Answer:
the elasticity of demand is more elastic in the long run
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
In the long run, people have more time to search for suitable alternatives than when compared to the short run. Thus, demand tends to be more elastic in the long run
Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common stock at $34 per share on October 11. b. Sold 1,225 treasury shares on November 1 for $40 cash per share. c. Sold all remaining treasury shares on November 25 for $29 cash per share.
Answer: See explanation
Explanation:
The journal entry to record the transaction for Sherman systems will be:
Oct-11
Debit Treasury Stock (5,900 × $34) =
$200,600
Credit Cash = $200,600
(To record repurchase of 5900 own shares)
Nov-01
Debit Cash (1,225 × $40) = $49,000
Credit Treasury stock (1,225 × $34) = $41,650
Credit Paid in capital-Treasury Stock = $7,350
(To record sale 1225 shares from treasury stock)
Nov-25
Debit Cash (5,900-1,225) × $29) = $135,575
Debit Paid in capital-Treasury Stock = $7,350
Debit Retained earnings = $16,025
Credit Treasury stock (5,900-1,225) × $34) = $158,950
(To record sale balance from treasury stock)
Zhang Industries sells a product for $700 per unit. Unit sales for May were 400, and each month's unit sales are expected to grow by 3%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales. Compute the budgeted selling expense for the manager for the month ended June 30.
Answer:
Zhang Industries
The Budgeted selling expense for the manger for the month ended June 30 is:
= $8,768.
Explanation:
a) Data and Calculations:
Selling price per unit = $700
Unit sales for May = 400
Expected growth of unit sales each month = 3%
Unit sales for June = 412 (400 * 1.03)
Sales revenue for June = $288,400 ($700 * 412)
Monthly sales salary to the sales manager = $3,000
Monthly sales commission = 2% of sales
Budgeted selling expense for the manger for the month ended June 30:
Monthly sales salary to the sales manager = $3,000
Monthly sales commission = 2% of sales 5,768 ($288,400 * 2%)
Total selling expense for the month = $8,768
Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations
May
1 G. Gram invested $40,000 cash in the company.
1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,890 of office equipment on credit.
5 The company paid $750 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant’s salary for the first half of this month.
20 The company received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.
25 The company received $3,200 cash payment for the services provided on May 22.
26 The company paid $1,890 cash for the office equipment purchased on May 3.
27 The company purchased $80 of advertising in this month’s (May) local paper on credit; cash payment is due June 1.
28 The company paid $750 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $280 cash for this month’s utilities.
31 G. Gram withdrew $1,400 cash from the company for personal use.
Required
a. Show effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns.
b. Prepare an income statement for May, a statement of owner’s equity for May, a May 31 balance sheet, and a statement of cash flows for May.
Answer:
1. Asset and capital will increase
2. Current asset decrease
3. Asset and liability increase
4. Asset decrease
5. Asset increase
6. Asset increase
7. Asset decrease, expense increase
8. Asset increase
9. Asset increase
10. Asset decrease, liability decrease
11. Liability increased
12. Asset decrease
13. Asset decrease
14. Capital decrease
Explanation:
Income Statement for the month of May:
Sales Revenue $11,100
Less: Operating Expenses:
Cleaning service $750
Salary expense $750
Advertising expense $80
Salaries expense $750
Telephone bill $300
Utilities expense $280
Net Profit $8,190
Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $56,000, at which time Scope Products reported retained earnings of $10,000 and capital stock outstanding of $30,000. The differential was attributable to patents with a life of eight years. Income and dividends of Scope Products were
Answer:
1.20X6
1a. Dr Investment in Scope Products $56,000
Cr Cash $56,000
1b. Dr Cash $ 6,000
Cr Investment in Scope Products $ 6,000
1c. Dr Investment in Scope Products $16,000
Cr Income from Scope Products $16,000
1d. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
20X7
2a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
2b. Dr Investment in Scope Products $24,000
Cr Income from Scope Products $24,000
2c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
20X8
3a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
3b. Dr Investment in Scope Products 32,000
Cr Income from Scope Products 32,000
3c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
2.$98,000
Explanation:
1. Preparation of the equity method entries that Pistol should record to account for this investment in 20X6, 20X7, and 20X8.
