Answer:
$2,335,000= cost of goods manufactured
Explanation:
Giving the following information:
January 1 finished goods, $765,000
December 31 finished goods, $540,000
Cost of goods sold for the year, $2,560,000
To calculate the cost of goods manufactured, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
2,560,000 = 765,000 + cost of goods manufactured - 540,000
2,335,000= cost of goods manufactured
The centralized purchasing department for Ridgewood, Inc. has monthly expenses of $42,000. The department has prepared 3,500 purchase requisitions this month. Division L initiated 700 purchases and Division G initiated 500 purchases. How much Division G should be charged for purchases
Answer:
Division G should be charged $6,000
Explanation:
cost per purchase requisition = $42,000 / 3,500 = $12 per purchase requisition
Division G initiated 500 purchases, so it should be charged 500 x $12 = $6,000
Division L initiated 700 purchases, so it should be charged 700 x $12 = $8,400
The other departments should be charged the remaining amount = $42,000 - ($6,000 + $8,400) = $27,600
During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:
Answer:
debit to Manufacturing Overhead of $65,000
Explanation:
Manufacturing overhead cost are those that are shared to different processes that do not contribute directly to product being manufactured.
For example raw materials is a direct contributor to goods, while labour is a overhead cost that indirectly contributed to the good.
On the given scenario it is the actual amount incurred that will be debited to the books of the company.
So there will be a debit to Manufacturing Overhead of $65,000
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:
Accounts Receivable $1,100,000
Allowance for Uncollectible Accounts (Credit) $37,000
Uncollectible-Account Expense $63,000
What is the net realizable value of the accounts receivable?
A. $1,137,000
B. $1,063,000
C. $1,100,000
D. $1,163,000
Answer: $1,063,000
Explanation:
Net realizable value is the value of an asset that a company will get when the asset is sold minus the cost that came with the asset sales.
The net realizable value of the accounts receivable will be the accounts receivable of $1,100,000 minus the allowance for uncollectible accounts which was given as $37,000.
= $1,100,000 - $37,000
= $1,063,000
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Mercon Wurcon
Direct materials cost per unit $ 9.00 $ 7.00
Direct labor cost per unit $15.00 $ 17.00
Direct labor-hours per unit 0.40 4.80
Number of units produced 4,000 8,000
These products are customized to some degree for specific customers.
Required:
1. The company's manufacturing overhead costs for the year are expected to be $1,600,000. Using the company's conventional costing system, compute the unit product costs for the two products.
2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:
Mercon Wurcon Total
Engineering design time (in hours) 8,000 8,000 16,000
Compute the unit product costs for the two products using the proposed ABC system.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Mercon Wurcon
Direct materials cost per unit $ 9.00 $ 7.00
Direct labor cost per unit $15.00 $ 17.00
Direct labor-hours per unit 0.40 4.80
Number of units produced 4,000 8,000
A. First, we need to calculate the predetermined overhead rate:
Total direct labor hours= 0.4*4,000 + 4.8*8,000= 40,000
Overhead= 1,600,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,600,000/40,000
Predetermined manufacturing overhead rate= $40 per direct labor hour
Now, we can determine the unitary product cost.
Mercon= 9 + 15 + 40*0.4= $37
Wurcon= 7 + 17 + 4.8*40= $216
B.
Mercon Wurcon Total
Engineering design time (in hours) 8,000 8,000 16,000
Now, we have two different allocation rates:
Direct-labor hours= 800,000/40,000= $20 per direct labor hour
Engineer desing= 800,000/16,000= $50 per engineer desing hour
Finally, we can determine the unitary product cost:
Engineer design per unit:
Mercon= 8,000/4,000= 2
Wurcon= 8,000/8,000= 1
Mercon= 9 + 15 + (20*0.4 + 50*2) = $132
Wurcon= 7 + 17 + (20*4.8 + 50*1)= $170
A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Union. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. If these are the firm's only options, which one would you advise it to choose? Why?
a. Manufacture the product at home and let foreign sales agents handle marketing.
b. Manufacture the product at home and set up a wholly owned subsidiary in Europe to handle marketing.
Answer:
Correct Answer:
a. Manufacture the product at home and let foreign sales agents handle marketing.
Explanation:
For the small Canadian company, manufacturing the product at home (Canada) would afford them the opportunity to protect their new medical product from piracy. Also, they would be able to receive tax incentives from their government as well file for patent of their new innovation.
