Suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of shampoo, and 3 jars of peanut butter. In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter. If the prices in both years are $4 per quart for ice cream, $3 per bottle of shampoo, and $2 per jar of peanut butter, what was the economy's GDP in year 1? What was its GDP in year 2?

Answers

Answer 1

Answer:

$21

$30

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP in year 1 = (3 × $4) + (1 ×$3 ) + (3 x $2) =$21

GDP in year 2 = ( 5 x $4) + (2 x$3 ) + (2 x $2) = $30

I hope my answer helps you


Related Questions

Carlinville Car Parts, Inc. has been provided by its lenders and owners with $46,000,000 to purchase assets. The most recent income statement showed Earnings Before Interest and Taxes (EBIT, or Operating Income) of $10,500,000, and net income of $3,950,000. Income tax was paid at a 25% average annual rate. What was Return on Invested Capital (ROIC) for the year?

Answers

Answer:

17%

Explanation:

The formula to calculate ROIC is:

ROIC= Net operating profit after tax/ Total invested capital

ROIC= EBIT*(1-Tax rate)/Total invested capital

ROIC= 10,500,000*(1-0.25)/46,000,000

ROIC= 7,875,000/46,000,000

ROIC= 0.17 → 17%

According to this, the answer is that the Return on Invested Capital (ROIC) for the year is 17%.

As of December 31, 2020, Gill Co. reported accounts receivable of $216,000 and an allowance for uncollectible accounts of $8,400. During 2021, Gill recorded $1,007,800 of credit sales, collections of $978,000, and wrote off $7,800 of bad debts. An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2021 would be:

Answers

Answer:

$6,574

Explanation:

Allowance for uncollectible accounts is a contra asset account and it has credit nature. It needs to be debited to decrease the balance and credited to increase the balance. Balance of this account is adjusted in the account receivable to report the net receivable balance in the balance sheet.

As per given data

Beginning allowance for uncollectible accounts balance = $216,000

Write off is the adjustment mad in this account and it needs to be debited in this account, this transaction will reduce the balance.

Adjusted Balance = $8,400 - 7,800 = $600

Account receivable balance = $216,000 + 1,007,800 - $978,000 = $245,800

Estimated allowance for uncollectible accounts balance = $245,800 x 3% = $7,374

As allowance for uncollectible accounts has already have balance of $600, Bad debt expense for the year is $6,574  ($7,374 - $800)

The CFO’s objective is to make certain that the capital consumed in farming is renewed and that the farm remains efficient, utilizing the best technology and equipment appropriate for its competitive situation. How would you expect the CFO to calculate depreciation expense?

Answers

Explanation:

Since the CFO wants the company to be competitive in the Industry he has to upgrade the machines and equipment in time when a new technology hits the market. which makes the company to increase the depreciation expense and write of the asset as early as possible.

The members of the farm is sharing the profits and assumes no other way of remuneration or incentive, Hence there will not be any opposition in charging higher depreciation.

So it is suitable for the company to claim depreciation on Straight Line method or Double Decline method which will amortize the capital expense early.

Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $80,000 per ton, one-fourth of which is allocated to product X15. Seven thousand seven hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $13 each, or processed further at a total cost of $8,300 and then sold for $19 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15

Answers

Answer:

It is more convenient to continue processing. Income will increase by $37,900

Explanation:

Giving the following information:

7,700 units of product X15 are produced from each ton of clypton.

The units can either be sold at the split-off point for $13 each or processed further at a total cost of $8,300 and then sold for $19 each.

Sell now:

Effect on income= 7,700*13= 100,100

Continue processing:

Effect on income= 7,700*19 - 8,300= 138,000

It is more convenient to continue processing. Income will increase by $37,900

Answer:

Financial advantage $33,700

Explanation:

                                                                                                      $

Sales at the split-off point  ($13 × 7,000)                               91,000

Sales after the split off point ($19 × 7,000)                            133,000

Additional sales revenue                                                         42,000

Further processing cost                                                           (8,300)

Financial advantage                                                                33,700

Financial advantage $33,700

The joint costs of $80,000 is irrelevant for this decision. Whether or not the product is processed further they had already been incurred.

argaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 23 percent.a. What is the company’s WACC?

Answers

Answer:

WACC =  8.41%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool..

