To record the transactions on Sheridan Company's books, we need to prepare the journal entries for each transaction.
February 5: Purchase of merchandise from NW Wholesale Company:
Debit: Inventory - Merchandise Purchases ($12,000)
Credit: Accounts Payable ($12,000)
February 6: Payment of freight costs:
Debit: Freight-In ($160)
Credit: Cash ($160)
February 8: Return of merchandise to NW Wholesale Company:
Debit: Accounts Payable ($1,400)
Credit: Inventory - Merchandise Purchases ($1,400)
February 11: Payment of the balance due to NW Wholesale Company:
Debit: Accounts Payable ($10,600) [($12,000 - $1,400)]
Credit: Cash ($10,600)
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swann company sold a delivery truck on april 1, 2016. swann had acquired the truck on january 1, 2012, for $40,500. at acquisition, swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. at december 31, 2015, the truck had a book value of $10,500. required: 1. prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $9,875 b. $7,275 2. how should the gain or loss on disposal be reported on the income statement? 3. assume that swann uses ifrs and sold the truck for $9,875. in addition, swann had previously recorded a revaluation surplus related to this machine of $5,000. what journal entries are required to record the sale?
1. Journal entries for the sale of the truck: a. If sold for $9,875, Debit Cash $9,875, Accumulated Depreciation $30,000, Loss on Disposal $500, Credit Truck $40,500 b. If sold for $7,275, Debit Cash $7,275, Accumulated Depreciation $33,225, Loss on Disposal $2,000, Credit Truck $40,500. 2. The gain or loss on disposal should be reported separately on the income statement. 3. Under IFRS, if the truck is sold for $9,875 with a revaluation surplus of $5,000, Debit Cash $9,875, Accumulated Depreciation $30,000, Revaluation Surplus $5,000, Debit Loss on Disposal $3,375, Credit Truck $40,500.
Journal entries to record the sale of the truck:
a. If the truck is sold for $9,875:
Debit: Cash $9,875
Debit: Accumulated Depreciation $30,000
Debit: Loss on Disposal $500
Credit: Truck $40,500
b. If the truck is sold for $7,275:
Debit: Cash $7,275
Debit: Accumulated Depreciation $33,225
Debit: Loss on Disposal $2,000
Credit: Truck $40,500
The gain or loss on disposal should be reported separately on the income statement. In this case, a loss on disposal would be reported.
Journal entries under IFRS to record the sale of the truck:
Debit: Cash $9,875
Debit: Accumulated Depreciation $30,000
Debit: Revaluation Surplus $5,000
Debit: Loss on Disposal $3,375
Credit: Truck $40,500
Note: Under IFRS, any revaluation surplus related to the asset would be reversed and recognized as part of the loss on disposal.
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45 of 48 What is the information that a Statement of Work (SOW) provides as an input in the initiate phase of the project? The Statement of Work (SOW) itemizes the key deliverables of the project. The
The Statement of Work (SOW) provides information on the key deliverables of the project as an input in the initiate phase.
It itemizes what work needs to be done and sets the framework for the entire project. The SOW outlines the objectives of the project and the scope of work that needs to be completed to achieve those objectives. It also provides an overview of the project goals, timelines, budget, and resource requirements. The SOW acts as a guide that helps the project team understand what they need to do to achieve the project objectives.
It outlines the roles and responsibilities of all stakeholders and sets the expectations for everyone involved in the project. The SOW is critical in the initiate phase of the project because it sets the foundation for the project and establishes a clear understanding of the project requirements, which is essential for the project's success.
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A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has ____. A. decreased from $1,000 to S500. B. decreased from $.2000 to $1,000 ; C. increased from $1,000 to $2,000. D. increased from $500 to $2,000
A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has Increased from $1,000 to $2,000. The correct option is C.
The bond has a $100 annual interest rate. The interest rate was initially 10% it is currently 5%. We must compare the bond prices at the two different interest rates in order to ascertain the bond's price change.
A bond's price and the current interest rate are inversely correlated. Existing bond prices typically rise when interest rates decline. Bond prices on the other hand usually fall as interest rates rise.
We can assume that the price of the bond would generally rise given that the interest rate has dropped from 10% to 5%.
The falling interest rate would cause the bond's price to increase, raising the present value of the bond's future cash flows. The correct option is C.
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1)a) Describe the theoretical justification for using carbon
trading to address negative environmental externalities. (25
points)
b. What can we learn about the success of emissions trading as
an inst
The theoretical justification for using carbon trading to address negative environmental externalities is based on the Coase theorem.
a) This theorem states that in the presence of well-defined property rights and low transaction costs, bargaining between affected parties can result in an efficient allocation of resources that will maximize the benefits of those affected parties. This is the case with carbon emissions, as greenhouse gases contribute to climate change and other negative environmental externalities. Carbon trading schemes allow firms to purchase emissions permits to offset their own emissions or sell them to other firms that need them. This allows for a market-based approach to reducing carbon emissions, which can result in a more efficient allocation of resources.
b. The success of emissions trading as an instrument to address negative environmental externalities depends on a number of factors. One of the key factors is the stringency of the emissions cap. If the cap is set too high, there will be little incentive for firms to reduce their emissions, which will undermine the effectiveness of the scheme. Additionally, the success of emissions trading depends on the transparency and accuracy of emissions reporting, as well as the integrity of the regulatory framework that oversees the scheme. Finally, the success of emissions trading also depends on the availability of alternative technologies and practices that can help firms reduce their emissions at a reasonable cost. If these conditions are met, emissions trading can be an effective instrument to address negative environmental externalities.
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Betta Bakery
Betta Bakery producers fresh Biscuits
The employees lack good customer
service skills. BB lost most of their
Customers to Quality Bakery.BB had
to replace some
stolen
equipment due
Crime rate in the
orea
its
Quote three challenges for BB from the scenario above
Answer:
Poor customer service.
Betta Bakery has employees that lack good customer service skills. People generally do not like to be helped by people who cannot relate with them appropriately in the service industry and will generally avoid places that have such people. This will therefore lead to a loss of sales for Betta.
Competition from Quality Bakery.
