Answer:
The disagreement between these economists is most likely due to .
differences between perceptions versus reality.
Explanation:
A bailout occurs when the government provides capital resources to a distressed business or failing company, which it considers to be too big to fail. The purpose is to prevent the consequences of the downfall of such an entity, which may include bankruptcy, default on its financial obligations, economic impact on the wider society. Most bailouts are made for the benefit of the society rather than the business entity. The mindset from which two economists can perceive the reality of bailouts will always differ.
These are selected 2017 transactions for Flounder Corporation: Jan. 1 Purchased a copyright for $110, 750. The copyright has a useful life of 5 years and a remaining legal life of 33 years. Mar. 1 Purchased a patent with an estimated useful life of 6 years and a legal life of 20 years for $138, 600. Sept. 1 Purchased a small company and recorded goodwill of $153, 350. Its useful life is indefinite.
Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer and Explanation:
The adjusting journal entries are as follows:
On Dec 31
Amortization expense $22,150 ($110,750 ÷ 5 years)
To Copyrights $22,150
(Being amortization expense is recorded)
Here amortization expense is debited as it increased the expenses and credited the copyrights as it decreased the assets
On Dec 31
Amortization expense $19,250 ($38,600 ÷ 6 years × 10 ÷ 12)
To Patents $19,250
(Being amortization expense is recorded)
Here amortization expense is debited as it increased the expenses and credited the patents as it decreased the assets
On Dec 31
No journal entry is required
Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $ 6,800 Accounts Payable $ 12,600 Accounts Receivable 32,750 Deferred Revenue (deposits) 3,250 Supplies 1,850 Notes Payable (long-term) 45,500 Equipment 14,500 Common Stock 7,500 Land 10,050 Retained Earnings 17,300 Building 20,200 Following are the January transactions: Received a $870 deposit from a customer who wanted her piano rebuilt in February. Rented a part of the building to a bicycle repair shop; $355 rent received for January. Delivered five rebuilt pianos to customers who paid $12,775 in cash. Delivered two rebuilt pianos to customers for $6,400 charged on account. Received $5,300 from customers as payment on their accounts. Received an electric and gas utility bill for $675 for January services to be paid in February. Ordered $945 in supplies. Paid $1,750 on account in January. Paid $11,000 in wages to employees in January for work done this month. Received and paid cash for the supplies in (g). Post the journal entries to the T-accounts. Show the unadjusted beginning and ending balances in the T-accounts
Answer:
Ricky’s Piano Rebuilding Company
Cash
Account Titles Debit Credit
Beginning Balance $ 6,800
Deferred Revenue 870
Rent Revenue 355
Service Revenue 12,775
Accounts Receivable 5,300
Accounts Payable $1,750
Wages Expense 11,000
Balance $13,350
Totals $26,100 $26,100
Accounts Receivable
Account Titles Debit Credit
Beginning Balance $32,750
Service Revenue 6,400
Cash $5,300
Balance $33,850
Totals $39,150 $39,150
Supplies
Account Titles Debit Credit
Beginning Balance $1,850
Equipment
Account Titles Debit Credit
Beginning Balance $14,500
Building
Account Titles Debit Credit
Beginning Balance $20,200
Land
Account Titles Debit Credit
Beginning Balance $10,050
Utilities Expense
Account Titles Debit Credit
Accounts Payable $675
Wages Expense
Account Titles Debit Credit
Cash $11,000
Accounts Payable
Account Titles Debit Credit
Beginning Balance $12,600
Cash $1,750
Balance 10,850
Totals $12,600 $12,600
Deferred Revenue (deposits)
Account Titles Debit Credit
Beginning Balance $3,250
Cash 870
Balance $4,120
Totals $4,120 $4,120
Rent Revenue
Account Titles Debit Credit
Cash $355
Service Revenue
Account Titles Debit Credit
Cash $12,775
Accounts Receivable 6,400
Balance $19,175
Totals $19,175 $19,175
Notes Payable (long-term)
Account Titles Debit Credit
Beginning Balance $45,500
Common Stock
Account Titles Debit Credit
Beginning Balance $7,500
Retained Earnings
Account Titles Debit Credit
Beginning Balance $17,300
Explanation:
a) Data and Calculations:
Beginning Balance Sheet
As of January 1, Year 2:
Cash $ 6,800
Accounts Receivable 32,750
Supplies 1,850
Equipment 14,500
Building 20,200
Land 10,050
Accounts Payable $ 12,600
Deferred Revenue (deposits) 3,250
Notes Payable (long-term) 45,500
Common Stock 7,500
Retained Earnings 17,300
Totals $86,150 $86,150
The journal entries to record the January transactions for Ricky's Piano Rebuilding Company are as follows. The unadjusted beginning and ending balances for the accounts are also shown in Sheet 1.
