Answer: A
Be able to produce top-quality goods and services
If a specific economy has extra capital resources available, be able to produce more goods and services needed and wanted by society.
What is an economy?An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.
One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes.
These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.
Individuals, companies, organizations, or governments all qualify as economic actors. When two persons or organizations agree on the value or price of the good or service being exchanged, which is typically stated in a particular currency, an economic transaction takes place.
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A company is about to begin production of a new product. The manager of the department that will produce one of the components for the new product wants to know how often the machine used to produce the item will be available for other work. The machine will produce the item at a rate of 200 units a day. Eighty units will be used daily in assembling the final product. Assembly will take place five days a week, 50 weeks a year. The manager estimates that it will take a full day to get the machine ready for a production run, at a cost of $250. Inventory holding costs will be $10 a year.
Required:
a. What run quantity should be used to minimize total annual costs?
b. What is the length of a production run in days?
c. During production, at what rate will inventory build-up?
d. lf the manager wants to run another job between runs of this item, and needs a minimum of 10 days per cycle for the other work, will there be enough time?
e. Given your answer to part d, the manager wants to explore options that will allow this other job to be performed using this equipment. Name three options the manager can consider.
f. Suppose the manager decides to increase the run size of the new product. How many additional units would be needed to just accommodate the other job? How much will that increase the total annual cost?
Answer:
Kindly check explanation
Explanation:
Given that :
Production rate (p) = 200 units / day
daily usage (d) = 80 units / day
Assembly, a = 5 days a week ; 50 weeks a year
Setup cost (S) = $250
Holding cost (H )= $10
A) Run quantity to minimize total annual cost:
√(2DS/H) * √p / (p - d)
D = annual demand = (80 * 5 * 50) = 20,000
√(2(20000)(250)/10) * √200 / (200 - 80)
1000 * 1.2909944
= 1290.99
= 1291 units
B) Run length :
1291 / 200 = 6.455 days
C) Inventory build up:
Daily production - daily usage:
(200 - 80) = 120 units / day
The data required to answer the question are
production rate = 200/dayusage = 80 per dayAssembly = 5 per week and 50 weeks per yearCost of set up = 250 dollarsHolding cost = 10 dollarsA. To minimize the total annual cost[tex]\sqrt{2ds/h} *\sqrt{p/(p-d)}[/tex]
annual demand = 80 x 5 x 50 = 20,000
sqrt(2x20000)x(250)/10) * sqrt200/(200-80)
1000 x 1.2909944
= 1290.99
The total units when approximated = 1291 units
B) The length of a production in days =
1291 / 200 = 6.455 days
C) What is the Inventory build up?
200 - 80 = 120 units per day
d. If the manager wants to run a cycle that needs 10 days per cycle there is going to be enough time for him to do so.
e. Other options that he has to explore are labor, capital and time factor.
d. Increasing the run size is going to increase the total annual cost by the amount
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A company has net working capital of $1,996. If all its current assets were liquidated, the company would receive $5,923. What are the company's current liabilities?
Answer:Current Liabilities= $3,927
Explanation:
Net working capital= Current assets-current liabilities
Current Liabilities = Current assets - Net working capital
= $5,923- $1,996
=$3,927
Current liabilities are short term liabilities , debt or obligation of a business which should be due within one year so as to be paid to creditors.
The ledger of Shamrock, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.
Debit Credit
Supplies 3,990
Prepaid Insurance 2,240
Equipment 33,000
Unearned Service Revenue 13,900
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $280 per month.
2. Supplies on hand total $980.
3. The equipment depreciates $220 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Required:
Prepare the adjusting entries for the month of March.
Answer:
Shamrock, Inc.
Adjusting Journal Entries on March 31, 2022:
1. Debit Insurance Expense $280
Credit Prepaid Insurance $280
To record insurance expense for the month.
2. Debit Supplies Expense $3,010
Credit Supplies $3,010
To record supplies expense for the month
3. Debit Depreciation Expense $220
Credit Accumulated Depreciation- Equipment $220
To record depreciation expense for the month.
4. Debit Unearned Service Revenue $5,560
Credit Service Revenue $5,560
To record earned service revenue for the month.
Explanation:
Shamrock uses adjusting journal entries to record earned revenues and incurred expenses so that they are matched to their proper periods, whether cash was exchanged or not. They are made at the end of an accounting period.
Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations.
May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,890 of equipment on credit.
5 The company paid $750 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant’s salary for the first half of this month.
20 The company received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.
25 The company received $3,200 cash payment for the services provided on May 22.
26 The company paid $1,890 cash for the equipment purchased on May 3.
27 The company purchased $80 of equipment on credit.
28 The company paid $750 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $280 cash for this month’s utilities.
31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Required:
a. Determine the final total for each account and verify that the equation is in balance.
b. Prepare an Income Statement for May,
c. Prepare a statement of Owner's equity for May,
d. Prepare 31 Balance Sheet.
e. Prepare Cash flows for May.
