Answer: D. should always be ignored in the computation of diluted EPS.
Explanation:
Anti-Dilutive Securities refers to the financial instruments that an organization has which can when converted into the common stock, will lead to an increase in the organization's earning per share.
Unlike the diluted activities which brings about the reduction in the earnings per share, antidilutive maintain or increase the EPS. Therefore, anti-dilutive securities should always be ignored in the computation of diluted EPS.
Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond currently sells for 108 percent of its face value. The company’s tax rate is 22 percent.
Answer:
Pretax cost of debt = 3.48%
Aftertax cost of debt = 2.71%
Explanation:
Missing word "What is the pretax cost of debt and aftertax cost of debt"
Coupon rate = 4%
YTM = 22
Nper = YTM*2 = 44
PMT = 1000*4%/2 = 20
FV = 1000
PV = 1080
Rate = rate(nper, pmt, -pv, fv)
Rate = rate(44, 20, -1080, 1000)
Rate = 0.0174
Rate = 1.74%
Pretax cost of debt = Rate * 2
Pretax cost of debt = 1.74% * 2
Pretax cost of debt = 3.48%
Aftertax cost of debt = [3.48% * (1 - 0.22)]
Aftertax cost of debt = 3.48% * 0.78
Aftertax cost of debt = 0.0348 * 0.78
Aftertax cost of debt = 0.027144
Aftertax cost of debt = 2.71%
The United Nations Human Development Report gives the following data for real GDP per person in 2014: China, $12,547; Russia, $22,352; Canada, $42,155; United States, $52,947.
Other information suggests that household production is similar in Canada and the United States and smaller than in China and Russia. The underground economy is larger in Russia and China and a similar proportion of each of these economies. Canadians and Americans enjoy more leisure hours than do the Chinese and Russians. Canada and the United States spend significantly more on the environment than do China and Russia. In which pair (or pairs) of countries is it easiest to compare the standard of living?
And in which pair (or pairs) is it most difficult? Explain why?
Answer:
B. between China and Russia or between Canada and the United States, because household production, the underground economy, leisure hours, and the environment are similar in each pair
Explanation:
The standard of living can be easily compared ______. A. between China and Canada because they have a similar land size B. between China and Russia or between Canada and the United States, because household production, the underground economy, leisure hours, and the environment are similar in each pair C. among none of the four countries because they are too different D. between Russia and the United States because they are both super powers E. among all four countries because real GDP per person includes a reliable measure of income, household production, the underground economy, leisure hours, and the environment
Real Per capita GDP measures the standard of living of the people in a country. The higher the Real Per capita GDP, the higher the standard of living
Real Per capita GDP = Real GDP / population
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
some items are not perfectly measured by GDP. They include
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Because GDP does not measure underground economy (illegal activities) , leisure , it would be difficult to compare either pair of countries
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .73. The cost of equity is 11.5 percent and the pretax cost of debt is 6.6 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 39 percent?
Answer:
0.5780
Explanation:
Calculation to determine the capital structure weight of the firm's equity
Using this formula
Weight of equity = 1 / (1 + D-E)
Let plug in the formula
Weight of equity = 1 / (1 + .73)
Weight of equity = 1 / 1.73
Weight of equity = 0.5780
Therefore the capital structure weight of the firm's equity is 0.5780
Identify whether the situations described below are example of uneven cash flows or annuity payments.
a. You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year.
b. SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund.
c. Franklinia Venture Capital (FVC) invested in a budding entrepreneur’s restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years.
d. You have committed to deposit $600 in a fixed interest–bearing account every quarter for four years.
Solution :
The Uneven cash flow is defined as the series of unequal payments which is done over a period of time. Whereas if a regular amount is to be made in a fixed period of time, that such payments are known as equal cash flows.
An annuity payments refers to the payment that is made at equal interval of times. It pays a fixed amount of payments for an individual.
In the given situations,
a). Monthly rents payment is annuity payments.
b). Uneven cash flow
c). Uneven cash flow
d). Annuity
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be paid on a periodic basis regardless of earnings. income to stockholders may increase as a result of trading on the equity. the bondholders do not have voting rights.