A journal entry is used to record a business transaction in the accounting records of a business.
A journal entry is usually recorded in the general ledger; alternatively, it may be recorded in a subsidiary ledger that is then summarized and rolled forward into the general ledger. The general ledger is then used to create financial statements for the business.
Here are the journal entries to record the January transactions for Ricky's Piano Rebuilding Company:
Attached is sheet 1.
Unadjusted Beginning and Ending Balances are shown in Sheet 2 attached.
Ending Balances:
The ending balance is the net residual balance in an account. It is usually measured at the end of a reporting period, as part of the closing process. An ending balance is derived by adding up the transaction totals in an account and then adding this total to the beginning balance.
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The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2001 as the base year.
Year 2000 2001
Price Quantity Price Quantity
Ice Cream $7.00 600 $3.00 400
Blue Jeans $70.00 20 $20.00 90
Laptops $300.00 5 $300.00 5
2000 nominal GDP = $_________
2001 nominal GDP = $_________
2000 real GDP = $_________
2001 real GDP = $_________
Answer and Explanation:
The computation is shown below:
As we know that
Nominal GDP = Sum of (Present Year Price × Present Year Quantity)
And,
Real GDP = Sum of (Base Year Price × Present Year Quantity)
Now
(a) Nominal GDP, 2000 is
= $[(7 × 600) + (70 × 20) + (300 × 5)]
= $4,200 + $1,400 + $1,500
= $7,100
(b) Nominal GDP, 2001 is
= $[(3 × 400) + (20 × 90) + (300 × 5)]
= ($1,200 + $1,800 + $1,500)
= $4,500
(c) Real GDP, 2000 is
= $[(3 × 600) + (20 × 20) + (300 × 5)]
= $1,800 + $400 + 1,500
= $3,700
(d) Real GDP, 2001 is
= $[(3 × 400) + (20 × 90) + (300 × 5)]
= $1,200 + $1,800 + $1,500
= $4,500
Stuart Manufacturing Company was started on January 1, year 1, when it acquired $89,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $32,000 and $40,000, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of six years. The company paid $12,000 for salaries of administrative personnel and $21,000 for wages to production personnel. Finally, the company paid $26,000 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 10,000 units of product and sold 8,000 units at a price of $9 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)
Required
a. Determine the total product cost and the average cost per unit of the inventory produced in year 1.
b. Determine the amount of cost of goods sold that would appear on the year 1 income statement.
c. Determine the amount of the ending inventory balance that would appear on the December 31, year 1, balance sheet.
d. Determine the amount of net income that would appear on the year 1 income statement.
e. Determine the amount of retained earnings that would appear on the December 31, year 1, balance sheet.
f. Determine the amount of total assets that would appear on the December 31, year 1, balance sheet.
LAnswer:
A. $ 5.3
B. $ 42,400
C. $ 10,600
D.$4,000
E. $13,600
F. $102,600
Explanation:
A. Calculation to Determine the total product cost and the average cost per unit of the inventory produced in year 1
First step
Total product cost= $ 6,000 + $21,000 + $26,000 = $ 53,000
Second step
Manufacturing equipment depreciation for 1 year = ($40,000 - $4,000)/6
(Manufacturing equipment depreciation for 1 year = $6,000
The average cost per unit = Total product cost / total products = $ 53,000 / 10,000 = $ 5.3
b. Calculation to Determine the amount of cost of goods sold that would appear on the 2018 income statement.
COGS= $ 5.3 * 8,000
COGS = $ 42,400
c. Calculation to Determine the amount of the ending inventory balance that would appear on the December 31, 2018,balance sheet.
