Answer and Explanation:
Cost Schedule:
Product Costs Job 120 Job 121 Job 122 Total
Beginning WIP 15700 15700
Direct Materials 2100 6400 3400 11900
Direct Labor 2300 4200 2300 8800
Overhead 85% 1955 3570 1955 7480
of Direct Labor
Total 22055 14170 7655 43880
Jounral Entries
Work in Process Inventory 11900
Raw Materials Inventory 11900
To record materials in inventory
Work in Process Inventory 8800
Wages Payable 8800
To record Labor cost
Work in Process Inventory 7480
Applied Factory Overhead 7480
To record applied FOH
Accounts Receivable 23,500
Sales Revenue 23,500
To record Job sold on account
Cost of Goods Sold (Job 120) 22055
Finished goods 22055
To record cost of goods sold
Ending Work in Process account = 7655
Ending Finished Good account = 14170
Sammie's Shiny Shoes is a firm that operates in a competitive market. The number of firms in the shoe-shining market increases. In the short run, Sammie will _______.
A. cut back on the number of shoes he shines
B. increase the number of shoes he shines to maintain market share
C. wait and see what happens to the market price
D. not be affected by the number of competitors
Answer:
A. cut back on the number of shoes he shines
Explanation:
Assuming a competitive market, in the short run, an increase in the number of firms means an increase in competitiveness and, consequently, an increase in the service supply while demand stays the same. This change causes Sammie to experience a decrease in his market share and, therefore, he will cut back on the number of shoes he shines.
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy.
Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply.
a.Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
b. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
c. Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president.
d. Businesses make investment plans many months in advance.
Which of the following are examples of automatic stabilizers? Check all that apply.
a. Unemployment insurance benefits
b. Personal income taxes
c. The discount rate
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.
Your savings account currently has a balance of $32,300. You opened the savings account two years ago and have not added to the initial amount you deposited. If your savings have been earning an annual interest rate of 2 percent, compounded annually, what was the amount of your original deposit?
Answer:
Original deposit= $31,045.75
Explanation:
Giving the following information:
Your savings account currently has a balance of $32,300.
You opened the savings account two years ago.
Interest rate= 2 percent, compounded annually
To calculate the original sum we need to use the following formula:
PV= FV/(1+i)^n
PV= 32,300/(1.02^2)= $31,045.75
The Scrum Team should choose at least one high priority process improvement, identified during the Sprint Retrospective, and place it in the Product Backlog.
A. True
B .False
Answer:
B-False
Explanation:
After the retrospective discussion all the improvement items discussed are placed in the Product Backlog. To ensure continuous improvement, the next sprint backlog ( & not the current one) should include at least one high priority process improvement which was identified in the previous Sprint Retrospective meeting.
The Scrum Team should choose at least one high priority process improvement identified during the Sprint Retrospective and place it in the Product Backlog.
Explanation:The statement is true:
The Scrum Team should identify high priority process improvements during the Sprint Retrospective.These identified improvements should be placed in the Product Backlog.This allows the improvements to be prioritized, planned, and implemented in future sprints.Learn more about Scrum process improvement here:https://brainly.com/question/33442740
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Jack, a Caucasian male, works as a tennis coach with Shaquita, an African-American female. There is a well-known stereotype in the tennis community that women can’t serve as fast as men can. Based on the summaries of these two studies, which of the following statements would be most likely to decrease the speed of Shaquita’s serve because of the effects of stereotype threat?A) Shaquita, did you know that women make 99% of the decisions about which appliances to buy?
B) Shaquita . . . that’s an interesting name. So many of the women around here have boring names like "Mary" or "Sue."
C) Wow, Shaquita, did you see what Jim sold last month? Just remember, if you want your full commission this month, you’ve got to meet this week’s large appliance goals.
D) I expect all of the people on my sales team to do equally well—now let’s get out there and move some merchandise!
