Answer:
$27.63 million
Explanation:
Total equity = Common stock + Retained earnings
Common stock = Total equity - Retained earnings
Common stock = (Total assets - Total liabilities) - Retained earnings
Common stock = ($165.097 million - $102.335 million) - $35.132 million
Common stock = $62.762 million - $35.132 million
Common stock = $27.63 million
The following data relate to Lebeaux Corporation for the year just ended: Sales revenue $ 750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative costs 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct?
A) Lebeaux's variable-costing income statement would show a gross margin of $270,000.
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000.
D) Lebeaux's absorption costing income statement would show a gross margin of $330,000.
E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.
Answer:
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
Explanation:
See below the Statements that are produced under Absorption and Variable Costing methods.
Absorption Costing
Sales revenue $750,000
Less Cost of goods sold :
Variable portion $370,000
Fixed portion $110,000 ($480,000)
Gross Profit $270,000
Variable Costing
Sales revenue $750,000
Less Variable Costs :
Variable portion - Cost of Sales $370,000
Variable selling and administrative costs $50,000 ($420,000)
Contribution $330,000
therefore,
The only correct statement is : Lebeaux's variable costing income statement would show a contribution margin of $330,000
The race to the bottom scenario of global environmental degradation is explained roughly like this: a. Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution. b. Companies seek the lowest market prices on products in order to gain market share, resulting in inferior goods and increased waste and pollution. c. Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits. d. Companies seek to influence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize profits.
Answer:
The answer is "Option c".
Explanation:
When there is racing to a bottom scenario, this should be stated that the multinationals looking for profit are shifting production from such countries with strict environmental regulations to minimize the order, thus generating revenue, that's why the profit-based corporations relocate their manufacturing from strong environmental regulations to low standard countries and thereby lower their costs and increase profits.
On June 30, 2009, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31, 2009 for Apricot would include:
Answer:
A debit to Management Services Expense for $1,250.
Explanation:
The adjusting entry for apricot would include that
There is a debit to the Management Services Expense for
= $5,000 ÷ 2 years × 6 months ÷ 12 months
= $1,250
Hence, the adjusting entry for apricot would include a debit to the Management Services Expense for $1,250
The same should be considered and relevant
Assume that per capita income is growing at different rates in the following countries: Nepal, 0.7 percent; Kenya, 1.3 percent; Singapore, 6.9 percent; Egypt, 3.8 percent. How long will it take for each country to double its income per person
Answer:
100 years
53.8 years
10.1 years
18.4 years
Explanation:
country to double given its growth rate
Number of year for GDP to double = 70 / growth rate of country
1. 70 / 0.7 = 100
2. 70 / 1.3 = 53.8
3. 70 / 6.9 = 10.1
4. 70 / 3.8 = 18.4
Q1. SISKO & Co. Ltd commences business and issues one million shares with a nominal value of Le3 each. The company allows its allottees to pay Le1.25 on allotment and the remainder at a later date. All the allottees chose to do this and all the shares are sold. What is JEMILEX & Co. Ltd's paid-up share capital? A. Le1.25 million B. Le3 million C. Le1.75 million D. Le500,000 Q2. Cash Balance Le15,000; Trade Receivables Le35,000; Inventory Le40,000; Trade Payables Le24,000 and Bank Overdraft is Le6,000. Current Ratio will be : (A) 3.75:1 (B) 3:1 (C) 1:3 (D) 1 : 3.75
Answer:
SISKO & Co. Ltd.
1. The paid-up share capital is:
A. Le1.25 million
2. Current Ratio will be:
(B) 3:1
Explanation:
a) Data and Calculations:
Issued share capital = 1,000,000 shares
Allotment = Le1.25 per share
Paid-up share capital = Le1.25 million (Le1.25 * 1,000,000)
Current Ratio:
Cash Balance Le15,000
Trade Receivables Le35,000
Inventory Le40,000
Total current assets Le90,000
Current liabilities:
Trade Payables Le24,000
Bank Overdraft Le6,000
Total current liabilities Le30,000
Current ratio = Current assets/Current liabilities
= Le90,000/Le30,000
= 3:1
3. Explain the success of the training program using Conditioning Theory and Social Cognitive Theory. For each theory: A. How do you explain why the training program was not effective? B. How could the program be improved by using some of the concepts from each theory.
