The summary journal entry for Swifty Electrical Repair Company's payroll for the year ended December 31, 2022, is as follows:
Debit:
Administrative salaries: $184,000
Electricians' wages: $370,000
FICA taxes payable: $37,421
Federal income taxes withheld: $177,000
State income taxes withheld: $16,620
United Fund contributions payable: $26,728
Health insurance premiums: $18,500
Credit:
Cash (or Wages payable): $554,000
FICA taxes payable: $37,421
Federal income taxes payable: $177,000
State income taxes payable: $16,620
United Fund contributions payable: $26,728
Health insurance premiums payable: $18,500
In the summary journal entry, we record the gross earnings and deductions for Swifty Electrical Repair Company's payroll for the year. The debit side includes the amounts of administrative salaries, electricians' wages, FICA taxes payable, federal income taxes withheld, state income taxes withheld, United Fund contributions payable, and health insurance premiums. These amounts represent the expenses and liabilities associated with the payroll.
On the credit side, we record the corresponding amounts for cash (or wages payable) and the various payable accounts such as FICA taxes, federal income taxes, state income taxes, United Fund contributions, and health insurance premiums. These accounts represent the liabilities to be paid or remitted based on the deductions made from the gross earnings.
The entry ensures that the expenses are properly recognized, and the liabilities are accurately recorded for the payroll transactions of the year.
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Which of the following is true of the opening time of a business?
a.The opening of a new business does not depend on the competitors' moves
b.The timing of start is a function of the general environment and lifestyle issues.
c.Entrepreneurs should realize that businesses depend on similar conditions for opening.
d.One should open a business during or at the beginning of a recession.
The timing of the opening of a business is influenced by various factors, including competitors' moves, the general environment, lifestyle issues, and economic conditions.
b. The timing of start is a function of the general environment and lifestyle issues: This statement is true. When deciding on the opening time of a business, entrepreneurs often consider factors such as market conditions, consumer behavior, economic trends, and lifestyle preferences. They analyze the general environment to determine the optimal time to launch their business and align it with customer needs and trends.
a. The opening of a new business does not depend on the competitors' moves: This statement is not necessarily true. Competitors' actions and market dynamics can influence the decision to open a new business. Entrepreneurs need to assess the competitive landscape, including the actions of existing businesses and potential competitors, to determine the viability and differentiation of their own venture.
c. Entrepreneurs should realize that businesses depend on similar conditions for opening: This statement is not entirely accurate. While some businesses may have similar considerations for opening, such as market demand or economic factors, every business is unique, and the specific conditions for opening can vary widely depending on the industry, target market, business model, and other factors.
d. One should open a business during or at the beginning of a recession: This statement is not universally true. The decision to open a business during a recession depends on various factors, including the nature of the business, market conditions, available resources, and risk tolerance. While some opportunities may arise during economic downturns, opening a business during a recession can also present challenges and risks.
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Lipto Biomedical has credit sales of $740,000 yearly with credit terms of net 60 days, with an average collection period of 75 days. Lipto does not offer a discount for early payment.
A) What is the average receivables balance? What is the receivables turnover?
B) If Lipto offered a 3 percent discount for payment in 10 days and every customer took advantage of the new terms and paid on the tenth day, what would the new average receivables balance be? Use the full sales of $740,000 for your calculation of receivables.
C) If Lipto reduces its bank loans, which cost 8 percent, by the cash generated from reduced receivables, what will be the net gain or loss to the firm? Should it offer the discount?
D) Assume the new trade terms of 3/10, net 30 will increase sales by 12 percent because the discount makes Lipto price competitive. If Lipto earns 19 percent on sales before discounts, should it offer the discount?
A) What is the average receivables balance? What is the receivables turnover?The average receivables balance can be determined by the following formula:Avg Receivables = (Sales / 365) x (Avg Collection Period)Avg Receivables = ($740,000 / 365) x 75Avg Receivables = $151,781.51The receivables turnover ratio can be determined by dividing net credit sales by the average accounts receivable.
Turnover = (Sales) / (Avg Receivables)Turnover = $740,000 / $151,781.51Turnover = 4.87B) If Lipto offered a 3 percent discount for payment in 10 days and every customer took advantage of the new terms and paid on the tenth day, what would the new average receivables balance be? Use the full sales of $740,000 for your calculation of receivables.If customers take advantage of the discount, they will pay within 10 days instead of 60 days.
