Answer:
$4,820
Explanation:
Given the above information
Credit sales = $241,000
Cost of goods sold = $141,000
The bad debt expense can be computed using the below formulae
Bad debt expense = Credit sales × 2%
Bad debt expense = $241,000 × 2%
Bad debt expense = $4,820
Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $12,750 basis and a $19,850 fair market value. On January 2 of this year, Kimberly has a $18,300 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a $15,575 basis and an $22,675 fair market value.
a. What is the amount and character of Kimberly's recognized gain or loss on the distribution?
b. What is Kimberly’s remaining basis in KST after the distribution?
c. What is KST's basis in the land Kimberly contributed after Kimberly recevies the distribution?
Answer:
a. What is the amount and character of Kimberly's recognized gain or loss on the distribution?
Kimberly's capital gain = land's FMV - other land's FMV = $22,675 - $19,850 = $2,825
b. What is Kimberly’s remaining basis in KST after the distribution?
Kimberly's basis = basis + gain - land basis = $18,300 + $2,825 - $15,575 = $5,550
c. What is KST's basis in the land Kimberly contributed after Kimberly receives the distribution?
KST's basis on the land = land's basis + Kimberly's gain = $12,750 + $2,825 = $15,575
As a consumer, why is it good for us when a store has a surplus of an item we want?
Answer:
Usually prices are lower when you have a surplus amount of an item. However, if there was a low amount of one item the price would be extremely high and competitive. Hope that helps!!!
Explanation:
Answer:
A lower consumer surplus leads to higher producer surplus and greater inequality. Consumer surplus enables consumers to purchase a wider choice of goods.
On January 1, Year 1, Eller Company purchased an asset that had cost $24,000. The asset had an 8-year useful life and an estimated salvage value of $1,000. Eller depreciates its assets on the straight-line basis. On January 1, Year 5, the company spent $6,000 to improve the quality of the asset. Based on this information, the recognition of depreciation expense in Year 5 would:
Answer:
Reduce total equity by $4,375
Explanation:
Calculation to determine what the recognition of depreciation expense in Year 5 would:
First step is to calculate the Depreciation amount for each year
Depreciation = $23,000/8
Depreciation= $2,875
Second step is to calculate the Depreciation for 4 years
Depreciation for 4 years = $2,875* 4
Depreciation for 4 years = $11,500
Third step is to calculate the Carrying value of asset
Carrying value of asset = ($24,000 - $11,500)+$6,000
Carrying value of asset = $12,500+$6,000
Carrying value = $18,500
Now let calculate what the recognition of depreciation expense in Year 5 would:
Recognition of depreciation expense in Year 5 = ($18,500 - $1,000)/4
Recognition of depreciation expense in Year 5 = $4,375
Therefore Recognition of depreciation expense in Year 5 would Reduce total equity by $4,375
Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was $52,000. He incurred the expenses in June and July 2015. Under the following circumstances, what can Terry deduct in 2020?
a. Terry was in the hardware store business and did not acquire the two hardware stores.
b. Terry was in the hardware store business and acquired the two hardware stores and began operating them on October 1, 2020.
c. Terry did not acquire the two hardware stores and was not in the hardware store business.
d. Terry acquired the two hardware stores but was not in the hardware store business when he acquired them. Operations began on October 1, 2020.
Answer: See explanation
Explanation:
a. Terry was in the hardware store business and did not acquire the two hardware stores.
The amount that Terry will deduct in 2020 will be $52000 which is the deduction for all expenses.
b. Terry was in the hardware store business and acquired the two hardware stores and began operating them on October 1, 2020.
In this case, he'll also deduct $52000 which is the deduction for all expenses.
c. Terry did not acquire the two hardware stores and was not in the hardware store business.
None of his expenses will be deducted. The amount it be deducted is 0.
Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company Accumulated depreciation $ 700 Beginning inventory 11,500 Ending inventory 6,900 Expenses 2,100 Net purchases 14,300 Net sales 22,500 Krug Service Company Expenses $ 8,700 Revenues 27,000 Cash 700 Prepaid rent 680 Accounts payable 200 Equipment 2,500 a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Compute net income for each company.
Answer and Explanation:
a. The computation of the goods available for sale, the cost of goods sold and gross profit for the merchandiser is shown below:
Goods available for sale
Beginning inventory $11,500
Add:Net purchases $14,300
Goods available for sale $25,800
Cost of goods sold
Goods available for sale $25,800
less: Ending inventory -$6,900
Cost of goods sold $18,900
Gross profit
net sales $22,500
less:cost of goods sold -$18,900
Gross profit $3,600
b. The net income for each company is shown below:
Net income for Krug Service company
Revenues $27,000
less: Expenses -$8,700
Net income for Krug Service company $18,300
Net income for Kliener Merchandising Co
Gross profit $3,600
less:Expenses -$2,100
Net income for Kliener Merchandising Co $1,500
[The following information applies to questions 14-16.]
Furniture Face Lift refinishes old wood furniture. Their process for refinishing chairs has 8 workers and 4 stations. Each chair starts at the Stripping station, then goes to Priming, then to Painting and finally to Inspection. Where there are multiple workers within a station, each worker works independently on his/her own chair. Assume inventory buffers are allowed between each station.
Station Staffiing Processing time (hours per chair per worker)
Stripping 3 workers 2.5
Priming 2 workers 1.5
Painting 2 workers 1.75
Inspection 1 worker 17/10
**Multiple workers within the same station conduct in-parallel production activities. Note the processing time is for per unit per worker.
a. What is the maximum number of chairs per hour that can be produced? Assume they start the day with inventory at each station to work on (that is assuming the process is operated continually).
b. Suppose at the start of the day there is no inventory of chairs in the shop. That is, there are no chairs within any of the stations or between them in any buffer. A truck loaded with 15 chairs arrives. How many hours will it take them to complete these 15 chairs?
c. Suppose now that each worker is trained to do all tasks and each worker works on a chair from start to finish, i.e., each worker does Stripping, Priming, Painting and Inspection. What is the maximum capacity of the process in chairs per hour?
Note: for all HW assignments, please show your process of getting the results. Only providing the final answers is NOT acceptable and will get 0%. If necessary, please use a separate sheet of paper to show your work
Answer:
a. Station Staffing Processing time Capacity
(hours/chair/worker) (Staffing/activity time)
Stripping 3 workers 2.5 3/2.5 = 1.2
Priming 2 workers 1.5 2/1.5=1.33
Painting 2 workers 1.75 2/1.75=1.14
Inspection 1 worker 17/10=1.7 1/1.7=0.59
Inspection have the bottle neck, due to the least capacity (0.59). So, the process capacity can be given as 0.59
Total time to produce first chair =2.5+1.5+1.75+1.7 = 7.45 hours
Total time to make the each subsequent chair will be 1/0.59
b. So, total time to complete 15 chairs = (7.45)+ (1/0.59)*14
= 7.45 + 23.73
= 31.18 hours
c. In this case, there will be no bottle neck as each worker will be operating with its full capacity.
Total time taken by each worker to finish one chair = 2.5+1.5+1.75+1.7 = 7.45 hours & Total workers = 8
Maximum capacity = 8/7.45
Maximum capacity = 1.074 chairs per hour
You purchase a life insurance policy which involves making 5 annual premium payments (the first payment starting today). The original premium is $1800 and the premium increases 4% each year. The time line for the payments is drawn for you.
Today 1 2 3 4
$1,800 $1,872 $1,947 $2,025 $2,106
Now assume the insurance company offers you a level payment plan that has the same present value as the payment stream above but where all the premiums are the same. If the insurance company earns 10% compounded annually on its assets, what would the level payments be?