The ending inventory balance = $ 5.3 * (10,000 - 8,000)
The ending inventory balance = $ 10,600
d. Calculation to Determine the amount of net income that would appear on the 2018 income statement.
STUART MANUFACTURING COMPANY
Income Statement
Sales (8000 * $9)$72,000
Cost of Goods sold ($42,400)
Gross Margin$29,600
Office furniture depreciation($4,000)
salaries of administrative personnel($12,000)
Net Income$ 13,600
Office furniture depreciation for 1 year =($32,000 - $0)/8
Office furniture depreciation for 1 year= $4,000
e. Calculation to Determine the amount of retained earnings that would appear on the December 31, 2018, balancesheet.
Retain Earnings = $0 + $ 13,600 = $13,600
f. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet.Total Assets = 30,000 + 10,600 + 28,000 + 34,000 = $102,600
Leon, age 14, is a dependent of his parents. In 2020 he earned $6,500 from a part-time job and $7,500 of interest income on bonds given him by his grandparents, resulting in taxable income of $7,150. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and other taxable income taxed at his own rate. Leon's taxable income will be divided as follows A) net unearned income -$1,850 and earned taxable income -$5,300. B) net unearned income -$7,150 and earned taxable income -$0. C) net unearned income -$0 and earned taxable income -$7,150. D) net unearned income -$5,300 and earned taxable income -$1,850
Answer:
Leon's taxable income will be divided as follows
B) net unearned income -$7,150 and earned taxable income -$0.
Explanation:
a) Data:
Earnings from part-time job = $6,500
Interest income from grandparents' bonds = $7,500
Taxable income on the interest income = $7,150
b) For 2020, Leon, age 14, can earn up to $12,200 without paying income tax. This implies that he cannot pay income tax on the $6,500 which he earns from a part-time job. But he is expected to pay tax on the interest income from bonds given him by his grandparents. Under the kiddie tax rules, his income is separated between net unearned income and other taxable income taxed at his own rate.
Suppose the United States is currently producing 100tons of hamburgers and 45tons of tacos and Mexico is currently producing 20tons of hamburgers and 25tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of nothingadditional ton(s) of hamburgers can be produced for the two countries combined (enter a numeric response using an integer)
Answer: 50 additional tons of hamburgers
Explanation:
United States opportunity costs:
Hamburger opportunity cost = 45/100 = 0.45 tons of tacos
Taco opportunity cost = 100/45 = 2.22 tones of hamburgers
Mexico opportunity cost:
Hamburger opportunity cost = 25/20 = 1.25 tons of tacos
Taco opportunity cost = 20/25 = 0.8 tones of hamburgers
US should specialize in Hamburger production because they have a lower opportunity cost.
If both countries combined production of hamburgers then the total would be:
= 100 + 20
= 120 tons of hamburgers
There is missing information on this question which is the US production of hamburgers when it produces 0 tacos. We shall assume that number to be 170 tons of hamburgers.
The total additional tons produced would be:
= US tons when producing only hamburgers - Combined hamburger production
= 170 - 120
= 50 additional tons of hamburgers
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $30 million. During the year, pension benefits paid by the trustee were $4 million. Service cost was $10 million. Pension plan assets earned $5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31.
Answer:
The amount of projected benefit obligation is on Dec 31 is $39 million
Explanation:
The computation of the amount of projected benefit obligation is on Dec 31 as follows;
Beginning PBO $30 million
Service cost $10 million
Interest cost (10% × $30) $3 million
Loss (gain) on PBO $0
Less: benefits paid -$4 million
Ending PBO $39 million
Hence, the amount of projected benefit obligation is on Dec 31 is $39 million
Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $967,000. Without new projects, both firms will continue to generate earnings of $967,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 13%.
A. What is the current PE ratio for each company?
B. Pacific Energy Company has a new project that will generate additional earnings of $117,000 each year in perpetuity. Calculate the new PE ratio of the company.
C. Atlantic Energy has a new project that will increase earnings by $217,000 in perpetuity. Calculate the new PE ratio of the firm.
