10. Contractionary monetary policy is used to (b) reduce inflation rate.11. Development economics understands (c) why some countries are rich and others poor.12. If disposable income equals zero, (c) savings will be zero.
10. In the real world, contractionary monetary policy is implemented to reduce the rate of inflation. When the economy is experiencing high inflationary pressures, central banks may use tools such as increasing interest rates or reducing the money supply to slow down spending and curb inflation. By making borrowing more expensive and reducing the availability of money, the contractionary monetary policy aims to decrease aggregate demand and cool down an overheating economy.
11. The study of development economics seeks to understand why some countries are rich while others are poor. It examines various factors such as income disparities, economic growth, poverty, and inequality to identify the causes and drivers of economic development. Development economists analyze the role of institutions, policies, human capital, technology, and resources in shaping the economic outcomes of different nations. By studying these factors, policymakers can design strategies to promote sustainable development and reduce poverty levels.
12. When disposable income equals zero, it implies that individuals have no additional funds available for saving after meeting their consumption needs. In this scenario, (c) savings will be zero because there is no surplus income to allocate towards saving. Disposable income refers to the amount of money remaining after taxes and other deductions, and if it reaches zero, it indicates that individuals are fully utilizing their income for consumption purposes, leaving no room for savings.
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1. Maxis Bhd’s stock is priced at RM75 per share, and it plans to pay a RM10 cash dividend.
Required:
a) Assuming perfect capital markets, what will the per share price be after the dividend payment?
b) If the average tax rate on dividends is 24%, what will the new share price be?
a) Assuming perfect capital markets, the per share price after the dividend payment will be RM75.
b) If the average tax rate on dividends is 24%, the new share price will depend on the tax implications and investor preferences, and thus cannot be determined based on the information provided.
Explanation:
In perfect capital markets, the price of a stock is expected to adjust downward by the amount of the dividend payment on the ex-dividend date. This means that after the dividend payment of RM10 per share, the stock price is expected to decrease by an equivalent amount. Therefore, the per share price will be RM75 - RM10 = RM75.
The average tax rate on dividends will affect the after-tax value received by shareholders. It is common for dividends to be subject to taxation in many jurisdictions. However, the impact of taxes on the stock price will depend on various factors such as the tax rate, investor tax considerations, and investor demand for dividend-paying stocks. Therefore, the new share price after considering taxes cannot be determined solely based on the information given.
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L. Burnett began Burnett Refinishing Service on July 1 . Selected accounts are shown below as of July 31 , before any accounting adjustments have been made. \begin{tabular}{|l|r|} \hline prepaid rent & 11,040 \\ \hline prepaid advertising & 1,008 \\ \hline supplies & 4,800 \\ \hline unearned finishing f & 4,800 \\ \hline refinishing fees rev & 4,000 \\ \hline \end{tabular} Using the following information, prepare the accounting adjustments necessary on July 31 using the financial statement effects template. a. On July 1, the firm paid one year's rent of $11,040 in cash. b. On July 1,$1,008 cash was paid to the local newspaper for an advertisement to run daily for the months of July, August, and September. c. Supplies still available at July 31 total $1,760. e. In early July, a customer paid $960 in advance for a refinishing project. At July 31 , the project is one-half complete. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.
The accounting adjustments necessary on July 31 using the financial statement effects template:
| Account | Debit | Credit |
|---|---|---|
| Rent expense | 4,032 | Prepaid rent | 4,032 |
| Advertising expense | 248 | Prepaid advertising | 248 |
| Supplies expense | 3,040 | Supplies | 3,040 |
| Unearned fees revenue | 480 | Fees receivable | 480 |
The following accounting adjustments are necessary on July 31:
Rent expense: The rent expense for the month of July is $4,032. This is calculated by taking the total amount of rent paid on July 1 ($11,040) and multiplying it by the number of months that have passed since then (1/3). The rent expense is debited and the prepaid rent account is credited.
Advertising expense: The advertising expense for the month of July is $248. This is calculated by taking the total amount of advertising paid on July 1 ($1,008) and multiplying it by the number of months that have passed since then (1/3). The advertising expense is debited and the prepaid advertising account is credited.
Supplies expense: The supplies expense for the month of July is $3,040. This is calculated by taking the total amount of supplies purchased ($4,800) and subtracting the amount of supplies that are still available at the end of the month ($1,760). The supplies expense is debited and the supplies account is credited.