After-tax cost of debt = (1- tax rate) × before tax cost of debt

                                   = (1-0.23)×  6% = 4.6%

Type                         Cost (%)               Weight               cost × weight

Equity                          10                          70                           7

Preferred stock          5                            5                             0.25

Debt                            4.6%                       25                          1.155

Total                                                       100                              8.405

WACC =  8.405 / 100   ×  100 = 8.41%

WACC =  8.41%

Pronghorn Appliances provides a 3-year warranty with one of its products which was first sold in 2017. Pronghorn sold $1,840,000 of products subject to the warranty. Pronghorn expects $202,000 of warranty costs over the next 3 years. In 2017, Pronghorn spent $106,000 servicing warranty claims. Prepare Pronghorn’s journal entries to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs; Pronghorn now expects future warranty costs of $115,000

Answers

Answer:

See the explanation below.

Explanation:

Balance in the warranty liability account after claim = $202,000 - $106,000 = $96,000

Amount needed to reduce expected warranty to $115,000 = $155,00 - $96,000 = $19,000

The journal entries will be as follows:

Details                                           Dr ($)                         Cr ($)      .

Cash                                         1,840,000

Sales revenue                                                           1,840,000

To record the sales of products                                                     .

Warranty expenses                  202,000

Estimated warranty liability                                       202,000

To record the expected warranty expenses                                  .

Warranty liability account          106,000

Inventory                                                                     106,000

To record the warranty claim                                                           .

Warranty expenses                     19,000

Estimated warranty liability                                         19,000

To record the reduction of expected warranty expenses to $115,000.

Crane Corporation had the following 2020 income statement. Sales revenue $197,000 Cost of goods sold 124,000 Gross profit 73,000 Operating expenses (includes depreciation of $19,000) 48,000 Net income $25,000 The following accounts increased during 2020: Accounts Receivable $10,000, Inventory $10,000, and Accounts Payable $11,000. Prepare the cash flows from operating activities section of Crane’s 2020 statement of cash flows using the direct method.

Answers

Answer:

$35,000

Explanation:

Crane Corporation

CASH FLOW STATEMENT

FOR THE YEAR ENDING 2020

Cash Flows from Operating Activities:

Net Income                                                                                    $25,000

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation on Fixed Assets                                                       $19,000

(Increase) Decrease in Current Assets:

Accounts Receivable                                                                     ($10,000)

Inventory                                                                                         ($10,000)

Increase (Decrease) in Current Liabilities:

Accounts Payable                                                                            $11,000

Net Cash Provided by operating activities                                  $35,000

Cash Flow from Investing Activities:                                                     -

Cash Flow from Financing Activities:                                                     -

Net Increase (Decrease) in Cash                                                    $35,000

Gilberto Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $2.00 per unit, fixed costs related to making this part are $50,000 per year, and allocated fixed costs are $40,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.20 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 50,000 and buying 50,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier

Answers

Answer:

Net incremental cost of buying   (10,000). \

Gilberto Company should produced the parts internally . Doing so would saving its $10,000 per year

Explanation:

The relevant cash flow from the accepting the offer of the outside suppliers include

Extra variable cost of buying

Savings in direct fixed manufacturing overhead

Unit variable cost of making: =$2  

                                                                                                       $

Variable cost of external purchase ($3.2× 50,000)              160,000  

Variable cost of making ($2× 50,000)                                   (100,000 )

Extra variable cost of buying                                                   (60,000 )

Savings in direct fixed cost                                                      50,000

Net incremental cost of buying                                             (10,000)

Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into Product X. Intermediate product B can be further processed into Product Y. The common input is purchased in batches that cost $89 each and the cost of processing a batch to produce intermediate products A and B is $36. Intermediate product A can be sold as is for $53 or processed further for $33 to make Product X that is sold for $79. Intermediate product B can be sold as is for $113 or processed further for $66 to make Product Y that is sold for $158.
Required:
A. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of the common input into the end products X and Y?
B. Should each of the intermediate products, A and B, be sold as is or processed further into an end product?

Answers

Answer:

Explanation:

                                  Product A              Product B     Total

Incremental rev.           79                       158                  237

Incremental cost           33                        66                   99

Contribution                  46                        92                  138

common cost                                                                    (89)

Cost of Processing                                                           (36)

Net income                                                                        13

B

Financial advantage - Incremental revenue- Incremental cost -Initial revenue

Product A

79-33-53 = - 7

Product B

158-66-113 = -21.

The two products are better sold at it is without further processing.

