Answer: short-run fluctuations in economic activity.
Explanation:
The business cycle helps explain fluctuations in economic activity within a period of time which makes it a short run measure. The cycle consists of expansion phases and recession phases which show that economic activity seems to expand and then go into a recession overtime.
The lowest point in the recession is called the depression and when this happens, the economy hits rock bottom and starts to expand after some time. This is what happened with the Great Depression and the Great Recession. The height of the expansion is the peak and here, the economy is at its most successful.
A small toy store has organized its 10 inventory items on an annual dollar-volume basis. The information below shows the items, their annual demands, and unit costs. How should the store classify these items into groups A, B, and C?
Item Number Annual Volume (Units) Unit Cost ($)
Item 1 300 $10
Item 2 1000 $30
Item 3 500 $60
Item 4 100 $2
Item 5 1500 $20
Item 6 600 $50
Item 7 2000 $1.50
Item 8 900 $70
Item 9 1200 $2.00
Item 10 700 $40
Answer:
Classification:
Groups Annual Dollar-Volume
A Above $30,000:
Item Annual Volume Unit Cost Total Cost
Item 8 900 $70 $63,000
B Above $3,000:
Item Annual Volume Unit Cost Total Cost
Item 2 1,000 $30 $30,000
Item 3 500 $60 $30,000
Item 5 1,500 $20 $30,000
Item 6 600 $50 $30,000
Item 10 700 $40 $28,000
C $3,000 and Below
Item Annual Volume Unit Cost Total Cost
Item 1 300 $10 $3,000
Item 4 100 $2 $200
Item 7 2,000 $1.50 $3,000
Item 9 1,200 $2.00 $2,400
Explanation:
a) Data and Calculations:
Item Annual Volume Unit Cost Total Cost
Number (Units) ($) ($)
Item 1 300 $10 $3,000
Item 2 1,000 $30 $30,000
Item 3 500 $60 $30,000
Item 4 100 $2 $200
Item 5 1,500 $20 $30,000
Item 6 600 $50 $30,000
Item 7 2,000 $1.50 $3,000
Item 8 900 $70 $63,000
Item 9 1,200 $2.00 $2,400
Item 10 700 $40 $28,000
Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. (Check all that apply.) Multiple select question. The adjusted trial balance includes all accounts and balances appearing in financial statements. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance. Financial statements are easier to prepare using the adjusted trial balance than the general ledger. The balance sheet is the first financial statement prepared. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings. The income statement is the first financial statement prepared after preparing the adjusted trial balance.
Answer:
The Correct Statements regarding an adjusted trial balance and its use in preparing financial statements are:
1. The adjusted trial balance includes all accounts and balances appearing in financial statements.
3. Financial statements are easier to prepare using the adjusted trial balance than the general ledger.
5. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings.
6. The income statement is the first financial statement prepared after preparing the adjusted trial balance.
Explanation:
a) The above answers leave the following incorrect statements about the adjusted trial balance:
2. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance.
4. The balance sheet is the first financial statement prepared.
b) In conclusion, the adjusted trial balance, which lists the general ledger account balances, is compiled after considering period-end adjustment entries, in line with the accrual concept and the matching principles of generally accepted accounting principles.
The cost components of a heater include $38 for the compressor, $14 for the sheet molded compound frame, and $70 per unit for assembly. The factory machines and tools cost is $53,000. The company expects to produce 1,400 heaters in the coming year. What cost function best represents these costs
Answer: y = 122x + 53,000
Explanation:
The cost function takes the form, y = mx + c
Y = total cost
m would be the variable cost because it is the increase in x
x = total number of units to be produced
c = fixed cost because this is the y intercept and represents an amount that will not change regardless of the change in x
Variable cost = compressor + compound frame + assembly
= 38 + 14 + 70
= $122
Fixed cost = $53,000
Cost function is:
y = 122x + 53,000
What is Company XYZ's intrinsic equity value using the WACC as the discount rate and assuming the terminal value is based on the EBITDA exit multiple
Answer:
$315,198
Explanation:
WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.
WACC = 11.5%
Exit multiple = Total cash outflow / Total cash inflow
Exit multiple = $120,000 / 36,000 = 3.3x
EBITDA of the company is $178,412.
Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $106 and of each door is $256. The variable cost of a window is $65.50 and of a door is $178.00. Fixed costs are $624,000.
Required:
a. Determine the selling price per composite unit.
b. Determine the variable costs per composite unit.
c. Determine the break-even point in composite units.
d. Determine the number of units of each product that will be sold at the break-even point.
Answer:
Results are below.
Explanation:
First, we need to calculate the sales proportion:
Windows= 8/10= 0.8
Doors= 2/10= 0.2
Now, the selling and unitary variable cost per composite unit:
Selling price= 106*0.8 + 256*0.2= $136
Unitary varaible price= 65.5*0.8 + 178*0.2= $88
The break-even point:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 624,000 / (136 - 88)
Break-even point (units)= 13,000
Finally, the number of units for each product:
Windows= 13,000*0.8= 10,400
Doors= 13,000*0.2= 2,600
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Net income for the year was $58,000
Accounts payable increased by $18,600
Accounts receivable decreased by $25,600
Inventories increased by $6,200
Depreciation expense was $31,800
Net cash provided by operating activities was:_________.
Answer:
Net cash provided by operating activities was $127,800.
Explanation:
Net cash provided by operating activities can be calculated as follows:
Net cash provided by operating activities = Net income for the year + Increase in accounts payable + Decrease in accounts receivable - Increase in inventories increased + Depreciation expense = $58,000 + $18,600 + $25,600 - $6,200 + $31,800 = $127,800
Therefore, net cash provided by operating activities was $127,800.
The ending inventory of Sandie’s Candies is overstated by $75,000 at December 31, 20x8. What is the effect on 20x8’s net income, assuming that no other inventory errors have occurred during 20x8?
a. $150,000 overstated
b. $75,000 understated
c. no effect
d. $75,000 overstated
Answer:
$75,000 overstated
Explanation:
An overstatement of a year's ending inventory, absent any other errors, will lead to a decrease in Cost of Goods Sold (COGS), and an increase in Net Income.
valued at $850,000 by a real estate expert. The president of the company is questioning the accuracy of the firm’s latest balance sheet because it shows a book value of $550,000 for the building. How would you explain this situation to the president
Question Completion:
A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert.
Answer:
Book Value and Fair Value
There is a difference between the book value and the fair value of an asset. The book value is based on the asset's historical cost. The fair value is the current market price of the asset. In reporting long-term assets, the acceptable basis is the historical cost or the cost of acquiring the asset. This cost is further reduced by annual depreciation charges. The fair value is not often the acceptable basis for reporting long-term assets unless the entity is no longer a going concern or the asset has suffered an impairment loss.
Explanation:
a) Data and Calculation:
Fair value by a real estate expert = $850,000
Book value (historical cost) = $550,000
Difference between fair value and book value = $300,000
The explanation regarding the given situation is described below:
It considered the fair value of the asset at the time of valuation of an asset. At the time of valuation of the asset in the balance sheet, the asset should be recorded like = cost of the asset - depreciation. The asset valuation should be recorded at the book value always not the fair value.Learn more: brainly.com/question/17429689
Narcissistic leaders tend to have which of the following traits that are positively associated with both leader emergence and effectiveness?
A. Agreeableness and creativity.
B. Extraversion and openness to experience.
C. Openness to experience and agreeableness.
D. Agreeableness and extraversion.
E. Creativity and extraversion.
Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Stan’s Sporting Goods has a comparative advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower opportunity cost.
Sabrina’s Soccer has an absolute advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower production cost.
Stan’s Sporting Goods has an absolute advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower production cost.
Answer:
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Answer: A
Explanation: PogChamp
Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted by the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to fund a campaign to stop the farm's pollution. Which of the following types of private solutions to the externality of pollution has occurred in this case?A. Integration of different types of businessesB. ContractsC. Moral codes and social sanctionsD. Charities
Answer:
D
Explanation:
The activities of the chicken firm constitutes a negative externality to the environment
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality. This is the solution employed here.
