Answer:
False
Explanation:
The profit maximizing rule is the rule in which the Marginal cost is equivalent to the Marginal revenue
i.e.
Marginal revenue = Marginal cost
MR = MC
In the case of perfect competition,
P = MC
Price = Marginal cost
For the firms that are price maker, in this the demand is downward and the marginal revenue is below to the demand curve
So
in this,
The price > MR = MC
Therefore this is not a sufficient condition
Hence, the given statement is false
During the first month of operations, Wortham Services, Inc., completed the following transactions:
Jan 2 Wortham Services received $65,000 cash and issued common stock to the stockholders.
3 Purchased supplies, $1,000, and equipment, $12,000, on account.
4 Performed services for a customer and received cash, $5,500.
7 Paid cash to acquire land, $39,000.
11 Performed services for a customer and billed the customer, $4,100. Wortham expects to collect within one month
16 Paid for the equipment purchased January 3 on account.
17 Paid for newspaper advertising, $600.
18 Received partial payment from customer on account, $2,000.
22 Paid the water and electricity bills, $430.
29 Received $2,600 cash for servicing the heating unit of a customer.
31 Paid employee salary, $2,900.
31 Declared and paid dividends of $1,800.
Requirements
1. Record each transaction in the journal. Key each transaction by date. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting references. Label the ending balance of each account Bal, as shown in the chapter.
3. Prepare the trial balance of Wortham Services, Inc., at January 31 of the current year.
4. Mark Wortham, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether January was proîtable (and by how much).
Answer and Explanation:
Please find attachment:
4. Solution-
To get total resources we add up the assets of the firm = Cash + Accounts receivable + Supplies +Equipment + Land
= $18,370 + $2,100 +$1,000 +$12,000 +$39,000
= $72,740
How much does the business owe = Salary expense + Utilities expense - Accounts payable
= $2,900 + $1,030 - $1,000
= $2,930
Each of the following situations contains an assumption about price elasticity of demand. What is the assumption? For each situation state whether the assumption is accurate and explain your reasoning.
a. Sky King, world traveler, says if the airlines want to increase total revenue, they should lower fares for business travelers as well as for vacationers.
b. Both groups should respond equally to a price decrease
c. Bill Smith, a candidate for the state legislature, is proposing a large increase in the tax on cigarettes and liquor. He says "I'm not proposing these taxes to raise revenue but to discourage reckless drinking and the filthy smoking habit. If the price of cigarettes and liquor go up, the majority of people will quit using them. After all no one needs to smoke or drink?"
Answer:
a. Sky King, world traveler, says if the airlines want to increase total revenue, they should lower fares for business travelers as well as for vacationers.
Sky King is assuming that the demand for airline tickets is price elastic, This means that a small decrease in the price of airline tickets will result in a proportionally larger increase of the quantity demanded. This will ultimately result in an increase of total revenue, e.g. price decreases by 5%, but quantity demanded in creases by 15%.
b. Both groups should respond equally to a price decrease
I guess that this question is related to the first question. If both groups of consumers respond equally to a price decrease, it means that both groups have exactly the same price elasticity of demand. This is usually not very common, theoretically it is possible, but generally business travelers have a more inelastic demand while vacationers tend to have a more elastic demand.
c. Bill Smith, a candidate for the state legislature, is proposing a large increase in the tax on cigarettes and liquor. He says "I'm not proposing these taxes to raise revenue but to discourage reckless drinking and the filthy smoking habit. If the price of cigarettes and liquor go up, the majority of people will quit using them. After all no one needs to smoke or drink?"
Bill believes that both cigarettes and liquor have an elastic demand since he believes that an increase in the price of cigarettes and liquor will result in consumers quitting. It applies the same logic as the first scenario, but on an inverse situation. You want to lower consumption, and increasing the price should do it. empirical evidence suggests that Bill is wrong, since people who like to drink or smoke will continue to do it regardless of the price. They might change for cheaper brands or ultimately, they will stop consuming other goods in order to be able to afford consuming cigarettes and liquor. Alcohol is by far the most dangerous and lethal drug in the world and the main problem with it is that people will do anything to get it. I'm not so sure about cigarettes, but since it also develops an addiction, the bad effects should be the same.
