Answer:
When ASI Inc. declared a dividend of $20,000,000, its market value increased from $8 ... Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s ... CEO of JustFixIt Inc., a firm that merges technology with commercial hardware. She has been struggling with the decision to allocate her resources for the ...
Explanation:
Transacion Transaction Amount
number (Year 2017)
1 Interest paid by a Country B’s corporation on a
bond owned by a Country A’s bank $1’000
2 Interest paid by Country A’s government on a treasury
bills owned by Country C’s government $2’000
3 Country A imports of coffee from Country B $3’000
4 Country A’s citizen donation to a Non-Governmental-
Organization located in Country A $4’000
5 Country A’s sale of Country C’s government bonds $5’000
6 Country B’s export of raw materials to Country C $6’000
Which transactions belong to Country A's current accounts?
a. 3,4, and 5.
b. 3 and 5.
c. 1,2, 3, 4, 5.
d. 1,2,3.
Answer:
d. 1,2,3
Explanation:
Current assets or liability is any transaction which provides benefit or is an obligation for one year. There are transaction related to interest expense and interest receivable in Country A. These transactions are assumed to provide benefit for one year. The import is also considered and incorporated in current account because it will provide monetary value for less than a year.
The purposes of managerial accounting are to provide useful information to aid in:____.a. reviewing past activities.b. determining costs of products and services.c. determining costs of employee wages and salaries.d. comparing actual to planned results.
Answer:
The purposes of managerial accounting are to provide useful information to aid in:____.
d. comparing actual to planned results.
Explanation:
Managerial accounting identifies, measures, analyzes, and communicates financial information to help management achieve organizational goals. It provides data for planning, organizing, directing, and controlling an organization. In addition to identifying past information trends, it is able to make future predictions that aid management decision-making.
A civil engineer who owns his own design/build/operate company purchased a small crane 3 years ago at a cost of $65,000. At that time, it was expected to be used for 10 years and then traded in for its salvage value of $10,000. Due to increased construction activities, the company would prefer to trade for a new, larger crane now, which will cost $80,000. The company estimates that the old crane can be used, if necessary, for another 3 years, at which time it would have a $18,000 estimated market value. Its current market value is estimated to be $31,000, and if it is used for another 3 years, it will have M&O costs (exclusive of operator costs) of $21,000 per year. Determine the values of P, n, S and AOC that should be used for the existing crane in a replacement analysis.
a. The value of P is $_________
b. The value of n is_________
c. The value of S is $__________
d. The AOC value is $ __________per year.
Answer and Explanation:
The computation is shown below:
a. The value of P is $31,000 i.e. equivalent to the estimated value of the current market value
b. The value of n is 3 years
c, The value of S is $18,000 i.e. equivalent to the estimated value of the market
d. The AOC value is $21,000 per year i.e. equivalent to the M&O cost
In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1 Pacifica pound was equal to 1 Atlantica mark. In 2003, the price level in Pacifica had risen to 280 and the price level in Atlantica had risen to 360. a. According to PPP, what should the pound-mark exchange rate be in 2003
Answer: 0.78 pound mark exchange rate
Explanation:
The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.
According to PPP, the pound-mark exchange rate in 2003 will be calculated as:
= 280/360
= 0.78
Ontario has provided the following year-end balances: Cash, $24,000 Patents, $7,900 Accounts receivable, $9,100 Property, plant, and equipment, $98,900 Prepaid insurance, $4,600 Accumulated depreciation, $20,000 Inventory, $44,000 Retained earnings, 15,500 Trademarks, $13,600 Accounts payable, $8,000 Goodwill, $10,000 How much are Ontario's net noncurrent assets
Answer:
$110,400
Explanation:
The computation of the net non-current assets is shown below:
= Patent + Property, plant, and equipment - accumulated depreciation + trade marks + goodwill
= $7,900 + $98,900 - $20,000 + $13,600 + $10,000
= $110,400
You are comparing replacing the current lab, which has a cost function of 400,000 + 15*Volume, with an automated lab that has a cost function of 500,000 + 10*Volume. Doing so would reduce the error rate from 1.5 percent to 1 percent. Your volume is expected to be 45,000 tests per year.
a. You should keep the current lab because its fixed costs are smaller.
b. You should adopt the automated lab because its total costs and error rate are smaller.
c. You should keep the current lab because its total costs and error rate are about the same.
d. None of the above
Answer: b. You should adopt the automated lab because its total costs and error rate are smaller.
