Answer:
At the optimum solution, what is the company's profit during the next period?
$2,070How many units of each are produced at the optimal solution (use numbers)?
180 units of product B135 units of product CExplanation:
Milling Inspection Drilling C.M.
Product A 6 5 4 $6
Product B 2.5 2 2 $4
Product C 5 4 8 $10
total time 1,200 900 1,440
Contribution margin per minute
Milling Inspection Drilling Total
Product A $1 $1.20 $1.50 $3.70
Product B $1.60 $2 $2 $5.60
Product C $2 $2.50 $1.25 $5.75
Even though product C has a higher contribution margin, its total production will be contrained by Drilling, since only 180 units can be completed (= 1,440 hours / 8 hours per unit) profits will equal $1,800.
So we must continue with product B which has the second highest contribution margin per minute with a maximum production of 450 units (Milling is the constraint). This would result in a total profit of $1,800.
The maximum production of product A is also 180 units (inspection is the constraint), which would generate only $1,080 in profits. So we can eliminate product A from the analysis.
Now we need to determine which combination of products B and C should be produced.
If we produce 180 units of product B and 135 units of product C, our total profits will be (180 x $4) + (135 x $10) = $2,070
total number of machine hours employed:
Milling Inspection Drilling
Product B 450 360 360
Product C 675 540 1,080
total 1,125 900 1,440
only 75 hours of Milling will be idle under the production schedule.
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. a) Which of the following is not a feasible purchase combination? A) 0 big shelves and 200 medium shelves B) 0 big shelves and 0 medium shelves C) 150 big shelves and 0 medium shelves D) 100 big shelves and 100 medium shelves
Answer:
The answer is D
Explanation:
Solution:
Recall that:
Malloy Furniture purchases two products: Big shelves B and Medium shelves M
The cost of big shelf is =$500
The space required = 100 cubic feet
The cost of each medium shelf is =$300
Storage space = 90 cubic feet,
Now,
Since the values 100 and 90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves
If your company’s product is dry soup mixes and canned soups, would a multidomestic strategy, a transnational strategy, or a global strategy seem to be more advisable? Multiple Choice transnational strategy since processed food companies compete in two or more countries simultaneously multidomestic strategy since customer needs and preferences vary greatly in the soup industry A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary. multidomestic as local market conditions preclude a uniform, coordinated worldwide strategic approach global strategy since local managers need little latitude in decision-making
Answer:
A transnational approach is appropriate. Country-to-country customization to accommodate differences in taste preferences is necessary.
Explanation:
When selling a product in the international market place between different countries or communities, three approaches can be used.
The transnational, multidomestic and the global strategy.
Global strategy is when a product is not modified but rather same product and service is sold to different countries.
Transnational approach involves modification of the product to meet a countrie's peculiar needs. It is more personalised.
In this scenario the transnational approach is better because not everyone will have same preference of soup.
Customising soups to meet varied needs will make it sell more.
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.30 per share exactly 9 years from today. After that, the dividends are expected to grow at 3.9 percent forever. If the required return is 12.1 percent, what is the price of the stock today?
Answer:
The multiple choices are:
$64.63 '
$23.12
$30.24
$47.59
$25.92
The correct option is $25.92
Explanation:
The price of the stock today is the present of dividend of $5.30 payable in nine years' time and present value of the dividend terminal value:
present of dividend=dividend/discount factor
where discount factor=(1+r)^n
r is the required rate of return of 12.1%
n is the number of years which is 9
present value of dividend=$5.30/(1+12.1%)^9=$ 1.90
Terminal value=dividend*(1+g)/(r-g)
g is the dividend growth rate of 3.9%
r is the required return of 12.1%
terminal value=$5.3*(1+3.9%)/(12.1%-3.9%)=$ 67.15
Present value of terminal value=$ 67.15/(1+12.1%)^9=$ 24.02
Sum of both present values=$ 24.02 +$1.90=$25.92
You were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account
Answer:
The answer is 27,408.71
Explanation:
Solution
Recall that:
You were left with a trust fund of =$100,00
Interest rate = 6.5%
Money with drawled = 4 installments
Now,
The step to take is to find you could withdraw currently at the start of each of the next 3 years with a zero account to end up with.