The calculation for the new average receivables balance is as follows:New Avg Receivables = [(0.97 x $740,000 x 10/365) + (0.03 x $740,000 x 55/365)]New Avg Receivables = $136,356.16C) If Lipto reduces its bank loans, which cost 8 percent, by the cash generated from reduced receivables, what will be the net gain or loss to the firm? Should it offer the discount?The amount of cash that will be generated from reduced receivables is:Cash generated from discount = $151,781.51 - $136,356.16Cash generated from discount = $15,425.35The cost of the bank loan can be computed as:Bank loan cost = ($151,781.51 x 0.08)Bank loan cost = $12,142.52Net gain or loss from offering the discount is therefore:Net gain or loss = Cash generated from discount - Bank loan costNet gain or loss = $15,425.35 - $12,142.52Net gain or loss = $3,282.83Since Lipto would gain $3,282.83, it is recommended that they offer the discount.D) Assume the new trade terms of 3/10, net 30 will increase sales by 12 percent because the discount makes Lipto price competitive. If Lipto earns 19 percent on sales before discounts, should it offer the discount?Lipto’s current receivables turnover is 4.87 times per year, with an average collection period of 75 days. If the new trade terms are implemented, the average collection period would reduce to 20 days. The new receivables turnover ratio is:New Turnover = 365 / Avg Collection PeriodNew Turnover = 365 / 20New Turnover = 18.25With the new turnover ratio, Lipto’s sales would increase from $740,000 to $829,600 ($740,000 x 1.12). Their net gain from the new discount is therefore:Net Gain = $829,600 x 0.19 - ($829,600 x 0.97 x 0.03)Net Gain = $148,944 - $23,815.68Net Gain = $125,128.32Since Lipto will have a net gain of $125,128.32, it is recommended that they offer the discount.
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*Use the high-low method*
Mason Company uses the high-low method to predict its total
overhead costs. Past records show that total overhead cost was
$25,000 for 800 labour hours worked and $27,500 for
The expected total overhead cost for working 825 labor hours next month is $25,625.
To calculate the expected total overhead cost using the high-low method, we need to determine the variable cost per labor hour and the fixed cost component.
First, we calculate the variable cost per labor hour:
Variable cost per labor hour = (High cost - Low cost) / (High hours - Low hours)
= ($27,500 - $25,000) / (900 hours - 800 hours)
= $2,500 / 100 hours
= $25 per labor hour
Next, we determine the fixed cost component using the high or low data point. Let's use the high data point:
Fixed cost = High cost - (Variable cost per labor hour × High hours)
= $27,500 - ($25 per labor hour × 900 hours)
= $27,500 - $22,500
= $5,000
Now, we can calculate the expected total overhead cost for 825 labor hours:
Expected total overhead cost = Fixed cost + (Variable cost per labor hour × Expected labor hours)
= $5,000 + ($25 per labor hour × 825 hours)
= $5,000 + $20,625
= $25,625
Therefore, the expected total overhead cost for working 825 labor hours next month is $25,625. This estimation is based on the assumption that the relationship between labor hours and overhead costs remains consistent within the relevant range identified by the high and low data points.
Note:The Complete question is:
*Use the high-low method*
Mason Company uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,000 for 800 labour hours worked and $27,500 for 900 labour hours worked.
If Mason Company plans to work 825 labour hours next month, what is the expected total overhead cost?
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which of the following costs is an example of a fixed cost? question content area bottom part 1 a. delivery costs b. direct materials c. sales commissions d. salary of plant manager
The following costs are an example of fixed costs is the salary of the plant manager.
The option (D) is correct.
Fixed costs are expenses that don't shift with the degree of creation or deals. The plant supervisor's compensation is normally a foreordained sum that stays steady no matter what the volume of creation or deals. Conveyance costs, direct materials, and sales commissions.
It recurs in the same amount per period over the valuable lifetime of a resource and it can't be viewed as a variable expense since it doesn't fluctuate with movement volume. Instances of Fixed costs incorporate quite a few costs, including rental and rent installments, certain pay rates, protection, local charges, premium costs, depreciation, and some utilities.
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If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project’s payback period to be higher, lower, or the same?
a)Higher
b)Lower
c)Same
The project's payback period is the length of time required to recoup the initial investment through cash inflows. In this case, if the equipment has a salvage value of $300,000 at the end of five years, we need to assess the impact on the payback period.
If the equipment has a salvage value, it means that at the end of the project's life (five years in this case), there will be an additional cash inflow of $300,000. This salvage value acts as a reduction in the overall investment needed to be recouped. Therefore, with a salvage value, the project's payback period is expected to be lower. The salvage value effectively reduces the net initial investment and shortens the time required to recover the remaining cash outflows. As a result, the project is expected to generate a positive cash flow sooner, enabling a quicker payback period compared to a scenario without salvage value. Thus, the correct answer is b) Lower.
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Find functions f and g so that fog=H.
H(x) = (4x+6)^7
By defining functions, f(x) = 4x + 6 and g(x) = x⁷, we achieve the desired composition fog = H(x) = (4x + 6)⁷.
Let's find functions f and g such that fog = H, where H(x) = (4x + 6)⁷.
To achieve this, we can decompose the function H(x) into two steps: the inner function f and the outer function g.
First, we can define the inner function f(x) as f(x) = 4x + 6. This function takes the input x, multiplies it by 4, and adds 6.