Critical Chain Project Management (CCPM) attempts to keep the most highly demanded resource busy on critical chain activities, but not overloaded.
a. True
b. False
Answer:
True
Explanation:
Critical-Chain
This was introduced or originated by Eli Goldratt in 1997. Its aim is to challenges conventional project management approaches and absolute dependence on TOC principles. The idea of what to change or eliminated is the largely rooted behaviors that is common with the traditional project management practices. It is very multitasking anf it is the longest string of reliance that occur on the project.
Critical- Chain Approach
This approach simply covers project network as it ca be limited by both resource and technical reliance/dependencies. each type of limitations can create task reliance.
The Summary of Critical Chain Approach
1.) use Aggressive but Possible Times (ABPT) for task durations
2.) identify the critical chain by accounting for resource dependencies
3.) use buffer management to track project progress etc.
If the price level is 100 for 1996 and the price level is 103.3 in 1998, a nominal GDP in 1998 of $8,800 billion would mean that real GDP in 1998 (in 1996 prices) would be closest to:_______
a. $9.090.4 billion.
b. $8,518.9 billion.
c. $8,800 billion.
d. $8696.7 billion
Answer: b. $8,518.9 billion.
Explanation:
Nominal GDP is calculated with current prices which means that the effects of inflation are present.
Real GDP removes this effect by basing the GDP calculation on the prices of a previous period:
Real GDP = Nominal GDP * 100/ Price level
= 8,800 * 100/ 103.3
= $8,518.877
= $8,518.9 billion
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is:
Answer:
Debit : Account Payable $1,600
Credit : Discount Received $32
Credit : Cash $1,568
Explanation:
The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.
Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 17,000 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows:
Direct materials $ 8.20
Direct labor 8.30
Variable manufacturing overhead 1.20
Fixed manufacturing overhead 4.30
Unit product cost $ 22.00
Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 70% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $7.00 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component?
A) $20.71 per unit.
B) $22.00 per unit.
C) $25.50 per unit.
D) $24.21 per unit.
Countess Corp. is expected to pay an annual dividend of $4.81 on its common stock in one year. The current stock price is $75.67 per share. The company announced that it will increase its dividend by 3.80 percent annually. What is the company's cost of equity
Answer:
10.40 %
Explanation:
Use the Dividend Growth Model to calculate the Cost of Equity since the information provided allows for this method.
Cost of equity = Expected Dividend / Market Price + Growth rate
therefore,
Cost of equity = ($4.81 x 1.038) / $75.67 + 3.80
= 10.40 %
Riverbed Corp. enters into a contract with a customer to build an apartment building for $1,013,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $152,100 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $50,700 each week that completion is delayed. Riverbed commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability
August 1, 2021 70%
August 8, 2021 20
August 15, 2021 5
After August 15, 2021 5
Required:
Determine the transaction price for this contract.
Answer: $1,142,585
Explanation:
The transaction price is the contract price in addition to the expected value of the performance bonuses based on its probabilities.
= Contract price + Expected value of bonus
Bonus is to reduce by $50,700 for every week so:
Expected value of bonus = (152,100 * 70%) + ( (152,700 - 50,700) * 20%) + ( (152,700 - 50,700 - 50,700) * 5%) + ( (152,700 - 50,700 - 50,700 - 50,700) * 5%)
= $129,285
Transaction price = 1,013,300 + 129,285
= $1,142,585
The cost object of the plantwide overhead rate method is: Multiple Choice The production departments of the company. The unit of product. The production activities of the company.
Answer: The unit of product.
Explanation:
The units produced of the goods being produced will be the appropriate cost object because it will apportion the overhead cost to the plant based on how much goods were produced by the plant itself because this would determine how much overhead the plant used.
Manufacturing overheads only occur because goods are being produced which is why the best cost object would be those same goods being produced.
Calculating the price elasticity of supplyJake is a retired teacher who lives in New York City and does some consulting work for extra cash. At a wage of $50 per hour, he is willing to work 7 hours per week. At $65 per hour, he is willing to work 10 hours per week. Using the midpoint method, the elasticity of Jakeâs labor supply between the wages of $50 and $65 per hour is approximately ___ , which means that Jakeâs supply of labor over this wage range is ___ .
