True or False: The modern view of the Phillips curve indicates that to keep the unemployment rate low, policymakers should aggressively fight inflation to rapidly lower the inflation rate.

Answers

Answer 1

Answer:

False

Explanation:

False, the given statement is false because the Philips curve shows the inverse relationship between the inflation rate and unemployment. If the curve represents the inflation on the verticle axis and unemployment on the horizontal axis, then we can see that if the inflation rises, then unemployment falls. However, if inflation falls, then unemployment rises. Therefore, if the government wants to keep the unemployment low then it should fight with inflation.


Related Questions

You notice that​ Coca-Cola has a stock price of $41.86 and EPS of $1.88. Its competitor PepsiCo has EPS of $3.65. ​But, Jones​ Soda, a small batch​ Seattle-based soda producer has a​ P/E ratio of 34.2. Based on this​ information, what is one estimate of the value of a share of PepsiCo​ stock?

Answers

Answer:

Value of share of Pepsi Co. stock = $82

Explanation:

Stock price of Coca-cola = $41.86

EPS = $1.88

P/E ratio = MPS / EPS

P/E ratio = $41.86 / 1.88

P/E ratio = 22.27

Jones soda P/E ratio = 34.2

Pepsi Co stock EPS = $3.65

Value of share of Pepsi Co. stock = EPS * P/E ratio

Value of share of Pepsi Co. stock = $3.65 * 22.27

Value of share of Pepsi Co. stock = $81.2855

Value of share of Pepsi Co. stock = $82

Tyler Company applies manufacturing overhead to production at the rate of $4.9 per direct labor hour and ended August with $12,900 underapplied overhead. Actual manufacturing overhead incurred for August amounted to $110,410.
How many direct labor hours did Tyler Company incur during August?

Answers

Answer: 19,900 hours

Explanation:

Direct Labor hours = Applied Manufacturing Overhead/ Applied Overhead rate per hour

Applied Manufacturing Overhead

When the overhead is said to be under-applied, the Applied overhead is less than the Actual Overhead.

To find the Applied overhead therefore;

= Actual Overhead - Under-applied amount

= 110,410 - 12,900

= $97,510

Direct Labor hours = Applied Manufacturing Overhead/ Applied Overhead rate per hour

= 97,510/4.9

= 19,900 hours

Just Born found that the improvement process emphasized in the management leadership program saved the company millions of dollars. This is an example of a(n)

Answers

Answer: Results outcome

Explanation:

Just Born found that the improvement process emphasized in the management leadership program saved the company millions of dollars. This is an example of a results outcome.

This shows that the improvement process emphasized in the management leadership program brought about a positive outcome.

You can spend $150 on either a new Kindle or a new pair of boots. If you choose to buy the new kindle, the economic cost of it is:

Answers

Answer:

$300

Explanation:

The economic cost is the sum of implicit cost and explicit cost.The implicit cost is the cost by implication, which is the cost of alternative forgone.

The explicit cost is the actual cost requiring actual cash flow in settling it.

Economic cost=cost of new kindle+cost of alternative forgone(new pair of boots)