Answer and Explanation:
The computation is shown below:
a. Current PE ratio is
For Pacific energy company
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
For U.S Bluechips
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
b. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $117,000) ÷ 0.13) ÷ ($967,000)
= 8.62 times
c. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $217,000) ÷ 0.13) ÷ ($967,000)
= 9.42 times
Data pertaining to the postretirement health care benefit plan of Danielson Delivery Service include the following for the current calendar year: Service cost $ 150,000 APBO, January 1 $ 800,000 Plan assets (fair value), January 1 $ 80,000 Prior service cost (current year amortization, $2,000) $ 90,000 Retiree benefits paid (end of year) $ 90,000 Net gain (current year amortization, $1,000) $ 92,000 Contribution to health care fund (end of year) $ 85,000 Return on plan assets (actual and expected) 10 % Discount rate 8 % Required: 1. Determine Danielson's postretirement benefit expense for the current year.
Answer: $207,00
Explanation:
Postretirement benefit for the year is:
= Service cost + Interest cost + Amortization of prior service cost - Return on plant assets - Amortization of net gain
Interest cost = Discount rate * Actual Projected benefit obligation (APBO)
= 8% * 800,000
= $64,000
Return on plant assets = Return on plan assets (actual and expected)* Plan assets
= 10% * 80,000
= $8,000
Postretirement benefit = 150,000 + 64,000 + 2,000 - 8,000 - 1,000
= $207,000
Compare and by converting their income statements to common size. Martinez Rojo Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . $10,900 $19,536 Cost of goods sold. . . . . . . . . . . . . . . . . . 6,660 14,203 Other expense. . . . . . . . . . . . . . . . . . . 3,564 4,356 Net income. . . . . . . . . . . . . . . . . . . . . . . . . $676 $977 Which company earns more net income? Which company's net income is a higher percentage of its net sales?
Answer:
a. Rojo
b. Martinez
Explanation:
When converting the income statement to common size, everything is made a percentage of net sales.
Martinez Rojo
Net Sales 100% 100%
Cost of goods sold (61.1% ) ( 72.7%)
Other expenses (32.7% ) ( 22.3%)
Net Income 6.2% 5.0%
Working
Martinez Rojo
Cost of goods 6,660/10,900 14,203/19,536
Other expenses 3,564/10,900 4,365/19,536
Net income 676/10,900 977/19,536
a. Company with more Net income
= Rojo
b. Company with higher net income as percentage of net sales
= Martinez
Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of direct materials used?
a. $208,400
b. $405,500
c. $440,800
d. $201,500
Answer:
Direct material used= $183,000
Explanation:
Giving the following information:
Direct Materials Purchased 171,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 18,000 + 171,000 - 6,000
Direct material used= $183,000
Prove:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 30,000 + 183,000 + 55,000 + 112,000 - 40,000
cost of goods manufactured= $340,000
On September 25, 2018 Colson Corp. sold 200,000 widgetrons to Cavanaugh Corp at $5 per unit. Half of the units were delivered on November 15, 2018, and the remaining 100,000 units were delivered on January 20, 2019. At the time of sale Cavanaugh paid 40% of the contract price and agreed to pay the rest in equal installments on the two delivery dates. What amount of revenue should Colson recognize from this sale in 2018?
A. $0.
B. S1,000,000.
C. $500,000.
D. $700,0.
Correct options read:
A. $0
B. $500,000
C. $700,000
D. $1,000,000
Answer:
C. $700,000
Explanation:
Note only payments made on this sale that fall under the year 2018 is accounted for. Hence, we can make the following conclusions:
Total payment due: $5 per unit x 200,000 = $1,000,000.Cavanaugh paid 40% of the contract price on September 25, 2018 = $400,000 (40% or 0.4 x $1,000,000).Also since half of the units were delivered on November 15, 2018, and he agreed to pay the rest in equal installments, we expect him to pay half the $600,000 left:
units were delivered on November 15, 2018 = $300,000 paid.Total payments in the year:
September 25, 2018; $400,000 + $300,000; November 15, 2018 = $700,000.