As no other cost is involved in the processing or selling and the initial selling price is greater than the incremental contribution , it is advisable that they are sold as they are

If the marginal propensity to consume decreases, then the marginal propensity to save will decrease by the same percentage. the spending multiplier will decrease. the money multiplier will decrease. the rate of savings will decrease. the spending multiplier will increase.

Answers

Answer:

1.If the marginal propensity to consume decreases, then

a)the marginal propensity to save will decrease by the same percentage.

b)the spending multiplier will decrease.

c)the money multiplier will decrease.

d)the rate of savings will decrease.

e)the spending multiplier will increase.

2.Which of the following might cause stagflation in an open-market economy operating at equilibrium in the intermediate range of the aggregate supply curve?

a)Over the course of time, companies begin to provide educational opportunities for their employees.

b)The price of oil decreases as new reserves are found in the Alaskan wilderness.

c)The government sets a price ceiling for gasoline below market equilibrium.

d)An earthquake causes a serious rupture in the Alaskan oil pipeline that will take 6 months to repair.

e)Consumers fear a recession so they cut back on spending causing massive layoffs in major cities across the United States.

3.According to Classical economists,

a)the economy is stable in the long run causing unemployment to increase during time of recession.

b)the economy is stable in the long run and macroeconomic equilibrium can occur at less than full employment.

c)the economy is stable in the long run and self correcting to full employment.

d)the economy is unstable in the long run causing unemployment to increase during time of recession.

e)the economy is unstable in the long run and self correcting to full employment.

4.Which of the following will cause a decrease in SRAS?

a)An increase in labor productivity

b)An decrease in employee wages

c)An increase in government regulations on businesses

d)An increase in consumer spending

e)A decrease in investment spending

5.When inflation has reached a peak, economists would say that the economy has reached the

a)trough of the business cycle.

b)expansion of the business cycle.

c)peak of the business cycle.

d)contraction of the business cycle.

e)bottom of the business cycle.

6.In the circular flow diagram, tourists spend money in

a)the product market that provides goods and services to firms.

b)the product market that provides profit for firms.

c)the product market that provides revenue for firms.

d)the factor market that provides profit for firms.

e)financial markets that provides profit for firms.

7.Which of the following statements about the official rate of unemployment in the United States is most accurate?

a)The official unemployment rate includes only structurally and frictionally unemployed persons.

b)The official unemployment rate is greater than the natural rate of unemployment.

c)The official unemployment rate does not include discouraged workers.

d)The official unemployment rate includes all unemployed persons except teenagers who would be counted as seasonally unemployed.

e)The official unemployment rate includes all people in the labor force who do not have jobs.

8.If the Federal Reserve purchases securities, then

a)consumer spending will increase and AD will shift right.

b)consumer spending will decrease and AD will shift left.

c)government spending will increase and AD will shift right.

d)investment spending will increase and AD will shift right.

e)investment spending will decrease and AD will shift left.

9.If, while maintaining a balanced budget, Congress decreases spending and taxes by $100 each, then

a)aggregate demand will shift right.

b)aggregate demand will shift left.

c)aggregate demand will remain the same.

d)aggregate supply will shift right.

e)aggregate supply will shift left

10)If Congress wanted to lower inflation and unemployment at the same time, it would most likely

a)increase the international value of the dollar.

b)increase spending on public works projects across the United States.

c)decrease personal income taxes.

d)pay subsidies to businesses that increase economic investment and provide increased training and education to their workers.

e)decrease welfare payments to the working poor.

Explanation:

Pharmaceutical Company (PC) has made record profits in the last 10 years. For each of the first 9 years, PC has declared dividends. In the 10th year, however, PC decides not to decare dividends and to reinvest that money into new drugs. Harry, a shareholder who relies on the dividends for income, sues the Board of Directors and the Officers for failing to issue a divident in the 10th year. Who wins and why?

Answers

Answer:

As in my consideration the pharmaceutical organization might won the case , as for all the dividend bonds concerned decision are taken by the organizational financial advisor, and it's the responsibility of financial advisor to choose whether to issue the revenue as dividend bonds or to hold them for more investment to generate large revenue. Thus it's the choice of the corporate that whether to issue dividend or not.

The dividend is the portion of profit that is paid to the shareholders in respect to the funds invested by them for the long-term. It is paid to the preference shareholders at a fixed rate at the end of each period while it is paid to the equity shareholders based upon the amount of profit.

The case for the dividend is won by the pharmaceutical organization.

The reason is the payment or non-payment of dividend to the shareholders' is a concerned decision that is taken by the board of directors and financial advisors of the organization.