Economic cost=$150+$150

The explicit cost is also the cost incurred from accounting point of view

Statement of retained earnings.  Use the data from the following financial statements in the popup​ window,
LOADING...
Partial Income Statement Year Ending 2014
Sales revenue
$350,200
Cost of goods sold
$141,800
Fixed costs
$42,900
Selling, general, and administrative expenses
$28,000
Depreciation
$46,200
Partial Balance Sheet 12/31/2013
ASSETS
LIABILITIES
Cash
$16,000
Notes payable
$14,000
Accounts receivable
$27,800
Accounts payable
$19,100
Inventories
$48,000
Long-term debt
$189,900
Fixed assets
$368,000
OWNERS' EQUITY
Accumulated depreciation (-)
$140,200
Retained earnings
Intangible assets
$82,000
Common stock
$131,900
Partial Balance Sheet 12/31/2014
ASSETS
LIABILITIES
Cash
$26,200
Notes payable
$11,900
Accounts receivable
$18,800
Accounts payable
$24,100
Inventories
$53,200
Long-term debt
$161,800
Fixed assets
$447,800
OWNERS' EQUITY
Accumulated depreciation (-)
Retained earnings
Intangible assets
$82,200
Common stock
$181,900
. The company paid interest expense of
$ 18 comma 700$18,700
for 2014 and had an overall tax rate of
40 %40%
for 2014. Complete the statement of retained earnings for​2014, and determine the dividends paid last year.
The distributed earnings is
​$nothing.
​(Round to the nearest​ dollar.)
Complete the statement of retained​ earnings:  ​(Round to the nearest​ dollar.)
Statement of Retained Earnings
Year Ending December 31, 2014
Beginning balance
$
Add net income
$
Subtract dividends
$
Ending balance
$

Answers

beginning balance: $350,200
add net income: $467,987
subtract dividend: $110,109
ending balance: ^^^^^^^
$110,109 is your answer

Suppose when the price of coffee beans goes from $1 to $1.20 per pound, production increases from 90 million pounds of coffee beans to 110 million pounds per year. Using the mid-point method, the percentage change in quantity supplied is: Multiple Choice 20 percent 18 percent 0.6 6.0

Answers

Answer: 20%

Explanation:

Using the midpoint formula, the denominator is an average of the beginning and ending figures;

= [tex]\frac{Q2 - Q1}{Q2 + Q1 /2 } * 100[/tex]

= [tex]\frac{110 - 90}{(110 + 90)/2} * 100[/tex]

= [tex]\frac{20}{100} * 100[/tex]

= 20%

In an attempt to bring about a change in the organization, what do you think might happen to The Learning Focus if Nemeroff fired all the existing writers and replaced them with new writers

Answers

Answer:

If all existing writers are replaced with new writers there could be a number of issues as the existing writers had experience and were use to of the type of writing required, they understand the nature of the reader. The new writers might fail to satisfy the old readers as they will be unaware of the taste the readers want and like to read. If learning focus Nemeroff fired all the existing writers the above described issues may appear.

Explanation:

If all existing writers are replaced with new writers there could be a number of issues as the existing writers had experience and were use to of the type of writing required, they understand the nature of the reader. The new writers might fail to satisfy the old readers as they will be unaware of the taste the readers want and like to read. If learning focus Nemeroff fired all the existing writers the above described issues may appear.

whatis the general termfor resources used by a business to produce good or services referred to as

Answers

Answer:

Factors of Production

If I currently sell 10,000 units, and my use of Formula 1 indicates that I will need to sell 500 additional units to justify my suggested change to the marketing mix, what percentage of sales does that represent

Answers

Answer:

It represents a 5% change to the marketing mix.

Explanation:

The change = 500/10,000 x 100 = 5%.

Company A's change in a variable can be compared with another index, by expressing the change (addition) as a percentage of the index.  For instance, the sale of 10,000 units is an index.  The additional 500 units that is needed to be sold represent the change.  In percentage terms, the change can be divided by the index and then multiplied by 100.

Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to:

Answers

Answer: credit to Accounts Receivable

Explanation:

Accounts Receivable is the payment that a particular company will get from the customers who have bought the company's product or services on credit.

Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to account receivables.

Write a detailed note on Manufacturing Process types and Service process types in process design?

Answers

Answer:

Each of the process are used to the crosses organizational borders.

Explanation:

Process structure of manufacturing:

Job process: It is highly adaptable, scaled operation and structured around particular events. Batch process: It most common used in industries. It is small to large batches. Line process: It is the repetitive process and have modular production with large quantity. Continuous flow chart: It is product focused process. It processed only one item at a time.

Process design: There are three major process of design

Professional service designMass service designService shop design

Improvements in labor​ productivity: A. affect the level of​ wages, but do not affect the rate of economic growth. B. affect the level of​ profit, but do not affect the rate of economic growth. C. contribute to economic growth. D. hinder economic​ growth, because they cause unemployment.