Today 1 2 3 4
$X $X $X $X $X
Answer:
$1,935.38
Explanation:
Rate = 10% = 0.1
Present value of premiums = Premium Today + Premium 1/(1+r) + Premium 2/(1+r)^2 + Premium 3/(1+r)^3 + Premium 4/(1+r)^4
Present value of premiums = $1800 + $1872/1.1 + $1947/(1.1)^2 + $2025/(1.1)^3 + $2106/(1.1)^4
Present value of premiums = $1800 + $1701.82 + $1609.10 + $1521.41 + $1438.43
Present value of premiums = $8070.76
Present value of level payments = $8070.29 / (((1-(1+10%)^(-5))/10%)*(1+10%))
Present value of level payments = $8070.29 / 4.169865447
Present value of level payments = 1935.383791773462
Present value of level payments = $1,935.38
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Question 7 of 22
The full employment level of real GDP is $6 billion for the recently formed island nation of Turtleopolis. Use the line
segment to show long-run aggregate supply on the graph.
(Which blue dot do I set the line to?)
Answer:
It is a vertical line at Real GDP = 6 billion
Points (6,0) and (6,8)
Explanation:
Long-run aggregate supply curve looks like a vertical line, while short-run aggregate supply curve is an upward-sloping line. The question says the full employment is at $6 billion, so that is where your long-run aggregate supply curve is.
The long-run aggregate supply on the graph will be the vertical line at Real GDP = 6 billion at Points (6,0) and (6,8)
The long-run aggregate supply refers to the output that an economy can be able to produce by using all its factors of production. In this case, the economy is operating at full employment.
It should be noted that while the short-run aggregate supply curve is an upward-sloping line, the long-run aggregate supply curve is a vertical line.
In this case, since the full employment is at $6 billion, then the long-run aggregate supply curve will be at that point which is at points (6,0) and (6,8)
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ABC Christmas shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on October 1 in the amount of $20,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest
Answer: See explanation
Explanation:
To know the the adjusting entry to be made on December 31 for the interest expense accrued to that date, we have to calculate the interest expense for the three months and this will be:
= $20000 × 6% × 3/12
= $20000 × 0.06 × 0.25
= $300
Therefore, the adjusting entry to be made on December 31 for the interest expense accrued to that date will be:
Debit: Interest expenses $300
Credit: Interest Payable $300
Airline Accessories has the following current assets: cash, $92 million; receivables, $84 million; inventory, $172 million; and other current assets, $8 million. Airline Accessories has the following liabilities: accounts payable, $78 million; current portion of long-term debt, $25 million; and long-term debt, $13 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)
Answer:
Current ratio 3.46
Acid-test ratio 1.71
Explanation:
A. Calculation to determine Current ratio
Using this formula
Current ratio =Current assets/Current liablities
Let plug in the formula
Current ratio=$92 million+$84 million+$172 million+$8 million/$78 million+$25 million
Current ratio=$356 million/$103 milion
Current ratio=3.46
B. Calculation to determine the acid-test ratio
Acid-test ratio=$92 million+$0+$84 million/$78 million+$25 million
Acid-test ratio=$176 million/$103 million
Acid-test ratio=1.71
Edison and Hilary Garcia live in Swarthmore, PA. Their son, Kevin, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Hilary gets a new video camera made in the United States.
Kevin buys a new set of tools to use in his plumbing business.
The state of Pennsylvania repaves highway PA 320, which goes
through the center of Swarthmore.
Edison buys a sweater made in Guatemala.
Edison's employer assigns him to provide consulting services to
an Australian firm that's opening a manufacturing facility in China.
Answer:
Hilary gets a new video camera made in the United States. ⇒ Consumption .
It is bought for personal use in the United States so falls under the consumption of the U.S.
Kevin buys a new set of tools to use in his plumbing business. ⇒ Investment.
This is investment because it was bought to improve the reduction capacity of the business.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. ⇒ Government Purchases (G).