Equity Method Journal Entries for Pistol Corporation.
20X6
1a. Dr Investment in Scope Products $56,000
Cr Cash $56,000
1b. Dr Cash $ 6,000
Cr Investment in Scope Products $ 6,000
1c. Dr Investment in Scope Products $16,000
Cr Income from Scope Products $16,000
1d. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
{ ($56,000-$10,000-$30,000) /8 years }
20X7
2a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
2b. Dr Investment in Scope Products $24,000
Cr Income from Scope Products $24,000
2c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
{ ($56,000-$10,000-$30,000) /8 years }
20X8
3a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
3b. Dr Investment in Scope Products 32,000
Cr Income from Scope Products 32,000
3c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
{ ($56,000-$10,000-$30,000) /8 years }
2. Calculation to determine the Balance in Investment in Scope Products.
Particulars Amount ($)
Initial Investment Amount $56,000
Add : Share of Income $72,000
($16,000+$24,000+$32,000)
Less : Dividend Received ($22,000)
($6,000+$8,000+$8,000)
Less : Patent Amortization ($6,000)
($2,000 * 3 years)
Balance in Investment in Scope Products Account as on Dec. 31 20X8 $98,000
Therefore the balance of the Investment in Scope account on Pistol balance sheet at December 31, 20X8, after all required equity method entries have been recorded is $98,000
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 186,000 in October, 194,500 in November, and 191,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $143,000 per month. Compute the total budgeted overhead for October.
Answer:
Budgeted overhead (October)= $273,200
Explanation:
Giving the following information:
Production= 186,000 in October
Predetermined variable overhead= $0.70 per unit.
Fixed overhead equals $143,000 per month.
To calculate the budgeted overhead for October, we need to use the following formula:
Budgeted overhead (October)= 0.7*186,000 + 143,000
Budgeted overhead (October)= $273,200
If a coupon bond has two years to maturity, a coupon rate of 10 %, a par value of $1000 , and a yield to maturity of 12 %, then the coupon bond will sell for $nothing . (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are ▼ positively related negatively related unrelated .
Answer:
The right solution is "$966.27".
Explanation:
Given values are:
Coupon rate,
= 10%
Par value,
= $1000
Yield of maturity,
= 12%
then,
Coupon will be:
= [tex]1000\times 10 \ percent[/tex]
= [tex]1000\times 0.1[/tex]
= [tex]100[/tex] ($)
Now,
The present value of coupon will be:
= [tex]A\times \frac{(1-(1+r)^n)}{r}[/tex]
By putting the value, we get
= [tex]100\times \frac{1-(1.12)^{-2}}{0.12}[/tex]
= [tex]100\times \frac{1-0.7971}{0.12}[/tex]
= [tex]100\times \frac{0.2029}{0.12}[/tex]
= [tex]169.08[/tex] ($)
The present value of par value will be:
= [tex]\frac{1000}{(1+12 \ percent)^2}[/tex]
= [tex]\frac{1000}{(1.12)^2}[/tex]
= [tex]797.19[/tex] ($)
hence,
The price of bond will be:
= [tex]Present \ value \ of \ coupon+Present \ value \ of \ par \ value[/tex]
= [tex]169.08+797.19[/tex]
= [tex]966.27[/tex] ($)
The net income reported on the income statement of Cutler Co. was $2,460,000. There were 50,000 shares of $18 par common stock and 20,000 shares of $5 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $300,000 after applicable income tax.
a. Determine the per-share figure for common stock for income before discontinued operations. Round your answer to the nearest cent.