It becomes responsibility of the financial advisor to take advantageous decision for the organization and shareholders, that is the payment of dividend is the current period is feasible or holding them for reinvestment and earning more revenue is feasible.

To know more about dividend, refer to the link:

https://brainly.com/question/7636713

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 4,600 Variable costs per unit: Direct materials $ 91 Direct labor $ 85 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 161,000 Fixed selling and administrative expense $ 326,600 There were no beginning or ending inventories. The absorption costing unit product cost was:

Answers

Answer:

The answer is $ 218

Explanation:

Solution

Given that:

                       Description                             Amount

                       Direct materials                          $91

                 Direct labor                                       $85

Variable manufacturing overhead                     $7

Fixed manufacturing overhead

( $ 161,000/ 4,600 units)                                    $35

The unit product under absorption costing =  $218

Therefore, the absorption costing unit product cost is $218

Supposed your organization used a qualitative risk assessment matrix with three levels each of probability and consequences (high, medium and low). In evaluating a project's risks, you determine that commercial risks pose a low probability of occurrence but high consequences. On the other hand, legal risks are evaluated as having a high probability of occurrence and medium consequence. If you are interested in prioritizing your risks, What should be considered first?

Answers

Answer:

I consider that commercial or legal risks should be prioritized as they have a high probability of occurrence and  medium consequence is not low, so it affects a project or company in a medium degree.

Explanation:

Commercial and legal risks: the more you know about a company, the safer the commercial exchanges with it will be. Knowing all the official information published in public records, in the media and that relating to their management teams, shareholders or administrators will complete that previous image of who we are relating to and will prevent us from taking surprises in the future.

Furthermore, it is important to bear in mind that initially, if the project or the company does not have all its clearly established legal norms, it may incur a sanction and be forced to compensate damages due to its breach of norms or regulations and contractual obligations.

This type of risk also arises as a consequence of failures in contracts and transactions, which derive from malicious acts, negligence or involuntary acts that do not make it possible to formalize or execute contracts or transactions.

Forty-three percent of Americans use social media and other websites to voice their opinions about
television programs (the Huffington Post, November 23, 2011). Below are the results of a survey of
1364 individuals who were asked if they use social media and other websites to voice their opinions
about Television programs
Uses Social Media and Other Websites to
Voice Opinions About Television Programs
Doesn’t Use Social Media and
Other Websites to Voice
Opinions About Television
Programs
Female 395 291
Male 323 355
a. Show a joint probability table. (2 marks)
b. What is the probability a respondent is female? (2 marks)
c. What is the conditional probability a respondent uses social media and other websites to voice
opinions about television programs given the respondent is female? (3 marks)
d. Let F denote the event that the respondent is female and A denote the event that the
respondent uses social media and other websites to voice opinions about television programs.
Are events F and A independent?

Answers

Answer:

(a) 0.2896 (b) 0.5029 (c)0.5758 (d)In this case they are dependent  because the gender is segregated as social media user or not as asocial media worker. the probability and variable is tied to it

Explanation:

Solution

(a)In a survey of 1,364 people, 395 were females who used social media and 232 did not. of males 232 use social media and 355 did not

To make or develop a probability table, take each group and divide their number by their total for example female that use social media is 395 of a total of 1364

395/1364 =0.2896

The probability that a woman uses social media in the survey is 0.2896

so,

                                  A              B              T

Female                  0.2896       0.2133      0.5029

Male                      0.2368       0.2603     0.4971

Total                      0.5264      0.4736       1.00

(b) To find the probability  of a surveyed person being a female, we divivde the total number of females by the whole number, shown below

686/1364 = 0.5029

(c)Conditional probability is defined using the formula which is shown below:

P(A/B) = P(A∩B)/P(B)-------(1)

Where P(A∩B) is the probability of females that use social media 0.2896 and P(B) is the total female probability which is 0.5029

Now we substitute the values in the equation 1 and calculate the probability as shown below:

P(A/B) = 0.2896/0.5029 =0.5758

the conditional probability that are surveyed person is female and uses social media is 0.5758

(d) In this case they are dependent  because the gender is segregated as social media user or not as asocial media worker. the probability and variable is tied to it

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.2017 2016Net sales $ 276,200 $ 231,400Cost of goods sold 151,900 129,590Operating expenses 55,240 53,240Net earnings 27,820 19,820Multiple Choice65.1% for 2017 and 64.6% for 2016.55.0% for 2017 and 56.0% for 2016.119.4% for 2017 and 100.0% for 2016.36.4% for 2017 and 41.1% for 2016.117.2% for 2017 and 100.0% for 2016.

