000- 21,000 = 65000
Note that out of the 86,000 that were completed in the period, it assumed that 23,000 representing the opening inventory would first be completed and the balance would from the newly introduced.
Another way to determine the fully worked is as follows
Fully worked = transferred out - opening inventory
Fully worked = 88,000- 23,000 = 65,000
Units stated and completed during the month= 65,000
When the relationship between government and interest groups becomes entangled and tight with some groups having formal government sponsorship and/or special access, the system is labeled_________.
Answer: Neo-Corporatism.
Explanation:
Neo- Corporatism emerged in resent times as a successor to State Corporatism. State Corporatism was a system whereby interest and labor groups were supposed to work together for the good of society. These were most prevalent in authoritarian regimes like Nazi Germany and post communist Lithuania.
Recently though, in some Democratic countries, interest groups have chosen to work with the Government to improve the lives of the people and enable the Government reach out deeper. These Peak Associations as they are often called help the Government compete economically and are very prevalent in countries and regions such as, Germany, Switzerland, Austria and Scandinavia.
g The transactions of Spade Company appear below. Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock. The company purchased office supplies for $1,250 cash. The company purchased $10,050 of office equipment on credit. The company received $15,500 cash as fees for services provided to a customer. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,700 as fees for services provided. The company paid $1,225 cash for the monthly rent. The company collected $1,125 cash as partial payment for the account receivable created in transaction f. The company paid a $10,000 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.
Answer:
1)
Dr Cash 100,750
Cr Common stock 100,750
Dr Office supplies 1,250
Cr Cash 1,250
Dr Equipment 10,050
Cr Accounts payable 10,050
Dr Cash 15,500
Cr Fees earned 15,500
Dr Accounts payable 10,050
Cr Cash 10,050
Dr Accounts receivable 2,700
Cr Fees earned 2,700
Dr Rent expense 1,225
Cr Cash 1,225
Dr Cash 1,125
Cr Accounts receivable 1,125
Dr Dividends 10,000
Cr Cash 10,000
2)
Cash Accounts receivables
Debit Credit Debit Credit
100,750 1,250 2,700 1,125
15,500 10,050 1,575
1,125 1,225
10,000
94,850
Office Supplies Equipment
Debit Credit Debit Credit
1,250 10,050
1,250 10,050
Accounts payable Common Stock
Debit Credit Debit Credit
10,050 10,050 100,750
0 0 100,750
Fees earned Rent Expense
Debit Credit Debit Credit
15,500 1,225
2,700 1,225
18,200
Dividends
Debit Credit
10,000
10,000
Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had $84,000 of manufacturing overhead applied to it during May, the direct materials assigned to Job 17X was:
a. $63,000.
b. $84,000.
c. $112,000.
d. $147,00
Answer:
Direct material cost = $112,000
Explanation:
Pre-determined overhead absorption rate rate = Estimated overhead for the period / estimated direct material cost
Pre-determined overhead absorption rate rate (OAR= 75% of direct material cost
Applied overhead = OAR × direct material cost
Applied overhead = 75% × direct material cost
Let direct material cost be represented by y
84,000= 75% × y
y = 84,000/75%= 112000
Direct material cost = $112,000
On March 1, Sather Co. sold merchandise to Boone Co. on account, $28,400, terms 2/15, n/30. The cost of the merchandise sold is $19,500. The merchandise was paid for on March 14. Assume all discounts are taken.Required:Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.CHART OF ACCOUNTSSummit Co.General LedgerASSETS110 Cash121 Accounts Receivable-Beartooth Co.125 Notes Receivable130 Merchandise Inventory131 Estimated Returns Inventory140 Office Supplies141 Store Supplies142 Prepaid Insurance180 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES210 Accounts Payable216 Salaries Payable218 Sales Tax Payable219 Customers Refunds Payable221 Notes PayableEQUITY310 Owner, Capital311 Owner, Drawing312 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Merchandise Sold521 Delivery Expense522 Advertising Expense524 Depreciation Expense-Store Equipment525 Depreciation Expense-Office Equipment526 Salaries Expense531 Rent Expense533 Insurance Expense534 Store Supplies Expense535 Office Supplies Expense536 Credit Card Expense539 Miscellaneous Expense710 Interest ExpenseCHART OF ACCOUNTSBeartooth Co.General LedgerASSETS110 Cash120 Accounts Receivable125 Notes Receivable130 Merchandise Inventory131 Estimated Returns Inventory140 Office Supplies141 Store Supplies142 Prepaid Insurance180 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES211 Accounts Payable-Summit Co.216 Salaries Payable218 Sales Tax Payable219 Customers Refunds Payable221 Notes PayableEQUITY310 Owner, Capital311 Owner, Drawing312 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Merchandise Sold521 Delivery Expense522 Advertising Expense524 Depreciation Expense-Store Equipment525 Depreciation Expense-Office Equipment526 Salaries Expense531 Rent Expense533 Insurance Expense534 Store Supplies Expense535 Office Supplies Expense536 Credit Card Expense539 Miscellaneous Expense710 Interest Expense
Answer and Explanation:
The journal entries are shown below:
On the books of Sather Co.
