Answer:
the economic order quantity is 313 units
Explanation:
The computation of the economic order quantity is shown below:
= sqrt( 2 ×annual demand × ordering cost) (carrying cost)
= sqrt(2 × 95,30 × $72) ÷ $14
= 313 units
hence, the economic order quantity is 313 units
The same should be considered and relevant
what is gompertz function
Answer:
The Gompertz curve or Gompertz function is a type of mathematical model for a time series, named after Benjamin Gompertz (1779–1865). It is a sigmoid function which describes growth as being slowest at the start and end of a given time period. ... It is a special case of the generalised logistic function.
MC Qu. 116 CWN Company uses a job order costing... CWN Company uses a job order costing system and last period incurred $70,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $85,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
Answer:
85%
Explanation:
With regards to the information above, predetermined overhead will be computed as;
Predetermined overhead = (Estimated overhead / Expected labor cost) × 100
Estimated overhead = $85,000
Expected labor cost = $100,000
Then,
Predetermined overhead = ($85,000 / $100,000) × 100
Predetermined overhead = 85%
Therefore, its predetermined overhead rate for the next period should be 85%
Why is keeping a journal about what is good and bad regarding your summer or part-time work a good idea to help you choose a career path
The correct answer to this open question is the following.
Keeping a journal about what is good and bad regarding my summer or part-time work is a good idea to help me choose a career path because writing down what I like and what I dislike, I can get a pretty close idea of the things I enjoy and have more skills to perform, compared to the things I do not like or I have no abilities at all.
If a clearly identify my skills and abilities in the workplace during the summer, it will be easier for me to identify what could be the profession I love or at least, what I am attracted to.
As it is difficult to remember all the work experience by memory, writing the journal will help me to remember exact dates, specific activities that I enjoyed or were interesting, and what was not.
Productivity Question 3 options: is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. explains very little of the differences in the standard of living across countries. explains some, but not most of the differences in the standard of living across countries. explains most of the differences in the standard of living across countries.
Answer:
explains most of the differences in the standard of living across countries.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Productivity is a measure of how efficient is the manufacturing of finished goods and services in a country. Thus, it's a measure of total output with respect to input such as capital, labour, and other resources.
Generally, productivity is a ratio of output (product) to the resources (input) that is required to produce the product and as such determines the economic output of a particular country, as well as the standard of living of its population.
Hence, productivity explains most of the differences in the standard of living across countries based on the value of output generated with a unit of input.
What is the fundamental accounting equation?
Answer:
Explanation:
Asset=Liabilities + Equities
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: Cost of new equipment and timbers $ 370,000 Working capital required $ 115,000 Annual net cash receipts $ 130,000 * Cost to construct new roads in year three $ 43,000 Salvage value of equipment in four years $ 68,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: a. What is the net present value of the proposed mining project? b. Should the project be accepted?
Answer:
Windhoek Mines, Ltd., of Namibia
a. The net present value (NPV) of the proposed mining project is:
= -$117,258
b. No. The project should be rejected. It has a negative NPV.
Explanation:
a) Data and Calculations:
Cost of new equipment and timbers = $370,000
Working capital required = $115,000
Cost to construct new roads in year three = $43,000
Annual net cash receipts = $130,000
Salvage value of equipment in four years = $68,000
Company's required rate of return = 18%
Mining duration = 4 years
Annuity factor for 4 years at 18% = 2.1690
Relevant discount factors at 18%:
Year 3 = 0.712
Year 4 = 0.636
Present values of Cash Flows:
Transaction Cash Flows PV Factor PV Amount
Cost of new equipment and timbers $370,000 1.000 -$370,000
Working capital required 115,000 1.000 -115,000
Cost to construct new roads in year three 43,000 0.712 -30,616
Annual net cash receipts 130,000 2.169 281,970
Salvage value of equipment in four years 68,000 0.636 43,248
Working capital released 115,000 0.636 73,140
Net present value -$117,258
Suppose we have the following information concerning the printed magazine and digital magazine subscription markets:
Printed Magazine Subscription Price0=$20 Digital Magazine Subscription Quantity0=216 Printed Magazine Subscription
Price1=$13.40 Digital Magazine Subscription Quantity1=208 Question:
What is the cross-price elasticity of demand between printed and digital magazine subscriptions?
