Strategic trade policy Suppose there are only two producers of aircraft in the world, AirCraft in the United States and AirEurope in the European Union. The following hypothetical payoff matrices show the profits (in millions of dollars) for each company. In the absence of subsidies, if only one company makes aircraft, it receives a profit of $90 million. If both companies decide to produce, they each lose $2 million, when a company decides not to produce, it earns zero profit.
Air Europe
Produce Not Produce
AirCraft Produce 2,-2 90,0
Not Produce 0,90 0, 0
Suppose that the European Union considers aircraft a strategic industry and gives AirEurope a $9 million subsidy if it produces
Fill in the cells of the following payoff matrix to reflect the $9 million subsidy
AirEurope
Produce Not Produce
AirCraft Produce
Not Produce
With a $9 million subsidy, regardless of whether AirCraft produces or not, AirEurope----------- produce if it wants to maximize its profit.
Because AirEurope will enter the market if given a $9 million subsidy, AirCraft should also produce in this industry.
a. True
b. False

Answers

Answer 1

Answer:

Air Europe should produce aircrafts

a. True

Explanation:

Air Europe has payoff matrix which will maximize the profits if it chooses to produce air crafts. The airline will be able to earn 90 million if it chooses to produces and will loose 2 million if chooses not to produce. There is subsidy of $9 million which is a plus for Air Europe therefore it should produce aircrafts.


Related Questions

Warranty Costs Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable statistical analysis, Milford knows that between the sale and the end of the product warranty period, four percent of the units sold will require repair at an average cost of $60 per unit. The following data reflect Milford's recent experience:
October November December Dec. 31 Total 23,000 22,000 25,000 70,000 Units sold Known product failures from sales in: October November December 120 460 180 130 160 220 350 210 210
Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records. Credit General Journal Date Description Dec.31 Product Warranty Expense Estimated Liability for Product Warranty To provide for estimated future warranty expense. $ Debit 64,800 $ 0 64,800

Answers

Answer and Explanation:

The computation of the estimated liability and the journal entry is given below:

But before that following calculations need to be done

The Estimated defective units is

= 70,000 × 4%

= 2,800 units

the actual defective units is

= 460 + 350 + 210

= 1,020 units

The no of unclaimed units is

= 2,800 - 1,020

= 1,780 units

Now the warranty expense is

= 1,780 units × $60 per unit

= $106,800

Now the journal entry is given below:

Product warranty expense Dr $106,800

    To Estimated liability  $106,800

(Being estimated liability is recorded)

11
Jeanne Crawford had $10,675.50 deposited in an account paying 6.5% interest compounded semiannually.
a) What is the amount in her account 2 years later?
b) What is the compound Interest?

Answers

Answer and Explanation:

The computation is shown below:

a. The amount in 2 years later is

As we know that

Amount = Principal × (1 + rate)^time period

= $10,675.50 × (1 + 6.5% ÷ 2)^2× 2

= $10,675.50 × (1 + 0.03125)^4

= $10,675.50 × 1.130982

= $12,073.80

b. Now the compound interest is

= Final Amount - principal amount

= $12,073.80 - $10,675.50

= $1,398.30

The above formulas should be applied

Blu-Rays can be produced at a constant marginal cost of $5 per disk, and Superhero Studios is releasing the Blu-Rays for its last two major films. The Blu-Ray for Obscure-Man is priced at $20 per disk, and the Blu-Ray for Team-Up Flick 17: The Final Chapter, Part 1 is priced at $30 per disk. What are the price elasticities of demand for these two movies

Answers

Answer:

Obscure-Man = -1.33Team-Up Flick 17: The Final Chapter, Part 1 = -1.2

Explanation:

Price elasticity based on the variables given here, can be calculated using the formula:

= Price / (Marginal cost  - Price)

Obscure-Man:

= 20/ (5 - 20)

= -1.33

Team-Up Flick 17: The Final Chapter, Part 1:

= 30 / (5 - 30)