On Mar 1
Accounts Receivable $28,400
To Sales $28,400
(Being the merchandise sold on credit is recorded)
For recording this we debited the account receivable as it increased the assets and credited the sales as it also increased the sales
Cost of goods sold $19,500
To Merchandise inventory $19,500
(Being the cost of merchandise is recorded)
For recording this we debited the cost of goods sold as it increased the expenses and credited the inventory as it reduced the assets
On Mar 14
Cash $27,830
Sales Discounts ($28,400 × 2%) $568
To Accounts Receivable $28,400
(Being the payment received is recorded)
For recording this we debited the sales and discount as it increased the assets and discount and credited the account receivable as it decreased the assets
On the books of Boone Co.
On Mar 1
Merchandise Inventory $28,400
To Accounts Payable $28,400
(Being the merchandise is purchased on credit)
For recording this we debited the inventory as it increased the assets and credited the account payable as it also increased the liabilities
On Mar 14
Accounts Payable $28,400
To Cash $27,830
To Merchandise inventory ($28,400 × 2%) $568
(Being the cash payment is recorded)
Fo recording this we debited the account payable as it reduced the liabilities and credited the cash and inventory as it also decreased the assets
The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month’s bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020.
PART A: PERCENT OF SALES METHOD
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
PART B: ANALYSIS OF RECEIVABLES METHOD
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
Problem 3
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020
February 3, 2019
Accounts Receivable (gross)
Allowance for Doubtful Accounts
Accounts Receivable, net
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Answer:
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 300,000 (= $30,000,000 x 1%)
Cr Allowance for doubtful accounts 300,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,100,000 (= $4,400,000 - $300,000)
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $300,000
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 280,000 (= $360,000 - $80,000)
Cr Allowance for doubtful accounts 280,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,120,000
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $280,000
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020 February 3, 2019
Accounts Receivable (gross) $762,000,000 $800,000,000
Allowance for Doubtful Accounts $21,000,000 $22,000,000
Accounts Receivable, net $741,000,000 $778,000,000
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
$741,000,000
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
$21,000,000
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
$762,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Dr Bad debt expense 22,000,000
Cr Allowance for doubtful accounts 22,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Dr Allowance for doubtful accounts 22,000,000
Cr Accounts receivable 22,000,000
Explanation:
Accounts receivable = $4,400,000
beginning balance Allowance for doubtful accounts = $80,000
May's net sales = $30,000,000
1% of net sales are uncollectible
aging of accounts receivable results in a $360,000 estimate for the Allowance for doubtful accounts as of May 31, 2020
March 1 Paid monthly rent of $890. 3 Performed services for $100 on account. 5 Performed services for cash of $55. 8 Purchased equipment for $445. The company paid cash of $60 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $390. 22 Paid utilities of $54. 24 Borrowed $1,110 from Grafton State Bank by signing a note. 27 Paid $160 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,330 for six months of insurance. Journalize the transactions.