Next, we define the outer function g(x) as g(x) = x⁷. This function raises its input to the power of 7.
Now, if we take the composition of f and g, we have fog(x) = g(f(x)) = g(4x + 6).
Applying the outer function g to the inner function f, we have fog(x) = (4x + 6)^7, which is the same as H(x).
Therefore, we achieve the desired composition fog = H(x) = (4x + 6)⁷.
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10 Which is incorrect with respect to disability insurance? A A policy may have a non-cancellable provision which gives you the right to renew each year at the same premium with a change in benefits. B A policy with a guaranteed renewable provision gives you the right to renew the policy with the same benefits. C A policy's waiting period is a timeframe that must lapse from the time of disability until the time of receipt of disability income benefits. D A policy's benefit period determines the length of time of coverage.
The incorrect option with respect to disability insurance is a policy may have a non-cancellable provision which gives you the right to renew each year at the same premium with a change in benefits.
The correct answer to the given question is option A.
Disability insurance is a type of insurance that provides coverage to individuals who become disabled and are unable to work. There are several terms that need to be considered while buying a disability insurance policy such as the waiting period, benefit period, renewability, etc.
The incorrect option is A policy may have a non-cancellable provision which gives you the right to renew each year at the same premium with a change in benefits. This option describes the guaranteed renewable provision which provides the policyholder the right to renew the policy with the same benefits.
Whereas, the non-cancellable provision gives the policyholder the right to renew the policy each year at the same premium and with the same benefits. Thus, option A is incorrect with respect to disability insurance. Hence, the correct option with respect to disability insurance is A policy may have a non-cancellable provision which gives you the right to renew each year at the same premium and with the same benefits.
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_____ is the problem confronting the decision maker. It asks what the decision maker needs to do.
A. The research problem B. Problem definition C The environmental context of the problem D. The management decision problem
The problem confronting the decision maker that asks what the decision maker needs to do is known as the management decision problem. The correct option is D.
The management decision problem is the specific problem the researcher wishes to solve with the market research and it is the most important aspect of the research. It must be well defined and precisely stated. The management decision problem is different from the marketing research problem, which asks what information is needed to solve the management decision problem.
The management decision problem is the initial and foremost question that should be answered when a company is thinking about introducing a new product or service. It's the key question or issue that the researchers are attempting to address. The management decision problem is the question that management is trying to solve with the market research.The management decision problem is the first stage of market research and is a broad problem. The management decision problem requires market research to be conducted and is addressed with particular marketing research problems that require specific research methods and techniques to solve.
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If you believe that price of stock A will go up and the volatility of the underlying stock will decrease, what will you do?
The long straddle strategy can be a profitable way to take advantage of a stock price increase and a decrease in volatility. However, it is important to keep in mind that options trading involves risk.
If you believe that the price of stock A will go up and the volatility of the underlying stock will decrease, you can buy the stock and sell a straddle at the same time. This can be done through an option trading strategy called a long straddle. The long straddle involves buying both a call option and a put option with the same expiration date and strike price.
This strategy is used when an investor believes that the price of a stock will move significantly, but is uncertain which direction it will move. If the stock moves up, the investor can exercise the call option and profit from the price increase. If the stock moves down, the investor can exercise the put option and profit from the price decrease.In this case, selling the straddle helps to reduce the cost of the options.
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At a sales level of $285,000, the magnitude of operating leverage for Donuts Unlimited is 4.3. If number of units sold increase by 10%, profits will increase by
If number of units sold increase by 10% at a sales level of $285,000 and the magnitude of operating leverage for Donuts Unlimited is 4.3, profits will increase by 43%.
Operating leverage is the ratio of fixed costs to variable costs that a company incurs to produce its products or services. The magnitude of operating leverage is a measure of the company's risk that is derived from its fixed costs.
Profit is given by the equation:
Sales - Variable Costs - Fixed Costs
Profit is derived from the sales. As fixed costs do not change with changes in the level of sales, increasing the sales will increase the profits. The degree of change in profits that occurs with changes in sales is dependent on the magnitude of operating leverage.
A 10% increase in the number of units sold will lead to a 10% increase in sales. If the magnitude of operating leverage is 4.3, then a 10% increase in sales will lead to a 4.3 × 10% = 43% increase in profits.
Therefore, profits will increase by 43%.
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Which of these is NOT an earning category on a paystub?
A. Holiday
B. Regular
C. Medicare
D. Overtime
What section of Form I-9 is completed only in certain circumstances?
A. Section 1 (employee information portion)
B. Section 1 (attestation portion)
C. Section 2
D. Section 3
The answer is C. Medicare is not an earning category on a paystub.
A paystub typically provides a breakdown of an employee's earnings and deductions. The earning categories represent different types of income or compensation received by the employee. Common earning categories include regular wages, overtime pay, holiday pay, and various types of bonuses or commissions.