Lakewood Jet Skis has budgeted sales for June and July at and , respectively. Sales are % credit, of which % is collected in the month of the sale and % is collected in the following month. What is the accounts receivable balance on July 31?
Question
Lakewood Jet Skis has budgeted sales for June and July at $420,000 and $480,000, respectively. Sales are 75% credit, of which 40% is collected in the month of sale and 60% is collected in the following month. What is the accounts receivable balance on July 31?
Answer:
Total cash received in July= $453,000
Explanation:
Cash sales : 25% × July sales = 25% × 480,000= 120,000
40% month of sales
40%× 75%× July sales
40%× 75%× 480,000= 144,000
60% following month:
= 60%× 75%× June sales
= 60%× 75%× 420,000 = 189000
Total cash received in July =120,000 + 144,000 + 189,000 =453,000
Total cash received in July= $453,000
Note hat 75% of the total sales is on credit , therefore the balance (25%) would be represent credit sales
Fellingham Corporation purchased equipment on January 1, 2019, for $400,000. The company estimated the equipment would have a useful life of 10 years with a $40,000 residual value. Fellingham uses the straight-line depreciation method. Early in 2021, Fellingham reassessed the equipment's condition and determined that it has a remaining useful life of four years and that it would have no salvage value. Which of the following values is the closest to what Fellingham reports as depreciation on this equipment for 2021?
a. $50,240.
b. $36,960.
c. $52,440.
d. $55,440.
Answer:
Answer not in the given option, please recheck for error.
depreciation in 2021 would be= $82,000
Explanation:
Depreciation incurrred in 2019:
Using straight line depreciation = original cost - salvage value / useful life
=(400,000-40,000)/10
=$36,000
The depreciation from January 1, 2019 to December 31st 2020 = 2 years
therefore depreciation for the two years = $36,000 x 2 = $72,000
Book value recorded early 2021= Original cost - the A ccumulated Deprecaition
= 400,000- 72,000= $328,000
But Remaining useful life =4 years with no salvge value
Therefore depreciation in 2021 would be = Cost - salvage value / useful life
($328,000 - 0)/4
= $82,000
Why is the program predictability measure the primary Metric used during the quantitative measurement part of the Inspect and Adapt event? g
Answer:
In simple words, It is difficult to keep control of the general consistency of ART centered on the consolidated success of the different teams reflected in the Company Value (BV) goals. The system repetition Measurement indicators demonstrates a comparative study of the real BV accomplished by the organised BV.
The Inspection and Adaptation (I&A) is a major process that takes place at the conclusion of each Process parameter (PI) in which the existing state of the System is illustrated and assessed by train. Members of the team then reinforce and define backlog enhancement items through an organised, problem-solving session.
Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2013.
Sales revenue $ 492,000
Salaries expense 80,000
Interest revenue 6,000
Advertising expense 10,000
Gain on sale of investments 8,000
Cost of goods sold 284,000
Insurance expense 12,000
Interest expense 4,000
Income tax expense 30,000
Depreciation expense 20,000
Required:
Prepare the necessary closing entries at December 31, 2013
Record the closure of revenue accounts.
Record the closure of expense accounts.
Record the transfer of the net profit.
Answer and Explanation:
The journal entries are shown below:
Sales Revenue $492,000
Interest Revenue $6,000
Gains on Sale of Investment $8,000
To Profit or Loss $506.000
(being the closing of revenue accounts is recorded)
Profit or Loss $440,000
To Salaries Expense $80,000
To Advertising Expense $10,000
To Cost of Goods Sold $284,000
To Insurance Expense $12,000
To Interest Expense $4,000
To Income Tax Expense $30,000
To Depreciation Expense $20,000
(being the closing of expenses accounts is recorded)
Net Income $66,000 ($506,000 - $440,000)
To Profit or Loss $66,000
(being Recording of profit earned)
"A 25-year old single client has just started his own small business and is not covered by a retirement plan. He has $5,000 to invest and currently has a low level of income. He wishes to start saving for retirement. The BEST recommendation is a:"
Answer:
The BEST recommendation is a ROTH IRA.
