The spending multiplier equals 10 and the actual equilibrium real gdp is $4 billion below potential real gdp, then other things being equal, to reach the potential real gdp level, autonomous spending needs to increase by $40 billion.
What's the spending multiplierThe spending multiplier refers to the amount by which an increase in autonomous spending (spending not influenced by changes in real GDP) will increase real GDP.
In this case, the spending multiplier is 10. The difference between the actual equilibrium real GDP and potential real GDP is $4 billion.
To reach the potential real GDP level, autonomous spending would need to increase by $40 billion ($4 billion x 10). This increase in spending would lead to an increase in real GDP by $40 billion, bringing it up to the potential level.
Therefore, the answer is that autonomous spending needs to increase by $40 billion.
It is important to note that other factors can affect real GDP, such as changes in government spending or changes in net exports, but in this scenario, it is assumed that other things are equal.
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choose the false statement about commercial auto coverage. a a garage coverage form will cover legal liability from completed operations b the motor carrier coverage form provides coverage for business exposures due to the transportation of goods owned by others for hire and transporting their own property c specified peril coverage pays for damage to an insured vehicle from almost any cause except collision d garagekeepers insurance provides coverage for damage to a customer's car
The false statement about commercial auto coverage is: c) specified peril coverage pays for damage to an insured vehicle from almost any cause except collision.
Specified peril coverage only covers damage to the vehicle caused by specifically named perils, such as fire, theft, or natural disasters, and does not cover damage from any cause except collision.
What does perils mean?
Generally speaking, "perils" relate to dangers, risks, or hazards that could lead to loss, damage, or harm. Here are a few dangers examples:
Natural catastrophes including wildfires, hurricanes, tornadoes, hurricanes, and floods.Accidents such traffic collisions, occupational mishaps, and trip-and-falls.Theft, vandalism, and violence, among other offences.Pandemics, infectious diseases, and exposure to harmful substances are all examples of health risks.Financial hazard types include fraud, insolvency, and market collapses.Pollution, climate change, and habitat degradation are examples of environmental dangers.Dangers associated with technology, including cyberattacks, power outages, and equipment malfunctions.Overall, risks are an inevitable part of life, therefore it's critical to be proactive and well-prepared to lessen their effects.
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what is the best verbal definition of arbitrage?group of answer choiceszero risk, zero net investment, zero returnzero risk, zero net investment, positive returnzero risk, positive net investment, positive returnpositive risk, positive net investment, positive returnpositive risk, zero net investment, positive return
Arbitrage is a financial term that refers to the practice of buying and selling assets in different markets to take advantage of price discrepancies and generate profits with little to no risk.
In simple terms, it is the process of exploiting market inefficiencies by buying an asset in one market where the price is low and selling it in another market where the price is high.
The best verbal definition of arbitrage would be "the practice of buying and selling assets in different markets to generate profits through price discrepancies while minimizing risk".
It is important to note that arbitrage is not always a guaranteed strategy for making money as it requires fast and accurate decision-making, constant monitoring of the markets,
and knowledge of the underlying asset. However, when executed properly, it can provide a positive return on investment with little to no risk.
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gerald wilkins owns a home worth $250,000, a car worth $15,000, various investments worth $600,000 and other personal assets worth $25,000, which is everything he owns. this is considered gerald's .
Gerald Wilkins' estimated net taxable estate is $755,000.
To calculate Gerald Wilkins' estimated net taxable estate, we need to subtract his total liabilities (mortgage and car loan) and the probate and administration costs from his total assets.
Total Assets:
Home worth = $250,000
Car worth = $15,000
Investments worth = $600,000
Other personal assets worth = $25,000
Total Liabilities:
Mortgage owed = $125,000
Car loan owed = $5,000
Probate and administration costs = $5,000
Estimated Net Taxable Estate = (Total Assets - Total Liabilities - Probate and Administration Costs)
Estimated Net Taxable Estate = ($250,000 + $15,000 + $600,000 + $25,000) - ($125,000 + $5,000 + $5,000)
Estimated Net Taxable Estate = $890,000 - $135,000
Estimated Net Taxable Estate = $755,000
Therefore, Gerald Wilkins' estimated net taxable estate is $755,000.
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Most probably, your complete question is this:
Gerald Wilkins owns a home worth $250,000, a car worth $15,000, various investments worth$600,000 and other personal assets worth $25,000. He still owes $125,000 on his mortgage and $5,000 owns car loan. The probate and administration costs of his estate are estimated at $5,000. What is his estimated net taxable estate?
mission company is preparing its annual profit plan. as part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below. (cma based) wall mirrorsspecialty windowsunits produced22020material moves per product line560direct labor hours per product line1,1001,200budgeted material handling costs: $644,000 under a traditional costing system that allocates overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of specialty windows would be: multiple choice$16,800.$14,000.$22,700.$54,900.multiple choice$16,800.$14,000.$22,700.$54,900
Thus, the amount of materials handling costs allocated to one unit of specialty windows using the CMA approach is $29,355.80.