Answer:
interest must be paid on a periodic basis regardless of earnings.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
The disadvantages of bonds are listed below as;
1. Bonds can decrease a person's return on equity.
2. Bonds require a payment of the principal amount.
3. Bonds typically require a payment of periodic interest.
Generally, most bonds with shorter maturity time respond less dramatically to changes in interest rates when compared to bonds having longer maturity. Thus, the risk associated with short bonds isn't really significant because their interest rates are less likely to change substantially within that short period of time unlike bonds with longer maturity.
Hence, regardless of the earnings by bondholders, interest must be paid on a periodic basis on a long-term bond.
State 3 arguments in favor of protectionism (in favor of trade restrictions). Please state your own opinion about the validity of each one and whether you support such argument.
Answer: See explanation
Explanation:
Protectionism refers to the restriction of international trade by the government in order to help the domestic industries. The argument in favor of protectionism include:
• Protection of infant industries: Protectionism protects infant industries as they're protected from being subjected to unfair competition and therefore allowed to thrive.
• To prevent dumping and unfair competition
• Revenue generation for government: Through the imposition of tariffs and other policies by the government to protect domestic industries, the government also generates revenue which can be used to improve the economy.
I believe the arguments are valid and I support them.
Say that investment increases by $60 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 4. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what open market policy would you recommend to increase income by $240
Congratulations! Today is your 20th birthday, but you are starting with nothing in the bank. You just started working full-time, earning $50,000 per year. Your goal is to have $5 million by your 60th birthday (i.e., 40 years from today). Your employer offers a 401(k) plan (contributions by you are tax deductible, growth is tax deferred), and within that plan you choose to invest in an extreme low-cost S&P 500 index mutual fund (like ones offered by Schwab, Fidelity, Vanguard, etc.). The long-term expected return on the S&P 500 index mutual fund is 10% per year. Your employer pays you monthly.
Required:
a. Ignoring taxes, if the employer offers no match on your contributions, how much would you need to save every month to reach your goal?
b. Ignoring taxes, if the employer offers a 10% match on your contributions, how much would you need to save every month on top of your match to reach your goal?
c. Assume your Federal marginal tax rate is 24% and State marginal tax rate is 6%. What is the answer to question (b) on an after-tax basis (i.e., how much do you have to contribute every month after the employer match and net of tax savings)?
Answer:
A) $790.63
B) $718.75
C) $503.13
Explanation:
a. Interest rate = 10%, monthly rate = 10%/12 = 0.10/12
Number of years = 60-20 = 40 years = 40*12 = 480 months
Goal = FV = 5,000,000
The monthly savings needed if employers offers no match =PMT(rate,nper,pv,fv) =PMT(0.10/12,480,0,5000000)
= $790.63
b. If employer offers a 10% match.
Then monthly savings needed
= 790.63/1.10
= 718.75
Monthly savings needed with 10% match by employer
= $718.75
c. Tax savings are 24%+6% = 30%.
So on the contribution of 718.75, you save a 30% tax. So. tax savings = 718.75*0.30 = $ 215.63
So, monthly contribution taking into account tax savings and employer match
= 718.75 -215.62
= $503.13
River co. just paid a dividend of $2 per share out of earnings of $4 per share. If its book value per share is $25 and its stock is currently selling for $40 per share, calculate the required rate of return on the stock.
Answer:
13.4%
Explanation:
Calculation to determine the required rate of return on the stock.
First step
g = (1 - 0.5)(4/25)
g = 0.08*100
g = 8%
Now let determine the required rate of return
r = [(2 * 1.08)/40] + 0.08
r= 13.4%
Therefore the required rate of return on the stock is 13.4%
Red Co. recorded a right-of-use asset of $140,000 in a 10-year finance lease. Payments of $22,784 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be: (Round your final answer to the nearest whole dollar.)
Answer: $121554
Explanation:
Lease liability = $140,000
Less: Lease liability in 1st year= $8784
Lease payable after one year = $131216
Less: Lease liability in 2nd year = $9662.40
Lease payable after 2nd year = $121553.60 = $121554
Note:
Lease liability in 1st year:
= $22,784 - (10% × $140000)
= $22784 - $14000
= $8784
Lease liability in 2nd year:
= $22784 - (10% × $131216)
= $22784 - $13121.60
= $9662.40
WHAT IS THE SUPPLY CHAIN FRAMEWORK'S IN OKADA? WHAT IS THE MODEL ?
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,540 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts. Retained earnings, October 1 as $0.