Answer:
Cross-price elasticity of demand between printed and digital magazine subscriptions is 8.91.
Explanation:
Percentage change in price of Printed Magazine Subscription = ((Printed Magazine Subscription Price1 - Printed Magazine Subscription Price0) / Printed Magazine Subscription Price0) * 100 = (($13.40 - $20) / $20) * 100 = -33%
Percentage change in quantity of Digital Magazine Subscription Quantity = ((Digital Magazine Subscription Quantity1 - Digital Magazine Subscription Quantity0) / Digital Magazine Subscription Quantity0) * 100 = ((208 - 216) / 216) * 100 = -3.7037037037037%
Cross-price elasticity of demand between printed and digital magazine subscriptions = Percentage change in price of Printed Magazine Subscription / Percentage change in quantity of Digital Magazine Subscription Quantity = -33% / -3.7037037037037% = 8.91
Note: The relationship between printed and digital magazine subscriptions is that they are substitutes because the cross-price elasticity between them is positive. That is, an increase in the price of printed digital magazine makes consumer to switch to and buy more of digital magazine which is a substitute.
During June, Cisco Company produced 12,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. The actual cost was $7 per pound. The actual pounds of steel that Cisco purchased were 19,500 pounds. All materials purchased were used. Calculate Cisco's materials usage variance.
Answer:
Direct material quantity variance= $12,000 unfavorable
Explanation:
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1.5*12,000 - 19,500)*8
Direct material quantity variance= (18,000 - 19,500)*8
Direct material quantity variance= $12,000 unfavorable
The cost components of a heater include $38 for the compressor, $14 for the sheet molded compound frame, and $70 per unit for assembly. The factory machines and tools cost is $53,000. The company expects to produce 1,400 heaters in the coming year. What cost function best represents these costs
Answer: y = 122x + 53,000
Explanation:
The cost function takes the form, y = mx + c
Y = total cost
m would be the variable cost because it is the increase in x
x = total number of units to be produced
c = fixed cost because this is the y intercept and represents an amount that will not change regardless of the change in x
Variable cost = compressor + compound frame + assembly
= 38 + 14 + 70
= $122
Fixed cost = $53,000
Cost function is:
y = 122x + 53,000
A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include
$250 for transportation-in.
$300 for shipping insurance.
$900 for car import duties.
$150 for advertising.
$1,250 for sales staff salaries.
$180 for trimming shrubs.
For computing inventory, what cost is assigned to the used car? Included in Inventory Cost Expensed as incurred Cost 14.000 900 Cost Transportation in Import duties Insurance during shipment Advertising Sales staff salaries 300 150 1,250 16.850S 0 $
Answer: $15,450
Explanation:
The inventory cost of the car is every cost that was incurred to get it to the car dealer and ready for sale.
Total inventory cost assigned is:
= Cost of car + transportation-in + shipping insurance + car import duties
= 14,000 + 250 + 300 + 900
= $15,450
D.Now, if the inflation rate is 18%, the nominal rate of interest on the CD is 24%, and the interest is not taxable, what is the real interest rate on the CD
Answer: 6%
Explanation:
Inflation increases prices in an economy and therefore makes a currency weaker because the currency will only be able to buy less than what it was able to.
Inflation therefore affects returns which is why the real returns are the more relevant measure.
The real interest rate accounts for inflation by using the formula:
= Nominal rate - Inflation rate
= 24% - 18%
= 6%
Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $7 million. If demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $9 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $13 million. In either case, the probability of demand being high is .30, and the probability of it being low is .70. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products.
1. Calculate the NPV for the following:
Plans NPV
Small facility $million
Do nothing million
Large facility million
2. The best decision to help Expando is:_________
Answer:
Expando, Inc.
