Answer:
1. Market development
2. Market penetration
3. Diversification
Explanation:
we have already been given a definition of these concepts from question
1.
for Ann and hammer: it is market development because they are trying to create a product for new purposes
2.
for apple: since they are opening mini stores within target they are trying to have an expansion approach where more products and services would be sold to their customers.
3.
for disney: they are diversifying into a new product entirely. ESPN is a well known channel for sporting related activities.
Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods. Holmes hires staff on a monthly basis from two different temporary staffing firms - Professional Temps (PT) and Support on Demand (SD). In June, Empire hired 14 staff members from PT and 10 from SD. PT is a more established firm and SD is a newly organized firm in the staffing market. Holmes has compiled the following information for June:
Budgets for June PT staff SD staff
Budgeted hourly rate $50 $45
Budgeted time per app. (hours) 1.2 1.4
Actual results for June PT staff SD staff
Actual hourly rate $52 $47
Actual time per app. (hours) 1.4 1.2
Number of actual apps completed 2604 1600
Required:
a. Determine the labor rate and efficiency variances for (a) 14 PT staff and (b) the SD staff hired in June.
b. Comment on the efficiency of the PT and SD staff hired by Empire Mortgage.
Answer:
a. Labor variances for 14 PT staff:
Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)
= ($50 - $52) x 1.40 x 2,604
= $7291.20 (Unfavorable)
Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate
= [(1.20 * 2,604) - (1.40 * 2,604)] * $50
= [3,124.80 - 3,645.60] * $50
= $26,040 (Unfavorable)
Labor Cost variance = Labor rate variance + Labor efficiency variance
= $7,291.20 (Unfavorable) + $ 26,040 (Unfavorable)
= $33,331.20 (Unfavorable)
Labor variances for 10 SD staff:
Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)
= ($45 - $47) * 1.20 * 1,600
= $3840 (Unfavorable)
Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate
= (1.40*1,600) – (1.20*1,600)]*$45
= [2,240 – 1,920] * $45
= $14,400 (Favorable)
Labor Cost variance = Labor rate variance + Labor efficiency variance
= $3,840 (Unfavorable) + $ 14,400 (Favorable)
= $10,560 (Favorable)
Van Frank Telecommunications has a patent on a cellular transmission process.
1. The company has amortized the $19.80 million cost of the patent on a straight-line basis, since it was acquired at the beginning of 2012.
2. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost.
3. The decision was made at the end of 2016 (before adjusting and closing entries).
What is the appropriate adjusting entry for patent amortization in 2016 to reflect the revised estimate.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Record the adjusting entry for patent amortization in 2016.
Answer:
Dr Amortization expense 5.50
Cr Accumulated Amortization - Patent 5.50
Explanation:
Preparation of Journal entries to Record the adjusting entry for patent amortization in 2016
Van Frank Telecommunications
Dr Amortization expense 5.50
Cr Accumulated Amortization - Patent 5.50
(To record amortization of patent)
Calculation for the Amortized expense
Cost of the asset $19.80
Annual amortization $2.20
($19.80 / 9 years)
Amortization till date (2012-2015) $8.80
($2.20*4)
Unamortized value ($19.80-$8.80) $11.00
Remaining life 2 years
Amortized expense ($11.00/2) $5.50
Debiting $1.65 million from Patent Amortization Expense and crediting $1.65 million from Accumulated Patent Amortization would be the adjusting entry.
After the estimate revision, the yearly amortization will be $3.30 million ($19.80 million cost of the patent x 6 years).
Debiting Patent Amortization Expense by $1.65 million and crediting Accumulated Patent Amortization by $1.65 million would be the adjustment item for 2016. The projected useful life of the patent has changed, necessitating an adjustment entry to the annual amortization expense, which is reflected in this item.
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Pham can work as many or as few hours as she wants at the college bookstore for $12 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or other potential jobs. One potential job, at a café, will pay her $15 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $13 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work.
If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
Answer:
4 hours
Explanation:
For Pham to maximize her income, she must consider the jobs with the highest per-hour earnings first. She has 15 hours to work. Her priorities should be as below.
Work at the cafe for 6 hours for $15 per hourWork at the garage for 5 hours for $13 per hourWork at the books store for 4 hours for $12 per hourA total of 15 hours. Pham can work at the book store for 4 hours per week to maximize her income.
Pham will have to work 4 hour per week at the bookstore to maximize her pay.