= -1.2

Job Order Cost Accounting Entries for a Service Business Media Connect Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 40% of media purchases. On April 1, the four advertising projects had the following accumulated costs:
April 1 Balances
First Bank $40,000
Reliable Airlines 18,000
Motel 26 33,000
Blue Mountain Beverages 27,000
During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:
Direct Labor Media Purchases
First Bank $115,000 $ 480,000
Reliable Airlines 84,000 320,000
Motel 26 110,000 200,000
Blue Mountain Beverages 125,000 300,000
At the end of April, both the First Bank and Reliable Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account. Determine each of the following for the month:
a. Direct labor costs.
b. Media purchases.
c. Overhead applied.
d. Cost of completed First Bank and Reliable Airlines campaigns.
Total Costs
First Bank $
Reliable Airlines $

Answers

Answer:

A. $434,000

B. $1,300,000

C. $520,000

D. First bank $827,000

Reliable Airlines $550,000

Explanation:

A. Calculation to determine the Direct labor costs.

Direct Labor

First Bank $115,000

Reliable Airlines 84,000

Motel 26 110,000

Blue Mountain Beverages 125,000

Total $434,000

B. Calculation to determine the Media purchases

Media Purchases

First Bank $ 480,000

Reliable Airlines 320,000

Motel 26 200,000

Blue Mountain Beverages 300,000

Total $1,300,000

C. Calculation to determine the Overhead applied

Overhead applied=$1,300,000*40%

Overhead applied=$520,000

D. Calculation to determine the Total cost for First bank and Reliable Airlines

First bank=$40,000+$115,000+$ 480,000+($ 480,000*40%)

First bank=$40,000+$115,000+$ 480,000+$192,000

First bank=$827,000

Reliable Airlines=$18,000+84,000+320,000+(320,000*40%)

Reliable Airlines=$18,000+84,000+320,000+$128,000

Reliable Airlines=$550,000

Therefore Total cost for is First bank $827,000 and Reliable Airlines is $550,000

XYZ Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: Standard Super Budgeted sales in units 2,160 540 Budgeted selling price $500 $1,500 Budgeted contribution margin per unit $80 $250 Actual sales in units 1,820 980 Actual selling price $550 $1,400 The total sales-mix variance in terms of the contribution margin is ________.

Answers

Answer:

Sales mix variance= $71,400F

Explanation:

A sales mix variance occurs when products are sold in a mix different from the standard mix. It can be calculated as follows:

Step 1: Actual total quantity sold = 1,820 + 980 =2,800

Step 2: Divide the actual total quantity sold into standard mix

Standard- 2160/2160+54)×2,800=2,240

Super -(540/2160+540)×2,800=560

Step 3: calculate mix variance as tabulated  below

Product       Std mix    Actual mix      Mix var    Cont. Magin  Mix Vari

Standard     2,240     1,820                420U          80               33,600 U

Super          560         980                 420 F          250           105,000 F

Variance                                                                                      71,400F

Sales mix variance= $71,400F

The present value of lease payments should be used by the lessee in determining the amount of a lease liability under a lease classified by the lessee as a(n) Finance Lease Operating Lease Finance Lease Yes Operating Lease Yes Finance Lease Yes Operating Lease No Finance Lease No Operating Lease No Finance Lease No Operating Lease Yes

Answers

Answer:

Finance Lease Yes Operating Lease Yes

Explanation:

The lease payments present value should be used for measuring the liability under a capital lease. In the case of the operating lease, the liability when occured at the time when the rent expense should be recorded but not be paid. In addition to this, it is recorded at the actual value of cash that should be paid not the present value

Therefore the first option is correct

Cal Cookie Company (CCC) has 100 million shares of $1 par common stock authorized. The transactions below caused changes in CCC's outstanding shares.
January 4, 2016 Repurchased and retired 1 million shares at $8 per share
June 25, 2016 Repurchased and retired 2 million shares at $2 per share
Prior to the transactions, CCC's shareholder's equity included the following:
Common stock, 80 million shares at $1 par $80,000,000
Paid-in-Capital - excess of par160,000,000
Retained Earnings 120,000,000
Required:
Record entries for the above transactions. Please show work

Answers

Answer and Explanation:

The journal entries are shown below:

On January 4, 2016

Common capital (1 million ×  $1 per share) $1,000,000

Paid in capital excess of par (1 million × $160,000,000 ÷ $80,000,000) $2,000,000

Retained earnings (difference) $5,000,000

          To Cash (1 million × $8) $8,000,000

(Being repurchase & retired shares are recorded)

On June 25,2016

Common capital (2 million × $1 per share) $2,000,000

Paid in capital excess of par ( 2 million × $2) $4,000,000

         To Cash (2 million × $2) $4,000,000

         To Retained earnings (difference) $2,000,000

(Being repurchase & retired shares are recorded)

A company issues $90,000 of 9%, 10-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records the payment of principal at maturity with a (debit/credit) ________ to bond payable in the amount of _______. Multiple choice question. debit; $171,000 credit; $171,000 debit; $90,000 credit; $90,000 Need help

Answers

Answer:

Debit; $90,000

Explanation:

Based on the information given in a situation where the company issues the amount of $90,000 on January 1 which means that assuming the bonds are sold at par value, the issuer of the bonds will records the payment of principal at maturity with a DEBIT to bond payable in the amount of $90,000.

Samra lives in and attends a university in Brazil. Next semester, she plans to study abroad in Mongolia.
Therefore, Samra will demand and will supply_________ .
WatchMe is a manufacturer of designer watches based in Brazil. Though the watches are produced exclusively in Brazil, they are sold throughout the world. WatchMe does an especially robust business in Mongolia. Therefore, WatchMe will demand and will supply_________.

Answers

Answer:

A.) Mongolian tögrög , Brazilian real

B.) Brazilian real, Mongolian tögrög

Explanation:

Currency of Brazil is Brazilian real

Currency of Mongolia is Mongolian tögrög

A.)

Samra lives in and attends a university in Brazil. Next semester, she plans to study abroad in Mongolia.

Therefore, Samra will demand Mongolian tögrög and will supply Brazilian real.

B.)

Watch Me is a manufacturer of designer watches based in Brazil. Though the watches are produced exclusively in Brazil, they are sold throughout the world. Watch Me does an especially robust business in Mongolia. Therefore, Watch Me will demand Brazilian real and will supply Mongolian tögrög

Reason -

For the first part, samra is in need of Mongolian currency in order to make her plan in action to study abroad but at present she is holding with her Brazilian currency, so hereby the demand is considered of Mongolian currency and supply accordingly will be of Brazilian currency to complete the transaction.

For the second part, Watch Me is manufacturer based in Brazil and all the operations related to manufacture occurred exclusively in Brazil , so when sale of watches done in Mongolian currency , there is need to remit the sale consideration to the Brazil . Accordingly he has to change the Mongolian currency to Brazilian currency and as a result he is in demand of Brazilian real by way of supplying Mongolian currency in exchange.

You are a manager at Baroque Space, a costume design company. Recently, your boss asked you to hire a new seamstress. You are now ready to begin recruiting. You know that if you useexternal recruiting, you will be likely to bring new skills into the company, so you decide to use that approach. Which of the following actions could you take to implement your decision?
a. Design a career path
b. Publish an advertisement on an Internet job site
c. Contact a local college recruiting office

Answers

Answer: Design a career path

Explanation:

The action that can be taken to implement the decision is having a career path.

A career path simply refers to the path taken by employees in an organization. This is essential as it'll make the worker have a smooth transition while performing their roles.

Phelps, Inc. had assets of $71,028, liabilities of $16,084, and 11,130 shares of outstanding common stock at December 31, 2017. Net income for 2017 was $8,236. The company had assets of $83,529, liabilities of $19,293, 10,897 shares of outstanding common stock, and its stock was trading at a price of $10 per share at December 31, 2018. Net income for 2018 was $10,114.

Required:
a. Calculate EPS for 2018.
b. Calculate ROE for 2018.
c. Calculate the Price/Earnings Ratio for 2018.

Answers

Answer:

a. Earning per share = Net income / Average no of shares outstanding

Average no of shares outstanding = (Beginning shares + Ending share)/2 = (11,130 + 10,897) / 2 = 11,013.5.