Unearned fees revenue: The unearned fees revenue for the month of July is $480. This is calculated by taking the total amount of fees received in advance ($960) and multiplying it by the percentage of the project that is complete (1/2). The unearned fees revenue is credited and the fees receivable account is debited.
These accounting adjustments are necessary to ensure that the financial statements accurately reflect the financial position and results of operations of Burnett Refinishing Service for the month of July.
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The partial financial statement of Red Farmers Ltd appear below :
Red Farmers LTD
Comparative financial information
2021
2020
Cash
25 000
32 000
Marketable securities
15 000
48 000
Account receivable (net)
50 000
24 000
Inventory
150 000
136 000
Property, plant and equipment (net)
160 000
160 000
Total Assets
400 000
400 000
Account payable
20 000
24 000
Short-term notes payable
40 000
72 000
Bonds payable
80 000
128 000
Ordinary shares
170 000
116 000
Retained earnings
90 000
60 000
Total liabilities and equity
400 000
400 000
Net sales
360 000
416 000
Cost of sales
184 000
192 000
Gross profit
176 000
224 000
Total expenses
74 000
96 000
Profit before income taxes
102 000
128 000
Income tax expense
30 000
28 000
Profit
72 000
100 000
Additional information :
Inventory balance in 2019 was $140 000
Receivables (net) balance in 2019 was $60 000
The total asset balance in 2019 was $460 000
Required :
2. Explain the change in liquidity and profitability of Red Farmers Ltd from 2020 to 2021.
Word limit : 100
Round your answer to two decimal places.
The liquidity of Red Farmers Ltd decreased from 2020 to 2021, while the profitability also decreased during the same period.
1. Liquidity:
The liquidity of a company refers to its ability to meet short-term obligations and convert assets into cash. In 2021, the cash balance decreased from $32,000 to $25,000, while the marketable securities decreased significantly from $48,000 to $15,000.
Additionally, accounts receivable (net) increased from $24,000 to $50,000. These changes indicate a decrease in liquidity because there is less cash and marketable securities available, and a higher amount tied up in accounts receivable.
2. Profitability:
The profitability of Red Farmers Ltd also decreased from 2020 to 2021. Net sales decreased from $416,000 to $360,000, while the cost of sales decreased from $192,000 to $184,000. This resulted in a decrease in gross profit from $224,000 to $176,000.
Furthermore, total expenses decreased from $96,000 to $74,000. However, despite the decrease in expenses, the profit before income taxes decreased from $128,000 to $102,000. Finally, the net profit decreased from $100,000 to $72,000.
Overall, the decrease in liquidity can be attributed to lower cash and marketable securities balances, along with higher accounts receivable. The decrease in profitability is primarily due to lower net sales and gross profit. These changes indicate a decline in both the liquidity and profitability of Red Farmers Ltd from 2020 to 2021.
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The current stock price for "Caterpillar Inc. (CAT)" is $170. To
purchase a call with an expiration date 1 months ahead and a strike
price of $170 would cost (bid price) $7.00. To purchase a put w
The current stock price for Caterpillar Inc. (CAT) is $170. To purchase a call option with an expiration date 1 month ahead and a strike price of $170, the bid price is $7.00. The cost of purchasing a put option is not provided in the given information.
Options are financial derivatives that provide the buyer with the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price (strike price) within a specified time period (expiration date). The cost of an option is determined by several factors, including the current stock price, strike price, time to expiration, market conditions, and implied volatility.
In the given scenario, the call option with a strike price of $170 is priced at $7.00. This means that to purchase this call option, the investor would need to pay $7.00 per share. The cost of purchasing a put option is not provided, so we cannot determine its price or compare it to the call option cost.
It's important to note that options trading involves risks, including the potential loss of the premium paid for the options. Investors should carefully consider their investment objectives, risk tolerance, and seek professional advice before engaging in options trading.
Note: Please note that the bid price mentioned in the question is for illustrative purposes only and actual prices may vary depending on market conditions and other factors. It's advisable to check real-time market data for accurate pricing information.
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Write a long commentary paper about this article. The commentary paper must include opinions, interpretations, character and subject’s feelings, personal reactions and evaluations.