Explanation:
The ROTH IRA is far better for this 25-year old with current low income. His contributions will be tax at a low tax-bracket, thus making his withdrawals at retirement tax-free. The ROTH IRA is not ideal for high income earners because ordinarily their income will be above the allowed threshold. The ROTH IRA contrasts sharply with the Traditional IRA where the contributions are made tax-free but the withdrawals are taxed.
To complete the first setup on a new machine took an employee 280 minutes. Using an 75% cumulative average−time learning curve indicates that the second setup on the new machine is expected to take ________.
Answer: 140 minutes
Explanation:
From the question, we are informed that to complete the first setup on a new machine took an employee 280 minutes. Using an 75% cumulative average−time learning curve indicates that the second setup on the new machine is expected to take:
We first multiply the 75% cumulative average−time by the 280 minutes used. This will be:
= 280 × 75%
= 280 × 0.75
= 210
(280 + y)/2 = 210
280 + y = 210 × 2
280 + y = 420
y = 420 - 280
y = 140 minutes
A pattern in which the aggregate time per unit is lessened by a consistent rate each time the combined volume of parts produced is multiplied is called the cumulative average−time learning curve model.
The second setup on the new machine is expected to take 140 minutes.
This can be estimated by:
Time required by the employee for setting the first step = 280 minutesAccording to the 75% cumulative average−time learning curve:
[tex]=280 \times 75\%[/tex]
[tex]= 280 \times 0.75[/tex]
= 210
Let y = time required for the second setup then,
[tex]\dfrac{(280 + \text{y})}{2} = 210[/tex]
[tex]280 + \text{y} = 210 \times 2[/tex]
[tex]280 + \text{y} = 420[/tex]
[tex]\text{y} = 420 - 280[/tex]
[tex]\text{y} = 140\; \text{minutes}[/tex]
Therefore it will take 140 minutes for the second setup.
To learn more about the cumulative average−time learning curve follow the link:
https://brainly.com/question/14301678
The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145.
Answer:
The effect of the accounts payable (A/P) clerk will eventually be a fraud.
Explanation:
Note: This question is not complete. A complete question is therefore provided before answering the question as follows:
The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145.
Eventually, what will be the effect of her actions?
The explanation to the answer is now given as follows:
Fraud can be described as an intentional wrongful or criminal deception that is designed in such a that it will give the perpetrator financial or personal gain that is not lawful.
In order to identify and prevent fraud, each company usually put in place what is known as fraud detection. Fraud detection refers to different activities that designed for the purpose of safeguarding the money, property and other valuables from being stolen or unlawfully taken through false pretenses.
When there is no frau detection in a company, it will be asy to carry out the kind of actions of the the A/P clerk in the question and it will always result in a fraud.
Therefore, the effect of the accounts payable (A/P) clerk will eventually be a fraud.
Romona Company expects its November sales to be % higher than its October sales of . All sales are on credit and are collected as follows: % in the month of the sale and % in the following month. Purchases were in October and are expected to be in November. Purchases are paid % in the month of purchase and % in the following month. The cash balance on November 1 is . The cash balance on November 30 will be
Answer:
$95,050
Explanation:
Calculation to determine the cash balance on November 30
First step is to find the November sale using this formula
November sale = October sale × (1 + rate of increase)
Let plug in the formula
November sale = 210,000 × (1 + 0.15)
November sale = 210,000 × 1.15 November sale = 241,500
Second is to calculate for the Collection for sale using this formula
Collection for sale = November sale × 30% + October sale × 65%
Let plug in the formula
Collection for sale = 241,500 × 30% + 210,000 × 65%
Collection for sale = 72,450 + 136,500
Collection for sale= 208,950
The third step is to calculate for Payment for purchases
Using this formula
Payment for purchases = November purchases × 30% + October purchases × 70%
Let plug in the formula
Payment for purchases= 190,000 × 30% + 100,000 × 70%
Payment for purchases = 57,000 + 70,000
Payment for purchases =127,000
The last step is to calculate for the cash balance on November 30
Cash balance on November 30 = November 1 Beginning Cash + Collection for sale -Payment for purchases
Let plug in the formula
Cash balance on November 30 = 13,100 + 208,950 - 127,000
Cash balance on November 30 =$95,050
Therefore the cash balance on November 30 will be $95,050
Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated with a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted average
What does P/E Ratio of a 10 indicate?
