Answer: 12.68%
Explanation:
First find the nominal interest rate per month:
= Interest payment/Loan
= 100/ 10,000
= 1%
Effective annual rate is:
= (1 + Interest rate per quarter)^no. of compounding periods - 1
= (1 + 1%)¹² - 1
= 12.68%
If 2.5% GDP growth results in full employment, what would likely happen in the long-run if GDP growth reached 7.5% in the short run
Answer:
inflation will increase
Explanation:
in this case, the real GDP was higher than the potential GDP. The potential GDP was achieved when the growth rate was 2.5%, a 7.5% growth rate means that the economy grew more that it can sustain. As a result of this, inflation will rise since aggregate demand exceeds aggregate supply.
Inflation should be increased.
The following information should be considered:
When the real GDP is more than the potential GDP. So, the Potential GDP should be accomplished at the time when the growth rate is 2.5%.The 7.5% growth rate represents the economy grown more. Due to this, the inflation should increased as the aggregate demand should more than the aggregate supply.Therefore we can conclude that Inflation should be increased.
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9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be lower than they both expected. True or False: The real interest rate on this loan is lower than expected.
Answer: False
Explanation:
The real interest rate is the nominal interest rate adjusted for inflation.
If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.
For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:
= 8 - 4 = 4%
If inflation is instead 2%, real rate would be:
= 8 - 2 = 6%
Real rate would be higher than anticipated.
help!
When the firm increases the output from 210 to 220 surfboards, then the marginal cost (MC) is: *
a. $500
b. $50
c. $10
d. None of the above.
Answer:
$50 per additional surfboard produced
Explanation:
1 extra unit of labor is required to increase production from 210 to 220 surfboards.
each unit of labor costs $500 per week
the marginal cost for the whole batch of 10 surfboards = $500, but we must calculate it on a per unit basis = $500 / (220 - 210) = $50 per additional surfboard produced
Budgeted material-handling costs are $50,000. The material-handling cost per wall mirror under ABC is: $2,000. $1,000.
Answer:
the material handling cost per wall mirror is $500
Explanation:
The computation of the material handling cost per wall mirror is as follows;
= Budgeted material-handling costs ÷ material moves × moves ÷ number of wall mirrors
= $50,000 ÷ 20 × 5 ÷ 25
= $500
Hence, the material handling cost per wall mirror is $500
The same is to be considered
Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much was stockholders' equity at the end of the year
Answer:
$110,000
Explanation:
Calculation for How much was stockholders' equity at the end of the year
Beginning balance of stockholders' equity $40,000
Add net income $90,000
Less the dividends paid ($20,000)
Ending stockholders' equity $110,000
Therefore How much was stockholders' equity at the end of the year is $110,000
A company estimates that warranty expense will be 7% of sales. The company's sales for the current period are $315,000. The current period's entry to record the warranty expense is ________.
Answer:
Dr Warranty expense $22,050
Cr Warranty expense liability $22,050
Explanation:
Warranty expense is a liability that may be incurred by a business or firm due to the outcome of an unpredictable future events. It is a contingent liability
Given that ;
Current sales = $315,000
Warranty expense = $22,050 (7% of $315,000)
As a rule in accounting, debit increases assets and expenses while credit reduces assets and expenses.
Also, credit increases stock, sales revenue and liabilities while debit reduces them.
The entry is;
Dr Warranty expense $22,050
Dr Warranty expense liability $22,050
When repaying an amortized loan, the interest payments increase over time due to the compounding process. Group of answer choices True False
Answer:
False
Explanation:
The larger part of the first payments of a loan are usually dedicated to payment of interest. Then in the later years this changes as the interest will decrease and most payments are dedicated to repayment of the principle amount. Therefore, when repaying an amortized loan, the interest payments do not increase over time due to the compounding process.
Neal Kim saw an advertisement for $50 off an all-in-one printer. All printers are marked down 20%. What is the regular selling price of a printer
Answer:
$62.50
Explanation:
X * (1 -0.20) = 50
0.8X = 50
X = $62.50
$250 is the regular selling price of a printer. Markdown prices are reductions in a product's selling price from its original selling price expressed as a percentage.
What does it mean to mark down a price?A markdown in finance is a decrease in an asset's price and value. With SumUp Invoices, you can make attractive invoices for nothing. Markdowns typically happen when a company can't sell a product for its current price because they are intended to increase sales.
Given
Discounted Price = $50
Discount rate = 20%
Required to calculate regular selling price =?
Regular selling price = Discounted Price x 100% / 20%
= 50 x 100% / 20% = $250
Markdown prices are more commonly referred to as discounts. Companies mark down the prices of their products when they have sales. $250 is the regular selling price of a printer.