1. NPV for the following:
Plans NPV
Small facility $3.5 million
Do nothing 0 million
Large facility 2.2 million
2. The best decision to help Expando is:_________
to build a small facility.
Explanation:
a) Data and Calculations:
Small Facility Large Facility
Initial investment costs $7 million $8 million
Discounted revenues:
Low demand 9 million 9 million
High demand 14 million 13 million
Probability of low demand = 0.70
Probability of high demand = 0.30
Expected revenue 10.5 million 10.2 million
($9m * 0.7 + $14m * 0.30) ($9m * 0.7 + $13m * 0.30)
NPV 3.5 million 2.2 million
1. NPV for the following:
Plans NPV
Small facility $3.5 million ($10.5 - $7) million
Do nothing 0 million ($0 - $0) million
Large facility 2.2 million ($10.2 - $8) million
An investment offers $6,700 per year for 15 years, with the first payment occurring one year from now. a. If the required return is 6 percent, what is the value of the investment today
Answer: $65070
Explanation:
Based on the information given in the question, the value of the investment today will be:
= amount × pvaf , 1/(1+ rate )^t
= 6700 × pvaf (1/1+6%) ^15
= 6700 × pvaf (1/1.06)^15
= 6700 × 9.712
= $65070
Therefore, the value of the investment today is $65070
Given the following information, calculate the funds from operation (FFO).
Net income: $1,200,000
Gain/losses from infrequent and unusual events: $0
Amortization of tenant improvements: $120,000
Amortization of leasing expenses: $75,000
Depreciation (real property): $2,675,000.
a. $195,000
b. $1,395,000
c. $2,870,000
d. $4,070,000
Answer:
Funds from Operations = 4070000
Explanation:
Use the below formula to find the fund from operations:
Funds from Operations = Net Income + Depreciation + Amortization - Gains on Sales of Property
Funds from Operations = 1200000 + 2675000 + 75000 + 120000
Funds from Operations = 4070000
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following:
• a private cost of $3.03;
• a social cost of $3.23;
• a value to consumers of $3.39.
Refer to Scenario 10-1. Suppose the equilibrium quantity of gasoline is 220 gallons; that is, Q MARKET = 220. Then the equilibrium price of a gallon could be:________
a. $3.08.
b.$2.77.
c. $2.45.
d. $3.69.
Answer:
a. $3.08
Explanation:
Calculation to determine what the equilibrium price of a gallon could be:
Based on the information given the Private cost is $3.03 while the Social cost is $3.23 which indicates that Social cost lies ABOVE the private cost and since The MARKET EQUILIBRIUM tend to occurs when Private value=Private cost which means that the EQUILIBRIUM PRICE lies between $3.03 and $3.23, Therefore the EQUILIBRIUM PRICE of a gallon would be $3.08 because it lies between $3.03 and $3.23.
Assume the following information: Selling price per unit $200 Contribution margin ratio 50% Total fixed costs $275,000 How many units must be sold to generate a profit of $50,000
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit $200
Contribution margin ratio 50%
Total fixed costs $275,000
Desired profit= $50,000
First, we need to calculate the sales required to obtain the desired profit:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (275,000 + 50,000) / 0.5
Break-even point (dollars)= $650,000
Now, the number of units:
Number of units= 650,000 / 200= 3,250
Or, you can use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (275,000 + 50,000) / (0.5*200)
Break-even point in units= 3,250
Bonita Industries purchased machinery for $1030000 on January 1, 2017. Straight-line depreciation has been recorded based on a $82000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $27500. How much cash did Bonita receive from the sale of the machinery?
a. $138,000
b. $162,000
c. $198,000
d. $258,000
Answer:
$235,900
Explanation:
Depreciation p.a. = ($1030000 - $82,000) / 5 years
Depreciation p.a. = $189,600
Depreciation charged till the Jan 1 ,2021 (4 years)
= $189,600 * 4 years
= $758,400
Depreciation charged till May 1, 2021 (4 month)
= $189,600 * 4 months/12 months
= $63,200
Value of the asset = $1030000 - $758,400 - $63,200
Value of the asset = $208,400
Cash received from sale of machinery = $208,400 + $27,500 (gain)
Cash received from sale of machinery = $235,900
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:___.