Betta Bakery is facing stiff competition from a rival bakery known as Quality bakery and with the problems they are facing internally such as poor customer service, Quality bakery is able to lure customers away from Betta thus reducing their sales even further.
Stolen Equipment.
Betta bakery is having to spend money on the replacement of their equipment after some were stolen on account of the high crime rate in the area. These replacement costs reduce Betta bakery's profitability.
fast please
Explain what's fiscal competitiveness and which are the Smith's idiom referring to the tax system?
Fiscal competitiveness refers to the capacity of a country to attract foreign investment, create jobs, and enhance economic growth by implementing sound fiscal policies. Smith's idiom, on the other hand, refers to the ability of a country to have a tax system that is easy to understand, simple to comply with, and does not hinder economic development in any way
Fiscal competitiveness: Fiscal competitiveness is the capacity of a country to attract foreign investment, create jobs, and enhance economic growth by implementing sound fiscal policies. It refers to the ability of a country to maintain macroeconomic stability, control public spending, and manage its debt.
A fiscally competitive country is one that provides a favorable environment for businesses to operate in and attracts foreign investment. It is a critical factor in economic development as it helps to improve the standard of living of citizens.
Smith's idiom: Smith's idiom is an expression that refers to the ability of a country to have a tax system that is easy to understand, simple to comply with, and does not hinder economic development in any way. It was named after Adam Smith, a Scottish economist who is widely regarded as the father of modern economics.
According to Smith, a good tax system should be based on the principle, which means that the burden of taxation should be distributed fairly among citizens. Additionally, a good tax system should be simple and transparent, and it should not create any disincentives for people to work and invest.
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You borrowed $26614 six months ago at 10.7% EAR to finance the purchase of $72455 of stock. Assuming your maintenance margin requirement is 10% and that interest is computed on the loan daily (but paid only when the position closes), how much can the stock price decline (%) from your purchase price before triggering a margin call?
The stock price can decline up to 59.6% from the purchase price before triggering a margin call.
Borrowed Amount
(P): $26614
Interest Rate (EAR): 10.7%
Investment Amount (S): $72455
Maintenance Margin: 10%
We are to calculate the percentage decline in the stock price from the purchase price before a margin call is triggered.
Here, we will use the formula of the maintenance margin to calculate the percentage decline in the stock price that can be tolerated before triggering a margin call.
Maintenance Margin = (Borrowed Amount × (1 - Maintenance Margin)) / Investment Amount0.10
= ($26614 × (1 - 0.10)) / $72455$7245.50
= $2661.4
This is the minimum equity that must be maintained.
So, the stock price can decline up to a percentage where the difference between the value of the stock held (S) and the maintenance margin ($2661.4) is equal to the borrowed amount (P).
S - $2661.4 = $26614S = $29275.4
So, the percentage decline in the stock price can be calculated as:
Percentage decline = (Purchase price - Maximum tolerable loss) / Purchase price×100%
= ($72455 - $29275.4) / $72455×100%≈59.6%
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Discuss the Two Sector Circular Flow Model. Write your assumptions at the beginning of the answer. (10 Marks) ii. Define Money and briefly discuss the three (03) functions of money. (03 Marks) iii. Monetary Policy is being used by the government to control its money supply to achieve price stability. Explain how the monetary policy instruments are used under expansionary and contractionary monetary policies. (12 Marks) (Total 25 Marks)
The Two Sector Circular Flow Model illustrates the flow of resources and income between households and businesses. Money can be defined as a widely accepted medium of exchange that facilitates transactions and serves as a store of value. The three functions of money are Medium of Exchange, Store of Value, Unit of Account. Monetary policy is a macroeconomic tool used by the government and central banks to control the money supply and interest rates to achieve specific economic objectives, such as price stability.
Assumptions for the Two Sector Circular Flow Model:
1. The economy is simplified into two sectors: households and businesses.
2. Households are the sole owners of resources and supply them to businesses.
3. Businesses produce goods and services that are purchased by households.
4. There is no government intervention or foreign trade considered in this model.
i. Two Sector Circular Flow Model:
The Two Sector Circular Flow Model illustrates the flow of resources and income between households and businesses. It represents the basic economic interactions in a simplified economy without government or foreign trade.
In this model, households provide factors of production, such as labor, land, and capital, to businesses. In return, businesses pay wages, rent, and profits to households as income. Households use this income to purchase goods and services produced by businesses, thus completing the circular flow of income.
The model demonstrates the interdependence between households and businesses, as households supply resources to businesses, and businesses provide income and goods/services to households. It highlights how production and consumption are interconnected in an economy.
ii. Money and its Functions:
Money can be defined as a widely accepted medium of exchange that facilitates transactions and serves as a store of value. It is a commonly recognized and agreed-upon form of currency in an economy.
The three functions of money are as follows:
1. Medium of Exchange: Money serves as a medium through which goods and services are exchanged. It eliminates the need for barter, where goods are directly traded for other goods, by providing a universally accepted medium for transactions.
2. Store of Value: Money acts as a store of value by preserving purchasing power over time. It allows individuals to hold wealth in a liquid and readily exchangeable form. Money can be saved and used for future purchases or investments.
3. Unit of Account: Money provides a standardized unit of measurement for valuing goods, services, assets, and debts. It enables economic actors to compare and quantify the value of different goods and services, facilitating price determination and economic calculations.
iii. Monetary policy is a macroeconomic tool used by the government and central banks to control the money supply and interest rates to achieve specific economic objectives, such as price stability.
Expansionary Monetary Policy:
- Aim: To stimulate economic growth and increase aggregate demand.
- Instruments:
1. Lowering Reserve Requirements: The central bank reduces the percentage of deposits banks are required to hold as reserves, thereby increasing their lending capacity.
2. Open Market Operations: The central bank purchases government securities, injecting money into the economy and increasing liquidity.
3. Lowering Discount Rate: The central bank reduces the interest rate at which it lends to commercial banks, encouraging borrowing and investment.
Contractionary Monetary Policy:
- Aim: To control inflation and reduce aggregate demand.
- Instruments:
1. Increasing Reserve Requirements: The central bank raises the percentage of deposits banks must hold as reserves, limiting their lending capacity.
2. Open Market Operations: The central bank sells government securities, reducing the money supply and decreasing liquidity.
