Answer:
the current supply curve shifts to the left.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
Thus, it's the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
One of the importance associated with the pricing of products is that, it improves the image of a business firm.
Hence, if firms expect prices of products to be higher or rise in the future and the product is not perishable i.e wouldn't get spoilt in a short time, then the current supply curve shifts to the left and as such only small quantity of the product would be supplied by the business firm.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.
Bank charged interest on overdraft Rs. 500 journal entry
Answer:
interest is overdraft a/c.
Explanation:
In the cash book the above entry would be recorded on the credit side and as we know that pass book is an exact opposite record of the cash book so, interest on bank overdraft would be recorded on the debit side of the pass book
a report must be sent promptly to FINRA if a registered employee of a member firm for all of the following EXCEPT: A has violated the Securities Acts B is the subject of a written customer complaint alleging theft C is suspended or expelled by another Self Regulatory Organization D is ticketed for careless driving
Answer:
D
is ticketed for careless driving
Explanation:
FINRA Rule 4530 says one can report
each member of the firm promptly to FINRA, within 30 calendar days,
Chin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each bar is $5 for the first bar, $4.50 for the second bar, $4 for the third bar, $3.50 for the fourth bar, and $3 for the fifth bar. The marginal cost of producing the bars is $2 each. What is Chin's total consumer surplus from the five bars that he purchased
Answer:
$5
Explanation:
Blue Spruce Company is considering two new projects, each requiring an equipment investment of $101,800. Each project will last for three years and produce the following cash flows:
Year Cool Hot
1 $40,400 $44,400
2 45,400 44,400
3 50,400 44,400
136,200 $133,200
The equipment will have no salvage value at the end of its three-year life. Blue Spruce Company uses straight-line depreciation and requires a minimum rate of return of 12%.
Present value data are as follows:
Period 12%
1 0.89286
2 0.79719
3 0.71178
Present Value of an Annuity of 1
Period 12%
1 0.89286
2 1.69005
3 2.40183
Required:
Compute the net present value of each project.
Answer:
50,400 44,400
0.79719
1.69005
Answer:
1.00.87.3
Explanation: i dont know
Wanda's financial advising firm wants to know the private client list held by a competing firm in town. Wanda sets up a meeting with an employee at the rival firm, and while there, Wanda downloads the client list to a flash drive when the employee steps away from his office. Three days later, Wanda uses the flash drive to open the client list. Does Wanda's conduct violate trade secret law
Answer:
Yes, because the method by which Wanda discovered the trade secret is illegal according to trade secret law
Explanation:
In the case when wanda set up the meeting with an employye for the competitor firm and it download the list of the client at the time when the employee step away so here the trade secret law should be violated as the method that wanda discovered is that the trade secret should be illegal as per the law of the trade secret
In regards to Wanda violating trade secret law, the answer is Yes, because the method by which Wanda discovered the trade secret is illegal according to trade secret law.
Trade secret law:
Was established to guard against illegal theft of company secrets. Makes provision for the acquisition of trade secrets in a legal manner.Wanda acquired the secrets under false pretenses when she set up a meeting in order to get the secrets. She did not seek permission for the secrets and so took them illegally and without authorization.
In conclusion, option C is correct.
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Rajat Gupta's role in providing inside information to Galleon Group for the benefit of Galleon Group's stockholders and himself is an example of
Answer:
moral hazard
Explanation:
Moral hazard can be regarded as the situation which take place when an individual get some chances whereby he/she can take advantage of a financial deal or financial situation, when he/she knows that all the risks as well as fallout will be accounted to another party. moral hazard can be reduced by strong up policies which will prevent immoral behavior as well as regular monitoring. For instance, Rajat Gupta's role in providing inside information to Galleon Group for the benefit of Galleon Group's stockholders and himself is an example of moral hazard
You have deposited $1,200 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of 10 years
Answer:
$2,629.35
Explanation:
The amount in future for the dollar invested today is known as the Future Value (FV)
We can simply calculate the Future Value using a Financial Calculator as follows :
PV = - $1,200
PMT = $0
P/YR = 2
I = 8 %
N = 10 x 2 = 20
FV = ??
Therefore,
The Future Value (FV) will be $2,629.35
You will have $2,629.35 in this account at the end of 10 years.