$ per share
b. Determine the per-share figure for common stock for net income. Round your answer to the nearest cent.
$ per share
Answer and Explanation:
The computation is shown below:
a. The earning per share is
= (PAT - income tax discontinued operations - Preference dividend) ÷ number of common stock
= ($2,460,000 - $300,000 - (20,000 × $5)) ÷ (50,000 shares)
= $41.2 per share
b. The earning per share is
= (PAT - Preference dividend) ÷ number of common stock
= ($2,460,000 - (20,000 × $5)) ÷ (50,000 shares)
= $47.2 per share
Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $1,008,000 of costs, administration incurred $1,562,400, and maintenance incurred $476,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources 10% 5% Administration 10% 15 Maintenance 15 10 Assembly 40 50 45 Finishing 35 30 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments
Answer:
Leander Mfg.
Human resources cost assigned to other departments:
Administration 100,800 (10%)
Maintenance 151,200 (15%)
Assembly 403,200 (40%)
Finishing 352,800 (35%)
Total HR costs $1,008,000
Explanation:
a) Data and Calculations:
Human Resource Administration Maintenance
Direct costs incurred $1,008,000 $1,562,400 $476,000
Human resources 10% 5%
Administration 10% 15
Maintenance 15 10
Assembly 40 50 45
Finishing 35 30 35
Allocation of Costs:
Human Resource Administration Maintenance
Direct costs incurred $1,008,000 $1,562,400 $476,000
Human resources ($1,008,000) 100,800 151,200
Administration 100,800 (10%) ($1,663,200) 184,800
Maintenance 151,200 (15%) 184,800 (10%) ($812,000)
Assembly 403,200 (40%) 924,000 (50%) 456,750 (45%)
Finishing 352,800 (35%) 554,400 (30%) 355,250 (35%)
Human resources cost assigned to other departments:
Administration 100,800 (10%)
Maintenance 151,200 (15%)
Assembly 403,200 (40%)
Finishing 352,800 (35%)
Total HR costs $1,008,000
Administration costs assigned to other departments:
Maintenance 184,800 ($1,663,200 * 10/90)
Assembly 924,000 ($1,663,200 * 50/90)
Finishing 554,400 ($1,663,200 * 30/90)
Total administration costs $1,663,200
Maintenance costs assigned to other departments:
Assembly 456,750 ($812,000 * 45/80)
Finishing 355,250 ($812,000 * 35/80)
Total administration costs $812,000
Periodic inventory by three methods The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown below:
Number
Date Transaction of Units Per Unit Total
Jan. 1 Inventory 7,500 $75.00 10
Purchase 85.00 22,500 11,250
28 Sale $562,500 1,912,500 1,687,500
562,500 150.00 30 Sale 3,750 150.00
Feb. 5 Sale 1,500 150.00 225,000
10 Purchase 54,000 87.50 4,725,000
16 Sale 27,000 160.00 4,320,000
28 Sale 25,500 160.00 4,080,000
Mar. 5 Purchase 45,000 89.50 4,027,500
14 Sale 30,000 160.00 4,800,000
25 Purchase 7,500 90.00 675,000
30 Sale 26,250 160.00 4,200,000
1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.
4. Compare the gross profit and the March 31 inventories, using the following column headings.
Answer:
1. We have:
Inventory on March 31 = $1,010,625
Cost of merchandise sold for the three-month period = $10,891,875
2. We have:
Inventory on March 31 = $881,250
Cost of merchandise sold for the three-month period = $11,021,250
3. We have:
Inventory on March 31 = $980,975.27
Cost of merchandise sold for the three-month period = $10,921,524.73
4. We have:
Details FIFO LIFO Weighted Average
$ $ $
Sales 19,875,000 19,875,000 19,875,000
Cost of Goods sold (10,891,875) (11,021,250) (10,921,525)
Gross Profit 8,983,125 8,853,750 8,953,475
Inventory, March 31 1,010,625 881,250 980,975
Explanation:
1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
Note: See part 1 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
From the part 1 of the attached excel file, we have:
Inventory on March 31 = $1,010,625
Cost of merchandise sold for the three-month period = $10,891,875
2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
Note: See part 2 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
From the part 2 of the attached excel file, we have:
Inventory on March 31 = $881,250
Cost of merchandise sold for the three-month period = $11,021,250
3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.