Cash $12,650 Cash dividends $1,570
Accounts receivable 13,520 Consulting revenue 13,520
Office supplies 2,850 Rent expense 3,110
Land 45,940 Salaries expense 6,490
Office equipment 17,530 Telephone expense 850
Accounts payable 8,110 Miscellaneous expenses 660
Common stock 83,540
Required:
Using the above information prepare an October 31 balance sheet for Emst Consulting ERNST.
Solution :
Particulars Amount
Consulting revenue $13,520
Less: Expenses
Rent Expense ($3,110)
Salaries Expense ($6,490)
Telephone Expense ($850)
Miscellaneous Expense ($660)
Net Profit $2,410
Statement of Retained Earnings
Particulars Amount
Retained Earnings $2,410
Less : Cash Dividend ($1,570)
Net Retained Earnings $840
Ernst Consulting Balance Sheet as of October 31
Assets Amount Liabilities Amount
Current Assets Current Liabilities
Cash $12,650 Accounts Payable $8,110
Office Supplies $2,850
Accounts Receivable $13,520
Non-Current Assets Equity
Office Equipment $17,350 Common Stock $83,540
Land $45,940 Retained Earnings $840
Total $92,490 Total $92,490
Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7 (to 2 decimals if necessary).Week Time Series ForecastValue 1 18 2 15 3 16 4 13 5 17 6 16MSE:
The forecast for week 7:
Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7.Week Time Series Forecast
Value
1 18
2 15
3 16
4 13
5 17
6 16MSE:
The forecast for week 7:
Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE?
Answer:
a. We have:
MSE: 63.03
The forecast for week 7: 15.33
b. We have:
MSE: 47.49
The forecast for week 7: 16.35
c. The exponential smoothing forecast using = 0.2. appears to provide the better forecast based on MSE.
Explanation:
a. Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7 (to 2 decimals if necessary).
Note: See Part a of the attached excel file for the Calculations of Forecast, Error, and Error^2.
From the attached excel file, we can have:
MSE = Mean squared error = Total of Error^2 / Number of observation under the Error^2 = 252.11 / 4 = 63.03
The forecast for week 7 = 15.33
b. Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7.
Note: See Part b of the attached excel file for the Calculations of Forecast, Error, and Error^2.
From the attached excel file, we can have:
MSE = Mean squared error = Total of Error^2 / Number of observation under the Error^2 = 284.96 / 6 = 47.49
The forecast for week 7 = 16.35
Note that under exponential smoothing, forecast for week 2 has to be the Time Series Value for week 1.
b. Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE?
Since 47.49 MSE of the exponential smoothing forecast using = 0.2 is less than 63.03 MSE of the three-week moving average forecast, it implies that the exponential smoothing forecast using = 0.2. appears to provide the better forecast based on MSE.
theo anh chị quan điểm về bán hàng hiện nay và trước kia khác nhau như thế nào
Explanation:
Trả lời ngắn gọn thôi nhe ^^
Bán hàng trước kia (mình đang chọn thời điểm trước khi có công nghệ, trước khi có mạng internet nha) thì sẽ bị hạn chế rất nhiều (thời gian, giao tiếp, v.v) so với bán hàng thời điểm hiện tại (Dẫn chứng: hiện tại có thể giao bán rất đơn giản qua việc livestream và ship trong khi trước kia thì việc giao bán hàng rất khó khăn..)
Thời điểm hiện tại có rất nhiều "cách" bán hàng khác nhau so với trước kia: đa cấp, online, ...
Bạn có thể tham khảo các trang khác nữa nhưng brainly ko cho mk đưa web lên mk rất xin lỗi ;-;
(Bạn có thể tra "kinh doanh hiện đại khác trước kia như thế nào" hoặc "bán hàng hiện nay và trước kia khác nhau như thế nào" thì sẽ nhận được khá nhiều trang hữu dụng nha)
<3 Chúc bạn có 1 ngày tốt lành nha!!
Engler Company purchases a new delivery truck for $60,000. The sales taxes are $4,000. The logo of the company is painted on the side of the truck for $1,600. The truck license is $160. The truck undergoes safety testing for $290. What does Engler record as the cost of the new truck? Group of answer choices $66,050 $65,890 $64,000 $65,600
Answer: $65,890
Explanation:
When it comes to capitalizing fixed assets, every cost that was incurred to get the fixed asset ready for use will be included in the cost price.
