Answer:
When owners are separated from the business
Explanation:
Agency conflict arises when ownership is separated from management and management have to take decision to maximize wealth of owner instead of themselves.
Hence when owners are separated from the business is the correct answer.
Inventory turnover measures a.the relationship between cost of goods sold and the amount of inventory carried during the period. b.the times purchases are turned into inventory during the period. c.the efficiency and effectiveness of costing management. d.the average amount of inventory sold.
Answer:
a. the relationship between cost of goods sold and the amount of inventory carried during the period.
Explanation:
An inventory turnover can be defined as a measure of the relationship between cost of goods sold (COGS) and the amount of inventory carried during the period the goods were purchased by the consumers or customers of a business firm.
This ultimately implies that, an inventory turnover is a measure of the amount of times an inventory is used or sold by an organization at a specific period of time.
Basically, the inventory turnover is calculated by dividing cost of goods sold by average inventory.
Additionally, the Expense Account selected by a manufacturer or a producer for inventory parts would normally comprise of the account type Cost of Goods Sold.
What are the hours of operation (local standard time) of the Cascade Approach/Departure Control when flying into Medford Airport
Answer:
The answer is "0600 - 2330".
Explanation:
Alaska Airlines, allegiant, Union, and Delta are airports that service MFR. Flights to Seattle, San Francisco, Salt Lake City, Oregon, San Francisco, & Portland are provided by those airlines. The Cascades Approach/Departure Management requires 0600 - 2330 hours of operation (local standard time) while flying to Medford Airport.
Elk, a C corporation, has $370,000 operating income and $290,000 operating expenses during the current year. In addition, Elk has a $10,000 long-term capital gain and a $17,000 short-term capital loss. Elk's taxable income is:
Answer:
$80,000
Explanation:
Calculation to determine what Elk's taxable income is:
Using this formula
Taxable income=Operating income-Operating expenses
Let plug in the formula
Taxable income=$370,000-$290,000
Taxable income=$80,000
Therefore Elk's taxable income is:$80,000
aner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given: Assume that Minneapolis’ sales by major market are: Market Minneapolis Medical Dental Sales $ 600,000 100 % $ 400,000 100 % $ 200,000 100 % Variable expenses 360,000 60 % 260,000 65 % 100,000 50 % Contribution margin 240,000 40 % 140,000 35 % 100,000 50 % Traceable fixed expenses 72,000 12 % 20,000 5 % 52,000 26 % Market segment margin 168,000 28 % $ 120,000 30 % $ 48,000 24 % Common fixed expenses not traceable to markets 18,000 3 % Office segment margin $ 150,000 25 % The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $8,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $70,000 or increase sales in the Dental market by $60,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?
Answer:
1. $ 136,500
2. $70000
3. Medical market
Explanation:
1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET
First is to calculate the sales
Sales = (400 000 + 70 000)
Sales = $470 000
Second step is to calculate the profit
Variable cost =$470 000 *65%
Variable cost=$305 500
Contribution =$470 000*35%
Contribution =$164,500
Fixed Expense= $28 000
Profit = $ 136,500
Now let calculate the Difference made by advertisement
Difference = 136500 - 120000
Difference=16500
2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the
DENTAL MARKET
vcr Of The Dental market = 50%
Variable cost =50% $260 000
Variable cost = $130 000
Contribution = $130 000
Fixed expenses = $60 000
Profit = $70000
Now let determine difference made by the advertisement
Difference =(70000) - 48000
Difference= 22000
3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market
Justin builds fences for a living. Justin's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his own time amount to his a. profit. b. producer surplus. c. cost of building fences.
Answer:
c. Cost of building fences.
Explanation:
The cost of production encompasses the money spend as well as the time to produce a commodity. For example, if a person spends $15 to make a juice cup and invest 1 hour to make so the total cost of production is $15 and the time invested by the producer. Thus, option "c" is correct.
Internal control procedures for cash receipts do not require that:_____.
a. Custody over cash is kept separate from its recordkeeping.
b. All collections for sales are received immediately upon making the sales.
c. Clerks having access to cash in a cash register should not have access to the register tape or file.
d. An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
e. Cash sales should be recorded on a cash register at the time of each sale.
f. All of these.
Answer:
b. All collections for sales are received immediately upon making the sales.
Explanation:
Internal control, regarded as a process used in assuring objective of an organization in operational effectiveness as well as efficiency and reliable financial reporting, it is also used in assuring of compliance with laws as well as regulations and policies. Generally, internal control can be described as everything which is able to controls risks to an organization. It is a way the
resources of an organization are been
measured as well as been directed and monitored.