Given data
Total number of hours available per week = 15 hours
Cafe will pay her $15 per hour up to 6 hoursGarage offers $13 per hour up to 5 hoursDycare Centre offers $11.50 per hours for as long as she can workOut of the potential job, only the cafe and garage centre pay is more than the pay of bookstore
Hence, in order to maximize the amount of money, Pham have to devote 6 hours at the cafe, 5 hours at the garage centre and remaining 4 hours at bookstore,
In this way, the amount of money she will receives will be at maximum.
Working at Cafe she will make $15 * 6 = $90 Working at Garage centre she will make $13 * 5 = $65Working at Bookstore she will make $12*4 = $48Total amount she will earn = $90 + $65 + $48
Total amount she will earn = $203
Therefore, Pham will have to work 4 hour per week at the bookstore to maximize her pay.
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Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much were earnings per share? b. Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14?
Answer:
Hello your question is incomplete below is the complete question
Company XYZ closed at $53.02 per share with a P/E ratio of 14.02 .
Answer :
A) $3.79
B) underpriced
Explanation:
Given data:
Closing price ( price per share ) = $53.02
P/E ratio = 14.02
A ) How much earnings per share
Earnings per share = price per share / (P/E) ratio
= 53.02 / 14.02 = $3.79
B) To check if the stock is overpriced, underpriced or about right
i) At P/E ratio = 12
Earnings per share = 53.02 / 12 = $4.43
Earning yield = ( earning per share / market value ) * 100
= ( 4.43 / 53.02 ) * 100 = 8.33%
ii) At P/E ratio = 13
Earnings per share = 53.02 / 13 = $4.09
Earning Yield = ( earning per share / market value ) * 100
= (4.09 / 53.02 ) * 100 = 7.69%
iii) At P/E ratio = 14
Earnings per share = 53.02 / 14 = $ 3.8
Earnings yield = ( earning per share / market value ) * 100
= ( 3.8 / 53.02 ) * 100 = 7.14%
The average of the earning yield given P/E ratio is 12-14
= ( 8.33 + 7.69 + 7.14 ) % / 3 = 7.72%
while The earning yield given P/E ratio is 14.02
= ( earning per share / market value ) * 100
= ( 3.79 / 53.02 ) * 100 = 7.12%
Therefore the stock is underpriced
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018.
Accounts Payable $ 610
Accounts Receivable 310
Accumulated Depreciation 910
Cash 310
Common Stock 210
Deferred Revenue 210
Depreciation Expense 310
Equipment 3,210
Income Tax Expense 310
Interest Revenue 110
Notes Payable (long-term) 210
Notes Payable (short-term) 510
Prepaid Rent 110
Rent Expense 410
Retained Earnings 1,510
Salaries and Wages Expense 2,210
Service Revenue 6,230
Supplies 510
Supplies Expense 210
Travel Expense 2,610
Required:
a. Prepare and adjusted trial balance on September 30, 2018.
b. Is the Retained Earnings balance of $1,503 the amount that would be reported on the balance sheet as of September 30, 2018?
Answer:
Please see attached preparation of the above trial balance and retained Earnings.
Explanation:
Please find attached adjusted trial balance and updated value of retained earning in the balance sheet.
Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.
Answer:
The correct option is C) It should derecognize these receivables
Explanation:
Based on the information given the right and appropriate treatment of the ACCOUNT RECEIVABLES is to derecognized the receivable reason been that Alpha Inc does not have the right to either sell or pledge the receivables neither can he repurchased the receivable from the financial institution which is the bank despite the fact that the cash flows amount is been remitted to the bank at the end of every month.
1. Rosa Green estimates the cost of future projects for a large contracting firm. Rosa uses precisely the same techniques to estimate the costs of every potential job and formulates bids by adding a standard profit markup. For some companies, to which the firm offers its services, there are no competitors also seeking their business, so Rosa's company is almost certain to get these companies as clients. For these jobs, Rosa finds that her cost estimates are right, on average. For jobs where competitors are also vying for the business, Rosa finds that they almost always end up costing more than she estimates.
a. True
b. False
2. Rosa is less likely to win the jobs where she underestimates the costs, causing her to experience the winner's curse.
a. False
b. True
Answer:
1) a. True
Rosa is almost always right when she knows that her company is a monopoly, i.e. has no competition, but is generally wrong when her company has to compete with other contractors. It is simple, a monopolist can decide which markup percentage to use, and can use a really high one, but when competition exists, markups are not so high and profits not so abundant. That is why she almost always gets it wrong when having to deal with other competitors.
2) a. False
The winner's curse usually happens when someone wins a bid over some contract or asset, but then they realize that the actual price of the contract or asset was lower than the bid. E.g. in an auction, two people are fighting over to see who buys an antique car which increases the price of the car way beyond the real market value. But it can also happen to a company that offers very low prices, and then after they won a contract, cannot perform properly because their actual costs are higher.
