Answer:
Microeconomics
Microeconomics
Macroeconomics
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
Microeconomics: The effect of government regulation on a monopolist's production decisions.
Microeconomics: The effects of the Internet on the pricing of used cars.
Macroeconomics: The effect of federal government spending on the national unemployment rate.
The effect of government regulation on a monopolist's production decisions: This topic would likely be studied in microeconomics. Microeconomics analyzes the behavior of individual firms, and the impact of government regulation on a monopolist's production decisions falls within this domain. The study would explore how government policies and regulations influence the production output, pricing strategies, and market behavior of a monopolist.
The effects of the Internet on the pricing of used cars: This topic would also be studied in microeconomics. The Internet's impact on the pricing of used cars relates to how individual buyers and sellers interact in a specific market. Microeconomics would investigate how the availability of online platforms, increased access to information, and changes in buyer-seller dynamics affect the pricing decisions of used cars.
The effect of federal government spending on the national unemployment rate: This topic would be studied in macroeconomics. Macroeconomics focuses on the overall economy and aggregates like national income, employment, and inflation. The effect of federal government spending on the national unemployment rate is a macroeconomic question that looks at how government expenditures, such as infrastructure projects or stimulus packages, can influence the overall level of unemployment in the country.
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The following events occurred for Favata Company: Received $15,000 cash from owners and issued stock to them. Borrowed $12,000 cash from a bank and signed a note due later this year. Bought and received $1,300 of equipment on account. Purchased land for $22,000; paid $2,000 in cash and signed a long-term note for $20,000. Purchased $8,000 of equipment; paid $2,000 in cash and charged the rest on account.
Answer:
a. Dr Cash$15,000
Cr Contributed Capital $15,000
b. Dr Cash $12,000
Cr Notes Payable (short-term) $12,000
c. Dr Equipment $1,300
Cr Accounts Payable $1,300
d. Dr Land $22,000
Cr Cash $2,000
Cr Notes Payable (long-term) $20,000
e. Dr Equipment$8,000
Cr Cash $2,000
Cr Accounts Payable $6,000
Explanation:
Preparation of Journal entries
a. Dr Cash$15,000
Cr Contributed Capital $15,000
b. Dr Cash $12,000
Cr Notes Payable (short-term) $12,000
c. Dr Equipment $1,300
Cr Accounts Payable $1,300
d. Dr Land $22,000
Cr Cash $2,000
Cr Notes Payable (long-term) $20,000
e. Dr Equipment$8,000
Cr Cash $2,000
Cr Accounts Payable $6,000
(8,000-2,000)
someone please help i have to turn this in tonight.
Outline the process the raw ingredients for a single flavor of ice cream might undergo to get to a local grocery’s freezer case.
Answer:blending of the mix ingredients.
pasteurization.
homogenization.
aging the mix.
freezing.
packaging.
hardening.
g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale, $15,000 was stillowed to First National Bank on that purchase. After the sale, The Melville Company paid off the loan to First National Bank. What is the effect of thesale and the payoff of the loan on the accounting equation
Answer and Explanation:
The impact on the sale and the payoff the loan in an accounting equation is as follows:
But before that
The following journal entries should be recorded
Cash $60,000
To Land $40,000
To Profit on sale of land $20,000
(Being the sale of the land is recorded)
Loan Dr $15,000
To Cash $15,000
(Being the loan is paid)
Here the cash would increased by $5,000, the liabilities would decreased by $15,000 and equity would be increased by $20,000
The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is: Joint product costing. Accounting approach. Activity-based approach. Direct approach. Departmental approach.
Answer:
Activity-based approach.
Explanation:
Cost allocation in financial accounting can be defined as the process of identifying, gathering and assigning of cost across multiple cost objects such as products, inventory or departments.
There are various types of cost allocation methods and these are;
1. Sequential method.
2. Activity-based management method.
3. Reciprocal services method.
4. Direct method.
The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is activity-based approach.
This ultimately implies that, activity-based approach gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the activity-based approach, the relationship between time and cost measurement is used to determine the cost price of goods and services.