The correct question should be: "Jack, a Caucasian male, works in the sales department of a large home goods store with Shaquita, an African-American female. There is a well-known stereotype in the sales community that women sell less than men do. This stereotype is often accompanied by the idea that African-Americans sell less than Caucasians. Based on the summaries of these two studies, which of the following statements would be most likely to increase Shaquita’s sales of large appliances because of the effects of stereotype threat?"
Answer:
A) Shaquita, did you know that women make 99% of the decisions about which appliances to buy?
D) I expect all of the people on my sales team to do equally well, now let’s get out there and move some merchandise!
Explanation:
Stereotype threat occurs when a person who fits into a particular stereotyped group is worried about his or her action confirming that stereotype. This may end up affecting the person's performance on a task.
Both statements in options A and D chosen above, are likely to boost Shaquita's confidence and encourage her to improve her sales of large appliances.
Stereotype threat can impact performance of stereotyped groups; emphasizing stereotypes can have negative effects.
Stereotype threat is a phenomenon where individuals from stereotyped groups underperform in situations where stereotypes are activated. In the context of the question, a statement like C) Wow, Shaquita, did you see what Jim sold last month? Just remember, if you want your full commission this month, you’ve got to meet this week’s large appliance goals. would most likely decrease the speed of Shaquita’s serve due to the effects of stereotype threat by emphasizing the stereotype that women, like her, cannot serve as fast as men.
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 77 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 14 pounds per day). After ordering (fixed cost = $14 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding costs for the beans are $2.
a) What is the economic order quantity? (EOQ) for Kona coffee beans?b) What are the total annual holding costs of stock for Kona coffee beans?
Answer:
a. 464 beans
b. $464
Explanation:
a. The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Annual demand = 200 days × 77 pounds = 15,400
And, all other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= [tex]\sqrt{\frac{2\times \text{15,400}\times \text{\$14}}{\text{\$2}}}[/tex]
= 464 beans
The average inventory would equal to
= Economic order quantity ÷ 2
= 464 units ÷ 2
= 232 units
b. Holding cost = average inventory × carrying cost per unit
= 232 units × $2
= $464
Water resource economics. The riparian doctrine Select one: a. Is a method of allocating water, according to proportion of land next to a stream, used in the west and east United States. b. Is a method of allocating water dubbed "first-in-time, first-in-right." c. Is a method of allocating water developed by miners to account for water scarcity. d. Is a method of allocating water effective in humid climates (Eastern US) but that was replaced by the doctrine of prior appropriation in the west.
Answer:
a. Is a method of allocating water, according to proportion of land next to a stream, used in the west and east United States
Explanation:
Riparian Water Rights (Riparian Rights)
This reprsents a water allocation system, allowing landowners who owned lands along rivers and streams to use the water for basic domestic purposes including cooking, bathing, drinking and watering livestock.
These landowners were also responsible for ensuring that the water body is preserved in a unpolluted and undiminshed condition.
This Riparian Water Rights was used in may areas of common law heritage such as Western and Eastern United States including Canada among others. Outside the United States, Australia also used the Riparian Water Rights.
Jeremy operates his own small business, but he doesn't want to be bothered with accounting information. He tells his friends, "All I need accounting for is to prepare my income tax return for my business. I'll hire someone to do that for me." Jeremy's attitude would be disastrous if he managed a large firm, but is a reasonable view for a small business owner. (Points : 2) True False
Answer:
The correct answer is the option True, it would be reasonable.
Explanation:
To begin with, accounting is one of the most importants subjects to have in mind regarding the fact of openning and managing a business, no matter how small or large that firm will be. Moreover, accounting will facilitate the fact of keeping up with everything that goes in and goes out regarding money in the business and to also help the manager to see how well the incomes and outcomes are doing in the balance sheet. Therefore that accounting can help the manager to improve the performance of the business if the information is understood and used properly. Besides, accounting information is obligatorily important when regarding subjects of taxes and legal matters as well.
Secondly, although is important to keep up with the accounting of the business, a small company could not pay too much attention to it and instead focusing in other matters. However, it is very important to understand that to be a master in managing a business and to improve the performance of it, it is very important to give more attention to accounting information with the purpose of understanding the business better.