When a company makes an offer, they are certain about the price of the contract and they should know the value of the services or goods that they are offering. If Rosa underestimates her costs, and prepares her offer using unrealistically low costs, then she will probably win the bid but end up losing money.
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $1,000,000, and the firm reduced its net working capital investment by $129,000.
Required:
What was the firm's 2019 operating cash flow, or OCF?
Answer:
606,000
Explanation:
Operating cash flow (OCF) is a measure of the amount of cash generated by a company's normal business operations. Operating cash flow indicates whether a company can generate sufficient positive cash flow to maintain and grow its operations, otherwise, it may require external financing for capital expansion
Operating Cashflow = Cashflow from assets + Net capital spending + Change in Net working capital
Operating Cashflow =(-265,000) + (1,000,000) + (-129,000)
Operating Cashflow = 606,000
Working
New borrowings = Long term borrowings (2019) - Long term borrowings (2018)
New borrowings = 1,620,000 - 1,420,000
New borrowings = 200,000
Cash flow to creditors = Interest expense - new borrowings
Cash flow to creditors = 96,000 - 200,000
Cash flow to creditors = 104,000
New equity = ((Common stock(2019) + additional paid in surplus(2019)) - (Common stock(2018) + additional paid in surplus(2018))
New equity = ($154,000 + $2,990,000) - ($144,000 + $2,690,000)
New equity = 3,144,000 - 2,834,000
New equity = 310,000
Cashflow to stockholders = Dividend (2019) - new equity
Cashflow to stockholders = 149,000 - 310,000
Cashflow to stockholder = -161,000
Cashflow from assets = Cashflow to creditors + cashflow to stockolders
Cashflow from assets = (-104,000) + ( - 161,000)
Cashflow from assets = -265,000
Which example is not an advantage of b entrepreneurship’s
Shenandoah Skies is the name of an oil painting by artist Kara Lee. In each of the following cases, determine the amount and character of the taxpayer’s gain or loss on sale of the painting.
A. The taxpayer is Kara Lee, who sold her painting to the Reller Gallery for $6,000.
B. The taxpayer is the Reller Gallery, who sold the painting purchased from Kara to a regular customer for $10,000.
C. The taxpayer is Lollard Inc., the regular customer that purchased the painting from the Reller Gallery. Lollard displayed the painting in the lobby of its corporate headquarters until it sold Shenandoah Skies to a collector from Dallas. The collector paid $45,000 for the painting.
Answer:
a. Kara Lee is the painter so the painting is simply part of her normal business operations in selling it.
Amount is $6,000 and this is a sale.
b. Taxpayer is Reller Gallery who sold the painting as part of their normal business operations.
Profit on Sale = Amount sold - Amount purchased
= 10,000 - 6,000
= $4,000
Amount is $4,000 and the nature is ordinary business income.
c. Lollard Inc sold this painting even though it is not part of their normal operations.
This is therefore a gain.
Gain = 45,000 - 10,000
= $35,000
Amount is $35,000 and is a Capital Gain.
At January 1, 2021, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease.
Required:
a. What will be the effect of the lease on Cafe Med's earnings for the first year (ignore taxes)?
b. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?
Answer:
Café Med
a. Café Med's earnings for the first year will be reduced by $58,000 (Operating lease expense for January 1 and December 31, 2021).
b. In Café Med's Balance Sheet, at the end of the first year, there will be a liability balance or Lease Expense Payable of $29,000 for the balance due to be paid on December 31, 2021.
Explanation:
Lease annual payments = $29,000
First payment date = January 1, 2021
Subsequent payment dates = December 31, 2021 to 2028.
Period of lease agreement = 9 years < 75% (9/13)
Cost of equipment to Crescent = $207,000
Lifespan of equipment = 13 years
Residual value at end of the lease term = $94,113
b) Café Med will recognize this lease arrangement as an operating lease. This is based on periodic rental payment on a straight-line basis, which is recorded as an operating lease expense. The liability arising will be for unpaid rentals at the end of the accounting period.
Darnell is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $4.00, and a slice of pizza costs $2.00. Let E be the amount in dollars that Darnell spends on salad and pizza. If Darnell buys S bowls of salad and P slices of pizza, then the total amount of money he spends ( E ) can be represented by the equation . Now rearrange the equation you wrote above so that P is written in terms of E and S. The quantity of pizza he buys can be represented by the equation . Suppose Darnell has $40.00 to spend on salad and pizza; that is, E=$40.00.
Complete the following table with values of S or P that make the equation true.