Explanation:
You should adopt the lab that gives the lowest cost and this is the automated lab because it will have a lower cost due to its lower error rate.
Cost with Automated lab = 500,000 + 10 * 45,000
= $950,000
Cost with current lab = 400,000 + 15 * 45,000
= $1,075,000
Automated lab has a lower cost for the expected volume so should be adopted.
Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $144 Variable Sales and Administration Expenses $5 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.
Answer:
Appliance Apps
Income statement under the absorption method.
Sales $2,880,000
Less Cost of Sales
Beginning Inventory 0
Add Cost of Goods Manufactured $1,927,500
Less Ending Inventory ($385,500) ($1,542,000)
Gross Profit $1,338,800
Less Expenses
Variable Sales and Administration Expenses $100,000
Fixed Sales and Administration Expenses $975,000 ($1,075,000)
Net Income $263,000
Explanation:
Units in Ending Inventory
Beginning Inventory 0
Add Units Produced 25,000
Available for Sale 25,000
Less Units Sold 20,000
Ending Inventory 5,000
Absorption Cost calculations
Product Cost = $77.10
Cost of Goods Manufactured = $1,927,500
Ending Inventory = $385,500
On September 1, 2020, Coronado Industries issued a note payable to Fidelity Bank in the amount of $2730000, bearing interest at 12%, and payable in three equal annual principal payments of $910000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Coronado should record accrued interest payable of
Answer:
$327,600
Explanation:
Time value of Money techniques
We use the borrowing rate instead of the Prime rate to find the accrued interest payable.
PV = $2,730,000
i = 12 %
N = 3
PMT = - $910,000
P/yr = 1
FV = $0
Using the Financial calculator amortization function, interest will be $327,600
therefore,
At December 31, 2021, Coronado should record accrued interest payable of $327,600.
Ordinary simple interest brings increased revenue to the lender. The general practice
in the United States and in international business transactions is to use ordinary simple
interest; it is employed throughout this Outline, unless specified otherwise.
SOLVED PROBLEMS
3.1 Find (a) the ordinary and (b) the exact simple interest, on a 60-day loan of $1500
at 14%
We have P = 1500 and r = .0145.
Answer:
Exact = $34.5
Ordinary = $35
Explanation:
Given that :
Principal, P = $1500
Interest rate = 14% = 0.14
Number of days = 60
For exact :
Exact simple interest uses 365 days :
Simple interest = principal * rate * time
Simple interest = $1500 * 0.14 * 60 / 365 = 34.520547 = $34.5
For ordinary simple interest :
Simple interest = principal * rate * time
Simple interest = $1500 * 0.14 * 60 / 360 = $35
For a $150,000 mortgage, with interest rate 5,5%, paid over 15 years, the monthly payment is $1,225,63. After 2 monthly
payments, what is the balance of the loan?
Round to the nearest cent. Do not include the dollar sign or commas in the answer box.
Optimization is defined as Group of answer choices a trade-off between equity and efficiency. an interchange of giving and receiving in social relationships. a lack of integrity, incomplete disclosure, and an unwillingness to tell the truth. how wealth or income is distributed between employees within a company. the quality of being just, equitable, and impartial.
Answer:
a trade-off between equity and efficiency.
Explanation:
Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine hours and the Deluxe model requires 2 machine hours. The company predicted it would produce 1,100 units of the Standard Model and 770 units of the Deluxe Model during July. The company uses units of input (machine hours) to budget utility costs. The utility rate per machine hour is $0.35. During July, the company produced 1200 units of the Standard model and 850 units of the Deluxe model and used 3400 machine hours. What is the utilities flexible budget for July
Answer:
Beech Manufacturing
The utilities flexible budget for July is:
= $1,225
Explanation:
a) Data and Calculations:
Utility rate per machine hour = $0.35
Standard Deluxe Total
Predicted production 1,100 770 1,870
Expected machine hours 1,650 3,080 4,730
Units produced 1,200 850 2,050
Standard machine hour/unit 1.5 2
Budgeted machine hours
(flexible budget) 1,800 1,700 3,500
Actual machine hours used 3,400
Utilities Static Budget = $1,655.50 (4,730 * $0.35)
Utilities Flexible Budget = $1,225 (3,500 * $0.35)
Utilities Actual Budget = $1,190 (3,400 * $0.35)
Carefully examine the example problem statement and select which criteria listed below have been met.