Prediction markets are speculative exchanges created for the purpose of making accurate forecasts. Tradable assets are created whose final cash value is tied to a particular political event, such as whether the next U.S. president be a Republican or a Democrat, or a specific economic event, such as a change in monetary policy by the Board of Governors of the Federal Reserve System. Speculators who buy low and sell high are rewarded educational and research purposes. The IEM allows traders to for improving the market prediction; those who buy high and sell low are punished for degrading the market prediction. Evidence suggests that prediction markets are often more accurate than the experts. Examples of prediction markets open to the public include the Hollywood Stock Exchange, the lowa Electronic Markets (IEM), and TradeSports, among others. The Hollywood Stock Exchange (http://www.hsx.com) is the futures markets operated by the University of lowa Tippie College of Business. Unlike normal futures markets, the IEM is not-for-profit. The IEM’s low-stakes markets are run for buy and sell contracts based on, among other things, election results and economic indicators. In the fall of 2007, for example, speculators paid 59.9c for a contract that would pay $1 if the Democratic candidate won the 2008 presidential election, and zero otherwise. This means that the market prediction was a 59.9 percent probability of a Democratic victory, versus a 40.1 percent probability of a Democratic defeat. In late−2007,
Prediction markets are a type of market where people can trade contracts that pay out based on the outcome of an event. They have been shown to be more accurate than traditional forecasting methods, such as polls and expert opinions.
Prediction markets work by aggregating the knowledge and opinions of a large number of people. This is done by allowing people to buy and sell contracts that pay out based on the outcome of an event. The price of a contract reflects the collective belief of the market about the probability of that event happening.
For example, if there is a prediction market for the outcome of the 2024 US presidential election, and the price of a contract for a Democratic victory is $0.60, then the market believes that there is a 60% chance of a Democratic victory.
Prediction markets have been shown to be more accurate than traditional forecasting methods, such as polls and expert opinions. This is because prediction markets allow people to bet their money on their beliefs, which creates a strong incentive for them to be accurate.
Prediction markets can be used for a variety of purposes, including forecasting elections, predicting the outcome of sporting events, and assessing the risk of new technologies. They can also be used to improve decision-making by providing decision-makers with a more accurate picture of the future.
One of the benefits of prediction markets is that they are transparent. The prices of contracts are constantly changing, which reflects the changing beliefs of the market. This transparency allows decision-makers to see how the market is thinking about a particular event, and to adjust their own decisions accordingly.
Prediction markets are a powerful tool that can be used to improve forecasting and decision-making. They are still in their early stages of development, but they have the potential to revolutionize the way we make predictions about the future.
Prediction markets can be used to crowdsource information and expertise. This can be especially useful for forecasting events that are difficult to predict using traditional methods, such as technological breakthroughs or the outbreak of war.
Prediction markets can be used to create incentives for people to be accurate. This can help to improve the quality of information and forecasts.
Prediction markets can be used to promote transparency and accountability. By making prices public, prediction markets can help to ensure that decision-makers are aware of the market's opinion on a particular issue.
Overall, prediction markets are a promising new tool that has the potential to improve forecasting and decision-making. They are still in their early stages of development, but they have the potential to revolutionize the way we make predictions about the future.
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A bank offers 10.00% on savings accounts What is the effective annual rate if interest is compounded Answer format: Percentage Round to 4 decimal places (Example 9.2434\%, \% sign required Wil accept decimat format rounded to 6 decimal places (ex 0092434) )
The effective annual rate is 10.0000%.
To calculate the effective annual rate (EAR) when interest is compounded, we can use the formula:
EAR = (1 + (r / n))^n - 1
Where r is the nominal interest rate and n is the number of compounding periods per year.
In this case, the nominal interest rate is 10.00% (0.10) and the compounding is not specified. Assuming compounding is done annually (n = 1), we can calculate the EAR as follows:
EAR = (1 + (0.10 / 1))^1 - 1
EAR = (1 + 0.10)^1 - 1
EAR = 1.10 - 1
EAR = 0.10 or 10.0000%
Therefore, the effective annual rate is 10.0000%.
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1.How does the Internet affect the purchasing habits of users and what is its relationship to inventory management?
2.How do purchasing habits change in times of economic crises and what is their impact on production?
3.Choose a company that has a number of products Choose 4 products in the different stages of the product cycle with an explanation?
How does the Internet affect the purchasing habits of users and what is its relationship to inventory management?The internet has revolutionized the way people buy and sell goods and services.
With the widespread availability of the internet, consumers can easily access information about products and services, compare prices, and make purchases from the comfort of their homes or offices. As a result, the internet has made it easier for consumers to shop and has also changed their purchasing habits.
Consumers are now more likely to buy online, which has led to a shift in inventory management.Inventory management has become more complex in the age of the internet. Companies that sell products online need to have an efficient system in place to manage their inventory.
