A corporation has a NLTG of $40,000 and a NSTL of $10,000 in the current year. It had capital gains/(losses) as follows
YEAR 3 $20,000
YEAR 2 (35,000)
YEAR 1 10,000
HOW MUCH MUST THE CORPORATION ADD TO ITS OTHER INCOME DUE TO CAPITAL GAINS TO DETERMINE TAXABLE INCOME IN THE CURRENT YEAR
A. 5000
B. 25000
C. 30000
D. 35,000
Answer:
C. 30000
Explanation:
net capital gain
= net long term capital gain in current year - net short term loss in current year
= $40,000 - $10,000
= $30,000
Therefore, THE CORPORATION ADD $30,000 TO ITS OTHER INCOME DUE TO CAPITAL GAINS TO DETERMINE TAXABLE INCOME IN THE CURRENT YEAR.
Where are shares of the reporting company's common stock issued in exchange for cash reported on a statement of cash flows?
Answer:
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Explanation:
Shares of the reporting company's common stock issued in exchange for cash are reported on the financing activities section of the statement of cash flows.
Explanation:The shares of the reporting company's common stock issued in exchange for cash are reported on the financing activities section of the statement of cash flows. This section shows the cash inflows and outflows related to the company's financing activities, such as issuing and repurchasing stock, taking on or repaying debt, and paying dividends.
For example, if a company issues new shares of common stock and receives cash in exchange, it would be reported as a cash inflow under the financing activities section. On the other hand, if the company repurchases its own shares and pays cash, it would be reported as a cash outflow.
Which of the following is NOT an example of a conflict of interest? Group of answer choices
a. Advising two clients at the same time who are competing to acquire the same company when the advice might be relevant to the parties' competitive positions
b. Accepting commissions in a financial planning engagement for a nonaudit client
c. Advising a client to invest in a business in which, for example, the immediate family member of the CPA has a financial interest in the business
d. Providing tax or personal financial planning services for several members of a family whom the CPA knows to have opposing interests
Answer:
Only b. Accepting commissions in a financial planning engagement for a nonaudit client.
Explanation:
This option is correct only if there is no evidence that this nonaudit client has CPA members interest. The other 3 options show evident connections with current clients or CPA members, which make a potential conflict of interest high probable. To avoid situations stated in options a, c and d is always the best things to do
Final answer:
Accepting commissions in a financial planning engagement for a non-audit client is not automatically a conflict of interest and is the correct answer to the question, which seeks to identify the option that is NOT an example of a conflict. ( Option B)
Explanation:
The concept of a conflict of interest arises when an individual or entity has multiple interests and serving one interest could involve working against another, typically in situations of professional or financial gain. Among the provided options, the one that is NOT an example of a conflict of interest is b. Accepting commissions in a financial planning engagement for a non-audit client. This situation does not automatically imply a conflict; it becomes a conflict only if the commissions could influence professional judgement or create bias.
In contrast, a, c, and d are direct examples of conflicts of interest since they involve situations where personal or overlapping professional interests could potentially compromise impartiality or create bias in judgment.
The average credit card debt for college seniors is $16,601 with a standard deviation of $4100. What is the probability that a sample of 35 seniors owes a mean of more than $18,000? Round answer to 4 decimal places.
Answer:
0.0218
Explanation:
Data provided in the question:
Average credit card debt, µ = $16,601
Standard deviation, σ = $4,100
Sample size, n = 35
To find : P ( X > 18000 )
Now,
P ( X > $18,000 ) = 1 - P ( X < $18,000 )
For Standardizing the value, we have
Z = [ X - µ ] ÷ [ σ ÷ √n ]
Z = [ $18,000 - $16,601 ] ÷ [ $4,100 ÷ √35 ]
or
Z = 2.02
Thus,
P ( [ X - µ ] ÷ [ σ ÷ √n ] > [ $18,000 - $16,601 ] ÷ [ 4100 ÷ √35 ]
or
P ( Z > 2.02 )
or
P ( X > 18000 ) = 1 - P ( Z < 2.02 )
[ from standard Z-value table P ( Z < 2.02 ) = 0.9782 ]
therefore,
P ( X > 18000 ) = 1 - 0.9782
or
P ( X > 18000 ) = 0.0218
When Terrance sent his daughter to college, he purchased a house near campus for $95,000. Empty lots in the area sold for approximately $10,000 at the time. After she graduated, Terrance decided to keep the house for use as a rental. The fair market value at the time of the conversion was $160,000 and the price of the land had risen to $20,000. The basis for depreciation of the house is ___
A. $140,000
B. $105,000
C. $95,000
D. $85,000
The basis for depreciation of the house is Option D is $85,000.