3. Increasing Discount Rate: The central bank raises the interest rate at which it lends to commercial banks, discouraging borrowing and investment.
By adjusting these monetary policy instruments, the central bank can influence the money supply, interest rates, and overall economic activity, aiming to achieve price stability and macroeconomic stability.
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Context Imagine you are an economic consultant engaged by the Australian Prime Minister to advise him and the Cabinet in a 15-minute presentation on the following. "The newly elected Prime Minister, Anthony Albanese, proposed the following aged care package in his reply as Leader of the Opposition to the 2022-23 Federal Budget: Every aged care facility is required to have a registered, qualified nurse on site, 24 hours a day, 7 days a week. Every Australian living in aged care gets at least 215 minutes of care per day. Support for the aged care workers' pay case in the Fair Work Commission, and a commitment to fund the outcome. (Note: The previous Coalition government declined to support aged care workers' case of a 25% pay rise referred to by the Labor Party.) Better food for aged care residents Accountability: more powers for the Aged Care Safety Commissioner and a requirement for aged care providers to report publicly what they are spending money on. Instructions Your presentation should cover the following aspects: a) The impact of Labor's proposed aged care package on the demand of aged care services: (i) changes in demand; (ii) changes in quantities demanded, in the short-run, and in the long run, respectively. b) The impact of Labor's proposed aged care package on the supply of aged care services: (i) changes in supply; and (ii) changes in quantities supplied, in the short-run and in the long-run, respectively. c) The impact of the proposed aged care reform on employment in the aged care sector and flow-on effects on other sectors (be specific on these sectors) based on your analysis in a) and b). d) The "winners" and the "losers" in the aged care reform as recommended by the Royal Commission, from the perspective of business activities, in view of your analysis in a), b) and c). Specify ALL your assumptions and their limitations where appropriate. e)
As an economic consultant engaged by the Australian Prime Minister to advise him and the Cabinet on the proposed aged care package by the newly elected Prime Minister, Anthony Albanese, the following aspects should be covered in the presentation:
1. Impact on the demand for aged care services:
In the short run, the implementation of the package would increase the demand for aged care services due to the increase in the supply of services. An increase in the number of registered, qualified nurses on-site would result in a reduction in cases of elder abuse, infections and disease. In the long run, the demand for aged care services would decrease because of the increase in the number of aged people who would be able to continue living at home with the help of these services. The elderly would feel more secure with their well-being taken care of by nurses.
2. Impact on the supply of aged care services:
The package would result in an increase in the supply of aged care services in the short and long term. There would be a greater supply of aged care workers as a result of the commitment to fund the outcome of the pay case of the aged care workers, which was not supported by the previous Coalition government. In addition, better food would be provided to the aged care residents. Accountability would be increased as a result of the requirement for aged care providers to report publicly what they are spending their money on.
3. Impact on employment in the aged care sector and flow-on effects on other sectors:
There would be an increase in the demand for aged care workers as a result of the increased supply of aged care services. This would have flow-on effects on other sectors such as transport, food, and retail sectors. More jobs would be created in the transport sector as workers would be needed to transport the elderly to and from aged care facilities. In the food sector, there would be an increase in the demand for better quality food that would be provided to the aged care residents. Retail sectors would benefit from the increased demand for aged care supplies.
4. Winners and Losers in the aged care reform:
From the perspective of business activities, the winners in the aged care reform would be the aged care providers. They would benefit from increased demand for aged care services and increased funding. They would also be able to report publicly what they are spending their money on. The losers in the aged care reform would be the aged care workers who would have a negative impact on their pay and job opportunities as a result of the increased supply of aged care services. Also, the increase in the supply of aged care services might lead to the closure of some aged care facilities which would result in job losses.
Assumptions:
1. The proposed aged care package would be implemented as outlined.
2. The government would fund the outcome of the pay case of aged care workers.
3. There would be an increase in the number of aged care workers to meet the increased demand for aged care services.
4. Aged care providers would report publicly what they are spending their money on.
Limitations:
1. It is difficult to estimate the exact number of new jobs that would be created in the transport, food, and retail sectors.
2. The government may not fund the outcome of the pay case of aged care workers, which could have a negative impact on the supply of aged care services.
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how to plan remaining ty sales's months by using ly monthly sales builds
To plan based on sales forecasting and planning the remaining monthly sales based on last year's monthly sales, analyze trends, adjust for known factors, calculate average growth/decline, and apply the rate to project sales for the remaining months while considering specific factors.
To plan remaining monthly sales based on last year's (LY) monthly sales data, you can follow these steps:
Gather LY monthly sales data: Collect the monthly sales figures for each month of the previous year. This data will serve as a reference for forecasting the remaining months.Analyze LY monthly sales trends: Examine the patterns and trends in the LY monthly sales data. Look for any seasonality or consistent fluctuations in sales from month to month.Adjust for any known factors: Consider any factors that may affect sales in the current year but were not present in the previous year. For example, changes in market conditions, customer behavior, marketing campaigns, or external events. Make any necessary adjustments to the LY monthly sales data based on these factors.Calculate average monthly growth or decline: Determine the average monthly growth or decline rate based on the LY monthly sales data. This can be done by calculating the percentage change from month to month or by using other statistical methods.Apply the growth or decline rate to the corresponding months: Use the average monthly growth or decline rate to project the remaining months of the current year. Apply this rate to the corresponding months of LY sales data to estimate the sales for the remaining months.Consider any specific factors for each month: Take into account any unique factors or events that may impact sales in specific months. Adjust the projected sales figures accordingly based on these considerations.Monitor and update the plan: Continuously monitor the actual sales performance throughout the year and compare it with the projected figures. Adjust the sales plan as needed based on the latest data and any changes in market conditions or business circumstances.Learn more about sales forecasting and planning at
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Legend Service Center just purchased an automobile hoist for $33,900. The hoist has an 8-year life and an estimated salvage value of $3,000. Installation costs and freight charges were $4,200 and $900, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $74 installed. The cost of a muffler is $35, and the labor cost to install a muffler is: __________
Legend Service Center just purchased an automobile hoist for $33,900. The hoist has an 8-year life and an estimated salvage value of $3,000. Installation costs and freight charges were $4,200 and $900, respectively. Legend uses straight-line depreciation.