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7.7 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $10.5 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.7 million to build, and the site requires $920,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Answer:
$33,120,000
Explanation:
Calculation for What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Using this formula
Proper Cash Flow Amount = (Expected Cost of Selling + Cost of Building Manufacturing Plant + Cost of Grading)
Let plug in the formula
Proper Cash Flow Amount = ($10,500,000 + $21,700,000 + $920,000)
Proper Cash Flow Amount = $33,120,000
Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $33,120,000
Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two-year-old ovens at a discount for $700,000. Great Harvest incurred and paid freight costs of $35,000, and its employees ran special electrical connections to the ovens at a cost of $5,000. Labor costs were $37,800. Unfortunately, one of the ovens was damaged during installation, and repairs cost $5,000. Great Harvest then consumed $900 of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $1,500 and placed the machines in operation.
Prepare a schedule showing the amount at which the ovens should be recorded in Great Harvest's Equipment account.
Answer:
Particulars Amount
Purchase price $700,000
Add: Freight cost $35,000
Add: Electrical connections $5,000
Add: Labor costs $37,800
Add: Bred dough used $900
Add: Safety guards $1,500
Total cost of Equipment $780,200
Note: Repairs cost of $5,000 will not be included
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 31,500 Total fixed manufacturing overhead cost $ 220,500 Variable manufacturing overhead per machine-hour $ 6.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 40 Direct materials $ 685 Direct labor cost $ 1,370 If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$2575
Explanation:
Total variable overhead estimated=(6*31,500)= $189,000
Hence total overhead estimated=Total variable overhead estimated+Total fixed overhead estimated = $189,000 + $220,500 = $409,500
Hence, predetermined overhead rate = $409,500 / 31,500 = $13 per machine hour
Hence, total overhead applied=(13*400) = $520
Hence, total job cost=Direct material+Direct labor+Total overhead = $685 + $1,370 + $520 = $2575
On December 31, 2019, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Wintergreen received $139,875 when it issued the bonds (or $150,000 x .9325). After recording the related entry, Bonds Payable had a balance of $150,000 and Discounts on Bonds Payable had a balance of $10,125. Wintergreen uses the straight-line bond amortization method. The first semiannual interest payment was made on June 30, 2020.
Complete the necessary journal entry for June 30, 2020, by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Dr Bond Interest Expense$5,756
Cr Cash $5,250
Discount on bond payable $506
Explanation:
Preparation of the necessary journal entry for June 30, 2020
Based on the information given the necessary journal entry for June 30, 2020 will be :
Dr Bond Interest Expense$5,756
($5,250 + $506 = $5,756)
Cr Cash $5,250
($150,000 x 7% x 1/2 = $5,250)
Discount on bond payable $506
($10,125/20 interest Periods = $506)
Note that in a situation where a 10-year bonds pay interest semiannually, what we would have will be 20 interest periods
Below are several transactions that took place in Seneca Company last year: Paid suppliers for inventory purchases. Bought equipment for cash. Paid cash to repurchase its own stock. Collected cash from customers. Paid wages to employees. Equipment was sold for cash. Common stock was sold for cash to investors. Cash dividends were declared and paid. A long-term loan was made to a supplier. Income taxes were paid to the government. Interest was paid to a lender. Bonds were retired by paying the principal amount due. Required: Indicate how each of the above transaction would be classified on a statement of cash flows. As appropriate, place an X in the Operating, Investing, or Financing column. Also, place an X in the Cash Inflow or Cash Outflow column.
Answer:
Note: Operating = A, Investing = B, Financing = C, Cash Inflow column = D, Cash Outflow column = E
A B C D E
a. Paid suppliers for inventory X X
purchases.
b. Bought equipment for cash. X X
c. Paid cash to repurchase its X X
own stock.
d. Collected cash from customers. X X
e. Paid wages to employees. X X
f. Equipment was sold for cash. X X
g. Common stock was sold for X X
cash to investors.
h. Cash dividends were declared X X
and paid.
i. A long-term loan was made to X X
a supplier.
j. Income taxes were paid to X X
the government.
k. Interest was paid to a lender. X X
l. Bonds were retired by paying X X
the principal amount due
Rubbermaid allows employees to spend a percentage of their working time on special projects. Imagine that, as a manager for Rubbermaid, you have the difficult job of choosing employees for your project team. You have limited positions, and because your team is among the most celebrated at the company, you have more volunteers than roles available. What is the best way to control the conflict
Answer:
Hire an external consultant to pick new team members for you
Explanation:
On the given scenario there are limited project spaces and plenty of volunteers for those positions.