Answer:
1.38; Elastic
Explanation:
Calculation to determine the Elasticity of labor supply (E)
Using this formula
Elasticity of labor supply (E) = (Change in hours worked / Average hours worked) / (Change in wage rate / Average wage rate)
Let plug in the formula
Elasticity of labor supply (E) = [(10 - 7) / (10 + 7)] / [$(65 - 50) / $(65 + 50)]
Elasticity of labor supply (E) = (3/ 17) / (15 / 117)
Elasticity of labor supply (E) =0.1765/0.1282
Elasticity of labor supply (E)=1.38
Therefore elasticity of Jakeâs labor supply between the wages of $50 and $65 per hour is approximately 1.38 which means that Jakeâs supply of labor over this wage range is ELASTIC
Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,880,000 Net operating income $ 3,508,960 Average operating assets $ 9,400,000 The company's minimum required rate of return 14 % The division's margin used to compute ROI is closest to:
Answer:
See below
Explanation:
Given the above information, margin is computed as;
Margin = Net operating income / Sales
Sales = $37,880,000
Net operating income = $3,508,960
Then,
Margin = $3,508,960 / $37,880,000
Margin = 9.26%
Therefore, the division's margin used to compute ROI is closest to 9.26% approximately
The managing director of top dog companies
Answer:
What???
Explanation:
Jens-Peter Clausen. Managing Director and DE GmbH Partner.
Katrin Clausen. Manager.
Im not sure if my answer is right ▪_▪
A project manager has just assigned a team that comes from many countries, including Brazil, Japan, the United States, and Britain. What is her BEST tool for success?
Answer: Communication and well-developed people skills
Explanation:
Since the team comprises of workers who come from different countries, the best tool is the communication and well developed people skill.
These skills are vital when interacting and communicating with others. Since they're from different countries, communication skill is required to build a relationship with them, motivate them and achieve organizational goals.
A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.
a) true
b) false
Answer:
This practice may be a violation of U.S. law.
a) true
Explanation:
To protect local industries from unfair competition from other countries, the US enforces antidumping and countervailing laws. The laws seek to investigate, prevent, and impose adequate tariffs on imported goods that are priced lower in the U.S. market than in the exporting country's market or imported goods that are subsidized by the exporting country's government.
Income statement information for Einsworth Corporation follows: Sales $1,500,000 Cost of goods sold 900,000 Gross profit 600,000 Prepare a vertical analysis of the income statement for Einsworth Corporation.
Answer:
A vertical analysis income statement uses Sales as a base and makes everything else a percentage of sales.
Vertical Analysis Statement
Amount Percentage
Sales $1,500,000 100%
Cost of Goods sold ($900,000) 60%
Gross Profit $600,000 40%
Cost of Goods sold percentage = 900,000 / 1,500,000
= 60%
Gross Profit percentage = 600,000 / 1,500,000
= 40%
The following errors took place in journalizing and posting transactions:
a. The receipt of $8,400 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned.
b. The purchase of supplies of $2,500 on account was recorded as a debit to Office Equipment and a credit to Supplies.
Journalize the entries to correct the errors. Omit explanations.
Answer: See explanation
Explanation:
The journal entry to correct the errors is given below:
a. Dr Cash $8400
Cr Account receivable $8400
b. Dr Supplies $2500
Cr Office equipment $2500
Dr Supplies $2500
Cr Account Payable $2500
Note that the first entry that's given in (b) above reverses the incorrect entry. On the other hand, the second entry simply records the correct entry.
countries A,B, and C with respective total populations 50 million, 18 million, and 15 million also have annual GDP as:
A - 428$ billion, B- 20$ billion, and C- $7billion, what are the countries; annual GDP per person
A) A= $466 , B= 1111 and C = 8560
B) no correct option
C) A= $1111 B= 466 and C = 8560
D) A = $8560 ,B= $11111 and C= 466$
Answer: D. A = $8560 ,B= $11111 and C= 466$
Explanation:
Country A
Annual GDP = $428 billion
Population = 50 million
Annual GDP per person = $428 billion / 50 million = $8560
Country B
Annual GDP = $20 billion
Population = 18 million
Annual GDP per person = $20 billion / 18 million = $1111
Country C
Annual GDP = $7 billion
Population = 15 million
Annual GDP per person = $7 billion / 15 million = $466.