Medicare, on the other hand, is not an earning category but a deduction category. It represents the amount deducted from the employee's earnings for Medicare taxes, which help fund the healthcare program for eligible individuals.
Regarding the second question, the answer is D. Section 3 of Form I-9 is completed only in certain circumstances. Form I-9 is used to verify the identity and employment authorization of individuals hired for employment in the United States. Section 1 of the form is completed by the employee, providing personal information and attesting to their employment eligibility. Section 2 is completed by the employer or authorized representative, who verifies the employee's documentation.
Section 3 of Form I-9 is used for reverification and updating employment authorization in specific cases such as when an employee's work authorization document expires, or when their employment authorization is subject to temporary status or limited duration.
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What is not true regarding individual demand curve?
a. higher price implies less amount of quality demanded.
b. it can be also considered as a marginal benefit curve.
c. individual curves shows the behaviors of suppliers.
d. downward sloping.
The statement that is not true regarding individual demand curve is that "individual demand curve shows the behaviors of suppliers."
So, this is option C.
What is a demand curve?The graphical representation of the relationship between the quantity of goods demanded and their respective prices is known as a demand curve. It's a model that shows the relationship between price and quantity demanded.
The demand curve's downward slope indicates that the higher the price, the less the quantity of goods that will be demanded, whereas the lower the price, the greater the quantity of goods that will be demanded.
Therefore, the statement "higher price implies less amount of quantity demanded" is true.A marginal benefit curve can be considered a demand curve. It reflects the quantity of a good that a consumer is ready to purchase at various prices
Hence, the answer is c.
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The statement that is not true regarding individual demand curve is individual curves shows the behaviors of suppliers. Option c is correct.
In economics, a demand curve is a graphical representation of the demand for a good or service. It represents the relationship between the price of a good or service and the quantity demanded of it at any given time, holding all other factors constant.
The marginal benefit curve represents the additional benefit that an individual receives from consuming one more unit of a good or service. The individual demand curve is essentially a graphical representation of the marginal benefit curve for a given individual. It shows how the marginal benefit of a good or service varies as its price changes.
Therefore, c is correct.
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Question 2 For a given unit of labor, a country can produce either 78 bushels of wheat or 159 pounds of coffee. What is the country's opportunity cost of producing wheat in terms of coffee? Round your final answer to two decimal places (Ex. 0.00). 2.04 A Moving to another question will save this response.
The country's opportunity cost of producing wheat in terms of coffee is approximately 2.04.
To find the opportunity cost of producing wheat in terms of coffee, we need to determine how much coffee the country would have to give up in order to produce one unit of wheat.
The ratio of wheat to coffee production is 78 bushels of wheat to 159 pounds of coffee. We can calculate the opportunity cost by dividing the amount of coffee by the amount of wheat:
Opportunity cost of producing wheat in terms of coffee = 159 pounds of coffee / 78 bushels of wheat
Calculating this value:
Opportunity cost = 159 / 78 ≈ 2.04
Therefore, the country's opportunity cost of producing wheat in terms of coffee is approximately 2.04.
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Question 10 A partnership does not pay income tax, however each partner pays tax on his/her income. O True False
A partnership does not pay income tax, however, each partner pays income tax on his/her income is true.
Partnerships do not have to pay income tax on their income because it is not considered a separate entity by the Internal Revenue Service (IRS). Instead, the profits earned by the partnership are passed through to the partners who are then responsible for paying taxes on their share of the profits on their individual tax returns.
The profits earned by the partnership are split between the partners according to the partnership agreement. Each partner must pay taxes on his or her share of the profits on their personal tax return. The amount of tax paid by each partner is based on their individual tax rate.
Each partner in a partnership is required to report their share of the partnership's profits on their personal tax return and pay taxes based on their individual tax rate.
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The expected return for the general market is 15%, and the risk premium is 10%. The beta of Ncell is 1.25. What is the required rate of return for Ncell? O 23.75% O 11.25% O 12.50% O 17.50%
Given data:Expected return for the general market = 15%Risk premium = 10%Beta of Ncell = 1.25Formula:Required rate of return = Risk-free rate + (Market return - Risk-free rate) × Beta cell is the company.
Beta is 1.25. Beta is the risk of Ncell relative to the market. We are given the expected return for the market, which is 15%, and the risk premium, which is 10%. The risk-free rate is not given, we can assume it is 5%.We can use the formula for required rate of return which is,Required rate of return = Risk-free rate + (Market return - Risk-free rate) × BetaRequired rate of return = 5 + (15 - 5) × 1.25Required rate of return = 5 + 10 × 1.25Required rate of return = 5 + 12.5Required rate of return = 17.5%Hence, the required rate of return for Ncell is 17.5%.
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1. What are some common (real world) examples of intermodal
transportation? Briefly describe how each works
Intermodal transportation is mostly used for bulky and heavy goods that cannot be transported through road and rail. Barge transportation is economical as it does not require much fuel and can carry large quantities of cargo.