The cost price here is therefore;
= Cost price + Sales taxes + Logo + safety testing
= 60,000 + 4,000 + 1,600 + 290
= $65,890
he following materials standards have been established for a particular product: Standard quantity per unit of output 4.2 meters Standard price $ 18.40 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,200 meters Actual cost of materials purchased $ 138,600 Actual materials used in production 6,700 meters Actual output 1,550 units. What is the materials price variance for the month?
a. $3,658 U
b. $7,700 U
c. $11,770 U
d. $6,120 U
Answer:
d. $6,120 U
Explanation:
Calculation to determine the materials price variance for the month
Using this formula
Materials price variance = (AQ × AP) – (AQ × SP)
Let plug in the formula
Materials price variance = $138,600 – (7,200 meters × $18.40 per meter)
Materials price variance = $138,600 – $132,480
Materials price variance = $6,120 U
Therefore Materials price variance is $6,120 U
In its 2016 annual report, Lockheed Martin reported net earnings of $5,302 million and dividends paid of $2,048 million. Your forecast of net income for Lockheed Martin for 2017 is $5,504 million. What are projected dividends for the company for 2017
Answer:
The dividend for 2017 will be = $2124.98
Explanation:
The net earnings for the year 2016 = $5302
Dividend paid for the year 2016 = $2048
The forecast for the income of 2017 = $5504
The projected dividend for the year 2017 = 5504 x (2047 / 5302)
The projected dividend for the year 2017 = 2124.98
The dividend for 2017 will be = $2124.98
Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in the building and each is furnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. The following data are available:
Appliance Cost Residual Value Service Life (in Years)
Stoves $15,000 $3,000 6
Refrigerators 10,000 1,000 5
Dishwashers 8,000 500 4
In 2019, three new refrigerators costing $2,700 were purchased for cash. The old refrigerators, which originally cost $1,500, were sold for $200.
Requried:
a. Calculate the group depreciation rate, group life, and depreciation for 2016.
b. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.
Answer:
A. Group depreciation rate 17.197%
Group life 5.02 years
Depreciation for 2016 $5,675
B. 2019
Dr Stove, refrigerator and dishwasher $2,700
Cr Cash $2,700
2019
Dr Accumulated Depreciation $1,300
Dr Cash $200
Cr Stove, refrigerator and dishwasher $1,500
Explanation:
A. Calculation to determine the group depreciation rate, group life, and depreciation for 2016.
First step is the Computation of Group depreciation rate, group life and depreciation for 2016
Assets Original Residual Depreciation Estimated Depreciation
Cost Value Cost Life-Years per year-SLM
Stoves $15,000-$3,000= $12,000 6 $2,000 ($12,000/6=$2,000)
Refrigerators $10,000-$1,000=$9,000 5 $1,800 ($9,000/5=$1,800)
Dishwashers $8,000-$500=$7,500 4 $1,875
($7,500/4=$1,875)
Total $33,000 $4,500 $28,500 $5,675
Now let determine the group depreciation rate, group life, and depreciation for 2016.
Calculation for group depreciation rate using this formula
Group Depreciation Rate = Total depreciation per year ÷ Total original cost
Let plug in the formula
Group depreciation rate = $5,675 ÷ $33,000*100
Group depreciation rate= 17.197%
Calculation for Group life using this formula
Group life = Total depreciation cost ÷ Total depreciation per year
Let plug in the formula
Group life = $28,500 ÷ $5,675
Group life = 5.02 years
Calculation for Depreciation for 2016 using this formula
Depreciation for 2016= Original Cost × Group Depreciation Rate
Let plug in the formula
Depreciation for 2016 = $33,000 × 0.17197
Depreciation for 2016= $5,675
Therefore the group depreciation rate is 17.197%, group life is 5.02 years, and depreciation for 2016 is $5,675
B. Preparation of the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.
2019
Dr Stove, refrigerator and dishwasher $2,700
Cr Cash $2,700
(To record purchase of new refrigerator)
2019
Dr Accumulated Depreciation $1,300
($1,500-$200)
Dr Cash $200
Cr Stove, refrigerator and dishwasher $1,500
(To record sale of old refrigerator)
Lara Technologies is considering a cash outlay of $239,000 for the purchase of land, which it could lease out for $39,450 per year. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is a.$39,450 b.$35,850 c.$75,300 d.$3,600
Answer:
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Explanation:
to the end of the sixth year;
b/ The number of years required before the capital stock exceeds $200 000.