Answers

Answer:

119.4% for 2017 and 100.0% for 2016.

Explanation:

                                                      2017                2016

Net sales                                 $276,200        $231,400

Cost of goods sold                  $151,900        $129,590

Operating expenses                $55,240         $53,240

Net earnings                             $27,820          $19,820

since we are using 2016 as a base year, the $231,400 in net sales represent 100%, so the trend percentage for 2017 = net sales 2017 / net sales 2016 $276,200 / $231,400 = 1.1936 = 119.4% or a 19.4% increase.

The base year's amount will always be 100% or 1, and the trend percentages will change relative to that year.

Answer:

turtle

Explanation:

Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should A. recognize additional depreciation expense for the period. B. include a credit to the equipment account. C. include a credit to the equipment accumulated depreciation account. D. not be made if the equipment is still being used.

Answers

Answer:

C. include a credit to the equipment accumulated depreciation account.

Explanation:

Since Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should include a credit to the equipment accumulated depreciation account.

In Accounting, Depreciation can be defined as the decrease in the value of an asset (factory equipment, logistics tools etc) as a result of wear or tear, within a specific period of time. Depreciation is used for the allocation of cost to tangible assets with respect to its life expentency or within its useful life.

. Spot rates and forward rates:Assume that the current yield curve for zero-coupon bonds (spot rates) is as follows:y1 = 0.5%, y2 = 0.75%, y3 = 1.0%, y4 = 1.25%, y5 = 1.5%a. Plot the spot rates against maturity (yield curve). Is the yield curve upward or downward sloping? Do market participants expect interest rates to increase or decrease in the future? b. What are the implied 1-year forward rates f2, f3, f4, and f5? Are interest rates expected to increase or decrease?Assume that there is no uncertainty about future short rates. This means that future 1 year interest rates will be equal to current forward rates (which you calculated in b.).c. In that situation what will be the spot curve (that is, the yields to maturity on 1, 2, 3, and 4-year zero coupon bonds) in 1 year? d. What is the price of a 5-year coupon bond making annual coupon payments of 2% and a par value of 1000 today? Is the bond trading above or below par? Why?e. What is the price of this bond next year (remember, it is then a 4-year coupon bond)? What is the rate of return on this bond over the next year?

Answers

Answer:

Check the explanation

Explanation:

As is observable in the first attached image below, the yield curve is upward sloping. According to the pure expectations hypothesis which states that current short-term interest rates are a reflection of long-term term interest rates, market participants should expect long-term interest rates to rise going forward.

(b) Implied one-year forward rate calculation:

[tex]1+f2 = [(1+y2)^(2)] / (1+y1)[/tex]

f2 = 1.0006%

[tex]f3 = [{(1+y3)^(3)} / {(1+y2)^(2)}] - 1[/tex]

f3 = 1.502% approximately

[tex]f4 = [{(1+y4)^(4)} / {(1+y3)^(3)}] - 1[/tex]

f4 = 2.004% approximately

[tex]f5 =[{(1+y5)^(5)} / {(1+y4)^(4)}] - 1[/tex]

f5 = 2.506% approximately.

As implied one-year forward rates are observed to be rising and there is no uncertainty about future spot rates, future interest rates are expected to rise.

(C) Kindly check the second attached image below for the solution to question c

(d) The bond's price would be calculated by summing the Present Values(PVs) of the bond's future cash flows (in the form of annual coupon payments and face value redemption). The discount rate, however, should be the spot rates from the yield curve instead of a single promised yield to maturity.

Let bond price be Pm

Therefore, Pm = 20 / 1.005 + 20 / (1.0075)^(2) + 20 / (1.01)^(3) + 20 / (1.0125)^(4) + 1020 / (1.015)^(5) = $ 1024.872 approximately.

The bond's market value is above its par value, thereby implying that the bond is selling at a premium. This happens whenever the bond's discount rate (or spot interest rates in this case) is below the bond's annual coupon rate.

