Problems and Applications Q6 The price of coffee fell sharply last month, while the quantity sold remained the same. Five people suggest various explanations: Sean: Demand decreased, but it was perfectly inelastic. Yvette: Demand decreased, but supply was perfectly inelastic. Bob: Demand decreased, but supply increased at the same time. Cho: Supply increased, but demand was perfectly inelastic. Eric: Supply increased, but demand was unit elastic. Who could possibly be right

Answer:

Present Value of Cash Flows

Exactly when they occur

Expansion Project

Sunk cost is the cost which is already incurred and it is not affected by the decision to accept or reject the project.

Include the value of the warehouse as part of the initial investment in the new project.

Negative Externality

Explanation:

Present value of Cash flows is the discounted cash flows which shows the real worth of the money now which is to be received in future. Sunk costs are not part of the project as they are already incurred. These cost are not included in the calculations of the project cash flows. Negative externality is the undesirable impact due to production and manufacturing plants operations on the environment.

Answer:i think vinsmart is ok

Explanation:

Answer:

The answer is "Option D".

Explanation:

R Company must register a [tex]\$180,000[/tex] building, as well as, an accumulated [tex]\$18,000[/tex] depreciation.

It makes the design the right decision with [tex]\$180,000[/tex] as well as the accrued [tex]\$18,000[/tex] depreciation.

Answer:

Increase

Explanation:

In putting the question into a better perspective let us assume that the US importer buys goods from Mexico every year to the Tune of 1,000,000 Mexican Pesos.

The expected exchange rate  on 1/1/X1=$0.1000*(1+2.5%)/(1+18%)

The expected exchange rate  on 1/1/X1=$0.086864407

Amount paid based on expected exchange rate=1,000,000*$0.086864407

Amount paid based on expected exchange rate=$86,864.41

Amount paid based on actual exchange=1,000,000*$0.085

Amount paid based on actual exchange=$85,000

The above means that the US importer paid a lesser amount($85000) than it should have paid, hence, its net cash flow would increase due to a reduction in payment

Answer:

Total unitary cost= $16.2

Explanation:

First, we need to compute the total fixed overhead:

Total fixed overhead= 10,000*6= 60,000

Now, the unitary absorption cost for 12,500 units:

Direct labor= 2.8

Direct materials= 3.8

Variable overhead= 4.8

Total variable cost= $11.4

Fixed overhead= (60,000/12,500)= 4.8

Total unitary cost= $16.2

The unitary cost is lower.

Answer:

The answer is "-10,900"

Explanation:[tex]\text{Cash from operating activities} + \text{cash from investing activities + cash from financing activities} = -29,000[/tex]

[tex]\text{cash from operating activities}[/tex] [tex]+ 8,400 - 26,500 = -29,000[/tex]

[tex]= -29,000 + 26,500 - 8,400\\\\= -10,900[/tex]

Answer: $10000

Explanation:

The cost of goods sold relative to this forfeiture will be calculated thus:

= (Refundable deposit × percent of not returned) / (1 + Markup percentage on cost)

= ($100000 × 12%) / ( 1 + 20%)

= ($100000 × 0.12) / ( 1 + 0.2)

= $12000 / 1.20

= $10000

The cost of goods sold is $10000

Answer:

hhhhh welcome bro im pig frien

Answer:

Andrews Co.

The company should ______.

should make the part.

Explanation:

a) Data and Calculations:

Costs to make Part XYZ:

                                        Cost Per Unit       Total

Variable manufacturing cost  $12          $240,000

Supervisor salary                     $3             $60,000

Depreciation                             $1             $20,000

Allocated fixed overhead        $7           $140,000

Units to be made or bought = 20,000 units

Cost to buy Part XYZ = $18 per part.