The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week.
Each muffler sells for $74 installed. The cost of a muffler is $35, and the labor cost to install a muffler is: To find: Labor cost to install a mufflerSolution:
Cost of new hoist = $33,900Installation cost of new hoist = $4,200Freight charge for new hoist = $900Total cost of new hoist = Cost of new hoist + Installation cost of new hoist + Freight charge for new hoist= $33,900 + $4,200 + $900= $39,000Salvage value of new hoist after 8 years = $3,000 Depreciable cost of new hoist = Total cost of new hoist - Salvage value of new hoist after 8 years= $39,000 - $3,000= $36,000 Depreciation cost of new hoist = Depreciable cost of new hoist / Life of new hoist= $36,000 / 8= $4,500/year
Now, Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. The additional revenue generated per week will be: Number of mufflers that can be replaced per week = 5Additional revenue generated per week = Number of mufflers that can be replaced per week × Revenue per muffler= 5 × $74= $370Cost of each muffler = $35
Therefore, the labor cost to install a muffler = Revenue per muffler - Cost of a muffler= $74 - $35= $39. The answer is: $39.
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Choose one of the following theories of migration and intercultural adaptation: the U-curve model; the W-curve model; migrant-host modes of relationship; migrant network approaches; or Young Yun Kim's integrative theory of cultural adaptation. Then, explain how examples from The Economics of Happiness can be used to demonstrate three concepts that are specific to the theory you chose.
Choose one of the following sets of concepts from Stuart Hall: 1) dominant readings, negotiated readings, and oppositional readings; 2) meaning structures 1, meaning structures 2, and positionality. Then, explain how examples from The Economics of Happiness can be used to demonstrate the three concepts you chose.
Choose one of the following topic areas: Robbins and Dowty's characterization of the working class; the commodification of culture; or the culture of capitalism. Then, explain how examples from The Economics of Happiness can be used to demonstrate three concepts that are specific to the topic area you chose.
I will choose the topic area of the commodification of culture.
Example 1: Cultural Appropriation
The Economics of Happiness provides examples that demonstrate the concept of cultural appropriation within the commodification of culture. The documentary explores how cultural elements, such as traditional clothing or spiritual practices, are often taken out of their original cultural context and used for commercial gain. It presents instances where cultural symbols and traditions are misappropriated, resulting in the exploitation of marginalized communities and the dilution of cultural meaning. The film raises awareness about the need for cultural sensitivity and respect in the face of commodification.
Example 2: Tourism and Cultural Commodity
The film also examines the impact of tourism on the commodification of culture. It highlights how tourist destinations sometimes transform cultural practices and traditions into marketable commodities. The Economics of Happiness showcases instances where local communities modify their cultural expressions to cater to tourist expectations, leading to the creation of inauthentic representations of culture. This example demonstrates how the tourism industry can commodify culture for economic gain, raising questions about the preservation of cultural authenticity and the ethical considerations of turning culture into a commodity.
Example 3: Global Brands and Cultural Symbols
The Economics of Happiness addresses the influence of global brands on the commodification of culture. It showcases how multinational corporations appropriate cultural symbols or traditions to market their products. This process can diminish the cultural significance of these symbols and reduce them to mere commodities. The film raises concerns about the power dynamics between global brands and local cultures, as well as the potential consequences for cultural diversity and identity.
These examples from The Economics of Happiness illustrate the concepts of cultural appropriation, tourism's impact on cultural commodification, and the influence of global brands on cultural symbols. They provide insights into the complex dynamics of the commodification of culture and its implications for society.
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• Distinguishing between fact and opinion and point of view Drawing valid inferences and conclusions .
Assessing the credibility or objectivity of the writer
1. Many people want you to see the cause-and-effect relationships that they believe exist, and they often use questionable or outright fallacious reasoning to support their point of view. Consider the following examples:
a) Politicians assure you that a vote for them will result in "a chicken in every pot and a car in every garage".
b) Advertisers tell you that using their detergent will leave your wash "cleaner than clean, whiter than white."
c) Doctors tell you that eating a balanced diet will result in better health.
d) Educators tell you that a college degree is worth an average of $830,000 in additional income over an individual's life.
e) Scientists inform you that nuclear energy will result a better life for all of us.
Distinguishing between fact and opinion is crucial for evaluating the credibility of statements and making informed judgments. Let's examine the examples you provided:
a) The statement made by politicians is an example of a subjective claim that cannot be objectively proven. It appeals to the emotions and aspirations of the voters rather than presenting concrete evidence.
b) The statement made by advertisers falls into the realm of hyperbole or exaggeration, commonly used in marketing. It is not a verifiable fact but a persuasive technique aimed at influencing consumer behavior.
c) The statement made by doctors is based on scientific evidence and can be considered a factual claim. Numerous studies support the link between a balanced diet and better health outcomes.
d) The statement made by educators is a statistical claim based on average earnings data. While it represents a general trend, individual outcomes may vary significantly.
e) The statement made by scientists is a prediction or projection about the potential benefits of nuclear energy. It is based on research and scientific knowledge, but it cannot be stated as an absolute fact until it is realized and observed.
In assessing the credibility or objectivity of the writers in these examples, it is important to critically evaluate the evidence, consider alternative perspectives, and recognize the presence of persuasive techniques or potential biases. By doing so, one can make more informed inferences and conclusions about the statements presented.
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There are many markets in which firms compete in prices but still
manage to set prices above their marginal costs of production and obtain high profits.
This contrasts with the prediction of the basic oligopoly model of Bertrand price
competition that when firms have constant and identical marginal cost of production,
they will set their prices equal to marginal cost and obtain zero profits. Specify three
implicit assumptions of this model that are essential to the result that firms will obtain
zero profits in equilibrium. Explain, for each assumption, how relaxing it may lead
firms to charge prices above marginal cost and obtain positive profits in equilibrium.
(b) [25 marks] Is higher industry concentration associated with higher industry
profitability? Why or why not? Explain your answer with reference to economic
theory and any relevant empirical evidence.
a) three implicit assumptions Homogenous product, Rational consumers, Symmetric firms b) In summary, industry concentration is correlated with higher industry profitability, but industry characteristics and other variables influence the relationship.
