The classical dichotomy and the neutrality of money

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.

Maria spends all of her money on paperback novels and beignets. In 2011 she earned $27.00 per hour, the price of a paperback novel was $9.00, and the price of a beignet was $3.00.

Which of the following give the nominal value of a variable?

1-The price of a beignet is $3.00 in 2011.

2-Maria's wage is $27.00 per hour in 2011.

3-The price of a beignet is 0.33 paperback novels in 2011.

Which of the following give the real value of a variable?

1-The price of a paperback novel is 3 beignets in 2011.

2-Maria's wage is 9 beignets per hour in 2011.

3-The price of a paperback novel is $9.00 in 2011.

Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Maria's wage has risen to $54.00 per hour. The price of a paperback novel is $18.00 and the price of a beignet is $6.00.

In 2016, the relative price of a paperback novel is _________

Between 2011 and 2016, the nominal value of Maria's wage (increases/decreases/remains the same) and the real value of her wage ____________

Monetary neutrality is the proposition that a change in the money supply ________ nominal variables and ______ real variables.

Answers

Answer 1

Answer:

1. Relative price = $3

2. Increases

3. affects , not affect

Explanation:

As per the data given in the question,

1) The relative price of a paperback novel in 2016 = Maria,s wage ÷ Price of a paperback novel

= $54÷$18

= $3

2) Between 2011 and 2016, the nominal value increases and the real value of Maria's wage remains the same.

3)Monetary neutrality is proposition that the change in the money supply affects the nominal variables but it does not affect the real variables.


Related Questions

niversal Studios sold the Mamma​ Mia! DVD around the world. Universal charged​ $21.40 in Canada and​ $32 in Japanlong dashmore than the​ $20 it charged in the United States. Assume​ Universal's marginal cost of production​ (m) is ​$1.20. Determine what the elasticities of demand must be in Canada and in Japan if Universal is profit maximizingLOADING.... The elasticity of demand in Canada must be epsilon Subscript Upper Cequals nothing. ​(Enter a numeric response using a real

Answers

Answer:

Explanation:

Lerner Index = -1 / Elasticity of demand = (P - MC) / P

(1) Canada:

- 1 / Ec = (21.4 - 1.20) / 21.4

- 1 / Ec = 20.2 / 21.4

- 1 / Ec = 0.9344

Ec = -1 / 0.9344

Ec = - 1.059

(2) Japan:

Lerner Index = -1 / Elasticity of demand = (P - MC) / P

- 1 / Ej = (32 - 1.2) / 32

- 1 / Ej = 30.8 / 32

- 1 / Ej = 0.9625

Ej = -1 / 0.9625

Ej = - 1.039

A financier plans to invest up to $500,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas Project B yields a return of 17% on the investment of y dollars. Because the investment in Project B is riskier than the investment in Project A, she has decided that the investment in Project B should not exceed 40% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment

Answers

Answer:

She should invest $300,000 in Project A, and $200,000 in Project B.

Explanation:

Solution

Since Project B yields a higher return, she should invest as much money as possible in it, which is 40% of the total investment  or

or (0.40)($500,000) = $200,000

so

The remaining $500,000 - $200,000 = $300,000 should be invested in Project A.

Therefore, she should invest $300,000 in Project A, and $200,000 in Project B.

Warren Buffet opposes stock splits to lower the share price because he believes:________.
a. lower share price will encourage other companies to try to take over the company from existing shareholders.
b. lower stock price encourages short term investing, whereas he is looking for long-term investors.
c. stock splits encourage long-term investing, which is detrimental to his firm's investment policy.
d. lower share price indicates poor growth prospects..

Answers

Answer:. b. lower stock price encourages short term investing, whereas he is looking for long-term investors.

Explanation:

Warren Buffet has stated that he does not want to split Berkshire Hathaway's stock because he believes that it would attract short term investors whereas he is looking for long term investors. He believes that a stock being split makes it susceptible to investors who just want to buy it for the meantime, wait for it to appreciate a bit and then sell. He however prefers Companies with a long term potential so he prefers people investing for the long run.

Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ellie's taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ellie's QBI deduction for 2019

Answers

Answer:

QBI deduction for 2019 is   $148,000

Explanation:

Description                                                            Amount

Taxable income before QBI deduction

exceed $207,500 threshold.