Earning per share = $10,114/11,013.5 shares = $0.9183

b. Return on equity = Net income / Average stockholders equity

Stockholders equity 2017 = $71,028-$16,084 = $54,944

Stockholders equity 2018 = $83,529-$19,293 = $64,236

Average Stockholders equity = ($54,944+$64,236)/2 = $59,590

Return on equity = $10,114/$59,590

Return on equity = 0.1697265

Return on equity = 16.97%

c. Price earnings ratio = Market price per share / Earnings per share

Price earnings ratio = $10/$0.9183

Price earnings ratio = 10.88968746596973

Price earnings ratio = 10.89

Reuse of large amounts of copyrighted film in a documentary would not constitute a copyright infringement.
a) True
b)False

Answers

Answer:

B. False

Explanation:

I majored in Business

Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.

a. True
b. False

Answers

Answer:

A) true

Explanation:

Globalization can be regarded as process involving interaction as well as integration that exist among firms, peopl as well as government and companies worldwide. As a result of Globalization national as well as international companies has become stable and increased in competency and thriving in giving their very best in terms of their produced products.quality in technology as well as quality in education and health sector has also been increased as a result of Globalization. It should be noted that Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.

Sunland Company just began business and made the following four inventory purchases in June: June 1 153 units $1071 June 10 204 units 1632 June 15 204 units 1836 June 28 153 units 1530 $6069 A physical count of merchandise inventory on June 30 reveals that there are 204 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is

Answers

Answer:

the ending inventory is $1,734

Explanation:

The computation of the amount allocated to the ending inventory is shown below:

But before that the average per unit is

= Total amount ÷ total units

= $6,069 ÷ (153 + 204  + 204 + 153)

= $8.5

Since the ending inventory units is 204 units

So, the ending inventory is

= $8.5 ×204 units

= $1,734

hence, the ending inventory is $1,734

ALL the questions in this assignment will be assessed using a rubric with marks awarded for
displaying logic and coherence: sound knowledge of content, including at least three academie
articles - sourced from credible sources, application of theory, and adherence to SBS referencing
guidelines
Question 1 [30]
Write an essay to demonstrate your understanding of the economies of scale in a supply chain with
reference to cycle inventory by arguing whether a toothpaste manufacturer wanting to offer quantity
discounts to maximise its profit should offer lot-size-based or volume-based quantity discounts if it
wants to maximise total supply chain profits at the same time. Discuss the concepts of lot-size-based
and volume-based quantity discounts and summarise under what circumstances lot-size-based and
volume-based quantity discounts are applicable before you argue the case of the toothpaste
nanufacturer
uestion 2 [35]​

Answers

Explanation:

Material prices, ordering costs, and keeping costs are the three major expense groups for the supermarket's inventory strategy. The money spent to Proctor and Gamble on the materials themselves is known as the material expense. Ordering prices, also known as procurement costs, are charged when a customer requests supplies from a retailer and are fixed so that they do not change depending on the scale of the order. Fixed examples include the following:

The costs include the time it takes to put the order, deal with the paperwork that comes with it, and the cost of shipping the order. The holding cost is the cost of keeping a single unit in inventory for a set amount of time, normally a year. This expense is subjective and covers the cost of capital as well as all of the costs of physically handling material, such as shrinkage, spoilage, or obsolescence, insurance, the cost of capital, the cost of storage space, and so on.

A newspaper report states the following: "On March 2, Bastiaan Vanacker was arrested for indecent exposure"; However, what really happened was that someone called Sebastian Van Akker was arrested on March first for indecent exposure. The journalist made a mistake when reading the police report. Both Vanacker and Van Akker sue the newspaper for libel. Given libel jurisprudence, which of the following is most likely to happen? They both are private figures.
a. Bastiaan Vanacker wins a libel suit , Sebastian Van Akker loses.
b. Sebastian Van Akker wins a libel suit, Bastiaan Vanacker loses a libel suit.
c. They both win a libel suit.
d. They both lose a libel suit

Answers

Answer:

a. Bastiaan Vanacker wins a libel suit , Sebastian Van Akker loses.

Explanation:

Libel is where a defamatory statement has been published and that statement is false, this will result in the person able to claim libel charges.

