Answer:
a. Current assets = $1,800,000
b. Shareholders' equity = $1,000,000
c. Noncurrent assets = $1,000,000
d. Long-term liabilities = $1,000,000
Explanation:
a. Current assets
Current liabilities = Inventories / (Current ratio - Acid-test ratio) = $840,000 / (2.25 - 1.2) = $800,000
Since Current assets / Current liabilities = 2.25 = Current ratio, therefore, we have:
Current assets = Current ratio * Current liabilities = 2.25 * $800,000 = $1,800,000
b. Shareholders' equity
Debt to equity ratio = Total liabilities / Shareholders' equity = 1.8
Total liabilities = (1.8 * Shareholders' equity)
Total assets = $2,800,000
Total assets = Total liabilities + Shareholders' equity ………….. (1)
Substituting all the relevant values into equation (1) and solve for Shareholders' equity, we have:
$2,800,000 = (1.8 * Shareholders' equity) + Shareholders' equity
$2,800,000 = (1.8 + 1) * Shareholders' equity
$2,800,000 = 2.8 * Shareholders' equity
Shareholders' equity = $2,800,000 / 2.8 = $1,000,000
c. Noncurrent assets
Noncurrent assets = Total assets - Current assets = $2,800,000 - $1,800,000 = $1,000,000
d. Long-term liabilities
Long-term liabilities = Total assets - Current liabilities - Shareholders' equity = $2,800,000 - $800,000 - $1,000,000 = $1,000,000
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,200. The division sales for the year were $963,800 and the variable costs were $477,000. The fixed costs of the division were $529,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:__________.
a. $275,200 increase
b. $486,800 decrease
c. $211,600 increase
d. $275,200 decrease
e. $486,800 increase
Answer:
d. $275,200 decrease
Explanation:
Calculation to determine what The impact on Granfield's operating income for eliminating this business segment would be:
Using this formula
Impact on operating income =Saving in relevant fixed cost -loss of Contribution margin of backpack Division
Let plug in the formula
Impact on operating income=($529,000*40%)-($963,800-$477,000)
Impact on operating income=$211,600-$486800
Impact on operating income=$275,200 decrease
Therefore The impact on Granfield's operating income for eliminating this business segment would be:$275,200 decrease
A money market security that has a par value of $10,000 sells for $8,924.70. Given that the security has a maturity of two years, what is the investor's required rate of return?
Answer:
The answer is "5%".
Explanation:
[tex]\to \$8,924.70 = \frac{10,000}{(1 + r )^2}\\\\\to \$8,924.70 (1+r)^2= 10,000\\\\\to (1+r)^2= \frac{10,000}{\$8,924.70}\\\\\to (1+r)^2= \frac{10,000}{\$8,924.70}\\\\\to (1+r)^2= 1.1204\\\\\to (1+r)= 1.05\\\\\to r= 1.05-1\\\\\to r=0.05\\\\\to r=5\%\\\\[/tex]
XYZ Co. uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. It based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $440,000, variable manufacturing overhead of $2.20 per machine-hour, and 50,000 machine-hours. The estimated total manufacturing overhead is closest to:
Answer:
the estimated total manufacturing overhead is $550,000
Explanation:
The computation of the estimated total manufacturing overhead is given below:
= Fixed manufacturing overhead + variable manufacturing overhead
= $440,000 + $2.20 × 50,000 machine hours
= $440,000 + $110,000
= $550,000
hence, the estimated total manufacturing overhead is $550,000
One reason IT is important is because video conferencing has become cheaper, quicker, more collaborative, and more efficient. Of what IT benefit is this an example
Answer:
Communication
Explanation:
Communication
This is simply defined as information exchange or simply say the sharing of thoughts, messages, or information, by speech, signals, writing, or behavior etc.
Communication Technology
This is simply an act or form of communication that involves the use of technical equipment.
Input devices
This are used to enter information into a communication technology system; it includes the keyboard, microphone, a television camera etc.
Output
This are used in getting information or messages out using communication systems devices such as TV, speakers, computer monitor, etc.
Information
This are said to be data that has been sorted and arranged with a particular mindset.
In communication, due to the internet and mobile technologies, we can communicate with anyone in the world and form relationships with people who are some distance away, rather than being limited to people within our physical vicinity. This has some great benefits for both work and home life.