Note: See part 3 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system.
From the part 3 of the attached excel file, we have:
Inventory on March 31 = $980,975.27
Cost of merchandise sold for the three-month period = $10,921,524.73
4. Compare the gross profit and the March 31 inventories, using the following column headings.
Details FIFO LIFO Weighted Average
$ $ $
Sales 19,875,000 19,875,000 19,875,000
Cost of Goods sold (10,891,875) (11,021,250) (10,921,525)
Gross Profit 8,983,125 8,853,750 8,953,475
Inventory, March 31 1,010,625 881,250 980,975
Agreements between an exporter and an agent and agreements between an exporter and a distributor are called distribution contracts.
a. True
b. False
Answer: True
Explanation:
The statement that the agreements between an exporter and an agent and the agreements between an exporter and a distributor are called the distribution contracts is true.
It should be noted that the distribution comtract is the contract that takes place between the supplying company and the other company which sells the products. The contract gives the distributor the right to sell and market the product of the supplier.
how did you find the fv factor values
Answer:
v5th factor in solve......
Workman Software has 11 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 108.3 percent of par. a. What is the current yield on the bonds
Answer:
10.16%
Explanation:
Coupon amount = 11% * 1000
Coupon amount = $110
Price of bond = 1000*108.3%
Price of bond = $1,083
Current yield = Coupon amount / Price of bond
Current yield = $110 / $1,083
Current yield = 0.1015697
Current yield = 10.16%
So, the current yield on the bonds is 10.16%.
What is the Production Possibilities Frontier's purpose?
:a. Showing businesses that in order to produce more, they need to hire more output
b. Show businesses that businesses should not produce at their maximum capacity because they could exhaust their workers and capital goods
c. Show businesses that they need to produce at their maximum capacity to be efficient
d. Showing businesses that a worker's high morale is necessary to make them efficient
Answer:
Uhh b
Explanation:
Your broker suggests that the stock of DUH is a good purchase at $25. You do an analysis of the firm, determining that the recent $1.40 dividend and earnings should continue to grow indefinitely at 5 percent annually. The firm's beta coefficient is 1.3, and the yield on Treasury bills is 1.4 percent. If you expect the market to earn a return of 8 percent, what is your valuation of DUH
Answer:
The correct answer is "$28.03".
Explanation:
The given values are:
Good purchase,
= $25
Dividend,
= $1.40
Annually earning,
= 5%
Beta coefficient,
= 1.3
Treasury bills,
= 1.4%
Now,
= [tex]1.4+1.34\times 8-1.4[/tex]
= [tex]1.34\times 8[/tex]
= [tex]10.244[/tex] (%)
hence,
The fair value will be:
= [tex]1.4\times \frac{1.05}{.10244}-.05[/tex]
= [tex]28.03[/tex]
Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.
Given that the DM price of the ECU was 2.0583 and the DG price of the ECU was 2.3194. Then the DG price of the DM by cross rates is given by:______
a. DM = about 4.73 DG.
b. DM = about .26 DG.
c. DM = about 1.13 DG.odno
d. DM = about .89 DG.
Answer:
Option c (DM = about 1.13 DG) is the right approach.
Explanation:
Given:
DM price,
= 2.0583
DG price,
= 2.3194
Now,
By cross rates, the DG price of DM will be:
= [tex]\frac{2.3194}{2.0583}[/tex]
= [tex]1.13[/tex]
Thus the above is the correct option.
