Ford Motor Company agreed to pay its workers $37 an hour in 1999 and $37 an hour in 2001. The CPI in 1999 was 166 and in 2001 was 180. Calculate the real wage rate in each year (to the nearest cent). Did these workers really get a pay raise between 1999 and 2001?
Answer:
No, the wage rate did not raise.
Explanation:
Given the nominal wage rate for the year 1999 = $37
CPI for 1999 = 166
The real wage for the year 1999 = [ Nominal wage / CPI ] x 100
The real wage for the year 1999 = [ 37/ 166] x 100 = $22.28
Given the nominal wage rate for the year 2001 = $37
CPI for 2001 = 180
The real wage for the year 2001 = [ Nominal wage / CPI ] x 100
The real wage for the year 2001 = [ 37/ 180] x 100 = $20.55
No the wage rate did not raise.
10. What is an advantage of using a credit card?
1 point
It will not affect your credit score or credit history
Since it is tied directly to your checking account, it prevents you from spending money
you do not have
If you need to carry a balance, the interest rates are generally quite low (less than 5%)
If you pay off your balances every month in full, it's like getting a short-term interest-
free lom
11. Each of the following financial products will help you build a credit
history EXCEPT
10. The correct advantage of using a credit card is: if you pay off your balances every month in full, it's like getting a short-term interest-free loan.
11. All the mentioned financial products can help build credit history when used responsibly, so none of them should be excluded from the list.
10. Using a credit card responsibly and paying off the balance in full each month offers the advantage of essentially accessing interest-free credit for a short period.
When you make purchases with a credit card and pay the full amount by the due date, you avoid paying any interest charges on those purchases. This can be particularly beneficial if you have a large purchase or unexpected expense that you need to make and would prefer to pay off gradually over a few weeks or months without incurring interest.
11. As for the financial products that help build credit history, all of the following options can contribute to establishing a credit history:
Credit cards: Responsible use, such as making timely payments and keeping credit utilization low, can help build a positive credit history.
Loans (e.g., student loans, auto loans, mortgages): Consistently making payments on time and in full can demonstrate your ability to manage debt responsibly.
Lines of credit: Similar to credit cards, properly managing lines of credit and making timely payments can contribute to a positive credit history.
Secured credit cards: These cards require a security deposit but can still help build credit history if used responsibly.
Therefore, all the mentioned financial products can help build credit history when used responsibly, so none of them should be excluded from the list.
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Suppose eggs are only sold by the dozen and priced in whole dollar amounts. No eggs are demanded at a price above $7 per dozen. At a price equal to $7 per dozen, 10 dozen eggs are demanded. If the price falls to $6 per dozen, then 11 dozen are demanded. At a price of $5 per dozen, 12 dozen are demanded. When the price falls to $4 then 13 dozen are demanded. Suppose also that this market is operating in the short run and the quantity of eggs supplied is fixed at 12 dozen eggs. What are the equilibrium price and quantity in this market?
Answer:
$5
12
Explanation:
Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied
from the question, the following table can be determined
P Qd Qs
$7 10
$6 11
$5 12 12
$4 13
At equilibrium price, quantity demanded equal quantity supplied. this price is $5 and quantity is 12
Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $14,000; (2) up to 120 days past due, $4,500; and (3) more than 120 days past due, $2,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 2 percent, (2) 12 percent, and (3) 30 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance is $800 (credit) before the end-of-period adjusting entry is made. Data during the current year follow:
a. During December, an Account Receivable (Patty's Bake Shop) of $750 from a prior sale was determined to be uncollectible; therefore, it was written off immediately as a bad debt.
b. On December 31, the appropriate adjusting entry for the year was recorded.
Required:
1. Give the required journal entries for the two items listed above.
2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations.
Answer:
Brown Cow Dairy
1. Journal Entries:
a. Debit Allowance for Uncollectibles $750
Credit Accounts Receivable $750
To write-off an uncollectible account.
b. Debit Bad Debts Expense $1,520
Credit Allowance for Doubtful Accounts $1,520
To record bad debts expense for the year.
2. Amounts that would be reported:
Income Statement:
Bad debts expense $1,520
Balance Sheet:
Accounts Receivable $21,000
less Allowance for Doubtful accounts $1,570
Explanation:
a) Data and Calculations:
(1) not yet due, $14,000 * 2% = $280
(2) up to 120 days past due, $4,500 * 12% = 540
(3) more than 120 days past due, $2,500 * 30% = 750
Total $21,000 $1,570
Balance of Allowance for Doubtful Accounts = $800
a. Debit Allowance for Uncollectibles $750
Credit Accounts Receivable $750
To write-off an uncollectible account.
b. Debit Bad Debts Expense $1,520
Credit Allowance for Doubtful Accounts $1,520
To record bad debts expense for the year.