A. $8, 167.50.
B. $9, 652.50.
C. $9, 750.00.
D. $8, 250.00.
E. $8, 152.50.
Answer:
A. $8, 167.50
Explanation:
The fact Juniper company returned $1,500 worth of merchandise, means that it is only obliged to pay the amount of $8,250($9,750-$1,500).
However, the payment was made on 16th August, which is the discount period of 10 days, hence, the cash paid on August 16 is computed thus:
cash paid=amount of merchandise owed*(1-discount rate)
discount rate=1%(1% discount if payment is made within 10 days of the purchase date)
cash paid=$8,250*(1-1%)
cash paid=$ 8,167.50
Axis Pvt. Ltd., an international financial services firm, assigns projects to employees in different nations. Since these multinational projects and careers provide employees with global exposure, they are more than willing to cooperate. With regard to organizing a multinational company, which of the following internal factors has been covered in this example?
A. Structure.
B. People.
C. Culture.
D. Management.
Answer: B. People
Explanation:
The people who work in a company are a very important internal factor because their work makes or breaks a company. When the company does something that can be expected to improve the efficiency of its workers, it is said to be investing in its people.
In the above, Axis is sending workers around the world which is giving these workers much needed exposure. In this day and age where globalization is everything, skills gained from being exposed to different nations are very important and can make workers more efficient.
Undang Undang terkait pencegahan dan
pemberantasan tindak pidana pencucian
uang diatur dalam ....
O UU Nomor 9 tahun 2013
O UU Nomor 9 tahun 2010
UU Nomor 8 tahun 2010
UU Nomor 8 tahun 2013
What is the impact on cash flow from operations in the current year based on the change in operating assets and liabilities listed below
2 Balance sheets
Prior Year Current Year
4
5 Accounts receivable 1,725 1,825
6 Inventories 1,535 1,785
7 Accounts payable 1,325 1,475
a. -200
b. 0
c. -150
d. 200
Answer:
The impact on cash flow from operations in the current year based on the changes in operating assets and liabilities is:
a. -200
Explanation:
a) Data and Calculations:
Prior Year Current Year Changes
Accounts receivable 1,725 1,825 $100
Inventories 1,535 1,785 $250
Accounts payable 1,325 1,475 $150
b) Accounts receivable increased by $100, thereby reducing cash inflows. Inventories increased by $250, thereby reducing cash inflows. Accounts payable increased by $150, thereby increasing cash inflows. The net effect or impact is a reduction of $200 in the cash from operations.
Joshua has been working as a project manager in an information technology company for three years. Martha is a delivery team lead in the same company. When the company receives a project that has to be completed in a short span of time, Joshua decides to increase the daily work hours of the delivery team to accommodate the project. Martha, however, insists that Joshua request the client for a time extension. Not willing to reach an agreement, Joshua and Martha ignore each other's opinions and begin working on the project individually. Which of the following conflict-handling intentions does this scenario portray? Collaborating Accommodating Avoiding Compromising
The conflict-handling deals with collaborating
What is the weighted average cost of capital if a business has a cost of equity of 11%, a yield on debt of 6%, a tax rate of 30%, 100 million market value of debt, and 250 million market value of equity
Answer:
9.028 %
Explanation:
weighted average cost of capital = cost of equity x weight of equity + cost of debt x weight of debt
where,
cost of equity = 11 %
cost of debt (consider after tax) = 6% x (1 - 0.30) = 4.20 %
weight of equity = 250 million ÷ 350 million = 0.71
weight of debt = 100 million ÷ 350 million = 0.29
therefore,
weighted average cost of capital = 11 % x 0.71 + 4.20 % x 0.29
= 9.028 %
A firm's marginal product of labor is 4 and its marginal product of capital is 5. If the firm adds one unit of labor but does not want its output quantity to change, the firm should A. add 1.25 units of capital. B. use 1.25 fewer units of capital. C. use 0.8 fewer units of capital. D. use 5 fewer units of capital.