(a)Bertrand's model of price competition proposes that when firms have continuous and equal marginal production costs, they will set prices equal to marginal cost and make no profits. This theory, however, fails to explain the instances where corporations set prices above their marginal cost of production and still achieve high profits.
There are three implicit assumptions of this model that are necessary for the result that firms will earn zero profits in equilibrium.
1) Homogenous product: When a product is not easily distinguishable from its rivals, the market becomes more competitive. If, on the other hand, a company's goods are unique and the only one of their kind, the market's competitiveness decreases. This allows businesses to charge prices above marginal costs while still earning profits.
2) Rational consumers: In a market where consumers are rational and always make informed choices, prices may not be set above the marginal cost of production. However, in markets where consumers lack information or have bounded rationality, firms may charge prices above the marginal cost of production while still earning profits.
3) Symmetric firms: This means that all firms in the market have identical production costs and capabilities. If there is an asymmetry between the firms in the market, with some companies having a comparative advantage over others, the competitive nature of the market is jeopardized and companies may earn profits even if prices are set above marginal costs.
(b)In general, a higher degree of industry concentration is linked with higher industry profitability. However, the degree of concentration is determined by the industry's characteristics, and other variables also influence profitability.In general, there are two main theories that explain the link between industry concentration and profitability. The first is the structure-conduct-performance (SCP) paradigm, which assumes that market structure is the primary determinant of market conduct and, as a result, market outcomes. As a result, higher concentration leads to higher profitability.The second theory, the resource-based view, argues that competitive advantage stems from a company's internal capabilities and resources. This view emphasizes that higher concentration allows firms to accumulate specialized resources and leverage economies of scale and scope, resulting in greater profitability.Industry characteristics, however, play a vital role in determining whether higher concentration results in greater profitability. The market might not be able to sustain more than one firm in a monopoly, leading to higher industry concentration, high profits, and poor outcomes for society. In contrast, in some instances, a competitive market with low concentration can lead to greater profits and positive outcomes for society.
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Suppose that each firm in a perfectly competitive market has the following cost function: c(y) = 176 + 11y2 What is the long-run market price? O A. 22 OB. 44 O C. 46 O D. 50 OE. 88
The long - run market price, given that this is a perfectly competitive market would be E. 88.
How to find the long - run market price ?We are given the cost function as :
c ( y ) = 176 + 11 y ²
Differentiating the function gives:
d ac /dy = 11 - 176/y² = 0
y = 4 units
The long run equilibrium price is therefore:
Price =174 / 4 + 11 x 4
= 43. 5 + 44
= 87. 5
= $ 88
In conclusion, the long run market price can be found to be rounded up to $ 88.
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Absolute Advantage Intra-Industry Trade Between Sim- ilar Economies and Reducing the Barriers to International Trade Due Sunday by 11:59pm Points 100 Submitting an external tool Consider the example of trade between the United States and Thailand described in the tables below. Country # of workers needed to produce 1,000 units- Socks # of workers needed to produce 1,000 units- Cell Phones United 5 workers 1 worker States Thailand 7 workers 4 workers Total Production Before Trade Current Sock Current Cell Phone Country Production Production United 14,000 70,000 States Thailand 10,000 17,500 Total 24,000 87,500 Suppose that each country currently has 140 workers and each decides to transfer some amount of labor toward its area of comparative advantage. The United States transfers 15 workers away from socks toward producing cell phones. Thailand transfers 28 workers away from cell phones toward producing socks. What will be the new total output of socks for both countries combined? Provide your answer below:
After calculating Absolute advantage, the Total production of socks is 28,500. So the new total output of socks for both countries combined is 28,500.
Absolute advantage refers to the ability of a nation, individual, or firm to produce goods and services at a lower cost than another producer. On the other hand, intra-industry trade refers to the import and export of goods within a specific industry.
The example of trade between the United States and Thailand described in the tables is a perfect example of the application of absolute advantage and intra-industry trade. In the scenario, the United States has an absolute advantage in the production of cell phones while Thailand has an absolute advantage in the production of socks.
Therefore, there would be an intra-industry trade between the two countries.
New total output of socks for both countries combined
The United States transfers 15 workers from socks to cell phones; therefore, it has 140 - 15 = 125 workers remaining for the production of socks.
Thailand transfers 28 workers from cell phones to socks; therefore, it has 140 - 28 = 112 workers remaining for the production of socks.
After the transfer, the new total output of socks for both countries combined would be:
United States: 125 workers produce 12,500 units of socks.
Thailand: 112 workers produce 16,000 units of socks.
The total production of socks is 12,500 + 16,000 = 28,500 units.
Hence, the new total output of socks for both countries combined is 28,500.
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collusion is more difficult to sustain when firms revert to the
a) cournot equilibrium during the punishment phase
b) Bertram equilibrium during the punishment phase
Collusion is more difficult to sustain when firms revert to the Bertrand equilibrium during the punishment phase.
Collusion refers to an agreement between firms to restrict competition and increase their joint profits. Sustaining collusion can be challenging because it requires firms to coordinate their actions and avoid engaging in competitive behavior. When firms revert to the punishment phase, they need to decide on a strategy that deters deviation from the collusive agreement. In this context, the choice between Cournot equilibrium and Bertrand equilibrium can have implications for the sustainability of collusion.
In a Cournot equilibrium, firms compete on the basis of quantity. Each firm determines its output level taking into account the output choices of other firms while assuming that prices remain constant. This equilibrium is characterized by strategic interaction and a trade-off between individual profits and market shares. When firms revert to the Cournot equilibrium during the punishment phase, it can be more difficult to sustain collusion. This is because firms have an incentive to deviate by increasing their output slightly to gain a larger market share and higher profits, which can undermine the collusive agreement.
On the other hand, in a Bertrand equilibrium, firms compete on the basis of price. Each firm sets its price assuming that its competitors will maintain their current prices. This equilibrium often leads to fierce price competition and tends to drive prices down to marginal cost. If firms revert to the Bertrand equilibrium during the punishment phase, collusion becomes more difficult to sustain. Under Bertrand competition, firms have an incentive to undercut each other's prices to gain a larger market share. This creates intense price competition and erodes the profits that firms hoped to achieve through collusion.