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year to date, company y had earned a 7 percent return. during the same time peropd, company r earned 9.25 percent and company c earned -2.25 percent. if you have a portfolio made up of 35 percent y, 40 percent r and 25 percent c, what is your portfolio return
Answer:
the portfolio return is 5.5875%
Explanation:
The computation of the portfolio return is shown below;
Company Return Investment % Return × Investment
Y 7% 35% 2.4500%
R 9.25% 40% 3.7000%
C -2.25% 25% -0.5625%
Total 5.5875%
Hence, the portfolio return is 5.5875%
Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is (rounded to the nearest cent): $65.43. $45.99. $61.32. $54.04. $43.42.
Answer:
$45.99
Explanation:
Calculation for the applied factory overhead per unit for the Great P model
First step is to Calculate the total direct labour cost of High F and Great P
High F $175,200
($10,000*$17.52)
Great P $210,240
($16,000*$13.14)
Total direct labour cost $385,440
Second step is to calculate the factory overhead rate
Using this formula
Factory overhead rate=Budgeted factory Overhead cost/Allocation base
Let plug in the formula
Factory overhead rate=$1,349,040/$385,440
Factory overhead rate=350%
Now let calculate factory overhead per unit for the Great P
Direct labor cost per unit of product Great P $13.14
Great P Factory overhead per unit =$13.14*350%
Great P Factory overhead per unit =$45.99
Therefore Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is $45.99
which speaker most supports the ideals of a market economy
Answer:
Speaker 2
Explanation:
When cash is received from a stockholder in exchange for common stock, the transaction is recorded by debiting Cash and crediting a(n): Multiple Choice
Answer:
Equity account
Explanation:
In the case when the cash is received in exchange of the common stock so here the cash is debited and credited the common stock i.e. equity account
The journal entry is
Cash Dr XXXXX
To Common stock XXXXX
(Being exchange is recorded)
here cash is debited as it increased the assets and credited the common stock as it also increased the equity
How has the current cultural environment of our country shaped the way that companies are looking at their own corporate cultural standards
Answer: Corporate culture is based on the kind of system on which the firm is ran which could be based in shared values, social norms and attitudes that shapes how members take decisions and act.
Explanation:
Corporate culture is based on the kind of system on which the firm is ran which could be based in shared values, social norms and attitudes that shapes how members take decisions and act. Although, the environment can have its effect to how corporate environment is ran but this is minimal compared to the standard the organization has set for itself
Local government officials would like to know if city residents are generally satisfied with the cleanliness of local
streets and recreation areas. To estimate the level of satisfaction, city officials appear on a local television morning
show, where residents are invited to share their satisfaction through an online poll. Which of the following
statements best describes the potential results from this poll?
Answer:
D. This is a voluntary response sample and is likely to underestimate the proportion of residents satisfied with the cleanliness of the area.
Explanation:
i took the quiz
This is a voluntary response sample and is likely to underestimate the proportion of residents satisfied with the cleanliness of the area.
What is survey ?A survey is a set of questions used in human subject research with the goal of gathering specific information from a certain population. Surveys can be carried out via the phone, by mail, online, at street corners, and even in shopping centers. Surveys are used to collect data or learn more in areas like demography and social research.
Survey research is frequently used to evaluate ideas, beliefs, and emotions. Surveys might have narrow, focused objectives or they can have broad, more general objectives. In addition to being utilized to satisfy the more practical requirements of the media, such as evaluating political candidates, public health officials, professional organizations, and advertising and marketing directors, surveys are frequently employed by psychologists and sociologists to evaluate behavior.
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Check Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the Investee's operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $335,000. Amortization associated with this acquisition is $9,000 per year In 2021, Lindman corns an income of \$90,000 and declares cash dividends of $30,000. Previously, in 2020, Lindman had sold inventory costing $24,000 to Matthew for $40,000. Matthew consumed all but 25 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $28,000 to Matthew for $50,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman
Answer:
A. $16,560
B. $342,560
Explanation:
a. Calculation for What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman
2021 EQUITY INCOME
Equity income accrual 2021 $27,000
($90,000*3)
Amortization ($9,000)
Intra entity profit Recognized in 2020 transfer $1,200
($40,000*0.25*0.4*0.3)
Intra entity profit Deferred in 2021 transfer ($2,640)
($50,000*0.4*0.44*0.3)
2021 EQUITY INCOME $16,560
Calculation for gross profit rate on 2020 transfer
Gross profit rate=$16,000/$40,000
Gross profit rate=0.4
Calculation for gross profit rate on 2021 transfer
Gross profit rate=$22,000/$50,000
Gross profit rate=0.44
Therefore the amount of equity method income that Matthew would recognize in 2021 from its ownership interest in Lindman is $16,560
b. Calculation for What is the equity method balance in the Investment in Lindman account at the end of 2021
EQUITY METHOD BALANCE
Investment in Lindman (1/1/2021) $335,000
Equity income 2021 $16,560
Dividend 2021 (-$9,000)
($30,000*0.3)
Investment in Lindman (31/12/2021) $342,560
Therefore the equity method balance in the Investment in Lindman account at the end of 2021 will be $342,560
Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called
Answer:
Non - Current or Long term liabilities
Explanation:
According to the Conceptual Framework, Liabilities are present obligation of an entity that arise as a result of past events from which cash outflows are expected.