Suppose that the government imposes a new $1 per-unit tax on the (2pts) production of soft drinks. The result would be a(n)_________in the equilibrium price of soft drinks and a(n) _________in the equilibrium quantity of soft drinks.
a. decrease; increase
b. increase; decrease
c. decrease; decrease
d. increase; increase
Answer:
b. increase; decrease
Explanation:
In the case when the government impose the $1 per tax unit for the soft drinks production so it should increased the equilibrium price but at the same time it decreased the equibrium quantity as the price and the demand have an inverse relationship that represent the law of demand
So as per the given situation, the option b is correct
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $18,270 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $381 per week, payable monthly.
2 Paid office rent for the month $914.
3 Purchased architectural supplies on account from Burmingham Company $1,320.
10 Completed blueprints on a carport and billed client $1,929 for services.
11 Received $711 cash advance from M. Jason to design a new home.
20 Received $2,842 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,524.
30 Paid $305 to Burmingham Company for accounts payable due.
Required:
Journalize the transaction.
Answer:
Ayala Architects
General Journal
April 1
Debit : Cash $18,270
Credit : Common Stock $18,270
April 1
Debit : Salaries expense ($381 x 4) $1,524
Credit : Salaries Payable $1,524
April 2
Debit : Rent expense $914
Credit : Cash $914
April 3
Debit : Supplies $1,320
Credit : Accounts Payable - Burmingham Company $1,320
April 10
Debit : Accounts Receivable $1,929
Credit : Service Revenue $1,929
April 11
Debit : Cash $711
Credit : Deferred Revenue
April 20
Debit : Cash $2,842
Credit : Service Revenue $2,842
April 30
Debit : Salaries expense $1,524
Credit : Cash $1,524
April 30
Debit : Accounts Payable - Burmingham Company $305
Credit : Cash $305
Explanation:
Journal entry for the transactions have been prepared above.
THE IMPORTANCE OF INFORMATION IN MARKETING
Answer:
u r answer
Explanation:
Marketing information and research address the need for quicker, yet more accurate, decision making by the marketer. These tools put marketers close to their customers to help them understand who they customers are, what they want, and what competitors are doing.
Windsor, Inc. reported net income of $200,980 for 2022. Windsor, Inc. also reported depreciation expense of $34,880 and a loss of $4,630 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $14,040 for the year, a $16,780 increase in accounts payable, and a $4,390 increase in prepaid expenses.
Required:
Prepare the operating activities section of the statement of cash flow for 2022.
Answer and Explanation:
The preparation of the operating activities section is presented below;
Cash flows from operating activities
Net income $200,980.00
Adjustments made
Depreciation expense 34,880.00
Loss on sale of plant asset $4,630.00
Increase in accounts receivable $(14,040.00)
Increase in accounts payable $16,780.00
Increase in prepaid expense $(4,390.00)
Net cash from Operating Activities $238,840.00
Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls, or install 6 outlets. In one hour, Bill can paint 5 walls, or install 5 outlets
Required:
a. If Amy painted 8 walls in the first hour of work, and then switched to doing 6 outlets in the second hour of work, what was the opportunity cost of each of those outlets?
b. If Bill painted 5 walls in the first hour of work, and then switched to doing 5 outlets in the second hour of work, what was the opportunity cost of each of those outlets?
Answer:
1.33 walls
1 wall
Explanation:
Tradeoff is the opportunity cost of taking a particular decision
Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives
My doing he outlet, the opportunity to paint is forgone
Amy = 8/6 = 1.33
Bill = 5/5
Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following should not be treated as direct costs, assuming the cost object is individual clocks?
a. The clock face
b. The timing mechanism for each clock
c. Wood
d. Depreciation on dock-making equipment
Answer:
D)depreciation on clock making equipment
Explanation:
From the question we are informed about Sturbridge Company manufactures who fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. In this case, all the following should be treated as direct costs, assuming the cost object is individual clocks;
✓ The clock face
✓The timing mechanism for each clock
✓Wood
A direct cost can be regarded as price which can be tied directly to manufacture of particular goods or services. Direct and indirect costs can be regarded as two major types of costs that can be incurred by companies. Direct costs are been regarded as variable costs often, i.e this cost could fluctuate as q result of production levels like inventory.