Answers

Answer:

C. contribute to economic growth

Explanation:

Economic growth is an increase in the the production of  goods and services produced in an economy.

Improvements in labor​ productivity increases the output of labour and as a result contributes to economic growth.

The FI Corporation’s dividends per share are expected to grow indefinitely by 5% per year. a. If this year’s year-end dividend is $8 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? b. If the expected earnings per share are $12, what is the implied value of the ROE on future investment opportunities? c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)?

Answers

Answer:

a)

P₀ = Div₁ / (Re - g)

P₀ = current stock price = ?Div₁ = next dividend = $8Re = equity cost = 10%g = constant growth rate = 5%

P₀ = $8 / (10% - 5%) = $8 / 5% = $160

b)

EPS = $12

Return on equity (ROE) = g / b

b = retention rate = 1 - payout ratio = 1 - ($8/$12) = 0.333

g = 5%

ROE = 5% / 0.333 = 15%

c)

Present value of growth opportunity (PVGO) = P₀ - EPS/Re

P₀ = $160EPS = $12Re = 10%

PVGO = $160 - $12/10% = $160 - $120 = $40 per share

Presence indicators _____.

a. are small digital badges that people can embed in emails and on websites to share their contact information and social affiliations.
b. are visual elements used to change the aesthetic of a web page.
c. are things that others create we feel are worth redistributing to our social networks.
d. are an option to have one's profile reflected back to them from the perspective of others.
e. enable users to project an identity more vividly to others within a community

Answers

Answer: enable users to project an identity more vividly to others within a community.

Explanation:

The small digital badges that people can embed in emails and on websites to share their contact information and social affiliations are referred to as identity cards.

Skin/themes are the visual elements that are used to change the aesthetic of a web page.

Identity reflectors are option to have one's profile reflected back to them from the perspective of others.

Presence indicator allow users to project an identity more vividly to others within a community.

A firm has a profit margin of 5.1 percent, a total asset turnover of 1.84, and a return on equity of 16.2 percent. What is the debt-equity ratio

Answers

Answer:

Debt / Equity = 0.72649 : 1 or 72.649%

Explanation:

The ROE or return on equity can be calculated using the Du Pont equation. It breaks the ROE into three components. The formula for ROE under Du Pont is,

ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Shareholder's equity

or

ROE = Net Income / Total equity

Assuming that sales is $100.

Net Income = 100 * 0.051 = 5.1

Total Assets = 100 / 1.84

Total Assets = 54.35

0.162 = 5.1 / Total equity

Total Equity = 5.1 / 0.162

Total Equity = 31.48

We know that Assets = Debt + Equity

So,

54.35 = Debt + 31.48

Debt = 54.35 - 31.48

Debt = 22.87

Debt / Equity = 22.87 / 31.48

Debt / Equity = 0.72649 : 1 or 72.649%

You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. You are required to post a 50% margin on the short sale. If your broker requires a 30% maintenance margin, at what price will you get a margin call? (Ignore interests and dividends)
a. $62.50
b. 57.69
c. 56.25
d. 37.50

Answers

Answer:

b. 57.69

Explanation:

Calculation for what price that you will get a margin call

First step

200 shares *$25 per share=$10,000

Second step

Based on the information given we are required to post a 50% margin on the short sale.

Now let find the 50% margin

50% margin =50%*$10,000

50% margin=$5,000

Hence,

$10,000+$5,000=$15,000

Third step

Based on the information given we were told that the broker requires a 30% maintenance margin.