Cryptocurrency is one of the most profitable possible investments in the marketplace today, but most investors have no idea how to take advantage of this opportunity. By creating an investment opportunity based on cryptocurrency investments, we intend to bring investors a simple, new option with extremely high potential returns. As part of proposing a solution to our problem, we need to determine why the time is now to offer this investment and why investors should make this investment with us.
Criteria 1: The problem is well defined (short and precise, no more than 200 words)
Criteria 2: The magnitude or impact of the problem is clear
Criteria 3: The following question has been answered - Who is it affecting (key stakeholders)?
Criteria 4: The following question has been answered - How is it affecting the stakeholder(s)?
Criteria 5: The following question has been answered – What kind of solution is the client looking for?
Criteria 6: This can be solved by a team of 5 MBA students in 14 weeks
Answer:
Criteria 2: The magnitude or impact of the problem is clear.
Explanation:
The problem is well defined in the statement given above. Cryptocurrency is one of the latest investment opportunity for the investors. It is a digital asset which is traded online with different investors. It is used to trade online where physical transfer of cash takes much time or is not possible at all. The magnitude and impact of cryptocurrency is well defined.
Select the statement that best describes the recommended approach for developing team goals. The highest performing team member develops goals for the team, which the team leader then approves. Individual team members should contribute to and have input over the common team goals. The team leader should determine all goals independently for efficiency, and then share the goals with the team for approval. Long term team goals should be developed by members of the highest level of organizational leadership, while short term goals are usually developed by lower level leaders.
Answer:
Individual team members should contribute to and have input over the common team goals.
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
Hence, the statement that best describes the recommended approach for developing team goals is that individual team members should contribute to and have input over the common team goals, so as to ensure they are all invested in the set goals.
Team goals shouldn't be created at the organizational level but instead it should be at the team level while being approved by the team leader.
In conclusion, team goals shouldn't be developed by any single team member.
Suppose that a candy maker owns a building and is renting part of the building's space to a library. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $300/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $225/month. Given this situation, can the library find a private solution with the candy maker that will make both better off
Answer:
The best option is to opt for the new technology which eliminates noise for $225/month.
Explanation:
The candy maker will go for the cheapest available solution for the noise. The new space rent for the library is $300 while the new equipment that eliminates the noise is $225. The best option is the one which lowest cost. The candy maker should opt to buy the new equipment.
Suppose the economy of the large country of Hendrix is currently experiencing economic growth and has a trade deficit. Consider the possible effects of this economic growth on the trade balance and place them in the appropriate category. Match the followings.
a. Likely to occur during economic growth and increase the trade deficit.
b. Likely to occur during economic growth and decrease the trade deficit.
c. Not likely to occur during economic growth
1. [imports decrease]
2. [domestic private investment increases]
3. [government borrowing decreases]
4. [government borrowing increases]
5. [private savings decrease]
6. [domestic private investment decreases]
7. [private savings increase]
8. [imports increase]
Answer:
Likely to occur during economic growth and increase the trade deficit.
1. Domestic private investment increases
2. Imports increase
When there is a period of economic growth, people generally have more income in the economy. Their consumption will increase and they will demand more foreign goods as well as domestic. This will lead to imports rising.
Likely to occur during economic growth and decrease the trade deficit.
1. Private saving increase.
2. Government borrowing decrease
With people earning more income, they will be able to save more of that income and because they are not buying with those savings, trade deficit drops.
The government would also not have to borrow as much to prop up the economy as the economy is also doing well. This means less need for foreign funds so a lower trade deficit ensues.
Not likely to occur during economic growth.
1. Imports decrease.
2. Government borrowing increases.
When there is economic growth, it is unusual to see that imports are decreasing.
Government would also not have to borrow as much as the economy is doing well on its own and does not need the government to pump money into it.
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.
Reqired:
What is the total opportunity cost (implicit plus explicit costs) of the day that Farmer Ziva spent in the field planting lettuce?
Answer: $380
Explanation:
Implicit costs are the opportunity costs or rather the benefits foregone by picking the current alternative.