The calculation is as follows:= Purchase value of the house - empty lots of area sold
= $95,000 - $10,000
= $85,000
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In 2019, Pine Corporation had losses of $20,000 from operations. It received $180,000 in dividends from a 25%-owned domestic corporation. Pine’s taxable income is $160,000 before the dividends-received deduction. What is the amount of Pine’s dividends-received deduction?
Answer:
Consider the following calculations
Explanation:
Net income per books $65,000
Add back:
Federal income taxes 9,700
Excess contributions 3,000
Life insurance premiums 10,000
$87,700
Subtract:
Tax-exempt interest (1,500)
Excess depreciation (4,500)
Taxable income $81,700
Dividend received deduction = 160000 x 80% = 128000 (full DRD doesn't create loss).
DRD will be 80% of taxable inome because percent partnership is 25% which is between 20 to 80%.
Courtnie has been allergic to cats as long as she can remember; this requires her doctor to give her an allergy shot. On her 26th birthday she spends the day in a house with cats and has no reaction. Therefore the allergy shot has helped Courtnie overcome her reaction to cats. The explanation for why she had no reaction describes which of the following?
Answer:
The correct answer is: causal relation.
Explanation:
Causal relation describes the correlation between two events. It explains that the second event occurs as a result of the first one, though, sometimes the second event might not be the cause of the first one. The first event takes the name of the cause and the second event is called the effect.
Lusk Corporation produces and sells 14,000 units of Product X each month. The selling price of Product X is $22 per unit, and variable expenses are $16 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $73,000 of the $103,000 in fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the company’s overall net operating income would: decrease by $49,000 per month increase by $49,000 per month decrease by $54,000 per month increase by $19,000 per month
Answer:
decrease by $54,000 per month
Explanation:
The impact on the net operating income would be shown below:
In the first case,
Sales ( $22 × 14,000 units) = $308,000
Variable expenses ($16 × 14,000 units) = - $224,000
Fixed expenses = - $103,000
Net loss = - $19,000
And, the fixed cost continued is $73,000
So, the net income decreased by
= $73,000 - $19,000
= $54,000
if the product X is discontinued
Final answer:
Discontinuing Product X would result in a loss of $84,000 contribution margin, which is not entirely offset by the $30,000 reduction in fixed expenses. Therefore, the net operating income would decrease by $54,000 per month if Product X is discontinued.
Explanation:
To determine whether discontinuing Product X would increase or decrease the company's overall net operating income, we need to analyze the impact on contribution margin and fixed expenses. The current contribution margin per unit can be calculated by subtracting the variable expense from the selling price, so for Product X, which sells for $22 and has a variable expense of $16, the contribution margin per unit is $6.
The total contribution margin for all 14,000 units is 14,000 units × $6 = $84,000 monthly. If Product X is discontinued, the company will not only lose this contribution margin but will also continue to incur $73,000 of the $103,000 in fixed expenses. The net effect is a decrease in net operating income by:
Loss of contribution margin ($84,000) - Avoidable fixed expenses ($30,000) = Decrease in net operating income by $54,000 per month.
Therefore, if Product X is discontinued, the company’s overall net operating income would decrease by $54,000 per month.
E8.14 (LO 4), AP Eileen Corp. had the following balances in receivable accounts at October 31, 2022 (in thousands): Allowance for Doubtful Accounts $52, Accounts Receivable $2,910, Other Receivables $189, and Notes Receivable $1,353. Prepare a balance sheet presentation of receivables. Instructions Prepare the balance sheet presentation of Eileen Corp.'s receivables in good form.