Jeremy's disregard for accounting principles, except for tax preparation, is not a reasonable view for any business owner as it overlooks the importance of accounting in decision-making and understanding the business's financial health.
Explanation:The statement that Jeremy's attitude toward accounting would only be reasonable for a small business owner but disastrous for a large firm is false. Accounting offers more than just preparation for income tax; it is a crucial element for decision-making at any business size. Accurate profit and loss accounting helps entrepreneurs make informed decisions about resource utilization and consider opportunity costs, which directly impact the viability and strategic planning of the business. Even for a small business, ignoring accounting principles can lead to suboptimal decisions, such as underpaying oneself or failing to grasp the full financial impact of business operations. Thus, a thorough understanding of accounting is vital irrespective of the enterprise’s size.
You own a portfolio that is invested 20 percent in stock A, 30 percent in stock B, and the remainder in stock C. The expected returns on these stocks are 3.7 percent, 14.5 percent, and 18.2 percent, respectively. What is the expected return on the portfolio?
Answer:
The expected return on the portfolio is 14.19%.
Explanation:
This problem require us to calculate the expected return on entire portfolio. The expected return on every stock that will be the part of portfolio is given in the question and their weightage in portfolio is also provided in the problem.
We can easily calculate the expected return using following weightage average formula.
ER portfolio' = WA * ERA + WB * ERB + WC* ERC
' WA = Weightage of stock in portfolio
ERA = Expected return on stock A
= 20% * 3.7 + 30% * 14.5 + 50* 18.2
= 14.19%
Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor who would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following costs:
Cost per Unit:
DM 31
DL 18
Variable Overhead 9
Answer:
Supplier's quotation (2,400 x $6.25) 150,000
Less: Relevant cost of production:
Direct material (2,400 x $31) 74,400
Direct labour (2,400 x $18) 43,200
Variable overhead (2,400 x $9) 21,600 139,200
Savings 10,800
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
To make an informed decision, Chucky Valters, the CEO of Quirch Inc., needs to compare the costs of purchasing 2,400 units of product PQ107 from the subcontractor with the in-house production costs. The purchase price from the subcontractor is $150,000 for 2,400 units, which translates to $62.50 per unit.
On the other hand, if Quirch produces the parts in-house, they would incur the following costs per unit:.s (DM) $31, Direct Labor (DL) $18, and Variable Overhead $9, totaling $58 per unit.
By comparing the purchase price of $62.50 with the in-house production cost of $58 per unit, Chucky can make an informed decision about whether to accept the subcontractor's offer or produce the parts in-house. If the purchase price is lower than the in-house production cost, it may be more cost-effective to buy from the subcontractor, but if the in-house production cost is lower, it would be better to manufacture the parts internally.
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Silver Mining is opening a new mineral extraction facility in the local town and will employ several thousand people. They have decided to install scrubbers on the smokestacks of their facility in order to protect the environment, even though they are not required by the law to install them. This is an example of:
Final answer:
Silver Mining's installation of scrubbers on smokestacks at a new facility is an example of corporate environmental responsibility aimed at reducing air pollution.
Explanation:
When Silver Mining opens a new mineral extraction facility and voluntarily installs scrubbers on their smokestacks without a legal requirement, they are engaging in corporate environmental responsibility. Scrubbers are used to clean emissions such as SO₂, NOx, and particulate matter before they enter the atmosphere. This decision reflects a commitment to reducing air pollution and protecting both the environment and local population's health, which could also prevent future environmental damage and public health issues, such as those experienced in communities near mining operations, as described in the provided references.
Final answer:
Silver Mining's installation of scrubbers is a form of corporate environmental responsibility that exceeds legal requirements to reduce pollution from their new mineral extraction facility, showing commitment to protecting the environment and public health.