An equitable and impartial method of choosing team members needs to be used to avoid conflict.
The best solution is to hire an external consultant who can be seen as impartial to do the selection.
This way employees will accept the objectivity of the selection since the external consultant does not have any underlying.interest in who occupies the project positions
Jessica can produce 2 boats in a day or 100 umbrellas in a day. Paul can produce 3 boats in a day or 120 umbrellas in a day. This means that for every boat that Jessica produces, her opportunity cost is 50 umbrellas. For every boat Paul produces, his opportunity cost is 40 umbrellas. What would you illustrates the idea of comparative advantage?
Answer: B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
Explanation:
Comparative advantage is a notion introduced by famous economist, David Ricardo. It argues that entities should produce the goods that they have a lower opportunity cost in producing as this would prove they are better at producing said goods because they are more efficient.
In this scenario, Paul most definitely has a comparative advantage over Jessica in the production of boats because he has a lower opportunity cost of 40 umbrellas when he does so. He is therefore more efficient at it than Jessica.
The option that illustrates comparative advantage is Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
What is comparative advantage?A person has comparative advantage in production of a good or service if it produces the good at a lower opportunity cost when compared to other people.
A person has a lower opportunity cost if it gives up fewer of other goods to produce a good. Paul has a comparative advantage in the production of boats. Jessica has a comparative advantage in the production of umbrellas.
Here are the options to this question:
A. Jessica produces fewer boats in a day than Paul, so she has comparative advantage in producing boats.
B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
C. Paul is better at producing boats because he can produce more boats in a day.
D. There is no comparative advantage in this case because Paul can produce more goods in a day.
E. Jessica produces fewer umbrellas in a day than Paul, so she has comparative advantage in producing boats.
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Manufacturing activities consist of materials, production, and sales activities. The materials activity consists of the purchase and issuance of materials to production. The production activity consists of converting materials into finished goods. At this stage in the process, the materials, labor, and overhead costs have been incurred and the schedule of cost of goods manufactured is prepared. The sales activity consists of selling some or all of finished goods available for sale. At this stage, the cost of goods sold is determined.
From the list below, select the items that are classified as a materials activity.
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
d. Work in process beginning inventory
e. Goods manufactured
f. Direct labor used
g. Factor overhead used
Answer:
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
Explanation:
Note: The materials activity consists of the purchase and issuance of materials to production
Thus, the items that are classified as a materials activity are :Raw materials used, Raw materials beginning inventory and Raw materials purchases
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144,000 miles. Taxi 10 cost $29,000 and is expected to have a salvage value of $200. Taxi 10 was driven 31,000 miles in 2021 and 33,500 miles in 2022.
Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit
Depreciable costs
eTextbook and Media
Compute the depreciation for each year. 2021 2022
Depreciation expense $
Answer:
depreciation expense 2021 = $6,200
depreciation expense 2022 = $6,700
Explanation:
depreciable value = $29,000 - $200 = $28,800
depreciation expense per mile driven = $28,800 / 144,000 = $0.20
number of miles driven during 2021 = 31,000
depreciation expense 2021 = 31,000 x $0.20 = $6,200
number of miles driven during 2020 = 33,500
depreciation expense 2022 = 33,500 x $0.20 = $6,700
A Student table and an Address table contain one linked record. What kind of table relationship do these tables
demonstrate?
a. one-to-one
b. one-to-many
c. many-to-many
d. many-to-none
Answer:
A.)
Explanation:
hope this helps
Meyers, Inc. presented the following data:
2024 Net income $2,500
Preferred stock:
10% cumulative, not convertible $3,000
Common stock:
1/1: 1,000 shares outstanding
9/1: 1,000 shares issued in a 2-for-1 stock split
10/1: 200 shares treasury stock acquired
11/1: 240 shares issued for cash
No preferred dividends were declared or paid in 2014, the first year of the company. The denominator to be used in Basic EPS is:_____.
a. 1.910.
b. 1,657.
c. 2,090.
d. 1,990.