The foreign agent would strictly be focused on the marketing of the finished product without having access to the detailed information of the product.
Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method [LO5-2, LO5-3]
Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process inventory, beginning 58,000 $ 56,200 19,700 $24,100
Units started in process 549,000
Units transferred out 570,000
Work in process inventory, ending 37,000
Cost added during the month $ 743,270 $ 243,460 $297,540
The beginning work in process inventory was 80% complete with respect to materials and 65% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 40 % complete with respect to labor and overhead.
Required:
1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.
2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month. (Round your answers to 2 decimal places.)
Overhead Labor Materials
1. Equivalent units of production
2. Cost per equivalent unit
Answer:
Material Labour Overhead
1) Total equivalent unit 607,000 584,800 584,800
2) Cost per equivalent unit (a/b) 1.32 0.45 0.55
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Cost per equivalent unit = cost / total equivalent units
1) Equivalent units of production
Material Labour Overhead
Unit EU EU EU
Transferred out 570,000 570,000 570,000 570,000
Work in progress 37,000 22,200 14,800 14,800
Total equivalent unit 607,000 584,800 584,800
% of work done on WIP 60% 40% 40%
Note the equivalent unit for WIP is computed by multiplying the degree of work done (in %) by the units of WIP for each of the element of cost.
For example, the EU of material for WIP = 60% × 37,000 = 22,200
2. Cost per equivalent unit
$ $ $
Cost brought forward 56,200 19,700 24,100
Cost incurred and added 743,270 243,460 297,540
Total cost (a) 799,470 263,160 321,640
Total equivalent unit(b) 607,000 584,800 584,800
Cost per equivalent unit (a/b) 1.32 0.45 0.55
Cost per equivalent unit = Total cost / total equivalent units
se the following information for Jett Co. to answer the following question: 2015 2014 Sales 1,200 1,000 COGS 850 700 Operating Expenses 200 200 Income Taxes 30 35 Jett Co.'s gross profit, operating profit and net profit margins for 2015 are: A. 50.0%, 32.5%, 22.5% respectively. B. 29.2%, 12.5%, 10.0%, respectively. C. 27.0%, 11.0%, 10.5%, respectively. D. 21.5%, 17.5%, 12.0%, respectively.
Answer:
B. 29.2%, 12.5%, 10.0%
Explanation:
Gross Profit = Sales - Cost of goods sold / Sales
Gross Profit = $1,200 - $850 / $1,200
Gross Profit = $350 / $1,200
Gross Profit = 0.2917
Gross Profit = 29.17%
Operating profit = Sales - Cost of goods sold - Operating Expenses / Sales
Operating profit = $1,200 - $850 - $200 / $1,200
Operating profit = $150 / $1,200
Operating profit = 0.125
Operating profit = 12.5%
Net profit margin = Sales - Cost of goods sold - Income Taxes / Sales
Net profit margin= $1,200 - $850 - $200 - $30 / $1,200
Net profit margin $120 / $1,200
Net profit margin= 0.1
Net profit margin= 10%
The_____ will solve for the expected return measured in an investor’s domestic currency for a foreign asset denominated its own currency.
Answer:
The Intertemporal Capital Asset Pricing Model (ICAPM)
Explanation:
The Intertemporal Capital Asset Pricing Model (ICAPM) is an useful way to calculate investor returns.
This method which involves predicting model allows an investor to measure their expected return in his own domestic currency. In a sense, It tells the investors the risk to profit gain of an investment.
Flounder Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Flounder had the following transactions related to notes payable.
Sept. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Flounder uses a perpetual inventory system.)
Sept. 30 Recorded accrued interest for the Pippen note.
Oct. 1 Issued a $21,600, 8%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.
Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note.
Nov. 1 Issued a $26,400 note and paid $8,900 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 7% and matures in 12 months.
Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.
Dec. 1 Paid principal and interest on the Pippen note.
Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note.
a) Prepare journal entries for the transactions noted above.
b) Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts.
c) Show the balance sheet presentation of notes payable and interest payable at December 31
d) How much interest expense relating to notes payable did Flounder incur during the year?
interest expense incurred during the year: $ ?
Answer:
a) Prepare journal entries for the transactions noted above.
Sept. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Flounder uses a perpetual inventory system.)