Unearned revenues refer to a(n): Group of answer choices Asset that will be used over time. Expense incurred because a customer has paid in advance. Liability that is settled in the future when a company delivers its products or services. Increase in revenues as a result of delivering products or services to a customer. Decrease in an asset.
Answer:
Liability that is settled in the future when a company delivers its products or services.
Explanation:
Unearned revenue is money received for a service that is yet to be provided or a product that is yet to be delivered.
Unearned revenue is recorded as a liability on the balance sheet. The reason for this is because unearned revenue represents debts owed.
Once the service is rendered, the unearned revenue is recorded on the income statement as a revenue.
Example of unearned revenue : a company offers a one year subscription to consumers. The company is earning revenue for services that is yet to be rendered
Stuart Manufacturing Company was started on January 1, year 1, when it acquired $89,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $32,000 and $40,000, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of six years. The company paid $12,000 for salaries of administrative personnel and $21,000 for wages to production personnel. Finally, the company paid $26,000 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 10,000 units of product and sold 8,000 units at a price of $9 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)
Required
a. Determine the total product cost and the average cost per unit of the inventory produced in year 1.
b. Determine the amount of cost of goods sold that would appear on the year 1 income statement.
c. Determine the amount of the ending inventory balance that would appear on the December 31, year 1, balance sheet.
d. Determine the amount of net income that would appear on the year 1 income statement.
e. Determine the amount of retained earnings that would appear on the December 31, year 1, balance sheet.
f. Determine the amount of total assets that would appear on the December 31, year 1, balance sheet.
LAnswer:
A. $ 5.3
B. $ 42,400
C. $ 10,600
D.$4,000
E. $13,600
F. $102,600
Explanation:
A. Calculation to Determine the total product cost and the average cost per unit of the inventory produced in year 1
First step
Total product cost= $ 6,000 + $21,000 + $26,000 = $ 53,000
Second step
Manufacturing equipment depreciation for 1 year = ($40,000 - $4,000)/6
(Manufacturing equipment depreciation for 1 year = $6,000
The average cost per unit = Total product cost / total products = $ 53,000 / 10,000 = $ 5.3
b. Calculation to Determine the amount of cost of goods sold that would appear on the 2018 income statement.
COGS= $ 5.3 * 8,000
COGS = $ 42,400
c. Calculation to Determine the amount of the ending inventory balance that would appear on the December 31, 2018,balance sheet.
The ending inventory balance = $ 5.3 * (10,000 - 8,000)
The ending inventory balance = $ 10,600
d. Calculation to Determine the amount of net income that would appear on the 2018 income statement.
STUART MANUFACTURING COMPANY
Income Statement
Sales (8000 * $9)$72,000
Cost of Goods sold ($42,400)
Gross Margin$29,600
Office furniture depreciation($4,000)
salaries of administrative personnel($12,000)
Net Income$ 13,600
Office furniture depreciation for 1 year =($32,000 - $0)/8
Office furniture depreciation for 1 year= $4,000
e. Calculation to Determine the amount of retained earnings that would appear on the December 31, 2018, balancesheet.
Retain Earnings = $0 + $ 13,600 = $13,600
f. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet.Total Assets = 30,000 + 10,600 + 28,000 + 34,000 = $102,600
The total assets of Berber Company are $190,000 and its owner's equity is $89,000. What is the amount of its total liabilities?
Answer:
$101,000
Explanation:
As per the accounting equation, assets are equal to liabilities plus equity.
I.e.,
Assets = Liabilities + Equity
For Berber Company, Assets are $190,000: liabilities = $89,000
Therefore,
$190,000 = $89,000 + Equity
Equity = $190,000 -$89,000
Equity = $101,000
A company has the following cash transactions for the period.
Accounts Amounts Cash
received from sale of products to customers 31,500
Çash received from the bank for long-term loan 36,500
Cash paid to purchase factory equipment (41,500)
Cash paid to merchandise suppliers (10,300)
Cash received from the sale of an unused warehouse 11,300
Cash paid to workers (22,300)
Cash paid for advertisement (2,300)
Cash received for sale of services to customers 21,500
Cash paid for dividends to stockholders (4,300)
Assume the balance of cash at the beginning of the period is $3,300.