The following items are reported on a company's balance sheet: Cash $160,000 Marketable securities 75,000 Accounts receivable (net) 65,000 Inventory 140,000 Accounts payable 200,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio fill in the blank 2
Answer and Explanation:
a. The current ratio is
We know that
Current ratio = Current Assets ÷ Current Liabilities
= $440,000 ÷ $200,000
= 2.2
Cash $160,000
Marketable Securities $75,000
Account receivable $65,000
Inventory $140,000
Current Assets $440,000
Account Payable $200,000
current liabilities $200,000
b
Quick ratio =( Current assets - inventory ) ÷ Current Liabilities
= ($440,000 - $140,000 ) ÷ $200,000
= 1.5
Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows:
Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800
The budgeted data for smartphone case production are as follows.
Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units
Required
a. Calculate the activity rate for each cost pool.
b. Calculate the activity-based unit cost of the smartphone case.
Answer:
Wieters Industries
a. Activity Rates:
Machine setup = $250
Inspection = 300
Materials receiving 140
b. The activity-based unit cost of the smartphone case is:
= $13.04
Explanation:
a) Data and Calculations:
Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800
Total overhead costs $572,000
Activity Rates:
Machine setup = $250 ($200,000/800)
Inspection = 300 ($120,000/400)
Materials receiving 140 ($252,000/1,800)
Budgeted data for smartphone case production:
Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units
Overhead Applied to Smartphone Case:
Number of setups 92 * $250 = $ 23,000
Number of quality tests 400 * $300 = 120,000
Number of purchase orders 50 * $140 = 7,000
Total overhead applied = $150,000
Overhead per unit = $10 ($150,000/15,000)
Unit Cost of Smartphone Case:
Direct materials per unit $2.50
Direct labor per unit $0.54
Overhead per unit $10.00
Total unit cost = $13.04
More than 99% of all U.S. firms are classified as small businesses, and they employ about half of private workers. A small business is defined as any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people. Understanding the advantages and disadvantages of small business ownership is crucial for any potential entrepreneur.
Match each statement or scenario with the appropriate advantage or disadvantage of small business
i. ownership.ii. Focusiii. Reputationiv. High stress levelv. Inexperience/Incompetencevi. Flexibilityvii.Inability to cope with growthviii.Costsix. Independencex. High failure rateMatch each of the options above to the items below.1. One of the leading reasons for becoming your own boss. 2. A 20-employee factory does not have a designated accounting or advertising department.3. The pizzas offered on the Patrick’s Pizza menu are often based on the types of produce in season.4. Mike’s trucking business provides specific information and products to commercial truck drivers.5. Brandy’s nursery offers delivery and expert installation of their trees at no extra cost to the customer and will replace any defective one up to 3 years after purchase.6. Sue works more than 60 hours a week at her construction business and cannot find reliable suppliers for lumber inventory.
7. Half of all new employer firms fail within the first five years.8. As a fitness expert, Tyler is having difficulties understanding the accounting requirements for his bank business loan for his workout facility.9. Circumstances such as products not arriving on time due to limited capacity affect the reputation of a company more than any other factor.
Answer:
A
Explanation:
Mideast Airlines purchased a 777 aircraft on January 1, 2020 at a cost of
$40,000,000. The estimated useful life of the aircraft is 20 years, with an
estimated salvage value of $6,000,000. What is the accumulated
depreciation and book value at December 31, 2022, using the straight-line
method
Answer:
3,400,000 accumulated depreciation, 36,600,000 book value
Explanation:
Cost - salvage = amount to be depreciated
40,000,000-6,000,000=34,000,000 amount to be deprecated
34,000,000/20 years =1,700,000 depreciation per year
1,700,000x2-3,400,000 accumulated depreciation after 2 years
40,000,000-3,400,000=36,600,000 book value
On January 1, Pharoah Company had 87000 shares of $10 par value common stock outstanding. On May 7, the company declared a 5% stock dividend to stockholders of record on May 21. Market value of the stock was $16 on May 7. The stock was distributed on May 24. The entry to record the transaction of May 24 would include a
Answer: credit to Common Stock Dividends Distributable for $43500
Explanation:
Based on the information given in the question, the entry to record the transaction of May 24 goes thus:
Debit Stock Dividend = 87000 × 5% × $16 = $69600
Credit To Common Stock Dividend Distributable = 87000 × 5% × $10 = $43500
Credit To Paid in capital in excess of Par - Common Stock = $69600 - $43500 = $26100
What would be the annual cost saved by shifting from the -bag lot size to the EOQ? The annual holding cost with the EOQ is $ nothing. (Enter your response rounded to two decimal places.)