The state of Pennsylvania paid for this so it is government expenditure.
Edison buys a sweater made in Guatemala. ⇒ Imports (M).
The sweater was imported into the U.S. from Guatemala so falls under imports.
Edison's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. ⇒ Exports.
Edison's skills are being sent to Australia and China indirectly so they represent exports as they are being sent out of the country.
(1) ____ are two of the largest financial institutions in the country.
Answer:
in which country are you referring( if in u.s it is JPMorgan chase &co.)
Donna Pierce manages a business that distributes imported woolen fabrics. Donna's business offers a 2.5% cash discount on any amount paid within 10 days of the invoice date. On January 28, a client purchased fabrics priced at $14,500, and on February 1 the client sent in a $10,000 check. Compute the unpaid balance. (This problem involves the partial payment of an invoice within the discount period.)
Answer:
Donna Pierce
The unpaid balance is:
= $4,243.60.
Explanation:
a) Data and Calculations:
Cash discount on any amount paid within 10 days of the invoice = 2.5%
Sales value of Fabrics bought on January 28 by a client = $14,500
Check made by the client on February 1 = $10,000
Total amount paid through the check = $10,000/100-2.5%
= $10,000/0.975 = $10,256.40
Amount unpaid = $4,243.60 ($14,500 - $10,256.40)
Check:
2.5% discount on $10,256.40 = $256.40 ($10,256.40 * 2.5%)
You own a coal mining company and are considering opening a new mine. The mine will cost $120 million to open. If this money is spent immediately, the mine will generate $20 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $2 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity
Answer: B. There are two IRRs so you cannot use the IRR as a criterion for accepting the opportunity.
Explanation:
The Internal Rate of Return can be useful in capital budgeting to enable a company know if an investment will be profitable. It is defined as the discount rate that causes the Net Present Value(NPV) to be zero. If the IRR is greater than the required return then the project should be accepted as it will have a profitable NPV.
IRR has some problems however and one of them is reflected here. There can sometimes be two IRRs and when this happens, using IRR as a viability measure cannot be done because a single rate is needed for comparison with the required return.
What are 3 benefits of the Pay down credit card feature in Quickbooks Online?
A. It allows users to electronically pay their credit card balances from within QuickBooks Online
B. It prevents miscategorization of credit card payment transactions
C. It helps users identify which credit cards have interest rates that are too high
D. It provides easy-to-understand language for non-accountant users
E. It prevents common errors that affect the company's financial statements
F. It compares your client's credit card balances side by side
Answer:
b or e
Explanation:
The 3 benefits of the Pay down credit card feature in Quickbooks Online are: Option B,E and F
B. It prevents miscategorization of credit card payment transactions
E. It prevents common errors that affect the company's financial statements
F. It compares your client's credit card balances side by side
•It help to prevents miscategorization of credit card payment transactions as it enables all the credit card payment transaction to designated or allocated to the right person who made the transaction.
• It help to prevents common errors that affect the company's financial statements such as error of reversal example is recording a transaction amount as $25 instead of $52.
• It help to compares your client's credit card balances side by side which help to prevent error as the credit card are easily evaluated.
Inconclusion The 3 benefits of the Pay down credit card feature in Quickbooks Online are: Option B,E and F
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Blossom Corporation has provided the following data concerning its most recent month of operations. Show your work for full credits. Selling price $ 121 Units in beginning inventory 0 Units produced 7,000 Units sold 6,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 38 Direct labor $ 53 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 70,000 Fixed selling and administrative expense $ 28,000 a. What is the unit product cost for the month under variable costing
Answer:
Unitary production cost= $94
Explanation:
Giving the following information:
Variable costs per unit:
Direct materials $ 38
Direct labor $ 53
Variable manufacturing overhead $ 3
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead). Variable selling and administrative expense is a period cost.
Unitary production cost= 38 + 53 + 3
Unitary production cost= $94
Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $130,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 12.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,200 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $20,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 20.00 %/year to evaluate investments.