Relevant costs:

                                              Make          Buy         Difference

Variable manufacturing cost  $12

Supervisor salary                     $3

Total relevant cost per unit   $15            $18               $3

Total costs                      $300,000   $360,000     $60,000

b) There is a cost-saving of $60,000 when Part XYZ is made internally.  The cost of depreciation is not relevant in the decision since the equipment has no salvage value or any other use.  Similarly, the fixed overhead will still be incurred, no matter the alternative chosen by the company.

Answer:

The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

Answer:

option 1

$1,381,644.80

Explanation:

Alex would choose the option that has the highest present value

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

pv of option 2

Cash flow in year 0 = 20,000

Cash flow in year 1 - 6 =  $8,000

i = 6%

PV = 59,338.60

OPTION 3

Cash flow in year 1 - 6 = 13,000

i - 6%

pv = 63,925.22

option 1 has the highest present value and should be chosen  

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

2.

future value of an annuity = Annual payment x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

(1.07^10 - 1 ) / 0.07 = 13.816448

13.816448 x 100,000 = $1,381,644.80

Answer:

8.26%

Explanation:

Calculation to determine the modified IRR

First step is to calculate the Modified Year 2 cash flow

Modified Year 2 cash flow = $21,300 + (-$6,200)/1.11

Modified Year 2 cash flow= $15,714.41

Now let determine the Modified IRR

Modified IRR:$0 = -$84,900 + $77,400/(1 + IRR) + $15,714.41/(1+ IRR)^2

Modified IRR= 8.26%

Therefore the modified IRR is 8.26%

Answer:

All of the options are correct.

Explanation:

The upward sloping yield curve includes the signal with related to the rate of interest that are predicted to rise. It incorporated the liquidity premium. Also it present the liquidity premium along with the predictions of the rate of interest that should be confounded

so as per the given situation, all given statement should be considered

hence, all of the options are correct should be relevant

the answer is c because hes limited to what he can controll

Answer:

1. We have:

MAE = 3.60

MSE = 15.60

MAPE = 25.45

2. We have:

MAE = 2.62

MSE = 11.11

MAPE = 19.59

3. The average of all the historical data provides the more accurate forecasts for the historical data.

Explanation:

Note: This question is not correct as the average of all the historical data is asked to be used as a forecast for the next period in requirements 1 and 2 instead of the naïve method (most recent value) for the first requirement. The correct question is therefore presented before answering the question as follows:

Consider the following time series data.

Week     1      2       3      4       5       6

Value    19    13      15     12     17      15

1. Using the naïve method (most recent value) as the forecast for the next period, compute the following (Round your answers to two decimal places.) measures of forecast accuracy:

a. Mean absolute error (MAE)

b. Mean squared error (MSE)

c. Mean absolute percentage error (MAPE).

2. Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

3. Which method appears to provide the more accurate forecasts for the historical data?

The explanation of the answer is now provided as follows:

The following formulae are to be used:

MAE = Total of Error / Number of observations

MSE = Total of Error^2 / Number of observations

MAPE = Total of Error % / Number of observations

1. Using the naïve method (most recent value) as the forecast for the next period, compute the following (Round your answers to two decimal places.) measures of forecast accuracy:

Note: See part 1 of the attached excel file for the determination of Naïve and Calculations of Error, Error^2 and Error % using the naïve method as the forecast for the next period.

From the attached excel file, we have:

MAE = 18.00 / 5 = 3.60

MSE = 78.00 / 5 = 15.60

MAPE = 127.23 / 5 = 25.45

2. Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

Note: See part 2 of the attached excel file for the determination of Naïve and Calculations of Error, Error^2 and Error % using the average of all the historical data as a forecast for the next period.

From the attached excel file, we have:

MAE = 13.12 / 5 = 2.62

MSE = 55.55 / 5 = 11.11

MAPE = 97.94 / 5 = 19.59

3. Which method appears to provide the more accurate forecasts for the historical data?

The average of all the historical data provides the more accurate forecasts for the historical data comparing the values of its MAE, MSE and MAPE to the values of MAE, MSE and MAPE of Naive method. This is because the error values of the average of all the historical data are much lowest and more closest to the actual data.