Answer:
a) May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
Dr Cash 40,000
Cr Common stock 40,000
May 1 The company rented a furnished office and paid $2,200 cash for May’s rent.
Dr Rent expense 2,200
Cr Cash 2,200
May 3 The company purchased $1,890 of equipment on credit.
Dr Equipment 1,890
Cr Accounts payable 1,890
May 5 The company paid $750 cash for this month’s cleaning services.
Dr Cleaning expenses 750
Cr Cash 750
May 8 The company provided consulting services for a client and immediately collected $5,400 cash.
Dr Cash 5,400
Cr Service revenue 5,400
May 12 The company provided $2,500 of consulting services for a client on credit.
Dr Accounts receivable 2,500
Cr Service revenue 2,500
May 15 The company paid $750 cash for an assistant’s salary for the first half of this month.
Dr Wages expense 750
Cr Cash 750
May 20 The company received $2,500 cash payment for the services provided on May 12.
Dr Cash 2,500
Cr Accounts receivable 2,500
May 22 The company provided $3,200 of consulting services on credit.
Dr Accounts receivable 3,200
Cr Service revenue 3,200
May 25 The company received $3,200 cash payment for the services provided on May 22.
Dr Cash 3,200
Cr Accounts receivable 3,200
May 26 The company paid $1,890 cash for the equipment purchased on May 3.
Dr Accounts payable 1,890
Cr Cash 1,890
May 27 The company purchased $80 of equipment on credit.
Dr Equipment 80
Cr Accounts payable 80
May 28 The company paid $750 cash for an assistant’s salary for the second half of this month.
Dr Wages expense 750
Cr Cash 750
May 30 The company paid $300 cash for this month’s telephone bill.
Dr Telephone expense 300
Cr Cash 300
May 30 The company paid $280 cash for this month’s utilities.
Dr Utilities expense 280
Cr Cash 280
May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Dr Dividends 1,400
Cr Cash 1,400
debit credit
Cash $42,780
Equipment $1,970
Accounts payable $80
Common stock $40,000
Service revenue $11,100
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280
Dividends $1,400
totals $51,180 $51,180
income statementService revenue $11,100
Expenses:
Rent expense $2,200Cleaning expenses $750Wages expense $1,500Telephone expense $300Utilities expense $280 ($5,030)Net income $6,070
statement of owner's equityBeginning balance $0
Common stocks issued $40,000
Net income $6,070
Sub-total $46,070
Dividends ($1,400)
Ending balance $44,670
balance sheetAssets:
Cash $42,780
Equipment $1,970
Total assets $44,750
Liabilities and equity:
Accounts payable $80
Common stock $40,000
Retained earnings $4,670
Total liabilities and equity $44,750
cash flow statementCash flows from operating activities:
Net income $6,070
Increase in accounts payable $80
net cash from operating activities $6,150
Cash flows from financing activities:
Purchase of equipment ($1,970)
Cash flow from financing activities:
Common stocks issued $40,000
Dividends paid ($1,400)
net cash fro financing activities $38,600
net cash increase $42,780
beginning cash balance $0
ending cash balance $42,780
a.1. The final total for each account is determined in the general ledger as follows:
Cash Account
Date Account Titles Debit Credit
May 1 Common Stock $40,000
May 1 Rent Expense $2,200
May 5 Cleaning Services Expense $750
May 8 Consulting Fees $5,400
May 15 Salaries Expense $750
May 20 Accounts Receivable $2,500
May 25 Accounts Receivable $3,200
May 26 Accounts Payable $1,890
May 28 Salaries Expense $750
May 30 Telephone Expense $300
May 30 Utilities $280
May 31 Dividends $1,400
May 31 Balance $42,780
Totals $51,100 $51,100
Accounts ReceivableDate Account Titles Debit Credit
May 12 Consulting Fees $2,500
May 20 Cash $2,500
May 22 Consulting Fees $3,200
May 25 Cash $3,200
Totals $5,700 $5,700
EquipmentDate Account Titles Debit Credit
May 3 Accounts Payable $1,890
May 27 Accounts Payable 80
May 31 Balance $1,970
Totals $1,970 $1,970
Common StockDate Account Titles Debit Credit
May 1 Cash $40,000
Accounts PayableDate Account Titles Debit Credit
May 3 Equipment $1,890
May 26 Cash $1,890
May 27 Equipment $80
May 31 Balance $80
Totals $1,970 $1,970
Consulting FeesDate Account Titles Debit Credit
May 8 Cash $5,400
May 12 Accounts Receivable $2,500
May 22 Accounts Receivable 3,200
May 31 Balance $11,100
Totals $11,100 $11,100
Rent ExpenseDate Account Titles Debit Credit
May 1 Cash $2,200
Cleaning Services ExpensesDate Account Titles Debit Credit
May 5 Cash $750
Wages ExpenseDate Account Titles Debit Credit
May 15 Cash $750
May 28 Cash $750
May 31 Balance $1,500
Totals $1,500 $1,500
Telephone ExpensesDate Account Titles Debit Credit
May 30 Cash $300
Utilities ExpenseDate Account Titles Debit Credit
May 30 Cash $280
DividendsDate Account Titles Debit Credit
May 31 Cash $1,400
a.2. The determination that the equation is in balance is established through the Trial Balance as follows:
Date Account Titles Debit Credit
Cash $42,780
Common stock $40,000
Equipment $1,970
Accounts payable $80
Consulting fees $11,100
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280
Dividends $1,400
Totals $51,180 $51,180
b. The preparation of the income statement is as follows:
The Gram Co.