Answer:
Explanation:
In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced.
Moreover, it always is prepared on the specified date.
The preparation of the receivable section is presented below:
Accounts Receivable $2,910
Other Receivables $189
Notes Receivable $1,353
Less: Allowance for Doubtful Accounts ($52)
Net receivables $4,400
Match the description in the right column with the information characteristic in the left column.
1. Relevant a. The report was carefully designed so that the data contained on the report became information to the reader
2. Reliable b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network.
3. Complete c. The data on a report was checked by two clerks working independently
4. Timely d. An accounts receivable aging report that included all customer accounts
5. Understandable e. A report checked by 3 different people for accuracy
6. Verifiable f. An accounts receivable aging report used in credit granting decisions
7. Accessible g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit
This question is about matching descriptions of information characteristics with their corresponding statements in the context of reports.
Explanation:The statements can be categorised as -
1. Relevant – b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network.
2. Reliable – c. The data on a report was checked by two clerks working independently.
3. Complete – d. An accounts receivable aging report that included all customer accounts.
4. Timely – g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit.
5. Understandable – a. The report was carefully designed so that the data contained on the report became information to the reader.
6. Verifiable – e. A report checked by 3 different people for accuracy.
7. Accessible – f. An accounts receivable aging report used in credit granting decisions.
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A self-employed taxpayer buys a new business automobile during the year. What method is permitted in computing car and truck expenses on Schedule C?
a. The actual cost method
b. The standard mileage rate method
c. Either the actual cost or the standard mileage rate method
d. The actual mileage method
e. None of the above
Answer:
The correct answer is letter "B": The standard mileage rate method.
Explanation:
Vehicle expense deductions are offered on Schedule C for self-employed taxpayers. If the vehicle expenses are itemized and are not part of a regular loan, part of the lease payment can be considered as a business expense. This is provided thanks to the standard mileage rate deduction. Parking and tolls can also be subject to deduction.
Amachine costing $176,000 was destroyed when it caught fire. At the date of the fire, the accumulated depreciation on the machine was $80,000. An insurance check for $200,000 was received based on the replacement cost of the machine. The entry to record the insurance proceeds and the disposition of the machine will include a ______.(A) gain on disposal of $24,000. (B) credit to the Equipment account for $120,000(C) credit to the Accumulated Depreciation account for $80,000.(D) gain on disposal of $104,000.
Final answer:
In accounting, when an asset is disposed of, a gain or loss is recognized based on the difference between the asset's book value and the proceeds received. In this case, the machine had a book value of $96,000 and the insurance proceeds were $200,000, resulting in a gain of $104,000, so the correct entry is (D).
Explanation:
The question involves understanding accounting transactions related to the disposal of an asset and recognizing gains or losses on such disposals. The machine had an original cost of $176,000, and its accumulated depreciation was $80,000. The book value (cost less accumulated depreciation) at the time of its destruction was therefore $176,000 - $80,000 = $96,000. The insurance settlement received was $200,000, which resulted in a gain because the proceeds exceeded the book value of the asset.
The correct journal entry to record the transaction would be:
Debit Accumulated Depreciation for $80,000Debit Cash (for the insurance proceeds) for $200,000Credit Machinery (for the original cost) for $176,000Credit Gain on Disposal of Machinery for the difference: $200,000 (proceeds) - $96,000 (book value) = $104,000Thus, the correct answer is (D), a gain on disposal of $104,000.
Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following data for its commercial bathtub production line during the month of March:
Standard DL hours per tub 5
Standard variable overhead rate per DL hour $ 6.00
Standard variable overhead cost per unit $ 30.00
Actual variable overhead costs $ 16,400
Actual DL hours 2,050
Actual variable overhead cost per machine hour $ 8.00
Actual tubs produced 1,500
1. What is the variable manufacturing overhead efficiency variance in March?
Answer:
$32,700 Favorable
Explanation:
Variable Manufacturing overhead efficiency variance can be computed as follows,
VMOH Variance = Standard Overhead rate * (Actual Hours - Standard Hours)
VMOH Variance = 6.0 * (2050 - (1500 * 5))
Variance = $32,700 Favorable
This a favorable variance as budgeted per tub direct labor hours are more than they actually were at production level of 1500 tubs.