Required: 1.
Calculate the ending balance of cash. Ending balance
Answer:
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Answer:
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Explanation:
that's poggers
Answer:
yes very poggers
Explanation:
Over the past four years, the common stock of Jess Electronics Co. produced annual returns of 7.2, 5.8, 11.2, and 13.6 percent, respectively. Treasury bills produced returns of 3.4, 3.3, 4.1, and 4.0 percent, respectively over the same period. What is the standard deviation of the risk premium on Jess Electronics Co. stock for this time period? (Hint: First, calculate the risk premium for the stock in each of the years. Then, use these 4 annual risk premiums to calculate the standard deviation in the normal way that standard deviation is calculated.).
A. 2.23 percent
B. 4.46 percent
C. 3.22 percent
D. 2.86 percent
E. 4.61 percent
Answer:
Standard Deviation = 0.032 or 3.2%
Therefore, Option C) 3.22 percent is the correct answer
Explanation:
Given the data in the question;
lets make a table;
year market Treasury bills Risk deviation square of
returns returns premium from mean deviation
A B (A - B) Avg - (A - B) (Avg-(A-B))²
1 7.2% 3.4% 3.8% -0.0195 0.0004
2 5.8% 3.3% 2.5% -0.0325 0.0011
3 11.2% 4.1% 7.1% 0.0135 0.0002
4 13.6% 4.0% 9.6% 0.0385 0.0015
sum(∑) 23% 0.0032
Average Avg = ∑(A-B) /n = 23/4 = 5.75%
so Variance = ∑(Avg-(A-B))² / n-1 = 0.0032 / (4-1) = 0.0032 / 3 = 0.0010
Standard Deviation = √variance = √0.0010 = 0.0316 ≈ 0.032 or 3.2%
Therefore, Option C) 3.22 percent is the correct answer
Orientation responsibilities are normally shared between:
of 2
Select one:
a. the HR department and top management.
b. mid- and upper-level executives.
C. coworkers and line managers.
d. the HR department and the new employee's immediate manager.
Clear my choice
Answer:
d. the HR department and the new employee's immediate manager.
Explanation:
An "employee orientation" is part of a new employee's onboarding process, before he's trained. It often happens on the first day of employment. It allows the new employee to feel welcomed in the company, which will make him more successful in achieving his goal.
It is the role of the HR department and direct manager or immediate manager to conduct the orientation. It is the role of the HR to give the employee the company handbook and sign contracts. On the other hand, the immediate manager introduces the new employee to his colleagues and gives him a tour of the company's premise. Some immediate managers provide a welcome party.
A change in the supply of one factor of production a. can alter the earnings of all of the other factors. b. alters the earnings of that factor only. c. will not change the marginal productivities of other factors but may change their prices. d. alters the earnings of capital and labor but not land.
Answer:
a. can alter the earnings of all of the other factors.
Explanation:
In the case when there is any change in the one factor of the supply so it would alter or made changes the earnings of all other factors not change the one factor or any other reason
It would fully impact the all the other factors earnings
Therefore as per the given options the first one is correct
Pina Colada Corp. issued 22000 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $53000 and issued long-term notes payable of $484000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows
Answer:
Net cash flows from financing activities $1,311,000.
Explanation:
The computation of the amount that would be reported on the financing activities of the cash flow statement is as follows:
Issue of common stock(22,000 shares × $40) $880,000
Less: payment of dividend ($53,000)
Add: Issue of the long term note payable $484,000
Net cash flows from financing activities $1,311,000.
Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 43,000 46% Ending work in process 38,000 68 Stone adds all materials at the beginning of its manufacturing process. During the month, it started 90,000 units. Required: 1. Using the weighted-average method, reconcile the number of physical units. 2. Using the weighted-average method, calculate the number of equivalent units.