.30=($10,000-200p)/200p

60p=$15,000-200p

260p= $15,000

Hence

$15,000/260

Price= $57.69

Therefore the price that you will get a margin call will be $57.69

a. Monetary Policy involves changing_______________ the money supply. In the United States, Monetary Policy is implemented by the____________.
1. taxes and government spending
2. the design of currency
3. exports
4. Federal Reserve
5. President and Congress
6. Secretary of the Treasury/ states.
b. _______________ can be used to address a Recessionary Gap; while _________ can be used to address an Inflationary Gap.
1. Contractionary Monetary Policy
2. Lower prices
3. Expansionary MonetaryPolicy
4. Larger coins
5. smaller coins
6. higher prices
c. To enact Contractionary Monetary Policy, the central bank will _________bonds. This ____________the amount of cash in the economy. This will cause bond prices to ____________and interest rates to _____________. The change in interest rates causes investment and consumption to___________ shifting ____________.
1. fall
2. stay the same
3. rise,
4. Short-Run Aggregate Supply
5. Aggregate Demand
6. Long-Run Aggregate Supply
7. Outward
8. inward
9. buy
10. sell
11. increase
12. decrease

Answers

Answer:

In the United States, Monetary Policy is implemented by the - 4. Federal Reserve

The Federal Reserve of the United States is in charge of implementing the Monetary Policy of the country. It is also in charge of regulating the financial industry, and acting as lender of the last result to prevent financial crisis.

3. Expansionary MonetaryPolicy - can be used to address a Recessionary Gap

During times of economic downturn, monetary policy tends to be expansionary: expanding the money supply to lower the interest rate, so that investment becomes cheaper, and the economy reactivates.

1. Contractionary Monetary Policy - can be used to address an Inflationary Gap.

When the money supply is too high, or has grown too fast, inflation often starts. For this reason, the fed usually implements contractionary monetary policy (less money supply, higher interest rate), in order to keep inflation from increasing.

c. To enact Contractionary Monetary Policy, the central bank will - sell bonds

When the fed sell bonds, it takes money from the market, reducing the money supply.

This - reduces - the amount of cash in the economy.

As explained above.

This will cause bond prices to - fall - and interest rates to - rise

The change in interest rates causes investment and consumption to - fall

shifting - Aggregate Demand

Contractionary monetary policy will cause interest rates to rise, making investment more expensive, and causing price hikes, this will reduce consumption.

This in turn will shift the Aggregate Demand curve to the left or inward.

Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed breakdown of the cost is below. Choose the correct answer from the options provided. Per Unit Variable costs $ 12 Allocated manufacturing overhead costs 3 Allocated general administrative costs 5 $ 20 Outside supplier's offer $ 17 What are the total relevant cost of producing the units internally

Answers

Answer:

$120,000

Explanation:

Calculation for the total relevant cost of producing the units internally

Using this formula

Total relevant cost = Variable costs per unit*Units Produce

Let plug in the formula

Total relevant cost=$12 per unit* 10,000 units

Total relevant cost=$120,000

Therefore the total relevant cost of producing the units internally will be $120,000

If Tex's Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying

Answers

Answer:

$210,000

Explanation:

The computation of the external price is shown below

Making cost =  buying  cost

$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)

$220,000 = External price + $10,000

So,

External price = 210,000

Hence, the same is to be considered

Therefore the external price is $210,000

On October 10, the stockholders? equity of Sherman Systems appears as follows:
Common stock?$10 par value, 72,000 $ 720,000
shares authorized, issued, and outstanding
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders equity $ 1,800,000
Prepare journal entries to record the following transactions for Sherman Systems.
1a. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
1b. Sold 1,000 treasury shares on November 1 for $31 cash per share.
1c. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Answers

Answer: Please find answers in explanation column

Explanation:

Common stock?$10 par value, 72,000

shares authorized, issued, and outstanding                 $ 720,000

Paid-in capital in excess of par value, common stock  $216,000

Retained earnings                                                         $864,000

Total stockholders equity                                             $1,800,000

a)journal entry to record the purchase of shares on Oct 11

Date  Account                                Debit                 Credit

Oct 11 Treasury stock                     $125,000

Cash                                                                $125,000

Calculation

value of the Treasury stock=No.of shares×Value per share

=5,000×$25  =$125,000

b. journal entry to record the sales of treasury shares.