Liabilities of a long term nature usually exceeding period of 12 months are called Non- Current or Long term Liabilities
Thus, Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called Long term liabilities
If sellers of scarce resources are not allowed to increase prices to equilibrate supply and demand after a disaster, how do you think these resources should be allocated among the population
Answer:
Explanation:
During a natural disaster, resources should be allocated to among the population on a basis of necessity and with a specific limit per individual. For example, items such as food and water should be provided to each individual evenly while other items such as bandages and medicine should be allocated on the basis of necessity. This means that if an individual does not need the item to survive and as an emergency then they should not be given the item/resource. This would be the best and most efficient way to distribute resources during a natural disaster.
Using the letters above and the format below, indicate the balance sheet category in which an entity typically would place each of the following items. Indicate a contra account by placing your answer in parentheses. 1. __________ Long-term receivables 2. __________ Accumulated amortization 3. __________ Current maturities of long-term debt 4. Page 192__________ Notes payable (short term)
Answer:
The balance sheet category in which an entity typically would place each of the following items:
1. _Non-Current Assets_ Long-term receivables
2. _(Non-Current Assets)__ Accumulated amortization
3. __Current Liabilities__ Current maturities of long-term debt
4. Page 192_Current Liabilities_ Notes payable (short term)
Explanation:
A company's balance sheet has three main categories: assets, liabilities, and owners' equity. The assets are usually classified as Current Assets or Non-Current (long-term) Assets. On the other side of a balance sheet, there are the Liabilities and Owners' Equity. The Liabilities are classified into Current Liabilities and Non-Current Liabilities. Usually, the Owners' Equity is made up of Owners' Capital and Retained Earnings.
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.
Answer:
contingency.
Explanation:
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called contingency plans.
A contingency plan can be defined as a set of alternative plans that are designed and developed by an organization for continuous operation of the business in case of an emergency or when there is a failure in the primary (core) plan.
Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.
Complete Question:
Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product.
Date Activities Units Acquired at Cost Units sold at Retail
Jan. 1 Beginning inventory 140 units $6.00-$ 840
Jan. 10 Sales 100 units at $15
Jan. 20 Purchase 60 units $5.00 300
Jan. 25 Sales 80 units at $
Totals 380 $1,950 180 units
Required The Company uses a periodic inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.
Answer:
Cost of goods sold = $1,025
Ending inventory = $925
Explanation:
a) Data and Calculations:
Units of goods available for sale for the period = 380
Units of goods sold during the period = 180
Units of goods in ending inventory = 200 (380 - 180)
b) Cost of goods sold = Cost of goods available for sale minus ending inventory
= $1,950 - $925
= $1,025
c) Ending Inventory:
180 are from the January 30 purchase at $4.50 = $810
5 are from the January 20 purchase at $5.00 = $25
15 are from beginning inventory at $6.00 = $90
200 units Total cost of ending inventory = $925
d) The cost of goods available for sale consists of the cost of goods sold and the cost of ending inventory. The cost of goods sold under the periodic inventory system is derived by first calculating the cost of ending inventory, which has specific identification. Then this ending inventory cost is deducted from the cost of goods available for sale for the period.
In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:
Answer:
all consumers ................
When using the first-in, first-out (FIFO) method of process costing, equivalent units for work done during this period is equal to the number of units: In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work done during the period. Started into process during the period, plus the number of units in work-in-process at the beginning of the period. In work-in-process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items. Transferred out during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items.
Answer:
In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work done during the period
Explanation:
Under the FIFO following are the formulas needed for determining the equivalent unit of production. Any of the following formula should be used for calculated the same
(i) Equivalent Units of Production is
= finish opening inventory units + units started & completed + closing work in process inventory units
(ii) Equivalent Units of Production is
= opening inventory × (100% - Completion percentage of opening inventory) + Units started & completed + Closing work in process inventory × Completion percentage
(iii) Equivalent units of production is
= transferred out units + closing work in process inventory units − opening inventory units
Hence, the first option is correct
When completed units are sold: Finished Goods Inventory account is debited. Cost of Goods Sold account is credited. Finished Goods Inventory account is credited. Work-in-Process Inventory account is credited. Cost of Goods Manufactured account is credited.