January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 41,000 of its common shares at $9 each. The market price of common stock was $24 per share on December 31, 2021, and averaged $12 per share during the year then ended. There was no change in the 164,000 shares of outstanding common stock during the year. Net income for the year was $39,000. The number of shares to be used in computing diluted earnings per share for the quarter is:

Answers

Answer:

174,250 shares

Explanation:

The computation of the number of shares to be used in computing diluted earnings per share is shown below:

Proceeds from exercise of options (a)  $369,000  (41,000 shares × $9)

Used to repurchased for common stock (b) 30,750 shares (41,000 shares × $9 ÷ $12)

Number of shares for exercised (c)                           41,000 shares

Less: repurchased shares (d)                                    -30,750 shares

Diluted common shares {e = c - d}                             10,250 shares

Add: Common shares (f)                                             164,000 shares

Total number of shares for diluted earning per share 174,250 shares

We ignored the market price of common stock as it is not relevant.

The Kaufusi Company has the following budgeted sales: April May June July Credit sales..................................... $ 320,000 $ 300,000 $ 350,000 $ 400,000 Cash sales....................................... $ 70,000 $ 80,000 $ 90,000 $ 70,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on May 31 would be:

Answers

Answer: $242,000

Explanation:

Seeing as this is the balance on the 31st of May, it can be assumed that the 60% to be collected in May (being the month following April) from April Credit Sales has already been collected so only 10% remains.

For May, we can assume that the 30% has been collected leaving only 70% still to be collected on the 31st.

Calculating therefore,

April Credit Sales Due 31st of May = 320,000 * 10%

= $32,000

May Credit Sales due 31st of May = 300,000 * 70%

= $210,000

Total on the 31st of May is therefore,

= 32,000 + 210,000

= $242,000

The budgeted accounts receivable balance on May 31 would be $242,000.

In the market for lock washers, a perfectly competitive market, the current equilibrium price is $5 per box. Washer King, one of the many producers of washers, has a daily short-run total cost given by TC = 190 + 0.20Q + 0.0025Q2, where Q measures boxes of washers. Washer King's corresponding marginal cost is MC = 0.20 + 0.005Q. How many boxes of washers should Washer King produce per day to maximize profit?

Answers

Answer:

The number of boxes of washers Washer King should produce per day to maximize profit = 960 boxes.

And the corresponding maximum daily profit = $2,114

Explanation:

The daily, short-run total cost of producing Q boxes of the product is given as

TC = 190 + 0.20Q + 0.0025Q²

The unit price of the product = $5.

Total revenue = (Unit Price) × (Quantity sold) = 5Q

Profit = (Revenue) - (Total Cost)

Profit = 5Q - (190 + 0.20Q + 0.0025Q²)

Profit = P(Q) = -190 + 4.8Q - 0.0025Q²

To maximize the profits, we just obtain the point where the profit function reaches a Maximum.

At the maximum of a function, (dP/dQ) = 0 and (d²P/dQ²) < 0

Profit = P(Q) = -190 + 4.8Q - 0.0025Q²

(dP/dQ) = 4.8 - 0.005Q

At maximum point,

(dP/dQ) = 4.8 - 0.005Q = 0

Q = (4.8/0.005) = 960 boxes

(d²P/dQ²) = -0.005 < 0 (hence, showing that the this point corresponds to a maximum point truly)

Hence, the number of boxes of washers Washer King should produce per day to maximize profit = 960 boxes.

The corresponding maximum profit is then obtained from

P(960) = -190 + (4.8×960) - 0.0025(960²)

Maximum daily profit = $2,114

Hope this Helps!!!

Consider a market where the demand and supply for the good are described by the following equations: begin mathsize 14px style straight Q subscript straight D space equals space 225 space minus space 3 straight P end style and begin mathsize 14px style straight Q subscript straight S space equals space minus space 22.5 space plus space 1.5 straight P end style.

If the government implements a price ceiling of $45, this will result in a

A. surplus of 22.5 units.

B. a surplus of 45 units.

C. a shortage of 45 units.

D. a shortage of 22.5 units.

Answers

Answer:

The correct option is (c)a shortage of 45 units.

Explanation:

Solution

Given that:

Qd=225-3P

Qs=-22.5+1.5P

Then,

Set Qd=Qs for equilibrium

225-3P=-22.5+1.5P

4.5P=247.50

P=$55

Now

The  government forces a ceiling of $45, it is binding as it is lesser than the equilibrium price.

Thus,

Let calculate the demanded quantity and supplied quantity at a price of $45

Now,

Qd=225-3*45=90

Qs=-22.5+1.5*45=45

Shortage=Qd-Qs=90-45=45 units .

Therefore, there is a shortage of 45 units.