Answer:
you just explain how smart it is.
it can add more tecnoligy
Explanation:
Consider the following transactions for
BigGuy Toys:
Apr. 7 BigGuy Toys purchased $198,800 worth of MegoBlock toys on account with credit terms of 2/10, n/60.
Apr. 13 BigGuy Toys returned $19,800 of the merchandise to MegoBlock due to damage during shipment.
Apr. 15 BigGuy Toys paid the amount due, less the return and discount.
Required:
a. Journalize the purchase transactions. Explanations are not required.
b. In the final analysis, how much did the inventory cost BigGuy Toys?
Answer and Explanation:
a. The journal entries are shown below:
On April 7
Merchandise inventory $198,800
To Account payable $198,800
(being the inventory purchase on account)
On April 13
Account payable $19,800
To Merchandise inventory $19,800
(Being returned inventory is recorded)
On April 15
Account payable ($198,800 - $19,800) $179,000
To Cash (98% of $179,000) $175,420
To Merchandise inventory $3,580
(being the amount paid is recorded)
b. The inventory cost should be $175,420
AG Inc. made a $25,000 sale on account with the following terms: 1/15, n/30. If the company uses the gross method to record sales made on credit, what is the journal entry to record the sale
Answer:
Debit : Accounts Receivable $25,000
Credit : Sales Revenue $25,000
Explanation:
The journal entry to record the sale would include a Debit to Asset Account - Accounts Receivable and Credit to Sales Revenue at the amount of sale including the cash discount.
Best Brands Appliance Mart is getting ready for its annual Labor Day sale. There are two Best Brands stores, one in midtown Manhattan and another in Amityville. Merchandise is stored in two warehouses, one in Brooklyn and one in Baldwin. From experience in past years, the owners know the big mover during the sale is tablets. The Manhattan store needs 500, while the Amityville store will require 400. Each warehouse has 600 tablets in stock. It costs $1 and $2 to ship a tablet from Brooklyn to Manhattan and to Amityville, and $2 and $4 to ship one from Baldwin to Manhattan and Amityville. What is the best shipping strategy for getting the tablets from the warehouses into the stores to minimize the shipping cost?
Answer:
Explanation:
From the given information:
Assuming we represent x to be the tablets sent from Brooklyn to Manhattan
Thus, (500 - x) to be the tablets sent from Baldwin to Manhattan
Also, suppose we represent y to be the tablets sent from Brooklyn to Amityville
It implies that (400 - x) to be the tablets sent from Baldwin to Amityville
∴
x ≥ 0 ; y ≥ 0
⇒ 500 - x ≥ 0 & 400 - y ≥ 0
The Shipping cost Z = 1(x) + 2(500-x) + 2(y) + 4(400-y)
Z = x + 1000 - 2x + 2y + 1600 - 4y
Z = x -2y + 2600
To minimize the shipping cost:
[tex]\left \{ 500-x \geq 0 \ \implies \ x\leq 500}} \atop {400-y \geq 0 \ \implies \ y\leq 400}} \right.[/tex]
Thus, by replacing the coordinate values (x,y) into Z, we have:
Point Coordinates(x,y) Value of Z (shipping cost)
0 (0,0) 0
A (0,400) 1800
B (500,400) 1300
C (500,0) 2100
Hence, the minimum cost is 1300.
x = 500 units and y = 400 units
In 2008, 1 Swiss franc cost .56 British pounds and in 2010 it cost .51 British pounds in 2010. How much would 1 British pound purchase in Swiss francs in 2008 and 2010
Answer:
1.78 Swiss franc
1.96 Swiss franc
Explanation:
Below is the calculation:
In the year 2008, 1 Swiss franc cost = 0.56 British pounds
In the year 2010, 1 Swiss franc cost = 0.51 British pounds
Now calculate the Swiss frac purchase by 1 bristish pound.
In the year 2008, 1 British pound will purchase = 1 / 0.56 = 1.78 Swiss franc
In the year 2010, 1 British pound will purchase = 1 / 0.51 = 1.96 Swiss franc
Four fundamental factors affect the cost of money: (1) the return that borrowers expect to earn on their investments, (2) the preference of savers to spend their income in the current period rather than delay their consumption until some future period, (3) the risks associated with the investment, and (4) expected inflation. Consider the following statements that address these factors, and indicate which you think are true.
Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth of goods and services.