In summary, when firms revert to the Cournot equilibrium during the punishment phase, sustaining collusion can be more challenging due to the temptation to deviate and increase output. However, when firms revert to the Bertrand equilibrium, collusion is also difficult to sustain because of the intense price competition that arises. Ultimately, the choice between Cournot and Bertrand equilibria during the punishment phase can significantly influence the prospects of maintaining collusion in the market.
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Internal failure costs are associated with testing, labs, and inspectors. O True O False
The statement "Internal failure costs are associated with testing, labs, and inspectors." is false as are costs incurred as a result of defects or failures in products or services before they are delivered to customers.
Internal failure costs are expenses incurred as a result of poor quality and flaws in a business's internal procedures. These expenses are related to actions taken to find and fix errors prior to the delivery of goods or services to customers, such as testing, inspections and rework.
Costs associated with repairing flaws, discarding defective goods, conducting inspections, and resolving production holdups or disruptions are a few examples of internal failure costs. Companies can cut costs, increase efficiency, boost customer satisfaction and safeguard their reputation in the market by addressing internal flaws and investing in quality improvement.
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P Ltd owns all the share capital of S Ltd. Below are some intragroup transactions that occurred during the financial year ended 30 June 2023 A.. S Ltd sold $50,000 worth of inventory to P Ltd. S Ltd recorded $10,000 profit before tax on this transaction. At 30 June 2023, P Ltd has one-quarter of these goods still on hand. B. S Ltd sold a warehouse to P Ltd for $100,000. This warehouse had originally cost S Ltd $82,000. The transaction took place on 1 January 2023. P Ltd charges a straight-line annual depreciation rate at 5%.
Required:
1. Prepare the adjusting journal entries to eliminate the sale of inventory and its tax effect accounting for the consolidation worksheet at 30 June 2023 assuming an income tax rate of 30% and that all income of sale of assets is taxable and expenses are deductible. Narrations are not required
2. Prepare the adjusting journal entries to eliminate the sale of the warehouse
1. Adjusting journal entries to eliminate the sale of inventory and its tax effect at 30 June 2023:
a) Eliminating the sale of inventory:
P Ltd's Inventory (current asset) $12,500
S Ltd's Inventory (current asset) $12,500
b) Eliminating the profit on the intercompany sale:
P Ltd's Inventory (current asset) $2,500
S Ltd's Inventory (current asset) $2,500
P Ltd's Equity in Subsidiary Earnings
(retained earnings) $10,000
c) Eliminating the tax effect on the profit:
Income Tax Expense (current liability) $3,000
Deferred Tax Liability (non-current liability) $3,000
2. Adjusting journal entry to eliminate the sale of the warehouse:
P Ltd's Warehouse (non-current asset) $100,000
S Ltd's Warehouse (non-current asset) $100,000
Depreciation Expense (income statement) $4,100
Accumulated Depreciation - P Ltd's Warehouse
(non-current asset) $4,100
Note: These adjusting entries are made in the consolidation worksheet to eliminate the effects of intercompany transactions and ensure accurate consolidation of financial statements. The specific accounts used may vary depending on the company's chart of accounts and accounting policies.
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In April 2020, there was shortage of Ghacem cement in the country which led to a rise in the price of Ghacem cement. The government then intended to put a price ceiling on cement in the country to minimize the loss to users of cement for construction purposes. Some people were of the view that "the fixing of a price ceiling for cement in the country will not have any effect". Briefly discuss with the aid of an appropriate diagram, the effect of the imposition of price ceiling on Ghacem cement in the market.
As a result, a long queue of buyers will form as buyers compete for the limited amount of cement available at the price ceiling. This diagram can be used to represent the situation. The imposition of price ceiling on Ghacem cement in the market will have a negative effect, according to the above analysis.
When the demand for a commodity is greater than the supply of the commodity, a shortage occurs. When the demand for cement, particularly Ghacem cement, exceeded the supply, a scarcity occurred, and the price of cement increased in response to the excess demand. In response to the price surge, the government intends to put a price ceiling on cement in the country to minimize the loss to users of cement for construction purposes.
However, some people believe that imposing a price ceiling will not have any effect on the market. This is because a price ceiling will limit the amount that suppliers may charge for cement. The market equilibrium price, on the other hand, is determined by the interaction of supply and demand. As a result, the price ceiling will be ineffective since it will be lower than the market equilibrium price. Because the supply of cement is limited and the demand is high, there will be a queue of buyers at the market equilibrium price of P1. However, if the government imposes a price ceiling of P2, which is lower than P1, a shortage of cement will occur. Since the price is lower than the market equilibrium price, the amount of cement supplied will be lower than the amount demanded.
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Charlie Brown works in a local accounting firm as an auditor. He caught up with his friends Linus, Marcie and Franklin on the weekend. It turns out that Charlie is involved in the audit of the company Linus currently works for as their management accountant. Charlie was talking about how the company seems to be in desperate need of an injection of funds to remain in operation and that his boss, the audit partner, is considering whether he needs to include a "going concern" qualification in the audit report this year. Charlie said that to try and preserve Linus' job he would attempt to convince the partner that the finance is coming. He encouraged Linus to amend the latest arrangement with the bank that finishes on 20/6/2022 to 2023. List 2 breaches of the fundamental principles of ethics APES110 Code of Ethics for Professional Accountants and explain why it has been breached
Auditors are required to comply with ethical standards, and the fundamental principles of ethics are a part of these standards. As an auditor, Charlie Brown has breached two of the fundamental principles of ethics as stated in the APES110 Code of Ethics for Professional Accountants.
Auditors are required to comply with ethical standards, and the fundamental principles of ethics are a part of these standards. As an auditor, Charlie Brown has breached two of the fundamental principles of ethics as stated in the APES110 Code of Ethics for Professional Accountants. First, the principle of integrity has been breached. This principle requires auditors to be honest and straightforward in all professional and business relationships. Charlie's attempt to convince his boss to provide a positive opinion in the audit report without proper evidence breaches this principle. He is misleading the stakeholders by presenting an opinion that is not backed up by sufficient evidence, thereby compromising his integrity as an auditor.