Now,
100, 00 = X (1 - (1.065)^-4/.065/1.065
We now solve for X
Thus
X =7,408.71
By applying or using a financial calculator
We arrange it to an annuity due setting - [2nd] [BGN] then [2nd] [Set] this will set it to mode "BGN"
So,
N = 4
I/Y = 6.5
PV = -100,000
FV = 0
CPT PMT
The payments are known to to be 27,408.71
Note : Kindly find an attached copy of the Financial calculator below
The amount you can withdraw is $29,190.27 per installment.
Data and Calculations:
Amount in trust fund = $100,000
Interest rate on the fund = 6.5%
Number of equal instalments to withdraw = 4
N (# of periods) = 4
I/Y (Interest per year) = 6.5%
PV (Present Value) = $100,000
FV (Future Value) = $0
Schedule of Withdrawals:
Period PV PMT Interest Future Value
1 $100,000.00 $-29,190.27 $6,500.00 $77,309.73
2 $77,309.73 $-29,190.27 $5,025.13 $53,144.58
3 $53,144.58 $-29,190.27 $3,454.40 $27,408.71
4 $27,408.71 $-29,190.27 $1,781.57 $0.00
Results:
PMT = $29,190.27
Sum of all periodic payments = $116,761.10
Total Interest = $16,761.10
Thus, the amount to withdraw per installment is $29,190.27.
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Partial-Year Depreciation Equipment acquired at a cost of $105,000 has an estimated residual value of $12,000 and an estimated useful life of 10 years. It was placed into service on May 1 of the current fiscal year, which ends on December 31.A. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.
Depreciation
Year 1 $6,200
Year 2 $9,300B. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method.
Depreciation
Year 1 $
Year 2 $
Answer and Explanation:
A. The computation of he depreciation for the current fiscal year and for the following fiscal year using the straight-line method is shown below:-
= (Original cost - residual value) ÷ (estimated useful life)
= ($105,000 - $12,000) ÷ (10 years)
= $9,300
For the current year, the depreciation expense is
= $9,300 × 8 months ÷ 12 months
= $6,200
The 8 months are calculated from May 1 to December 31
And, for the following fiscal year , the depreciation expense is $9,300
B. The computation of depreciation for the current fiscal year and for the following fiscal year using the double-declining-balance method is shown below:-
But before that
Rate of depreciation under double declining depreciation = 2 × (1 ÷ Life) × 100
= 2 × (1 ÷ 10) × 100
= 20%
1st Year depreciation = Equipment cost × Rate of depreciation under double declining depreciation × Beginning may ÷ Ending December
= $105,000 × 20% × 8 ÷ 12
= $14,000
2nd year depreciation = Depreciation on $105,000 for the four months at 20%
= Equipment cost × Rate of depreciation under double declining depreciation × Remaining months ÷ Ending December
= $105,000 × 20% × 4 ÷ 12
= $7,000
and now we calculate the 20% on balance in machinery for 8 months.
Balance = Equipment cost - 1st Year depreciation - 2nd Year depreciation
= $105,000 - $14,000 - $7,000
= $84,000
Depreciation = Balance Rate of depreciation under double declining depreciation × Beginning may ÷ Ending December
= $84,000 × 20% × 8 ÷ 12
= $11,200
Total depreciation in year 2 = 2nd year depreciation + Depreciation
= $7,000 + $11,200
= $18,200
1. Based on the straight-line method, the Depreciation Expense for the current fiscal year is $6,200 ($9,300 x 8/12).
2. Based on the straight-line method, the Depreciation Expense for the following fiscal year is $9,300 ($93,000/10).
3. Based on the double-declining-balance method, the Depreciation Expense for the current fiscal year is $14,000.
4. Based on the double-declining-balance method, the Depreciation Expense for the following fiscal year is $18,200.
Data and Calculations:
Cost of equipment = $105,000
Estimated residual value = $12,000
Estimated useful life = 10 years
Date of put into use = May 1
Depreciable amount = $93,000 ($105,000 - $12,000)
Annual depreciation expense based on the straight-line method = $9,300 (93,000/10)
Double-declining=balance method:
Depreciation rate = 20% (100/10 x 2)
Depreciation for the first year = $14,000 ($105,000 x 20% x 8/12)
Reduced balance after the first year = $91,000 ($105,000 - $14,000)
Depreciation for the second year = $18,200 ($91,000 x 20%)
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What are Google’s key policies and actions that help it reduce its environmental footprint? How does the company integrate the idea of creating a "better web that’s better for the environment" with its strategies for creating profit and value. How do these initiatives help build competitive advantage for Google?