Answer and Explanation:
a. The number of physical units reconciles is as follows:
Beginning work in process 43,000
Add: Started during the month 90,000
Units accounted 133,000
Completed & transferred units (133,000 - 38,000) 95,000
Ending work in process 38,000
Units accounted 133,000
b. The number of equivalent units is
Particulars Units %Material EUP %Conversion EUP
Units completed 95,000 100% 95,000 100% 95,000
Ending balance 38,000 100% 38,000 68% 25,840
Equivalent units 133,000 120,840
Oscar owns a bulldog. Another dog owner filed a lawsuit against Oscar alleging that his bulldog injured her pet poodle in a dog park fight. Despite evidence that his bulldog was not present at the dog park when a dogfight broke out, the jury found Oscar liable for injuries caused to the poodle. Based on these facts, Oscar has the legal option to do which of the following?
1) Make a peremptory challenge ((has to do with a juror))
2) File a motion for a judgment notwithstanding the verdict
3) Motion that the court nullify the verdict based on res judicata(no this has to do with not refiling the case)
4) File a motion for a directed verdict at the end of trial testimony before the case goes to the jury that argues that no reasonable jury could find for opposing party and therefore the judge should make a ruling on the case accordingly
Answer:
File a motion or a judgement notwithstanding the verdict
Explanation:
Answer:
File a motion or a judgement notwithstanding the verdict
Explanation:
You are considering an investment in Cruise, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Cruise earned an EBIT of $203 million, paid taxes of $50 million, and its depreciation expense was $74 million. Cruise's gross fixed assets increased by $71 million from 2017 to 2018. The firm's current assets decreased by $11 million and spontaneous current liabilities increased by $6.1 million. What is Cruise's operating cash flow, investment in operating capital and free cash flow for 2018, respectively in millions
Answer: See explanation
Explanation:
Cruise's operating cash flow would be calculated as:
= EBIT + Depreciation + Taxes
= 203 + 74 - 50
= $227 million
Cruise's investment in operating capital will b calculated as:
= 71 - 11 - 6.1
= $53.9 million
Cruise's free cash flow for 2018 will be calculated as:
= operating cash flow - investment in Operating capital
= 227 - 53.9
= $173.1 million
Answer and Explanation:
The computation is shown below:
Operating cash flow = EBIT - taxes + depreciation expense
= $203 million -$50 million + $74 million
= $227 million
The investment in operating capital is
= Gross fixed asset - decrease in current asset + increase in current liability
= $71 million - $11 million + $6.1 million
= $66.1 million
And, the free cash flow is
= Operating cash flow - investment in operating capital
= $227 million - $66.1 million
= $160.90 million
Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $35 per share.
a. What is the amount of economic investment that has resulted from BBQ’s actions? $ million.
b. How much purely financial investment took place? $ million.
Answer and Explanation:
The computation is shown below:
a. The economic investment amount is
= Number of resturants × cost per resturant + number of resturant × additional cost
= 10 × $1,000,000 + 10 × $300,000
= $10,000,000 + $3,000,000
= $13,000,000
b. The amount in financial investment took place is
= Number of shares × per value share
= 200,000 shares × $35 per share
= $7,000,000
From the following ledger balances, prepare a trial balance for the Whispering Winds Corp. at June 30, 2022. All account balances are normal.
Accounts Payable $8,300 Service Revenue $7,300
Cash $7,700 Accounts Receivable $4,300
Common Stock $22,500 Salaries and Wages Expense $3,500
Dividends $2,100 Rent Expense $2,300
Equipment $18,200.
Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
Context content and culture are
Complete Question:
Context, content and culture are:
O Important ethical concepts
O Important marketing concepts
O Corporate ethics policy
O Three dimensions of evaluating corporate gifts.
Answer:
Context, content and culture are:
O Three dimensions of evaluating corporate gifts.
Explanation:
Corporate gifts may turn out to be regarded as bribery if they are meant to induce the other party to alter their behaviors. This is why in evaluating corporate gifts, the criteria have always included the context (the circumstances in which the gifts are given), the content (how much is given), and the culture (the accepted general practice in a particular industry, locality, or region). Generally, corporate gifts are given either as means of showing appreciation, creating positive first impression, or returning some favors.
Context, content and culture are the three dimensions of evaluating corporate gifts. That is, criteria that define the ethical nature of corporate gifts.
The context is determined by the circumstance in which a corporate gift is given. The content refers to what is given as a corporate gift.