To determine the amount of materials handling costs allocated to one unit of specialty windows, we need to use the CMA (cost management accounting) approach.
First, we need to determine the total number of material moves for specialty windows. We know that there were 20 material moves per product line, and 2 product lines were produced (wall mirrors and specialty windows), so there were 40 total material moves. Since we only want to allocate overhead to specialty windows, we need to determine the proportion of material moves that relate to specialty windows. To do this, we divide the material moves for specialty windows by the total material moves:
Specialty windows material moves = 20
Total material moves = 40
Proportion of material moves for specialty windows = 20/40 = 0.5
Next, we need to determine the total units produced for specialty windows. We know that there were 220 units produced in total, and we want to allocate overhead to specialty windows only. So, we need to determine the proportion of units produced that relate to specialty windows. To do this, we divide the units produced for specialty windows by the total units produced:
Units produced for specialty windows = 20
Total units produced = 220
Proportion of units produced for specialty windows = 20/220 = 0.0909 (rounded to four decimal places)
Now we can use these proportions to allocate the overhead costs. The total budgeted material handling costs were $644,000. To allocate these costs to specialty windows, we first allocate based on the proportion of material moves:
Overhead allocated to specialty windows based on material moves = $644,000 x 0.5 = $322,000
Next, we allocate based on the proportion of units produced:
Overhead allocated to specialty windows based on units produced = $322,000 x 0.0909 = $29,355.80 (rounded to two decimal places)
Therefore, the amount of materials handling costs allocated to one unit of specialty windows using the CMA approach is $29,355.80.
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Jasper makes a $79,000. 90-day. 7% cash loan to Clayborn Co. Jaspers entry to record the transaction should be: a. Debit Notes Receivable for $79,000, credit Cash $79,000. b. Debit Accounts Receivable $79.000, credit Notes Receivable $79000. c. Debit Cash $79.000. credit Notes Receivable for $79.000. d. Debit Notes Payable $79000, credit Accounts Payable $79,000. e. Debit Notes Receivable $79,000. credit sales $79,000.
Entry to the transaction should be option c: Debit Cash $79,000, credit Notes Receivable for $79,000.
This is because Jasper is giving a cash loan to Clayborn Co. and will be receiving the amount back as Notes Receivable in 90 days. The entry records the initial transaction where cash is being given out and Notes Receivable is being received.
Option a. is incorrect as it records the transaction as if Jasper is receiving a Note Receivable instead of giving one.
Option b is incorrect as it records the transaction as if Jasper is selling something on credit to Clayborn Co.
Option d is incorrect as it records the transaction as if Jasper is receiving a Notes Payable instead of giving one.
Option e is incorrect as it records the transaction as a sale, when in fact it is a loan.
Therefore, the entry should be option c: Debit Cash $79,000, credit Notes Receivable for $79,000.
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The total standard cost to produce one unit of product is shown Question 5 options: at the bottom of the balance sheet on the standard cost card at the bottom of the income statement in the Work in Process Inventory account
The total standard cost to produce one unit of a product is shown on the standard cost card.
The standard cost card provides detailed information about the cost components, such as material, labor, and overhead costs, for producing a single unit of a product. It is a detailed document outlining the various costs involved in manufacturing a product.
This cost is not typically shown on the income statement or the balance sheet but rather is used in determining the cost of goods sold and in tracking the costs associated with inventory. However, the total cost of producing a product will ultimately impact both the income statement (through the cost of goods sold) and the balance sheet (through the inventory accounts).
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Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $310,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
If Rita chooses to set up a solo 401(k) plan, she may contribute up to $61,000 as an employer contribution and up to $19,500 as an employee contribution, or up to $26,000 if she is over age 50. If she chooses to set up a SEP IRA plan, she may contribute up to $61,000 as an employer contribution.
As a self-employed taxpayer, Rita may consider setting up a retirement plan to save for her future. The maximum amount that Rita may contribute to the self-employed plan depends on the type of plan she chooses and her net Schedule C income.
One option for Rita is a solo 401(k) plan. For tax year 2022, the maximum contribution limit for a solo 401(k) plan is $61,000, which includes both employee and employer contributions. Since Rita is self-employed, she is considered both an employee and employer, so she may contribute up to 100% of her net Schedule C income, which is $310,000, as an employer contribution, up to the maximum contribution limit of $61,000. She may also make employee contributions up to the maximum of $19,500, or $26,000 if she is over age 50.