Explanation:
The decision by Silver Mining to install scrubbers on the smokestacks of their new mineral extraction facility, even when not legally required to do so, is an example of corporate environmental responsibility. This proactive step goes beyond compliance and demonstrates a commitment to reducing the environmental impact of their operations. Scrubbers are technologies that clean emissions such as sulfur dioxide (SO₂), nitrogen oxides (NOx), particulate matter, and mercury from the smoke before it is released into the atmosphere. Power plants commonly use these devices to minimize air pollution. While other strategies may also achieve pollution reduction, such as switching to lower sulfur coal or using renewable energy, the installation of scrubbers is a direct method that addresses emissions at the source.
Environmental challenges associated with extractive industries, like mining, have historically led to significant health and environmental issues for local communities. These include air and water contamination from harmful chemicals and the degradation of land. Silver Mining's installation of scrubbers represents a trend where companies are recognizing the importance of not just meeting legal requirements, but also engaging in practices that safeguard the environment and public health.
Instability of user capability needs, design, and production processes are most likley to cause:_________-
Answer:
Cost increase and Schedule Slips
Explanation:
Schedule slips is the act of missing the deadline of the project and in order to avoid the schedule slips, person should plan their projects carefully so that could avoid the delays the schedule.
Instability, states it lacks the stability in the capability design, production processes and needs of the project, so, if the users lacks in the following areas, which in turn result in the increase in the cost of the project as well as the schedule slips.
The net present value of a proposed investment is negative. Therefore, the discount rate used must be:
A. greater than the project's internal rate of return.
B. less than the project's internal rate of return.
C. greater than the minimum required rate of return.
D. less than the minimum required rate of return.
Answer:
A. greater than the project's internal rate of return.
Explanation:
Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not. It shows the inverse relationship between the net present value and the discount rate
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Internal rate of return: It is that rate of return in which the net present value is zero. i.e NPV = zero
Karl and Leonard want to make trail mix. In order to get the right balance of ingredients for their tastes they bought 2 pounds of raisins at $ 3.95 per pound comma 3 pounds of peanuts for $ 2.08 per pound comma and 5 pounds of chocolate chips for $ 3.25 per pound. Determine the cost per pound of the trail mix.
Answer:
Cost per pound of the trail mix: $
Raisins 2 pounds @ $3.95 each = 7.90
Peanuts 3 pounds @ $2.08 each = 6.24
Chocolate 5 pounds @ $3.25 each = 16.25
Total 10 pounds 30.39
Cost per pound of the trail mix = $30.39/10 pounds
Cost per pound of the trail mix = $3.039 per pound
Explanation:
In this case, we need to determine the total cost of the trail mix, which is the quantity of each ingredient multiplied by price per ingredient. Then, we will calculate the cost per pound of the trail mix, which is the total cost divided by the total pounds of ingredients.
El valor de cada libra de mix de frutos secos preparado por Karl and Leonard is $1.625
To know the value per pound of the trail mix that Karl and Leonard made, it is necessary to carry out the following operations.
Calculate the total price of the quantities of nuts they bought by multiplying the value of each one by the number of pounds they bought.
2 pounds × $ 3.95 = $ 7.93 pounds × $ 2.08 = $ 6.245 pounds × $ 3.25 = $ 16.25Now it is necessary to know how many pounds of the mix of nuts they have by adding all the ingredients, for them the number of pounds of each ingredient must be added
2 pounds + 3 pounds + 5 pounds = 10 pounds
Finally, to know the value of each pound of trail mixed, it is necessary to divide the total value of the mix into the total number of pounds.
$ 16.25 ÷ 10 pounds = $ 1.625
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Your project sponsor, after reading through the risk response plan, has sent you an email asking you to justify the costs associated with the risk responses. You have decided to have each risk owner justify the cost for the responses to their risks. In delegating this work to them, provide instructions on how they would complete this analysis to show the benefit of the risk responses.
Answer:
Please find the detailed answer as follows:
Explanation:
A cost benefit analysis will be the most appropriate in this case.
Instructions to develop cost association with the risk responses:
List the risks associated with the system Note down the direct costs associated with the risk Note down the indirect costs associated with the risk Highlight the benefits associated with the solution for the risk
Assume that you are a vending machine dealer. You plan to purchase a vending machine for $200,000. One year later, you are expected to sell it back and receive $224,000 as cash. What is the IRR (internal rate of return) on this investment? Be sure to apply the definition of IRR and show your work.