Hope that helps.
Suppose that real GDP is currently $ 13.8 trillion and potential real GDP is $ 14.0 trillion, or a gap of $ 200 billion. The government purchases, multiplier is 5.0, and the tax multiplier is 4.0
Holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential GDP?
1.Government spending will need to be increased by $ _________ billion (enter your response rounded to the nearest whole number).
2. Holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential GDP?
Taxes will need to be cut by $ _________ billion (enter your response rounded to the nearest whole number).
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Final answer:
To bring the economy to equilibrium at potential GDP, government spending will need to be increased by $40 billion, while taxes will need to be cut by $50 billion.
Explanation:
The multiplier effect in economics refers to how an initial change in spending can have a larger impact on the equilibrium level of real GDP. To determine how much government spending needs to be increased to bring the economy to equilibrium at potential GDP, we can use the formula:
Change in GDP = Change in government spending * Government purchases multiplier
In this case, the gap between real GDP and potential GDP is $200 billion. The government purchases multiplier is 5.0. Therefore, the government spending will need to be increased by $200 billion / 5.0 = $40 billion to bring the economy to equilibrium at potential GDP.
To calculate how much taxes will have to be cut, we can use the formula:
Change in GDP = Change in taxes * Tax multiplier
In this case, we are trying to reach potential GDP, so the change in GDP is $200 billion. The tax multiplier is 4.0. Therefore, taxes will need to be cut by $200 billion / 4.0 = $50 billion to bring the economy to equilibrium at potential GDP.
You are interested in buying a house and renting it out. You expect to receive a monthly net income of $1400 from rent. You then expect to sell the house for $336,000 at the end of 53 months. If your discount rate on this investment is 9% (compounded monthly), how much is this property worth to you today? Assume that you receive rent at the beginning of each month and you receive the first rent the same day you purchase the property. Round to the nearest cent.
Answer:
$287,625.12
Explanation:
The market price of this property should be equal to the present value of all rental income plus the sales proceed from sales of the asset.
1. Present value of rental cashflow = 1,400 + 1,400/[1 + (9%/12)] + ... + 1,400/[1 + (9%/12)]^52 = 61,498.67
2. Present value of proceed from sales of the asset = 336,000/[1 + (9%/12)]^53 = 226,126.45
So, market price of this property should be equal to 61,498.67 + 226,126.45 = $287,625.12
Blossom Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 167,000 miles. Taxi 10 cost $33,600 and is expected to have a salvage value of $200. Taxi 10 was driven 32,000 miles in 2021 and 32,700 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost $enter the depreciation per unit rounded to two decimal places in dollars per unit eTextbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense $enter the depreciation for 2021 rounded to 0 decimal places in dollars $enter the depreciation for 2022 rounded to 0 decimal places in dollars eTextbook and Media
Answer:
$0.20 per miles, $6,400, $6,540
Explanation:
The calculation of the depreciation per unit and its expense method is presented below:
= (Original cost - residual value) ÷ (estimate driven miles)
= ($33,600 - $200) ÷ (167,000 miles)
= ($33,400) ÷ (167,000 miles)
= $0.20 per miles
Now for the 2021 year, it would be
= Miles driven in 2021 year × depreciation per miles
= 32,000 miles × $0.20
= $6,400
And, in 2022, it would be
= Miles driven in 2022 year × depreciation per miles
= 32,700 miles × $0.20
= $6,540
Diaz Company has developed the following standards for one of its products:Direct materials 3.50 pounds × $4 per poundDirect labor 1 hour × $12 per hourVariable manufacturing overhead 1 hour × $6 per hourThe following activity occurred during the month of April:Materials purchased 2,000 pounds costing $22,500Materials used 1,600 poundsUnits produced 250 unitsDirect labor 550 hours at $12.50 per hourActual variable manufacturing overhead: $2,500The company records materials price variances at the time of purchase.The total variable standard cost is:_______
Answer:
$8000
Explanation:
Total variable cost per unit (standard):
= Direct materials + Direct labor + Variable manufacturing overhead
= [3.5 pounds × $4 per pound] + [1 hour × $12 per hour] + [1 hour × $6 per hour]
= $14 + $12 + $6
= $32 per unit
Total variable standard cost:
= Per unit cost × Units produced
= $32 × 250
= $8000
Anthony Delivery Service has a weekly payroll of $32,000. December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6) for the previous full week. Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $925,000. What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?