Consider a Cournot duopoly with the following inverse demand function: P = 96 - 2Q1 - 2Q2, where Q1 and Q2 are quantities produced by firms 1 and 2, respectively. The firms' marginal cost are identical and given by MCi(Qi) = 2Qi, where i is either firm 1 or firm 2. Based on this information firm 1 and 2's reaction functions are:_____.
a. MR1(Q1, Q2) = 100-2Q1-Q2 and MR2(Q1, Q2) 100-Q1-2Q2.
b. MR1(Q1, Q2) = 100-4Q1-2Q2 and MR2(Q1, Q2) = 100 - 2Q1 - 402.
c. MR1(Q1, Q2) = 100 - 2Q1 - 4Q2 and MR2(Q1, Q2) = 100 - 4Q1 - 2Q2.
d. MR1(Q1, Q2) = 24.5 - 0.5Q2 and MR2(Q1, Q2) = 24.5 - 0.5Q1.
Two identical firms compete as a Cournot duopoly. The demand they face is P = 90-Q. The cost function for each firm is C(Q_i) = 6Qi. Each firm earns equilibrium profits of:_____.
Answer: See explanation
Explanation:
The revenue - firm 1 will be:
= P x Q1
= 100Q1 - 2Q1² -2Q1Q2
Then, marginal revenue MR1 will be:
= dR1/dQ1
= 100 - 4Q1 -2Q2
Similarly, the revenue for firm 2 will be:
= P x Q2
= 100Q2 - 2Q2² -2Q1Q2
Then, MR2 will be:
= 100 - 4Q2 - 2Q1
Therefore, MR1(Q1, Q2) = 100-4Q1-2Q2 and MR2(Q1, Q2) = 100 - 2Q1 - 402.
Option B is the correct answer.
P = 90 - Q
Q = Q1 + Q2
The revenue for firm 1 (R1) will be:
= PQ1
= 90Q1 - Q1² - Q2Q1
The marginal revenue MR1 will be:
= 90 - 2Q1 - Q2
The marginal cost MC is:
= dC/dQ
= 6
Since profit is maximized when MR = MC, this will be:
90 - 2Q1 - Q2 = 6
- 2Q1 - Q2 = 6 - 90
- 2Q1 - Q2 = - 84
2Q1 + Q2 = 84
3Q = 84
Q1 = Q2 = 28
Therefore,
P = 90-Q.
P = 90 - (Q1 + Q2)
P = 90 - (28 + 28)
P = 90 - 56
P = 34
Then, the equilibrium profit will be:
= Total revenue - Total cost
= (34 × 28) - (6 × 28)
= 952 - 168
= 784
A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 62,000 units to Department C. Also in Department B during the period, 16,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was:_____.a. 60,000 units.
b. 55,000 units.
c. 62,500 units.
d. 67,500 units.
e. 47,500 units.
Answer:
Total Equivalent units of production= 71,600 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production:
Units completed in the period= 62,000
Equivalent units in ending inventory WIP= (16,000*0.6)= 9,600
Total Equivalent units of production= 71,600 units
Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant. both the price elasticity and slope vary. the price elasticity varies, but the slope is constant. the slope varies, but the price elasticity is constant.
Answer:
the price elasticity varies, but the slope is constant
Explanation:
The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic
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
Price elasticity of demand = midpoint change in quantity demanded / midpoint 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.
Beta Company reported the following operating data for its baking division for the year: Sales $560,000 Contribution margin 308,000 Direct fixed costs 47,000 Average operating assets 230,000 How much is controllable margin for the year
Answer: $261000
Explanation:
Based on the information given in the question, the controllable margin for the year will be calculated thus:
Contribution margin = $308000
Less: Direct fixed cost = $47000
Controllable margin = $261000
Therefore, the controllable margin is $261000.
Ames Trading Co. has the following products in its ending inventory.Product Quantity Cost per Unit Market per UnitMountain bikes 11 $600 $550Skateboards 13 $350 $425Gliders 26 $800 $700Compute lower of cost or market for inventory applied separately to each product.
Answer:
Mountain Bikes
Market value is $550 and cost is $600.
Lower is market.