They need to be able to track their inventory levels in real-time and ensure that they have enough products in stock to meet the demands of their customers. They also need to be able to manage their inventory across multiple channels, including their website, social media, and other online platforms.
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1. "The FIN340 Company has a net profit margin of 9.00% on annual sales of $226,500,000 and the firm has 1,980,000 shares outstanding. If the firm's P/E ratio is 13.20, how much is the stock currently selling for?"
$124.68
"$1,645.76 "
$148.13
$135.90
"$1,510.00 "
"$1,645.90 "
$114.39
2. "Financial analysts forecast the FIN340 Company annual, sustainable growth for the future to be 7.10% per year and their most recent annual dividend paid was $3.85 - What is the value of FIN340 Company stock if the required rate of return is 14.90%?"
$52.86
$49.36
$56.71
$46.09
$62.30
$56.62
$60.74
calculate the stock price, we can use the formula: Stock Price = Earnings per Share (EPS) * P/E Ratio Given: Net profit margin = 9.00% = 0.09
Annual sales = $226,500,000 Shares outstanding = 1,980,000 P/E ratio = 13.20 First, we need to calculate the earnings per share (EPS): EPS = Net Profit / Shares Outstanding EPS = (Net Profit Margin * Annual Sales) / Shares Outstanding EPS = (0.09 * $226,500,000) / 1,980,000 EPS = $20,385,000 / 1,980,000 EPS = $10.30 Next, we can calculate the stock price: Stock Price = EPS * P/E Ratio Stock Price = $10.30 * 13.20 Stock Price = $135.90 Therefore, the stock is currently selling for $135.90. To calculate the value of the stock, we can use the dividend discount model (DDM) formula: Stock Price = Dividend / (Required Rate of Return - Growth Rate) Given: Dividend = $3.85 Sustainable growth rate = 7.10% = 0.071 Required rate of return = 14.90% = 0.149 Stock Price = $3.85 / (0.149 - 0.071) Stock Price = $3.85 / 0.078 Stock Price = $49.36 Therefore, the value of the FIN340 Company stock is $49.36.
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Scott Corporation sold a fixed asset used for operations for greater than its carrying amount. Scott should report the transaction in the income statement using the: A. Gross concept, showing the proceeds as part of revenues and the carrying amount as part of expenses in the continuing operations section. B. Net concept, showing the total amount as a component of other comprehensive income, net of income taxes. C. Net concept, showing the total gain as part of discontinued operations, net of income taxes. Net concept, showing the total gain as part of continuing operations, not net of income taxes.
Scott should report the transaction in the income statement using the net concept, showing the total gain as part of continuing operations, not net of income taxes. The answer to the given question is option D.
When a company sells a fixed asset that is utilized in its business operations for greater than its carrying value, it reports the transaction in the income statement using the net concept, demonstrating the total gain as part of continuing operations. The proceeds are shown as a part of revenues, while the carrying amount is shown as a part of expenses in the continuing operations section.
The sale of fixed assets, such as land or machinery, results in gains or losses. Gains on the sale of such assets may be determined by calculating the proceeds received from the sale and subtracting the asset's net book value (cost less accumulated depreciation). If the proceeds from the sale exceed the net book value, the company records a gain on the sale, which is reported on the income statement.
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The Action Research Dissertation: A Guide for Students and Faculty from the University Library. think about your future study. What method, basic or applied, seems most appropriate for your project? Explain your position.
The choice between a basic or applied method in research depends on the specific objectives and context of the study. Basic research aims to expand knowledge and understanding in a particular field by investigating fundamental principles and concepts.
It often focuses on theoretical frameworks and does not have immediate practical applications. On the other hand, applied research aims to solve practical problems and address specific issues by using existing knowledge and theories. It seeks to provide practical solutions and make a direct impact on real-world situations.
When deciding on the most appropriate method for a project, it is crucial to consider the research question, the intended outcomes, and the overall purpose of the study. If the goal is to explore new theories or concepts and contribute to the existing knowledge base, a basic research approach would be more suitable. However, if the objective is to address a practical problem and generate actionable recommendations, an applied research method would be more appropriate. Ultimately, the choice between basic and applied research depends on the specific goals and objectives of the study.
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Nataro, Incorporated, has sales of $670,000, costs of $337,000, depreciation expense of $82,000, interest expense of $47,000, and a tax rate of 24 percent. What is the net income for this firm? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32 .
To calculate the net income for Nataro, Incorporated, we need to subtract the costs, depreciation expense, interest expense, and taxes from the sales.The net income for Nataro, Incorporated is $155,040.