Explanation:
Google is a multinational that provides a range of online products and services, such as ads, search engines and cloud computing.
As one of the largest companies in the world, Google has a responsibility to attest to important values for today's society, such as sustainability.
The company develops several ecological programs that use resources to support renewable energy, in addition to reducing the use of carbon, which makes sustainability one of the essential prerequisites for the company's operations.
These good environmental protection practices bring several competitive benefits to Google, as the company becomes better positioned with consumers and investors, which suggests a gain in greater market share and reliability.
Buffalo Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $27,700 net income for 2019 and $34,300 net income for 2020. Further examination of the records reveals that the following items were handled improperly.
Rent was received from a tenant in December 2016. The amount, $1,030, was recorded as revenue at that time even though the rental pertained to 2017.
Answer:
Corrected net income for 2019 = 23,750.
Corrected net income for 2020 = $36,210
Explanation:
For the year 2019, below are the particulars and the amount recorded for each particulars.
Net income => $27,700.
Rent received in 2019 => - $1,030.
Salaries and Wages not accrued, 12/31/18 => - $1190.
Salaries and Wages not accrued, 12/31/19 => - $1290.
Inventory of Supplies, 12/31/18 = - 1430.
Inventory of Supplies, 12/31/19 = 990
Corrected net income = 23,750.
For the year 2020, below are the particulars and the amount recorded for each particulars.
Net income => $34,300.
Rent received in 2020 => $1,030.
Salaries and Wages not accrued, 12/31/2020 => - $ 870
Salaries and Wages not accrued, 12/31/19 => $1290.
Inventory of Supplies, 12/31/19 = - 990.
Inventory of Supplies, 12/31/20 = 1450.
Corrected net income = $36,210
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loan called for a floating rate that was 25 basis points (0.25 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.24 percent and a minimum of 1.71 percent. Calculate the rate of interest for weeks 2 through 10.
As the data in incomplete, lets consider the data found on the net for the same question
DATE LIBOR
week 1 1.98%
week 2 1.64%
week 3 1.54%
week 4 1.31%
week 5 1.57%
week 6 1.69%
week 7 1.66%
week 8 1.94%
week 9 1.92%
(This data in not given in the question. If some values differ from this data, just change the that value in the method below and you'll get your answer)
Answer:Floating rate = 0.25%
Maximum rate = 2.24%
Minimum rate = 1.71%
General formula for for finding rate of interest of a week
Week Rate = Previous Week's Rate (LIBOR from table) + Floating Rate
Lets find the values:
Week 2 rate = Week 1 rate + 0.25% = 1.98% + 0.25% = 2.23%
Week 3 rate = Week 2 rate + 0.25% = 1.64% + 0.25% = 1.89%
Week 4 rate = Week 3 rate + 0.25% = 1.54% + 0.25% = 1.79%
Week 5 rate = Week 4 rate + 0.25% = 1.31% + 0.25% = 1.56%
Week 5 rate is lower than the minimum rate, rate of Week 5 can be taken as minimum rate
Week 5 rate = 1.71%
Week 6 rate = Week 5 rate + 0.25% = 1.57% + 0.25% = 1.82%
Week 7 rate = Week 6 rate + 0.25% = 1.69% + 0.25% = 1.94%
Week 8 rate = Week 7 rate + 0.25% = 1.66% + 0.25% = 1.91%
Week 9 rate = Week 8 rate + 0.25% = 1.94% + 0.25% = 2.19%
Week 10 rate = Week 9 rate + 0.25% = 1.92% + 0.25% = 2.17%
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,700 Net sales: $76,000 Net purchases: $74,000 The company's gross margin ratio is 20%. Using the gross profit method, the estimated ending inventory value would be:
Answer:
The estimated ending inventory by the gross profit method is $19,900
Explanation:
In order to calculate the estimated ending inventory value we would have to calculate first the following:
Step 1- Calculating Gross profit:
Gross profit ratio = Gross profit/ Sales
20% = Gross profit/ $76,000
Gross profit = $76,000 x 20%
Gross profit = $76,000 x 20%
Gross profit = $15,200
Step 2- Calculating Cost of Goods sold (COGS):
Sales - COGS = Gross profit
$76,000 - COGS = $15,200
COGS = $76,000 - $15,200
COGS = $60,800
Step 3- Calculating Ending Inventory:
COGS = Beginning inventory + Inventory purchases - Ending inventory
$60,800 = $4,700 + $76,000 - Ending inventory
$60,800 = $80,700 - Ending inventory
Ending inventory = $80,700 -$60,800
Ending inventory = $19,900
Therefore, the estimated ending inventory by the gross profit method is $19,900.