Answer:
$937,800
Explanation:
The adjusting entry would be
Salaries expense A/c $12,800
To Salaries payable A/c $12,800
(Being salary is adjusted)
The salaries expense is computed below:
= Total five days × number of days ÷ total number of days
= $32,000 × (2 ÷ 5)
= $12,800
Now the ending balance of salaries expense would be
= Unadjusting balance + adjusting balance
= $925,000 + $12,800
= $937,800
The correcrt option is B. The December 31 balance of Salaries Expense after adjusting entries are recorded and posted is B. $937,800
To determine the December 31 balance of Salaries Expense after adjusting entries are recorded and posted, we need to account for the accrued salaries for the days worked up to December 31.
Steps to Calculate the Adjusted Salaries Expense:
1. Calculate the Daily Payroll:
Since the weekly payroll is $32,000 and Anthony Delivery Service has a five-day workweek, the daily payroll can be calculated as:
[tex]\[ \text{Daily Payroll} = \frac{32,000}{5} = 6,400 \][/tex]
2. Calculate the Payroll for the Days Worked up to December 31:
December 31 is a Tuesday, which means employees have worked for two days in that week (Monday and Tuesday).
Therefore, the payroll for these two days is:
[tex]\[ \text{Accrued Payroll} = 6,400 \times 2 = 12,800 \][/tex]
3. Record the Adjusting Entry:
To record the accrued payroll for December 30 and 31, we need to debit Salaries Expense and credit Salaries Payable:
[tex]\[ \text{Adjusting Entry:} \\ \text{Debit: Salaries Expense} = 12,800 \\ \text{Credit: Salaries Payable} = 12,800 \][/tex]
4. Calculate the Adjusted Balance of Salaries Expense:
The unadjusted balance in Salaries Expense is $925,000. After posting the adjusting entry, the new balance will be:
[tex]\[ \text{Adjusted Salaries Expense} = 925,000 + 12,800 = 937,800 \][/tex]
The December 31 balance of Salaries Expense after adjusting entries are recorded and posted is $937,800.
Therefore the correct option is B. $937,800.
The complete question is:
Anthony Delivery Service has a weekly payroll of $32,000. December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6 ) for the previous full week. Assume that Anthony has a five - day workweek and has an unadjusted balance in Salaries Expense of $925,000 at December 31 . What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?
A. $953,000
B. $937,800
C. $920,000
D. $933,200
Fulbright Corp. uses the periodic inventory system. During its first year of operation, Fulbright made the following purchases (listed in chronological order of acquisition): • 40 units at $100 • 70 units at $80 • 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. What is the ending inventory using the LIFO method?
Answer:
$1000
Explanation:
Under the LIFO method, the sales units was 270 units out of which 170 units at $60 is used, 70 units at $80 is used and the remaining 30 units is used at $100
The remaining units i.e 10 units is left which is an ending inventory at$100 i.e $1000
The ending inventory units would be
= Sales units - Available units
= 270 units - 260 units
= 10 units
A minimum wage above $10 per hour would prevent the labor market from reaching equilibrium.a. True b. False
Answer:
a. True
Explanation:
A minimum wage above $10 per hour is the binding minimum wage in the labour market so this would prevent the labor market from reaching equilibrium.
It is false that a minimum wage above $10 per hour would prevent the labor market from reaching equilibrium if the equilibrium wage is already above that level. The impact of a minimum wage on the labor market depends on its relation to the equilibrium wage, and significant increases can cause a surplus of labor and possible unemployment.