Secondly, the principle of objectivity has been breached. The principle requires auditors to be unbiased and not allow any personal or professional conflicts of interest to affect their objectivity. Charlie's relationship with Linus, his personal interest in preserving his friend's job, and his attempt to extend the bank's financing arrangement without proper justification undermines his objectivity as an auditor. He is no longer impartial in his audit work and is influenced by his personal interests, which is a breach of the principle of objectivity. In conclusion, Charlie Brown's actions have breached the fundamental principles of ethics, namely the principles of integrity and objectivity, and therefore, he should not be allowed to participate in the audit of the company.
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Part 2: Prospecting Methods….Looking for Potential Prospects
(customers)
Explain why prospecting is important for you as a sales
representative and why you have to be strategic.
Choose two prospect
As a sales representative, prospecting is an essential part of your job. It involves the process of identifying potential prospects or customers who are likely to purchase the product or service you are selling. Prospecting is important for several reasons, including:
1. Building a customer base: Prospecting helps you to expand your customer base and reach out to potential customers who may not be aware of your product or service.
2. Increasing sales: By identifying potential customers and targeting them effectively, you can increase your chances of making sales and achieving your sales targets.
To be successful in prospecting, you need to be strategic. This means that you need to have a clear understanding of your target market and the needs of your potential customers. You also need to have a well-defined sales process that includes a range of prospecting methods. Two prospecting methods that you can use include:
1. Referrals: Referrals are a powerful prospecting method that involves getting recommendations from your existing customers. This can help you to reach out to potential customers who are already interested in your product or service.
2. Networking: Networking is another effective prospecting method that involves attending events and building relationships with potential customers. This can help you to establish trust and credibility with your prospects and increase your chances of making sales.
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If the board of directors authorizes a $70,000 restriction of retained earnings for a future plant expansion, the effect of this action is to:
A. decrease total retained earnings and increase total liabilities.
B. reduce the amount of retained earnings available for dividend declarations.
C. increase stockholders' equity and decrease total liabilities.
D. decrease total assets and total stockholders' equity.
The correct answer is B. reduce the amount of retained earnings available for dividend declarations.
When the board of directors authorizes a restriction of retained earnings for a future plant expansion, it means that a portion of the retained earnings is set aside and designated for a specific purpose, in this case, the plant expansion. This restriction limits the amount of retained earnings that is available for dividend distributions to shareholders.
Retained earnings represent the accumulated profits of a company that have not been distributed to shareholders as dividends. By restricting a portion of the retained earnings, the company is indicating its intention to allocate those funds for a specific investment or use, rather than distributing them to shareholders as dividends.
Therefore, the effect of this action is to reduce the amount of retained earnings available for dividend declarations.
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Demand for Rover dogwalking services in Harrisonburg is given by the following inverse demand function: Pa(g) = 30 9. 1 10 while the supply of dogwalking services is given by the following inverse supply function: 2 P.(g) 10% where q denotes the number of dogwalks demanded or supplied. (a) (6) What is the equilibrium price and quantity of dogwalks in Harrisonburg? How high are consumer and producer surplus? (b) (4) The City of Harrisonburg aims to increase government revenue by implementing a tax on producers of $3 for every dog walked. What will be the result of this new tax on the equilibrium price that consumers pay, the price producers receive, and the number of dogwalks that occur? (c) (6) How much tax revenue will be generated as a result of this tax? What are consumer and producer surplus after the tax is implemented? (d) (2) How much dead weight loss does the tax generate? (e) (10) For this part of the question, suppose that supply is perfectly inelastic at the original equilibrium quantity. If the same $3 production tax is imposed, what happens to the equilibrium price that consumers pay, the price producers receive, the number of dogs walked, the tax revenue) that is generated, and the deadweight loss that arises after the tax is implemented? You need five separate answers for this part - no detailed math is necessary, but a picture might help. In one sentence, summarize your results - don't simply re-state them, but provide intuition.
The imposition of a production tax affects the equilibrium price, the price received by producers, the quantity of dogwalks, tax revenue, and deadweight loss.
(a) The equilibrium price and quantity of dogwalks in Harrisonburg can be determined by setting the quantity demanded equal to the quantity supplied. In this case, we have:
Pa(g) = Ps(g)
30 - 9Qd = 2 + 0.1Qs
Solving this equation, we find that the equilibrium quantity is Q = 28 and the equilibrium price is P = $12. Consumer surplus can be calculated as the area below the demand curve and above the equilibrium price, which is equal to $216. Producer surplus can be calculated as the area above the supply curve and below the equilibrium price, which is equal to $64.
(b) The implementation of a $3 tax on producers will increase the cost of supplying dogwalks. As a result, the supply curve will shift upwards by $3. The new equilibrium price that consumers pay will increase to $15, while the price producers receive will decrease to $12. The number of dogwalks that occur will decrease from 28 to 25.
(c) The tax revenue generated can be calculated by multiplying the tax per unit ($3) by the quantity supplied after the tax (25). Therefore, the tax revenue will be $75. After the tax is implemented, consumer surplus will decrease to $125, while producer surplus will decrease to $25.
(d) The deadweight loss represents the loss in total surplus due to the tax. It can be calculated as the triangle between the supply and demand curves, above the new equilibrium quantity and below the initial equilibrium quantity. The exact amount of deadweight loss would depend on the specific area of the triangle.
(e) If the supply is perfectly inelastic, the equilibrium quantity remains unchanged at 28. However, the entire burden of the tax falls on producers, resulting in a decrease in the price received by producers to $9. The price paid by consumers will increase to $15, generating tax revenue of $84. Since the supply is inelastic, there is no deadweight loss.
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The gross earnings for all employees is credited to Salaries and Wages Payable.
TRUE or FALSE
FALSE. The statement is not accurate. Gross earnings for all employees are typically credited to the Salaries and Wages Expense account, not Salaries and Wages Payable.
Salaries and Wages Payable is a liability account that represents the amount owed by the company to its employees for their earned wages but not yet paid. It reflects the accrued wages that are payable to employees. This account is used when wages are earned but not yet disbursed.
On the other hand, Salaries and Wages Expense is an expense account that records the total cost of wages and salaries incurred by the company during a specific period. It includes all direct and indirect labor costs associated with the employees' compensation.