Dr Inventory 14,400
Cr Notes payable 14,400
Sept. 30 Recorded accrued interest for the Pippen note.
Dr Interest expense 96
Cr Interest payable 96
Oct. 1 Issued a $21,600, 8%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.
Dr Cash 21,600
Cr Notes payable 21,600
Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note.
Dr Interest expense 240
Cr Interest payable 240
Nov. 1 Issued a $26,400 note and paid $8,900 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 7% and matures in 12 months.
Dr Vehicle 35,300
Cr Notes payable 26,400
Cr Cash 8,900
Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.
Dr Interest expense 394
Cr Interest payable 394
Dec. 1 Paid principal and interest on the Pippen note.
Dr Notes payable 14,400
Dr Interest payable 288
Cr Cash 14,688
Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note.
Dr Interest expense 298
Cr Interest payable 298
b) Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts.
notes payable interest payable
debit credit debit credit
14,400 96
21,600 240
26,400 394
14,400 288
48,000 298
740
interest expense
debit credit
96
240
394
298
1,028
c) Show the balance sheet presentation of notes payable and interest payable at December 31
notes payable balance December 31 = $48,000
interest payable balance December 31 = $740
d) How much interest expense relating to notes payable did Flounder incur during the year?
$1,028
If portfolio weights are positive: 1) Can the return on a portfolio ever be less than the smallest return on an individual security in the portfolio? 2) Can the variance of a portfolio ever be less than the smallest variance of an individual security in the portfolio? A) 1) yes; 2) no B) 1) no; 2) yes C) 1) no; 2) no D) 1) maybe; 2) no E) 1) yes; 2) yes
Answer: B) 1) no; 2) yes
Explanation:
The return on a portfolio when the portfolio weights are positive will be between the highest return and the lowest return. It cannot exceed these limits.
With Variance however, the variance of a portfolio can be less than the smallest variance of an individual security in the portfolio because in the calculation of portfolio variance, the correlation is used in the calculation (refer to formula below). As a result, if the securities are negatively correlated, it could lead to a lower value than the smallest variance in the portfolio.
Variance of Portfolio = (w(1)^2 * o(1)^2) + (w(2)^2 * o(2)^2) + (2 * (w(1)*o(1)*w(2)*o(2)*q(1,2)))
Highlighted portion is the correlation. If this is negative, Portfolio variance will reduce to a point lower than the lowest individual variance.
Based on the information given, the correct option will be B. 1) no; 2) yes
It should be noted that the return on a portfolio when the portfolio weights are positive will be calculated as the value that is between the highest return and the lowest return.
In such a case, the return on a portfolio can never be less than the smallest return on the individual security in the portfolio. Also, the variance of a portfolio can be less than the smallest variance of the individual security in the portfolio.
Read related link on:
https://brainly.com/question/17063477
Wolverine Company financial statements included the effects of these errors: Reported Net Income for Year 1 was $20,000. Reported Net Income for Year 2 was $18,000. Indicate the error in 12/31/2 Retained Earnings:
Answer:
Net income year 2 = $21,300
Explanation:
I looked for the missing information and found this:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $2,000
2 $4,000 $2,700
If your question doesn't include the same values, just adjust the answer.
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300
An employer who promises to pay her secretary $1000 in consideration of the services the secretary had provided over the years and later breaches the promise is a. liable for payment of the $1000. b. liable only if the promise was in writing. c. not liable because the consideration is inadequate. d. not liable because the consideration is in the past. e. C and D are both correct.
Answer:
d. not liable because the consideration is in the past.
Explanation:
In order for a valid contract to exist (and then be breached), consideration must be exchanged between the parties involved. E.g. if I just decide to give money to my school because of the good education I got there, it is considered a gift. The consideration from the school took place in the past, it is not exchanging anything with me right now.
The same happens here, the consideration which is the years served is part of the past, nothing is being exchanged in the present. This should be considered a gift from the employer.
Goodard Inc. planned to use $156 of material per unit but actually used $147 of material per unit, and planned to make 1,140 units but actually made 900 units. The sales−volume variance for materials is ________.