Income StatementFor the month ended May 31
Service revenue $11,100
Expenses:
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280 ($5,030)
Net income $6,070
c. The preparation of the statement of owner's equity is as follows:
The Gram Co.
Statement of Owner's EquityAs of May 31
Common stocks issued $40,000
Net income $6,070
Dividends ($1,400)
Ending balance $44,670
d. The preparation of the Balance Sheet is as follows:
The Gram Co.
Balance SheetAs of May 31
Assets:
Cash $42,780
Equipment $1,970
Total assets $44,750
Liabilities and equity:
Accounts payable $80
Equity:
Common stock $40,000
Retained earnings $4,670
Total equity $44,670
Total liabilities and
owner's equity $44,750
e. The preparation of the Statement of Cash Flows is as follows:
The Gram Co.
Statement of Cash FlowsOperating activities:
Net income $6,070
Increase in accounts payable $80
Net operating cash $6,150
Investing activities:
Purchase of equipment ($1,970)
Financing activities:
Common stocks issued $40,000
Dividends paid ($1,400)
Net financing cash $38,600
Net cash flows $42,780
Reconciliation:Beginning cash balance $0
Net cash flows $42,780
Ending cash balance $42,780
Data Analysis:May 1 Cash $40,000 Common Stock $40,000
May 1 Rent Expense $2,200 Cash $2,200
May 3 Equipment $1,890 Accounts Payable $1,890
May 5 Cleaning Services Expense $750 Cash $750
May 8 Cash $5,400 Consulting Fees $5,400
May 12 Accounts Receivable $2,500 Consulting Fees $2,500
May 15 Salaries Expense $750 Cash $750
May 20 Cash $2,500 Accounts Receivable $2,500
May 22 Accounts Receivable $3,200 Consulting Fees $3,200
May 25 Cash $3,200 Accounts Receivable $3,200
May 26 Accounts Payable $1,890 Cash $1,890
May 27 Equipment $80 Accounts Payable $80
May 28 Salaries Expense $750 Cash $750
May 30 Utilities (Telephone) $300 Cash $300
May 30 Utilities $280 Cash $280
May 31 Dividends $1,400 Cash $1,400
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Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October.
Direct materials used $226,000
Direct labor used 30% in Shredding; 70% in Bagging. $112,000
Predetermined overhead rate (based on direct labor) 165 %
Transferred to Bagging $206,500
Transferred to finished goods $583,000
The company's revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $240,000.
Required:
Prepare summary journal entries dated October 31 to record its October production activities for:
a. Direct materials usage
b. Direct labor incurred
c. Overhead applied
d. Goods transfer from Shredding to Bagging.
e. Goods transfer from Bagging to finished goods.
f. Credit sales
g. Cost of goods sold.
Answer:
a.
Work In Process : Direct Materials $226,000 (debit)
Raw Materials $226,000 (credit)
Direct Materials used in production
b.
Work In Process : Shredding $33,600 (debit)
Work In Process : Bagging $78,400 (debit)
Salaries Payable $112,000 (credit)
Direct labor incurred during production
c.
Work In Process : Shredding $55,440 (debit)
Work In Process : $129,360 Bagging
Overheads $184,800 (credit)
Overheads applied to production cost
d.
Work In Process : Bagging $206,500 (debit)
Work In Process : Shredding $206,500 (credit)
Manufacturing costs transferred from Shredding to Bagging
e.
Work In Process : Shredding $583,000 (debit)
Finished Goods $583,000 (credit)
Manufacturing Costs transfer from Bagging to finished goods
f.
Account Receivable $470,000 (debit)
Sales Revenue $470,000 (credit)
Credit Sales during the month
g.
Cost of Goods Sold $240,000 (debit)
Finished Goods $240,000 (credit)
Cost of Goods Sold during the month
Explanation:
See the Journal entries and their narrations prepared above
. Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. (1) What is your total dollar return on this investment
Answer: $428
Explanation:
From the question, we are informed that one bought 100 shares of stock at an initial price of $37 per share and that the stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41.
The total dollar return on this investment will be calculated as:
= 100(41 - 37 + 0.28)
= $428
Help pleaseee!
The members of the Federal Reserve System must hold some of their deposits in cash in their vaults. This represents?
A - discount rates
B - reserved requirements
C - selective credit controls
D - open market operations.