Inventory value is therefore:
= Quantity * Market
= 11 * 550
= $6,050
Skateboards
Market value is $425 and cost is $350.
Cost is lower.
Inventory value is:
= 13 * 350 cost
= $4,550
Gliders
Market value is $700 and cost is $800.
Inventory value is:
= 26 * 700 market value
= $18,200
The current account balance equals _______. A. net exports plus net foreign investment in the United States B. exports minus imports plus net interest and net transfers C. the capital and financial account balance minus the official settlements account balance D. net exports plus the official settlements balance
Answer:
a
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Current account = net export + net income + net transfers
Margas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was 810 frames. The actual supplies cost for the month was $7,090. The supplies cost in the flexible budget for May would be closest to:_____.a. $7,106.
b. $7,088.
c. $7,100.
d. $7,090.
Answer: c. $7,100
Explanation:
Supplies cost according to the flexible budget is to be calculated based on the actual level of activity.
The cost is:
= Fixed cost + (Variable cost * actual level of activity)
= 2,240 + (6 * 810)
= 2,240 + 4,860
= $7,100
The Paw Patrol Smartphone lets kids learn about colors, numbers, and music. It has four Paw Patrol characters for the game plus numbers and colors. Before developing the Smartphone, Paw Patrol researched the market to see if this Smartphone would face stiff competition. Which step of segmenting the market does this example represent
Answer:
Profiling and analysing segments
Explanation:
Segmentation is the division of people into certain groups based on shared characteristics.
For example, In demographic segmentation, people are placed into groups based on age, gender, ethnicity and other demographic factors
Stages of segmenting a market
Selecting a product category to study - the product whose market would be segmented is chosen Choosing a basis for segmentation Selecting segmentation descriptors Profiling and analyzing segmentsFrank decides that a social media campaign is the best way for him to attract new business to Slice of Life Pizza. After Frank identifies his strategies and goals, the next step in the campaign is
Answer: identify your target audience
Explanation:
Since Frank has identified his strategies and goals, then the next step in the campaign will be to identify the target audience.
The target audience refers to the consumers that are likely to attract new business to Slice of Life Pizza. This is vital for Frank to be able to reach out to more customers and make profit.
The ABC Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April $ 160,000 May $ 180,000 June $ 170,000 Budgeted cash collections in June would be:
Answer: $170500
Explanation:
Based on the information given in the question, the budgeted cash collections in June would be calculated thus:
= (45% × $160000) + (50% × $180000) + (5% × $170000)
= $72000 + $90000 + $8500
= $170500
Therefore, the budgeted cash collections in June would be $170500
Your income is $10,000 over the cutoff for the next lowest tax bracket. Your average tax rate is 10%. Your marginal tax rate is 25%. You contribute $3,000 to a traditional IRA and your contribution is fully deductible, should you decide to go that way. You decide, in fact, to make this a traditional IRA. How much did your contribution actually cost you, in after-tax dollars
Answer:
"$2,250" is the appropriate answer.
Explanation:
Given values are:
Before tax cost,
= $3000
Marginal tax rate,
= 25%
or,
= 0.25
The after tax cost of contribution will be:
= [tex]Before \ tax \ cost\times (1-Marginal \ tax \ rate)[/tex]
By putting the values, we get
= [tex]3000(1-25 \ percent)[/tex]
= [tex]3000(1-0.25)[/tex]
= [tex]3000\times 0.75[/tex]
= [tex]2250[/tex] ($)
Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company.A) $5 per share.B) $ per share.C) $0. per share.D) $6 per share.
Answer:
A) $5 per share
Explanation:
Calculation to determine the earnings per share of the company.
Using this formula
EPS=Stock price/P/E ratio
Let plug in the formula
EPS = 50/10
EPS= $5 per share
Therefore the earnings per share of the company will be $5 per share
Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $360. In each town, some people enjoy fireworks more than others. In the town of Bayport, each of the residents values the public good as follows:
Resident Value (Dollars)
Musashi 50
Rina 100
Sean 300
he total benefit of the fireworks display to the town of Bayport is $: ___________
Answer:
$450
Explanation:
The benefit an individual derives from an activity can be described as the total satisfaction or utility that individual derives from carrying out a particular activity. It is the value an individual derives from a particular activity
Benefit can be measured in dollars or in utils
the higher the value of the dollar or util, the higher the benefit the consumer derives from an activity
A rational person would weigh the cost of an activity to the benefit that would be derived from the activity. The individual would carry out the activity only if benefit outweigh the cost.