INVENTORY METHODS: Co. F has the following units of beginning inventory and purchases for the year: beginning inventory 100 units at $40 each, a 2/28 Purchase 200 units at $50 each and a 6/15 purchase of 200 units at $60 each and a 12/15 purchase of 100 units at $80 each. Using the FIFO method, if the ending inventory is 400 units, what is the cost of the ending inventory
Answer: Cost of closing inventory =$25,000
Explanation:
Using the FIFO which is the First In First Out method, The inventorY purchased first be sold first with the the ending inventory consisting of the most recent purchases.
Given nthta ending inventory is 400 units, we start fro the most recent purchase
12/15 purchase of 100 units at $80 each=$8,000
6/15 purchase of 200 units at $60 each=$12,000
we are left with 100 units so
2/28 Purchase 100 units at $50 each =$5000
Cost of closing inventory =$8,000+$12,000+$5000= $25,000
Therefore cost of 400 units using the FIFO Method is $25,000.
Suppose you are trying to save $20,000 to buy a used boat and you are going to deposit $5,000 today in savings account. The higher the interest rate _____.
Answer:
The higher the interest rate, the lower the time required.
Explanation:
Giving the following information:
Suppose you are trying to save $20,000 to buy a used boat and you are going to deposit $5,000 today in a savings account.
The higher the interest rate, the lower the time required.
As the money invested and the future value required are fixed, the only variables are the interest rate and the time between deposit and objective.
Each of the following documents is used in the control of cash disbursements except a.cash register tapes. b.receiving reports. c.purchase orders. d.purchase requisitions. g
Answer: a. cash register tapes.
Explanation:
When you go to a shop and buy something at the till and the cashier prints a receipt and gives it to you, that paper is a cash register tape.
A cash register tape therefore shows the goods sold and the amount the goods were sold at. It is therefore not used as a method of control for cash disbursement which is cash going out of a business but rather for cash that is coming into the business.
Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing
Answer:
58.9
Explanation:
Calculation to determine what would the forecast for the next period be using exponential smoothing
Next period forecast= [ (1 - Alpha) × Current forecast]+Alpha*Actual demand
Let plug in the formula
Next period forecast= [ ( 1 - 0.3 ) × 58] +0.3*61
Next period forecast=40.6+18.3
Next period forecast=58.9
Therefore what would the forecast for the next period be using exponential smoothing is 58.9
A firm has fixed costs of $1.2 million and depreciation of $1 million. At a sales level of $3.6 million, the variable costs of $2.304 million. What is the accounting break-even level of sales
Answer: 6.11 million
Explanation:
The accounting break-even level of sales will be calculated as:
= (depreciation + fixed costs) / (1 - (variable costs/sales))
= (1.2million + 1million) / [1 - (2.304million / 3.6million))
= 2.2 million / (1 - 0.64)
= 2.2million /0.36
= 6.11 million
Therefore, the the accounting break-even level of sales is $6.11 million.
Discuss how a change in a product design could produce a change in the design of a planning and control system.
Product design is cross-functional, knowledge-intensive work that has become increasingly important in today's fast-paced, globally competitive environment. It is a key strategic activity in many firms because new products contribute significantly to sales revenue. When firms are able to develop distinctive products, they have opportunities to command premium pricing. Product design is a critical factor in organizational success because it sets the characteristics, features, and performance of the service or good that consumers demand. The objective of product design is to create a good or service with excellent functional utility and sales appeal at an acceptable cost and within a reasonable time. The product should be produced using high-quality, low-cost materials and methods. It should be produced on equipment that is or will be available when production begins. The resulting product should be competitive with or better than similar products on the market in terms of quality, appearance, performance, service life, and price.
Our company makes and sells a single product at the selling price of $97 per unit. In January, we upgraded our manufacturing facility to increase capacity and reduce variable costs per unit (this significantly increased our fixed manufacturing costs). We now have the capacity to make 1,000 units per month. Over the next three months, we expect our production and sales to average 700 units per month. We recently received a take-it-or-leave-it offer for 100 units from a one-time customer. The customer offers to pay us $65 per unit. To help us evaluate this offer, our accounting staff provided the following information (identical for our regular sales and the special order): our normal absorption manufacturing cost per unit equals $50, and our variable selling cost per unit equals $15. Which of the following is correct?
a. We should reject the offer because the offered price is much lower than the normal selling price
b. We should accept the offer because it would reduce our excess capacity cost
c. We should reject the offer because it would reduce our ROI
d. We should accept the offer because it would increase our net operating income
e. Quantitatively, we are indifferent between accepting and rejecting the offer
Answer:
d. We should accept the offer because it would increase our net operating income
Explanation:
A differential analysis only includes relevant costs. This means that only costs that are affected by the special order are considered. In this case, variable costs are the only relevant costs, since fixed costs will occur regardless of the acceptance or rejection of the special order. This special order will increase the company's operating profits by ($65 - $15) x 100 = $5,000
On January 1, 2016, Bennett Corporation had 20,000 shares of common shares outstanding. During the year, it sold another 2,600 shares on July 1 and reacquired 600 shares on November 1. The corporation earned $337,600 net income. The company also has 15,000 shares of $10 par value, 6%, cumulative preferred stock on which no dividends have been declared for the last two years. What is the basic earnings per share for the year
Answer:
bro i honestly have no clue I'm only in 6th grade and im tryna get points.