For Ziva this is:
= 25 * 10
= $250 she would have made doing home organization
Explicit cost is the expense incurred:
= $130 worth of seed
Total opportunity cost = 250 + 130
= $380
Noncash investing and financing activities may be disclosed in: Multiple Choice A note in the financial statements or a schedule attached to the statement of cash flows. The operating activities section of the statement of cash flows. The investing activities section of the statement of cash flows. The financing activities section of the statement of cash flows. The reconciliation of cash balance section.
Answer:
(A note in the financial statements or a schedule attached to the statement of cash flows.
Explanation:
Noncash investing and financing transactions do appear as a separate schedule on the statement of cash flows. They are are notable investing and financing activities that do not affect cash directly. The IFRS and US GAAP mandates companies to disclose all notable or significant non-cash investing and financing activities either at the bottom of the statement of cash flows usually in a form of a footnote or in the notes to the financial statements.
Noncash investing and financing activities may be disclosed in "a note in the financial statements or a schedule attached to the statement of cash flows". The correct option is A.
Noncash investing and financing activities refer to transactions that do not involve the direct use or receipt of cash but have significant financial implications for a company.
This statement of cash flows itself typically segregates cash flow information into three sections: operating activities, investing activities and financing activities.
While the noncash activities are not part of the operating, investing or financing activities sections, they are important to provide a comprehensive view of a company's financial health.
It can be included in a separate note or schedule to ensure transparency and proper understanding by stakeholders.
Therefore, the correct option is A.
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7200 shares of treasury stock of Coronado, Inc., previously acquired at $13 per share, are sold at $19 per share. The entry to record this transaction will include a debit to Treasury Stock for $93600. credit to Paid-In Capital from Treasury Stock for $43200. credit to Treasury Stock for $136800. debit to Paid-In Capital from Treasury Stock for $43200.
Answer:
Credit to Paid-In Capital from Treasury Stock for $43,200
Explanation:
Based on the information given The entry to record this transaction will include a Credit to Paid-In Capital from Treasury Stock for $43,200 calculated using this formula
Credit to paid-in capital treasury stock=[Number of treasury shares sold × (Selling price of treasury stock - Cost of treasury stock) ]
Let plug in the formula
Credit to paid-in capital treasury stock=[7,200*($19 per share-$13 per share)]
Credit to paid-in capital treasury stock=7,200*$6
Credit to paid-in capital treasury stock=$43,200
The following information is available for Trinkle Company for the month of June: The unadjusted balance per the bank statement on June 30 was $56,084. Deposits in transit on June 30 were $2,655. A debit memo was included with the bank statement for a service charge of $22. A $4,418 check written in June had not been paid by the bank. The bank statement included a $800 credit memo for the collection of a note. The principal of the note was $775, and the interest collected amounted to $25. Required Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Answer:
$54,321
Explanation:
Prepare a Bank Reconciliation statement to determine the true cash balance as of June 30.
Bank Reconciliation statement as at June 30
Balance as per Bank Statement $56,084
Add Outstanding Lodgments $2,655
Less Unpresented Checks ($4,418)
Balance as per Cash Book $54,321
Conclusion
The true cash balance as of June 30 is $54,321.
For each of the situations described, determine whether the firms involved are part of a cartel or are simply colluding. a. Landscaping company owners in a county hold an annual meeting at a hotel. There, owners make contact with industry leaders, share cost-saving ideas, and set minimum prices for services in the coming year. Owners who set prices below these minimums are not invited to next year's meeting. Landscaping company owners who attend the meeting have formed a cartel. are engaged in collusion but are not part of a cartel. are acting competitively. b. Most hot dog carts in a city sell hot dogs for $3.00 each. Each stand makes comparable products, but each is independently owned and operated. The marginal cost of selling hot dogs on the street is around $1.00, but owners have maintained the $3.00 price point for several years. The cart owners are not in regular contact. Hot dog vendors in this city O are acting competitively since they cannot change the going price of hot dogs. O are colluding with one another but not as part of a cartel. have formed a cartel. c. Three friends start a bakery in the east side of a city. There is a higher demand for baked goods on the west side of the city, but the bakery's owners refrain from expanding there due the large number of well-established bakeries already there The east side bakery owners are c. Three friends start a bakery in the east side of a city. There is a higher demand for baked goods on the west side of the city, but the bakery's owners refrain from expanding there due the large number of well-established bakeries already there. The east side bakery owners are O colluding with the well-established bakeries on the west side of the city. O acting competitively by avoiding a poor business decision. responding to cartel pressure to stay in their own territory. d. A city has two major nut vending companies. L.M. Nutz operates roasted nut carts on the north side of the city, while Go Go Nuts operates carts on the south side of the city. Both companies operate at high margins and have a robust distribution infrastructure that would allow them to operate city wide, but each company operates exclusively on its end of town. L.M. Nutz and Go Go Nuts O collude with one another to maintain market power in their respective areas are acting competitively, entering the other company's market will likely start an unprofitable price war. have formed a roasted nut cartel.