Culture refers to the acceptability and compliance of the practice of providing corporate gifts in a particular company and location.
This practice of providing corporate gifts can be seen as unethical if such gifts are given for the purpose of bribery, gaining privileged information or anything that leads a party to engage in unethical behavior.
Therefore, the three dimensions of corporate gift valuation will help to maintain ethics as a regulatory and guiding concept in the practice of providing gifts.
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Coronado Industries purchased equipment in 2019 at a cost of $912000. Two years later it became apparent to Coronado Industries that this equipment had suffered an impairment of value. In early 2021, the book value of the asset is $583000 and it is estimated that the fair value is now only $360000. The entry to record the impairment is
Answer and Explanation:
The journal entry to record the impairment is as follows:
Loss on impairment of equipment $223,000 ($583,000 - $360,000)
To Accumulated depreciation- Equipment $223,000
(Being the impairment is recorded)
Here the loss would be debited as it increased the losses and accumulated depreciation is credited as it decreased the assets
On November 1, 2020, Stellar Company adopted a stock-option plan that granted options to key executives to purchase 31,800 shares of the company’s $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $477,000. All of the options were exercised during the year 2023: 21,200 on January 3 when the market price was $68, and 10,600 on May 1 when the market price was $77 a share. Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 202
Answer:
2021 No entry
The total compensation cost is the amount of $477,000
2021
Dr Compensation Expense 238,500
Cr Paid-in Capital- Stock Options 238,500
2022
Dr Compensation Expense 238,500
Cr Paid-in Capital- Stock Options238,500
1/3/2023
Dr Cash 848,000
Dr Paid-in capital - Stock Options 318,000
Cr Common Stock 190,800
Cr Paid-in Capital in Excess of par 975,200
5/1/2023
Dr Cash 424,000
Dr Paid-in Capital - Stock Options 159,000
Cr Common Stock 95,400
Cr Paid-in Capital in Excess of Par 487,600
Explanation:
Preparation of the journal entries relating to the stock option plan for the years 2021, 2022, and 2023.
2021 No entry
The total compensation cost is the amount of $477,000
2021
Dr Compensation Expense 238,500
Cr Paid-in Capital- Stock Options 238,500
(1/2 * $477,000)]
(Being To record compensation expense for 2021)
2022
Dr Compensation Expense 238,500
Cr Paid-in Capital- Stock Options238,500
(1/2 * $477,000)
(Being To record compensation expense for 2022)
1/3/2023
Dr Cash 848,000
(21,200 * $40)
Dr Paid-in capital - Stock Options 318,000
($477,000 *(21,200/31,800))
Cr Common Stock 190,800
(21,200 * $9)
Cr Paid-in Capital in Excess of par 975,200
[848,000+318,000-(190,800)]
(Being To record issuance of 21,200 shares of $9 par value stock upon exercise of option price set at $40)
5/1/2023
Dr Cash 424,000
(10,600 *$40)
Dr Paid-in Capital - Stock Options 159,000
($477,000 * (10,600/31,800))
Cr Common Stock 95,400
(10,600*$9)
Cr Paid-in Capital in Excess of Par 487,600
[424,000+159,000-(95,400)]
(Being To record issuance of 10,600 shares of $9 par value stock upon exercise of option price set at $40)
Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data are available:
Total Revenues $ 133,000
Operating Expenses 90,700
Cash 31,800
Accounts Receivable 25,500
Supplies 41,100
Accounts Payable 24,500
Common Stock 31,600
No dividends were declared or paid during January.
a. Does Miami Music Corporation have sufficient resources to pay its liabilities?
Yes
No
b. Which financial statement indicates this?
i. Income Statement
ii. Statement of Retained Earnings
iii. Balance Sheet
iv. Statement of Cash Flows
Answer:
a. Does Miami Music Corporation have sufficient resources to pay its liabilities?
Yesb. Which financial statement indicates this?
iii. Balance SheetThe balance sheet shows that total accounts payable are $24,500. The company's liquid assets are much higher, especially cash which is $31,800. The company should have enough resources to pay all its liabilities. it is also a profitable company.