Explanation:
Marissa gives Larry a check made payable to cash in payment for a computer that she is buying from him. Larry then gives the check to his nephew, Gary Graduate, without indorsing it, as a graduation gift. Marissa then stops payment on the check because she claims that Larry breached the contract. When the check bounces, Gary makes a claim against Marissa for the amount of the check. Marissa responds that Gary cannot collect on the check since he is not a holder because Larry never indorsed the check to him. Which statement is true
Answer:
1. Gary is at least a holder
Explanation:
According to the given situation, the first option is correct as the check has been provided as cash also there is no name written over the check so the larry can provide it to anyone else for enchasing the check
Therefore as per the given situation Gary should be the holder of the check so that he can provide to anyone else for encashing it
What is the present value of a constant perpetuity of 25 per year where the required rate of return is 5%
Answer:
The present value of a constant perpetuity of 25 per year where the required rate of return is 5% is:
$500
Explanation:
a) Data and Calculations:
A constant perpetuity = $1
Present value factor of a constant perpetuity for 25 per year at 5% is $1/0.002
Number of periods for the perpetuity per year = 25
Required rate of return = 5%
Rate of return per period = 5%/25 = 0.002
Therefore, the value of a constant perpetuity = $1/0.002
= $500
The $500 can be used to multiply any amount given obtain the total value of the perpetuity.
The present value of a constant perpetuity of 25 per year where the required rate of return is 5% is $500
Given the information below :
We know that a constant perpetuity(payments) = $1
Required rate of return = 5%
Rate of return per period = 5%/25 = 0.002
Number of periods for the perpetuity per year = 25
Therefore, the value of a constant perpetuity
= Payments / Rate of return per period
= $1 / 0.002
= $500
Hence, present value of a constant perpetuity of 25 per year where the required rate of return is 5% is $500
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On January 1, 2022, Concord Company issued $2,800,000 face value, 7%, 10-year bonds at $3,006,070. This price resulted in a 6% effective-interest rate on the bonds. Concord uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.
(a) Prepare the journal entries to record the following transactions.
i. The issuance of the bonds on January 1, 2022.
ii. Accrual of interest and amortization of the premium on December 31, 2022.
iii. The payment of interest on January 1, 2023.
iv. Accrual of interest and amortization of the premium on December 31, 2023.
Answer:
Concord Company
Journal Entries:
i. The issuance of the bonds on January 1, 2022:
Debit Cash $3,006,070
Credit Bonds Payable $2,800,000
Credit Bonds Premium $206,070
To record the issuance of bonds at premium.
ii. Accrual of interest and amortization of the premium on December 31, 2022:
Debit Interest expense $180,364
Debit Premium Amortization $15,636
Credit Interest Payable $196,000
To accrue interest and record premium amortization.
iii. The payment of interest on January 1, 2023:
Debit Interest Payable $196,000
Credit Cash $196,000
To record payment of interest.
iv. Accrual of interest and amortization of the premium on December 31, 2023:
Debit Interest expense $179,426
Debit Premium Amortization $16,574
Credit Interest Payable $196,000
To accrue interest and record premium amortization.
Explanation:
a) Data and Calculations:
January 1, 2022:
Face value of bonds issued = $2,800,000
Proceeds from the bonds issue 3,006,070
Bonds Premium = $206,070
Coupon interest rate = 7%
Effective interest rate = 6%
Bonds maturity period = 10 years
Payment of annual interest = each January 1
December 31, 2022:
Interest expense = $180,364 ($3,006,070 * 6%)
Cash payment = $196,000 ($2,800,000 * 7%)
Amortization of premium $15,636 ($196,000 - $180,364)
Bonds' fair value = $2,990,434 ($3,006,070 - $15,636)
December 31, 2023:
Interest expense = $179,426 ($2,990,434 * 6%)
Cash payment = $196,000 ($2,800,000 * 7%)
Amortization of premium $16,574 ($196,000 - $179,426)
Bonds' fair value = $2,973,860 ($2,990,434 - $16,574)
Analysis:
i. The issuance of the bonds on January 1, 2022:
Cash $3,006,070 Bonds Payable $2,800,000 Bonds Premium $206,070
ii. Accrual of interest and amortization of the premium on December 31, 2022:
Interest expense $180,364 Premium Amortization $15,636 Interest Payable $196,000
iii. The payment of interest on January 1, 2023:
Interest Payable $196,000 Cash $196,000
iv. Accrual of interest and amortization of the premium on December 31, 2023:
Interest expense $179,426 Premium Amortization $16,574 Interest Payable $196,000
Why might it be argued that corporations do not have a comparative advantage when investing in real estate as a means of diversification from the core business?