Another option for Rita is a SEP IRA plan. For tax year 2022, the maximum contribution limit for a SEP IRA plan is 25% of her net Schedule C income or $61,000, whichever is less. In Rita's case, since her net Schedule C income is $310,000, the maximum amount she may contribute as an employer contribution is $61,000.
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paid $9,000 cash on account. paid $9,000 cash on account. date accounts and explanation debit credit nov. 3 received $5,000 for services rendered to a client
The entry records an increase in cash and a decrease in accounts receivable, reflecting revenue earned from rendering services. Revenue recognition occurs when it is earned, not when cash is received.
The accounting entry to record the transaction of receiving $5,000 for services rendered to a client on November 3 would be as follows:
Debit Cash: $5,000
Credit Accounts Receivable: $5,000
This entry reflects the increase in the cash balance of the business by $5,000 and the decrease in the accounts receivable balance by the same amount. This transaction is classified as a revenue transaction as it represents the earnings of the business from rendering services to the client.
It is important to note that revenue is recognized when it is earned, not when cash is received. Therefore, the receipt of cash for services rendered does not necessarily mean that the revenue has been earned. In some cases, revenue may be recognized at the time of sale or delivery of goods or services, or it may be recognized over a period of time, such as in the case of long-term contracts.
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ANSWER ASAP PLS
Sta Rosa Laguna Plant of Toyota Motors Philippines Inc assembles two types of cars (Vios and Altis). Separate assembly lines are used for each type of car. Classify the following items:
1) D for Direct, I for Indirect cost with respect to the type of car assembled
2) F for Fixed, V for Variable, S for Semi-variable costs with respect to how the total costs of the plant change as the number of cars assembled changes
Classification of costs as Fixed (F), Variable (V), or Semi-variable (S) with respect to how the total costs of the plant change as the number of cars assembled changes.
1) Classification of costs as Direct (D) or Indirect (I) with respect to the type of car assembled:
- Costs specific to the assembly of Vios: D
- Costs specific to the assembly of Altis: D
- Costs related to both Vios and Altis (e.g. plant maintenance, shared equipment): I
2) Classification of costs as Fixed (F), Variable (V), or Semi-variable (S) with respect to how the total costs of the plant change as the number of cars assembled changes:
- Costs that do not change with the number of cars assembled (e.g. rent, insurance): F
- Costs that change proportionally with the number of cars assembled (e.g. raw materials, labor hours per car): V
- Costs that have both fixed and variable components (e.g. utility bills, certain labor costs): S
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In the context of a company's responsibility to the environment, which of the following is the idea behind sustainable development?
a. To be able to wisely choose between two bad
options by judging the losses associated with
each
b. To report unethical and illegal societal activities of
employees to the relevant authorities or the media
c. To raise money by increasing sales of a company's
products so that a significant amount can be
donated to nonprofit organizations
d. To meet the needs of the current generation
without harming the ability of future generations
to meet their needs
Option D. The idea behind sustainable developmentis To meet the needs of the current generation without harming the ability of future generations to meet their needs
What is the The idea behind sustainable developmentThe idea behind sustainable develоpment in thе cоntext оf a compаny's respоnsibility to thе envirоnment is to meet thе nееds оf thе сurrent gеnеratiоn without hаrming thе ability оf futurе gеnеratiоns to meet thеir nееds.
Therefore, thе cоrrect answеr is optiоn d. Sustаinаble develоpment fоcuses оn bаlаncing ecоnomic growth, social develоpment, аnd envirоnmental protectiоn to ensure that futurе gеnеratiоns can also benefit from thе resources аnd оppоrtunities available to thе сurrent gеnеratiоn.
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1. List the ways in which households can earn income (what are they called). What are each of these income types a return to? 3. What is it that makes the labor market special? 4. How to relative fact
There are several ways in which households can earn income, including wages, salaries, rental income, interest income, and profits from businesses or investments. Each of these income types represents a return to a specific factor of production - wages and salaries are a return to labor, rental income is a return to land, interest income is a return to capital, and profits are a return to entrepreneurship.
The labor market is special because it is where the supply and demand for labor meet, determining the wage rate and level of employment. Unlike other markets where goods and services are exchanged, the labor market involves the exchange of human capital, skills, and abilities. Labor market outcomes can have a significant impact on the overall economy, as employment levels and wage rates affect consumer spending, production costs, and economic growth.
Relative to other factors of production, labor is unique because it involves the individual skills, knowledge, and abilities of workers. This means that labor is not a homogeneous resource - each worker has different strengths and weaknesses, education levels, and experiences. The labor market must account for these differences in order to allocate workers to the most efficient uses and ensure that each worker receives a fair wage for their contributions. Overall, the labor market is an essential component of the economy and plays a crucial role in determining income levels and overall economic growth.