Answer:

Explanation:

B-Quantity of decreased sales day the price of sugar

Answer:

True

Explanation:

The given statement is true because there are other factors that impact the demand for a commodity for example if the income of a person rises then the person will consume more commodity and the demand curve will shift.

Therefore, other factors should be constant while constructing the demand function because keeping other factors constant will not impact the price and output relationship.

Answer:

The transactions are recorded when they incur and then there may be some changes in those transaction later on, they all are adjusted at month end with adjusting entries.

Explanation:

It is not possible for an accountant to continuously keep updating every transaction. They all are recorded at inception and then any changes made in those transactions are adjusted at the month end. All balance are reconciled and verified. There can be events which lead to changes to the transaction after the reporting date then these events are considered as events after reporting period and they are treated differently according to guidelines specified in IAS 10.

Answer:

There are many ways a taxpayer can trigger a realization event.  She can trigger it through a sale or trade by receiving a value greater than the disposed asset.  She can also trigger a realization event by making a gift to charity.  Other ways include disposal, for example, to a landfill and destruction through natural disaster.  In the latter cases, there is a loss to the taxpayer.  With a natural disaster, the taxpayer can only obtain a realization gain if reimbursed by the insurance company.

Explanation:

A realization event happens when there is a sale or a disposal of an asset or a discharge from a liability.  There is usually an increase in the value realized from the disposal, which is greater than the asset's value before disposal. It also happens when the taxpayer receives a relief from a liability or completes a profitable transaction.

Answer:

a. How long will the current bridge system work before a new bracing system is​ required?: 64.18 years or 64 years and 2 months.

b. What if the annual traffic rate increases at 8 ​% ​annually: The bracing system will last for 24.65 years or 24 years and 7 months.

c. At what traffic increase rate will the current system last only 12 ​years: 17.13%

Explanation:

a. Denote x is the time taken for the number of pedestrian to grow from 300 to 2000. The current pedestrian is 300, the grow rate per year is 3% or 1.03 times a year. Thus, to reach 2,000, we have the equation: 300 x 1.03^x = 2000. Show the equate, we have 1.03^x = 6.67 <=> x = 64.18

b.  Denote x is the time taken for the number of pedestrian to grow from 300 to 2000. The current pedestrian is 300, the grow rate per year is 8% or 1.08 times a year. Thus, to reach 2,000, we have the equation: 300 x 1.08^x = 2000. Show the equate, we have 1.08^x = 6.67 <=> x = 24.65.

c. Denote x as traffic increase rate. The current pedestrian is 300, the grow rate per year is (1+x) times a year. Thus, to reach 2,000 after 12 years and thus a new bracing system to be in place, we have the equation: 300 x (1+x)^12 = 2000. Show the equate, we have (1+x)^12 = 6.67 <=> 1+x = 1.1713 <=> x = 17.13%.

Question Completion with Options:

Money, Currency, Time Deposit

Answer:

1. Terms          Definitions

Time Deposit  An interest-earning deposit with a specified maturity date                                                                      

Money            Any good that is widely accepted for purposes of exchange

                       and in the repayment of debt

Currency        Coins and paper money

2. The statements about the history of banks that are true:

Warehouse receipts, issued by goldsmiths were often used instead of gold itself to make payments.

Goldsmiths held deposited gold and issued receipts to their customers.

Explanation:

Banking evolved with the activities of goldsmiths who warehoused gold brought by customers for safeguarding by issuing them with warehouse receipts.  Before long, the warehouse receipts were used as a means of payment (or exchange).  That is, the warehouse receipts were used as currency, which is the modern-day equivalent of coins and paper money.