Answer:
d. 1,990.
Explanation:
The computation of the denominator that should be used for determining the basic EPS is as follows:
Outstanding shares Oustanding months Equivalent units
2,000 (9 ÷ 12) 1,500
(1,000 × 2)
1,800 (1 ÷ 12) 150
(2,000 - 200)
$2,040 (2 ÷ 12) 340
(1,800 + 240)
Total shares 1,990
What happens to your employer-sponsored retirement plan if you decide to change employers?
Answer:
Most 401 (k) or IRA accounts allow employees to roll-over their accounts from the old employer to the new employer. Depending on the account and how much time you have been making contributions, you could also cash your retirement account, but that would mean starting from zero with the new employer.
Answer:
a). You may roll your money over to a new plan through your new employer.
b) You can withdraw the money from your plan in one lump sum and pay income taxes and likely a penalty as well.
c) You can leave the money in the plan with your former employer.
answer is correct
d) All of the above
Explanation:
Analyze the role individual team members and leaders play in ensuring or detracting from team success. In the analysis, considering the advantages and disadvantages of the team effectiveness model (Exhibit 7.2). For example, what would be some of the effective and ineffective individual and leadership behaviors regarding team environmental, design, process, and effectiveness practices
The correct answer to this open question is the following.
Unfortunately, you did not attach the team effectiveness model (Exhibit 7.2). You did not a link or picture of it.
However, trying to help you, we can comment on the following model.
We are going to use the Katzenbach and Smith Team Model.
This team effectiveness model has three important components at the base of the pyramid: collective work product, commitment, and personal growth.
From there, the next level indicates the specific goals of the team, the ground rules, the common approach, and the meaningful purpose of the team.
Going up the pyramid we have the Skills and Accountability.
In the Skills, the authors include interpersonal skills, technical skills, and problem-solving abilities. Regarding Accountability, the authors include mutual and personal accountability.
At the very top of the pyramid, we have the performance results.
This model helps to establish the foundation of the role individual team members and leaders play in ensuring team success.
For this to happen, leaders have to set the example of the n¿behavior they like to observe on team members. On the other hand, setting that example, team members are expected to follow through with the goals and expectations, following high standards of performance to accomplish goals.
A T-bill quote sheet has 90-day T-bill quotes with a 5.77 ask and a 5.71 bid. If the bill has a $10,000 face value, an investor could sell this bill for _____.
a. $9,857.25
b. $9,855.75
c. $9,859.21
d. $10,000
Answer:
a. $9,857.25
Explanation:
Price = Face value * (1 - Bid*Days/360)
Price = $10,000 * (1 - 5.71%*90/360)
Price = $10,000 * (1 - 5.71%*0.25)
Price = $10,000 * (1 - 0.014275)
Price = $10,000 * 0.985725
Price = $9,857.25
Select the statements below that are correct. Choose one or more: A. Conditional factor demands give the profit-maximizing choices of inputs, given the price of output. B. An isocost curve represents all possible combinations of the inputs of production that yield the same cost. C. If the cost of producing y units of output is C dollars, the isoquant for the level of output y must be identical to the isocost for C dollars. D. The cost function measures the minimal cost of producing any level of output, given the costs of the factors of production. E. An isoquant represents all possible combinations of the inputs of production that yield the same level of output.
Answer: B. An isocost curve represents all possible combinations of the inputs of production that yield the same cost.
D. The cost function measures the minimal cost of producing any level of output, given the costs of the factors of production.
E. An isoquant represents all possible combinations of the inputs of production that yield the same level of output.
Explanation:
Option A is incorrect
The conditional factor demand doesn't give the profit maximizing level given the output choices.
Option B is correct
An isocost curve represents all possible combinations of the inputs of production that yield the same cost.
Option C is incorrect
If the cost of producing y units of output is C dollars, it doesn't imply that the isoquant for the level of output y must be identical to the isocost for C dollars.
Option D is correct
The cost function measures the minimal cost of producing any level of output, given the costs of the factors of production.
Option E is correct
An isoquant represents all possible combinations of the inputs of production that yield the same level of output.