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sandhill's t-shirts, inc., has debt claims of $290 (market value) and equity claims of $710 (market value). if the after-tax cost of debt financing is 10 percent and the cost of equity is 16 percent, what is sandhill's weighted average cost of capital?
Sandhill's weighted average cost of capital is 14.26%.
To calculate Sandhill's weighted average cost of capital (WACC), you'll need to consider the market value of debt and equity, as well as their respective costs. Here's the formula and calculation:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity)
First, determine the weights of debt and equity:
Weight of Debt = Market Value of Debt / (Market Value of Debt + Market Value of Equity)
Weight of Debt = $290 / ($290 + $710) = 0.29
Weight of Equity = Market Value of Equity / (Market Value of Debt + Market Value of Equity)
Weight of Equity = $710 / ($290 + $710) = 0.71
Now, plug these weights into the WACC formula:
WACC = (0.29 * 10%) + (0.71 * 16%)
WACC = 2.9% + 11.36%
WACC = 14.26%
The weighted average cost of capital of Sandhill will be 14.26%.
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a non-scholarly source contains information that adresses a geeral audience and typically written by journalist
A non-scholarly source is a type of source that is aimed at a general audience, rather than scholars or academics. It is typically written by a journalist, rather than an academic or researcher.
Non-scholarly sources can include newspapers, magazines, blogs, and websites that are designed to inform, entertain, or persuade readers. These sources often contain a mix of fact and opinion, and may not always be reliable or accurate.
It is important to critically evaluate non-scholarly sources, and consider the credentials and biases of the author, as well as the publication's reputation and editorial standards.
While non-scholarly sources can be a valuable source of information and insights, they should not be relied upon as the sole source of information for academic research or decision-making.
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Suppose you observe that 90–day interest rate across the eurozone is 5%, while the interest rate in the U.S. over the same time period is 3%. Further, the spot rate and the 90–day forward rate on the euro are both $1.25.
You have $500,000 that you wish to use in order to engage in covered interest arbitrage. To start, you exchange your $500,000 for __________. euros, and deposit the funds in a bank in the eurozone. To lock in the exchange rate (for when you convert the euros back to dollars), you __ a)sell or b)buy_________ euros forward at a forward rate of $1.25.
Exchange $500,000 for 400,000 euros.
Sell 400,000 euros forward to lock in the exchange rate of $1.25 per euro.
Suppose you observe that the 90-day interest rate across the eurozone is 5%, while the interest rate in the U.S. over the same time period is 3%. The spot rate and the 90-day forward rate on the euro are both $1.25. You have $500,000 that you wish to use in order to engage in covered interest arbitrage.
To start:
1. Exchange your $500,000 for euros at the spot rate of $1.25. To calculate the number of euros, divide $500,000 by the spot rate:
500,000 / 1.25 = 400,000 euros
So, you exchange your $500,000 for 400,000 euros and deposit the funds in a bank in the eurozone.
2. To lock in the exchange rate (for when you convert the euros back to dollars), you need to sell euros forward at a forward rate of $1.25. This ensures that you can exchange the euros back to dollars at a fixed rate after the 90-day period, regardless of any changes in the exchange rate during that time.
Therefore, you exchange your $500,000 for 400,000 euros and deposit the funds in a bank in the eurozone. To lock in the exchange rate, you sell euros forward at a forward rate of $1.25.
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which of the following accounting codes are considered champions for rules-based standards? (select two) a. international financial reporting standards (ifrs) b. american institute of certified public accountants (aicpa) c. chartered financial institute/analyst association (cfai/cfa) d. the academy of management (aom) code of ethics e. u.s. generally accepted accounting principles (us gaap)
The accounting codes that are considered champions for rules-based standards are: b. American Institute of Certified Public Accountants (AICPA) and e. U.S. Generally Accepted Accounting Principles (US GAAP)
How we get the following accounting codes?Identify the accounting codes that are considered champions for rules-based standards.
Rules-based standards provide a clear set of guidelines and regulations to follow when reporting financial information.
The AICPA and US GAAP are known for their rules-based approach to accounting, which focuses on specific, detailed accounting standards and guidance.
In contrast, other codes such as IFRS and CFAI/CFA use a principles-based approach, which focuses on the underlying principles and objectives of financial reporting rather than detailed rules.
The AOM Code of Ethics, while important for ethical conduct, does not provide accounting standards and therefore is not relevant to this question.
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Characteristics of budgets include: expressed in dollars. typically cover a month, quarter or one year. a focus on the past. formal statement of a company's plans. expressed in nonfinancial terms. typically span 5 to 10 years.
The characteristics of budgets include being expressed in dollars, typically covering a month, quarter, or one year, focusing on the past, serving as a formal statement of a company's plans, and being expressed in nonfinancial terms.