If you enter the teaching profession, you will have no money for vacations; and if you do not enter the teaching profession, you will have no time for vacations. Since you must either enter or not enter the teaching profession, it follows that either you will have no money or no time for vacations.
a. True
b. False
Answer:
True
Explanation:
This is an example of Constructive dilemma. It is a true rule of inference of propositional logic. It infers that, if P implies Q and R implies S and either P or R is true, then either Q or S has to be true. Therefore entering the teaching profession, means no money for vacations; and not entering the teaching profession, means no time for vacations. If you must either enter or not enter the teaching profession, it follows that either you will have no money or no time for vacations.
Seth owns a local business that provides email updates on surf conditions. He is the only supplier of these email updates in Santa Barbara and Goleta, which gives him a monopoly in both cities. The marginal cost of producing another update is zero (and we'll ignore fixed costs). The inverse demand for these updates in Santa Barbara is p = 74-q and the inverse demand in Goleta is p = 39 - 4q. Suppose Seth charges different uniform prices in SB and Goleta. If Seth sets each price such that he is maximizing his total profits, what are Seth's total profits?
Answer:
Seth's total profits is $1,535.359
Explanation:
According to the given data we have the following:
MC = 0 and we will ignore fixed costs
Therefore TC = 0
Demand function in Santa barbara is
p = 74 - q
MR = 74 - 2q
Since Seth sets different uniform prices in two markets to maximizes his profit therefore ,
MR = MC
74 - 2q = 0
2q = 74
q=37
p = 74 - 37 = 37
Profit = pq - TC
= 37*37 - 0
= $1,369
Inverse demand finction Goleta is
p = 39 - 4q
MR = 39 - 8q
MR = MC
39 - 8q = 0
8q = 39
q = 4.875
p = 39 - 4.875 = 34.125
Profit = pq - TC
= 34.125*4.875 - 0
= $166.359
Therefore, Seth's total profits = $1,369 + $166.359
Seth's total profits= $1,535.359
Seth's total profits is $1,535.359
What was the two important information in the financial position that is useful to financial users?
Answer:
1)balance sheet
2)income statement
Explanation:
Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.
2017
Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account.
Jan. 3 Paid $4,800 to enclose the cab and install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400.
Dec. 31 Recorded annual straight-line depreciation on the loader.
2018:
Jan. 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years.
Feb. 17 Paid $820 to repair the loader after the operator backed it into a tree.
Dec. 31 Recorded annual straight-line depreciation on the loader.
Required:
Prepare journal entries to record these transactions and events.
Answer and Explanation:
The Journal entries are shown below:-
Jan 1
Equipment Dr, $300,600 ($287,600 + $11,500 + $1,500)
To Cash $300,600
(Being equipment is recorded)
Jan 3
Equipment Dr, $4,800
To Cash $4,800
(Being equipment is recorded)
Dec 31
Depreciation expenses-equipment Dr, $70,850
($300,600 + $4,800 - $20,600 - $1,400) ÷ 4
To Accumulated depreciation-equiment $70,850
(Being depreciation expense is recorded)
Year 2018
Jan 1
Equiment Dr, $5,400
To Cash $5,400
(Being equipment is recorded)
Feb 17
Repair expenses Dr, $820
To Cash $820
(Being repair expense is recorded)
Dec 31
Depreciation expenses-equipment Dr, $43,590
To Accumulated depreciation-equiment $43,590
(Being depreciation expense is recorded)
For Computing the Depreciation year 2018
Particulars Amount
Jan 1 2017 Cost of loader ($287,600 + $11,500 + $1,500) $300,600
Add cost of air conditioning installation on
Jan 3 2017 $4,800
Book value of depreciation for year 2017 $305,400
Less: Depriciation of year 2017
($305,400 - $20,600 - $1,400) ÷ 4 $70,850
After depreciation the book value for year 2017 $234,550
Add: Cost to overhaul the loader's engine $5,400
Before depreciation the book value of 2018 $239,950
Depreciation of year 2018
($239,950 - $22,000) ÷ (4 - 2 + 1) $43,590
Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it does not have 200 cases of olives in stock, so it sends Mack's Bar 140 cases of olives and 60 cases of onions. Olive Outlet notifies Mack's Bar that they are shipping the onions in lieu of olives. Later that day, Mack's Bar phones Olive Outlet and tries to revoke the offer. According to the Uniform Commercial Code (UCC), which of the following statements holds true to this situation?