Answer:
a. Landscaping company owners who attend the meeting have formed a cartel.
b. Hot dog vendors in this city are colluding with one another but not as part of a cartel.
c. The east side bakery owners are acting competitively by avoiding a poor business decision.
d. L.M. Nutz and Go Go Nuts are acting competitively, entering the other company's market will likely start an unprofitable price war.
Explanation:
Competitive Behaviors:
Cartel: A cartel is an organization of many independent suppliers who agree to set minimum prices for their products and services for the purpose of reducing competition.
Collusion occurs when some organizations stick to some informally-established prices for their products and services without actually formalizing their agreements, unlike a cartel.
Competition enable organizations to outperform one another with low prices and other competitive measures.
On May 9, 2018, Calvin acquired 800 shares of stock in Hobbes Corporation, a new startup company, for $81,100. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2020, Calvin sold all of his Hobbes stock for $8,110. Assume that Calvin is single, determine his tax consequences as a result of this sale. If an amount is zero, enter "0". As a result of the sale, Calvin has: Ordinary loss: Short-term capital loss: Long-term capital loss:
Answer:
Ordinary loss = $50,000
Short-term capital loss = $0
Long-term capital loss = $22,990
Explanation:
a. Computation of total loss
Total loss = Acquisition cost - Sales proceeds = $81,100 - $8,110 = $72,990
b. Determination of ordinary loss
Ordinary loss = $50,000
This is because for a single, ordinary loss is limited to $50,000 for stock classified as 1244.
c. Determination of short-term capital loss
Short-term capital loss = $0
Short-term capital loss is $0 because the share was held for more than one year before it was resold.
d. Computation of long-term capital loss
Long-term capital loss = Total loss - Ordinary loss = $72,990 - $50,000 = $22,990
Given Table 12-6 below, fill in the values for saving. Assume taxes = $800.
Table 12-6
National Income
$11,400
11,800
12,200
12,600
Consumption
$7,500
7,800
8,100
8,400
What are the savings .
Answer:
Savings = National Income - Consumption - Taxes
Explanation:
Savings are the part of income that is not spent or paid in taxes. So it can be calculated by subtraction consumption from the national income.
National Income (Y) = C+ T + S
Therefore,
S= Y - C - T
That is the part of income that is not spent or paid in taxes is called savings.
National Income Consumption Taxes Savings
$11,400 $7,500 $800 $3,100
$11,800 $7,800 $800 $3,200
$12,200 $8,100 $800 $3,300
$12,600 $8,400 $800 $3,400
On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50,000, with the first payment due at lease signing (January 1, Year 1), and at each January 1 from Year 2 to Year 5. At the end of the lease term, the equipment will be returned to the lessor and is expected to have a residual value of $30,000. The estimated useful life of the equipment is six years. The interest rate in the financing arrangement is 6%. The cost to Lease Corp of manufacturing the equipment is $150,000. The journal entry for the Lessor on January 1, Year 1 will include __________-
Answer:
Cash (Dr.) $50,000
Lease Receivable (Cr.) $50,000
Explanation:
Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.