Statement 2: For the average rational investor or saver, there is an indirect, or inverse, relationship between the amount of risk exhibited by a security and the risk premium that would be required by the investor or saver.
Statement 3: On average and everything else held constant, rational savers and investors prefer to invest $1,500 to acquire an asset that will pay annual cash flows of $300 per year rather than an otherwise identical asset that will pay $500 per year.
Statement 4: The actual relationship between the risk-free rate of return (r*) and the expected future inflation rate or inflation premium (IP) is actually multiplicative-that is, [(1 + rRF) x (1 + IP)]-1-but it is often simplified to reflect an additive relationship.
The true statements are:
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The true statements are:
c. 1 and 4
Explanation:
The actual interest rate paid to savers depends on
(1) the expected rate of return on invested capital
(2) time preferences for current consumption versus future consumption
(3) the riskiness of the loan
(4) the expected future inflation rate
We can conclude that if an investment is facing a higher risk and inflation rate, then the expected interest rate will be higher than for a low-risk, low inflation-facing investment.
In the interest formulas, a simple interest can be used in any of the single payment formulas as long as the 'n values correspond to the interest period?
A) True
B) False
Answer:
False
Explanation:
Apart from simple interest, compound interest can be used for single payments
the formula for compound interest is : future value - present value
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
The formula for simple interest : amount x time x interest rate
Assume that 1000 is to be received in 2 years at the interest rate of 10%
Simple interest = 1000 x 2 x 0.1 = 200
Compound interest
1000 x (1.1)^2 = 1210
1210 = 1000 = 210
Identify whether a debit or credit results in the indicated change for each of the following accounts.
a. To increase Land
b. To decrease Cash
c. To increase Fees Earned (Revenues)
d. To increase Office Expense
e. To decrease Unearned Revenue
f. To decrease Prepaid Rent
g. To increase Notes Payable
h. To decrease Accounts Receivable
i. To increase Common Stock
j. To increase Store Equipment
Answer:
a. To increase Land - Debit
b. To decrease Cash - Credit
c. To increase Fees Earned (Revenues) - Credit
d. To increase Office Expense - Debit
e. To decrease Unearned Revenue - Debit
f. To decrease Prepaid Rent - Credit
g. To increase Notes Payable - Credit
h. To decrease Accounts Receivable - Credit
i. To increase Common Stock - Credit
j. To increase Store Equipment - Debit
Explanation:
Debit gives details of spending, sum owed , amount to balance which is usually recorded to the left side of an account entry book while credit gives the details of income, amount earned or made on sale, spending cut and revenue and is usually placed to the right hand column of an account entry.
On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 years. The contractor concludes that it is appropriate to recognize revenue over time using the input method based on costs incurred (cost-to-cost method). At the inception date, the estimated cost of construction was $2.4 million. The following data relate to the actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
For this long-term construction contract, the contractor needs to calculate the estimated dollar values of the revenue and gross profit (loss) to be recognized each year.
Complete the contractor's long-term construction contract using the information above.
Revenue Gross Profit (loss)
Year 1
Year 2
Year 3
Answer:
Contractor's Long-term Construction Contract Table:
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000
Year 2 $1,386,667 $216,667
Year 3 $853,333 ($256,667)
Total $3,200,000 $200,000
Explanation:
a) Data and Calculations:
Contract price = $3.2 million
Estimated cost of construction = $2.4 million
Actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
Revenue $
Year 1 = $720,000/$2,400,000 * $3.2 million = $960,000
Year 2 = $1,170,000/$2,700,000 * $3.2 million = $1,386,667
Year 3 = $853,333
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000 ($960,000 - $720,000)
Year 2 $1,386,667 $216,667 ($1,386,667 - $1,170,000)
Year 3 $853,333 ($256,667) ($853,333 - $1,110,000)
Total $3,200,000 $200,000 ($3,200,000 - $3,000,000)
SOX requires the Chief Executive Officer (CEO) and which corporate officer to certify the accuracy of the financial statements?
Answer:
SOX requires the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) to certify the accuracy of the financial statements.
Explanation:
This requirement ensures the public accountability of the top chief executive officers of publicly-traded companies. The CEO is at the helm of affairs of the company, while the CFO has responsibility for the financial records, which produced the financial statements. This is the reason that the two top managers are required to sign off the financial statements, thus, vouching their accuracy.