​Date  Account                                Debit                 Credit

Oct 11  Cash                                     $31,000

Treasury stock                                                       $25,000

Paid in capital from the sale of the stock

(31,000 - 25,000)                                                      $6,000

Calculation

Cash =No.of shares×Value per share

=1,000×$31 =$31,000

Treasury stock=No.of shares× purchased value of share

=1,000×$25  =$25,000

1c)journal entry to record the sales of the remaining  treasury shares

​Date  Account                                              Debit                 Credit

Nov 1  Cash                                                $80,000

Paid in capital from the sale of the stock $6,000

Retained earning                                     $14,000

Treasury stock                                                               $100,000

Calculation

Remaining treasury shares = 5000-1000= $4000

Cash =No.of shares×Value per share

=4, 000× 20  =$80 ,000

Treasury stock=No.of shares× purchased value of share

=4,000×$25  =$100,000

recall paid in  capital from sale = $6000

retained earnings = treasury stock - cash- paid in capital= 100,000- 80,000 - 6,000= $14,000

2) Revised equity of the balance sheet to show new  total stockholders’ equity

Account /Particulars                                Amount

Common stock $ 720,000

Paid-in capital   $216,000

Retained earnings         $864,000

less Treasury stock       ($125,000)

Balance                                                    $739,000

Total stockholders equity                      $1,675,000

Hannah is the owner of a party store. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000, and her overhead expenses were $15,000. If she could earn $53,000 working for another party store nearby, we know that her economic profit was

Answers

Answer:

$433,900

Explanation:

The computation of the capitalized cost of the land is shown below:-

Capitalized cost of the land = Purchase price + Demolition of building + Title insurance + Attorney fee + Property taxes covered during the period - Scrap value from the building

= $420,000 + $12,000 + $900 + ($3,000 - $500) - $1,500

= $420,000 + $12,000 + $900 + $2,500 - $1,500

= $435,400 - $1,500

= $433,900

The best way to characterize public relations at Under Armour is to use the label Multiple Choice fund raising. political public relations. marketing public relations. relationship management. publicity

Answers

Answer:

The correct answer is the option: Marketing Public Relations.

Explanation:

To begin with, the concept known as "Public Relations" in the marketing field refers to the instrument that the managers have and they can use with the purpose to establish better relationships with the public and with the target audience that the company has. The major goal of the public relations strategy is to know how to engage the company in relationships with outside agents that can benefit the company in its image to the customers. Therefore that this type of strategy focuses on the actions that the company can take in order to increase its public image to the society.

BioGrow Pharma Inc. wanted its research partner, an R&D company, to develop a cancer vaccine. However, the project required huge capital investments, and its research partner was not ready to solely face the risks involved. Thus, to gain its partner's confidence and to prove its involvement, BioGrow Pharma invested $100 million in the project. This investment made by BioGrow Pharma will result in a _____.

Answers

Answer: credible commitment

Explanation:

From the question, we are informed that BioGrow Pharma Inc. wanted its research partner, an R&D company, to develop a cancer vaccine but that the project required huge capital investments, and its research partner was not ready to solely face the risks involved.

Therefore, to gain its partner's confidence and to prove its involvement, BioGrow Pharma invested $100 million in the project. This investment made by BioGrow Pharma will result in a credible commitment.

Acme Company’s production budget for August is 17,600 units and includes the following component unit costs: direct materials, $7.70; direct labor, $10.10; variable overhead, $6.20. Budgeted fixed overhead is $33,000. Actual production in August was 18,810 units. Actual unit component costs incurred during August include direct materials, $8.50; direct labor, $9.10; variable overhead, $6.90. Actual fixed overhead was $34,600. The standard direct material cost per unit consists of 11 pounds of raw material at $0.7 per pound. During August, 319,770 pounds of raw material were used that were purchased at $0.50 per pound.

Required:
Calculate the materials price variance and materials usage variance for August.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Actual production in August was 18,810 units.

During August, 319,770 pounds of raw material were used that were purchased at $0.50 per pound.