Answer:
Without Calculating The... Problem 13 Current on-hand inventory is 310 bags, with no open orders or. Problem 13 ... What would be the annual cost saved by shifting from the 505-bag lot size to the EOQ? The annual holding cost with the EOQ is $ 690.15.
Explanation:
does it help??
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $ million. During the year, the inventory of accessories turned over times. For the next year, Cyberphone plans to increase annual sales (at cost) by percent. a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year? $ nothing. (Enter your response as an integer.)
Answer:
sorry po
Explanation:
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The primary purpose for using the the mean absolute error (MAE) in forecasting is to: A. remove forecast error B. estimate the trend line C. estimate forecast error D. seasonally adjust the forecast
Answer:
measure forecast accuracy
Explanation:
The main purpose for using the mean absolute error is to do the forecast in an accurate manner. Also, it provides the measure for total forecast error for the given model
Therefore as per the given situation, the above represent the answer as neither it remove the error, nor estimated the trend line, etc
So, the same should be considered
Margaret sells hand-knit scarves at a flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. How many scarves should she sell each day in order to break even?
Answer:
The answer is 3 units
Explanation:
Break even sale is the amount of sales a firm or business needs to sell to break even , that is, the amount to sell to neither make profit nor loss.
Break even sales = Fixed cost ÷ ( unit sales - variable costs)
$30/($25 - $15)
$30/$10
=3 units
Break even sales is 3 units. That means Margaret needs to 3 units of hand-knit scarves to neither make profit or loss. Units above 3 will result into profit making while units below 3 will result into loss making.
Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $571,310 when the market rate is 12%.
Required:
a. Prepare the January 1, 2018, journal entry to record the bonds' issuance.
b. Prepare the journal entries to record the first two interest payments.
Solution :
a). Prepare the journal entry to record the bonds' issuance as shown below:
Interest paid = [tex]$\$630,000 \times 9\%\times \frac{1}{2}$[/tex]
= $ 28,350
Date Accounts titles and explanation Debit ($) Credit($)
1 Jan 2018 Cash 571,310
Discount on bonds payable 58,690
($ 630,000 - $ 571,130)
Bonds payable 630,000
b). Preparing the journal entries to record the first two interest payments :
Date Accounts Titles and explanation Debit($) Credit($)
30/6/2018 Interest expense 35,686.25
Discount on bonds payable 7,336.25
Cash 28,350
31/12/2018 Interest expense 35,686.25
Discount on bonds payable 7,336.25
Cash 28,350
Consumers have become more vulnerable to privacy infringement and identity theft MOST LIKELY due to which trend? A) consumers' decreasing awareness of investment scams B) the proliferation of automated financial transactions C) the rising rate of mortgage foreclosures during the recession D) the government's increasing regulation of the consumer credit industry
A) consumers’ decreasing awareness of investment scams.
Consumers that have more vulnerable to privacy infringement and identity theft because of this trend so it is option A.
What is privacy infringement?
At the time when the information related to the person that should be obtained against his or her so it should be either by coercion or it should be forced. Here the right to privacy should be violated. So, Consumers that have more vulnerable to privacy infringement and identity theft because of this trend so it is option A.
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You are given the following information on Kaleb's Heavy Equipment: Profit margin 6.5 % Capital intensity ratio .74 Debt-equity ratio .8 Net income $ 78,000 Dividends $ 16,000 Calculate the sustainable growth rate.
Answer: 14.36%
Explanation:
The sustainable growth rate will be calculated thus:
Firstly, we will calculate the return on equity(ROE) which will be:
= Profit margin × (1/Capital intensity ratio) × (1 + Debt equity ratio)
= 6.5% (1/0.74) × (1 + 0.8)
= 0.065 × 1.35 × 1.8
= 0.158
Then, we'll calculate the plowback ratio which will be:
= 1 - (16000/78000)
= 1 - 0.2051
= 0.7949
Therefore, the growth rate will be:
= (ROE × Plowback ratio) / [1 - (ROE × Plowback ratio)]
= (0.158 × 0.7949) / [1 - (0.158 × 0.7949)]
= 0.1256 / 0.8744
= 0.1436
= 14.36%
The sustainable growth rate is 14.36%
g Suppose there are 100 consumers with individual demand curves like the one in Question 1 and 10 producers with individual supply curves like the one in Question 1. Find the competitive equilibrium for this marke
Answer:
The correct answer is "16".