What is the present worth of this investment?
Answer:
The present worth of this investment = -$31,204.78
Explanation:
Note: See the attached excel file for the calculation of the present worth of this investment (in bold red color).
In the attached excel file, the following are used:
Loan from bank = Purchase price * (1 / 4) = $130,000 * (1 / 4) = $32,500
Initial cost = Purchase price - Loan from bank = $130,000 - $32,500 = $97,500
The annual required equal loan payments is calculated using the formula for calculating loan amortization as follows:
P = (A * (r * (1 + r)^n)) / (((1 + r)^n) - 1) .................................... (1)
Where,
P = Annual required equal loan payment = ?
A = Loan amount from bank = $32,500
r = interest rate = 12%, or 0.12
n = number of payment years = 3
Substituting all the figures into equation (1), we have:
P = Annual required equal loan payment = ($32,500 * (0.12 * (1 + 0.12)^3)) / (((1 + 0.12)^3) - 1) = $13,531.34
From the attached excl file, the present worth of this investment is equal to -$31,204.78
Your grandparents put $11,200 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.39 percent compounded monthly. If you expect that you will be in college for 4 years, how much can you withdraw each month
Answer:
The amount you can withdraw each month is $254.84.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = W * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the amount your grandparents put into an account = $11,200
W = Monthly withdrawal = ?
r = Monthly interest rate = annual percentage rate (APR) / 12 = 4.39% / 12 = 0.0439 / 12 = 0.00365833333333333
n = number of months you will be in college = number of years you will be in college * number of months in a year = 4 * 12 = 48
Substitute the values into equation (1) and solve for W, we have:
$11,200 = W * ((1 - (1 / (1 + 0.00365833333333333))^48) / 0.00365833333333333)
$11,200 = W * 43.9483302382462
W = $11,200 / 43.9483302382462
W = $254.844721956084
Rounding to 2 decimal places, we have:
W = $254.84
Therefore, the amount you can withdraw each month is $254.84.
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.70 per sandwich. Sandwiches sell for $2.50 each in all locations. Rent and equipment costs would be $5,300 per month for location A, $5,650 per month for location B, and $5,900 per month for location C.
A. Determine the volume necessary at each location to realize a monthly profit of $9,500.
B. If expected sales at A, B, and C are 20,500 per month, 22,500 per month, and 23,500 per month, respectively, calculate the profit of the each locations.
Answer:
To find the volume necessary to make a certain profit, use the formula:
= (Fixed costs + Profit) / Contribution margin
Contribution margin = Selling price - variable cost
= 2.50 - 1.7
= $0.80
Location A Location B
= (5,300 + 9,500) / 0.80 = (5,650 + 9,500) / 0.80
= 18,500 sandwiches = 18,938 sandwiches
Location C
= (5,900 + 9,500) / 0.80
= 19,250 sandwiches
B. Profit at A:
= Contribution margin * sales - fixed costs
= 0.8 * 20,500 - 5,300
= $11,100
Profit at B:
= 0.8 * 22,500 - 5,650
= $12,350
Profit at C:
= 0.8 * 23,500 - 5,900
= $12,900
1. Mr. C, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home’s square footage. This year, Mr. C incurred the following expenses in connection with his home: Home mortgage interest $12,980 Property tax on residence 2,200 Homeowner’s insurance 1,475 Utilities 2,100 Furnace repairs 300 Mr. C purchased the home in 1998 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000 to the land. Compute his home office deduction for the year.
Answer:
Mr. C
Home office deduction for the year is:
= $20,405.50
Explanation:
Qualifying home office expenses:
Home mortgage interest $12,980
Property tax on residence 2,200
Homeowner’s insurance 1,475
Utilities 2,100
Furnace repairs 300
Depreciation on building 185,000
Qualified home expenses $204,055
10% for home office = $20,405.50
b) Mr. C is entitled to deduct home office expenses relating to mortgage interest, insurance, utilities, repairs, and depreciation, including furnace repairs. The deductions for a home office are based on the percentage of Mr. C's home devoted to his business use.
why do we have a graduated income tax?