Answer:
C. Finished Goods Inventory account is credited.
Explanation:
In a perpetual system of inventory; which can be defined as a method of financial accounting, that involves the updating informations about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by the customers, through the use of enterprise management software applications and a digitized point-of-sale equipment.
Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made and Finished Goods Inventory account is also credited. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft etc.
Hence, when completed units are sold, Finished Goods Inventory account is credited.
An advertisement that uses a beautiful woman to promote a product would be using which of the
following advertising techniques:
A.
Nostalgia
B.
Bandwagon
C.
Sense Appeal
D.
Statistics
Answer:
Sense Appeal
Explanation:
Sensory branding is a type of marketing that appeals to all the senses in relation to the brand. It uses the senses to relate with customers on an emotional level. Brands can forge emotional associations in the customers' minds by appealing to their senses.
Answer:
Sense Appeal
Explanation:
Just took the test
8. Problems and Applications Q8 Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation. True or False: If the elderly consume the same market basket as other people, then Social Security would provide an increase in their standard of living.
Answer:
Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation.
True
Explanation:
We realize that the elderly who receive Social Security do not consume the same market basket of goods and services as other people in the economy. Assuming that the elderly do consume the same market basket as others, Social Security would provide the elderly with an improved standard of living each year since the Consumer Price Index (CPI), which represents a weighted average of a basket of goods and services, overstates inflation and Social Security payments are tied to the CPI.
The managing activity of organizing
A). determines groups and assigns work activities
B). determines goals, strategies, and tactics
C). compares expected performances with actual performances
D). plans and monitors strategy implementation
Answer:
A). determines groups and assigns work activities
Explanation:
Organizing is the function of management that allows development of an organizational structure and allocate the work activities to ensure the completion of objectives.
The managing activity of organizing determines the groups suitable for the objective and the assign task or work on the basis of skills and other parameters to the groups.
Hence, the correct answer is "A)".
A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is
Answer:
$270,000
Explanation:
Calculation for The gross profit
Using this formula
Gross profit = Sales + Cosing stock - Purchases
Let plug in the formula
Gross profit =(45,000*15) +
(450,000/50,000)*5,000 - 450,000
Gross profit =$675,000+(9*5,000)-450,000
Gross profit =$675,000+$45,000-450,000
Gross profit = $270,000
Therefore The gross profit is $270,000
Identify and describe the main types of discounts that are used in the pricing of business products.
Answer:
In simple words, discount refers to the deduction or relief on value that a customer will get on the initial price. The discount is depicted as certain percentage on the price of the product. The main types of discounts are as follows :
1. Volume discounts
2. Functional discounts
3. Advertising discounts
4. Seasonal discounts
5. Cash discounts
All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Moon Appliance has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9,000 units of Part B89 to Moon Appliance for $20.00 per unit. What should Moon Appliance do
Answer:
The correct option is a. Make the new product and buy the part to earn an extra $1.00 per unit contribution to profit.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Moon Appliance manufactures a variety of appliances which all use Part B89. Currently, Moon Appliance manufactures Part B89 itself. It has been producing 9,000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 9,000 units include:
Direct materials = $3.00
Direct labor = $8.00
Variable manufacturing overhead = $4.00
Fixed manufacturing overhead = $3.00
Total cost = $18.00
All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assume Moon Appliance can purchase 9,000 units of the part from the Nadal Parts Company for $20.00 each, and the facilities currently used to make the part could be used to manufacture 7,000 units of another product that would have a $6 per unit contribution margin. If no additional fixed costs would be incurred, what should Moon Appliance do?
Select one:
a. Make the new product and buy the part to earn an extra $1.00 per unit contribution to profit.
b. Make the new product and buy the part to earn an extra $4.00 per unit contribution to profit.
c. Continue to make the part to earn an extra $3.00 per unit contribution to profit.
d. Continue to make the part to earn an extra $8.00 per unit contribution to profit.
The explanation of the answer is now given as follows:
Since all of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier, it implies that the fixed manufacturing overhead costs will not be considered in taking the decision.
We therefore proceed as follows:
Amount saved and generated per unit by outsourcing = Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit + Per unit contribution margin from another product = $3 + $8 + $4 + $6 = $21
Price to buy from Supplier = $20
Extra per unit contribution to profit = Amount saved and generated per unit by outsourcing – Price to buy from Supplier = $21 - $20 = $1
Therefore, the correct option is a. Make the new product and buy the part to earn an extra $1.00 per unit contribution to profit.
Suppose that government officials have decided to implement expansionary fiscal policies. What are their desired outcomes
Answer:
The goals of expansionary fiscal policies are to reduce unemployment rate, increase aggregate demand (rightward shift of aggregate demand curve), increase aggregate supply (rightward shift of aggregate supply curve), and as a result increase real GDP.
Expansionary fiscal policies can be either:
increase government spendingdecrease taxes