Answer:
B-reserved requirements
Explanation:
Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock
Answer:
$28.57
Explanation:
Current price = D1/(Required return-Growth rate)
D1 (Next dividend) = $2
Required return = 10% = 0.1
Growth rate = 3% = 0.03
Current price = $2/(0.1-0.03)
Current price = $2 / 0.07
Current price = $28.57143
Current price = $28.57
Hence, i will be willing to pay $28.57 for a share of Merck stock.
The marginal external cost associated with air pollution increases with the annual output of a polluting industry. At the current competitive equilibrium level of output per year, the marginal external cost is $10 per unit of output. To achieve efficiency,
a. a corrective tax of $10 per unit of output is required.
b. a corrective tax of more than $10 per unit of output is required.
c. a corrective tax of less than $10 per unit of output is required.
d. a corrective subsidy of $10 per unit of output is required.
e. a corrective subsidy of less than $10 per unit of output is required .
Answer:
The answer is "Option c".
Explanation:
The Marginal external cost, owing only to the production of an extra unit of goods or services, is the cost changes for persons besides the producer or buyer of goods or services. In this, question the "option c" is right in, this regard because it needs a correction tax of less than $10 per unit of production.
What is a compound interest?
Answer:
Compound interest is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Interest can be compounded on any given frequency schedule, from continuous to daily to annually.
Explanation:
(2+45) + [(+3) + (-4)] + {(+6) + [(-14) + (-13) + (+9)] + (-17)}
Can someone please help me to do this step by step? :(
Answer:
10
Explanation:
first solve in parenthesis
2+45) + [(+3) + (-4)] + {(+6) + [(-14) + (-13) + (+9)] + (-17)}
46+(-1)+(-35)
46-1-35
10
hope this helps
brainliest?
The price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil and analyze:
a. The market struc ture for oil industry.
b. The supply and demand for oil in that market structure.
c. The pricing of oil at the presence of OPEC and the role of Speculators.
d. Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand.
Answer:
a. The market structure for oil industry.
The market structure is monopolistic competition: there are many competitors, that hold some market power, but not as much as in oligopoly. The good that is offered is not as homogenous as in agricultural markets, and this is the reason why it is not a perfect-competition structure either.
b. The supply and demand for oil in that market structure.
Supply and demand is determined more or less freely in the market. Producers hold some market power so they charge a price that is a bit higher than the marginal cost, which would be the price in a perfect competition structure.
Consumers also have power in the demand curve because they have a fair number of options.
c. The pricing of oil at the presence of OPEC and the role of Speculators.
The OPEC forms an oligopoly, however, not all countries that produce oil are members of the OPEC, and this is why the market structure as a whole is not an oligopoly, but monopolistic competition.
Speculators can drive prices, but their influence is marginal in comparison to consumers as a whole.
d. Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand.
Shale oil is a substitute because it offers the same service: providing energy, and serving as a chemical component of many products.
As for the cross elasticity of demand, this means that when the price of oil increases, the demand for shale oil increases, because people flock to the substitute.
True or false, Is server a collection of computers and devices connected together wirelessly
Answer:
True
Explanation:
A network is a collection of computers and devices connected together via communications devices and transmission media. Many businesses network their computers together to facilitate communications, share hardware, share data and information, share software, and transfer funds.
Answer:
True
Explanation:
Assume that Ray is 38 years old and has 27 years for saving until he retires. He expects an APR of 7.5% on his investments. How much does he need to save if he puts money away annually in equal end-of-the-year amounts to achieve a future value of $1,200,000 dollars in 27 years' time
Answer:
Annual deposit= $14,882.44
Explanation:
Giving the following information:
Future Value= $1,200,000
Number of periods= 27 years
Interest rate= 7.5%
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,200,000*0.075) / [(1.075^27) - 1]
A= $14,882.44
economics
Which of the following is LEAST likely to be a cause of long-term secular slowness in increases in U.S. labor productivity? (a) transition of the economy increasingly toward services and away from manufacturing; (b) falling levels of the capital to labor ratio; (c) deglobalization and the shift of production from places outside the U.S. to places within the U.S.; (d) tighter labor markets and the infusion of more and more workers with below-average skills.
Answer:
(c) deglobalization and the shift of production from places outside the U.S. to places within the U.S.
Explanation:
The secular aspect of a trend is the main driver of that trend, and the secular aspect of the slowness in increases in U.S. labor productivity is not deglobalization and the shift of production from outside the U.S. to inside the U.S., since what has been happening in the latest decades is exactly the opposite.
Globalization has led many U.S. jobs, specially in manufacturing, to be shipped away from the country to other places where labor costs are cheaper, like China, Vietnam and Malasya.
What is the term for the relationship between printer and paper?
Printer and paper are
to each other.
NOT ANALOGY
Answer:
Complementary Products
Explanation:
Printers and papers are an example of complementary goods. Complimentary products are goods or services sold independently but must be used together. A complimentary good provides little or no satisfaction to the consumer on its own. It has to be used in combination with another good. In this case, a printer with no papers adds little value or no value to the owner.