Extreme Builders constructs houses. The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home. During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour. Calculate the Extreme Builders' labor rate variance. a.$648,000 F b.$540,000 F c.$648,000 U d.$540,000 U

Answers

Answer:

Direct labor rate variance= $648,000 unfavorable

Explanation:

Giving the following information:

The standard labor rate is $25 per hour. During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour.

To calculate the direct  labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (25 - 28)*216,000

Direct labor rate variance= $648,000 unfavorable

At the end of the prior year, Atoka Industries reported the following account balances: Common Stock ($0.01 par value) $ 2,000 Additional Paid-in Capital 1,000,000 Retained Earnings 1,400,000 Treasury Stock 780,000 The treasury stock arose from a purchase of 10,000 shares of common stock for $78 per share. If the 10,000 treasury shares are issued for $50 per share in the current year, what journal entry must be prepared to record the transaction

Answers

Answer and Explanation:

According to the scenario,  journal entry of the given data are as follow:-

Journal Entry  

Cash A/c (10,000 ×$50)    Dr.   $500,000

Additional paid in capital A/c    $280,000

     To Treasury stock A/c(10,000  × $78)     $780,000

(Being the reissue of treasury shares is recorded)

For recording this we debited the cash as it increased the cash and debited the additional paid in capital as it reduced the stockholder equity and credited the treasury stock

Answer and Explanation:

The Journal entry is shown below:-

Cash Dr, $500,000

(10,000 × $50)

Additional Paid in Capital Dr, $280,000    

        To Treasury Stock $780,000

($10,000 × $78)

(Being treasury stock is recorded)

Therefore If the shares from treasury stock are reissued at a cost that is lower than its cost, so the balance is debited to the additional paid-in capital.

g On July 1, 2019, Sheffield Corp. issued 9% bonds in the face amount of $12400000, which mature on July 1, 2025. The bonds were issued for $11859948 to yield 10%, resulting in a bond discount of $540052. Sheffield uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2021, Sheffield's unamortized bond discount should be

Answers

Answer:

$393,063

Explanation:

The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.

Unamortized Discount is the discount balance which has not been expensed or discount balance for outstanding period of the bond to maturity.

Discount Balance = $540,052

Date   Interest Paid  Interest Expense  Amortization Book Value

7/1/19                                                                           11,859,948

6/30/20 1,116,000   1,185,995              69,995           11,929,943

6/30/21   1,116,000   1,192,994              76,994           12,006,937

Unamortized Discount = Total Discount - Discount amortized

Unamortized Discount = $540,052 - ($69,995 + $76,994)

Unamortized Discount = $393,063

Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $9,300 (that had cost $6,873) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company

Answers

Answer:

Dr Apr 08 Cash $8,928

Dr Credit Card Expense $372

Cr Sales $9300

Apr 08 Cost of goods sold $6,873

Merchandise inventory $6,873

Dr Apr 12 Accounts receivable- Continental $4,875

Dr Credit card expense $125

Cr Sales $5,000

Dr Apr 12 Cost of Goods Sold $3,240

Cr Merchandise Inventory $3,240

Explanation:

Levine CompanyJournal entries

Date General Journal Debit Credit

Dr Apr 08 Cash $8,928

Dr Credit Card Expense $372

(4%×9300)

Cr Sales $9300

Apr 08 Cost of goods sold $6,873

Merchandise inventory $6,873

Dr Apr 12 Accounts receivable- Continental $4,875

Dr Credit card expense $125

(2.5%×5000)

Cr Sales $5,000

Dr Apr 12 Cost of Goods Sold $3,240

Cr Merchandise Inventory $3,240

71. When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except a. recognize that there is an ethical issue in the decision. b. apply ethical theories to reasonable alternatives. c. publicize the options you rejected with your reasons. d. reflect on the outcome of the decision once it is made

Answers

Answer:

The Correct Option of the given scenario is "C - Publicize the options you rejected with your reasons".

Explanation:

While creating business selection it is ought to seek for the philosophies and integrities. However, don't create it public the explanations of captivating some choices as they are having dissimilarities in philosophies which might drawback your businesses.

Answer: c. publicize the options you rejected with your reasons.

Explanation:

Under the Profit Maximisation theory where ethical behaviour does not necessarily benefit the company and the corporate citizenship theory that describes just how a company contributes to society, all the above are methods applied execpt the publication of the options rejected with reasons.

This is because certain things need to remain confidential for the protection of individuals and reputations as well as to avoid scrutiny because a Company's methodology might not be the methodology that a number of people would subscribe to.