A sole proprietor in the 37% tax bracket pays her 16-year-old son a reasonable salary of $14,000 for services performed for the proprietorship. Compute the family's income tax savings if the son has no other income and takes a $12,400 standard deduction.
Answer: $5020
Explanation:
The family's income tax savings if the son has no other income and takes a $12,400 standard deduction will be calculated as:
Explanation:
Tax savings from deduction = ($14,000 × 37%) = $5180
Less: Tax on child's taxable income = 10% × ($14,000 - $12,400) = 10% × $1600 = $160
Family's income tax savings = $5180 - $160 = $5020
A bank currently has $150 million in "hot money" deposits against which it wants to hold an 80 percent reserve and $90 million in vulnerable deposits against which it wants to hold a 30 percent reserve. It also has $45 million in stable deposits against which it wants to hold a 5 percent reserve. Legal reserves for the bank are 5 percent of all deposits. What is the bank's liability liquidity reserve?
Answer:
The right response is "141.7875".
Explanation:
According to the question,
The total reserves held will be:
= [tex]0.8\times 150+0.3\times 90+0.05\times 45[/tex]
= [tex]120+27+2.25[/tex]
= [tex]149.25[/tex]
Deductions will be:
= [tex]5 \ percent \ of \ 149.25[/tex]
= [tex]0.05\times 149.25[/tex]
= [tex]7.4625[/tex]
now,
The bank's liability liquidity reserve will be:
= [tex]Total \ reserves \ held-Deductions[/tex]
= [tex]149.25-7.4625[/tex]
= [tex]141.7875[/tex]
Select the correct answer.
In general, how long does it take to accomplish a long-term goal?
OA.
a few days to a week
OB.
a few weeks to a month
OC.
a few months to a year
OD.
more than a year
Consider two $10,000 face value corporate bonds. Bond A is currently selling for $9,980 and matures in 15 years. The Bond B sells for $9,350 and matures in 3 years. a) Calculate the current yield as a percentage to 2 decimal places for both bonds if both have a coupon rate equal to 5%. Bond A % Bond B % b) Calculate the yield to maturity as a percentage to 2 decimal places for both bonds if both have a coupon rate equal to 5%. Bond A % Bond B % Which current yield is a better approximation of the yield to maturity, A or B
Solution :
Current yield of the Bond if the bonds are selling at a price of $ 9980.
Current yield = annual coupon amount / current selling price
Current yield [tex]$=\frac{10000 \times 5\%}{9980}$[/tex]
[tex]$=\frac{500}{9980}$[/tex]
= 0.0501
= 5.01 %
The current yield of a bond if the bonds are selling at $ 9350
Current yield = annual coupon amount / current selling price
Current yield [tex]$=\frac{10000 \times 5\%}{9350}$[/tex]
[tex]$=\frac{500}{9350}$[/tex]
= 0.0535
= 5.35 %
In a market economy, supply and demand are important because they are direct policy tools used by government agencies to regulate the economy. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. can be used to predict the impact on the economy of various events and policies. All of the above are correct.
Answer:
can be used to predict the impact on the economy of various events and policies.
Explanation:
Market demand curve can be determined by the horizontal summation of the various quantities for which, each buyer or consumer in a market is willing to pay for at different prices.
A market demand curve is used to graphically represent the quantity of goods demanded by all the buyers or consumers at different price points. Thus, the market demand curve is downward sloping due to the fact that as the price of a product increases, the quantity demanded by the consumer decreases.
Demand and supply forms the core of market forces that determines prices and quantity.
In a market economy, supply and demand are important because they can be used to predict the impact on the economy of various events and policies.
Which of the following statements is correct?