Other examples of complementary goods are
Petrol and car.Guns and bulletsMobile phones and mobile phone credit Tennis balls and tennis racketsLeach Inc. experienced the following events for the first two years of its operations:
Year 1:
Issued $10,000 of common stock for cash.
Provided $78,000 of services on account.
Provided $36,000 of services and received cash.
Collected $69,000 cash from accounts receivable.
Paid $38,000 of salaries expense for the year.
Adjusted the accounting records to reflect uncollectible accounts expense for the year.
Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Closed the revenue account. Closed the expense account.
Year 2:
Wrote off an uncollectible account for $650.
Provided $88,000 of services on account.
Provided $32,000 of services and collected cash.
Collected $81,000 cash from accounts receivable.
Paid $65,000 of salaries expense for the year.
Adjusted the accounts to reflect uncollectible accounts expense for the year.
Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Required
a. Record the Year 1 and Year 2 events in general journal form and post them to T-accounts.
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1 and Year 2.
c. What is the net realizable value of the accounts receivable at Year 1 and Year 2?
Answer:
a.1) year 1
Issued $10,000 of common stock for cash.
Dr cash 10,000
Cr common stock 10,000
Provided $78,000 of services on account.
Dr accounts receivable 78,000
Cr service revenue 78,000
Provided $36,000 of services and received cash.
Dr cash 36,000
Cr service revenue 36,000
Collected $69,000 cash from accounts receivable.
Dr cash 69,000
Cr accounts receivable 69,000
Paid $38,000 of salaries expense for the year.
Dr wages expense 38,000
Cr cash 38,000
Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Dr bad debt expense 450
Cr accounts receivable 450
Closed the revenue account. Closed the expense account.
Dr service revenue 114,000
Cr income summary 114,000
Dr income summary 38,450
Cr wages expense 38,000
Cr bad debt expense 450
Dr income summary 75,550
Cr retained earnings 75,550
b.1) income statement year 1Service revenue $114,000
Expenses:
Wages $38,000Bad debt $450 ($38,450)Net income $75,550
balance sheet year 1Assets:
Cash $77,000
Accounts receivable $8,550
total assets $85,550
Equity:
Common stock $10,000
Retained earnings $75,550
total equity $85,550
statement of cash flows year 1Cash flows form operating activities:
Net income $75,550
adjustments:
Increase in accounts receivable ($8,550)
net cash from operating activities $67,000
Cash flow from financing activities:
Common stocks issued $10,000
Net cash increase $77,000
beginning cash balance $0
Ending cash balance $87,000
a.2) Year 2:
Wrote off an uncollectible account for $650.
Dr bad debt expense 650
Cr accounts receivable 650
Provided $88,000 of services on account.
Dr accounts receivable 88,000
Cr service revenue 88,000
Provided $32,000 of services and collected cash.
Dr cash 32,000
Cr service revenue 32,000
Collected $81,000 cash from accounts receivable.
Dr cash 81,000
Cr accounts receivable 81,000
Paid $65,000 of salaries expense for the year.
Dr wages expense 65,000
Cr cash 65,000
Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Dr bad debt expense 745
Cr accounts receivable 745
b.2) income statement year 2Service revenue $120,000
Expenses:
Wages $65,000Bad debt $1,395 ($38,450)Net income $53,605
balance sheet year 2Assets:
Cash $125,000
Accounts receivable $14,155
total assets $139,155
Equity:
Common stock $10,000
Retained earnings $129,155
total equity $139,155
statement of cash flows year 2Cash flows form operating activities:
Net income $53,605
adjustments:
Increase in accounts receivable ($5,605)
net cash from operating activities $48,000
Net cash increase $48,000
beginning cash balance $77,000
Ending cash balance $125,000
c) net realizable value of accounts receivable at year 1 = $8,550
net realizable value of accounts receivable at year 2 = $14,155
a. Recording the Year 1 and Year events in general journal form and posting to T-accounts for Leach Inc. are as follows:
General JournalYear 1:
Debit Cash $10,000
Credit Common stock $10,000
Debit Accounts Receivable $78,000
Credit Service Revenue $78,000
Debit Cash $36,000
Credit Service Revenue $36,000
Debit Cash $69,000
Credit Accounts Receivable $69,000
Debit Salaries Expense $38,000
Credit Cash $38,000
Adjustment:
Debit Bad Debts Expense $450
Credit Uncollectible Allowance $450
Year 2:
Debit Accounts Receivable $650
Credit Uncollectible Allowance $650
Debit Accounts Receivable $88,000
Credit Service Revenue $88,000
Debit Cash $32,000
Credit Service Revenue $32,000
Debit Cash $81,000
Credit Accounts Receivable $81,000
Debit Salaries Expense $65,000
Credit Cash $65,000
Adjustment:
Debit Bad Debts Expense $968
Credit Uncollectible Allowance $968
T-accounts:Year 1:
Cash AccountCommon stock $10,000
Service Revenue $36,000
Accounts Receivable $69,000
Salaries Expense $38,000
Balance $77,000
Uncollectible AllowanceBad debts Expense $450
Common Stock
Cash account $10,000
Accounts Receivable
Service Revenue $78,000
Cash $69,000
Balance $9,000
Service RevenueAccounts Receivable $78,000
Cash $36,000
Income Summary $114,000
Salaries ExpenseCash $38,000
Income Summary $38,000
Bad Debts Expense
Uncollectible Allowance $450
Income Summary $450
Year 2:
Cash AccountBalance $77,000
Service Revenue $32,000
Accounts Receivable $81,000
Salaries Expense $65,000
Balance $125,000
Uncollectible AllowanceBalance $450
Accounts Receivable $650
Bad debts expense $968
Balance $768
Common StockBalance $10,000
Accounts Receivable
Balance $9,000
Service Revenue $88,000
Uncollectible allowance $650
Cash $81,000
Balance $15,350
Service RevenueAccounts Receivable $88,000
Cash $32,000
Income Summary $120,000
Salaries ExpenseCash $65,000
Income Summary $65,000
Bad Debts Expense
Uncollectible Allowance $968
Income Summary $968
b. The preparation of the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 and Year 2 are as follows:
Leach Inc.