Capital investment limit is considered

QBI deduction is lesser of:

1) 20% of qualified business income                     $180,000

($900,00 × 20%)

or Greater of

2) 50% 0f W-2 wages                                             $150,000

($300,000 × 50%)

or

25% 0f W-2 wages + 2.5% of unadjustment

basis pf qualified property

($300,000 × 25%) + ($300,000 × 2.5%)                      $75,750

3)Not more than 20% of modified taxable income

($740,000 × 20%)                                                          $148,000

Therefore, QBI deduction for 2019   is   $148,000

2021 2020 Income Statement Information Sales revenue $ 8,400,000 $ 7,900,000 Cost of goods sold 5,535,600 5,400,000 Net income 332,500 198,000 Balance Sheet Information Current assets $ 1,550,000 $ 1,450,000 Long-term assets 2,150,000 1,850,000 Total assets $ 3,700,000 $ 3,300,000 Current liabilities $ 1,150,000 $ 850,000 Long-term liabilities 1,550,000 1,550,000 Common stock 750,000 750,000 Retained earnings 250,000 150,000 Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000 Required: 1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders in 2021.

Answers

Answer:

2021 2020 Income Statement Information

Sales revenue $ 8,400,000 $ 7,900,000

Cost of goods sold 5,535,600 5,400,000

Net income 332,500 198,000

Balance Sheet Information

Current assets $ 1,550,000 $ 1,450,000

Long-term assets 2,150,000 1,850,000

Total assets $ 3,700,000 $ 3,300,000

Current liabilities $ 1,150,000 $ 850,000

Long-term liabilities 1,550,000 1,550,000

Common stock 750,000 750,000

Retained earnings 250,000 150,000

Total liabilities and stockholders' equity $ 3,700,000 $ 3,300,000

1.

Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)

The four main profitability ratios are:

gross profit margin = (revenue - COGS) / revenue = ($8,400,000 - $5,535,600) / $8,400,000 = 0.341 or 34.1%net profit margin = net profit / revenue = $332,500 / $8,400,000 = 0.03958 or 3.96%return on assets = net income / average total assets = $332,500 / [($3,700,000 + $3,300,000)/2] = $332,500 / $3,500,000 = 0.095 or 9.5%return on equity = net income / shareholders equity = $332,500 / $1,000,000 = 0.3325 or 33.25%

2.

Determine the amount of dividends paid to shareholders in 2021.

retained earnings 2021 - retained earnings 2020 = net income - dividends

$250,000 - $150,000 = $332,500 - dividends

$100,000 + dividends = $332,500

dividends = $332,500 - $100,000 = $232,500

As marketing tools, how do blogs benefit companies? A. Demographic information about customers can be easily discovered. B. Blogs can offer a fresh, original, personal, and cheap way to enter into consumer conversations. C. Blogs are online selling platforms for people located in hard-to-reach places. D. Blogs provide companies with a platform to help portray wider merchandise. E. Blogs help reach a wider audience compared to other online direct marketing tools.

Answers

Answer:

The correct answer to the following question will be Option B.

Explanation:

A blog seems to be a new website where items are frequently published being presented in reverse order, can give a new, initial, personal as well as inexpensive chance of engaging in conducting this survey.The benefit of utilizing a company blog though is that the content provides faith to your clients or clients to support you as well as your organization as such a professional in your specialized subject or area.

The other choices have no relation to the given circumstance. So choice B seems to be the perfect solution to that.

Gratuities: A customer has a large sailing yacht on a vessel that your company will be discharging. The customer is present and is watching the off-loading operation. The five stevedores you manage pull off a very tricky maneuver, safely transferring the yacht to the trailer. The customer is elated, and reaches into his pocket, pulling out a big wad of $50 bills. What do you do?

Answers

Answer:

The answer is "Shifting".

Explanation:

Some information, that is choices is missing in the question so that the correct option can be identified as follows:

We assume, that the company is doing, as per the given scenario, it set out from the Query, the Market of Packers, and adjusting operation involving shifts to one position of industrial vehicles.

Whitmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,200 units in February and 4,700 units in March. Required: Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round "labor-hours per unit"

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Each unit of output requires 0.07 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 4,200 units in February and 4,700 units in March.

Direct labor budget of February:

Direct labor hours= 4,200*0.07= 294

Direct labor cost= 294*9= $2,646

Direct labor budget of March:

Direct labor hours= 4,700*0.07= 329

Direct labor cost= 329*9= $2,961

Which of the following statements is correct with respect to inventories? The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. It is generally good business management to sell the most recently acquired goods first "Under FIFO, the ending inventory is based on the latest units purchased." FIFO seldom coincides with the actual physical flow of inventory.

Answers

Answer:

Under FIFO, the ending inventory is based on the latest units purchased.

Explanation:

First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.

On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.