To complete the first row, determine the number of pizza slices Paolo can purchase with $40.00, when the number of salad bowls he purchases is 0.
Budget (Dollars) Salad (Bowls) Pizza (Slice)
40.00 0 _____
40.00 4 _____
40.00 _____ 0
Answer:
1. If Darnell buys S bowls of salad and P slices of pizza, then the total amount of money he spends ( E ) can be represented by the equation;
E = 4S + 2P
2. Now rearrange the equation you wrote above so that P is written in terms of E and S. The quantity of pizza he buys can be represented by the equation;
E = 4S + 2P
2P = E - 4S
P = (E - 4S)/2
3. Budget = $40.00. No salad purchased
Pizza = (E - 4S)/2
= (40 - 0)/2
= 20 pizzas
Budget = $40.00. 4 salads purchased
Pizza = (E - 4S)/2
= (40 - 4 * 4)/2
= 12 pizzas
Budget = $40.00. 0 Pizzas.
Salads = 40/4
= 10 salads
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million attributable to a temporary book-tax difference of $100 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $64 million. Payne has no other temporary differences. Taxable income for 2021 is $180 million and the tax rate is 25%. Payne has a valuation allowance of $10 million for the deferred tax asset at the beginning of 2021.
Required:
a. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.
b. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Answer:
A. Payne Industries
(In Million)
Dr Income tax expense $54
Cr To Deferred Tax Assets $9
Cr To Income Tax Payable $45
No Journal Entry Required
b. Dr Income tax expense Dr $54
Cr To Deferred Tax Assets $9
Cr To Income Tax Payable $45
Dr Income tax expense $12
Cr To Valuation Allowance - Deferred Tax Assets $12
Explanation:
a. Preparation of the journal entry(s) to record Payne’s income taxes for 2021,
Payne Industries
(In Million)
Dr Income tax expense $54
($45+$9)
Cr To Deferred Tax Assets $9
[($100-$64)*25%]
Cr To Income Tax Payable $45
($180*25%)
(To record income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
No Journal Entry Required
b. Preparation of the journal entry(s) to record one-fourth of the deferred tax asset ultimately will be realized
Journal Entries
(In Million)
Dr Income tax expense Dr $54
($45+$9)
Cr To Deferred Tax Assets $9
[($100-$64)*25%]
Cr To Income Tax Payable $45
($180*25%)
(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
Dr Income tax expense $12
Cr To Valuation Allowance - Deferred Tax Assets $12
[($64*75%)*25%]
(Being to record valuation allowance for deferred tax assets)
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000
Ben Testerman 120,000
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.
3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.
Required:
Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Answer:
450000
Explanation:
The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, the share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.
Dennis Ben Randy Total capital
Balance jan1,20Y5 180,000 120,000 - 300,000
Admission of randy - - 75000 75000
Salary Allowance 40000 - - 40000
Remaining income 52800 35200 22000 110,000
Partners withdrawals (46400) (17600) (11000) (75000 )
Balance Dec 31,2015 226400 137600 86000 450000
Formation of Corporation with Transfer of Property from Several Shareholders at Different Times (LO. 1, 7)Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and fair market value of $150,000) for 150 shares in Starling Corporation. On April 15, Jon exchanges his property (basis of $70,000 and fair market value of $500,000) for 500 shares in Starling. On May 10, Clyde transfers his property (basis of $90,000 and fair market value of $350,000) for 350 shares in Starling.a. If the three exchanges are part of a pre-arranged plan, who will recognize a gain on the exchanges?SelectOnly ClydeOnly JaneAll of the partiesNone of the partiesCorrect 1 of Item 1.b. Now assume that Jane and Jon exchanged their property for stock four years ago, while Clyde transfers his property for 350 shares in the current year. Clyde's transfer is not part of a pre-arranged plan with Jane and Jon to incorporate their businesses.Clyde will recognize a gain of $ on the transfer.c. Returning to the original facts, assume the property that Clyde contributes has a basis of $490,000 (instead of $90,000). Why would it be better from a tax perspective for Clyde to wait to transfer his property rather than be a part of Jane's and Jon's transfers?
Answer: See explanation
Explanation:
a. If the three exchanges are part of a pre-arranged plan, it should be noted that none of them will recognize a gain on the exchanges. Here, my the non-recognition provision applies.
b. Based on the scenario in the question, Clyde will recognize a gain of the amount of the difference between the market value and the basis. This will be:
= $350,000 – $90,000
= $260,000
c. This is because Clyde's loss will be recognized. The loss here will be: = $350,000 - $490,000 = -$140,000.
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
Purchased $400,000 of materials.