A. Olive Outlet has accepted and breached the contract.
B. Mack's Bar must reject the shipment as the goods are nonconforming.
C. Mack's Bar must accept the shipment as they were notified.
D. Olive Outlet's shipment is considered a counteroffer.
business-law
Answer:
D) Olive Outlet's shipment is considered a counteroffer.
Explanation:
Depending on how Mack reacts to Olive's shipment, this can be considered either:
A. Olive Outlet has accepted and breached the contract. D. Olive Outlet's shipment is considered a counteroffer.Since Mack simply decided to reject Olive's shipment and revoke their initial offer, Olive's actions would be considered a counter offer. Olive did not have to accept Mack's offer in first place since an order to promptly ship goods invites the seller to ship the goods promptly or promise to do so as soon as possible. Olive did not have to ship the goods, since no contract was made.
Since Olive decided to ship other goods, it can be considered a counter offer which Mack is free to accept or reject. Since he chose to reject it, there is nothing Olive can do about it.
Use the following information for the Quick Study below.
[The following information applies to the questions displayed below.]
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).
Merchandise inventory $ 45,300 Sales returns and allowances $ 5,000
T. Nix, Capital 130,300 Cost of goods sold 109,500
T. Nix, Withdrawals 7,000 Depreciation expense 11,800
Sales 162,100 Salaries expense 40,000
Sales discounts 4,400 Miscellaneous expenses 5,000
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,400.
Answer:
Nix’It Company’s Journal entries
July 31
Dr Sales 162,100
Cr Incomes summary 162,100
(To close sales revenue to income summary recorded)
July 31
Dr Income summary 175,600
Cr Sales returns and allowances $ 5,000
Cr Cost of goods sold 109,600
Cr Depreciation expense 11,800
Cr Salaries expense 40,000
Cr Sales discounts 4,400
Cr Miscellaneous expenses 5,000
(To close expenses account recored)
Explanation:
Cost of goods sold+( Merchandise inventory still available-Merchandise inventory)
109,500+(45,400-45,300)
=109,500+100
=109,600
Complete the following table by selecting the redistributive philosophy that matches each statement. Statement Utilitarianism Libertarianism Liberalism The government should punish crimes and enforce voluntary agreements, but not redistribute income. The government should choose policies deemed to be just, as evaluated by an impartial observer behind a "veil of ignorance." The government should choose policies to maximize the total utility of everyone in society. Suppose that Neha believes that the government should aim to raise the welfare of the poorest people in society, because if we all started in the exact same position in life and then created rules and laws to obey as a society, people would be concerned about ending up at the bottom of the income distribution. Which redistributive philosophy is consistent with Neha's view.
a. Liberalismb. Libertarianismc. Utilitarianism
Answer: Please see below.
Explanation:
The government should punish crimes and enforce voluntary agreements, but not redistribute income----libertarianism
The government should choose policies deemed to be just, as evaluated by an impartial observer behind a "veil of ignorance.----liberalism
The government should choose policies to maximize the total utility of everyone in society--
utilitarianism
---Nehas philosophy here as an impartial observer is void of self interest and is of the opinion that if government be just and equal in it's redistribution by raising the welfare of the poorest people in society, then people will strive to avoid being at the bottom of income distribution, this means that Nehas philosophy seeks policies that are just and therefore is consistent with -liberalism.
Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its subscriptions below average variable cost. Firm B tried to compete by also selling subscriptions below average variable cost, but went bankrupt and exited the market. Several months after Firm B exited the market, Firm A raised prices by 40 percent and is currently earning large, positive economic profits. Based only on this information, an argument can be made that:____________.
A. the mail-order DVD rental subscription market is a monopolistically competitive market.
B. Firm A engaged in predatory pricing.
C. Firm B must have made bad business decisions because it went bankrupt.
D. Firm B engaged in predatory pricing.
E. FirmA and Firm B must have had a collusive agreement
Answer:
B. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell this good
Firm A decided to price its subscriptions below average variable cost that is it lowered it's prices which made Firm B to also lower it's own, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this, Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that has to do with lowering the cost of goods and services for a short-term, in order to make competitors lower their price, making them to go bankrupt in the process and thereby exiting the market.
If real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, is known as:
a. an expansion
b. a recession
c. a business cycle
Small ups and downs in real GDP follow a consistent, predictable pattern.
a. True
b. False
Answer:
b. a recession
False
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export
Real GDP is GDP calculated excluding the effects of inflation.
A recession is defined as a period of negative economic growth. An economy is in recession when the GDP over two consecutive quarters is negative.
Trends in real GDP aren't predictable because factors affecting real GDP aren't predictable.
For example, an unforseen event can suddenly affect the economy and greatly depress either consumption or investment or government spending or even net export.
I hope my answer helps you
Pablo Management has two employees, each of whom earns $120 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the two employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year’s Day (January 1) was an unpaid holiday. Prepare the year-end adjusting entry for wages expense and record payment of the employees’ wages on Friday, January 4.
Answer:
December 31:
To record accrued wages for one day : (2 workers × $120) =$240
January 4:
To record accrued and current wages.
Wages expenses = 2 workers × 3 days × $120 =$720
Cash =2 workers × 4 days ×$120= $960
Balance=$240
1.)December 31
Wages expenses $240
Wages payable $240
2.)January 4 General Journal
Wages payable $240 (Debit)
Wages expenses $720 (Credit)
Cash $960
Typical components in a claim are the claim, a rationale, a call to action, and a statement of goodwill. As you write claims, keep in mind that your goal is to have your claim honored. Focus on facts first and emotions second, if at all. Lay out a logical, reasonable, and professional explanation for your claim. Emotional claims are far more likely to be rejected. Also, remember that you will often work with the same people again and again. So, be polite and focus on the long-term working relationship.
Answer:
True.
Explanation:
These assumptions are true, as a claim can be described as a request for correction or compensation of errors.
Therefore, when writing a claim, it is necessary to focus on adopting a respectful communication with the recipient, who in the workplace will probably be someone that you establish a type of professional relationship, so it is ideal to maintain an ethical and direct posture, exposing all facts of your claim in a logical and non-emotional way, providing the necessary justifications for the claim, which should focus on action and resolution.
For higher levels of management, responsibility accounting reports a.contain about the same level of detail as reports for lower levels of management b.are more detailed than for lower levels of management c.are rarely provided or reviewed d.are more summarized than for lower levels of management
Answer:
d. are more summarized than for lower levels of management
Explanation:
This report is generally explained to be a rundown of a company's budget and also expenditure and it is comprised also of different operations by higher levels of the company's management. In as much as it gives reports and details of the lower part of the company, it is generally explained to be more summarized for higher management levels than for lower levels of management. In its bid to assist and control the company's head or responsibility units, it gives headway to staff care/welfare and also steady overview of benefits to staffs.
Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will remain in business for one more year. The companies' economists agree that the probability of the continuation of the current expansion is 80 percent for the next year and the probability of a recession is 20 percent. If the expansion continues, each firm will generate earnings before interest and taxes (EBIT) of $3.5 million. If a recession occurs, each firm will generate earnings before interest and taxes (EBIT) of $1.9 million. Steinberg's debt obligation requires the firm to pay $980,000 at the end of the year. Dietrich's debt obligation requires the firm to pay $2 million at the end of the year. Neither firm pays taxes. Assume a discount rate of 10 percent.
a. What is the value today of Steinberg's debt and equity?
b. What is the value today of Dietrich's debt and equity?
c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?A. DisagreeB. Agree
Answer:
a. What is the value today of Steinberg's debt and equity?