It should be noted that Internal control procedures for cash receipts require that:.
✓Custody over cash is kept separate from its recordkeeping.
✓Clerks having access to cash in a cash register should not have access to the register tape or file.
✓An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
✓Cash sales should be recorded on a cash register at the time of each sale
Draw supply and demand graphs that estimate what will happen to demand, supply, and the equilibrium price of coffee if these events occur: Widely reported medical studies suggest that coffee drinkers are less likely to develop certain diseases.
Answer:
Please find the required diagram in the attached image
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
As a result of the study, there would be an increase in the demand for coffee. This would shift the demand curve to the right. As a result, there would an increase in equilibrium price and quantity
Many business leaders today give up having a private office, and instead work at a desk or cubicle in the middle of the work area to be among other employees. What effect do you think this work area placement has on their power
Answer:
Napoleon once ordered his men on a near suicidal charge against the Austrians and they did exactly what he told them to because they were so inspired by him. This inspiration came from the fact that even though he was their commander, he was on the front lines with them and personally overseeing the artillery bombardment of the enemy.
This is the kind of effect that the business leader staying in the middle of the work area can have. The leader would be amongst their subordinates and by working hard, could inspire them to work hard themselves. This would increase the respect that the employees have of the leader and by extension, the leader's power over them.
Should the leader turn out to be lazy however, an opposite situation could result where the leader's power is diminished as their laziness would be on full display for the workers. who would then lose respect for the leader.
Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8.
Based on the preceding information, what would be the correct account balances for 20X7 if Gotham City used the purchase method of accounting for inventories?
Answer:
$25,000; $8,000
Explanation:
Based on the information given , we were told that they acquires the amount of $25,000 of inventory on NOVEMBER 1, 20X7, in which on DECEMBER 31, 20X7, a PHYSICAL COUNT shows $8,000 was still in stock which means wthat the CORRECT ACCOUNT BALANCES for 20X7 if Gotham City used the PURCHASE METHOD of accounting for INVENTORIES will be Expenditure of the amount of $25,000 and Inventory of supplies of the amount of $8000.
Which one of these is covered by a specific type of insurance policy?
A.Off grid homes
B. Condominiums
C. Home with more than two stories
D. Homes in rural areas
Answer:
A.Off grid homes
Explanation:
Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.
OFF GRID HOMES refer to homes which are self-sufficient without reliance on modern technology and public utilities. That means that this homes do not have access to electricity, gas, water, etc.
Therefore, these homes can be insured by a specific type of insurance policy.
The off-grid homes should be covered by a specific type of insurance policy.
The following information should be considered:
The specific insurance refers to the type of property insurance where only one person's property should be covered by the policy.It should be possible for the one property for the coverage that too is done from a specific insurance policy.Therefore the other options are incorrect.
Learn more about the insurance here: brainly.com/question/13293881
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.
3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000.
4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.
5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.
12 Received check for amount due from Equinox Co. for sale on March 2.
14 Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.
16 Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.
18 Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
Record on page 11 of the journal
Mar. 19 Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.
26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28 Received check for amount due from Vista Co. for sale of March 19.
31 Received check for amount due from Empire Co. for sale of March 4.
31 Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3 Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
15 Paid $6,544 to state sales tax division for taxes owed on sales.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
CHART OF ACCOUNTS
Amsterdam Supply Co.
General Ledger
ASSETS
110 Cash
121 Accounts Receivable-Empire Co.
122 Accounts Receivable-Equinox Co.
123 Accounts Receivable-Targhee Co.
124 Accounts Receivable-Vista Co.
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
Journal
Shaded cells have feedback.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Answer:
Accounts Receivable (Dr.) $18,900
Sales (Cr.) $18,900
Cost of good sold (Dr.) $13,300
Inventory (Cr.) $13,300
Cash (Dr.) $12,031
Sales (Cr.) $11,350
Sales tax payable (Cr.) $681
Cost of goods sold (Dr.) $7,000
Inventory (Cr.) $7,000
Accounts receivable (Dr.) $27,500
Sales (Cr.) $27,500
Cost of goods sold (Dr.) $16,000
Inventory (Cr.) $16,000
Cash (Dr.) $18,711
Cash discount (Dr.) $189
Accounts receivable (Cr.) $18,900
Explanation:
Cash discount is the discount given to customers who pay before the credit terms. This is available to those customers who buy goods on credit. This is recorded as expense.