Used $362,100 of direct materials in production.
Incurred $104,200 of direct labor wages.
Applied factory overhead at a rate of 42% of direct labor cost.
Transferred $483,700 of work in process to finished goods.
Sold goods with a cost of $460,300.
Revenues earned by selling bikes, $761,600.
Incurred $154,800 of selling expenses.
Incurred $75,300 of administrative expenses.
Required:
Prepare the income statement for Rushmore Biking for the month ending February 28
Answer: See attachment
Explanation:
Note that in the attachment,
Gross profit was the difference between the revenue and the cost of goods sold. This is:
= 761600 - 460300
= 301300
The selling and administrative expenses was the addition of the selling expense and the administrative expenses.
Check the attachment for further details.
What are the key factor(s) for success in this industry/market
Answer:
Strategic Focus (Leadership, Management, Planning) People (Personnel, Staff, Learning, Development) Operations (Processes, Work) Marketing (Customer Relations, Sales, Responsiveness)
Explanation:
Whether you're operating an established small business or just starting out, an effective, ongoing marketing strategy is vital. But marketing without a plan will not only waste time and money; it may alienate your customers and stall the growth of your business.
To match your marketing strategies to the needs and expectations of your target customers and ensure that your business continues to grow, start by identifying your key success factors.
Key success factors (or KSF) are business strategies that are critical to a successful relationship with your customers.
Key success factors are decided by the needs and preferences of your market and customers, not by your business. However, consumers aren't going to tell you what those KSF are. Discovering your key success factors requires researching your customers to understand who they are, what they want from your company, and what prompts them to make a purchase.
A business generally has three to five key success factors that it needs to focus on to achieve its goals. Key success factors also may relate to areas of weakness that you must overcome to create a stronger relationship with your customers.
Once you understand and begin using your key success factors, they become part of your brand and business style.
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $2. In year 2, the quantity produced is 5 bars and the price is $4. In year 3, the quantity produced is 7 bars and the price is $6.
Required:
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Answer:
Nominal GDP in year 1 = $6
Nominal GDP in year 2 = $20
Nominal GDP in year 3 = $42
Real GDP in year 1 = $6
Real GDP in year 2 = $10
Real GDP in year 3 = $14
GDP deflator in year 1 = 100
GDP deflator in year 2 = 200
GDP deflator in year 3 = 300
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Nominal GDP = quantity produced x current year price
Nominal GDP in year 1 = (3 x $2) = $6
Nominal GDP in year 2 = 5 x $4 = $20
Nominal GDP in year 3 = 7 x $6 = $42
Real GDP = quantity produced x base year price
Real GDP in year 1 = (3 x $2) = $6
Real GDP in year 2 = 5 x $2 = $10
Real GDP in year 3 = 7 x $2 = $14
GDP deflator = nominal GDP / Real GDP x 100
GDP deflator in year 1 = $6 / $6 x 100 = 100
GDP deflator in year 2 = $20 / $10 x 100= 200
GDP deflator in year 3 = $42 / 14 x 100 = 300
Two manufacturers, denoted 1 and 2, are competing for 100 identical customers. Each manufacturer chooses both the price and quality of its product, where each variable can take any nonnegtive real number. Let pi and xi denote, respectively, the price and quality of manufacturer i's product. The cost to manufacturer i of producing for one customer is 10+5xi . Note in this expression that the cost is higher when the quality is higher. If manufacturer i sells to qi customers, then its total cost is qi(10+5xi). Each cutomer buys from the manufacturer who offers the greatest value, where the value of buying from manufacturer i is 1000+ xi - pi ; higher quality and lower price means more value. A manufacturer's is qi( pi- 10 - 5xi ). If both manufacturer offers the same value, then 50 customers buy from each manufacturer. If one manufacturer offers higher value, then 100 customers buy from it.
Find all symmetric Nash equilibria.
Answer:
Nash equilibrium will occur at the following conditions P1 = P2 = 10 and x1 = x2 = 0.
Explanation:
The term or concept known as the Nash equilibria is very important and it is often used in the determination of the kind of price strategies companies that are competing against one another will use in order to acquire more customers than the others.
So, in this question/problem we are given that there are two manufacturer that is manufacturer 1 and manufacturer 2. Also, the total number of customers both manufacturers are competing for is equal to 100.
Kindly note that we are given from the question that ''Each manufacturer chooses both the price and quality of its product, where each variable can take any non-negative real number''
If each of the manufacturer has 50 customers each that is symmetric condition.
Assuming we have a condition or situation where p1 is less than p2 for manufacturer 1, it means that manufacture 1 lessens its price, therefore manufacturer 1 will have all all the profit = 100(p1 - 10 - 5x1).