Answer:

c. $7,418

Explanation:

Calculation to determine What was Fei’s Interest Expense on the bond during fiscal year 2012

Using this formula

Interest Expense =Interest payable+Amortization of bonds discount interest expense

Let plug in the morning

Interest Expense=(5%*100,000)+$2,418

Interest Expense=$5,000+$2,418

Interest Expense=$7,418

Therefore Fei’s Interest Expense on the bond during fiscal year 2012 is $7,418

Answer:

a. Rate of return = 94.51%

b. Rate of return = 1.68%

Explanation:

a. A market value–weighted index

Total market value at time 0 = Market value of Stock A at time 0 + Market value of Stock B at time 0 + Market value of Stock C at time 0 = ($99 * 100) + ($59 * 200) + ($118 * 20) = $24,060

Total market value at time 1 = Market value of Stock A at time 1 + Market value of Stock B at time 1 + Market value of Stock C at time 1 = ($104 * 100) + ($54 * 200) + ($128 * 200) = $46,800

Rate of return = (Total market value at time 1 / Total market value at time 0) – 1 = ($46,800 / $24,060) - 1 = 0.9451, or 94.51%

b. An equally weighted index

Return on a Stock for the first period = (P1 / P0) - 1 …………. (1)

Therefore, we have:

Return on Stock A for the first period = ($104 / $99) - 1 = 0.0505, or 5.05%

Return on Stock B for the first period = ($54 / $59) - 1 = - 0.0847, or - 8.47%

Return on Stock C for the first period = ($128 / $118) - 1 = 0.0847, or 8.47%

Therefore, we have:

Return of return = (Return on Stock A for the first period + Return on Stock B for the first period + Return on Stock C for the first period) / 3 = (5.05% - 8.47% + 8.47%) / 3 = 1.68%

Answer: a separate schedule

Explanation:

Preferred stock, are referred to as the shares of the stock of a company whereby the dividends are paid out to the preference shareholders before the common stock dividends are issued.

It should be noted that the preferred stock which is issued in exchange for the land will be reported in the statement of cash flows in a separate schedule.

Answer:

See below

Explanation:

Cullumber Company

Bank Reconciliation

July 31, 2022

Cash balance as per bank

$11,310

Add:

Deposits in transit

$4,615

Less:

Outstanding checks

($1,950)

Adjusted bank balance

$13,975

Cash balance per books

$11,440

Add:

Electronic fund transfer received

$2,600

Less:

Bank service charges

($65)

Adjusted cash balance

$13,975

Answer:

Explanation:

In 2022,  

Contract Price          2,245,000  

Less: Cost incurred  

2020           (256,000)  

2021        (1,580,000)  

2022          (630,000)  

Gross Margin           (145,000)

Answer:

73.70%

Explanation:

Note: The full question is attached as picture below

Real GDP in 2017 = ($3*5) + ($2*2)

Real GDP in 2017 = $15 + $4

Real GDP in 2017 = $19 million

Real GDP in 2018 = ($3*7) + ($2*6)

Real GDP in 2018 = $21 + $12

Real GDP in 2018 = $33 million

Real Growth rate between 2017 and 2018 = [(33 - 19) / 19] * 100 = [14/19] * 100 = 0.73684211 * 100 = 73.684211% = 73.70%

Answer:

the reduction in the bond discount is $48,000

Explanation:

The computation of the reduction in the bond discount is as follow;

= ($11,400,000 × 14% × 1 ÷ 2) - ($12,500,000 × 12% × 1 ÷ 2)

= $798,000 - $750,000

= $48,000

Hence, the reduction in the bond discount is $48,000

Here we considered half as the interest is payable on semi-annual basis

Answer:

the  future value in two years is $110.25

Explanation:

The computation of the future value in two years is shown below:

As we know that

Future value = Present value × (1 +  rate of interest)^number of years

= $100  × (1  + .05)^2

= $100 ×  (1.1025)

= $110.25

Hence, the  future value in two years is $110.25

The same should be considered and relevant