Intermodal transportation is the mode of moving freight from the shipper to the receiver by utilizing two or more means of transportation without handling the cargo while changing modes. There are several real-world examples of intermodal transportation that help the cargo or freight in an efficient manner, such as:1. Air Cargo- The use of air transportation in freight movement is known as air cargo.
This method of transport is used to move time-sensitive and high-value goods. Air freight is an important mode of transport for perishable goods, machinery, electronic components, and the automotive industry.2. Rail and Truck Transportation- One of the most common intermodal transportation examples is the movement of goods through rail and truck. Rail is one of the most efficient modes of transportation for large and heavy goods.
Once the goods reach the rail station, they are loaded into a container and shipped to the nearest hub station. From the hub, they are transported through a truck to the final destination.3. Road and Ship Transportation- Intermodal transportation can also take place through the use of road and ship transportation. This method is best suited for heavy and bulky cargo. The cargo is loaded onto a truck and transported to the port.
The cargo is then loaded onto a ship and transported to the destination country or continent. Once the cargo arrives at the port, it is loaded onto a truck and transported to the final destination.4. Barge and Truck Transportation- Once the goods reach the destination port, they are loaded onto a truck and transported to the final destination.
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What is the difference between the interpretations of parameters of a linear model, semi-log model, and log-log model?
The difference between the interpretations of parameters of a linear model, semi-log model, and log-log model are given below:
Linear model:In the case of a linear model, the equation is given by y = β0 + β1x1 + ε
where y is the dependent variable and x1 is the independent variable. β0 is the y-intercept or the point where the line crosses the y-axis when x1 equals 0. β1 is the slope of the line or the amount that y changes for a one-unit increase in x1.
Semi-log model:In the case of a semi-log model, the equation is given by ln(y) = β0 + β1x1 + ε
where y is the dependent variable and x1 is the independent variable. β0 is the point where the line intersects the y-axis when x1 equals 0. β1 is the elasticity of y with respect to x1 or the percentage change in y for a one-unit increase in x1.
Log-log model:In the case of a log-log model, the equation is given by ln(y) = β0 + β1ln(x1) + ε
where y is the dependent variable and x1 is the independent variable. β0 is the point where the line intersects the y-axis when x1 equals 1. β1 is the elasticity of y with respect to x1 or the percentage change in y for a one percent increase in x1.
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Explain why expectations of future output, tax and interest rates make the IS curve steeper.
Suppose there is trade tension between Australia and its major trading partners. As a result, a higher tariff will be placed on Australian exports. Use the IS-LM and AS-AD framework to analyze the effects of this trade tension on the Australian economy. (hint: Australian net exports would fall)
The IS curve is the combination of all of the various combinations of output and interest rates that lead to an equilibrium in the goods and services market, while the LM curve shows all of the possible combinations of output and interest rates that make the money market balance.
The steepness of the IS curve is determined by the slope of the consumption and investment schedules.In terms of the IS curve, when expectations of future output are high, it will cause firms to be more optimistic and will therefore increase their current investment levels. As a result, the IS curve will be steeper. When tax rates rise, households have less money to spend, causing a decline in consumption spending and a shift in the IS curve to the left. Finally, an increase in interest rates will cause consumption and investment expenditures to decrease, and the IS curve will shift to the left.
All of these factors contribute to the steepness of the IS curve.When tariffs are imposed on Australian exports, the country's net exports will decrease.
This will cause a leftward shift in the aggregate demand (AD) curve. As a result, the equilibrium output and interest rate will decrease. As a result, the economy will experience a decrease in GDP and a decrease in the interest rate. The IS-LM model can also be used to analyze the effects of trade tension on the economy.
The IS curve would shift to the left, as mentioned earlier. The LM curve, on the other hand, will not shift because monetary policy has remained constant. As a result, the interest rate will fall, causing the money market to shift to the right. As a result, the equilibrium level of output will fall, causing the LM curve to shift to the left to re-establish equilibrium in the money market.
As a result, the economy will fall further below full-employment equilibrium.Finally, the AS-AD framework can be used to analyze the impact of trade tension on the Australain economy. A leftward shift in the AD curve will cause the short-run aggregate supply (SRAS) curve to shift to the left as well. The economy will experience a decrease in output and an increase in price levels as a result of this.
As a result, the economy will be stuck in a recessionary gap until the SRAS curve shifts back to its original position. As a result, the economy's level of output will rise, and the price level will fall.
In conclusion, when expectations of future output, tax, and interest rates rise, the IS curve becomes steeper. When tariffs are imposed on Australian exports, the country's net exports will decrease, causing a leftward shift in the AD curve. The IS-LM and AS-AD models can be used to analyze the impact of trade tension on the Australian economy. The economy will fall into a recessionary gap as a result of trade tension.