For example, in this question, the total benefit of fireworks display is 450. this is greater than the cost. So, the town would carry out the firework display
Total benefit is the sum of individual value individuals would derive from an activity.
total benefit = $50 + $100 + $300 = $450
Which of the following is a consumer right per the consumer bill of rights?
1. Right to know
2. Right to return
3. Right to profit
4. Right to sanity
Answer:
1. Right to know.
Explanation:
The Consumer Bill of Rights refers to certain rights that are given to customers in a business transaction. These set of rights are given to customers or consumers and are made so that consumers will have equal rights to be protected against any unfair or false claims.
Among the given set of rights, the right to know is a consumer right according to the bill of rights. This right is one of the four sets of original rights as set in the consumer bill of rights. The other three are the right to safety, to be heard, and to choose.
Thus, the correct answer is option 1.
Check all answers that apply. Based on the model output, we can say that both the size of the move (CuFt) and number of large furniture moved are important considerations when estimating the total number of labor hours required. We can make this claim because __________.'
Answer:
P-value for slope coefficient of the size of the mode CuFt is0.00
Explanation:
The slope coefficient is change in probability when all other independent variables are held constant. The output is 93.3 which is due to the variation in labor hours. These variations are due to large number of furniture moved in cubic feet.
MC Qu. 111 Brush Industries reports the following... Brush Industries reports the following information for May: Sales$955,000 Fixed cost of goods sold 111,000 Variable cost of goods sold 261,000 Fixed selling and administrative costs 111,000 Variable selling and administrative costs 136,000 Calculate the operating income for May under absorption costing.
Answer:
Particulars Amount
Sales $955,000
Less: Fixed cost of goods sold $111,000
Less: Variable cost of goods sold $261,000
Gross Profit $583,000
Less: Fixed selling & admin. costs $111,000
Less: Var. selling & admin. costs $136,000
Operating Income $336,000
The short-run effects of an increase in the saving rate include a higher level of productivity.
a. True
b. False
False
The short-run effects of an increase in the saving rate include a higher level of productivity, a higher growth rate of productivity, and a higher growth rate of income.
In what type of market transaction does the issuing corporation receive cash proceeds?
Answer:
In the primary market, companies issue new shares to investors in exchange for cash. The proceeds from such an offering are used to fund the business, make acquisitions.
Explanation:
A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real world, this government is quite certain that it can achieve the same price and quantity either way. It wants to choose the method that will pull in more government tax revenue. Is selling allowances better for revenues or is setting a pollution tax better, or will both raise exactly the same amount of revenue
Answer: Both will raise the same amount
Explanation:
The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.
Both methods would therefore yield the same amount if the government uses either of them.
In the world oil market, oil is supplied up to the point where: Select one: A. the marginal cost of the last barrel is at a maximum B. the marginal cost of the last barrel is the greatest distance from the price buyers are willing to pay for that last barrel C. the marginal cost of the last barrel is zero D. the marginal cost of the last barrel is just equal to the price buyers are willing to pay for that last barrel.
Answer:
D. the marginal cost of the last barrel is just equal to the price buyers are willing to pay for that last barrel.
Explanation:
In the case of the oil market that oil is to be supplied to the point where the marginal cost of the previous barrel should be equivalent to the price where the pruchaser want to pay for that previous barrel
So as per the given situation, the option d is correct
ANd, the rest of the options seems incorrect
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Cooking Canning Beginning work in process $0 $4,640 Materials 22,900 10,400 Labor 8,750 7,240 Overhead 32,000 27,300 Costs transferred in 55,000Journalize the April transactions.