Included on the board of directors of Microsoft are Dina Dublon, former chief financial officer of JP Morgan Chase , the president of Harvey Mudd college Maria M. Klawe, and the vice chairman of Bank of America Charles H. Noski. These three board members do not have a direct management role with Microsoft and are therefore referred to as
Answer:
Microsoft
These three board members do not have a direct management role with Microsoft and are therefore referred to as
Non-executive directors.
Explanation:
The non-executive directors of a company's board of directors are board members without management responsibilities. They are also referred to as independent or external directors since they are not involved in the daily running of the entity. They are different from executive directors in so many ways. Given their unique positions, they bring broader insight and perspective to the board of directors, helping the entity to set strategic directions. They also play independent roles in board sub-committees, especially remuneration, audit, risk, and performance monitoring.
hester Corp. ended the year carrying $18,711,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Chester Corp.
Answer:
$18,711,000
Explanation:
Based on the information given the amount of more revenue would it have brought to Chester Corp will be $18,711,000
company name ends with NPC
g What is the after-tax yield on a one-year corporate bond with a 7 percent yield if your marginal federal income tax rate is 40% 2.8% 4.2% 5% 5.3% 6.2%
Answer: 4.2%
Explanation:
Bonds are debt instruments which means that the interest paid on bonds is tax deductible. After the tax is deducted, the after tax yield shows the actual yield being paid on the bond given the tax rate.
The after tax yield on a bond is calculated by the formula:
= Before tax yield * ( 1 - Tax rate)
= 7% * ( 1 - 40%)
= 4.2%
A manufacturer produces two types of computer software, Word processing (W) and Spreadsheet (S), which is offered to two different retail outlets (#1 and #2). The following table shows the maximum price each retail outlet is willing to pay for each individual software product.
Product W Product S
Retail #1 $170 $105
Retail #2 $95 $135
What is the optimal pricing strategy that will maximize revenue for the manufacturer, given the maximum the retail outlets are willing to pay?
a. Bundle both products (W and S) and sell them at $275.
b. Price product W at $95 and Product S at $105.
c. Price product W at $170 and Product S at $170.
d. Price product W at $170 and Product S at $135.
e. Bundle both products (W and S) and sell them at $230.
Answer:
e. Bundle both products (W and S) and sell them at $230.
Explanation:
Calculation to determine the optimal pricing strategy that will maximize revenue for the manufacturer
Using this formula
Optimal pricing=Retail #2 Product W+ Retail #2 Product S
Let plug in the formula
Optimal pricing=$95+$135
Optimal pricing=$230
Therefore based on the above calculation the OPTIMAL PRICING STRATEGY that will MAXIMIZE REVENUE for the manufacturer, given the MAXIMUM the retail outlets are willing to pay will be to BUNDLE BOTH PRODUCTS (W and S) AND SELL THEM AT $230.
XYZ Company uses a weighted-average process costing system. All materials at XYZ are added at the end of the production process. Equivalent units for materials at XYZ would be equal to:
Answer:
Equivalent units for materials at XYZ would be equal to the addition of units in beginning work in process and the units started.
Explanation:
A weighted-average process costing system refers to a process costing system in which expenses are averaged out and applied evenly to both units transferred out and units in ending work in process.
An equivalent unit of production is a measurement of the amount of work done by a manufacturer on partially completed units of output at the end of a fiscal period. In general, fully completed units and partially completed units are expressed as fully completed units.
When a weighted-average process costing system is being used, the equivalent units is obtained as the addition of units in beginning work in process and the units started.
Therefore, equivalent units for materials at XYZ would be equal to the addition of units in beginning work in process and the units started.
Lemon Corporation purchased a truck at the beginning of 2017 for $109,200. The truck is estimated to have a salvage value of $4,200 and a useful life of 120,000 miles. It was driven 21,000 miles in 2017 and 29,000 miles in 2018. What is the depreciation expense for 2017
Answer:
the depreciation expense for 2017 is $18,375
Explanation:
The computation of the depreciation expense for 2017 is shown below:
= (Truck cost - salvage value) ÷ useful life in miles × driven miles in year 2017
= ($109,200 - $4,200) ÷ 120,000 miles × 21,000 miles
= $18,375
Hence, the depreciation expense for 2017 is $18,375
Therefore the above formula should be applied for the same
Periodic inventory by three methods The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown below:
Number
Date Transaction of Units Per Unit Total
Jan. 1 Inventory 7,500 $75.00 10
Purchase 85.00 22,500 11,250
28 Sale $562,500 1,912,500 1,687,500
562,500 150.00 30 Sale 3,750 150.00
Feb. 5 Sale 1,500 150.00 225,000
10 Purchase 54,000 87.50 4,725,000
16 Sale 27,000 160.00 4,320,000
28 Sale 25,500 160.00 4,080,000
Mar. 5 Purchase 45,000 89.50 4,027,500
14 Sale 30,000 160.00 4,800,000
25 Purchase 7,500 90.00 675,000
30 Sale 26,250 160.00 4,200,000
1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.