3 points>
In order to buy the vending machine, you plan on borrowing $80,000 from Bank at 5% of interest rate and raise $120,000 from investors at 10% of cost of equity, are you going to accept this project? Why? (Tax rate is 30%). Show your work.
Answer:
1) 22%
2) YES as the return in the investment is 12% while the average cost of capital in this case; is of 8% hence there is a gain above the minimum accepted return.
Explanation:
[tex]-200,000 + \frac{224,000}{1+ IRR} = 0[/tex]
IRR = 12%
weighted-average cost of capital:
DEBT 80,000 x 5% = 4,000
EQUITY 120,000 x 10% = 12,000
VALUE 200,000 16,000
16,000 / 200,000 = 8%
The body system most responsible for homeostasis in response to stress and broadly dictates metabolism is ___.
The body system most responsible for homeostasis in response to stress and broadly dictates metabolism is the immune system
Explanation:
The immune system is a diverse cell and protein system that protects the body from infection. Each germ (microbe) which the immune system has ever overcome will be registered, so it can quickly recognize and remove the microbe if it goes in the body.
The capacity of the immune system to combat antigens is decreased when we become stressed. We are therefore more vulnerable to infections. The corticosteroid stress hormone can minimize the immune system efficacy (i.e., decreased lymphocyte numbers).
The equilibrium price of peanut butter is $5. A study comes out that says the fat in peanut buffer is good for your heart. Holding all other factors constant, which of the following scenarios could happen?
a. The price of peanut butter increases to $7 because of a supply shift.
b. The price of peanut butter decreases to $4 because of a supply shift.
c. The price of peanut butter decreases to $4 because of a demand shift.
d. The price of peanut butter increases to $7 because of a demand shift.
e. The price of peanut butter increases to $7 because of a demand AND a supply shift.
Answer:
The equilibrium price of peanut butter is $5. A study comes out that says the fat in peanut buffer is good for your heart. Holding all other factors constant, which of the following scenarios could happen?
The price of peanut butter increases to $7 because of a demand AND a supply shift
Explanation:
As a result of price increment, there would be a shift in the demand and supply. the increase in demand as a result of health importance would directly cause an increase in supply for the increase in demand to be met.
If a study comes out claiming that the fat in peanut butter is good for your heart, the demand for peanut butter would increase, leading to a higher price and quantity of peanut butter.
Explanation:In this scenario, the equilibrium price of peanut butter is $5. If a study comes out that says the fat in peanut butter is good for your heart, it would likely increase the demand for peanut butter. This would result in an increase in both the price and quantity of peanut butter, as the demand curve shifts to the right.
So, the correct answer is d. The price of peanut butter increases to $7 because of a demand shift.
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At L=64, K = 82, the marginal product of labor is 10 and the marginal product of capital is 20. What is the marginal rate of technical substitution (labor measured on the horizontal axis)?
The marginal rate of technical substitution is _________.(Enter a numeric response using real number rounded up to two decimal places)
Answer:
-0.5
Explanation:
Marginal rate of technical substitution (MRTS) refers to the rate at which the inputs are substituted for one another in a production of particular good.
Given that,
The marginal product of labor = 10
The marginal product of capital = 20
Hence,
[tex]MRTS=(-)\frac{MP_{L} }{MP_{K} }[/tex]
[tex]MRTS=(-)\frac{10}{20}[/tex]
= - 0.5
Therefore, the marginal rate of technical substitution is - 0.5.
The Marginal Rate of Technical Substitution (MRTS) is -0.5, indicating that each additional unit of capital can substitute 0.5 units of labor while maintaining the same production level.
Explanation:The Marginal Rate of Technical Substitution (MRTS) measures the rate at which a firm can substitute capital for labor and still remain at the same level of production. It is calculated by taking the negative ratio of the marginal product of labor (MPL) to the marginal product of capital (MPK), as labor is measured on the horizontal axis. In the given scenario, the MPL is 10 and the MPK is 20.