The diameter of a brand of tennis balls is approximately normally distributed, with a mean of 2.56
inches and a standard deviation of 0.04
inch. A random sample of 11
tennis balls is selected. Complete parts (a) through (d) below.
Answer:
sample mean = 2.63 inches
sample standard deviation = \frac{standard \hspace{0.15cm} deviation}{\sqrt{n} } = \frac{0.03}{\sqrt{9} } = \frac{0.03}{3} = 0.01
n
standarddeviation
=
9
0.03
=
3
0.03
=0.01
b) P(X < 2.61) = 0.0228
c.) P(2.62 < X < 2.64) = 0.6827
d.) Therefore 0.06 = P(2.6292 < X < 2.6307)
Step-by-step explanation:
i) the diameter of a brand of tennis balls is approximately normally distributed.
ii) mean = 2.63 inches
iii) standard deviation = 0.03 inches
iv) random sample of 9 tennis balls
v) sample mean = 2.63 inches
vi) sample standard deviation = \frac{standard \hspace{0.15cm} deviation}{\sqrt{n} } = \frac{0.03}{\sqrt{9} } = \frac{0.03}{3} = 0.01
n
standarddeviation
=
9
0.03
=
3
0.03
=0.01
vii) the sample mean is less than 2.61 inches = P(X < 2.61) = 0.0228
viii)the probability that the sample mean is between 2.62 and 2.64 inches
P(2.62 < X < 2.64) = 0.6827
ix) The probability is 6-% that the sample mean will be between what two values symmetrically distributed around the population measure
Therefore 0.06 = P(2.6292 < X < 2.6307)
Kawamura, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods. Right after he achieves the utility-maximizing level of consumption of the two goods, the price of peanut butter falls. After he adjusts to this event, the marginal utility of peanut butter goes _____ and that of ice cream goes _____.
Answer:
The marginal utility of peanut butter goes down and that of ice cream goes up.
Explanation:
The substitution effect states that when the price of a product falls, it will lead to a rise in the quantity demanded of the product as buyers will buy more of the product that is now relatively cheaper.
And as more of a good is bought, its marginal utility falls. And as less of a product is bought, its marginal utility increases.
Based on the above explanation therefore, the marginal utility of peanut butter goes down and that of ice cream goes up after Kawamura adjusts to the event.
This is because as more of peanut butter is bought due to the fall in its price, its marginal utility falls. And as less of ice cream is bought as it is now relatively more expensive, its marginal utility increases.
Select the behavior related to dress or posture that will be most effective in helping Shawna accomplish her goals.
a. Shawna clasps her hands behind her back so that the audience cannot see them shaking, and to project confidence.
b. Shawna has her formal gown dry-cleaned so that it will be ready for her to wear at the event.
c. Shawna crosses her arms to appear powerful and in charge.
d. Shawna wears a hard hat and kitchen apron to emphasize the hard work done by volunteers.
Answer: b. Shawna has her formal gown dry-cleaned so that it will be ready for her to wear at the event
Explanation:
The behavior that's related to dress or posture that will be most effective in helping Shawna accomplish her goals is that Shawna has her formal gown dry-cleaned so that it will be ready for her to wear at the event.
Unlike other options such as her clasping her hands behind her back so that the audience cannot see them shaking, and to project confidence and her crossing her arms to appear powerful and in charge, having her dress ready for the event is appropriate as it will help achieve her goal
Therefore, the correct option is B.
Andrews Co. can purchase 20,000 units of Part XYZ from a supplier for $18 per part. Andrews' per unit manufacturing costs for 20,000 units is as follows: Cost Per Unit Total Variable manufacturing cost $12 $240,000 Supervisor salary $3 $60,000 Depreciation $1 $20,000 Allocated fixed overhead $7 $140,000 If the part is purchased, the supervisor position will be eliminated. The special equipment has no other use and no salvage value. Total allocated fixed overhead would be unaffected by the decision. The company should ______.