$2,890,909b. What is the value today of Dietrich's debt and equity?
$2,890,909c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?
A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).Explanation:
economic expansion 80% chance, EBIT $3.5 million
economic recession 20% chance, EBIT $1.9 million
expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million
Steinberg's debt obligations $980,000 at the end of next year
Dietrich's debt obligations $2,000,000 at the end of next year
total company value = $3.18 million / (1 + 10%) = $2,890,909
The Dodd-Frank Wallstreet Reform and Consumer Protection Act evolved from the mortgage industry meltdown, which was the consequence of deceptive behavior of professionals on Wall Street and uninformed consumers who risked too much and purchased homes whose future monthly payments were more than they could afford. The agency that was created to provide consumers with accurate information so they can make informed decisions about loans and other financial instruments is known as ___________________.
Answer:
Consumer Financial Protection Bureau (CFPB)
Explanation:
The Consumer Financial Protection Bureau (CFPB) was created in 2010 in response to the Great Recession. Its creation was authorized by the Dodd-Frank Act.
Its main duties include supervising banks, lenders, debt collection agencies, credit reporting agencies, and other non-bank entities related to credits and debts. One of its main goals is to make information about credits more clear to ordinary customers, specially credit cards and mortgages. That should help customers understand their rights and responsibilities better.
Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond
Answer:
Explanation:
In order to calculate he present value or worth of this bond we woulñd have to make the following calculations:
Face value (FV) $ 1,000.00
Coupon rate 8.50%
Number of compounding periods per year 2
Interest per period (PMT) $ 42.50
Number of years to maturity 8
Number of compounding periods till maturity (NPER) 16
Market rate of return/Required rate of return per period (RATE) 5.00%
Therefore, Bond price= PV(RATE,NPER,PMT,FV)*-1
Bond present worth=$918.72
The present value or worth of this bond is $918.72
The present value of this bond is $572.
Data and Calculations:
N (# of periods) = 16 (8 years x 2) or semi-annually
I/Y (Interest per year) = 8.5%
PMT (Periodic Payment) = 50
Face Value of bond = $1,000
Acceptable rate of return = 10%
Semi-annual interest = $50 ($1,000 x 10% x 1/2)
Results:
The present value of the bond = $572.02
The sum of periodic payments = $800.00 ($50 x 16)
Total Interest = $227.98
Thus, the present value of the bond is $572.
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Which type of supply chain structure tends to minimize the risk of catastrophic supply chain quality risks, similar to the kind Mattel experienced with lead paint in toys:__________.
A) A relational value chain
B) A price driven market mechanism
C) A vertically integrated supply chain
D) A modular value chain
Answer:
The correct answer is the option C: A vertically integrated supply chain.
Explanation:
To begin with, a vertically integrated supply chain is the one that the companies choose in order to have a higher management over the whole supply chain and that is because the principal company who uses that strategy is the one who will give the orders and manage the other firms of the supply chain with the purpose of establishing better results by avoinding catastrophic risks that can happen. That is why, a vertically integrated supply chain tends to minimize the risks inside the chain.
For the year ending December 31, 2020, Monty Corp. reports net income $130,000 and cash dividends $81,000. Determine the balance in retained earnings at December 31 assuming the balance in retained earnings on January 1, 2020, was $215,000. (List items that increase retained earnings first.)
Answer:
The balance in retained earnings at December 31 is $264,000.00
Explanation:
The balance in retained earnings at December 31 can be computed using the below ending retained earnings formula:
ending retained earnings=beginning retained earnings+net income-dividends
beginning retained earnings was the opening balance of retained earnings at January 1 2020 which was $215,000
net income for the year is $130,000
dividends of $81,000 were paid
ending retained earnings=$215,000+$130,000-$81,000=$ 264,000.00
On November 1, 2017, Rodgers Enterprises sold merchandise with a cost of $7,000 for $25,000, FOB destination, with payment terms of 2/10, n/40. The company paid transportation costs of $100. Customer returns on this sale were $5,000 (with a cost of $2,500). The merchandise was returned on November 6. The company received the payment for the balance amount on November 10, 2017. Calculate the net sales revenue. Group of answer choices $19,600 $20,000 $4,500 $20,100
Answer:
The net sales revenue is $19,600
Explanation:
In order to calculate the net sales revenue we would have to make the following calculation:
Net Sales Revenue=Sales Revenue-Sales Returns and Allowances-Sales Discounts
Sales Revenue=$25,000
Sales Returns and Allowances= $5,000
Sales Discounts [($25,000-$5,000)*2%]= $400
Net Sales Revenue=$25,000-$5,000 -$400
Net Sales Revenue=$19,600
The net sales revenue is $19,600
Ned went to the supermarket to buy bread and ice cream, While he was in the
checkout line, he added a candy bar and some chewing gum to his shopping
cart. Which two products were impulse purchases?