Income Statements for Year 1 and Year 2:Year 1 Year 2
Service Revenue $114,000 $120,000
Salaries Expense 38,000 $65,000
Bad Debts Expense 450 38,450 968 65,968
Net income $75,550 $54,032
Leach Inc.
Statements of Changes in Stockholders' Equity for Year 1 and Year 2:Year 1 Year 2
Beginning balance $10,000 $85,550
Net income 75,550 54,032
Ending balance $85,550 $139,582
Leach Inc.
Balance Sheets at Year 1 and Year 2:Year 1 Year 2
Assets:
Cash $77,000 $125,000
Accounts Receivable 9,000 15,350
Uncollectible Allowance (450) (768)
Total assets $85,550 $139,582
Equity:
Ending balance $85,550 $139,582
Leach Inc.
Statements of Cash Flows for Year 1 and 2:Operating Activities: Year 1 Year 2
Net income $75,550 $54,032
Changes in working capital:
Accounts receivable (8,550) (6,032)
Operating cash flows $67,000 $48,000
Financing Activities:
Common Stock $10,000 $0
Increase in cash flows $77,000 $48,000
c. The net realizable value of the accounts receivable at Year 1 is $8,550 ($9,000 - $450) and Year 2 is $14,582 ($15,350 - $768).
Data Analysis:Year 1:
Cash $10,000 Common stock $10,000
Accounts Receivable $78,000 Service Revenue $78,000
Cash $36,000 Service Revenue $36,000
Cash $69,000 Accounts Receivable $69,000
Salaries Expense $38,000 Cash $38,000
Adjustment:
Bad Debts Expense $450 Uncollectible Allowance $450
Year 2:
Uncollectible Allowance $650 Accounts Receivable $650
Accounts Receivable $88,000 Service Revenue $88,000
Cash $32,000 Service Revenue $32,000
Cash $81,000 Accounts Receivable $81,000
Salaries Expense $65,000 Cash $65,000
Adjustment:
Bad Debts Expense $968 Uncollectible Allowance $968
= $968 ($650 + $768 - $450)
$768 ($15,350 x 5%)
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Suppose government spending is cut. Other things being equal, the aggregate demand for national production will
rise.
remain constant.
fall.
All of the above
Answer:
Fall.
Explanation:
Since government spending is one of the components of aggregate demand, an increase in government spending will shift the demand curve to the right. A reduction in taxes will leave more disposable income and cause consumption and savings to increase, also shifting the aggregate demand curve to the right.
In both the United States and France, the demand for haircuts is given by QD=300−10P . However, in the United States, the supply is given by QS=−300+20P , while in France, the supply is given by QS=−33.33+6.67P .
Required:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
b. What are the new equilibrium prices and quantities of haircuts in the two countries?
Answer:
a. P = 20 and Q = 100 in the United States; and also P = 20 and Q = 100 in France.
b. P = 23.33 and Q = 166.70 in the United States; and P = 26 and Q = 140 in France.
Explanation:
Note: The part b of the requirement is not complete. The entire question is therefore represented with the complete pat b before answering the question as follows:
In both the United States and France, the demand for haircuts is given by QD=300−10P . However, in the United States, the supply is given by QS=−300+20P , while in France, the supply is given by QS=−33.33+6.67P .
Required:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
b. Suppose that the demand for haircuts in both countries increases by 100 units at each price, so that the new demand is QD = 400 - 10P. What are the new equilibrium prices and quantities of haircuts in the two countries?
The explanation to the answers is now provided as follows:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
In economics, an equilibrium occurs at point where the quantities demanded is equal to the quantities supplied.