The correct option is D.
RESPETAR LA CAPACIDAD DE CARGA DE UN DESTINO TURISTICO, LE ALARGA LA VIDA UTIL.
Answer:
La afirmación es correcta.
Explanation:
La capacidad de carga es el número de individuos de una especie determinada que puede ser sostenido por un medio ambiente. En general, la capacidad de carga se logra en algún momento porque las especies tienden inherentemente a reproducirse. Por ejemplo, si hay comida para 100 peces en un estanque, la capacidad de carga del estanque es para 100 peces. En la actualidad, no se sabe con certeza cuántas personas podrá sostener la Tierra, pero se ha argumentado que la población humana en la Tierra ya ha superado el límite de la capacidad de carga del planeta.
Cuando una población (individuos de una especie en un área) excede su capacidad de carga a medida que crece, a menudo colapsa, ya que una población sobredimensionada destruye sus propias condiciones de vida.
Airline Accessories has the following current assets: cash, $93 million; receivables, $85 million; inventory, $173 million; and other current assets, $9 million. Airline Accessories has the following liabilities: accounts payable, $80 million; current portion of long-term debt, $26 million; and long-term debt, $14 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)
Answer:
See below
Explanation:
1. The current ratio is the sum of current assets divided by current liabilities. It used to measure the ability of the airlines accessories to meet its short term obligation due within a year
Current ratio = $93 million + $85 million + $9 million / $80 million + $26 million
Current ratio = $187 million / $106 million
Current ratio = 1.76:1
Current ratio = 1.76 times
2. Acid test ratio. This measure liquidity but with adjustment for risky current assets i.e Inventory
Acid test ratio = Current assets - Inventories / Current liabilities
Acid test ratio = ($187 million - $173 million) / $106 million
Acid test ratio = $14 million / $106 million
Acid test ratio = 0.13:1
Acid test ratio = 0.13 times
If an agent injures a third party during the course of employment, to what extent should the employer be held liable? Under what circumstances should the agent be held personally liable? Provide an example to illustrate your opinion.
Answer:
The employer will be held liable.
Explanation:
If the external agent brings harm or injury to a third party in the course of an employment, the employer is held liable. When a principal directs an agent to commit for a tort or if the principal is aware of the consequences of carrying the instructions of the agent could cause harm or injure the person, then the principal is liable.
It is called direct liability.
The liability for the intentional tort which is imputed to the principal when the agent acts to further the business of the principal.
The agent is personally liable under the following circumstances :
Foreign principalAgent signs the contract in his own nameNon-existent principal Principal cannot be sued:Undisclosed principalExample :
A credit card company hires a sales person and offers a company van to make sales in that area. The sales person uses the office van to official purposes. But one night, he drove the car to a friend's party and while coming he drove over a pedestrian. In this case, the owner of the company will not be held liable as the sales person uses the company van for his personal use while going out for party with his friends. While causing the accident, the sales person was not not using the office van for official purposes and was not tendering official duties at that time.
Identify and explainthe benefits and problems associated with high economic growth
Answer:
Kindly check explanation
Explanation:
High economic growth is usually the aim of several economic policies whichnmost countries try to employ. The reason for this is no other than the numerous benefits attached to it which includes;
Increase in GDP : With growth in the economy of a country, trading within and outside these countries will rise, leading to increase in revenue earned and hence, the gross domestic product. This will pave the way for :
Infrastructural development : The development of infrastructure and standard society will be on the horizon as the economy grows. There is enough capital to embark on infrastructural development which will serve the populees
Other benefits include ; Trade and investment opportunities ; Increase in foreign direct investment and employment level will increase.
High economic growth also has it's drawbacks which include ;
Higj Immigration level ; Businesses and individuals are always on the lookout for areas with good investment opportunity in which an high income society is usually a main target. With increasing immigration, overcrowding may result.
Also, Investment cost may begin to rise, coupled with increase in foreign investment influx, the local market may be at risk of being able to compete.