a. It would take 10 years for an investor to recover his or her initial investment
b. The firm will pay a dividend of $10 per share.
c. The value of the stock will be 10 times the initial investment at the time of maturity.
d. An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation
Answer:
1. Measure of the percentage change in earnings before interest and tax or operating cash flow:
B) Degree of operating leverage
2. P/E Ratio of 10 indicates that:
c. The value of the stock will be 10 times the initial investment at the time of maturity.
Explanation:
Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue. With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income. There are many ways to measure a company's degree of operating leverage. One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.
Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share. It is used to evaluate the value of the company's stock. It points out whether the company's stock is undervalued, overvalued, or correctly valued.
If the slope for an equation using customer satisfaction to predict profits is 2.4, this means that ________.
Answer: a.Increasing customer satisfaction by one unit will increase profits by 2.4
Explanation:
Slopes measure the change in the dependent variable as a result of a change in the independent variable.
In the above scenario, if customer satisfaction was being used to predict profits that would mean that customer satisfaction is the independent variable and profits are the dependent variable. With a slope of 2.4 therefore, the meaning is that if customer satisfaction increases by 1 then the profits for the company will increase by 2.4.
For instance if customer satisfaction in a hotel was increased by 1 unit for 1,000 customers, the company can expect an increase in profits of $2,400.
Twelve years after Starfire's appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges $3 for a mug of hot cocoa and a similar community experience. How would you characterize this scenario
Answer:
Price competition in a monopolistically competitive market
Explanation:
The Monopolistic rivalry is an industry state with several firms that are closely linked to each other but offer distinct goods. Therefore, this sector has unlimited entry and exit
Here the company offers the same service but there are totally different in terms of design, service, quality, etc
Hence, the correct option is c
Bob has been investing $4,500 in stock at the end of every year for the past 11 years. If the account is currently worth $84,300, what was his annual return on this investment
Answer:
Annual return = 30.52%
Explanation:
The annual return is the average rate of return earning over the investment period assuming interest rate is compounded annually.
This can be worked using the formula below:
Annual rate of return=(C/I)^1/n - 1 × 100
C= Current value
I-Initial cost
n- Number of years
Current Value = 84,300
Initial amount invested= 4,500
n-11
Annual return = (84,300/4,500)^(1/11) - 1 × 100
= 0.3052 × 100 = 30.52%
Annual return = 30.52%
E11-22A (similar to) Question Help The Garver Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Garver's purchased and used 103,000 pounds of potatoes at a price of $0.85 per pound. During the week, 1,700 direct labor hours were incurred in the plant at a rate of $12.35 per hour. The standard price per pound of potatoes is $1.00, and the standard direct labor rate is $12.05 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 101,000 pounds of potatoes and 1,400 hours of direct labor. Read the requirementsLOADING.... Requirement 1. Determine the direct material price and quantity variances. Be sure to label each variance as favorable or unfavorable. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.) Begin by determining the formula for the price variance, then compute the price variance for direct materials.
Answer:
Please see answer below
Explanation:
This is an incomplete question. However, other parts of the question have been added as extracted .
1. Determine the direct material price and quantity variances
Direct material price variance
= (Actual price - Standard price) × Purchase quantity
= ($0.85 - $1) × 103,000
= $15,450 Favorable
Direct material quantity variance
= (Actual quantity - Standard quantity) × Standard price
= (103,000 - 101,000) × $1
= $2,000 Unfavorable
2. Think of a plausible explanation for the variances found in requirement 1.
°For direct material price variance, the possible reasons for the variance are shortage of raw materials, discount application etc. However, variance was favorable because the direct material was purchased for lesser amount compared to the standard price.