Solution :
Real estate is defined as something that is related to the buildings or lands. All the properties that are physically present forms real estate in terms of land and buildings. It includes, vacant land or buildings, commercial real estate, industrial as well as residential real estate.
The corporations does not have a comparative advantage when they invest in the real estate by a means of the diversification from its core business. This is because the organizations do not hold the real estate in the large number of the geographical area. They also do not hold a number of different types of the properties. Therefore, they do not tend to diversify from their real estate holdings as the large institutional investor who hold a more diversified and a larger portfolio.
You consider buying a share of stock at a price of $24. The stock is expected to pay a dividend of $1.32 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $27. The stock's beta is 0.6, rf is 10%, and E[rm] = 20%. What is the stock's abnormal return?
Answer:
2%
Explanation:
Actual return = [(Dividend + Capital gain) / Purchase price] * 100
= [($1.32 + $27 - $24) / $24] * 100
= 18%
Expected return = rf + Beta*(E(rm) - rf)
= 10% + 0.6*(20% - 10%)
= 16%
Abnormal return = Actual return - Expected return
Abnormal return = 18% - 16%
Abnormal return = 2%
Coronado Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.
Aug. 1 Established the petty cash fund by writing a check payable to the petty cash custodian for $205.
15 Replenished the petty cash fund by writing a check for $200.90. On this date, the fund consisted of $4.10 in cash and these petty cash receipts: freight-out $94.00, entertainment expense $47.60, postage expense $42.60, and miscellaneous expense $14.90.
16 Increased the amount of the petty cash fund to $305 by writing a check for $100.00.
31 Replenished the petty cash fund by writing a check for $288.90. On this date, the fund consisted of $16.10 in cash and these petty cash receipts: postage expense $140.60, entertainment expense $92.40, and freight-out $54.40.
Required:
Journalize the petty cash transactions.
Answer:
Aug 1
Dr Petty Cash $205.00
Cr Cash in bank $205 00
Aug 15
Dr Freight-out $94.00
Dr Entertainment expense $47.60
Dr Postage expense $42.60
Dr miscellaneous expense $14.90
Dr Cash over and short $1.8
Cr Cash $200.90
Aug 16
Dr Petty Cash 205.00
Cr Cash $205.00
Aug 31
Dr Postage expense $140.60
Dr Entertainment expense $92.40
Dr Freight-out $54.40
Dr Cash over and short $1.5
Cr Cash $288.90
Explanation:
Preparation of the journal entries for petty cash transactions
Aug 1
Dr Petty Cash $205.00
Cr Cash in bank $205 00
Aug 15
Dr Freight-out $94.00
Dr Entertainment expense $47.60
Dr Postage expense $42.60
Dr miscellaneous expense $14.90
Dr Cash over and short $1.8
($200.90-$94.00-$47.60-$42.60-$14.90)
Cr Cash $200.90
Aug 16
Dr Petty Cash $205.00
Cr Cash $205.00
($305.00-$100.00)
Aug 31
Dr Postage expense $140.60
Dr Entertainment expense $92.40
Dr Freight-out $54.40
Dr Cash over and short $1.5
($288.90-$140.60-$92.40-$54.40)
Cr Cash $288.90
At the end of year 8, Shore Co. held trading securities that cost $17,500 and which had a year-end market value of $19,000. All of these securities were sold during year 9 for $22,000. For the year ended on December 31, year 8, Shore should report a gain of
Answer:
$1,500
Explanation:
Calculation to determine what Shore should report as a gain
Using this formula
Unrealized gain=Market value-Trading securities value
Let plug in the formula
Unrealized gain=$19,000-$17,500
Unrealized gain=$1,500
Therefore Shore should report a gain of $1,500
a) Suppose a country is able to produce a maximum of either 300 units of lumber or 100 units of rice. This country is currently allocating its labor resources to produce 75 units of lumber and 75 units of rice. To increase its lumber production by 6 units to 81, the country faces an opportunity cost of
Answer: 2 units of rice
Explanation:
Opportunity cost simply means the real cost of something else that we forgo or benefit lost. .