Budgets usually cover short-term periods, such as a month, quarter, or one year. This helps companies set achievable targets and monitor progress regularly. Although they may be based on past trends and data, budgets primarily serve as a formal statement of a company's future plans. By outlining these plans, businesses can ensure that their financial goals align with their strategic objectives.
In addition to financial aspects, budgets can also include nonfinancial terms. These may encompass qualitative factors, such as customer satisfaction, employee morale, or product quality. By incorporating these elements, companies can create a more comprehensive and balanced plan that takes into account both monetary and non-monetary factors. However, budgets typically do not span 5 to 10 years, as this timeframe would make it difficult to create accurate projections and account for unexpected changes in the market or economy.
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what system maintains customer contact information and identifies prospective customers for future sales, using tools such as organizational charts, detailed customer notes, and supplemental sales information?
The system that maintains customer contact information and identifies prospective customers for future sales is called a Customer Relationship Management (CRM) system.
A CRM system is designed to manage a company's interactions with customers and prospects, automate and streamline sales and marketing processes, and improve customer satisfaction and loyalty.
The system uses various tools such as organizational charts, detailed customer notes, and supplemental sales information to provide a comprehensive view of the customer's history and preferences. This allows businesses to better understand their customers and create personalized marketing campaigns, resulting in higher conversion rates and increased customer retention.
In addition to maintaining customer contact information, a CRM system also tracks sales opportunities and helps sales teams prioritize their efforts. By identifying potential customers and their needs, the system enables sales teams to focus on the most promising leads and increase their chances of closing deals. Overall, a CRM system is an essential tool for businesses looking to improve their sales and customer service efforts.
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Abe receives a check from Bea for fixing Bea's car. Bea's bank is Bank B. Abe deposits the check into his bank. Bank A. Select all of the statements that are part of the check clearing process.
• Bank B decreases its reserves at the Federal Reserve Bank by the amount of the check. • Bank B reduces Bea’s checkable deposits by the amount of the check. • Bank A increases its reserves at the Federal Reserve Bank by the amount of the check. • Total reserves in the banking system remain unchanged. • Bank A increases Abe’s checkable deposits by the amount of the check.
The statements that are part of the check-clearing process are:
• Bank B reduces Bea's checkable deposits by the amount of the check.
• Bank A increases Abe's checkable deposits by the amount of the check.
Check clearing is the process of moving cash (or its equivalent) from the bank on which a cheque is drawn to the bank in which it was deposited, usually accompanied by the movement of the check to the paying bank, either in the traditional physical paper form or digitally under a check truncation system. This process is called the clearing cycle and normally results in a credit to the account at the bank of deposit, and an equivalent debit to the account at the bank on which it was drawn, with a corresponding adjustment of accounts of the banks themselves. If there are not enough funds in the account when the check arrived at the issuing bank, the check would be returned as a dishonored check marked as non-sufficient funds.
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1-- Jon spends all of his income on energy drinks (E) regardless of the price and his income. Derive Jon's demand equation for energy drinks, E*(p,Y).2- Jose gets utility from the goods he consumes and also the income he earns. His utility function is given byU(q1,q2) = q1q2YDerive Jose's demand equations. Does the fact that he derives utility directly from income affect his consumption in this case?
Jose may be considering a constant income, therefore one can assume that his living standard income as much as his income. Even though temporary income fluctuations are quite large, this also remains constant and stable.
Earnings, which are typically stated in monetary terms, are the consumption and saving opportunities acquired by an entity within a specific time frame. Profits are difficult to logically define, and different fields may have different definitions a person's gains in an economic experience, for instance, could differ significantly from their earnings.
Haig-Simons earnings, which defines earnings as consumption plus trading in online good worth and is often employed in financial analysis, is a highly important definition of profits. The satisfaction a customer experiences after using a specific commodity or service is known as utility. This behaviour is consistent with a Cobb-Douglas utility function because we are told that Smedley always spends 25% of his income on housing, 10% on clothing, 30% on food, 15% on transportation, and then 20% on recreation, regardless of his income and regardless of costs.
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Which of the following is NOT a basic activity in the revenue and collection cycle for a typical manufacturing company?
a. Purchasing raw materials
b. Billing customers
c. Collecting and depositing cash
d. Receiving and processing customer orders
e. Delivering goods and services
a. Purchasing raw materials is NOT a basic activity in the revenue and collection cycle for a typical manufacturing company. The answer is:
Purchasing raw materials is not part of the revenue and collection cycle. Instead, it belongs to the procurement or purchasing cycle of a manufacturing company. The other options, such as billing customers, collecting and depositing cash, receiving and processing customer orders, and delivering goods and services, are all basic activities within the revenue and collection cycle.
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redit sales and collections were $327,000 and $310,000, respectively, and $1,780 in accounts receivable were written off.