Assuming manufacturer 1 reduces both the quality and the price this time around to the point that it is justifiable to lower the price because of the quality , it means that we will have 1000 + (x1 = 0) + (p1 - compensation m).
For any of the manufacturer, If m> x' and we have that x1 = x'>0[ which is for the quality], then, the profit will be 100(10 + 5x'- m -10).
Also, For any of the manufacturer, if we have x'<m<5x' and x1 for the representation of quality, then, Customers will buy from both manufacturer making m<5x'.
Therefore, Nash equilibrium will occur at the following conditions: P1 = P2 = 10 and x1 = x2 = 0.
Elaine Sweeney went to Ragged Mountain Ski Resort in New Hampshire with a friend. Elaine went snow tubing down a run designed exclusively for snow tubers. There were no Ragged Mountain employees present in the snow-tube area to instruct Elaine on the proper use of a snow tube. On her fourth run down the trail, Elaine crossed over the center line between snow-tube lanes, collided with another snow tuber, and was injured. Elaine filed a negligence action against Ragged Mountain seeking compensation for the injuries that she sustained. Two years earlier, the New Hampshire state legislature had enacted a statute that prohibited a person who participates in the sport of skiing from suing a ski-area operator for injuries caused by the risks inherent in skiing. Using the information to answer the following questions.
a. What defense will Ragged Mountain probably assert?
b. The central question in this case is whether the state statute establishing that skiers assume the risks inherent in the sport bars Elaine's suit. What would your decision be on this issue? Why?
c. Suppose that the court concludes that the statute applies only to skiing and not to snow tubing. Will Elaine's lawsuit be successful? Explain.
d. Now suppose that the jury concludes that Elaine was partly at fault for the accident. Under what theory might her damages be reduced in proportion to the degree to which her actions contributed to the accident and her resulting injuries?
Explanation:
1. Ragged mountains assertion of defense is 'assumption of risk'. In this scenario, Elaine Sweeney exposed herself to risk while snow tubing at the absence of an instructor. snow tube run is solely for snow tubers. ragged mountain can use this defense
2. new hampshire has prohibited people from suing for injuries received due to skiing risks. in a case of this sort, ms Elaine would be assumed to know all possible risks involved. the defendant will be favored since it has been advised that people should not go into sports of these sorts witout good training and an instructor.
3. no Elaine's lawsuit will not be successful if the conclusion of the court is that the statue applies to skiing and not to snow tubing. one should be cautious during snow tubing. she went snow tubing without proper care. it is likely that she may not win the case.
4. the theory is contributory negligence theory. her damages is going to be reduced in proportion with the actions that has brought about her accident. for this reason she is partly responsible.
The Ragged Mountains were established in the year 1997 and were made to the knowledge of the public in the year 1999.
The mountains included a collection of Charlottesville surrounded by the river basin everywhere with almost the oak and yellowwoods.
1. The 'assumption of risk' defense is used by the Ragged Mountains. Elaine Sweeney put herself in danger while snow tubing in the absence of an instructor in this scenario.
The snow tube run is exclusively for tubers. This defense can be used by the ragged mountain.
2. The state of New Hampshire has made it illegal to sue for injuries sustained while skiing. In a situation like this, it's reasonable to assume that Ms. Elaine is aware of all potential dangers.
The defendant will be favored because it has been suggested that people should not participate in sports of this nature without proper training and supervision.
3. No, Elaine's lawsuit will fail if the court decides that the statute only applies to skiing and not to snow tubing. Snow tubing should be approached with caution.
She went snow tubing without taking the necessary precautions. It is very likely that she will lose the case.
4. Contributory negligence theory is the fourth theory. Her damages will be reduced in direct proportion to the actions that caused her accident. As a result, she bears some responsibility.
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What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $62, (b) $81, (c) $97, and (d) $136
Answer and Explanation:
The computation of the risk premium is shown below:-
Rate of return = Dividend ÷ Current market price of preferred stock
The dividend should be
= $100 × 8%
= $8
a Rate of return = $8 ÷ $62
= 12.90%
b. Rate of return = $8 ÷ $81
= 9.88%
c. Rate of return = $8 ÷ $97
= 8.25%
d. Rate of return = $8 ÷ $136
= 5.88%
You call a coworker to see if they can come help you solve a problem
1
TRUE FALSE Dermatology is the study of the skin, its structure, functions, diseases and
treatment
2. TRUE FALSE The skin is the 2nd largest organ of the body.
3. The functions of the skin include sensation, heat regulation, absorption, protection, excretion
and
4. The three main layers of the skin are the subcutaneous, epidermis and
The skin layer that has five layers of cells with differing characteristics is the
Sweat is produced by the gland known as the
6. The layer of skin that acts as a shock absorber to protect the bones is known as the
7. The American Academy of Dermatology recommends using a sunscreen with an SPF
of at least
Answer:
T
Explanation:
Because its true Heheheheheheehhehe sorryyyyyy
The following information relates to Sheridan Company for the year 2022.