Answer:
Andrews Co.
The company should ______.
should make the part.
Explanation:
a) Data and Calculations:
Costs to make Part XYZ:
Cost Per Unit Total
Variable manufacturing cost $12 $240,000
Supervisor salary $3 $60,000
Depreciation $1 $20,000
Allocated fixed overhead $7 $140,000
Units to be made or bought = 20,000 units
Cost to buy Part XYZ = $18 per part.
Relevant costs:
Make Buy Difference
Variable manufacturing cost $12
Supervisor salary $3
Total relevant cost per unit $15 $18 $3
Total costs $300,000 $360,000 $60,000
b) There is a cost-saving of $60,000 when Part XYZ is made internally. The cost of depreciation is not relevant in the decision since the equipment has no salvage value or any other use. Similarly, the fixed overhead will still be incurred, no matter the alternative chosen by the company.
what is least likely to get managers to act in best interest of the owner threat of a prozy fight stock option plans
Answer:
The least likely to get managers to act in the best interest of the owner is:
stock option plans.
Explanation:
But with the threat of a proxy fight, managers get up to speed, acting in the best interest of the owners of the firm because their jobs are at stake. The main purpose of a proxy fight is the removal of the current management of the firm. During a proxy fight, contest, or battle, some shareholders in a company attempt to oppose and vote out the current management or board of directors. On the other hand, stock option plans reward managers with employee ownership rights at discounted prices.
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $102.335 million Cash of $8.040 million Total Assets of $165.097 million Retained Earnings of $35.132 million. What was the Digby Corporation's common stock
Answer:
$27.63 million
Explanation:
Total equity = Common stock + Retained earnings
Common stock = Total equity - Retained earnings
Common stock = (Total assets - Total liabilities) - Retained earnings
Common stock = ($165.097 million - $102.335 million) - $35.132 million
Common stock = $62.762 million - $35.132 million
Common stock = $27.63 million
How are laws of supply and demand similar
Type your answer in the box.
For a population with u = 25 and = 5, we would expect 90% of all x's calculated from n = 35 to
fall between
and
(Round to two decimals.)
Do you know the answer?
D Read about this
I know it
Think so
Unsure
No idea
Answer:
Your answer is given below:
Explanation:
A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources fully. implies that there are unemployed resources in this nation. is easily attainable for this nation. is not attainable for this nation. Submit
Answer:
is not attainable for this nation
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources
Points inside the production possibilities curve means that the nations resources are not being fully utilised
Factors that cause the PPF to shift
1. changes in technology.
2. changes in available resources.
3. changes in the labour force.
Given below are several ratios. Select the accounts or amounts that would be used in order to calculate the ratio. You will have more than one response to each ratio. Some accounts or amounts may not be used at all. (Select all that apply.) Debt-to-equity ratio a.Cash paid for acquisitions b.Interest expense c.Total dividends paid d.Cash flow from operations before interest and tax payments e.Total stockholders' equity f.Net income g.Total liabilities h.Cash flow from operations
Answer:
Total stockholders' equity.Total liabilities.Explanation:
The Debt to equity ratio shows the proportions of the financing options used to finance the operations of the company namely debt and equity.
It is calculated by the formula:
= Total liabilities / Total stockholders' equity * 100%
As shown by the formula , the relevant accounts are:
Total stockholders' equity.Total liabilities.a. If a wage of $10.25 were to be imposed on this market, such that the market was not longer strictly competitive, what would be the value for labor supply?
b. At the imposed wage of $10.25 what would be the value for labor demand?
c. Provide a properly labeled and appropriately articulated Labor Market Model given the labor supply and demand equations provided and the imposed wage of $10.25.
d. Based on the labor market model you’ve now illustrated, how would you describe the current condition of this market given the imposed wage?
Solution :
Given the wage = $ 10.25 that is to be imposed to the market.