Explanation:
Based on the entries in the books of this company, the following are true:
a. Yes they do.b. Balance Sheet. How do we know the company can pay off its debt?Paying off liabilities requires current assets to be larger than liabilities.
The current assets of Account Receivable ($25,500) and Cash ($31,800) are both larger than the Accounts Payable of $24,500. The company can therefore pay off liabilities.
All three accounts are found in the Balance Sheet.
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At December 31, 2026, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 103 on January 1, 2028, what is the gain or loss on early extinguishment
Answer:
$25,800
Explanation:
The bonds would mature at the end of the year 2028, which means in 2 years, as result, annual discount amortization is computed thus:
annual discount amortization=$50,000/2=$25,000
On January 1,2028, the balance in discount amortization is $25,000
Proceeds for 60% redemption=$600,000*60%*103%=$370,800
60% of bonds payable=$600,000*60%=$360,000
60% of unamortized discount=60%*$25,000=$15,000
In effecting the journal entries, bonds payable is debited with $360,000 while cash and discount on bonds payable are credited with $370,800 and $15,000 respectively.
Total credits=$370,800+$15,000=$385,800
total debit=$360,000
loss on early extinguishment is $25,800($385,800-$360,000)
magine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same, or less than today?
Answer:
less than today
Explanation:
Inflation is the general increase in consumer prices in the economy. When prices are increasing, the purchasing power of a currency decreases. A 3 percent inflation rate indicates that prices of goods and services have increased by an average of 3 percent.
Interest rate expresses the rate at which money saved is growing per year. A 5 percent interest rate means that the amount in the account will increase by 5 percent.
For there to be a real increase in the money saved, the interest rate must be higher than the inflation rate. A high-interest rate compensates for the increase in prices.
Suppose that, in a competitive market without government regulations the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Choices for Price Control is:________.
A. Price ceiling
B. Price floor
Choices for Binding or Not is:_______.
A. Binding
B. Non-Binding
Statement Price Control Binding or Not
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum wage law
___________ ___________
The government prohibits gas stations from selling gasoline for more than $2.70 per gallon
___________ ___________
The government has instituted a legal minimum price of $2.70 per gallon for gasolone.
___________ ___________
Answer:
price floor , binding
price ceiling binding
price floor , non binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price
Because firms are unable to hire workers due to the minimum wage laws., it means it is binding price floor
Equilibrium price is $3 and the maximum price is $2.70 . Thus, it is a binding price ceiling
Equilibrium price is $3 and the minimum price is $2.70 . Thus, it is a binding floor
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 64,000 EPBO, December 31 $ 68,480 Interest rate 7 % Funding and plan assets None What is the service cost to be included in the current year's postretirement benefit expense?
Answer:
$3,424
Explanation:
Calculation for What is the service cost to be included in the current year's postretirement benefit expense
Service cost=December 31 $ 68,480*1/20 years
Service cost=$3,424
Therefore the service cost to be included in the current year's postretirement benefit expense will be $3,424
The following cost information shows that as production increases, Quantity produced/day Total Cost 0 $2,000 1 $2,500 2 $2,800 3 $3,300 4 $4,100 5 $5,300 6 $7,000 Group of answer choices average total cost decreases and then increases. average fixed cost increases. Total cost is increasing slower and slower. marginal cost falls.
Answer:
The following cost information shows that as production increases, the
average total cost decreases and then increases.
Explanation:
a) Data and Calculations:
Quantity Total Cost Marginal Average
produced/day Cost Total Cost
0 $2,000 $2,000 $0
1 $2,500 $500 $2,500
2 $2,800 $300 $1,400
3 $3,300 $500 $1,100
4 $4,100 $800 $1,025
5 $5,300 $1,200 $1,060
6 $7,000 $1,700 $1,167
b) The average total cost is the total cost divided by the quantity produced per day. When no unit was produced, the company still incurred some cost, known as fixed cost for production infrastructure, etc. As the quantity produced increases, the average total cost tends to decrease until the quantity increased to 5 units. Perhaps, the factory capacity was exceeded at this point. No wonder the entity recorded an increase in the average total cost.