4. Compare the gross profit and the March 31 inventories, using the following column headings.
Answer:
1. We have:
Inventory on March 31 = $1,010,625
Cost of merchandise sold for the three-month period = $10,891,875
2. We have:
Inventory on March 31 = $881,250
Cost of merchandise sold for the three-month period = $11,021,250
3. We have:
Inventory on March 31 = $980,975.27
Cost of merchandise sold for the three-month period = $10,921,524.73
4. We have:
Details FIFO LIFO Weighted Average
$ $ $
Sales 19,875,000 19,875,000 19,875,000
Cost of Goods sold (10,891,875) (11,021,250) (10,921,525)
Gross Profit 8,983,125 8,853,750 8,953,475
Inventory, March 31 1,010,625 881,250 980,975
Explanation:
1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
Note: See part 1 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
From the part 1 of the attached excel file, we have:
Inventory on March 31 = $1,010,625
Cost of merchandise sold for the three-month period = $10,891,875
2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
Note: See part 2 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
From the part 2 of the attached excel file, we have:
Inventory on March 31 = $881,250
Cost of merchandise sold for the three-month period = $11,021,250
3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.
Note: See part 3 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system.
From the part 3 of the attached excel file, we have:
Inventory on March 31 = $980,975.27
Cost of merchandise sold for the three-month period = $10,921,524.73
4. Compare the gross profit and the March 31 inventories, using the following column headings.
Details FIFO LIFO Weighted Average
$ $ $
Sales 19,875,000 19,875,000 19,875,000
Cost of Goods sold (10,891,875) (11,021,250) (10,921,525)
Gross Profit 8,983,125 8,853,750 8,953,475
Inventory, March 31 1,010,625 881,250 980,975
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.
20Y3 20Y2 20Y1
Accounts receivable, end of year $725,000 $650,000 $600,000
Sales on account 5,637,500 4,687,500
a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume a 365-day year. 20Y3 20Y2 1.
b. The collection of accounts receivable has___. This can be seen in both the___in accounts receivable turnover and the____in the collection period.
Answer:
1. 20Y3 20Y2
A Sales on account $5,637,500 $4,687,500
B Beginning Accounts receivables $650,000 $600,000
C Ending accounts receivables $725,000 $650,000
Average accounts receivables $687,500 $625,000 [D=(B+C) / 2[
Accounts receivables Turnover 8.2 7.5 [E=A/D]
No of days in sales receivables 44.5 48.7 [F=365 / E]
2. The collection of account receivables has INCREASED. This can be seen in both the INCREASE in accounts receivables turnover and the DECREASE in collection period.
Karr, Inc., reported net income of $300,000 for 2011. Changes occurred in several balance sheet accounts as follows:
Equipment $25,000 Increase
Inventories $20,000 decrease
Accumulated depreciation 40,000 Increase
Accounts receivable 15,000 Increase
Note payable 30,000 increase
Accounts payable 5,000 decrease
Additional Information:
a. During 2011 Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
b. In December 2011 Karr purchased equipment costing $50,000, with $20,000 cash and a 12% note payable of $30,000.
c. Depreciation expense for the year was $52,000.
Required:
1. In Karr’s 2011 statement of cash flows, calculate net cash provided by operating activities.
2. In Karr’s 2011 statement of cash flows, calculate net cash used in investing activities.
Answer:Cash flow from operating activities = $347,000
Net cash used in Investing:= -$2,000
Explanation:
1.