Explanation:
The given question seems to be incomplete. Please find the attachment of the full query.
According to the question,
The supply per producer when there are overall 10 producers,
⇒ [tex]P(\frac{Y}{10} )=10+(\frac{Y}{200} )[/tex]
or,
⇒ [tex]Y=200P-2000[/tex]
The consumption per producer when there are overall 100 producers,
⇒ [tex]P(\frac{x}{100} )= 40-(\frac{2x}{100} )[/tex]
or,
⇒ [tex]x = 2000-50 P[/tex]
At equilibrium,
⇒ [tex]200P-2000=2000-50P[/tex]
On adding "2000" both sides, we get
⇒ [tex]200P-2000+2000=2000-50P+2000[/tex]
⇒ [tex]200P=4000-50P[/tex]
[tex]250P=4000[/tex]
[tex]P=\frac{4000}{250}[/tex]
[tex]=16[/tex]
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 12% of par, and a current market price of (a) $56.00, (b) $76.00, (c) $116.00, and (d) $133.00? Round your answers to two decimal places. %
[tex] \text{Preferred share par value = $30} [/tex]
[tex] \text{Dividend per share (Dp) = $10 ($100×10%)} [/tex]
Required :[tex] \text{Normal rate of return (rp)} [/tex]
Formula :[tex] \text{rp =} \frac{Dp}{Vp} [/tex]
Where,
[tex] \text{Vp = price of preferred share} [/tex]
[tex] \text{Dp = dividend per share} [/tex]
[tex] \text{Rp = normal rate of return of preferred share} [/tex]
Solve for nomial rate of return (rp) :Refer The AttachmentLaw Office employ 12 full-time attorneys and 5 paraprofessionals. Budgeted salaries include $100,000 for each attorney and $30,000 per paraprofessional. For 20x1, indirect costs were budgeted at $250,000, but actually amounted to $300,000. Actual salaries were $110,000 for each attorney and $30,000 for each paraprofessional. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Total budgeted labor-hours were 50,000; however, actual labor-hours were 60,000.
How much should the client be billed in a normal costing system which uses budgeted rate and cost allocations are based on actual data, when 1,000 professional labor-hours were used?a. $27,000b. $32,000c. $34,800d. $37,400
Answer:
See below
Explanation:
Given the above information,
= ($110,000 × 12 + $30,000 × 5) / 60,000 × 1,000
= ($1,320,000 + $150,000) / 60,000,000
= $1,470,000 / 60,000,000 + $300,000/60,000) × 1,000
= $0.0245 + $5,000
= $5,000
Camelot Company has estimated the following costs for this year for 50,000 units: Manufacturing Selling and Administrative Variable $100,000 $ 25,000 Fixed 150,000 75,000 Total $250,000 $100,000 What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method
Answer:
the initial selling price is $8 per unit
Explanation:
The computation of the initial selling price is shown below;
Total manufacturing costs = $250,000
Now
Markup required is
= $100,000 + $50,000
= $150,000
So, the Initial selling price is
= ($250,000 + $150,000) ÷ 50,000
= $8.00
hence, the initial selling price is $8 per unit
A company with a higher contribution margin ratio is either more or less sensitive to changes in sales revenue, depending on other factors. likely to have a lower breakeven point. less sensitive to changes in sales revenue. more sensitive to changes in sales revenue.
Answer:
more sensitive to changes in sales revenue.
Explanation:
Contribution margin can be defined as the subtraction of variable cost from the sales price.
Mathematically, it given by the formula;
[tex] Contribution \; margin = sales \; price - variable \;cost[/tex]
Variable cost refers to cost which are the same per unit of production but vary directly with level of output.
Generally, a company that has a higher contribution margin ratio is more sensitive to changes in sales revenue because it affects it in the long-run.
Suppose you forecast that the standard deviation of the market return will be 20% in the coming year. If the measure of risk aversion in is A = 4: a. What would be a reasonable guess for the expected market risk premium? b. What value of A is consistent with a risk premium of 9%? (Round your answer to 2 decimal places.) c. What will happen to the risk premium if investors become more risk tolerant?