Credit sales refer to the amount of revenue generated by a company through the sale of its goods or services on credit, whereas collections refer to the actual amount of money collected from customers for those credit sales. In this case, the company had credit sales of $327,000 and collections of $310,000, indicating that some customers had not yet paid their outstanding balances.
The fact that $1,780 in accounts receivable were written off suggests that the company had to accept that it would not be able to collect that amount from certain customers. This may be due to a variety of reasons, such as the customer going out of business or simply refusing to pay their debts. Writing off bad debt is a common practice in accounting to reflect the true value of a company's assets and liabilities.
It's worth noting that while a write-off may seem like a negative event, it can actually have positive impacts on a company's financial statements. By removing uncollectible debts from the accounts receivable balance, the company can present a more accurate picture of its financial health. Additionally, the write-off may reduce the amount of taxes owed by the company.
Overall, the fact that the company had credit sales and collections of similar amounts suggests that it is effectively managing its cash flow. While the write-off is a setback, it's important for the company to continue monitoring its accounts receivable and collections processes to minimize the risk of future write-offs.
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When the consumption of a good generates positive externalities, _____.
a. the private demand curve for the good shifts rightward
b. the private demand curve for the good shifts leftward
c. the private demand curve for the good lies below the marginal social benefit curve
d. the private demand curve for the good lies above the marginal social benefit curve
e. the equilibrium quantity of the good determined by the free private market is too high
When the consumption of a good generates positive externalities, the private demand curve for the good lies below the marginal social benefit curve. So, option c. is correct.
To understand this, let's break down the concepts involved:
1. Positive externalities: These are the benefits enjoyed by third parties who do not directly participate in the consumption or production of a good or service. In this case, the positive externalities resulting from the consumption of a good.
2. Private demand curve: This curve represents the relationship between the quantity of a good demanded by consumers and its price, taking into account only the private benefits and costs.
3. Marginal social benefit (MSB) curve: This curve represents the relationship between the quantity of a good consumed and its total benefit to society, which includes both private benefits and the benefits from positive externalities.
Now, when there are positive externalities, the total benefit to society is greater than the private benefit. This means that the MSB curve will be above the private demand curve because it takes into account the additional benefits generated by the externalities. Therefore, the private demand curve lies below the marginal social benefit curve.
So, the correct option is c.
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A comparative balance sheet for Anthro Corp. follows. Net income for 2020 was $25,000, and cash dividends of $10,000 were paid in 2020. No buildings and equipment were sold in 2020 and land was sold at cost.
Please prepare a statement of cash flows for the year using the indirect method to present cash flows from operating activities.
Indirect Method - Preparing a Statement of Cash Flov A comparative balance sheet for Anthro Corp. follows. Ne Comparative Balance Sheet December 31 2019 2020 Assets Cash $20,000 $38,000 Accounts receivable 150,000 170,000 Inventory 200,000 230,000 Land 85,000 70,000 Building and equipment 175,000 200,000 Accumulated depreciation (65,000) (80,000) Total assets $565,000 $628,000 Liabilities and Stockholders' Equity Accounts payable $75,000 $90,000 Income taxes payable 42,000 30,000 Notes payable (long-term) 80,000 100,000 Preferred stock 75,000 75,000 Common stock (no-par) 175,000 200,000 Retained earnings 118,000 133,000 Total liabilities and stockholders' equity $565,000 $628,000 Prepare a statement of cash flows for the year ended Dece 55°F Mostly sunny Prepare a statement of cash flows for the year ended Decemb $ 0 0 0 Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments: Depreciation expense Increase in accounts receivable Increase in inventory Increase in accounts payable Decrease in income taxes payable Net cash provided (used) by operating activities Cash flows from investing activities Sale of land Purchase of building and equipment Net cash provided (used) by investing activities Cash flows from financing activities Issuance on long-term debt issuance Issuance of common stock Cash paid for dividends Net cash provided (used) by financing activities Net increase in cash during 2020 Cash, January 1, 2020 Cash, December 31, 2020 0 0 0 0 0 0 0 0 0 0 $ 0 Previous Save Answers
Statement of Cash Flows For Year Ended December 31, 2020 .Cash flows from operating activities: Net income: $25,000
Adjustments:
Depreciation expense: ($80,000 - $65,000) = $15,000
Increase in accounts receivable: ($170,000 - $150,000) = -$20,000
Increase in inventory: ($230,000 - $200,000) = -$30,000
Increase in accounts payable: ($90,000 - $75,000) = $15,000
Decrease in income taxes payable: ($30,000 - $42,000) = -$12,000
Net cash provided (used) by operating activities: $25,000 + $15,000 - $20,000 - $30,000 + $15,000 - $12,000 = -$7,000
Cash flows from investing activities:
Sale of land: $0 (sold at cost)
Purchase of building and equipment: ($200,000 - $175,000) = -$25,000
Net cash provided (used) by investing activities: -$25,000
Cash flows from financing activities:
Issuance of long-term debt: ($100,000 - $80,000) = $20,000
Issuance of common stock: ($200,000 - $175,000) = $25,000
Cash paid for dividends: -$10,000
Net cash provided (used) by financing activities: $20,000 + $25,000 - $10,000 = $35,000
Net increase in cash during 2020: -$7,000 - $25,000 + $35,000 = $3,000
Cash, January 1, 2020: $20,000
Cash, December 31, 2020: $20,000 + $3,000 = $23,000
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suppose bev's bags makes large and small handbags. bev rents an industrial space where she keeps the company's fabric, industrial sewing machine, measuring board, cutting shears, extra needles, thread, buttons, and labels. bev can produce three bags an hour, regardless of the size of the bag. if bev were to produce no bags, which of the following would be considered a variable cost?