The standard direct material cost per unit consists of 11 pounds of raw material at $0.7 per pound.

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (0.7 - 0.5)*319,770

Direct material price variance= $63,954 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 18,810*11= 206,910

Direct material quantity variance= (206,910 - 319,770)*0.7

Direct material quantity variance= $79,002 unfavorable

The principle that each World Trade Organization member must accord to all other member countries tariff treatment no less favorable than it provides to any other country is known as the __________ principle.

Answers

Answer:

Most favoured nation principle

Explanation:

Most favoured nation (MFN) clause of the World Trade Organisation requires that when a nation trades with others the concessions, immunities, and privileges granted to one nation should be the the same granted to all WTO members.

It discourages discrimination where one nation in international trade is favoured above another.

For example if Ghana reduces tariff on trades with South Africa it is expected that tariffs to other WTO nations will also be reduced to 3%.

Exceptions to this principle are for developing nations, regional free trade areas, and custom unions.

Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current assets Cash $60,000 $30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets $300,000 $245,000 Current liabilities Accounts payable $140,000 $110,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities $200,000 $155,000 During 2019, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Compute the following liquidity measures for 2019:

Answers

Answer:

1. 1.5 Times

2.$100,000

3.0.775 Times

4.$75,000

5.$100,000

Explanation:

Liquidity ratios can be found by just simply putting the given values in their appropriate formulas. All you have to memorize is the simple formulas

1.Current Ratio  

CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

CURRENT RATIO = $300,000/$200,000

CURRENT RATIO = 1.5 Times

2. Working Capital

WORKING CAPITAL= CURRENT ASSETS- CURRENT LIABILITIES

WORKING CAPITAL= $300,000 - $200,000

WORKING CAPITAL= $100,000

3. Acid ratio

ACID RATIO = CURRENT ASSETS - INVENTORY - PREPAID EXPENSES/CURRENT LIABILITIES

ACID RATIO = ($300,000 - $110,000 - $35,000)/$200,000

ACID RATIO = 0.775 Times

4. Receivable turnover

RECEIVABLE TURNOVER = CREDIT SALES/AVERAGE RECEIVABLE

RECEIVABLE TURNOVER = $750,000/$75,000

RECEIVABLE TURNOVER = 10 Times

Working

AVERAGE RECEIVABLE = (Opening receivables+Closing receivables)/2

AVERAGE RECEIVABLE = ($55,000 + $95,000) / 2 = $75,000

5. Inventory Turnover

INVENTORY TURNOVER = COST OF GOODS SOLD / AVERAGE INVENTORY

INVENTORY TURNOVER = $400,000 / $100,000

INVENTORY TURNOVER = 4 Times

Working

AVERAGE INVENTORY = (Opening inventories+Closing inventories)/2

AVERAGE INVENTORY = (110,000 + 90,000)/2

AVERAGE INVENTORY = $100,000

Granger Inc. Comparative Balance Sheets December 31

Assets 2017 2016
Cash $80,800 $48,400
Accounts receivable 87,800 38,000
Inventory 112,500 102,850
Prepaid expenses 28,400 26,000
Long-term investments 138,000 109,000
Plant assets 285,000 242,500
Accumulated depreciation (50,000) (52,000)
Total $682,500 $514,750

Liabilities and Stockholders' Equity
Accounts payable $102,000 $67,300
Accrued expenses payable 16,500 21,000
Bonds payable 110,000 146,000
Common stock 220,000 175,000
Retained earnings 234,000 105,450
Total $682,500 $514,750


Granger Inc. Income Statement Data For the Year Ended December 31, 2017

Sales revenue $388,460

Less:
Cost of goods sold $135,460
Operating expenses, excluding depreciation 12,410
Depreciation expense 46,500
Income tax expense 27,280
Interest expense 4,730
Loss on disposal of plant assets 7,500 233,880
Net income $154,580

Additional information:

1. New plant assets costing $90,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $51,750 and accumulated depreciation of $43,650 were sold for $1,350 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $23,427 was declared and paid during the year.