A local partnership is liquidating and is currently reporting the following capital balances: LO 15-1 LO 15-1 LO 15-3 LO 15-3 Barley, capital (50% share of all profits and losses) . . . . $ 44,000 Carter, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000 Desai, capital (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (24,000) Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive?

Answers

Answer:

Barley received $29,000 and carter received $23,000.  

Explanation:

According to the scenario, computation of the given data are as follow:-

Particular                   Barley ($) Carter ($) Desai ($)     Total($)  

Opening balance             44,000   32,000    -24,000  

Desai indicated loss in ratio(50:30=5:3)-15,000 -9,000 24,000  

Balance Remaining    29,000   23,000            0            52,000

Cash distribution of $52,000  -29,000  -23,000    0           -52,000

Balance                           0                 0            0            0

According to the analysis, Barley received $29,000 and carter received $23,000.  

The ability to think strategically is a critical element for any organization to compete successfully and build the necessary competitive advantage needed for sustained superior performance. Managers and business leaders will be asked to make critical business decisions that will determine the future of the organization. Discuss how the business simulation will contribute to the development of these skills. What value can a new employee with the ability to think strategically bring to an organization? How do you intend to develop these skills over the length of the class?

Answers

Answer:

Answer 1:

A business reenactment is a domain that demonstrates sensible serious circumstances to pioneers in a setting where they stand up to jobs and have introduction to the all display. Members settle on choice without genuine dangers, giving them an encounter of basic interdependencies, to implement best practices, and test the devices they can representative to increase their organization's key execution pointers.  

They are a magnificent instrument for incite instinct about cooperation’s among the factors that direct hierarchical presentation, additionally give a organized composite condition inside which pioneers can test, without chance and to comprehend cause-impact communications among factors. The bit of leeway with deference genuine world is they can attempt again in the event that they committed errors the first run through  

Answer 2:

Extraordinary worth. Think deliberately is a key ability so as to increment authoritative execution, this capacity give a significant device to bargain settle on choices process every day, on the grounds that individuals can envision impacts of their own decisions in a sensible degree. It is definitely an important condition for advancement of developing pioneers.  

Answer 3:

The thought is to manufacture huge mental models that fill in as a structure to effectively confront future circumstances.

You can repair your furnace for $500 and it will last 5 more years, but your heating bills will cost you about $1500 per year. Alternatively, a new furnace can be installed for $3000 that will reduce your annual heating bill to $1200. Suppose you sell the house in 5 years and receive an additional $1000 in the sales price of your home (salvage value) because of having a fairly new furnace. Should you replace it? Use a 5-year analysis period and a MARR of 5%

Answers

Answer:

By present value old furnace should not be replaced, since  the new furnace costs more.

Explanation:

Solution

For the old furnace

Present value = - 500 - 1500 = (1 +i)^n-1/i (1+i)n

= - 500-1500 * 1.05^⁵/0.05 * 1.05^⁵

= -$6994.215

Now,

For the new furnace

The present value = - 3000 - 1200 *  1.05^⁵ - 1/0.05 * 1.05^⁵ + 1000/ (1.05)⁵

= -$7411.845

Therefore, As the new furnace costs more by present value old furnace should not be replaced

Bramble Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $3.10 per pound) $18.60 Direct labor (4 hours at $10.00 per hour) $40.00 During the month of April, the company manufactures 190 units and incurs the following actual costs. Direct materials purchased and used (2,200 pounds) $7,260 Direct labor (770 hours) $7,623 Compute the total, price, and quantity variances for materials and labor. Total materials variance $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance $ Labor quantity variance $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT

Answers

Answer and Explanation:

a. The computation of the material price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= $7,260 × (2,200 pounds × $3.10 per pound)

= $440 unfavorable

b. The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $3.10 × (2,200 pounds - (190 units × 6 pounds))

= $3,286 unfavorable

c. Total material variance  

= Material price variance + material quantity variance

= $440 unfavorable + $3,286 unfavorable

= $3,726 unfavorable

d. The computation of the labor price variance is shown below:

= Actual Hours × (Actual price - Standard Price)  

= $7,623 -  (770 hours × $10)

= $77 favorable

e. The computation of the labor quantity variance is shown below:

= Standard Rate × (Actual Hours - Standard hours allowed for actual units)

= $10 × (770 hours - (190 units × 4 hours)

= $100 unfavorable

Total labor variance

= Labor rate variance + labor quantity variance

= $77 favorable + 100 unfavorable

= $23 unfavorable

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