To calculate the MRTS, we use the formula: MRTS = -MPL/MPK. By substituting the given values, we get MRTS = -10/20 = -0.5.
So, in this case, the Marginal Rate of Technical Substitution is -0.5, meaning that each additional unit of capital used would decrease the amount of labor needed by 0.5 units, maintaining the same level of production.
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An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.
(a) Payment of interest on notes payable. Financing activityOper. activity(loss); invest. activity(cash proceeds from sale)Operating activityInvesting activityNoncash investing and financing activity
(b) Exchange of land for patent. Operating activityInvesting activityOper. activity(loss); invest. activity(cash proceeds from sale)Financing activityNoncash investing and financing activity
(c) Sale of building at book value. Investing activityOperating activityNoncash investing and financing activityOper. activity(loss); invest. activity(cash proceeds from sale)Financing activity
(d) Payment of dividends. Financing activityOperating activityNoncash investing and financing activityInvesting activityOper. activity(loss); invest. activity(cash proceeds from sale)
(e) Depreciation. Operating activityInvesting activityFinancing activityOper. activity(loss); invest. activity(cash proceeds from sale)Noncash investing and financing activity
(f) Receipt of dividends on investment in stock. Investing activityFinancing activityOper. activity(loss); invest. activity(cash proceeds from sale)Operating activityNoncash investing and financing activity
(g) Receipt of interest on notes receivable. Noncash investing and financing activityOper. activity(loss); invest. activity(cash proceeds from sale)Investing activityFinancing activityOperating activity
(h) Issuance of capital stock. Investing activityOper. activity(loss); invest. activity(cash proceeds from sale)Financing activityOperating activityNoncash investing and financing activity
(i) Amortization of patent. Noncash investing and financing activityInvesting activityOper. activity(loss); invest. activity(cash proceeds from sale)Operating activityFinancing activity
(j) Issuance of bonds for land. Oper. activity(loss); invest. activity(cash proceeds from sale)Operating activityFinancing activityInvesting activityNoncash investing and financing activity
(k) Purchase of land. Financing activityOper. activity(loss); invest. activity(cash proceeds from sale)Investing activityOperating activityNoncash investing and financing activity
(l) Conversion of bonds into common stock. Financing activityOperating activityInvesting activityNoncash investing and financing activityOper. activity(loss); invest. activity(cash proceeds from sale)
(m) Loss on sale of land. Noncash investing and financing activityInvesting activityOperating activityOper. activity(loss); invest. activity(cash proceeds from sale)Financing activity
(n) Retirement of bonds. Noncash investing and financing activityOper. activity(loss); invest. activity(cash proceeds from sale)Investing activityFinancing activityOperating activity
Answer:
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
So, the categorization is shown below:
(a) Payment of interest on notes payable - Operating activity
(b) Exchange of land for patent - non- cash investing and financing activity
(c) Sale of building at book value - Investing activity
(d) Payment of dividends - Financing activity
(e) Depreciation - Operating activity
(f) Receipt of dividends on investment in stock - Operating activity
(g) Receipt of interest on notes receivable - Operating activity
(h) Issuance of capital stock - Financing activity
(i) Amortization of patent - Operating activity
(j) Issuance of bonds for land - Non-cash investing and financing activity
(k) Purchase of land - Investing activity
(l) Conversion of bonds into common stock - Non-cash investing and financing activity
(m) Loss on sale of land - Operating activity
(n) Retirement of bonds. - Financing activity
Raising the reserve ratio __________ the ability of banks to create money (make loans) and decreases a bank’s ability to make a profit..
Answer:
Lowers
Explanation:
Required reserve ratio refers to the portion of deposits with banks that will be kept with central banks. If there is an increase in the required reserve ratio then the banks have to keep more amount of deposits with the central bank which reduces the bank's ability to give loans and create money.
Because with an increase in the reserve ratio, the less amount of deposits available with the banks for giving loans.