At December 31, 2021, MedX Corporation had outstanding 200,000 shares of common stock. Also outstanding were 120,000 shares of preferred stock convertible into 64,000 common shares and $1,800,000 of 10% bonds convertible into 27,000 common shares. MedX's net income for the year ended December 31, 2021, is $1,040,000. The income tax rate is 25%. MedX paid dividends of $2 per share on its preferred stock during 2021. Required: Compute basic and diluted earnings per share for the year ended December 31, 2021, considering possible antidilutive effects
Answer: basic earning per share = $4.00
Diluted Earning per share = $4.04 per share
Explanation:
Based on the information given in the question, the basic and diluted earnings per share for the year ended December 31, 2021, considering possible antidilutive effects will be calculated as:
The Basic earnings per share will be calculated as:
M= (Net income - preferred dividend) / Outstanding common stock
= ($1040000 - ($120000 × 2)) / 200000
= ($1,040,000 × $240,000) / 200,000
= $800000 ) 200000
= $4.00 per share
The weighted average outstanding share for the diluted will be:
= 200,000 + 64000 + 27000
= 291,000 shares
Then, the diluted earnings per share will be:
= (1040000 + 1800000 × 10% × 75%)/291000
= $4.04 per share
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $131 Units in beginning inventory 50 Units produced 2,110 Units sold 1,110 Units in ending inventory 1,050 Variable costs per unit: Direct materials $ 45 Direct labor $ 33 Variable manufacturing overhead $ 9 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $18,990 Fixed selling and administrative expense $22,200 What is the total period cost for the month under variable costing
Answer:
Period costs= $48,960
Explanation:
Giving the following information:
Units sold 1,110
Variable selling and administrative expense $ 7
Fixed manufacturing overhead $18,990
Fixed selling and administrative expense $22,200
Under the variable costing method, the period costs include the fixed manufacturing overhead, selling, and administrative costs both fixed and variable.
Period costs= (7*1,110) + 18,990 + 22,200
Period costs= $48,960
On January 31, 2020, Astrid Corp. purchased 5,000 shares of Sienna Co. common stock for $15 a share. Astrid accounts for the investment at fair value with adjustments to fair value recorded in net income. On March 15, 2020, Astrid Corp. declared a property dividend of 3,000 shares of Sienna Co. common stock, to be distributed on March 31, 2020. The shares of Sienna Co. were selling at $18 per share on March 15, 2020. The investment has not been adjusted to fair value since its purchase date. On the date of declaration of the property dividend, the Astrid Corp. would:
a. Recognize a liability account of $45,000.
b. Recognize a decrease in assets of $45,000.
c. Recognize an increase in net income of $9,000.
d. Recognize a liability account of $9,000.
Answer:
The correct option is c. Recognize an increase in net income of $9,000.
Explanation:
This can be determined as follows:
Common stock price per share on January 31, 2020 = $15
Common stock price per share on March 31, 2020 = $18
Fair value adjustment per share on March 31, 2020 = Common stock price per share on March 31, 2020 - Common stock price per share on January 31, 2020 = $18 - $15 = $3 gain
Fair value adjustment of declared a property dividend on March 31, 2020 = Number of shares declared as a property dividend on March 31, 2020 * Fair value adjustment per share on March 31, 2020 = $3,000 * $3 = $9,000 gain
Therefore, the correct option is c. Recognize an increase in net income of $9,000.
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table.
Scenario
Number of Firms
Type of Product
Market Model
There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.
There are hundreds of high school students in need of algebra tutoring services. Dozens of companies offer tutoring services; parents view the quality of the tutoring at the different companies to be largely the same.
In a small town, there are four providers of broadband Internet access: a cable company, the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost everyone in the city already has broadband, so any potential new company would have to engage in a price war with the existing companies and would be unlikely to cover its costs for years, if ever.
The government has granted the U.S. Postal Service the exclusive right to deliver mail.
Answer:
Number of Firms - many
Type of Product - differentiated
Market Model - monopolistic competition
Number of Firms - many
Type of Product - standardised
Market Model - perfect competition
Number of Firms - few
Type of Product - standardised
Market Model - oligopoly
Number of Firms - one
Type of Product - unique
Market Model - monopoly
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.
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.
Oligopolies are characterised by:
price setting firms profit maximisation high barriers to entry or exit of firms downward sloping demand curveClothing retail stores are an example of this market structure.
a monopoly
monopolistic competition
perfect competition
an oligopoly
Answer:Monopolistic Competition
Explanation:
Philadelphia Company has the following information for March: Sales $468,926 Variable cost of goods sold 221,229 Fixed manufacturing costs 78,814 Variable selling and administrative expenses 53,981 Fixed selling and administrating expenses 33,064 Determine the March: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income for Philadelphia Company $fill in the blank 3
Answer and Explanation:
The computation is shown below:
a. The manufacturing margin is
= Sales - variable cost of goods sold
= $468,926 - $221,229
= $247,697
b. The contribution margin is
= manufacturing margin - Variable selling and administrative expenses
= $247,697 - $53,981
= $193,716
c. The operating income is
= Contribution margin - fixed cost
= $193,716 - $788,14 - $33,064
= $81,838