a.The rent Bev pays b. The fabric c.The sewing thread d.None of these are fixed costs.
"None of these are fixed costs."
Fixed costs are expenses that do not change with the level of production, such as rent or equipment.
In this scenario, since Bev is not producing any bags, there are no variable costs either, which are expenses that do change with the level of production, such as fabric, sewing thread, or labor.
Therefore, all the items listed as being stored in Bev's rented industrial space, including the sewing thread, are considered fixed costs because they are necessary for the production process and do not vary with the level of production.
The given scenario involves Bev's Bags, a company that produces large and small handbags. Bev's fixed costs include rent for the industrial space, as well as expenses for equipment like the sewing machine, measuring board, cutting shears, needles, and labels. In this context, fixed costs remain constant regardless of the production volume.
Variable costs, on the other hand, change based on the number of handbags produced. Among the options provided, the sewing thread (option c) would be considered a variable cost. This is because the amount of sewing thread needed depends on the number of handbags being produced. The more handbags Bev makes, the more sewing thread she will require.
Fabric can also be considered a variable cost, as the quantity needed varies with the number of handbags produced. However, since the question asks specifically for the variable cost among the given options, the sewing thread.
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Consider a worker who faces a trade off between wages on the vertical axis and job safety on the horizontal axis. Use indifference and isoprofit curves to assess the compensating wage differentials that might exist for two employees with differing levels of risk aversion as it relates to job safety.Provide clear responses to the following questions. create the graphs. They need to be correctly labeled and you must show your work to receive full credit.
The compensating wage differentials for two employees with differing levels of risk aversion can be analyzed using indifference curves and isoprofit curves on a graph with wages on the vertical axis and job safety on the horizontal axis.
1. Begin by drawing two axes: the vertical axis represents wages, and the horizontal axis represents job safety.
2. Draw two indifference curves for each employee, representing their preferences for different combinations of wages and job safety. The more risk-averse employee will have steeper indifference curves, while the less risk-averse employee will have flatter indifference curves.
3. Draw the isoprofit curves, which represent the combinations of wages and job safety that result in the same profit for the firm.
4. Identify the tangency points where the indifference curves intersect the isoprofit curves for each employee.
5. Compare the wages at these tangency points to assess the compensating wage differentials. The more risk-averse employee will require a higher wage to accept a given level of job safety compared to the less risk-averse employee.
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A hedge ratio can be computed as
A) profit derived from one futures position for a given change in the exchange rate divided by the change in value of the unprotected position for the same exchange rate.
B) the change in value of the unprotected position for a given change in the exchange rate divided by the profit . derived from one futures position for the same exchange rate. img
C) profit derived from one futures position for a given change in the exchange rate plus the change in value of the unprotected position for the same exchange rate.
D) the change in value of the unprotected position for a given change in the exchange rate plus by the profit derived from one futures position for the same exchange rate.
The correct answer is A) profit derived from one futures position for a given change in the exchange rate divided by the change in value of the unprotected position for the same exchange rate.
This ratio helps a business determine the appropriate number of futures contracts needed to hedge against currency risk.
What is the definition of a business simple?
An innovative company or organization that engages in professional activities is referred to as a business. They might be commercial, industrial, or something else else. Businesses that are for profit aim to make a profit, whereas nonprofit organisations work to further charitable causes.
Why is a company successful?
Personal fulfilment and freedom to be creative. You'll be able to work in a profession that you actually appreciate as a business owner. Your expertise and skills will be put to good use, and you'll have fun implementing your ideas, interacting with customers, and watching your business expand.
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b. consider the effect of a subsidy. suppose the european union decides to subsidize the european producer, airbus, with a check for $25 million if it enters the market. revise the payoff matrix to account for this subsidy.