Explanation:It is false that a minimum wage above $10 per hour would necessarily prevent the labor market from reaching equilibrium. If the equilibrium wage is already above the minimum wage, such as at $10 per hour, then setting a minimum wage at this level would not impact the labor market. However, if the minimum wage is set significantly higher than the equilibrium level, such as $15 per hour when the equilibrium is $10 per hour, it could lead to a surplus of labor, where the quantity of labor supplied exceeds the quantity demanded, potentially causing unemployment to rise.
The impact of minimum wage increases on employment levels and the labor market is a complex issue with varying outcomes depending on the relative position of the minimum wage and the market equilibrium wage. Empirical evidence often does not align with simple economic models that predict large increases in unemployment from increases in minimum wage. This discrepancy suggests that other factors may be at play that mitigate the textbook predictions of unemployment.
1) Why might investors prefer floating rate notes over a fixed rate bond?
2) Why might Hologen prefer to issue fixed rate bonds rather than floating rate notes?
Answer:
These questions are incomplete since the article relating to Hologen company is not attached. However, I would answer them this way.
Explanation:
1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.
2)
For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.
Sarbanes-Oxley Act (SOX) Section 404 requires an organization's executive officers to establish, maintain, review, and report on the effectiveness of the company's internal controls over financial reporting (ICFR). a. Trueb. False
Answer: A. True
Explanation:
Sarbanes-Oxley Act was passed by congress in order to safeguard the interest of investors from the fraudulent activities that are used in manipulation of the financial statements.
A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
a. appreciation of the U.S. dollar and depreciation of the foreign currency.
b. appreciation of the U.S. dollar and appreciation of the foreign currency.
c. depreciation of the U.S. dollar and depreciation of the foreign currency.
d. depreciation of the U.S. dollar and appreciation of the foreign currency.
Answer:
a. appreciation of the U.S. dollar and depreciation of the foreign currency.
Explanation:
When the supply of us dollars fall, demand for US dollars would be greeter than the supply, the value of the US dollar would rise.
I hope my answer helps you
Answer:
OwO its a?
Explanation:
sales rep need to generate multiple quotes for customer and track the information in sales force. What solution will you recommend?
Answer:
Customer Relationship Management (CRM) Software
Explanation:
Customer Relationship Management (CRM) Software makes use of company data insight and analytics in improving customer interaction. Sales rep can make use of CRM software to engage clients effectively in a way that improves bottom line.
Which of the following is a fixed cost?
a. payments to a electric utility
b. cost of raw materials
c. wages to hire assembly line workers
d. payment to hire a security worker to guard the gate to the factory around the clock
Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
If a tax is imposed on a good where both supply and demand are somewhat elastic, but demand is more elastic than supply, the burden of the tax will be borne
A. by producers alone.
B. by consumers and producers equally.
C. by consumers alone.
D. mostly by producers but partially by consumers.
E. mostly by consumers but partially by producers.
Answer:
The answer is D - mostly by producers but partially by consumers.
Explanation:
Tax incidence depends on the relative price elasticity of demand and supply. When supply is more elastic than demand, buyers bear most of the tax burden but when demand is more elastic than supply, producers bear most of the cost of tax and consumers bear less.
Before purchasing a used car, Jim Myers checked www.kbb to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,100. She put $2,700 down and financed the rest with a 36-month, 7.5% loan.What is her monthly car payment by formula?
To calculate the monthly car payment, use the formula: Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1+Monthly interest rate)^(-Number of months)). Using this formula, Jim Myers' monthly car payment is approximately $372.78.
Explanation:To calculate the monthly car payment, we can use the formula:
Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1+Monthly interest rate)^(-Number of months))
In this case, Jim Myers financed $15,100 with a 36-month, 7.5% loan. Using the formula, we can calculate the monthly car payment as follows:
Loan amount = $15,100 - $2,700 (Down payment) = $12,400
Monthly interest rate = 7.5% / 12 = 0.00625
Number of months = 36
Substituting these values into the formula, we get:
Monthly payment = ($12,400 * 0.00625) / (1 - (1+0.00625)^(-36))
By evaluating this expression, we find that her monthly car payment is approximately $372.78.
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The correct monthly car payment for Jim Myers is $405.37.
To calculate the monthly car payment, we can use the formula for an installment loan, which is given by:
[tex]\[ P = \frac{rPV}{1 - (1 + r)^{-n}} \][/tex]
First, we need to convert the annual interest rate to a monthly interest rate.