Answer:
a) 16%
b) 2.25
c) Increase in expected market risk premium
Explanation:
Expected standard deviation of market return = 20%
measure of risk aversion ( A ) = 4
a) Determine a reasonable expected market risk premium
= A * ( std ) ^2
= 4 * ( 20%)^2
= 16%
b) determine Value of A
market risk premium = A * ( std )^2
∴ A = 9% / ( 20% ) ^2
= 0.09 / 0.04
= 2.25
c) If investors become more risk tolerant the expected market risk premium will increase
Suppose that the average wage earner saves 3% of her take-home pay and spends the other 97%. Also suppose that 97% of any amount spent is always re-spent (with 3% saved). Estimate the impact that a proposed $35 billion tax cut will have on the economy over the long run due to the additional spending generated. (Round your answer to the nearest integer.)
Answer:
A proposed $35 billion tax cut will make $1,132 billion to be circulated through the economy over the long run due to the additional spending generated.
Explanation:
MPS = Marginal propensity to save = Average wage earner saves = 3%, or 0.03
MPC = Marginal propensity to consume = Average wage earner spends = 97%, or 0.97
Tax multiplier = - MPC/MPS = - 0.97/0.03 = - 32.3333333333333
Tax cut = - $35 billion
Impact of $35 billion tax cut = Tax multiplier * Tax cut = (- 32.3333333333333) * (- $35 billion) = $1,132 billion
Therefore, a proposed $35 billion tax cut will make $1,132 billion to be circulated through the economy over the long run due to the additional spending generated.
If the best operating level of a process X is 1026 bottles per day and the actual output during a day is 786 bottles, then what is the capacity utilization rate for process X
Answer:
greater than 70% but less than or equal to 90%
Explanation:
The computation of the capacity utilization rate for process X is shown below:
As we know that
Capacity Utilization = (Actual Output ÷ Design Capacity) × 100
= (786 ÷ 1026) × 100
= 76.61%
So, it is greater than 70% but less than or equal to 90%
Frank's sporting goods projects sales for the second quarter of 2021 to be as follows: April $250,000 May $300,000 June $380,000 All of Frank's sales are on credit, 45% of credit sales are collected one month following the sale and the rest are collected two months following the sale. January sales were $150,000, February sales were $180,000, and March sales were $280,000. What are the total cash receipts in the month of May
Answer:i would tell you to look on a the brainly app lol
Explanation:
what is the future value of ordinary annuity makes 2000 every month 10 years interest rate is 7% g
Answer:
The future value of the ordinary annuity is:
= $346,169.61.
Explanation:
a) Data and Calculations:
Ordinary annuity receipt/payment = $2,000
Payment is made monthly for 10 years (120 months)
Interest rate = 7%
From an online financial calculator, the future value is:
N (# of periods) 120
I/Y (Interest per year) 7
PV (Present Value) 0
PMT (Periodic Payment) 2000
Results
FV = $346,169.61
Sum of all periodic payments $240,000.00
Total Interest $106,169.61
You are considering an investment that promises to pay $1,000 per year for the next 10 years. The interest rate associated with investments having similar risk is 6.0%. How much would you be willing to pay for this investment
Answer:
$7360.09
Explanation:
the amount i would be willing to pay can be determined by calculating the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 10 = 1000
I = 6%
PV = $7360.09
To determine PV using a financial calculator:
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.
A small business sold an equipment for $30,000 after depreciating the equipment using the MACRS depreciation method. The applicable federal tax rate for the company is 39%. The federal tax liability on this depreciation recapture is $10,200 if the company also had other taxable income of $200,000 in that year.
a. True
b. False
Why is nominal value important ?
Answer: A preferred stock's nominal (par) value is important in that it is used to calculate its dividend while the nominal value of common stock is an arbitrary value assigned for balance sheet purposes. In economics, nominal value refers to the current monetary value and does not adjust for the effects of inflation.
Explanation:
Hope it helps
Josiah's team missed a crucial deadline and lost a major client due to poor communication. As a result, his team is experiencing trust issues. Josiah is looking for ways to improve trust across the team as a whole and has generated a few ideas. All of the following are likely to increase trust except:________.
a. Josiah creates a poster board with team goals, indicating the roles of each team member.
b. Josiah plans to provide his team with more project training sessions to help improve their efficiency both as dividuals and as a group.
c. Josiah conducts individual performance reviews in front of the whole group so no one feels singled out
d. Josiah has individual check-ins with his team members to provide feedback