Cash discount : $18,900 * 0.01 = $189
Discuss the two differences of Theory X and Y. Give example
On December 30, you decide to make a $2,500 charitable donation. (Assume you itemize your deductions.) (a) If you are in the 24 percent tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year
Answer:
$600
Explanation:
Calculation to determine how much will you save in taxes for the current year
Using this formula
Tax savings = Tax rate × Tax deduction
Let plug in the formula
Tax savings= 0.24 × $2500
Tax savings =$600
Therefore how much will you save in taxes for the current year is $600
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories. These categories are: direct and indirect materials. direct costs and indirect materials. indirect materials and conversion costs. direct materials and conversion costs.
Answer:
direct materials and conversion costs.
Explanation:
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories which are direct materials and conversion costs.
This is because Automation does conversion on the Direct Materials which are visible and can be traced to product being manufactured.
Suppose you invest equal amounts in a risky asset with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%. Calculate the standard deviation of the returns on the resulting portfolio.
Answer:
The answer is "[tex]10\%[/tex]".
Explanation:
You are equivalent investors in 16 percent of a portfolio and 4 percent of a risk-free asset. A weighted mean of these two will become the predicted return.
[tex]= \text{(Portfolio weight} \times \text{Return portfolio)} + \text{(Portfolio weight}\times \text{risk-free)}\\\\[/tex]
[tex]= (0.5 \times 16\%) + (0.5 \times 4\%)\\\\= (0.5 \times \frac{16}{100}) + (0.5 \times \frac{4}{100})\\\\= \frac{8}{100} + \frac{2}{100}\\\\= \frac{8+2}{100}\\\\= \frac{10}{100}\\\\= \frac{1}{10}\\\\= \frac{1}{10} \times 100\\\\=10\%[/tex]
The spread of ATMs and the increased use of debit cards _______ money. Everything else remaining the same, the nominal interest rate _______.
Answer:
increase the demand for; falls
Explanation:
ATMs means automated teller machine. They increase the ease through which a bank account holder can assess her funds. ATMs can be used to :
withdraw funds check account balancetransfer moneyWith the proliferation of ATMs and the increased use of debit cards, there has been an increase in the demand for money. This has led to a fall in nominal interest rate
The demand for money (the decision to hold money) is inversely related to interest rate. If the demand for money increases, it means that less bonds are been held. As a result, there would be a fall in the interest rates.
Volga Co. included a foreign subsidiary in its Year 6 consolidated financial statements. The subsidiary was acquired in Year 4 and was excluded from previous consolidations. The change was caused by the elimination of foreign currency controls. Including the subsidiary in the Year 6 consolidated financial statements results in an accounting change that should be reported:________.
Answer:
By retrospective application to the financial statements of all prior periods presented.
Explanation:
From the question we are informed about Volga Co. who included a foreign subsidiary in its Year 6 consolidated financial statements. The subsidiary was acquired in Year 4 and was excluded from previous consolidations. The change was caused by the elimination of foreign currency controls. Including the subsidiary in the Year 6 consolidated financial statements results in an accounting change that should be reported By retrospective application to the financial statements of all prior periods presented.
Consolidated financial statements can be regarded as financial statements of a particular group whereby equity, assets as well as liabilities and cash flows and expenses of the parent company as well as its subsidiaries are been presented in a way of single economic entity. In others words Consolidated financial statements can as well be regarded as financial statements of an organization having multiple divisions or multiple subsidiaries. Some firms often use the consolidated as regards financial statement reporting to describe aggregated reporting of business collectively.
Do government statisticians calculate GDP by simply adding up the total sales of all business firms in one year? Explain.
Answer:
No
Explanation:
No, because the gross domestic product is determined by encompassing the final product. If the total sales are used to determine the GDP then the false value of GDP will come up because the problem of double counting will arise. Many firms sell their goods to other firms which is intermediate goods for the other firms.
Please solve for the value of the following bonds and briefly explain your results:
A) A U.S. Government Treasury Strip is quoted in the Wall Street Journal at a market price of 87:19 (87 and 19/32). If the strip is scheduled to mature in May 2025, what is the annual interest rate for this bond?
B) Xenor Corporation introduced a bond in 2001 that offered a coupon rate of 8 1/2%, resulting in coupon payments of $8.50. The bond is scheduled to mature in 2031. If the current going interest rate in the market is 6 3/4%, what is the market price (please calculate the interest and the principal due to get this value) of this bond today?