°For direct material quantity variance, possible causes of variance are low quality of raw materials, incorrect specification of raw materials, damage during production processes. However, the variance was unfavorable because
the actual quantity used is more than the standard quantity that ought to have been used.
3. Determine the direct labor rate and efficiency variance
Direct labour rate variance
= (Actual rate - Standard rate) × Actual hours worked
= ($12.35 - $12.05) × 1,700
= $510 Unfavorable
Direct labor efficiency variance
= (Actual hours worked - Standard hours worked) × Standard rate
= (1,700 - 1,400) × $12.05
= $3,615 Unfavorable
4. Could the explanation for the labor variances be tied to material variances.
No. The total labor variance could be as a result of money paid to laborers which be could be lower or higher than the standard rate and using either less or more direct labor hours than expected.
David, Chris and John formed a partnership on July 31, 2019. They decided to share profits equally, but inserted a clause in the partnership agreement where any losses would be allocated in the ratio of ::, respectively. For the year ended December 31, 2019, the firm earned a net income of . However, for the year ended December 31, 2020, the firm incurred a loss of . Assuming that John had an initial capital contribution of and made no withdrawals, what is the balance of John's Capital account as of December 31, 2020? (Assume that none of the partners made any further contributions to their capital accounts. Do not round any percentage calculations. Round all monetary calculations to the nearest dollar.)
Answer:
$37,833
Explanation:
Calculation for the balance of John's Capital account as of December 31, 2020.
Using this formula
Balance as of December 31, 2020= Initial contribution + Profit for December 31, 2019 - Loss for December 31, 2020
Let plug in the formula
Balance as of December 31, 2020= $39,000 + ( $46,000/3) - ( $55,000/10×3)
Balance as of December 31, 2020= $39,000 + $15,333 - $16,500
Balance as of December 31, 2020= $37,833
Therefore the balance of John's Capital account as of December 31, 2020 will be $37,833
the hosiery departments net dsales are 30,000 and the total store net sales are 1,200,000. what is the hosiery departments % of total sales
Answer:
2.5%
Explanation:
(30,000 / 1,200,000) X 100 = 2.5%
We have said that strategic management is an evolution and a destination. What does this mean? Discuss in detail
Explanation:
Strategic management is an evolution and a destination due to the fact that the organizational strategy is developed in pursuit of objectives and goals. This means that action plans for achieving goals can be changed according to internal or external interference.
A company's strategy is not inert, so strategic management will be carried out according to the market situation, the internal environment and other variables, so that there is monitoring, organization and strategic coordination of the company according to its environment.
Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
Quantity Unit Cost Total Cost
Beginning inventory (Jan. 1) 17 8 136
Purchase (Jan. 11) 9 14 126
Purchase (Jan. 20) 20 16 320
Total 46 582
On January 14, Beech Soda, Inc. sold 22 units of this product. The other 24 units remained in inventory at January 31. Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:__________
Answer:
the cost of goods sold to be recorded at January 14 is: $230 .
Explanation:
LIFO (Last in First out) method, assumes that the last goods purchased are the first ones to be issued to the final customer.
This means that valuation of inventory will begin using the value of the earliest goods purchased.
The Cost of goods sold is calculated as follows :
Cost of goods sold : 9 units × $14 = $126
13 units × $8 = $104
Total = $230
Answer:
$230
Explanation:
Quantity Unit Cost Total Cost
Beginning inventory (Jan. 1) 17 $8 $136
Purchase (Jan. 11) 9 $14 $126
Purchase (Jan. 20) 20 $16 $320
Total 46 $582
sales:
January 14, 22 units sold
cost of goods sold under LIFO = (9 x $14) + (13 x $8) = $126 + $104 = $230
cost of goods sold under FIFO = (5 x $14) + (17 x $8) = $70 + $136 = $206
cost of goods sold under average cost = ($262 / 26) x 22 = $221.69
The ________ approach to developing a positioning strategy involves positioning apart from competitors through the creation or use of some recognized icon.