In January 2020, Sunland Company, a newly formed company, issued 10300 shares of its $8 par common stock for $13 per share. On July 1, 2020, Sunland Company reacquired 1030 shares of its outstanding stock for $10 per share. The acquisition of these treasury shares decreased total stockholders' equity. increased total stockholders' equity. did not change total stockholders' equity. decreased the number of issued shares.

Answers

Answer:

The correct option is the acquisition of these treasury shares decreased total stockholders' equity.

Explanation:

Initially the total stockholders' equity is $133,900 ($13*10,300) which comprised of $82,400  common stock ($8*10,300) $51,500 paid in capital in capital in excess of par value.

By repurchasing 1,030 treasury stock at $10,the total stockholders' equity decrease by $10,300,which leaves a balance of $123,600 ($133,900-$10,300).

In other words,the first option is the correct choice of answer

The economy is in equilibrium, TP = TE. Then, autonomous consumption rises. As a result, __________ rises, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of goods and services they produce. Group of answer choices consumption; TE; downward; fall; increase consumption; TE; upward; fall; increase consumption; TE; upward; rise; decrease investment; TE; upward; fall; increase investment; TP; leftward; fall; increase

Answers

Explanation:

The economy is in equilibrium, TP = TE. That is total production is equal to total production.

Then, autonomous consumption rises. As a result, consumption rises, the TE(total expenditure) curve shifts upwards, inventory levels unexpectedly falls, and business firms increases the quantity of goods and services they produce.

Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(BRL) to grow the corn and convert it to ethanol. RDS doesn't have BRL, so they must use the futures market to acquire the currency. If 1 BRL/USD futures contract is for 100,000 reals What is the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery.

Answers

Answer:

The answer is 5000 future contracts

Explanation:

Solution

Given that:

Royal Dutch buys ethanol fuel from Brazilian energy company

Nowm,

The Required coverage = 500,000,000

The BRL/USD futures contract size = 100,000

Number of contracts required = 500,000,000/100,000

So,

= 500,000,000/100,000  = 5000

Therefore, the optimal number of BRL/USD futures contracts for Shell to take to receive the entire amount of Real at delivery is 5000

Which of the following are considered to be benefits of international trade? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Higher prices for domestic firms in industries with the highest level of imports unanswered More jobs in industries with a significant number of imports unanswered The ability to purchase goods produced abroad at lower prices than the domestic good unanswered Access to new resources that are not available domestically unanswered The ability to purchase new products that are not produced domestically

Answers

Answer:

1. Access to new resources that are not available domestically.

2. The ability to purchase new products that are not produced domestically.

3. The ability to purchase goods produced abroad at lower prices than the domestic good.

Explanation:

International trade involves the economic exchange or transactions of capital, goods and services between countries, mainly over international boundaries as a result of want or need by the consumers.

Examples of such goods are crude oil, clothing, electronic gadgets etc.

International trade can be classified into three categories namely;

- Import trade.

- Export trade.

- Entrepot trade.

The International Trade Organization now known as the World Trade Organization which was founded in 1994 is focused on efficiently lowering the cost of alternatives, creating access to resources and increased diversity of choice for consumers.

Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units): Direct materials $ 26 Direct labor 53 Variable overhead 21 Fixed overhead 49 Total $ 149 Trailblazers has offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $38,500. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

Answers

Answer and Explanation:

The preparation of the  total differential cost schedule is presented below

                     Schedule showing statement of total differential cost

Particulars Make the wheels Buy from trailblazers Differential cost

Offer of trailblazer                        $220,000             $220,000 Higher

                                                      (2000 × $110)

Material cost     $52,000                                          $52,000 Lower

                       ($26 × 2000)

Labor cost       $106,000                                            $106,000 Lower

                        ($53 × 2000)

Variable overhead   $42000                                    $42,000 Lower

                          ($21 × 2000)

Fixed overhead  $98000                 $59,500        $38,500     Lower

                       ($49 × 2000)            ($98,000 -$38,500)

Total cost $298,000      $279,500             ($18,500) Lower

By adding the total cost we can get the making cost, buying cost and differential cost

Never Forget Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $320,000. At the time of the purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.03 million. What amount should be used as the initial cash flow for this project?

Answers

Answer:

The   amount that  should be used as the initial cash flow for this project is $1,350,000

Explanation:

The amount to be used as the initial cash flow for the project comprises of estimated building cost of $1.03 million and the market worth of the lot now.

The cost six years ago of $278,000,the cost of leveling as well as the cost of installing the storm drains were long ago time and are not relevant now.

In a nutshell the cost of the new project is $1,350,000($1,030,000+$320,0000)

Company A sells paper coffee cups to all Caribou Coffee locations in the US. Company B sells dinner plates to Applebee’s. Company A charges $1 for a pack of 100 cups and Company B charges $3 for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.