Required:
Prepare a statement of cash flows for Granger Inc. using the direct method.

Answers

Answer:

                                       GRANGER INC.

       STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

                  FOR THE YEAR ENDED DECEMBER 31, 2017

                Particulars                                                    Amount$

Cash flow from operating activities

Net Income                                                                    154,580

Adjustments to reconcile net income to net cash

provided by operating activities  

Adjustment for non cash effects

Depreciation expense                                                   46,500

Loss on sale of plant assets                                           7,500

Change in operating assets & liabilities

Increase in Accounts receivable                                  -49,800

Increase in inventory                                                      -9,650

Increase in prepaid expenses                                        -2,400

Increase in accounts payable                                         34,700

Decrease in accrued expenses payable                       -4,500

Net cash flow from operating activities (a)                 176,930

Cash Flow from Investing activities

Old Plant assets sold                                                       1,350

New plant assets purchased                                         -90,000

Long-term investments purchased                                -29,000

Net cash Flow from Investing activities (b)                -117,650

Cash Flow from Financing activities

Cash dividends paid                                                        -23,427

Common stock issued                                                      45,000

Bonds paid                                                                        -36,000

Net cash Flow from Financing activities (c)                 -14,427

Net Change in cash c=a+b+c                                            44,853

Add: Beginning cash balance                                           48,400

Closing cash balance                                                        93,253

A company with 99,006 authorized shares of $8 par common stock issued 48,828 shares at $13 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

A. $43,563
B. $21,484
C. $7,812
D. $13,672

Answers

Answer:

$21,484

Explanation:

A company has 99,006 authorized shares of $8 par

The common stock was issued at 48,828 shares at the price of $13 for one share

The company made a 2% dividend declaration

= 2/100

= 0.02

The market price is $22 per share

Therefore, the amount that was transferred from the retained earnings account to the paid-in capital accounts can be calculated as follows

= 48,828 shares × 0.02 × $22

= $21,484

Hence the amount that was moved from the retained earnings account to the paid-in capital accounts as a result of stock dividend is $21,484

Which of the following is not a reason why it is important for parties to memorialize their agreements in writing?

a. A party enhances his/her chances of proving that an obligation was undertaken and makes it harder for the other party to deny making the promise.
b. Signing a writing communicates the seriousness of the occasion to the signer.
c. A person's signature on a written contract provides a basis for the contract to be authenticated.
d. Writings are subject to the danger that a person might fabricate terms.

Answers

Answer:

B. singing a writing communicates the seriousness of the occasion to the singer

The reason which is not important for parties to memorialize their agreements in writing is  signing a writing communicates the seriousness of the occasion to the signer. Thus, the correct answer is C.

What is an agreement?

Agreement refers to consent of individual on a particular opinion. When the both parties agree on a concept they will make it in writing. When this agreement enforceable by law it is considered as contract.

The reason it is important top memorialize the agreements in writing are it will act as proof or evidence when formulated in written to be presented in case of obligation.

An agreement will be duly signed by both the parties which shows its authenticity and reliability and avoid any false interpretation of the deal. When the agreement is in writing the violation of terms and conditions is not possible as it clearly mentions the drawbacks of circumstances if any party failed to fulfill the conditions of the agreement.

Therefore, the option C signing a writing communicates seriousness is the appropriate answer.

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What element of the tourism and recreation industry has increased tenfold over the last fifteen years, bringing increased revenue to cities in the Coastal South such as Miami, Fort Lauderdale, and Tampa

Answers

Answer: A. The Cruise Ship Industry

Explanation:

The Cruise Ship Industry has been until recently (due to the Pandemic) one of the fastest growing elements of Tourism and Recreation in the United States having increased tenfold over the last 15 years.

Indeed in 2018, it was estimated that the industry added over $52 billion to the US economy as well as employing over 400,000 people.

This massive growth has benefitted port cities from which these Cruises take off and return to such as Miami, Fort Lauderdale, and Tampa immensely.

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