Retained earnings, January 1, 2022 $40,320
Advertising expense $1,510
Dividends during 2022 4,200
Rent expense 8,740
Service revenue 52,500
Utilities expense 2,600
Salaries and wages expense 23,520
Other comprehensive income (net of tax) 340
Required:
a. After analyzing the data, compute net income.
b. Prepare a comprehensive income statement for the year ending December 31, 2022.
Answer:
a. Computation of net income
Particulars Amount
Service revenue $52,500
Less: Expenses
Salaries and wages expenses ($23,520)
Utilities expense ($2,600)
Rent expense ($8,740)
Advertising expense ($1,510)
Net Income $16,130
b. Computation of comprehensive income statement
Particulars Amount
Net Income $16,130
Add: Other Comprehensive Income $380
Comprehensive Income $16,470
Note: Dividend will not be included as it forms part of Income statement
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $25,000 of merchandise it purchases for resale from Troy: invoice dated. May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $16,750. Sydney pays $410 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,400 of the $25,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.
Required:
a. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
b. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answer:
Buyer
May 11 Dr Merchandise inventory 25,000
Cr Account payable 25,000
Dr Merchandise inventory 410
Cr Cash 410
May 12 Dr Account payable 1400
Cr Merchandise inventory 1400
May 20 Dr Account payable 23,600
Cash 22,892
Dr Merchandise inventory 708
(Seller)
May 11 Dr Account receivable 25,000
Cr Sales revenue 25,000
Dr Cost of goods sold 16,750
Cr Merchandise inventory 16,750
May 12 Dr Sales return and allowance 1400
Cr Account receivable 1400
Dr Merchandise inventory 938
Cr Cost of goods sold 938
May 20 Dr Cash 22,892
Dr Sales discount 708
Cr Account receivable 23,600
Explanation:
Preparation of the Journal entry for Buyer
May 11 Dr Merchandise inventory 25,000
Cr Account payable 25,000
Dr Merchandise inventory 410
Cr Cash 410
May 12 Dr Account payable 1400
Cr Merchandise inventory 1400
May 20 Dr Account payable (25,000-1400) 23,600
Cash (23,600*97%) 22,892
Dr Merchandise inventory 708
(23,600*3%)
Preparation of Journal entry (Seller)
May 11 Dr Account receivable 25,000
Cr Sales revenue 25,000
Dr Cost of goods sold 16,750
Cr Merchandise inventory 16,750
May 12 Dr Sales return and allowance 1400
Cr Account receivable 1400
Dr Merchandise inventory 938
Cr Cost of goods sold 938
May 20 Dr Cash 22,892
[(25,000-14000)*97%]
Dr Sales discount 708
[(25,000-14000)*3%]
Cr Account receivable 23,600
Coronado Industries sells 50000 units for $13 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as variable expenses in the CVP income statement?
Answer:
Total variable cost= $200,000
Explanation:
Giving the following information:
Coronado Industries sells 50,000 units for $13 a unit. Fixed costs are $350,000 and net income is $100,000.
First, we need to calculate the total contribution margin:
Total contribution margin= net income + fixed costs
Total contribution margin= 100,000 + 350,000
Total contribution margin= $450,000
Now, we can calculate the total variable costs:
Total variable cost= Sales - total contribution margin
Total variable cost= 50,000*13 - 450,000
Total variable cost= 200,000
An Investment Adviser Representative (IAR) manages the assets of the ABC Corporation Profit Sharing Plan. The trustee of the plan contacts the IAR, explaining to the IAR that he wants a check drawn from the plan account to buy a building that ABC Corporation will occupy. The IAR should:
Answer:
refuse to issue the check because it is a breach of the IAR's fiduciary obligation
Explanation:
This check should not be issued because if it is issued it would be a breach of the investment advisor representative fiduciary obligation. His main responsibility is to offer advices that relates to investment because he is a financial planner. He has to act in the best interest of his client with loyalty and also in good faith.