Answer: C. use 0.8 fewer units of capital.
Explanation:
The Marginal Rate of Technical Substitution (MRTS) shows how much you can decrease capital or labor by in order to keep production constant if you increase either capital or labor.
It is calculated by the formula:
= Marginal product of labor / Marginal product of capital
= 4 / 5
= 0.8
The firm should use 0.8 fewer units of capital in order to maintain the same production level.
The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Corporation.
Ladonna Douglas Corporation
ADJUSTED TRIAL BALANCE
July 31, 20--
ACCOUNT TITLE DEBIT CREDIT
Cash 34,750.00
Accounts Receivable 9,750.00
Office Supplies 2,525.00
Store Supplies 4,785.00
Machinery 10,750.00
Accumulated Depreciation 2,150.00
Accounts Payable 14,300.00
Notes Payable 11,500.00
Common Stock 33,725.00
Retained Earnings 20,000.00
Dividends 13,250.00
Service Revenue 41,500.00
Wages Expense 37,425.00
Rent Expense 3,000.00
Advertising Expense 2,750.00
Office Supplies Expense 1,465.00
Store Supplies Expense 2,150.00
Depreciation Expense 575.00
Totals 123,175.00 123,175.00
Required:
Utilize these adjusted values to perform the closing entries for Ladonna Douglas Corporation.
Answer:
Jul-31
Dr Service revenue $41,500
Dr Retained earnings $5,865
Cr Wages expense $37,425
Cr Rent expense $3,000
Cr Advertising expense $2,750
Cr Office supplies expense $1,465
Cr Store supplies expense $2,150
Cr Depreciation expense $575
Jul-31
Dr Retained earnings $13,250
Cr Dividends $13,250
( To close dividends)
Explanation:
Preparation of the closing entries for Ladonna Douglas Corporation
First step is to prepare the income statement
INCOME STATEMENT
Revenues:
Service revenue $41,500
Less Expenses:
Wages expense $37,425
Rent expense $3,000
Advertising expense $2,750
Office supplies expense $1,465
Store supplies expense $2,150
Depreciation expense $575
Total expenses (-$47,365)
Net Loss ($5,865)
($41,500-$47,365)
Now let Prepare the closing entries
Jul-31
Dr Service revenue $41,500
Dr Retained earnings $5,865
Cr Wages expense $37,425
Cr Rent expense $3,000
Cr Advertising expense $2,750
Cr Office supplies expense $1,465
Cr Store supplies expense $2,150
Cr Depreciation expense $575
( To close income summary)
Jul-31
Dr Retained earnings $13,250
Cr Dividends $13,250
( To close dividends)
The RRR Company has a target current ratio of 3.2. Presently, the current ratio is 4.1 based on current assets of $12,956,000. If RRR expands its fixed assets using short-term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached
Answer:
$888,750
Explanation:
The amount of additional funding required is the excess of revised current liabilities based on the current ratio is 3.2 compared with the current liabilities based on the current ratio of 4.1(the one we have currently).
Current ratio=current assets/current liabilities
Current situation:
current ratio=4.1
current assets=$12,956,000
current liabilities=unknown(let us assume it is X)
4.1=$12,956,000/X
4.1*X=$12,956,000
X=$12,956,000/4.1
X=$3,160,000
Revised situation:
target current ratio=3.2
current assets=$12,956,000
current liabilities=unknown(let us assume it is Y)
3.2=$12,956,000/Y
3.2*Y=$12,956,000
Y=$12,956,000/3.2
Y=$4,048,750
additional funding=$4,048,750-$3,160,000
additional funding increase=$888,750
Should the firms' overseas operations be judged by the standards (legal, economic, cultural, and moral) of the country in which it is operating or should they be judged by the standards of the U.S. market?