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Suppose a firm under perfect competition has the following total cost function: TC = 2q+0.5q² and a marginal cost of MC=2+q If the market price is $2 then this firm will make $ in profit and should the industry +2, stay -2, exit -4, exit O 0, stay
The firm being under perfect competition having a total cost function of TC = 2q+0.5q² and marginal cost of MC=2+q , the firm will make a profit of $0 and the industry should stay. The correct answer is option D.
The firm under perfect competition has the following total cost function:
TC = 2q+0.5q² and a marginal cost of MC=2+q;
The market price is $2.
For perfect competition, if the market price is equal to the marginal cost, then the firm will be making only normal profit.
Let's put these values in the given information.
Since the marginal cost is MC = 2+q, and the total cost function is TC = 2q+0.5q². The average total cost (AC) is given by AC = TC/q
Let's substitute the given values:
AC = (2q + 0.5q²)/q = 2 + 0.5q
Now, since AC = price in perfect competition, we get2 + 0.5q = 2 => 0.5q = 0 => q = 0
We need to determine the profit of the firm:
Profit = total revenue - total cost
Revenue = price * quantity sold = 2 * 0 = 0
Total cost = TC = 2q+0.5q² = 2 * 0 + 0.5 * 0 = 0
Therefore, profit = 0 - 0 = 0
The industry is in perfect competition, where the firms make only normal profit.
Hence, the answer is (d) $0, stay.
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2 2.57 points Exercise 6-8 (Algo) Petty cash fund with a shortage LO P2 Waupaca Company establishes a $390 petty cash fund on September 9. On September 30, the fund shows $120 in cash along with receipts for the following expenditures: transportation-in, $50; postage expenses, $62; and miscellaneous expenses, $145. The petty cashier could not account for a $13 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $450. No 1 2 3 Date September 09 September 30 October 01 Petty cash Cash Merchandise inventory Postage expense Miscellaneous expenses Cash over and short Petty cash Cash Answer is not complete. General Journal 3000 ›› Debit 390 50 ✓ 62 ✓ 145✓ 13✓ 70 x Credit 390✔ 70 x
To address the situation described, we need to prepare the necessary journal entries for establishing the petty cash fund, reimbursing the fund, and increasing the fund amount.
1. September 9: Establishing the Petty Cash Fund
On September 9, the company establishes the petty cash fund. The entry would typically involve debiting the Petty Cash account and crediting the Cash account for the same amount. In this case, the petty cash fund is set at $390.
Journal entry:
Date: September 9
Account Debit Credit
Petty Cash $390
Cash $390
2. September 30: Reimbursing the Petty Cash Fund
On September 30, the petty cash fund is reimbursed to replenish it for the expenditures made during the month. The receipts for transportation-in, postage expenses, and miscellaneous expenses are used to determine the amount to be reimbursed. The petty cashier is unable to account for a $13 shortage in the fund, which is treated as an expense called "Cash Over and Short."
Journal entry:
Date: September 30
Account Debit Credit
Postage Expense $62
Miscellaneous Expense $145
Transportation-in $50
Cash Over and Short $13
Cash $270
The debits to the expense accounts reflect the nature of the expenses incurred, while the cash over and short amount is recognized as an expense to account for the discrepancy in the petty cash fund. The total debits to the expense accounts amount to $257 ($62 + $145 + $50), and when combined with the cash over and short expense of $13, the total expense reimbursed is $270.
3. October 1: Increasing the Petty Cash Fund
On October 1, the company decides to increase the petty cash fund to $450. This is done by debiting the Petty Cash account and crediting the Cash account for the additional amount.
Journal entry:
Date: October 1
Account Debit Credit
Petty Cash $60
Cash $60
The debit of $60 to the Petty Cash account increases the fund to $450, while the Cash account is credited for the same amount.
Please note that the missing account information is indicated by "x" in the table provided. In practice, you would need to fill in the appropriate account names for the entries based on the company's chart of accounts.
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If Country R has less income inequality than Country T, which of the following must be true?
Country R will have greater wealth overall.
Country T will have greater wealth overall
. Country R will have more people in poverty than Country T.
Country R will have a higher Gini coefficient than Country T.
Country R will have a lower Gini coefficient than Country T.
Country R will have a lower Gini coefficient than Country T if it has less income inequality.
If Country R has less income inequality than Country T, it means that the distribution of income in Country R is more equal compared to Country T. Based on this information, the following statements can be evaluated:
1. Country R will have greater wealth overall: This statement cannot be determined solely based on the information given. Income inequality does not directly indicate the overall wealth of a country. It is possible for a country with less income inequality to have a lower overall wealth if the majority of the population has lower income levels.
2. Country T will have greater wealth overall: This statement cannot be determined solely based on the information given. Similar to the previous statement, income inequality alone does not determine the overall wealth of a country. Country T could have a higher overall wealth, but still experience higher income inequality.