When employees earn their wages, the corresponding entry debits the Salaries and Wages Expense account to recognize the expense, while the credit is made to either Cash (if paid immediately) or the Salaries and Wages Payable account (if the wages are accrued but not yet paid).
Therefore, the correct statement would be that gross earnings for all employees are credited to the Salaries and Wages Expense account, not Salaries and Wages Payable.
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Bayer AG clustered all of its business operations into six groups under an umbrella company called Bayer World. Each of these six groups have included several subgroups comprised of product categories such as as dyestuffs, fibers, or chemicals. At the same time, each of its administrative and service functions were placed under Bayer World into one of several functional groups, such as marketing, human resources, plant administration, or finance. In addition, top executives who had headed functional groups in the past, were given authority over different geographical regions, which, like the product groups, were supported by and intertwined with the functional groups. The final result of the new organizational structure divided the original nine functional areas into 19 multidisciplinary, interrelated business groups. The new organizational structure that Bayer AG adopted was a _____structure.
Answer: matrix structure
Explanation:
Based on the information provided, we can infer that the new organizational structure that Bayer AG adopted was a matrix structure.
A matrix organizational structure is regarded as a workplace format whereby the workers in the organization typically have two or more managers that they report to.
We should note that in a matrix structure, the chains of command are usually two which are the functional lines and also the project, or the product, lines. This is used by Bayer AG.
Calculate the net number of bananas required to produce one of the forth, 100 coconuts (or decimal). Coconuts 0 100 200 300 400 Bananas 427 384 328 281 207
Based on the given data, approximately 410 bananas are required to produce 25 coconuts.
To calculate the net number of bananas required to produce one-fourth of 100 coconuts, we need to find the number of bananas required to produce 25 coconuts (one-fourth of 100).
From the given data, we can see that as the number of coconuts increases, the number of bananas required decreases. However, the data provided does not include the exact values for 25 coconuts.
To estimate the net number of bananas required for 25 coconuts, we can use the given data points as a reference. We can observe that as the number of coconuts increases by 100 (e.g., from 0 to 100), the corresponding number of bananas decreases by approximately 43 (e.g., from 427 to 384).
Based on this observation, we can estimate that for 25 coconuts, the net number of bananas required would be around 410. Please note that this is an estimation based on the given data and may not be exact.
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Managers use sales variances..... Managers use sales variances for Mutiple Choice O O O Planning and budgeting purposes Control purposes only Planning and control purposes Bhuping purses only
Managers use sales variances for planning and control purposes Option c is correct.
Sales variance is the difference between the actual sales of a product or service and the expected sales of the same product or service. The sales variance analysis is used by the management for budgeting, planning, and control purposes.
The analysis of sales variances can help the managers to determine the reasons for the difference between actual and expected sales, as well as to evaluate the performance of salespeople and departments.
By analyzing the sales variances, the management can make informed decisions regarding changes in product pricing, marketing strategies, sales targets, and resource allocation. The sales variance analysis can also be used to forecast future sales, set new sales targets, and improve the overall performance of the business.
Therefore, c is correct.
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Appalachian Registers, Inc. (ARI) has current sales of $50 million. Sales are expected to grow to $70 million next year. ARI currently has accounts receivable of $9 million, inventories of $14 million, and net fixed assets of $14 million. These assets are expected to grow at the same rate as sales over the next year. Accounts payable are expected to increase from their current level of $17 million to a new level of $22 million next year. ARI wants to increase its cash balance at the end of next year by $1 million over its current cash balances, which average $3 million. Earnings after taxes next year are forecasted to be $10 million. Next year, ARI plans to pay dividends of $2 million, up from $500,000 this year. ARI's marginal tax rate is 34 percent. How much external financing is required by ARI next year?
Explanation :
Given, Sales of Appalachian Registers, Inc. (ARI) = $50 million
Expected sales next year = $70 million
Accounts receivable = $9 million
Inventories = $14 million
Net fixed assets = $14 million
Accounts payable = $17 million
Cash balance = $3 million
Earnings after tax next year = $10 million
Dividends next year = $2 million
Marginal tax rate = 34%
Therefore, total asset growth = (Sales growth rate) (Total assets) = 20/50 (50+9+14+14) = $37.2 million
Total liabilities growth = (Sales growth rate) (Total liabilities) = 20/50 (17) = $6.8 million
Total retained earnings = $10 – $2 (dividends) – [0.34($10 – $2)] (taxes) = $4.78 million
Therefore, total financing needed = $37.2 – 6.8 – 3 – 4.78 = $22.62 million
Therefore, $22.62 million external financing is required by ARI next year. This explains that external financing that is required by ARI next year is $22.62 million.
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Perficient Ltd has accumulated the following data for the most recent 6-month period. Month Machine hours Maintenance services cost January 43,000 $56,000 February 18,000 $30,000 March 21,000 $40,000
Since both calculations give a negative fixed cost, it indicates that there is an error or an omission of data in the given data set. So, we cannot use the high-low method to calculate the maintenance service cost in this case.
Perficient Ltd has accumulated the following data for the most recent 6-month period.
Month Machine hours Maintenance services cost January 43,000$ 56,000 February 18,000$ 30,000 March 21,000 $ 40,000
To calculate the maintenance service cost using the high-low method, we need to identify the variable cost per machine hour first and then the fixed cost.
To find out the variable cost per machine hour:
Variable cost per machine hour = Change in cost / Change in machine hours
Variable cost per machine hour
= ($30,000 - $56,000) / (18,000 - 43,000)
= $26.67
So, variable cost per machine hour is $26.67.
Now, let's calculate the fixed cost using either January or February data points.
Using January data: Fixed cost = Total maintenance cost - (Variable cost per machine hour x Machine hours)
Fixed cost = $56,000 - ($26.67 x 43,000)
= $-28,321.
Using February data: Fixed cost = Total maintenance cost - (Variable cost per machine hour x Machine hours)
Fixed cost = $30,000 - ($26.67 x 18,000)
= $-8,040.
Since both calculations give a negative fixed cost, it indicates that there is an error or an omission of data in the given data set. So, we cannot use the high-low method to calculate the maintenance service cost in this case.
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