Answers

Answer:

Company A and Company B

Determination of annual revenue:

a) The information needed to determine which company has higher annual revenue include:

i) The annual quantities of packs of paper coffee cups sold to the Caribou Coffee locations in the US for a number of years.

ii) The annual quantities of dinner plates sold to Applebee's for the same years as above.

b) The annual revenues can be calculated by multiplying the price for a pack of 100 cups by the annual quantity sold.

Explanation:

Revenue is a function of price and quantity sold.  The price is unit selling price and the quantity depends on the period for which revenue is being computed.

Revenue is the earnings from the sale of goods and services.  The excess of revenue over cost of sales gives the gross profit, from which expenses would be deducted to arrive at net income after adding other incomes from non-operational activities.

Suppose Mr. Lane just bought a share of BlueWind Co., a renewable energy startup. BlueWind promises to pay Mr. Lane $18 in dividends for one year and then the firm will shut down. Suppose that the liquidation value of the share is $3, and the rate of time preference is 5%. Then, according to the single-period dividend discount model, the present value of the cash payment received by Mr. Lane in one year would be

Answers

Answer:

The present value of the cash payment is $20

Explanation:

The present value of cash payment receivable by Mr Lane in one year's time is the today's equivalent amount of the dividend of $18 as well as the liquidation value of $3.

The present value is the total cash inflows multiplied by the discount factor

discount factor=1/(1+r)^n

where is the rate of time preference of 5%'

n is 1 i.e in one year's time

total cash inflows=$18+$3=$21

discount factor =1/(1+5%)^1=0.95238

present value of cash payment=0.95238*$21=$20

Barbara's Bakery purchased three new 7-year assets during the current year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current year

Answers

Answer:

Depreciation in Current year is $14,939

Explanation:

Answer:

I think it is 4748. If it asks second year, it will be 16072.

Explanation:

Furnishings...in April, second quarter:

15,000x17.85%=2677.5

Equipment...in July, third quarter:

6,000x10.71%=642.6

Appliances...in November, fourth quarter

40,000x3.57%=1428

Total: 2677.5+642.6+1428=4748

Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded and paid wages expense of $120,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $20,000. Sold a long-term investment (cost $8,000) for cash of $6,000. Recorded cash sales of $800,000. Bought inventory for cash of $320,000. Acquired an investment in Zynga stock for cash of $42,000. Converted bonds payable to common stock in the amount of $1,000,000. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities?

Answers

Answer:

-$210,000

Explanation:

Issued Common Stock at par for Cash $250,000

Less:

Declared and paid a cash dividend $20,000

Repayment of 6-year note payable $440,000

Net Cash provided by Financing Activities ($210,000)

Job 397 was recently completed. The following data have been recorded on its job cost sheet. Direct materials $59,400 Direct labor-hours 1,254 DLHs Direct labor wage rate $11 per DLH Number of units completed 3,300 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $37 per direct labor-hour. Required: What's the unit product cost that would appear on the job cost sheet for this job

Answers

Answer:

$36.24

Explanation:

The computation of unit product cost is shown below:-

Unit product cost = Direct material + Direct labor + Manufacturing overhead) ÷ Unit completed

= ($59,400 + (1254 × $11) + (1254 × $37)) ÷ 3,300

= ($59,400 + $13,794 + $46,398) ÷ 3,300

= $119,592 ÷ 3,300

= $36.24

Therefore for computing the units product cost we simply applied the above formula.

Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first two years and $30,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine.Periods Present Valueof $1 at 10% Present Value of anAnnuity of $1 at 10%1 0.9091 0.90912 0.8264 1.73553 0.7514 2.48694 0.6830 3.1699

Answers

Answer:

NPV = $23,773.65

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-80,000

Cash flow each year for 1 and 2 = $35,000

Cash flow each year for 3 and 4 = $30,000

I = 10%

NPV = $23,773.65

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000? The market rate of interest is the contract rate of interest. Therefore, inventors wi

Answers

Answer and Explanation:

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

Total Years = 5, semiannually = 5 × 2 = 10

Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%  

Journal Entries

On Jan 1

Cash A/c           Dr. $9,594,415

Discount on bonds payable A/c        Dr. $405,585

      To Bonds payable A/c          $10,000,000

(Being the issuance of bond payable is recorded)

Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585

2).

On Jun

Interest expenses A/c             Dr. $390,559

Discount on bonds payable A/c($405,585 ÷10)           Dr.40,559

 To Cash A/c($10,000,0000 × 3.5%)     $350,000

(Being the payment of first semiannual interest is recorded)

3).  