The annual interest rate is 7.5%, which we can express as a decimal by dividing by 100, giving us 0.075.
To find the monthly interest rate, we divide this by 12 (since there are 12 months in a year):
[tex]\[ r = \frac{0.075}{12} = 0.00625 \][/tex]
Next, we determine the amount financed, which is the purchase price minus the down payment:
[tex]\[ PV = \$15,100 - \$2,700 = \$12,400 \][/tex]
The total number of payments is the loan term in months:
n = 36
Now we can plug these values into the loan formula:
[tex]\[ P = \frac{0.00625 \times \$12,400}{1 - (1 + 0.00625)^{-36}} \][/tex]
[tex]\[ P = \frac{\$77.50}{1 - 0.7164} \][/tex]
[tex]\[ P \approx \$405.37 \][/tex]
Therefore, Jim Myers' monthly car payment is approximately $405.37.
University Book Store buys women's polo T-shirts from a supplier, which is $16 per unit. The store sells 50,000 T-shirts per year. The annual carrying cost of T-shirts is 25% of its purchasing price, and the ordering cost is $40. If the book store operates for 250 days each year, and delivery of an order takes 2 working days. How low can the inventory get before the book store places an order? Group of answer choices 500 250 400 200
Answer:
It is 400 units
Explanation:
Re-order level= Maximum usage x Maximum lead time
Maximum usage per day = 50,000/250
= 200 units per day
Maximum lead time (as given) = 2 days
Hence, Re-order level =200* 2
=400 units
When inventories reach this level, it is important that an order should be placed to replenish inventories. The reorder level is determined by consideration maximum usage per day and maximum lead time
Maximum lead time is the is the time between placing an order with a supplier, and the inventory becoming available.
Note
In case it is required to find order size that would minimize the total cost ?
Answer
The order size that would minimize total cost is called Economic Order Quantity (EOQ)
EOQ = √(2*Co*D)/Ch
Where Co =Ordering cost per order =$40
Ch= Holding cost per unit= 25%*$16=$4
D= Annual Demand = 50,000 units
EOQ = √(2*40*50,000)/4
= 1000 units
The University Book Store should order new stock when the inventory level drops to 400 T-shirts. This calculation is based on the daily demand and the lead time for delivery.
Explanation:The student's question pertains to Order Point calculation in inventory management. The order point (also known as reorder point) signifies when new inventory should be ordered to avoid running out of stock. It takes into account the delivery lead time and the number of items required daily.
From the information provided, we know that the University Book Store operates for 250 days annually, and the delivery lead time for an order is 2 days. Therefore, the lead time demand or the number of items required during the lead time would be the daily demand multiplied by the lead time. The University Book Store sells 50,000 T-shirts per year, so the daily demand would be 50,000 / 250 = 200 T-shirts. Hence, during a lead time of 2 days, the expected demand would be 200 × 2 = 400 T-shirts. Thus, the inventory should reach this level before the University bookstore places a new order.
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Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets.Mark appears to be suggesting that Lite Bite use a(n):
A. corporate distribution system.
B. franchise arrangement.
C. manufacturer-sponsored marketing chain.
D.administered distribution system.
Answer:
D.administered distribution system.
Explanation:
Administered Distribution System is a system in which producer manages all the marketing functions at the retail outlets.
A company reported total assets at the end of 2017 of $95,000; including cash of $35,000, accounts receivable of $20,000, and inventory of $40,000. It reported total assets at the end of 2018 of $110,000; including cash of $44,000; accounts receivable of $29,000, and inventory of $37,000. Compute the net increase or decrease in cash in 2018.
Answer:
The net increase of cash in 2018 is of $9,000
Explanation:
We can lay out the information as follows:
2017
Cash $35,000
Accounts Receivable $20,000
Inventory $40,000
Total Assets $95,000
2018
Cash $44,000
Accounts Receivable $29,000
Inventory $37,000
Total Assets $100,000
Net cash = Cash in 2018 - Cash in 2017
= $44,000 - $35,000
= $9,000