Managers must be able to determine whether their workers are doing an effective and efficient job, with a minimum of errors and disruptions. They do so by using a performance appraisal, an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination. Managing effectively means getting results through top performance. That's what performance appraisals at all levels of the organization are for—including at the top, where managers benefit from review by their subordinates. In the 360-degree review, management gathers opinions from all around the employee, including those under, above, and on the same level, to get an accurate, comprehensive idea of the worker's abilities.
a. True
b. False
Answer:
a. True
Explanation:
This system of performance review is a 360-degree review or feedback process where a given employee receives inputs on her performance (or other criteria such as behaviors, competencies and results achieved) from different employees with varying working relationships and at different levels. The idea is to ensure that the employee's performance is not partial or biased. Using this system, the employee who may be a manager will have her performance reviewed by employees below, above, and on the same level with her.
Brazil has a population of about 210 million, with about 150 million over the age of 15. Of these, an estimated 25 percent, or 37.5 million people, are functionally illiterate. The typical literate individual reads only about two nonacademic books per year, which is less than half the number read by the typical literate U.S. or European resident. Answer the following questions solely from the perspective of new growth theory:
Which of the following best explains the implications of Brazil's literacy and reading rates for its growth prospects in light of the key tenets of new growth theory.
A. Since economic growth is driven by international trade in technology and capital, if Brazil opens its borders, its literacy and reading rates will improve as the country experiences economic growth.
B. Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
C. Since it has been demonstrated that technological advancement and not human capital is the key determinant of economic growth, Brazil's literacy and reading rates should not affect its potential economic growth rate.
D. Since technologically advanced physical capital is necessary for economic growth, Brazil's literacy and reading rates suggests its economic growth rate will be lower because there are not enough skilled workers to operate sophisticated machinery.
Answer:
B)Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
Explanation:
From the question, we are informed about Brazil having a population of about 210 million, with about 150 million over the age of 15. And Of these, an estimated 25 percent, or 37.5 million people, are functionally illiterate, and also compare how the typical literate individual reads only about two nonacademic books per year, which is less than half the number read by the typical literate U.S. or European resident.
From the view of New growth theory,the option that explains the implications of Brazil's literacy and reading rates for its growth prospects is that Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
New growth theory, which was attributed to Paul Romer, explains about Economic growth in the long run in related to internal factors of with knowledge as well as human capital. In this scenario Brazil should arrive to make sure the literacy rate among people is increased as possible
You are the manager of a monopoly that faces a demand curve described by P = 85 − 5Q. Your costs are C = 20 + 5Q. The profit-maximizing output for your firm is:
Given:
Price function : P = 85 − 5Q.
Cost function : C = 20 + 5Q.
To find:
The profit-maximizing output for your firm.
Explanation:
Total revenue = Price × Quantity
[tex]TR=P\times Q[/tex]
[tex]TR=(85-5Q)\times Q[/tex]
[tex]TR=85Q-5Q^2[/tex]
Differentiate with respect to quantity.
[tex]\dfrac{d(TR)}{dQ}=85(1)-5(2Q)[/tex]
[tex]MR=85-10Q[/tex]
Cost function is
[tex]C=20+5Q[/tex]
Differentiate with respect to quantity.
[tex]\dfrac{dC}{dQ}=(0)+5(1)[/tex]
[tex]MC=5[/tex]
The profit is maximum if [tex]MR=MC[/tex].
[tex]85-10Q=5[/tex]
[tex]85-5=10Q[/tex]
[tex]80=10Q[/tex]
Divide both sides by 10.
[tex]\dfrac{80}{10}=Q[/tex]
[tex]Q=8[/tex]
Therefore, the profit-maximizing output for the firm is 8 units.
The demand curve is the curve that shows the relationship of demand with its various aspects. The demand curve is the graphical presentation of the shifts that are caused by the aspects of the demand.
The given information are:
Price function : P = 85 − 5Q.
Cost function : C = 20 + 5Q.
Total revenue = Price × Quantity
[tex]TR=P\times Q[/tex]
[tex]TR=(85-5Q)\times Q[/tex]
[tex]TR= 85Q-5Q^{2}[/tex]
Differentiate with respect to quantity.
[tex]\frac{d(TR)}{dQ} =85(1)-5(2Q)\\MR=85-10Q[/tex]
Cost function is=[tex]C=20+5Q[/tex]
Differentiate with respect to quantity.
[tex]\frac{dC}{dQ}=(0)+5(1)\\MC=5[/tex]
The profit is maximum in the firm if: [tex]MR=MC[/tex]
[tex]85-10Q-5\\85-5=10Q\\80=10Q[/tex]
Divide both sides by 10.
[tex]\frac{80}{10}=Q\\Q=8[/tex]
Therefore, the profit-maximizing output for the firm is 8 units.
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