Compute the value of price elasticity of supply. If the percentage in quantity supply is 75% and percentage change in price is 55%.
Answer:
Price elasticity of supply = 1.36%
Explanation:
Given the following data;
percentage in quantity supply = 75%
percentage change in price = 55%.
To find the the value of price elasticity of supply;
A price elasticity of supply (PES) can be defined as a measure of the responsiveness of the quantity of a product supplied with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of supply is given by the formula;
[tex] Price \; elasticity \; of \; supply = \frac {Percentage \; change \; in \; supply}{Percentage \; change \; in \; price} [/tex]
Substituting into the formula, we have;
[tex] Price \; elasticity \; of \; supply = \frac {75}{55} [/tex]
Price elasticity of supply = 1.36%
Therefore, the degree of elasticity is said to be elastic because the price elasticity of supply (PES) is greater than 1.
The prepaid insurance account had a balance of $9,400 at the beginning of the year. The account was debited for $10,400 for premiums on policies purchased during the year.
Journalize the adjusting entry required at the end of the year for each of the following situations:
a. The amount of unexpired insurance applicable to future periods is $3,730.
b. The amount of insurance expired during the year is $18,100.
Answer:
Following are the response to the given points:
Explanation:
[tex]\text{Insurance Expense} =\text{ Beginning Prepaid Insurance} + \text{Cash Premium Paid} -\text{Ending Prepaid Insurance}[/tex]
[tex]= \$9,400 + \$10,400 - \$3,730\\\\ = \$16,070[/tex]
[tex]Date \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ General \ Journal \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Dr. \ \ \ \ \ \ \ \ \ Cr. \\\\[/tex] [tex]March \ 31\ \ \ \ \ \ \ \ Insurance \ Expense \ \ \ \ \ 16,070 \ \ \ \ \ \ \ \ \ \ \ \ \ \\\\[/tex]
[tex]Prepaid\ Insurance \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 16,070\\\\[/tex]
For point b:
[tex]Date \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ General \ Journal \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Dr. \ \ \ \ \ \ \ \ \ Cr. \\\\[/tex] [tex]March \ 31\ \ \ \ \ \ \ \ Insurance \ Expense \ \ \ \ \ 18,100 \ \ \ \ \ \ \ \ \ \ \ \ \ \\\\[/tex]
[tex]Prepaid\ Insurance \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 18,100\\\\[/tex]
Ken's home has a replacement value of $200,000. Ken insured the home for $150,000 under an unendorsed Homeowners 3 policy. The roof of Ken's home was damaged by a windstorm. The replacement cost of the damaged roof is $16,000. The actual cash value of the loss is $12,000. How much will Ken receive from his insurer to settle this claim
Answer: $15,000
Explanation:
Using a Homeowners 3 policy, Ken will get the higher amount out of two amounts which are:
The actual cash value of the damaged area. An amount calculated as follows:= (Amount of Insurance cover on home / 80% of Replacement Cost) * Cost of Repair to damaged area.
The actual cash value is $12,000
The second amount is:
= (Amount of Insurance cover on home / 80% of Replacement Cost) * Cost of Repair to damaged area.
= 150,000 / (80% * 200,000) * 16,000
= 0.9375 * 16,000
= $15,000
Ken will receive the higher amount of $15,000.
In June, one of the processing departments at Furbush Corporation had ending work in process inventory of $12,000. During the month, $404,000 of costs were added to production and the cost of units transferred out from the department was $426,000. In the department’s cost reconciliation report for June, the total cost accounted for would be:_________
a) $842,000
b) $46,000
c) $876,000
d) $438,000
Answer:
d) $438,000
Explanation:
Calculation to determine what In the department’s cost reconciliation report for June, the total cost accounted for would be:
Using this formula
Total cost accounted for = Cost of ending work in process inventory + Cost of units transferred out
Let plug in the formula
Total cost accounted for=$12,000+$426,000
Total cost accounted for=$438,000
Therefore In the department’s cost reconciliation report for June, the total cost accounted for would be: $438,000
Aptitude is defined as the ability to _____. learn several different jobs learn a particular kind of job get a job get fired from a job