a) Based on the information given above, the opportunity cost of producing lumber with regards to the units of rice will be:
= 100/300
= 1/3 units of rice
This means that 1/3 unit of rice will be given up for every 1 unit of lumber
To increase its lumber production by 6 units, then the units of rice that'll be sacrificed will be:
= 6 × 1/3
= 2 units of rice
Therefore, country faces an opportunity cost of 2 units of rice.
In chapter 7 bankruptcy , a debtor
Applications that integrate business activities across departmental boundaries are often referred to as _____________ planning systems.
Answer:
Enterprise resource.
Explanation:
Enterprise Resource Planning (ERP) is a business strategy process where organizations manage and integrate the main parts of their day-to-day business activities by using software applications.
The ERP software system is used to integrate planning, accounting, finance, marketing and human resources.
For instance, when an organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial Enterprise Resource Planning (ERP) system, It should be noted that a faulty migration of historical data from the old system to the new system represent the highest potential risk because you won't be able to measure and analyze performance.
Hence, software applications or programs that integrate all business activities across departmental boundaries such as marketing, procurement, customer relationship, sales, etc., are often referred to as enterprise resource planning systems.
tylor is considering a five-year project that will require $859,000 for new fixed assets that will be deprecieated what is the amount of the aftertax salvage value
Answer:
$120,603.60
Explanation:
The computation is shown below:
But before that the following calculations to be done
Salvage Value = Cost of Asset × 18%
= $859,000 × 18%
= $154,620
Since the fixed asset depreciated to zero for the 5 years so the book value should also be zero
Now
Capital Gain = Salvage Value - Book value of Asset
= $154,620 - $0
= $154,620
Tax on Capital Gain = Capital Gain × Tax Rate
= $154,620 × 0.22
= $34,016.4
And finally,
After Tax Salvage Value = Salvage Value - Tax on Capital Gains
= $154,620 - $34,016.40
= $120,603.60
Cushenberry Corporation had the following transactions.
1. Sold land (cost $8,320) for $10,400.
2. Issued common stock at par for $21,600.
3. Recorded depreciation on buildings for $13,800.
4. Paid salaries of $6,500.
5. Issued 1,000 shares of $1 par value common stock for equipment worth $9,600.
6. Sold equipment (cost $11,200, accumulated depreciation $7,840) for $1,344.
Required:
For each transaction above, prepare the journal entry.
Explanation:
1) Sold land (cost $8,320) for $10,400.
Explanation:
1. Sold land (cost $8,320) for $10,400.
g A monopolist maximizes profits by finding Group of answer choices the rate of output where price equals marginal cost. the rate of output where marginal revenue equals marginal cost. the rate of output where marginal revenue equals marginal product. the price where price exceeds marginal revenue by that largest amount. the price where average revenue and marginal cost are equal.
Answer:
the rate of output where marginal revenue equals marginal cost.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Additionally, a monopolist refer to any individual that deals with the sales of unique products in a monopolistic market.
A monopolist maximizes profits by finding the rate of output or quantity where marginal revenue (MR) equals marginal cost (MC) and the intersection of these two (2) points determines the equilibrium of a business firm.
Marginal revenue can be defined as the additional amount of money that is gained or generated by a business firm from the sales of an additional unit of a product or service.
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.
You can draw attention to your text by making it darker and thicker. This format is called
bold
highlight
italic
underline
Answer:
Bold
Explanation:
italic just makes a little slant to the text, underline underlines the text, and highlighting glows the background of the text, bolding the text makes it dark and thick
Even though Firm A's current ratio exceeds that of Firm B, Firm B's quick ratio might exceed that of A. However, if A's quick ratio exceeds B's, then we can be certain that A's current ratio is also larger than that of B. True False
Answer: False
Explanation:
If Firm A's current ratio exceeds that of Firm B, it is still possible that B's quick ratio is larger than A's. If A's quick ratio is larger than B's however, then there is still a possibility that B's current ratio can be larger than A's.
The current ratio is the Current Assets divided by Current liabilities. The Quick ratio is Current Assets less inventory divided by Current liabilities.
B's current ratio can therefor be larger than A's if it has more inventory than A such that when we calculate the current ratio of B, the extra inventory would give it a higher current ratio than A.