C) A bond offers a coupon that makes annual payments of $87.50. The bond was originally set to mature in 17 years. A quote for this bond, obtained 15 years after the original issue date, listed the market price as $1,070.00. What is the YTM for this bond?
Answer:
US Treasury Strip Price of the strip, P = $87 and 19/32 = $87.59375 Face Value of the strip = $100 Maturity, N = 5 years (assuming the quoted price is the current price, i.e., in November 2020, the time to maturity in November 2025 will be 5 years
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following:
• a private cost of $3.03;
• a social cost of $3.23;
• a value to consumers of $3.39.
Refer to Scenario 10-1. Suppose the equilibrium quantity of gasoline is 220 gallons; that is, Q MARKET = 220. Then the equilibrium price of a gallon could be:________
a. $3.08.
b.$2.77.
c. $2.45.
d. $3.69.
Answer:
a. $3.08
Explanation:
Calculation to determine what the equilibrium price of a gallon could be:
Based on the information given the Private cost is $3.03 while the Social cost is $3.23 which indicates that Social cost lies ABOVE the private cost and since The MARKET EQUILIBRIUM tend to occurs when Private value=Private cost which means that the EQUILIBRIUM PRICE lies between $3.03 and $3.23, Therefore the EQUILIBRIUM PRICE of a gallon would be $3.08 because it lies between $3.03 and $3.23.
You would use scenario analysis when:________.
a. Testing how an increase in revenue growth affects the share price
b. Performing what-if analysis to support business planning
c. Assessing which assumption has the biggest impact on the model
d. Comparing different business cases about the future with multiple variables changed
Answer:
d. Comparing different business cases about the future with multiple variables changed
Explanation:
I would start off by defining scenario analysis first. Scenario analysis can be defined as a process whereby future values of a portfolio investment can be predicted given that an event may occur or may not occur. In other words, it is a way of knowing what would happen to the values of a portfolio if a particular event occurs or if the event doesnt occur.
Given this explanation, the right answer to this question is option d, Comparing different business cases about the future with multiple variables changed
Becky is a single mother of two young children who spend their days at a daycare center while Becky goes to work. The daycare center closes at 5:30. If parents do not pick up their children at or before 5:30, the daycare center charges a late fee of $5 per child for every 10 minutes the parent is late.
Due to traffic, Becky expects to be 20 minutes late to pick up her children. How much would she be willing to pay for a variable toll road that would get her to the daycare center on time?
a. any price less than $5
b. any price less than $10
c. any price less than $20 1
d. Becky would not be willing to pay out of pocket to avoid traffic.
She expects to be 20 minutes late. She has to pay $5 for every 10 minutes.
20 minutes / 10 minutes = 2
2 x $5 = $10
If she is 20 minutes late she needs to pay $20.
She would be willing to pay anything less that $10, because anything less than 10 would save her money.
Answer: b. any price less than $10
The total market value of the equity of ITM is $6 million, and the total value of its debt is $4
million. The treasurer estimates that the beta of the stock currently is 1.2 and that the expected
risk premium on the market is 10%. The Treasury bill rate is 4%, and investors believe that
ITM’s debt is essentially free of default risk.
a. What is the required rate of return on ITM stock?
b. Estimate the WACC assuming a tax rate of 40%.
c. Estimate the discount rate for an expansion of the company’s present business.
d. Suppose the company wants to diversify into the manufacture of rose-colored glasses.The beta
of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on
ITM’s new venture? (Assume that the risky project will not enable the firm to issue any
additional debt.)
Answer:
a. The required rate of return on Okefenokee stock is 16%.
b. WACC = 10.56%.
c. Estimate the discount rate for an expansion of the company's present business.
It should be the same as the WACC = 10.56%
d. The required rate of return on Okefenokee's new venture is Ke = 18 %.
Explanation:
Here the given is,
E = $6 million, D = $4 million, Beta = 1.2,
Rmp = the expected risk premium on the market =10%.
Rf = The Treasury bill rate = 4%
a. The required rate of return on Okefenokee stock,
[tex]Ke = Rf + Beta \times Rmp = 4 + 1.2 \times 10 = 16%[/tex]%.
b. Tax rate, T = 40%
The proportion of debt =[tex]Wd = D / (D + E) = 4 / (6 + 4) = 0.4[/tex]
Proportion of equity, We = 1 - Wd = 1 - 0.4 = 0.6
Cost of debt, Kd = Risk-free rate as debt is free of default = 4%
[tex]WACC = Wd \times Kd \times (1 - T) + We\times Ke\\\\ = 0.4 \times4\times (1 - 40) + 0.6 \times 16\\\\ = 10.56%[/tex]
WACC = 10.56%.
c. Estimate the discount rate for an expansion of the company's present business.