Answer:
4/30
Dr Work in Process—Cooking $22,900
Dr Work in Process—Canning $10,400
Cr Raw Materials Inventory $33,300
4/30
Dr Work in Process—Cooking $8,750
Dr Work in Process—Canning $7,240
Factory Labor $15,990
4/30
Dr Work in Process—Cooking $32,000
Dr Work in Process—Canning $27,300
Cr Manufacturing Overhead $59,300
4/30
Dr Work in Process—Canning $55,000
Work in Process—Cooking $55,000
Explanation:
Preparation of the journal entries
4/30
Dr Work in Process—Cooking $22,900
Dr Work in Process—Canning $10,400
Cr Raw Materials Inventory $33,300
($22,900+$10,400)
4/30
Dr Work in Process—Cooking $8,750
Dr Work in Process—Canning $7,240
Factory Labor $15,990
($8750+$7,240)
4/30
Dr Work in Process—Cooking $32,000
Dr Work in Process—Canning $27,300
Cr Manufacturing Overhead $59,300
($32,000 +$27,300)
4/30
Dr Work in Process—Canning $55,000
Work in Process—Cooking $55,000
A company has free cash flow of $700 and cash flow to shareholders of $200. Interest expense for the year was $400. a.) What must be the net new borrowing, as reflected by the change in long-term debt
Answer:
the net new borrowing, as reflected by the change in long-term debt is $100
Explanation:
a. The calculation of the net new borrowing is given below:
Net new borrowing is
= cash inflow = cash outflow
= $700 - $200 - $400
= $700 - $600
= $100
Hence, the net new borrowing, as reflected by the change in long-term debt is $100
The gravity model offers a logical explanation for the fact that :________
A) trade between Asia and the U.S. has grown faster than NAFTA trade.
B) trade in services has grown faster than trade in goods.
C) trade in manufactures has grown faster than in agricultural products.
D) Intra-European Union trade exceeds international trade by the European Union.
E) the U.S. trades more with Western Europe than it does with Canada.
T/F If firms from country A undertake $20 billion of FDI in firms from country B in year 1, and another $20 billion in year 2, then we can say that in each of those two years, B receives annual FDI outflows of $20 billion, and A generates annual FDI inflows of $20 billion.
Answer: False
Explanation:
In both the first and second years, firms in country A undertook FDI projects of $20 billion in country B. This means that Country A had FDI outflows of $20 billion in those two years not inflows. Inflows are what happens when the FDI is coming into the country.
Country B on the other hand, was receiving money from country A. Country B therefore had FDI inflows of $20 billion in each of the two years and not outflows like Country A had.
These are selected account balances on December 31, 2020. Land (location of the office building) $97000 Land (held for future use) 152000 Corporate Office Building 675000 Inventory 182000 Equipment 457000 Office Furniture 135000 Accumulated Depreciation 427000 What is the total net amount of property, plant, and equipment that will appear on the balance sheet
Answer:
$937,000
Explanation:
Calculation to determine the total net amount of property, plant, and equipment that will appear on the balance sheet
Land (location of the office building) $97000
Add Office Building 675000
Add Equipment 457000
Add Office Furniture 135000
Less Accumulated Depreciation (427000 )
Total Net Amount $937,000
Therefore the total net amount of property, plant, and equipment that will appear on the balance sheet is $937,000
Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $42,400 and $24,000, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $29,300 in 2014 and $35,300 in 2015. Required:Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015.
Answer:
Amount of noncontrolling interest in consolidated income to be reported in 2014 = $2,718
Amount of noncontrolling interest in consolidated income to be reported in 2015 = $3,410
Explanation:
Percentage of the unsold inventory = One-fourth = 1 / 4 = 0.25, or 25%
Percentage of noncontrolling interest = 100% - 90% = 10%
Unrealized profit on inventory = Selling price of the merchandise * Percentage of the unsold inventory * (Markup / (100% + Markup)) ……………. (1)
Amount of noncontrolling interest in consolidated income to be reported = (Reported net income by Sloane - Unrealized profit on inventory) * Percentage of noncontrolling interest ……………. (2)
Using equation (1), we have:
Unrealized profit on inventory in 2014 = $42,400 * 25% * (25% / (100% + 25%)) = $2,120
Unrealized profit on inventory in 2015 = $24,000 * 25% * (25% / (100% + 25%)) = $1,200
Using equation (2), we have:
Amount of noncontrolling interest in consolidated income to be reported in 2014 = ($29,300 - $2,120) * 10% = $2,718
Amount of noncontrolling interest in consolidated income to be reported in 2015 = ($35,300 - $1,200) * 10% = $3,410