Answer:
2700, favorable
Explanation:
To calculate the sales-volume variance for materials, we use the equation as follows;
Sales-volume variance for materials = (Actual Price - Standard Price)*Aqual Quantity
sales-volume variance for materials = (147-150)*900
sales-volume variance for materials = 2700 Favorable
On January 1, 20X0, Hunter Corporation issued 8,000 of its $15 par value shares to acquire 45 percent of the shares of Arrow Manufacturing. Arrow Manufacturing's balance sheet immediately before the acquisition contained the following items:
ARROW MANUFACTURING
Balance Sheet
January 1, 20X0
Book Value Fair Value
Assets
Cash and Receivables $36,000 $36,000
Land 70,000 80,000
Buildings & Equipment (net) 126,000 156,000
Patent 80,000 80,000
Total Assets 312,000
Liabilities & Equities
Accounts Payable $126,000 126,000
Common Stock 138,000
Retained Earnings 48,000
Total Liabilities & Equities $312,000
On the date of the stock acquisition, Hunter's shares were selling at $40, and Arrow Manufacturing's buildings and equipment had a remaining economic life of 5 years. The amount of the differential assigned to goodwill is not impaired.
In the two years following the stock acquisition, Arrow Manufacturing reported net income of $85,000 and $55,000 and paid dividends of $27,000 and $45,000, respectively. Hunter used the equity method in accounting for its ownership of Arrow Manufacturing.
a. Prepare the entry recorded by Hunter Corporation at the time of acquisition.
b-1. Prepare the journal entries recorded by Hunter during 20X0 related to its investment in Arrow Manufacturing.
b-2. Prepare the journal entries recorded by Hunter during 20X1 related to its investment in Arrow Manufacturing.
c.What balance will be reported in Hunter’s investment account on December 31, 20X1?
Answer:
a. Entry recorded by Hunter Corporation at the time of acquisition.
DR Investment in Arrow Manufacturing (8,000 * $40) $320,000
CR Common Stock (8,000 * 15) $120,000
CR Additional Paid-In Capital $200,000
(To record acquisition of Arrow Manufacturing stock)
b-1. Journal entries recorded by Hunter during 20X0 related to its investment in Arrow Manufacturing.
DR Investment in Arrow Manufacturing (8,000 * $40) $320,000
CR Common Stock (8,000 * 15) $120,000
CR Additional Paid-In Capital $200,000
DR Cash (27,000 * 45%) $12,150
CR Investment in Arrow Manufacturing Stock $12,150
(To record dividends from Arrow Manufacturing)
DR Investment in Arrow Manufacturing Stock ( $85,000 x 0.45) $38,250
CR Income from Arrow Manufacturing $38,250
(To record equity income from Arrow Manufacturing)
DR Income from Arrow Manufacturing $2,700
CR Investment in Arrow Manufacturing Stock $2,700
(To amortize differential assigned to buildings and equipment)
Working
Investment in Arrow Stock
(156,000 -126,000)*0.45) / 5 years remaining economic life.
b-2. The journal entries recorded by Hunter during 20X1 related to its investment in Arrow Manufacturing.
DR Cash (45,000 * 45%) $20,250
CR Investment in Arrow Manufacturing Stock $20,250
(To record dividends from Arrow Manufacturing)
DR Investment in Arrow Manufacturing Stock ( $55,000 x 0.45) $24,750
CR Income from Arrow Manufacturing $24,750
(To record equity income from Arrow Manufacturing)
DR Income from Arrow Manufacturing $2,700
CR Investment in Arrow Manufacturing Stock $2,700
(To amortize differential assigned to buildings and equipment)
c.
Purchase price on January 1, 20X0 $320,000
20X0: Income from Arrow Manufacturing
(38,250 - 2,700) $35,550
Less: Dividends received -12,150
Investment account balance, December 31, 20X0 $343,400
20X1: Income from Arrow Manufacturing
($24,750 - $2,700) $22,050
Dividends received -20,250
Investment account balance, December 31, 20X1 $345,200
By automating its shop floor, your company expects to save $81,000 annually. If the automation costs $225,000, what is the payback period of the automation?
Answer:
2.78
Explanation:
Calculation for the payback period of the automation
Using this formula
Payback period = Automation cost/ Amount to saved annually
Let plug in the formula
Payback period =$225,000/$81,000
Payback period =2.78
Therefore the payback period of the automation will be 2.78
The Atlantic Company sells a product for $150 per unit. The variable cost is $60 per unit, and fixed costs are $270,000. What is the break-even point in sales units?_____________________________________ What is the break-even points in sales units if the company desires a target profit of $36,000?