It should be the same as the WACC = 10.56%
d. Suppose the company wants to diversify into the manufacture of rose-colored glasses. The beta of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on Okefenokee's new venture? (You should assume that the risky project will not enable the firm to issue an additional debt)
[tex]Ke = Rf + Beta \times Rmp\\\\Ke = 4 + 1.4 \times 10 = 18%[/tex]
Ke = 18 %.
Net income was $35,000. Issued common stock for $64,000 cash. Paid cash dividend of $14,600. Paid $50,000 cash to settle a note payable at its $50,000 maturity value. Paid $12,000 cash to acquire its treasury stock. Purchased equipment for $39,000 cash. Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
- $76,600
Explanation:
cash flows from financing activities - $76,600
If two firms are identical in all respects except that one has more of the fixed input capital than another, the marginal product curve for the firm with more capital: Group of answer choices will lie above the marginal product curve for the firm with less capital. must equal the marginal product curve for the firm with less capital. will lie below the total marginal curve for the firm with less capital. will show no diminishing marginal returns.
Answer: will lie above the marginal product curve for the firm with less capital.
Explanation:
Capital is needed to produce goods and services and ideally speaking, when more capital is invested, more goods and services will be able to be produced because more should bring in more.
It is the same case here, if the companies are similar in everything except capital invested, the company with more capital will be able to produce more goods and services which will lead to their marginal product curve lying above the marginal product curve of the company with less capital.
Brenda, the sales manager of a firm, wants to generate a particular report containing sales analyses of the second and third quarter of the year. She should use a ________ to retrieve the information that she wants from the database. Group of answer choices
Answer: query
Explanation:
Since Brenda wants to generate a particular report containing sales analyses of the second and third quarter of the year, then she should use a query to get the information.
The query refers to a request that can be used to get data or information from the database table. The data gotten can be in form of graphs, pictorials or complex results, such as trend analyses etc
Framjam Sports Equipment produces basketballs at its factory in Kentucky and soccer balls at its factory in Illinois. At its current annual rate of production, the cost of producing basketballs is $70,000 and the cost of producing soccer balls is $45,000. If the firm consolidates production at a single location, the annual cost of production will be $100,000. What is the degree of economies of scope in this case?
Answer:
0.15
Explanation:
The computation of the degree of economies of scope in this case is given below:
(cost of producing basketballs + cost of producing soccer balls - annual cost of production) ÷ annual cost of production
= ($70,000 + $45,000 - $100,000) ÷ $100,000
= 0.15
In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $600. The cash account has a(n)
Answer:
$300 debit balance
Explanation:
In business debit entries mean that the money is being added to the account, while credit entries means that the money is owed and is therefore being deducted from the account. Therefore, in this scenario the cash account has a $300 debit balance. This is because the credit entries are being subtracted from the debit entries (assuming that the account had a $0 initial balance). If we do the math we are left with $300 of debit.
$900 - $600 = $300
Use the following selected balance sheet and income statement information for Caroline Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent.
Operating profit before tax Earnings without interest expense (EWI) Average total assets Sales Tax rate on operating profit
$58,300 $93,400 $360,600 $1,135,420 35%
Answer:
3.15 times
Explanation:
Asset turnover = Sales revenue / Average total assets
Asset turnover = $1,135,420 / $360,600
Asset turnover = 3.15 times
Delta River Company sold manufacturing equipment with a cost of $44,000 and accumulated depreciation of $32,000 for $9,000. The journal entry to record this transaction will include:_________
a) a credit to Accumulated Depreciation â Equipment for $32,000.
b) a debit to a loss account for $3,000.
c) a credit to a gain account for $8,000.
d) a credit to the Equipment account for $12,000.
Answer:
b) a debit to a loss account for $3,000.
Explanation:
Based on the information given the journal entry to record this transaction will include: a DEBIT TO A LOSS ACCOUNT FOR $3,000.
Debits Cash $9,000
Debit Accumulated Depreciation - Equipment $32,000
Debit loss account ($3,000)
($44,000-$32,000+$9,000)
Credit Equipment $44,000