A. Stockholders' equity can be described as creditorship claim on total assets.
B. The cost of an asset and its fair value are never the same.
C. The historical cost principle requires that when assets are acquired, they should be recorded at market price.
D. Stockholders' equity can be described as ownership claim on total assets.
E. The historical cost principle requires that when assets are acquired, they should be recorded at appraisal value.
Answer:
d
Explanation:
A stockholder is an investor that purchases shares in a company. A stockholder is regarded as the owner of the company.
According to accounting information :
Stockholders' equity = total assets - Total liabilities.
Stockholders' equity is the claim a shareholder has on a company's assets after total liabilities have been subtracted
The historical cost principle requires assets to be recorded at its historical cost regardless of changes in the value of the asset
Presented below is information for Kingbird Company.
1. Beginning-of-the-year Accounts Receivable balance was $16,600.
2. Net sales (all on account) for the year were $102,400. Kingbird does not offer cash discounts.
3. Collections on accounts receivable during the year were $90,000.
a. Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. SHOW LIST OF ACCOUNTS
b. Compute Kingbird's accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.) Accounts receivable turnover times Days to collect accounts receivable days Use the results to analyze Kingbird's liquidity. The turnover ratio last year was 8.1. This is a trend in liquidity.
Answer:
Kingbird Company
a) Journal Entries:
1. No journal required
2. Debit Accounts Receivable $102,400
Credit Sales Revenue $102,400
To record sales on account.
3. Debit Cash $90,000
Credit Accounts Receivable $90,000
To record the collections on account.
b) Accounts receivable turnover and days:
Accounts receivable turnover = Sales/Average Receivable
= $102,400/22,800
= 4.49
Accounts receivable days = 365/4.49 = 81.29 days
c) The accounts receivable turnover ratio for the current year is 4.49. This is better than last year's 8.1. The current year's ratio shows that liquidity had been improved.
Explanation:
a) Data and Calculations:
Accounts Receivable:
Beginning balance $16,600
Net sales 102,400
Cash collections (90,000)
Ending balance $29,000
Average receivable = ($16,600 + $29,000)/2 = $22,800
We will follow-up the basic perpetuity with a delayed perpetuity. Watch the Chapter 5 Part 2 video for an example of a delayed perpetuity Consider a perpetuity that pays $800 each year forever with the first payment occuring at the end of year 5. The interest rate is 6.2%. I start by calculating the value of the perpetuity (800 / 0.062) and this is $12,903.2258. Where in the timeline does this value belong
Answer:
At the end of year 4 (one year before the first cash flow)
Explanation:
According to the present value of perpetuity concept here we divided the predicted cash flows by the rate of that period by calculating this it provides the present value that is prior to the cash flow now if we want for more years so we should have to discount over that time period
Since in the given situation the starting of the cash flows is from the ending of year 5 therefore the timeline would be at the closing of year 4 i..e one year prior to the first cash flow
Which of the following is an accurate statement about the consequence of nonbinding price ceiling?
a. They prevent the seller from receiving the equilibrium price.
b. They require the seller to advertise the product at the equilibrium price.
c. They create a surplus in the legal market.
d. They do not change the quantity of goods bought or sold in the legal market.
e. They increase the quantity demanded of the good in question.
Answer:
d. They do not change the quantity of goods bought or sold in the legal market.
Explanation:
A price refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.
Price control can be defined as standard restrictions or regulatory conditions that are typically set and enforced by the government of a country.
This ultimately implies that, price controls are used to impose the minimum and maximum prices set by the government, which are to be charged for various goods and services in the market. This minimum price that can be charged such as minimum wage is known as price floor while the maximum price that can be charged such as rent control is known as price ceiling.
A nonbinding price ceiling can be defined as a price that do not have any effect on the price of goods or services in the market.
Hence, an accurate statement about the consequence of nonbinding price ceiling is that they do not change the quantity of goods bought or sold in the legal market.