Answer:
The break even units are 3000 units and when it desires the profit of $36000 then sales unit is 3400 units.
Explanation:
The selling price of a product (SP) = $150 per unit.
Variable cost (VC) = $60 per unit.
Fixed cost of the company = $270000
Break-even units can be calculated by dividing the fixed cost from the difference in selling price and variable cost.
Break even Units = (fixed cost) / ( SP – VC)
= 270000 / (150-60)
= 3000 units.
Break-even units when a company desires a profit of $36000.
Desired units for sales = (Fixed Cost + Profit)/ Contribution per unit
= (270,000 + 36,000) / (150 - 60)
= 3,400 units
Windy Inc. is considering expanding on some land that it currently owns. The initial cost of the land was $300,000 and it is currently valued at $251,900. The company has some unused equipment that it currently owns valued at $30,000 that could be used for this project if $15,000 is spent for equipment modifications. What is the amount of the initial cash flow for this expansion project
Answer:
The amount of the initial cash flow for this expansion project is $15,000.
Explanation:
It is important to remember that Sunk costs are not relevant for decision making.
Sunk Cost are costs already incurred as a results of past decisions.
The Cost of Land of $300,000 and the Cost of Equipment Valued at $30,000 are both Sunk costs and are not relevant for this expansion project.
The Relevant Costs (Initial Cash Flow) is $15,000 for modifications.
A $20,000 loan with interest at 3.5% is being repaid by 35 level annual payments. The first payment is due one year after the loan is issued. Beginning with the seventeenth payment, the borrower is permitted to pay only one-third the normal annual payment. After the twelfth reduced payment, the loan is renegotiated. The revised level payment P will yield the lender 4% per year over the remaining seven years. Find P.
Answer:
To find EMI (P) we know that the yearly EMI for the loan of $20000 for 35 years at an interest of 3.5% is $992 per year.
Therefore upon calculating the loan after the seventeenth year we have $19252
The EMI calculated after the one-third permitted on the seventeenth payment is, therefore: $992*1/3= 992/3=$330
Therefore, the balance calculated after the twenty-seventh instalment = $6150
Therefore the yearly EMI (P) for the loan of $6150 at 4% for the remaining eight years is $900 per year.
Explanation:
To find EMI (P) we know that the yearly EMI for the loan of $20000 for 35 years at an interest of 3.5% is $992 per year.
Therefore upon calculating the loan after the seventeenth year we have $19252
The EMI calculated after the one-third permitted on the seventeenth payment is, therefore: $992*1/3= 992/3=$330
Therefore, the balance calculated after the twenty-seventh instalment = $6150
Therefore the yearly EMI (P) for the loan of $6150 at 4% for the remaining eight years is $900 per year.
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to
Answer:
Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000
Explanation:
Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.
As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.
Over applied overhead = Applied overhead - Actual overhead
= 42,000,000 - 40,300,00 = 1,700,000
Over applied overhead = $ 1,700,000
The adjustment required is to reduce the cost of gods sold by the amount of over-applied overhead because the cost of goods sold figure is would have over charged.
Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000 because net income and cost of Goods Sold are inversely related.
"If the top two companies in the golf club industry merged, their new market share would equal 15% of the market. This industry's new HHI would be 995. According to the FTC's historical guidelines for mergers, would the FTC approve this merger
Answer:
Yes, the FTC would ignore the merger and allow it to go through.
Explanation:
here are the options to the question ;
O No, the FTC would probably challenge the merger
O Maybe. The FTC would scrutinize the merger and make a case-by-case decislon.
Yes, the FTC would ignore the merger and allow it to go through.
HHI is used to calculate market power.
if the HHI index is less than 1000 post merger, the merger would be allowed to go through.
If the HHI index is between 1000 - 1800 post merger and the change in HHI is more than 100 after the merger, The FTC would scrutinize the merger and make a case-by-case decislon.
If the HHI index is more than 1800 post merger and the change in HHI is more than or equal to 50, he FTC would probably challenge the merger
The earnest money that must be paid with a contract is
Answer:
the earnest money that must be paid with a contract is deposit to the seller that shows the intention of completing the transaction
earnest money is the money paid to a merchant or seller to complete a contract or money paid to a merchant / seller to show good faith in the transaction.