Let Q denotes equilibrium quantity and P denotes equilibrium price, the equilibrium prices and quantities of haircuts in the two countries can therefore be calculated as follows:
In the United States
QD =300 − 10P
QS= −300 + 20P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
300 - 10P = −300 + 20P
300 + 300 = 20P + 10P
600 = 30P
P = 600 / 30
P = 20
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 300 – 10(20)
Q = 300 – 200
Q = 100
Therefore, P = 20 and Q = 100 in the United States.
In France
QD = 300 − 10P
QS= −33.33 + 6.67P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
300 - 10P = −33.33 + 6.67P
300 + 33.33 = 6.67P + 10P
333.33 = 16.67P
P = 333.33 / 16.67
P = 20
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 300 – 10(20)
Q = 300 – 200
Q = 100
Therefore, P = 20 and Q = 100 also in France.
b. Suppose that the demand for haircuts in both countries increases by 100 units at each price, so that the new demand is QD = 400 - 10P. What are the new equilibrium prices and quantities of haircuts in the two countries?
In the United States
QD = 400 − 10P
QS= −300 + 20P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
400 - 10P = −300 + 20P
400 + 300 = 20P + 10P
700 = 30P
P = 700 / 30
P = 23.33
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 400 – 10(23.33)
Q = 400 – 233.30
Q = 166.70
Therefore, P = 23.33 and Q = 166.70 in the United States.
In France
QD = 400 − 10P
QS= −33.33 + 6.67P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
400 - 10P = −33.33 + 6.67P
400 + 33.33 = 6.67P + 10P
433.33 = 16.67P
P = 433.33 / 16.67
P = 25.99 = 26
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 400 – 10(26)
Q = 400 – 260
Q = 140
Therefore, P = 26 and Q = 140 in France.
SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound.
a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?
Answer:
Kindly check explanation
Explanation:
Given the following :
Price per pound = $1.55
Raw material required = 0.75 pound
Transport cost by sea = $0.70
Monthly demand for each of the three colors = 3487
EOQ = √2DS / H
D = 3 * 12 * 3487 * 0. 75 = 94149
Total cost of purchase = 1.55 + 0.70 = 2.25
Setup cost (S) = $186
Holding cost = 32% * 2.25 = 0.72
EOQ = √(2*94149*186) / 0.72
= 6974.50
b. How frequently should the company order cotton?
Annual demand / EOQ
94149 / 6974.50
= 13.50 ;
12 months / 13.50 = 0.89 month
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
Since lead time is 2 weeks, order should be made 2 weeks before : 17th June
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Annual demand / EOQ
94149 / 6974.50
= 13.50 times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Holding cost * EOQ /2
0.75 * (6974.50/2) = 2615.44
f. What is the resulting annual ordering cost?
Annual ordering cost $
Ordering cost * number of orders
$186 * 13.50 = $2,511
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. ok ht inces
a. Owner invested $60,000 cash in the company along with equipment that had a $26,000 market value in exchange for its common stock.
b. The company paid $2,700 cash forfrent of office space for the month.
c. The company purchased $14,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and immediately collected the $2,600 cash earned.
e. The company completed work for a client and sent a bill for $7,700 to be received within 30 days.
f. The company purchased additional equipment for $5,100 cash.
g. The company paid an assistant $4,000 cash as wages for the month.
h. The company collected $4,300 cash as a partial payment for the amount owed by the client in transaction e.
i. The company paid $14,000 cash to settle the liability created in transaction c.
j. The company paid $1,100 cash in dividends to the owner (sole shareholder). ad time
Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
I used an excel spreadsheet because there is not enough room here.
Explanation:
The following lots of Commodity Z were available for sale during the year.
Beginning inventory 11 units at $48
First purchase 16 units at $51
Second purchase 20 units at $56
Third purchase 19 units at $58
The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?
a.$1,326
b.$3,566
c.$3,543
d.$1,104
The rate of return on the common stock of Flowers by Flo is expected to be 14 percent in a boom economy, 8 percent in a normal economy, and only 2 percent in a recessionary economy. The probabilities of these economic states are 20 percent for a boom, 70 percent for a normal economy, and 10 percent for a recession. What is the variance of the returns
Answer:
the variance is 0.001044
Explanation:
The computation of the variance of the returns is shown below:
But before that expected return to be determined
E(r) = Sum of (probabilities × expected return)
= 0.20 × .14 + 0.70 × 0.08 + 0.10 × 0.02
= 0.086
Now
variance = Sum of (individual return - mean return)^2
= 0.20 × (0.14 -0.086)^2 + 0.7 × (0.08 - 0.086)^2 + 0.10 × (0.02 - 0.086)^2
= 0.001044
hence the variance is 0.001044
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows.
Variable manufacturing cost per unit $6
Variable selling and administrative cost per unit 2
Fixed manufacturing overhead per month $300,000
Fixed selling and administrative cost per month 600,000
Required:
a. Determine the company's monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.
c. Compute the company’s margin of safety if its current monthly sales level is $2,500,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume.
Answer:
a. 75,000 units
b. $1,700,000
c. 0.40 or 40 %
d. $60,000
Explanation:
Break-even point is the level of activity where a firm neither makes a profit nor a loss.