In the revised matrix, we've added the $25 million subsidy to Airbus' payoffs in the two scenarios where it enters the market. This will affect the decision-making process of both Airbus and Boeing when determining their market strategies.
the payoff matrix considering the subsidy provided by the European Union to Airbus. To do this, we need to add the $25 million subsidy to Airbus' payoff when it enters the market.
Original Payoff Matrix:
| Boeing Enters | Boeing Exits
------------------------------------------
Airbus Enters | (A1, B1) | (A2, B2)
------------------------------------------
Airbus Exits | (A3, B3) | (A4, B4)
Revised Payoff Matrix (with subsidy):
| Boeing Enters | Boeing Exits
------------------------------------------
Airbus Enters | (A1+25, B1) | (A2+25, B2)
------------------------------------------
Airbus Exits | (A3, B3) | (A4, B4)
In the revised matrix, we've added the $25 million subsidy to Airbus' payoffs in the two scenarios where it enters the market. This will affect the decision-making process of both Airbus and Boeing when determining their market strategies.
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Activity-Based Customer-Driven Costs
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter:
JIT
Distributors Non-JIT
Distributors
Sales orders 1,100 110
Sales calls 70 70
Service calls 350 175
Average order size 750 7,500
Manufacturing cost/unit $125 $125
Customer costs:
Processing sales orders $3,330,000 Selling goods 1,120,000 Servicing goods 1,050,000 Total $5,500,000 Required:
1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar.
JIT Non-JIT
Sales (in units) fill in the blank 1 fill in the blank 2 Sales $fill in the blank 3 $fill in the blank 4 Allocation $fill in the blank 5 $fill in the blank 6 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. Round the interim calculations to the nearest dollar.
JIT Non-JIT
Ordering costs $fill in the blank 7 $fill in the blank 8 Selling costs $fill in the blank 9 $fill in the blank 10 Service costs $fill in the blank 11 $fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 For non JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent.
$fill in the blank 15 per unit
3. Assume that the JIT distributors are simply imposing the frequent orders on Stillwater Designs. No formal discussion has taken place between JIT customers and Stillwater Designs regarding the supply of goods on a JIT basis. The sales pattern has evolved over time. As an independent consultant, what would you suggest to Stillwater Designs' management?
It sounds like the JIT buyers are switching their inventory carrying costs to Stillwater Designs without any significant benefit to Stillwater Designs. Stillwater Designs needs to prices to reflect the additional demands on customer support activities. Furthermore, additional may be needed to reflect the increased number of setups, purchases, and so on, that are likely occurring inside the plant. Stillwater Designs should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as contracts. The benefits of contracting may offset most or all of the increased costs from the additional demands made on other activities.
Answer:
jit has made over 1750000 in the past year
Explanation:
she divided it by two in 6 months
Ernst is an accountant. Until 30 June 2019, he was in sole practice and employed three accountants. Ernst always recorded his practice's income on a cash basis. On 1 July 2019, Ernst formed a partnership with two of his former employees. The partnership accounted for its income on an accruals basis. In June 2020, Ernst received $11,000 in outstanding fees relating to services that he had provided to one of his client's during 2018. Can Ernst rely on Henderson v FC of T70 ATC 4016 to argue that he should not be assessed on this amount because he changed his basis of accounting?
No, Therefore, Ernst will likely be required to include the $11,000 in his assessable income for the 2020 income year.
Ernst cannot rely on Henderson v FC of T70 ATC 4016 to argue that he should not be assessed on the $11,000 in outstanding fees received in June 2020. The Henderson case concerned a change from the accruals basis of accounting to the cash basis of accounting, whereas in this case, Ernst changed from the cash basis to the accruals basis. Additionally, the Henderson case is no longer considered good law and has been largely superseded by subsequent legislation and court decisions. Therefore, Ernst will likely be required to include the $11,000 in his assessable income for the 2020 income year.
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chandra owns a paddleboard company. if she invests in job-specific skills for her employees, she and . group of answer choices hires only those who already have the needed skills; pays them a high salary to foster loyalty hires separately for each labor task; focuses her hiring on specific skills needed trains workers as needed; thereby ensures that all have general skills provides training internally; does not impart skills that her workers could use to find jobs elsewhere
If Chandra invests in job-specific skills for her employees, she can either hire those who already have the needed skills or provide training for them as needed.
Hiring separately for each labor task and focusing on specific skills needed can be effective, but it may not foster a sense of loyalty among employees. However, providing internal training can ensure that all employees have general skills, which can benefit the company as a whole. It is important for Chandra to strike a balance between providing training and not imparting skills that her workers could use to find jobs elsewhere. Ultimately, the goal should be to improve the skills and knowledge of her employees while also creating a positive and loyal work environment.By doing this, she ensures that all employees have the required skills for their tasks and fosters loyalty by offering them a high salary. This approach allows her to hire separately for each labor task and maintain a well-trained workforce.
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