Isaac Inc. began operations in January 2018. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2018, Isaac had $688 million in sales of this type. Scheduled collections for these sales are as follows:
2018 $ 60 million
2019 120 million
2020 120 million
2021 150 million
2022 150 million
$ 600 million
Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2019, what deferred tax liability would Isaac report in its year-end 2019 balance sheet?
a. $126 million.
b. $54 million.
c. $144 million.
d. $180 million.
Answer:
a. $126 million.
Explanation:
The computation of the deferred tax liability is as follows
Particulars 2018 2019
(in $ millions)
Income for
Finan reporting 600 0
Income for income
tax purpose 60 120
Difference 540 120
Opening balance 162
of dtl
Dtl creation
(30% of 540) 162 0
Reversal of dtl
(30% of 120) 0 -36
Ending balance 162 126
The Longmeadow Painting Company begins operations on July 1, 2015. During July, the company records the following activities:
The company earns $12,000 from painting houses, all paid in cash.
The company uses $2,000 in paint and $400 in supplies.
The company pays employees $8,000 cash for labor provided during the month.
The company purchases paint at a total cost of $2,500, paying cash.
The company has other expenses, including insurance and business fees, of $200.
Fill in the following income statement for Longmeadow Painting incorporating the above activities. Do NOT enter S signs, just numbers.
Hint: Are supplies used part of Cost of Goods Sold?
Review course note 1B if you are not surel
Longmeadow Painting Co.
Income Statement
For the month ended July 31, 2015
Revenue
Expenses
Cost of goods sold
Gross Profit
Wage expense
Supplies expense
Other expense
Net Income
Answer:
Longmeadow Painting Co.
Income Statement
For the month ended July 31, 2015
Revenue 12,000
Expenses
Cost of goods sold 2,000
Gross Profit 10,000
Wage expense 8,000
Supplies expense 400
Other expense 200
Net Income 1,400
Explanation:
a) Supplies used are not part of Cost of Goods Sold. They are regarded as expenses and not directly related to the painting done for customers, but are materials used in the running and administration of the business.
b) There is an Ending Inventory of paint worth $500 ($2,500 - $2,000), which is the difference between the purchases of paint and the paint used during the month. This will form part of the Balance Sheet assets because the Cost of Goods Sold only considered the paint used and not the purchases.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
a. Hubert buys a sweater made in Guatemala.
b. Kate's father in Sweden orders a bottle Of Vermont maple syrup from the producer's website.
c. The State of Pennsylvania repaves highway PA 320, Which goes through the center Of Swarthmore.
d. Kate gets a new refrigerator made in the United States.
e. Hubert's employer upgrades all of its computer systems using U.S.-made parts.
Answer:
GDP is the total market value of all the goods and services produced in a country at a given period of time. The five components of GDP are:
Explanation:
1. Consumption (C) : This involves all the private consumption spending or consumer spendings on goods and services such as on groceries, jewelry and clothing.
Kyoko gets a new refrigerator made in the United States - This is a form of consumption because the commodity is produced, bought and also consumed within domestic boundaries. Consumption includes durable goods, non-durable goods as well as services.
2. Investment (I) : This involves the private domestic investment and/or capital expenditure. This is incurred when businesses spend money to invest in their business activities.
Jacque’s employer upgrades all of his computer systems using U.S made parts - The money spent on upgrading computer systems will help increase the productivity and efficiency of business processes in the long run, hence is a form of investment.
3. Government spending (G) : This relates to government consumption expenditures and gross investment. Involves government spending on equipment, infrastructure and payroll.
The State of Pennsylvania replaces highway PA320, which goes through the center of Swathmore - The government has utilized its fund to construct a highway, which is an example of improving its infrastructure and benefiting the public, hence a form of government spending.
4. Exports (X) : Goods and services produced domestically, that are bought by those in other countries.
Kyoko’s father in Sweden orders a bottle of Vermont maple syrup from the producer’s website - This is a form of an export because the syrup that is produced domestically is being sold to someone in another country.
5. Imports (M) : The goods and services produced by another country which are brought into the domestic country.
Jacques buys a sweater made in Guatemala - This is a form of imports since it is produced outside domestic borders and is being purchased to be consumed within the country.