The net cash provided by operating activities by Karr, Inc., reported in 2011
Account Titles and explanation Amount
Net income $300,000
Adjustments made
Add:
Depreciation expense $52,000
Decrease in inventory $20,000
Less:
Increase in account receivable -$15,000
Decrease in account payable -$5,000
Gain on sale of equipment -$5,000
Cash flow from operating activities $347,000
2. Net cash used in Investing:
Sales of equipment =cost -depreciation + gain of sale
Sales of equipment 18,000(($25,000-$12,000+$5,000)
Purchase of Equipment 20,000
Net cash used in Investing:= -$2,000
You are a delivery manager introducing a new product from your unit to the market. What steps should you take to mitigate any IP risks in your product?
Answer:
Explanation:
There are various steps that you should take to make sure that your product does not violate any IPs. First, you should make sure that those involved with the product sign an NDA. This document prevents these individuals from talking about the product with others, which prevents it's details from leaking and allowing competitors to beat you to market by releasing their own version of your product first. The other step that you should take would be to patent the design and trademark the name of the product. Doing so will make sure that the product is unique and that it does not interfere with already existant IP's, as well as preventing others from infringing on your product.
Suppose a newly elected president cuts taxes by 20 percent: i. Assuming that the money supply is held constant, what are the new equilibrium interest rate and income
Answer: hello your question has some missing information below is the missing information
An economy is initially described by the following equations:
C = 80 + 0.8(Y – T)
I = 120 –5r
M/P = Y – 25r
G = 100
T = 100
M = 2,700
P = 3
answer :
equilibrium interest rate ( r ) = 5.6%
equilibrium level of income = 1040
Explanation:
a) New equilibrium interest rate
T = 100 - 20/100 ( 100 ) = 80
Y = C + I + G
= 80 + 0.8( y - 80 ) + 120 - 5r + 100
= 236 + 0.8y - 5r
y = 1180 - 25r ------ ( 1 )
M/P = Y - 25r = 2700 / 3
y = 900 + 25r ------- ( 2 )
equate; equation ( 1 ) and equation ( 2 )
1180 - 25r = 900 + 25r
∴ r = 5.6%
b) Equilibrium level of Income
To determine Equilibrium level of income we will use equation2
Y = 900 + 25(5.6) = 1040
What is the expected constant growth rate of dividends for a stock currently priced at Php 50, that is expected to pay a dividend of Php 5 next year, and has a required return of 20%?
Answer: 10%
Explanation:
Using the Gordon Growth Model, the price of a stock can be calculated as follows:
Price = Next dividend / (Required return - growth rate)
Notice that we are provided with all the figures in the formula above except the growth rate so we can calculate the growth rate with these figures:
50 = 5 / (20% - growth rate)
50 * (20% - growth rate) = 5
20% - growth rate = 5 / 50
-growth rate = 10% - 20%
-Growth rate / -1 = -10% / -1
Growth rate = 10%
Assume the supply function of ice cream is written as: Qs = 100 + 20P - 5Pm, where Qs is the quantity supplied, P is the price of ice cream, and Pm is the price of milk ($/gallon). When the milk price is $10, the quantity supplied is 100. Suppose milk price decreased by 20% due to the policy change, how will the Qs change?
Answer:
The Qs will increase by 460 units which also represents a 460% increase in Qs.
Explanation:
Step 1: Calculation of price of ice cream, P, when price is $10 and the quantity supplied is 100.
Given:
Qs = 100 + 20P - 5Pm ……………….. (1)
Where:
Qs = 100
P = ?
Pm = $10, or 10
Substituting the values into equation (1) and solve for P, we have:
100 = 100 + 20P - (5 * 10)
100 = 100 + 20P - 50
100 - 100 + 50 = 20P
50 = 20P
P = 50 / 2 = 2.50
Step 2: Calculation of new Qs, Qs1, when milk price, Pm, decreased by 20%.
This implies that we have:
Qs1 = ?
P = 2.50
Pm = $10 * (100% - Percentage decrease in Pm) = $10 * (100% - 20%) = $8, or 8
Substituting the values into equation (1) in Step 1 above and Qs1 for Qs to calculate Qs1, we have:
Qs1 = 100 + (20 * 2.50) - (5 * 8)
Qs1 = 100 + 50 - 40
Qs1 = 110
Step 3: Calculation of change in the Qs when milk price, Pm, decreased by 20%.
Change in Qs expressed in unit = Qs1 - Qs = 110 - 100 = 10
Change in Qs expressed in percentage = ((Qs1 - Qs) / Qs) * 100 = ((110 - 100) / 100) * 100 = 10%
Therefore, the Qs will increase by 10 units which also represents a 10% increase in Qs.
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Answer:
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