Answer: Standards of the country they operate in
Explanation:
Various countries have differing norms on what is legally, socially, morally and culturally acceptable. In order to be able to operate in those countries, companies would have to adapt to these requirements in order to maximize business operations.
It would therefore be illogical to judge these overseas operations in terms of the U.S. market which would be different from them. They should be judged on their own merit and then a standardizing factor can be used to relate them to the U.S. market to see whether they are performing well given their unique circumstances.
Identify the following is structural, frictional, cyclical and seasonal employment.
a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company.
b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company.
c. Teresa just graduated from college and is looking for a full time position with an investment banking firm.
d. A recent recession has reduced the number visitors to a local theme park. The park has had to lay off many of its employee, including Beth.
Answer:
Frictional unemployment occurs when people decided to leave their jobs and look for another or people join the labor force for the first time.
Structural unemployment arises from a situation where there is a mismatch between the skills needed in an economy and the skills possessed by people. Happens a lot when employees need to adapt to new technology.
Cyclical unemployment happens as a result of the economy either growing or shrinking.
a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ STRUCTURAL UNEMPLOYMENT.
b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ STRUCTURAL UNEMPLOYMENT.
c. Teresa just graduated from college and is looking for a full time position with an investment banking firm. ⇒ FRICTIONAL UNEMPLOYMENT.
d. A recent recession has reduced the number visitors to a local theme park. The park has had to lay off many of its employee, including Beth. ⇒ CYCLICAL UNEMPLOYMENT.
Prepare the Statement of Retained Earnings from the Adjusted Trial Balance and Income Statement. Within each section of the statement,
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Account Title
Debit Credit
Cash 19500
Accounts recievable 10800
Office Supplies 200
Prepaid Rent 13,000
Furniture 22,800
Accumulated Depreciation--Furniture 7800
Accounts Payable 2600
Salaries Payable 600
Interest Payable 300
Unearned Revenue 6,500
Notes Payable 9,100
Common Stock 12,700
Retained Earnings 13,000
Dividends 33,100
Service Revenue 59,100
Depreciation Expense-Furniture 2600
Interest Expense 300
Rent Expense 3900
Salaries Expense 4500
Supplies Expense 1000
Total 111,700 111,700
SMART TOUCH LEARNING
Income Statement
Month Ended December 31, 2016 Balance
Revenue
Service revenue 59100
ExpensesDepreciation Expense-Furniture 2600
Interest Expense 300
Rent Expense 3900
Salaries Expense 4500
Supplies Expense 1000
Total expense 12300
Net income 46800
Answer:
Retained earnings, December 31, 2016 = 26,700
Explanation:
The Statement of Retained Earnings can be prepared as follows:
SMART TOUCH LEARNING
Statement of Retained Earnings
For the month ended December 31, 2016
Details Amount
Retained earnings, December 01, 2016 13,000
Net income for the month 46,800
Dividends (33,100)
Retained earnings, December 31, 2016 26,700
Note: No currency sign is used in the answer in order to avoid confusion because no currency is used in the question itself.
An American worker is hired by a German consulting firm operating in New York. They pay him $50,000 in wages. The new worker's contribution is to bring a new client to the firm that buys consulting services for $70,000 . Assume no other new cost was involved in this other than the wage. The client is a Mexican firm located in Mexico City. Which of the following is correct
a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000
b. Consumption increases by $70,000 and imports increase by $70,000,50 US GDP remains unchanged
c. Consumption increases by $50,000 and exports increase by $20,000, so US GDP increases by $70,000
d. National income increases by $50,000 and factor payments from abroad increase by $50,000, so US GDP remains unchanged
Answer:
a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000
Explanation:
The German firm hired an American worker and paid him $50,000. That means that American national income will increase by $50,000.
Since the company is German, that would increase factor payments ot abroad by the difference = $70,000 - $50,000 = $20,000.
Total GDP increases by the amount of $50,000 + $20,000 = $70,000