Break-even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Unit Selling Price less Variable Costs per unit
= $20 - $6 - $2
= $12.00
Therefore,
Break-even point (units) = ($300,000 + $600,000) ÷ $12.00
= 75,000 units
Sales (dollars) to reach target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution ÷ Sales
= $12.00 ÷ $20.00
= 0.60
Therefore,
Sales (dollars) to reach target profit = ($300,000 + $600,000 + 1,200,000) ÷ 0.60
= $1,700,000
Margin of Safety = (Sales level - Break-even Sales level) ÷ Sales level
= ($2,500,000 - $1,500,000) ÷ $2,500,000
= 0.40 or 40 %
Calculation of Incremental Monthly Operating Income
Incremental Sales $100,000
Less Incremental Variable Costs (5,000 × $8) ($40.000)
Incremental Contribution $60,000
Less Incremental Fixed Costs $0
Incremental Operating Income $60,000
Presented below are certain account balances of Oriole Products Co.
Rent revenue $6,520 Sales discounts $8,240
Interest expense 13,460 Selling expenses 99,440
Beginning retained earnings 114,900 Sales revenue 407,700
Ending retained earnings 134,130 Income tax expense 25,015
Dividend revenue 71,910 Cost of goods sold 188,927
Sales returns and allowances 12,910 Administrative expenses 75,820
Allocation to noncontrolling interest 20,040
From the foregoing, compute the following:
a.Total net revenue:_________
b. Net income:__________
c. Income attributable to controlling stockholders:___________
Answer:
a. Sales revenue 407700
Sales discounts 8240
Sales returns and allowances 12910 (21150)
Net sales 386,550
Rent revenue 6520
Dividend revenue 71910
Total net revenue $464980
b. Total net revenue $464980
Less: Expenses
Cost of goods sold 188927
Selling expenses 99440
Administrative expenses 75820
Interest expense 13460
Income tax expense 25015 $402662
Net income $62318
(c) Total consolidated net income $62318
Less: Allocation to noncontrolling interest $20040
Income attributable to controlling $42278
stockholders
Which factors influence changes in consumer demand? Check all that apply.
market share
elasticity
O international trade
O clearance sales
O income
Answer:
2,4, and 5
Explanation:
Answer:
elasticity
clearance
income
Explanation:
Ignacio received his certificate in hospitality management Which type of schooling would give him a certificate?
O a two-year college
O a vocational school
O a four-year college
O high school
Answer: B: a vocational school
Explanation:
The kind of the schooling that would give him a certificate is a four-year college. Thus, option second is correct.
What is hospitality management?The study of the hospitality business is known as hospitality management and tourism. A degree in the field may be conferred by a university college specialized in hotel management studies or a business school with a related department.
Hospitality managers oversee the day-to-day operations of a restaurant or hotel, including hiring and firing employees, ensuring that the facilities are properly maintained, guaranteeing client satisfaction, and maintaining administrative and financial records.
A four-year college is the type of education that would get him a certificate. As a result, option two is correct.
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Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name.Tara evidently produces __________ .
Answer:
Middlemen's brands
Explanation:
A middlemen's brand can be defined as a type of business in which a manufacturing company that is into the production of goods sells its products to either a wholesaler, retailer without adding their brand name. Thus, this middlemen then sell the product with their own brand name.
In this scenario, Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name.Tara evidently produces middlemen's brands.
Which of the following BEST describes the primary role of a compliance and ethics professional?
O A. ensures that risks are appropriately prioritized
B. performs background checks on new employees
C. Includes compliance and ethics questions in exit interviews
D. promotes a culture of compliance and ethics throughout the organization
Answer:
D. Promotes a culture of compliance and ethics throughout the organization
Explanation:
Every negative actions that conducted by a member of company will expose the company to the risk of lawsuits.
To prevent this from happening, the company often hire compliance and ethics professional to ensure that the employees are following a set of procedures that prevent them from violating the social norms.
Example of program that conducted by compliance and ethics professional are: providing guidelines to avoid sexual harassment, providing training to deal with conflicts against the customers, etc.
Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
Units Produced Total Cost
March 10,029 $16,724
April 8,765 15,312
May 10,480 17,492
June 8,600 14,860
July 9,293 15,781
Required:
a. Compute the variable cost per unit using the high-low method.
b. Compute the fixed cost elements using the high-low method.
c. Estimate the total cost if the company produces 8,170 units.
Answer & Explanation:
a. Using the high-low method, Variable cost per unit is;
[tex]= \frac{Highest Variable Cost - Lowest Variable Cost}{Highest number of units - Lowest number of Units} \\\\= \frac{17,492 - 14,860}{10,480 - 8,600} \\\\= $1.40[/tex]
= $1.40
b. Fixed Cost
= Total Cost at lowest unit - Variable costs at lowest unit
= 14,860 - (1.4 * 8,600)
= $2,820
c. Variable cost at 8,170 units + Fixed cost
= (8,170 * 1.4) + 2,820
= $14,258