When the price level declines the interest rate falls, and consumers borrow more funds, which causes a movement down along the aggregate demand curve. interest rates fall, and consumers borrow more funds, which causes the aggregate demand curve to shift to the left. the interest rate rises, and consumers borrow fewer funds, which causes a movement up the aggregate demand curve. the interest rate is not affected, so there is no movement along the aggregate demand curve.
Answer:
Interest rates fall, and consumers borrow more funds, which causes the aggregate demand curve to shift to the left.
Explanation:
The quantity of money demanded is inversely related to the interest rate. One of the most useful features of the liquidity preference framework is that it allows us to see how changes in the demand and supply of money affect interest rates.
Equilibrium interest rates will increase if there is a…
Increase in money demand (+)
Decrease in money supply (+)
Equilibrium interest rates will decrease if there is a…
Decrease in money demand (-)
Increase in money supply (-)
A lower price level has the opposite affect inducing a decrease in the interest rate which triggers an increase in borrowing used for consumption expenditures and investment expenditures. The negative slope of the aggregate demand curve captures the inverse relation between the price level and aggregate expenditures on real production.When the price level changes, the interest-rate effect is activated, which is what then results in a change in aggregate expenditures and the movement long the aggregate demand curve.A higher interest rate can add to the overall cost of the expenditure. A lower interest rate can reduce the overall cost of the expenditure.
This means that changes in the interest rate can have a big impact on consumption and investment spending. The interest rate tends to increase and decrease as the price level increases and decreases. This means that a higher price level induces a higher interest rate which raises the cost of borrowing and discourages investment and consumption spending. A lower price level has the opposite result.
Suppose Amazon Inc. pays no dividends but spent $ 2.95 billion on share repurchases last year. If Amazon's equity cost of capital is 7.6 %, and if the amount spent on repurchases is expected to grow by 6.4 % per year, estimate Amazon's market capitalization. If Amazon has 428 million shares outstanding, what stock price does this correspond to?
Answer:
Market Capitalization = $261.567 Billion
Stock Price per share = $611.137 per share
Explanation:
given data
spent = $2.95 billion
equity cost of capital ke = 7.6 % = 0.076
grow = 6.4 % per year = 0.064
shares outstanding = 428 million = 0.428 Billion
to find out
Amazon’s Market Capitalization and stock price
solution
first we get here Amazon's market capitalization that is express as
Market Capitalization = Cash Flow (1 + g) ÷ (Ke - g) ..............1
here g is grow rate and ke is equity cost of capital
Market Capitalization = [tex]\frac{2.95(1+0.064)}{(0.076-0.064)}[/tex]
Market Capitalization = $261.567 Billion
and
Stock Price per share will be as
Stock Price per share = [tex]\frac{Market\ Capitalization}{shares\ outstanding}[/tex] ..................2
Stock Price per share = [tex]\frac{261.567}{0.428}[/tex]
Stock Price per share = $611.137 per share
he demand for labor is L = 4000minus300w, where L is the number of workers demanded and w is the hourly wage rate. The supply of labor is L = 200w. The equilibrium wage rate in this market is $ 8, and the equilibrium quantity of labor is 1600 workers. (Enter your responses as integers.) A minimum wage law is passed that sets the minimum wage at $9 per hour. As a result, 1300 workers are demanded and 1800 workers are supplied, so unemployment is 500workers. (Enter your responses as integers.) Do all workers benefit from the minimum wage law? No, because not everyone can find work at the higher wage. Which group of workers will have the least difficulty finding work at the minimum wage? A. Highly educated workers. Your answer is correct.B. Low skilled workers. C. Young and inexperienced workers. D. All of the above. The deadweight loss from the minimu
Answer:
Please find the detailed answer as follows:
Explanation:
The deadweight loss for the given information is = 1/2*2.5*300 = $375
The supply of labor of 1800 will have wage rate 1300 = 200*w
or w = 1300/200 = $6.5
Then the area of shaded portion in the figure or the deadweight loss will be 1/2*base(9-6.5) *altitude (1600-1300).
The establishment of a minimum wage leads to unemployment among workers and deadweight loss in the labor market, with highly educated workers facing the least difficulty in finding employment.