1. Suppose that nominal GDP was $11 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion in Bedrock. The price level fell 6% between 2040 and 2050, and population growth was 3%. Between 2040 and 2050 in Mordor, nominal GDP growth was______% and economic growth was______%.
2. Suppose that nominal GDP was $20 trillion in 2040 in Mordor. In 2050, nominal GDP was $18 trillion in Mordor. The price level rose 3% between 2040 and 2050, and population growth was 2%. Between 2040 and 2050 in Mordor, nominal GDP growth was______% and economic growth was_______%.
3. Suppose that nominal GDP was $8 trillion in 2040 in Mordor. In 2050, nominal GDP was $10 trillion in Mordor. The price level rose 18.0% between 2040 and 2050, and population growth was 13.0%. Between 2040 and 2050 in Mordor, nominal GDP growth was______% and economic growth was______%.
1. The nominal GDP growth and economic growths are 36.4% and 39.4%.
2. The nominal GDP growth and economic growths are -10% and -15%.
3. The nominal GDP growth and economic growths are 25% and -6%.
Calculation of normal GDP growth & economic growth:1.
Nominal GDP growth is
= (Nominal GDP as on 2050 - Nominal GDP as on 2040) × 100 ÷ (Nominal GDP as on 2040)
= ($15 trillion - $11 trillion) × 100 ÷ $11 trilion
= 36.4 %
Now
Economic growth is
= Nominal GDP growth rate - fall in price level - population growth rate
= 36.4% - (-6%) - 3%
= 39.4%
2.
Nominal GDP growth is
= (Nominal GDP as on 2050 - Nominal GDP as on 2040) × 100 ÷ (Nominal GDP as on 2040)
= ($18 trillion - $20 trillion) × 100 ÷ $20 trilion
= -10%
Now
Economic growth is
= Nominal GDP growth rate - rise in price level - population growth rate
= -10% - 3% - 2%
= -15%
3.
Nominal GDP growth is
= (Nominal GDP as on 2050 - Nominal GDP as on 2040) × 100 ÷ (Nominal GDP as on 2040)
= ($10 trillion - $8 trillion) × 100 ÷ $8 trilion
= 25%
Now
Economic growth is
= Nominal GDP growth rate - rise in price level - population growth rate
= 25% - 18% - 13%
= -6%
Learn more about growth here: https://brainly.com/question/24515909
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 3.7 pounds of the material, S5 uses 3.4 pounds of the material, and G9 uses 6.1 pounds of the material. Demand for all products is strong, but only 44,500 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
K1 S5 G9
Selling price $155.8 $108.92 $205.55
Variable costs 91.00 90.00 136.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
K1 S5 G9
$ $ $
Contribution per pound 17.51 5.11 17.99
Explanation:
Contribution is he excess of selling price over variable cost. The following relationships would help in solving the question:
The contribution per Selling price - variable cost
The contribution per pound of a material = Contribution per unit/ Material per unit
K1 S5 G9
$ $ $
Selling price 155.8 108.92 202.55
Variable cost (91.00) ( 90.00) (136.00)
Contribution per unit 64.8 18.92 66.55
Material per unit 3.7 3.4 6.1
Contribution per pound 17.51 5.11 17.99
The Sarbanes-Oxley Act was created in response to corporate accounting scandals in the early 21st century to reform the accounting industry, particularly in regards to auditing and internal controls.
A. True
B. False
Answer:
The answer is "Option A"
Explanation:
In this Act, the U.S. Congress in 2002 to financing offers against the risk of corporate accounting fraud. To enhance account statements on firms as well as reduce financial crimes, its Sarbanes Oxley Act (SOX) authorized information pertinent.
The SOX has been introduced in the early 2000s throughout responding to its accounting irregularities. The Shareholder commitment within financial reports has been shattered by controversies in everything from Enron, Tyco, and WorldCom and a rewrite in regulatory requirements.The bonds of CYTK, Inc. carry a 12% annual coupon, have a $1,000 face value, and mature in 5 years. Bonds of equivalent risk yield 9%. What is the market value of CYTK bonds
Answer:
The market value of CYTK bonds is $1,116.69.