3. Country R will have more people in poverty than Country T: This statement cannot be determined solely based on the information given. Income inequality does not necessarily correlate with the number of people in poverty. Both countries could have varying poverty rates, regardless of their income inequality levels.
4. Country R will have a higher Gini coefficient than Country T: This statement is incorrect. A lower Gini coefficient indicates less income inequality. Therefore, if Country R has less income inequality, it would have a lower Gini coefficient than Country T.
5. Country R will have a lower Gini coefficient than Country T: This statement is true. As mentioned earlier, less income inequality corresponds to a lower Gini coefficient. Therefore, if Country R has less income inequality than Country T, it would have a lower Gini coefficient.
In conclusion, the correct statement is that Country R will have a lower Gini coefficient than Country T, indicating less income inequality. The other statements cannot be determined solely based on the given information and are not necessarily true.
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some manufacturing companies prefer to sell only high-priced specialty products online because: group of answer choices the warehousing costs for specialty products can erode any profits to be made from their sales. the customers are not able to purchase specialty items from store locations. the companies do not wish to enter into a direct competition with its wholesale and retail partners. the companies want their customers to use online banking rather than cash for the transaction.
Manufacturing companies that specialize in high-priced products sometimes choose to sell their products exclusively online for many reasons.
The first reason is that selling these specialty products online eliminates the need for a physical store, which can reduce overhead costs. This also allows companies to focus on their online presence, building a customer base and marketing their products through digital advertising. It also helps companies to reach their target audience more effectively, as they can tailor their marketing strategies and product offerings to specific customers who are looking for premium products.
Additionally, selling exclusively online can help manufacturing companies to avoid competition with their retail and wholesale partners. By focusing on the online market, they can avoid direct competition and instead collaborate with these partners to build a stronger business network. Finally, by selling exclusively online, companies can encourage customers to use online banking for transactions.
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FILL THE BLANK. "4. A firm's year-end retained earnings balances are $650,000 and
$530,000, for 2019 and 2020 respectively. The firm paid $15,000 in
dividends in 2020. The firm's net profit after taxes in 2020 was
___"
To determine the net profit after taxes in 2020, we need to calculate the change in retained earnings from 2019 to 2020, taking into account the dividends paid.
Change in Retained Earnings = Retained Earnings 2020 - Retained Earnings 2019
Change in Retained Earnings = $530,000 - $650,000
Change in Retained Earnings = -$120,000
The change in retained earnings represents the net profit after taxes for 2020. Therefore, the net profit after taxes in 2020 is -$120,000.
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How can a country (kuwait) overcome the resourse curse?
Resource curse is defined as the paradoxical situation where countries with abundant natural resources tend to have lower economic growth and are more prone to corruption and political instability.
To overcome the resource curse, a country such as Kuwait should take the following steps: Developing economic diversification initiatives: Countries should engage in economic diversification programs that encourage a broader range of economic activities. Kuwait, for example, has the opportunity to leverage its oil resources to create other industries such as tourism and technology investment initiatives.
Kuwait should also improve the efficiency and productivity of its oil industry by implementing new technologies and practices that reduce production costs and increase output. Implementing good governance reforms: Countries should also improve their governance systems by implementing reforms that promote transparency, accountability, and citizen participation.
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Which of the following variables includes a money component? A. Real interest rate B. None of the variables above include a money component. C. Nominal GDP D. Unemployment E. Real GDP
The variable that includes a money component is Nominal GDP. The correct option is C.
The total value of goods and services produced within an economy calculated at current prices is represented by nominal GDP. It incorporates the financial value of all finished goods and services and thus includes the financial component.
Nominal GDP is a variable with a monetary component because it captures both the real output of the economy and the exchange rates at which these goods and services are sold. The other factors like real GDP, real unemployment and real interest rate do not directly take into account the money component. The correct option is C.
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The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 450,250 $ 413,750 Land 785,250 1,091,250 Buildings 1,920,000 2,292,750 Customer relationships 0 846,000 Accounts payable (109,500 ) (109,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (399,500 ) Revenues (433,500 ) Expenses 287,000 Arturo Company pays $3,460,000 cash and issues 29,100 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $29,600 and Arturo pays $50,800 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Westmont Company had book and fair values of various items as of March 1. The fair values of inventory, land, and buildings were more than the book value, whereas the fair value of customer relationships was less than the book value. In a merger.
Arturo Company pays $3,460,000 cash and issues 29,100 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock. The stock issue costs and legal fees to complete the transaction are $29,600 and $50,800, respectively.
Journal Entries:
Date Accounts and Explanation Debit Credit Mar.