Explanation:The introduction of a minimum wage law sets the price of labor above the equilibrium, causing the quantity demanded by employers to fall and the quantity supplied by workers to rise, resulting in unemployment. At a minimum wage of $9, 1300 workers are demanded while 1800 are supplied, creating unemployment of 500 workers. Not all workers benefit from the minimum wage law; in fact, it often leads to a surplus of labor where some workers struggle to find employment.
When considering which group of workers will have the least difficulty finding work at the minimum wage, it is typically highly educated workers who fare better due to their qualifications and experience compared to low-skilled or young and inexperienced workers.
The deadweight loss in the labor market arises because the minimum wage creates a gap between the quantity of labor supplied and the quantity demanded, leading to inefficient allocation of resources and potential losses in welfare for both workers and employers.
Assume cereal and milk are complements for most consumers. Use the slider to show what will happen to the demand for cereal if the price of milk decreases?
Suppose you buy a new iClicker 2 from the Illinois bookstore for $29.99. Your friend was lucky and found a used iClicker 2 online for 10. Assume that iClickers are also produced in the U.S. How much does U.S. GDP increase by?
Answer:
U.S. GDP increase by $29.99
Explanation:
given data
buy new iClicker 2 from bookstore for $29.99
used iClicker 2 online = 10
to find out
How much does U.S. GDP increase by
solution
we know that GDP is only include value of good and service produce during the certain period of time
and here we buy new iClicker 2 from the Illinois bookstore at $29.99 is only part of U.S. GDP
but when used iClicker 2 online is at $10 is not the part of U.S. GDP
so we can say U.S. GDP increase by only at $29.99
so U.S. GDP increase by $29.99
Payments to principal on a mortgage
a. represent the cost to the individual for taking out the loan.
b. increase the market value of the home.
c. decrease the market value of the home.
d. decrease liabilities, thereby increasing home equity and wealth.
e. decrease liabilities, thereby decreasing home equity and wealth.
Answer:
A
Explanation:
Principal us the amount of the loan collected and when paying back the loan the principal and interest is paid in return
Lone Star has computed the following unit costs for the year just ended:
Direct material used $12
Direct labor $18
Variable manufacturing overhead $25
Fixed manufacturing overhead $29
Variable selling and administrative cost $10
Fixed selling and administrative cost $17
Under absorption costing, each unit of the company's inventory would be carried at:
$55.
$65.
some other amount.
$84.
$35.
Answer:
$84
Explanation:
The computation of each unit of the company's inventory under absorption costing is shown below:
= Direct material used + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $12 + $18 + $25 + $29
= $84
We simply added the first four-unit cost through which total unit cost would come
All other information which is given is not relevant. Hence, ignored it
A higher Discount Rate tends to ___________ the price of loans because the overall supply of bank reserves tends to be smaller..
Answer:
decrease
Explanation:
Discount rates on loans have an inverse relationship with loan prices; if the rate increases, the price will decrease and vice versa. In this case, a higher discount rate will decrease the price of loans as excess reserves in commercial banks and other lending institutions get smaller. This reduces the overall money supply in the economy.
Time Warner Inc. is a leading media and entertainment company whose businesses include Turner, Home Box Office, and Warner Bros. A number of years ago, the company's annual report contained the following information (dollars in millions): Net loss $ (13,402 ) Depreciation, amortization, and impairments 34,790 Decrease in receivables 1,245 Increase in inventories 5,766 Decrease in accounts payable 445 Additions to equipment 4,377 Source: Time Warner Inc.
Required: 1. Based on this information, compute cash flow from operating activities using the indirect method. (Enter your answers in millions. List loss amounts and cash outflows as negative amounts.)
Answer:
Net Cash flow from Operating activities $16,422
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net loss - $13,402
Adjustment made:
Add: Depreciation, amortization, and impairments $34,790
Add: Decrease in accounts receivable $1,245
Less: Increase in inventory -$5,766
Less: Decrease in accounts payable -$445
Total of Adjustments $29,824
Net Cash flow from Operating activities $16,422