This means that if information about someone is publicised (specially a private figure) for any criminal act and which could lead to damage that person's reputation seriously without any proper evidence or even false evidence then this would become ground for a libel case.

Such as in this case where a journalist reported that Bastiaan Vanacker was arrested for indecent exposure even though this was not really the case. As confirmed through the police report which the journalist had misread. This libel suit filed by Bastiaan Vanacker would be won, as his reputation has been damaged to the falsely alleged report published in the newspaper.

However, in the case of Sebastian Van Akker, who had actually committed the crime and no information was mentioned about him in the newspaper, will lose the libel suit filed. This is due to the fact that he was not defamed for any act which he himself had not conducted.

Producer surplus is best defined as _________________. Select the correct answer below: the profit of producers when they make more goods than are demanded the profit of producers when there are too many producers for a certain demand in a market the profit that producers make above the cost of production the intangible profits producers make in addition to the goods they sell

Answers

Answer:

the profit that producers make above the cost of production.

Explanation:

Producer surplus is best defined as the profit that producers make above the cost of production.

Basically, it is the total amount of money that a particular producer of goods and services benefits (gains) from selling at the market price.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the company planned for activity of 621 frames, but the actual level of activity was 611 frames. The actual supplies cost for the month was $8,250. The spending variance for supplies cost in November would be closest to:

Answers

Answer:

See below

Explanation:

Spending variance for supplies = Standard cost - Actual cost

Standard cost formulae = $1,110 per month + $11 per frame

Standard cost for actual output = $1,110 + ($11 × 611)

= $1,110 + $6,721

= $7,831

But actual cost = $8,250

Therefore,

Spending variance would be

= $7,831 - $8,250

= $419 unfavourable

The spending variance for supplies cost in November is closest to $419 unfavourable

An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $200 each year for 5 consecutive years and project outflows will also begin in one year and are expected to be $90 each year for 5 consecutive years. The corporate tax rate is 32% and the required rate of return is 9%. Calculate the project's net present value.

Answers

$-9.48

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(400 - 0) / 5 = 80

(200 - 90- 80) x (1 - 0.32)  + 80 = $100.40

Cash flow in year 0 = $-400

Cash flow each year from year 1 to 5 = $100.40

I = 9%

NPV = $-9.48

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

All of the following are cash and cash equivalents, EXCEPT *
Savings deposit
Money maker placement
Cash to be paid by a debtor
Currency that is legal tender

Answers

Answer:

money maker placements

Which transaction involves a good?
A. Selling desk chairs
B. Washing windows
C. Providing technology support
D. Displaying an advertisement

Answers

Answer:

Providing technology support

Answer:

Explanation:

selling desk chairs, just got it right

how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​

Answers

Answer:

The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization

how can a writer be grief when writing professional letters



A. By adding a writer be brief when writing professional letters


B. By adding background information


C. By avoiding words that end in " Ize or ton"


D. By writing a concise letters that addresses your purpose

Answers

The correct answer is D

Answer:

D. By writing a concise letters that addresses your purpose

Explanation:

Got it right.

The following information describes production activities of Mercer Manufacturing for the year.
Actual direct materials used 31,000 1bs. at $5.80 per lb
Actual direct labor used 10,600 hours for a total of $217,300
Actual units produced . 63,000
Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.75 per pound and 10 minutes $21.50 per hour.
AQ = Actual Quantity
SQ=Standard Quantity
AP =Actual Price
SP =Standard Price
AH =Actual Hours
SH= Standard Hours
AR= Actual Rate
SR= Standard Rate
(1) Compute the direct materials price and quantity variances
(2) Compute the direct labor rate and efficiency varian rect labor rate and efficiency variances.

Answers

Answer:

Results are below.