Answer:
Journal Entries
Date Account titles & explanations Debit Credit
Mar-01 Rent expense 890
To cash 890
Mar-03 Account receivable 100
To service revenue 100
Mar-05 Cash 55
Service revenue 55
Mar-08 Equipment 455
Cash 60
accounts payable 395
Mar-12 Cash 100
To account receivable 100
Mar-14 Wage expense 390
To cash 390
Mar-22 Utility expense 54
To cash 54
Mar-24 Cash 1,110
To notes payable 1,110
Mar-27 Repair & maintenance 160
To cash 160
Mar-28 Accounts payable 395
To cash 395
Mar-30 Prepaid Insurance 1,330
To cash 1,330
Explanation:
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table.
Scenario Number of Firms Type of Product Market Model
1. A large city has lots of small shops
where people can buy sweaters.
Each store's sweaters reflect the
style of that particular store.
Additionally, some stores use higher
-quality yarn than others, which is
reflected in their price.
2. There are dozens of pasta producers
that sell pasta to hundreds of Italian
restaurants nationwide. The restaurant
owners buy from the cheapest pasta
producer they can. While pasta manuf-
acturers must pay licensing fees to their
local government and undergo regular
food-safety inspections, anyone who
has passed inspections can acquire and
maintain their license.
3. Only three airlines fly from San Francisco
to Medford, Oregon. No new airline will enter
this market, because there are not enough
customers to share among four or more
airlines without each one experiencing
substantially higher average costs. Consumers
view all airlines as providing basically the same
service and will shop around for the lowest price.
4. The government has granted a patent to a drug
company for an experimental AIDS drug. That
company is the only firm permitted to sell the drug.
Answer and Explanation:
The Perfect competition is a market condition in which there are very large number of buyers and sellers that sell the same or identical products having perfect knowledge with respect to products and services. Moreover, there is free entry and exit in this market
Monopolistic competition is a market condition that deals with many firms that are closely related to each other but sell differentiated products. Moreover, there is free entry and exit in this market
In the monopoly market, there is only one seller who controls the overall market. Due to this, the seller charged the high price as there is no competition. There is no free entry and exit in this market
In the oligopoly market, there are few sellers who deal in a single market. There is no free entry and exit in this market
Based on the above explanation, the categorization is shown below:
Scenario Number of Firms Type of Model
Product Market
1. Many Differentiated product Monopolistic
2. Many Standardised products Perfect
Competition
3. Few Differentiated products Oligopoly
4. One Unique Monopoly
The scenarios and their various market characteristics are as follows:
Scenario Number of firms Type of Product Market Model
1 Many Differentiated Monopolistic
2 Many Standardized Perfect competition
3 Few Standardized Oligopoly
4 Single Unique Monopoly
Scenario 1 is a monopolistically competitive market where there are several firms who sell similar but differentiated products to gain market share.
Scenario 2 is a perfectly competitive market that has many firms. These firms all sell the same goods which means that they are standardized.
Scenario 3 is an oligopoly as it has very few players in the market and these players control the market and offer the same product.
Scenario 4 is a monopoly that has one firm in the market thanks to the government patent. The product is therefore unique because it is made by one firm.
In conclusion, there are several market types available.
Find out more at https://brainly.com/question/24288109.
Which of the following is an example of peakminusload pricing? A. charging less for vacations to Hawaii during December and January B. setting price equal to marginal cost when there is a capacity constraint C. selling excess capacity at lower prices D. charging more for electricity on hot days
Answer:
D. charging more for electricity on hot days.
Explanation:
This is a strategy that helps service providers in billing their customers when their in traffic on the usage of a particular service. This is charging higher of a certain service when their are a lot of users trying to be benefit or trying to use it at the same time. This can easily be seen in the case of utility usage amongst countries where this forms of billings are performed. That is why in the scenario above, the charging more for electricity on a hot day falls in place as the perfect option of peakminus loading price.
Answer:
D. charging more for electricity on hot days
Explanation:
Peak load pricing is charging more for a good or service when the demand for the good is higher.
During the hot weather, people would want to use fans and air conditioners, thus, the demand for electricity would be higher as people would need electricity to power these items. So increasing the price in the hurt weather is an example of peak load pricing.
I hope my answer helps you