Answer:
Cultural symbol
Explanation:
A cultural symbol is a physical demonstration that signifies the ideology of a particular culture or that merely has meaning within a culture. Culture is an aggregation of the beliefs, traditions, language and values of a particular group/set of people.
A symbol has meaning within a culture, because of the shared understanding of what the symbol signifies. Stories, traditions, history, and cultural norms contribute to the meaning of a symbol. Most time at the basic level, symbols are important because they help people craft meaning in their interactions with one another.
The statement, "I will read a book when I get bored so as to improve my mind," is a __________.
a. Maximuniversal law
b. Formulation
c. Categorical imperative
Answer:
a. Maximuniversal law
Explanation:
Maxim and universal law is propounded by Immanuel Kant. To him, Maxim is your reason for acting. The formula of universal law therefore says that you should only act for those reasons which have the following characteristic: you can act for that reason while at the same time willing that it be a universal law that everyone adopt that reason for acting.
The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discount rate of 20%, the present value of future cost savings is estimated at $51,200. To yield the 20% return, the actual cost of the van should not exceed the $50,000 estimate by more than:
Answer:
$1,200
Explanation:
The reason is that the net present value of the decision to buy delivery van is:
NPV = Present Value of Net Savings - Investment
Here
Present Value of Net Savings are $51,200
Investment is $50,000
By putting values in the above equation, we have:
= $51,200 - $50,000 = $1,200
This means that the cost of the van must not exceed by $1,200 at a 20% yield because it will alter the decision of purchasing the delivery van.
. Which one of the following is an example of an economic good? (a) visit to a dentist (b) pair of sneakers (c) lesson taught by your teacher (d) ride on a bus.
Answer:
b
Explanation:
b :because an enconomic good is something you pay for
An example of an economic good is pair of sneakers. Thus the correct option is B.
What is Economic good?A product or service with a social benefit is referred to as an economic good. It is a good or service that benefits people but it also costs money. It is used to fulfill human needs, which involve an exchange of something.
The economy of any country is determined by the ratio of production and consumption that takes place within a year and evaluates the flow of funds in the market by analyzing the purchasing parity of an individual.
A pair of sneakers is considered an economic good as it reflects an exchange where the seller receives the cash or any form of money whereas the buyer receives the shoes as a product.
Therefore, option B is appropriate.
Learn more about the Economy, here:
https://brainly.com/question/2421251
#SPJ2
Tremonti, Inc., is obligated to pay its creditors $7,900 during the year. a. What is the value of the shareholders’ equity if assets equal $9,100? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the value of the shareholders’ equity if assets equal $6,900? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
A.$1,200
B. $0
Explanation:
A. Calculation for the value of the shareholders’ equity if assets equal $9,100
Using this formula
Shareholders’ equity=Maximum[(Assets - Liabilities),0]
Let plug in the formula
Shareholders’ equity=Maximum[($9,100-$7,900),0]
Shareholders’ equity=$1,200
B. Calculation for the value of the shareholders’ equity if assets equal $6,900
Using this formula
Shareholders’ equity=Maximum[(Assets - Liabilities),0]
Let plug in the formula
Shareholders’ equity=Maximum[($6,900 -$7,900),0]
Shareholders’ equity=$0
Therefore the value of the shareholders’ equity if assets equal $9,100 will be $1,200 because the assets is higher than the liabilities while the value of the shareholders’ equity if assets equal $6,900 will be $0 because the Liabilities is higher than the assets.
Refer to the accompanying national income statistics (in billions of dollars). Personal income is Multiple Choice $317 billion. $376 billion. $372 billion. $483 billion.
Unclear question. I provided some information on national income statistics.
Explanation:
The national income statistics is an economic indicator that tells us the value of goods and services (as in this case in billion of dollars) produced by a country's economy.