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5.75 - 5.8)*31,000

Direct material price variance=  $1,550 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (63,000*0.5 - 31,000)*5.75

Direct material quantity variance= $2,875 favorable

To calculate the direct labor rate and efficiency variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (10,500 - 10,600)*21.5

Direct labor time (efficiency) variance= $2,150 unfavorable

Standard quantity= (10/60)*63,000= 10,500 hours

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (21.5 - 20.5)*10,600

Direct labor rate variance= $10,600 favorable

Actual rate= 217,300 / 10,600= $20.5

vProblem 10-4 Partnership Formation (LO 10.2) Elaine's original basis in the Hornbeam Partnership was $40,000. Her share of the taxable income from the partnership since she purchased the interest has been $70,000, and Elaine has received $80,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. In the current year, Hornbeam also allocated $1,000 of tax-exempt interest to Elaine. Calculate Elaine's current basis in her partnership interest. $fill in the blank 1

Answers

Answer: $31000

Explanation:

Elaine's current basis in her partnership interest will be calculated as:

= Value of original basis + (interest purchased - Cash received) + tax exempt interest

= $40000 + ($70000 - $80000) + $1000

= $40000 - $10000 + $1000

= $31000

location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:____.
a. build a plant in both cities.
b. be indifferent between these locations.
c. choose Boston.
d. choose Akron.
e. reject both locations.

Answers

Answer:

e. reject both locations.

Explanation:

Akron's weighted score:

supply of raw materials = 0.5 x 60 = 30

transportation costs = 0.4 x 80 = 32

labor costs = 0.1 x 70 = 7

total composite score = 69

Boston's weighted score:

supply of raw materials = 0.5 x 70 = 35

transportation costs = 0.4 x 50 = 20

labor costs = 0.1 x 90 = 9

total composite score = 64

Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sales, $458,000 Selling and administrative expenses, $118,000 Sales returns and allowances, $38,000 Gross profit, $498,000 Accounts receivable, $185,000 Sales discounts, $22,000 Allowance for doubtful accounts credit balance, $2,000 Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded

Answers

Answer:

$8,870

Explanation:

Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded

Using this formula

Balance in the allowance for doubtful accounts=

(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance

Let plug in the formula

Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000

Balance in the allowance for doubtful accounts=$6,870+$2,000

Balance in the allowance for doubtful accounts=$8,870

Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870

Elizabeth (25 years old) studied music education in college and graduated a year ago. She currently works as a music teacher at a year-round private middle school. Her gross pay is $28800 a year, or $2400 a month. After taxes, health insurance, and other paycheck deductions, her net pay is $24600 a year. Based on recommended guidelines, how much money should Elizabeth be saving each month

Answers

Based on her gross pay, the amount that Elizabeth should be saving each month is $288.

Recommended savings rate

It is recommended that one saves at least 12% of their gross salary each month to allow them cater for emergencies.

Elizabeth savings per month

Her savings would therefore be:

= Gross monthly pay x 12%

= 2,400 x 12%

= $288

In conclusion, she should save $288.

Find out more on savings at https://brainly.com/question/10473550.

Financial information is presented below: Operating expenses $ 63000 Sales returns and allowances 2000 Sales discounts 5000 Sales revenue 156000 Cost of goods sold 104000 The amount of net sales on the income statement would be

Answers

Answer:

$149,000

Explanation:

The computation of the amount of net sales is shown below:

=  Sales revenue - sales return & allowance - sales discount

= $156,000 - $2,000 - $5,000

= $149,000

We simply deduct the two items from the sales revenue so that the net sales revenue could be come and the same would be reported on the income statement

You are considering a project in Honduras that would generate 1.5 million dollars in cash flows per year going forever. The cost of the project is 8 million dollars. The discount rate for the project is 12%. You believe that there is some probability of expropriation prior to the 4th year (after the 3rd cash flow). Which of the following fully describes when this is a good project?
a. This is a good project if the probability of expropriation is larger than 0.33
b. This is a good project if the probability of expropriation is smaller than 0.33
c. This is a good project if the probability of expropriation is smaller than 0.5
d. This is a good project if the probability of expropriation is smaller than 0.66 7.

Answers

Answer:

c. This is a good project if the probability of expropriation is smaller than 0.5

Explanation:

initial outlay = $8,000,000

if no expropriation, NPV = -$8,000,000 + $1,500,000/0.12 = $4,500,000

if the risk of expropriation is 0.33:

NPV = $925,211

if the risk of expropriation is 0.5:

NPV = -$425,265

the breakeven risk = 44.6%

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