1. Inventory$413,750Land$1,091,250Buildings$2,292,750Customer relationships$846,000Accounts payable$109,500Common stock ($2 par)$2,000,000Additional paid-in capital$500,000Retained earnings, 1/1$399,500Revenues ($433,500 - $287,000)146,500Expenses$287,000
Gain on sale of assets ($4,000)($329,750)To record the fair value of assets and liabilities (excluding common stock).Mar. 1Goodwill$2,147,550Accounts payable$109,500Cash$3,460,000Common stock ($2 par value)58,200
Additional paid-in capital$1,407,400.
To record the acquisition of Westmont Company. Mar. 1Legal fees expense$50,800Cash$50,800To record legal fees. Mar. 1Stock issue cost$29,600Cash$29,600To record stock issue costs.
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Temporary, short term unemployment involving workers searching for jobs that await them is called unemployment. 1) frictional. 2) structural. 3) cyclical. 4) demand-pull.
Temporary, short term unemployment involving workers searching for jobs that await them is called frictional unemployment. Frictional unemployment is a type of unemployment that occurs when people are temporarily out of work.
Because they are changing from one job to another. It's the short-term unemployment experienced by workers who are looking for work that is appropriate for their skills or who are transitioning between careers. A significant portion of the unemployed is composed of frictional unemployment, which is normally considered a positive component of the economy because it indicates the labor market's efficiency in matching employees and employers. The other three types of unemployment are: Structural Unemployment:
This type of unemployment occurs as a result of technological or market changes that render the skills of some workers obsolete. In order to locate new work, these workers require training or a shift in occupations. Cyclical Unemployment: This type of unemployment occurs during economic downturns when aggregate demand is insufficient to provide employment for everyone who wants a job. Demand-pull Unemployment: This type of unemployment occurs as a result of rising prices or inflation, which reduces overall demand and causes layoffs.
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Julie and Kristen are partners in a local sporting good store. They needed $51,000 to start the
business. They invested in the ratio of 3:10 respectively. How much money did each invest?
What percent is owned by Kristen?
Answer: See explanation
Explanation:
Since the amount needed to start the
business is $51000 and Julie and Kristen invested in the ratio of 3:10 respectively.
Amount invested by Julie = 3/(3+10) × $51000
= 3/13 × $51000
= $11769.23
Amount invested by Kristen = 10/(3+10) × $51000
= 10/13 × $51000
= $39230.77
The percent that is owned by Kristen will be:
= ($39230.77 / $51000) × 100
= 76.92%
= 77% approximately
in dividend discount model , why the growth rate g is deducted from the required rate of return at denominator rather than multiplying (1 g) to the dividend at numerator in the equation?
In the Dividend Discount Model (DDM), the growth rate g is deducted from the required rate of return at the denominator rather than being multiplied by (1+g) and added to the dividend payout at the numerator for several reasons.
Firstly, the required rate of return represents the opportunity cost of investing funds in one stock rather than in another, and it should not include expected growth. Secondly, subtracting g from the required return ensures that the denominator represents the current market price of the security,
while adding (1+g) to the dividend payout would overvalue the stock by assuming growth indefinitely. Finally, this approach is consistent with the assumption that dividends are the primary source of returns for investors in the long run.
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Joanne and Melvin are putting the finishing touches on their 6cottages that they have recently built on their rural property in Southern Queensland. Each cottage is fully self-contained and sleeps up to 4 people. The cottages have amazing views over the nearby national park and immediate access to some of the region’s best bush walking trails. Joanne and Melvin are ready to prepare their marketing and promotional activities. Initially they plan to focus on middle income earners who reside in Queensland. They believe the cottages will appeal to all ages couples as well as families. However, they need to know more about their market so they can effectively position their cottages within a somewhat competitive market place.
a) While Joanne and Melvin have considered demographic and geographic segmentation criteria what other two criteria would you recommend they consider prior to promoting their cottages and why?
Besides the demographic and geographic segmentation criteria, Joanne and Melvin should consider the psychographic and behavioral segmentation criteria for promoting their cottages.
Psychographic segmentation criteria are a type of market segmentation that considers consumer lifestyles, personality characteristics, values, attitudes, interests, and behavior. By using psychographic segmentation, Joanne and Melvin can develop a more detailed picture of their customers' needs, motives, and behaviors. This will enable them to design marketing campaigns and promotional activities that will appeal to their customers. For example, if they find that their target market is more interested in eco-tourism, they could focus their promotions on eco-friendly and sustainable features and highlight their eco-friendly practices such as recycling and water conservation. Behavioral segmentation is a type of market segmentation that considers customers' purchasing behavior, usage rate, loyalty, and readiness to buy.
By using behavioral segmentation, Joanne and Melvin can develop marketing campaigns that will be more effective in targeting their customers. For example, if they find that their customers are more likely to stay for longer periods of time, they could offer package deals or discounts for longer stays. Similarly, if they find that their customers prefer to book online, they could offer online booking discounts or exclusive online promotions. Overall, considering psychographic and behavioral segmentation criteria can help Joanne and Melvin to more effectively position their cottages within a competitive marketplace.
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