Information about the national income statistics of a country is usually published by the World Bank; an internal financial institution.
In each of the following cases, calculate the accounting break even and the cash break even points. Ignore any tax effects in calculating the cash break-even.
Unit Variable
Case Unit Price Cost Fixed Costs Depreciation
1 $2,800 $2,295 $7,000,000 $1,250,000
2 51 43 65,000 160,000
3 12 4 1,800 700
Answer:
Case 1 Accounting break-even point = 13,861 units
Case 1 Cash break-even point = 11,286 units
Case 2 Accounting break-even point = 20,000 units
Case 2 Cash break-even point = 11,875 units
Case 3 Accounting break-even point = 225 units
Case 3 Cash break-even point = 138 units
Explanation:
Break even point refers to the point or sales unit where total cost is equal to total revenue. That is, both total revenue and total cost at the point are even and there neither profit nor loss.
Break even point can be computed for accounting break even and the cash break even points. The difference between the two is that accounting break even point include depreciation in the fixed cost while the cash break even point deduct non cash expenses from the fixed cost. The formula for the are as follows:
Accounting break even point = Fixed cost / (Unit price - Unit cost)
Cash break even point = (Fixed cost - Depreciation) / (Unit price - Unit cost)
Using the two formula for this question, we have:
Case 1 Accounting break even point = $7,000,000 / ($2,800 - $2,295) = $7,000,000 / $505 = 13,861 units
Case 1 Cash break even point = ($7,000,000 - $1,250,000) / ($2,800 - $2,295) = $5,750,000 / $505 = 11,286 units
Case 2 Accounting break even point = $160,000 / (51 - 43) = $160,000 / $8 = 20,000 units
Case 2 Cash break even point = ($160,000 - $65,000) / (51 - 43) = $95,000 / $8 = 11,875 units
Case 3 Accounting break even point = $1,800 / (12 - 4) = $1,800 / $8 = 225 units
Case 3 Cash break even point = ($1,800 - $700) / (12 - 4) = $1,100 / $8 = 138 units
Boeing is planning a new aircraft. Customers want more fuel efficiency without sacrificing any features of the current models. To make improvements, Boeing will need several years to develop new methods and tools. Their plans are
Answer:
Long term
Explanation:
A business needs to plan in order to meet it business objectives and also to adequately satisfy the customer.
Short term plans are those that meet immediate business and customer needs. The require less preparation and cost to implement.
Long term plans require more planning and are meant to meet long term objective of the business. Cost is also higher than for short term plans.
In this scenario Boeing needs several years to develop an aircraft that has more fuel efficiency. So their plans are long term and aimed to satisfy customer needs.
What is the risk-free rate if beta is 1.1, the expected return 8.4% and the expected return for the market portfolio is 8%
Answer:
4%
Explanation:
Given the following :
Beta (B) = 1.1
Expected return (Re) = 8.4%
Expected return for market portfolio (Rm) = 8%
Using the relation :
Re = [ Rf + ((Rm - Rf) * B)]
We are to calculate Rf(risk-free rate)
Inputting our values :
8.4% = [Rf + ((8% - Rf) * 1.1]
8.4% = Rf + 8.8% - 1.1Rf
8.4% - 8.8% = Rf - 1.1Rf
- 0.4% = - 0.1Rf
- 0.004 = - 0.1Rf
Rf = 0.004 / 0.1
Rf = 0.04
0.04 * 100%
= 4%
Vaughn Manufacturing borrowed $399000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31?
Answer:
Interest recognized is $35,910
Explanation:
The computation of interest recognized is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $399,000 × 12% × (9 months ÷ 12 months)
= $35,910
The 3 months is calculated from April 1 to December 31
Hence, the interest i.e. to be recognized is $35,910
The Canadian government decides to offer tax concessions to foreign companies that agree to build a manufacturing facility in Canada. This tax concession is a way to
a. encourage inward FDI.
b. discourage inward FDI.
c. encourage outward FDI.
d. discourage outward MNE.
e. discourage inward MNE.