Given equation :
[tex]L_D[/tex] = 500 – 45W and [tex]L_S[/tex] = -200 + 25W
If the wage of $10.25 is to be imposed to the market, the value of the labor supply can be found by putting the value of the wage in the labor supply equation.
At W = 10.25
Putting this value in the above equation, the labor supply would be
[tex]L_S[/tex] = -200 + 25W
[tex]L_S[/tex] = -200 + 25(10.25)
= 56.25
When W = 10.25, the value for the labor demand can be found by :
[tex]L_D[/tex] = 500 – 45W
[tex]L_D[/tex] = 500 – 45(10.25)
[tex]L_D[/tex] = 500 – 461.25
[tex]L_D[/tex] = 38.75
Therefore, the labor demand and the labor supply model is
[tex]L_D[/tex] = 400 - 45 x 10.25
[tex]L_S[/tex] = -200 + 25 x 10.25
Suppose the ABC bank has excess reserves of $3,000 and checkable deposits of $50,000. If the reserve requirement is 20 percent, what is the size of the bank's actual reserves?
a. $53,000
b. $13,000
c. $10,000
d. $7,000
Answer:
b. $13,000
Explanation:
Calculation to determine the size of the bank's actual reserves
Using this formula
Actual reserves size=Excess reserves+(Checkable deposits*Reserve requirement)
Let plug in the formula
Actual reserves size=$3,000+(.20*$50,000)
Actual reserves size=$3,000+$10,000
Actual reserves size=$13,000
Therefore the size of the bank's actual reserves is $13,000
A researcher wants to test the order of integration of some time series data. He decides to use the DF test. He estimates a regression of the form
delta yt = mu + si yt-1 + mut
and obtains the estimate ˆ? = -0.02 with standard error = 0.31.
(a) What are the null and alternative hypotheses for this test?
(b) Given the data, and a critical value of -2.88, perform the test.
(c) What is the conclusion from this test and what should be the next step?
(d) Why is it not valid to compare the estimated test statistic with the corresponding critical value from a t-distribution, even though the test statistic takes the form of the usual t-ratio?
Answer:
a) H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) t stat = -0.064
c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Explanation:
a) stating the null and alternative hypothesis
H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) performing the test
critical value = -2.88
T stat = coefficient / std error
= -0.02 / 0.31 = -0.064
c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 25 $ 10 Direct labor 22 21 Variable manufacturing overhead 17 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Total cost per unit $ 113 $ 80 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 9. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. A supplier has offered to manufacture and deliver 82,000 Alphas to Cane for a price of $88 per unit. What is the financial advantage (disadvantage) of buying 82,000 units from the supplier instead of making those units
Answer:
Cane Company
The financial advantage of buying 82,000 units from the supplier instead of making those units is:
= $656,000.
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price $130 $90
Annual production capacity 102,000 102,000 units
Direct materials per unit $25 $10
Direct labor 22 21
Variable manufacturing overhead 17 7
Traceable fixed manufacturing overhead 18 20
Variable selling expenses 14 10
Common fixed expenses 17 12
Total cost per unit $ 113 $ 80
Cost of Alphas Make Buy Difference
Direct materials per unit $25
Direct labor 22
Variable manufacturing overhead 17
Traceable fixed manufacturing overhead 18
Variable selling expenses 14
Total cost per unit $ 96 $ 88 $ 8
Expected production/sales and purchase 82,000 82,000 82,000
Total cost or producing or buying $7,872,00 $7,216,000 $656,000
Which of the following is considered the process in the systems thinking example of a decision support system?
a. transaction
b. processing system.
c. optimization
d. forecasts
Answer: C. Optimization
Explanation:
In the decision making system, TPS is considered to be the input in the systems thinking example.
In the decision making system, optimization is considered to be the process in the systems thinking example.
In the decision making system, TPS is considered to be the input in the systems thinking example.
In the decision making system, a forecast is considered to be the output in the systems thinking example.