Therefore, the correct options are B, D, and E.
In 2008, Betserai was a 10-year-old quintrillionaire living in Bulawayo, Zimbabwe. He was literally rolling in money. In fact, Betserai has so much money that he decided to make kites out of billion dollar bills instead of putting the money into the bank to earn interest. None of Betserai's friends bothered to save their money, either. Rupert was Betserai's American pen pal and heard of Betserai's story and was extremely confused. He was taught that Zimbabwe was one of the poorer countries in the world, or at the least substantially poorer than the United States. Which statement best explains this phenomenon?
A. A country's wealth is based on the amount of money in circulation.
B. Zimbabwe was in the midst of an incredible economic boom, substantially increasing the wealth of all its citizens.
C. Rapid rises in price levels made the Zimbabwean dollar near worthless in terms of purchasing power.
D. All of these statements could explain what happened in Zimbabwe in 2008.
Answer:
C. Rapid rises in price levels made the Zimbabwean dollar near worthless in terms of purchasing power.
Explanation:
As in the given situation it is mentioned that 10 year old boy has the bill of billion dollar this represented that the country really printed the bill of billion dollar. It means that the attempt is to be done in order to print a currenct note of higher denomination that also represent that the country would increased such level also at the same time a big amount is required to purchased the goods and services.
Also the high denomination values would not consist of actual value as they have purchasing power i.e. negligible
Justin Slugger is about to sign a contract with the Columbus Homers. The professional baseball team has given him two options of joining the team with a lumpsum of $20,000,000 or an annuity of $2,500,000 for 15 years. The lumpsum will be paid one year after the signing day if Paul takes the first option. The first annuity will be paid on the signing day if he instead takes the second option. Which is the better option for Paul if an annual interest rate of 10% is utilized for the annuity? Do not consider taxes.
Answer:
Option 1 Present value = $18,181,818.18
Option2 Present value = $20,916,718.64
Option 2 which is an annuity for 15 years is a better option as it has a higher present value than option 1.
Explanation:
To decide the better option, we need to calculate the present value of option 1 which is the lumpsum and the present value of option 2 which is an annuity and compare these values.
The present value of option 1 can be calculated as follows,
Option 1 Present value = Future value / (1 + r)^t
Where,
r is the rate of return of interest or discount ratet is the time in yearsOption 1 Present value = 20,000,000 / (1+0.1)^1
Option 1 Present value = $18,181,818.18
The present value of option 2 can be calculate using the formula of present value of annuity due as the payments will be made at the start of the period. The formula for present value of annuity due is attached.
Option2 Present value = 2,500,000 + 2,500,000 * [(1 - (1+0.1)^-14) / 0.1]
Option2 Present value = $20,916,718.64
Option 2 which is an annuity for 15 years is a better option as it has a higher present value than option 1.
Longmire & Sons made sales on credit to Alderman Sports totaling $500,000 on April 18. The cost of the goods sold is $400,000. Longmire estimates 3% of its sales to Alderman may be returned. On May 22, $9,000 worth of goods (with a cost of $7,200) are returned by Alderman. Assume Longmire uses a perpetual inventory system.
Required:
Prepare the related journal entries for Longmire & Sons.
Answer:
April 18
Dr Account receivable 500,000
Cr Cash 500,000
April 18
Dr Cost of goods sold 400,000
Cr Merchandize inventory 400,000
May 22
Dr Sales return and allowance 9,000
Cr Account receivable 9,000
May 22
Dr Merchandize inventory 7,200
Cr Cost of goods sold 7,200
Explanation:
Preparation of the related journal entries for Longmire & Sons.
Based on the information given the related journal entries for Longmire & Sons will be :
April 18
Dr Account receivable 500,000
Cr Cash 500,000
(Being to record credit sales)
April 18
Dr Cost of goods sold 400,000
Cr Merchandize inventory 400,000
(Being to Record cost of goods sold)
May 22
Dr Sales return and allowance 9,000
Cr Account receivable 9,000
(Being to record goods return)
May 22
Dr Merchandize inventory 7,200
Cr Cost of goods sold 7,200
(Being to Record cost of goods return)