A. The bread and ice cream
B. The candy bar and chewing gum
C. The candy bar and ice cream
D. The bread and chewing gum
Answer:
An impulse purchase is an item that was bought, but not previously planned. In Ned's example, he did not plan to buy a candy bar and the chewing gum. Thus, they are impulse purchases.
The correct answer is B.
The following balances appear on the books of Sarah Simmons Enterprises: Retained Earnings, $29,600; Dividends, $10,500; Income Summary, $0; Service Revenue, $24,500; Salaries Expense, $6,200; Rent Expense, $3,500; and Advertising Expense, $2,000. All accounts have normal balances.Requirements1. Open a T-account for each account, and insert its adjusted balance as given (denote as Adj. Bal.) at December 31.2. Post the closing entries to the accounts, denoting posted amounts as Clos.3. Compute the ending balance of Retained Earnings.
Answer:
A. T Account balance $19,100
B. $31,600
C.$31,600
Explanation:
Sarah Simmons Enterprises
A.
T-account account
Dr Cr
Dr C/o 10500 Cr Beginning balance 29,600
Cr C/o 10500
Cr Balance 19,100
b.
Simmons enterprise retained earnings ending balance will be:
Retained earnings 29,100
Less Dividends 10,500
Balance 19,100
Add (10,500+2,000) 12,500
Balance 31,600
C. Ending balance of Simmons, Capital will be 31,600 just as in ( b) where the retained earnings ending was 31,600
Expand Your Critical Thinking 24-2 (Part Level Submission)Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size.One such non-custom model is called Luxury Base Frame. Normal production is 940 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 850 units were produced; 4,200 direct labor hours were allowed for standard production, but only 3,800 hours were used. Standard and actual overhead costs were as follows.ctual Standard (940 units) (850 units) Indirect materials Indirect labor (Fixed) Manufacturing supervisors salaries (Fixed) Manufacturing office employees salaries (Fixed) Engineering costs Computer costs Electricity (Fixed) Manufacturing building depreciation (Fixed) Machinery depreciation (Fixed) Trucks and forklift depreciation Small tools (Fixed) Insurance (Fixed) Property taxes $ 11,300 40,600 21,200 12,300 25,500 9,400 2,400 7,500 2,800 1,400 660 470 280 $135,810 $ 11,600 48,100 20,800 11,800 23,600 9,400 2,400 7,600 2,800 1,400 1,320 470 280 $141,570 Total X Your answer is incorrect. Try again. Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate 28.90 per direct labor hour(a) Determine the overhead application rate. THE ANSWER IS NOT 28.90 (Round answer to 2 decimal places, e.g. 15.75.)(b) Determine how much overhead was applied to production.(c) Calculate the total overhead variance, controllable variance, and volume variance.
Answer:
total budgeted costs = $141,570
budgeted production = 1,000 units
standard rate = $141,570 / 1,000 = $141.57 per unit
total actual costs = $135,810
actual production = 850 units
actual rate = $135,810 / 850 = $159.78 per unit
total fixed overhead variance = actual overhead costs - budgeted overhead costs = $135,810 - $141,570 = -$5,760 favorable. The actual overhead expense was lower than budgeted.controllable variance = (actual rate - standard rate) x actual units = ($159.78 - $141.57) x 850 units = $15,478.50 unfavorable. The actual overhead rate was higher than the standard rate, that is why the variance is unfavorable (more money was spent than budgeted).volume variance = (standard activity - actual activity) x standard rate = (1,000 - 850) x $141.57 = 150 x $141.57 = $21,235.50 unfavorable. Less units where produced than budgeted, that is why the variance is unfavorable.