Explanation:
This can be calculated as follows:
Annual coupon = $1000 × 12% = $120
Annual coupon discount factor based ordinary annuity = ((1-(1/(1 + r))^n)/r)
Where;
r = rate of return of equivalent bond = 9%, or 0.09
n = number of years to maturity = 5
Therefore, we have
Annual coupon discount factor = ((1-(1/(1.09))^5)/0.09) = 3.88965126335172
PV of coupon = $120 × 3.88965126335172 = $466.76
PV of the face value of the bond = Face value ÷ (1 + r)^n = 1,000 ÷ (1 + 0.09)^5 = $649.93
Therefore, we have:
Market value of CYTK bonds = PV of coupon + PV of the face value of the bond = $466.76 + $649.93 = $1,116.69
Therefore, the market value of CYTK bonds is $1,116.69.
You would like to have $50,000 in 15 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7% interest annually. Your first payment will be made at the end of the year.
Required:
A) How much must you deposit annually to accumulate this amount?
B) If you decide to make a lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be?
C) At the end of five years, you will receive $10,000 and deposit this in the bank towards your goal of $50,000 at the end of 15 years. In addition to this deposit, how much must you deposit in equal annual deposits in order to reach your goal?
Answer:
ah
Explanation:
._.
4. It is estimated that you pay $2,000 per year into the Social Security System (FICA) over your 40-year work span. For simplicity, assume that your annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday. The deposit is done at the end of the year. However, the government decides to provide you the annual withdrawal only after the end of 67th birthday. If the government interest rate is 6% per year, what equal annual withdrawal you can do, if you expect to live till the end of 86th birthday
Answer:
$30,320.94
Explanation:
first we must determine the future value of your social security contributions:
when you are 65, your contributions will be worth = $2,000 x 154.762 (FV annuity factor, 6%, 40 periods) = $309,524
now we must determine the value of the contributions when you are 67:
FV = $309,524 x (1 + 6%)² = $347,781.17
you expect to live 20 more years, so we need to determine the annuity payment:
annuity payment = principal / PV annuity factor, 6%, 20 periods = $347,781.17 / 11.470 = $30,320.94
Suppose that, during a recession, the government borrows money to provide free movies as a distraction from the poor economy. Which of the following statements are correct?
A. The free movies as a distraction from the poor economy will likely raise interest rates as the government borrows more money to finance the purchase.
B. This policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people.
C. The provision of free movies is an example of an automatic stabilizer.
D. The government is engaging in contractionary fiscal policy.
E. Crowding-out will occur as individuals choose to rely on free movies instead of purchasing their own.
Answer: A. . The free movies as a distraction from the poor economy will likely raise interest rates as the government borrows more money to finance the purchase.
B. This policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people.
E. Crowding-out will occur as individuals choose to rely on free movies instead of purchasing their own
Explanation:
We are informed that during a recession, the government borrows money to provide free movies as a distraction from the poor economy.
The effect of this is that there will be a likely increase in the interest rates because the government borrows more money to finance the purchase of tickets.
Also, due to the free movies, there'll be an impact lag as the policy will take time before it make its way to the people and there will also be crowding-out because the individuals will rely on free movies instead of purchasing their own.
Below are several amounts reported at the end of the year.
Currency located at the company 800
Supplies 2200
Short-term investments that mature within three months 1700
Accounts receivable 2500
Balance in savings account 7500
Checks received from customers but not yet deposited 400
Prepaid rent 1200
Coins located at the company 100
Equipment 8400
Balance in checking account 5200
Required: Calculate the amount of cash to report in the balance sheet.
Answer:
Calculation of the amount of cash to report in the balance sheet
Particulars Amount
Currency located at the company $800
Short-term investments that mature $1,700
within three months
Balance in savings account $7,500
Checks received from customers $400
but not yet deposited
Coins located at the company $100
Balance in checking account $5,200
Cash at the end of the year $15,700
Thus, the amount of cash to report in the balance sheet is $15,700,
Note: Supplies ,account receivables and prepaid rent are current asset of the company other than cash. Equipment are non cash
Bond issuance: 20% of total funds, requires 15% interest per year Bank loan: 60% of total funds, requires 9.5% interest per year Preferred Stock issuance: 20% of total funds, requires 5% dividend per year What is Valentino’s average rate of return on the new project?
Answer: 28.57%
Explanation:
Average return given the variables will be;
[tex]Average rate of return = \frac{Annual net income}{Average investment}[/tex]
Average rate of return = [tex]\frac{1,000,000}{\frac{7,000,000}{2} }[/tex]
Average rate of return = 1,000,000/3,500,000
Average rate of return = 28.57%