On Dec 31

Interest expenses A/c              Dr. $390,559

Discount on bonds payable A/c($405,585*10/100)     Dr.$40,559

 To Cash A/c($10,000,000*3.5/100)      $350,000

(Being the payment of second semiannual interest is recorded)

b). Bond Interest Expense Amount for First Year

= Interest Expenses + Amortized Discount

= $700,000 + $81,117

= $781,117

Interest expenses = $350,000 + $350,000 = $700,000

Amortized Discount = $40,559 + $40,559 = $81,117

c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.  

Milton Friedman argues that __________.
O corporations today should adopt a broader view of their social responsibilities than they have in the past.
O corporate officials have a social responsibility that goes beyond serving the interests of their stockholders.
O strict governmental controls are necessary if society is to maximize its overall economic well-being.
O a business's only social responsibility is to maximize profits within the rules of the game.

Answers

Answer:

Milton Friedman argues that a business's only social responsibility is to maximize profits within the rules of the game.

Explanation:

Milton Friedman is known to hold an opposing view when compared to that of John Keynes about economic theory.

Whereas Milton Friedman believes that the utmost responsibility of any company is to the shareholders, the Keynesian are more consumer focused.

Milton Friedman believes strongly in free capitalism and as a result does not advocate for any company offering corporate social responsibility to the society or public.

Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses

Answers

Answer:

Option C                                        

Explanation:

In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.

Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.

Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.

Answers

Answer:

he35

Explanation:

h

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June 30. The budgeted cost of goods sold for June would be

Answers

Answer:

The budgeted cost of goods sold for June would be $ 13,320,000

Explanation:

Budgeted cost per unit = $30

Sales budget = 370,000 units

Less: Beginning inventory = 86,000 units

Add: Ending inventory = 160,000 units

Therefore budgeted cost of goods sold for June = (370,000 - 86,000 + 160,000) × $30

= 444,000 × $30

= $13,320,000

A well-known financial writer argues that he can earn 148 percent per year buying wine by the case. Specifically, he assumes that he will consume one $12 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $12 per week or buy a case of 12 bottles today. If he buys the case, he receives a 9 percent discount and, by doing so, earns the 148 percent. Assume he buys the wine and consumes the first bottle today. Calculate the EAR.

Answers

Answer:

EAR = 148%

Explanation:

calculating the EAR ( applying the formula for present value of annuity )

cost of case = 12 * 12 * ( 1 - 0.09 ) = 131.04

Pv   =  131.04

cost per case =  $12

no of weeks = 12 weeks

rate of the wine per ( IRR ) = IRR(57;56;55;;;;1)=  1.76319

rate of the wine per week = 1.76319%

therefore EAR = ( 1 + 0.0176319) ^52 - 1 = 148.15% ≈ 148%

(Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate of his deceased uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000 and the rate of return is 12 percent per year, how much of the $8,000 must James deposit now to have the $5,000 in five years

Answers

Answer:

  $2837.13

Explanation:

The account value is multiplied by 1 +12% = 1.12 each year, so at the end of 5 years, it will have been multiplied by 1.12^5. For some investment P, we want ...

  5000 = P×1.12^5

  5000/1.12^5 = P ≈ $2837.13

James must deposit about $2837.13 now to have the required amount in 5 years.

A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of . The acceptance sampling procedure uses randomly selected crystals. a. Construct operating characteristic curves for acceptance criteria of , , and (to 4 decimals). b. If is and , what are the producer's and consumer's risks for each sampling plan in part (a) (to 4 decimals)? c At Producer's Risk At Consumer's Risk

Answers

Answer:

The curve and calculation are attached below

Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per bag. She observes that every hour, 4 people each buy one bag of pistachios and 2 people each buy one bag of almonds. Having surveyed them, she learns that 2 of the pistachio buyers would be willing to pay $2 for the bag of almonds while the other two would only be willing to pay $1. Both almond buyers would be willing pay $5 for the bag of pistachios. Suppose Peggy decides to sell a bundle containing one bag of pistachios and one bag of almonds in addition to selling them separately. What price should she charge for the bundle in order to maximize revenue?

Answers

Answer:

The price she should charge for the bundle in order to maximize profit is 9

Explanation:

Solution

The total pistachios sold = 7 * 2 =14

The total almonds sold is = 4*1 = 4

So,

The total of both pistachios and almonds = 14 + 4 + 18

Thus,

we solve for getting average of the two which is:

Getting the average of the two in the bundle = 18/2

=9

Therefore p =9

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