To calculate the net income for Nataro, Incorporated, we need to subtract the costs, depreciation expense, interest expense, and taxes from the sales.
Sales: $670,000
Costs: $337,000
Depreciation expense: $82,000
Interest expense: $47,000
Tax rate: 24%
First, we calculate the earnings before interest and taxes (EBIT) by subtracting the costs and depreciation expense from the sales:
EBIT = Sales - Costs - Depreciation Expense
= $670,000 - $337,000 - $82,000
= $251,000
Next, we calculate the earnings before taxes (EBT) by subtracting the interest expense from the EBIT:
EBT = EBIT - Interest Expense
= $251,000 - $47,000
= $204,000
Finally, we calculate the net income by applying the tax rate to the EBT:
Net Income = EBT - (Tax Rate * EBT)
= $204,000 - (0.24 * $204,000)
= $204,000 - $48,960
= $155,040
Therefore, the net income for Nataro, Incorporated is $155,040.
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You are thinking about opening a business. If you do, you will have to leave your current job, which pays $3000 month (you may assume you can always find alternative employment in this line of work, for the same pay). You anticipate your monthly revenues to be $8,800. Your operating costs include: -$1500 in rent for equipment, which is done on a month-to-month basis and can be cancelled at any time. - $1,200 to your workers in wages for the month. . -$600 for the supplies you used that month
You sign a one-year lease agreement for the office space, which comes to $22,000 a year and is paid in total, in advance. To help you out with your business, your uncle has lent you the $22,000 for the lease which you will pay back at the end of the year at 2% interest. You may assume you like your current work and the new business equally as well-that is, there are no non-pecuniary benefits for either line of work. PART A. The annual explicit cost of starting this business is dollars. PART B. The annual opportunity cost of starting this business is dollars.
PART C. After signing the leasing arrangement and taking the loan from your uncle, your explicit fixed costs associated with this business is dollars.
PART D. The annual economic surplus (profit) if you start this business is dollars.
The annual economic surplus (profit) if you start this business is $30,000.
PART A:
To calculate the annual explicit cost, we need to add up all the expenses associated with starting the business. These expenses include rent, wages, and supplies. The lease payment and loan interest will be considered separately as they are explicit fixed costs.
Rent for equipment: -$1,500 per month * 12 months = -$18,000 per year
Wages: -$1,200 per month * 12 months = -$14,400 per year
Supplies: -$600 per month * 12 months = -$7,200 per year
Annual explicit cost (excluding lease payment and loan interest) = -$18,000 - $14,400 - $7,200 = -$39,600 per year
PART B:
The annual opportunity cost of starting the business is the income you would have earned from your current job if you had not started the business. Your current job pays $3,000 per month, so the annual opportunity cost can be calculated as:
Opportunity cost = $3,000 per month * 12 months = $36,000 per year
PART C:
The explicit fixed costs associated with the business include the lease payment and the loan interest. The lease payment is $22,000, and the loan interest is 2% of the loan amount, which is also $22,000.
Explicit fixed costs = Lease payment + Loan interest = $22,000 + ($22,000 * 0.02) = $22,000 + $440 = $22,440
PART D:
To calculate the annual economic surplus (profit), we subtract the explicit cost (excluding lease and loan) and the opportunity cost from the anticipated revenue.
Anticipated revenue = $8,800 per month * 12 months = $105,600 per year
Annual economic surplus = Anticipated revenue - Explicit cost (excluding lease and loan) - Opportunity cost
= $105,600 - $39,600 - $36,000
= $30,000
Therefore, the annual economic surplus (profit) if you start this business is $30,000.
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Compare two companies within the automobile industry: one that is known for exceeding expectations (delight) and another that reflects simply positive satisfaction. What influenced the customer perceptions of performance (expectations, quality, responsiveness, price)?
Customer perceptions of performance in the automobile industry are influenced by factors such as expectations, quality, responsiveness, and price.
A company that exceeds expectations in the automobile industry is likely to create a sense of delight among customers by consistently delivering exceptional experiences. They may go above and beyond to meet customer expectations and provide added value through innovative features, superior performance, or outstanding customer service. By consistently exceeding expectations, this company creates positive customer perceptions of their performance.
On the other hand, a company that reflects positive satisfaction may meet customer expectations but might not necessarily exceed them. They provide a satisfactory experience in terms of quality, reliability, and customer support. While customers may be satisfied with their products and services, their performance may not stand out as exceptional or remarkable.
Customer perceptions of performance in both cases are influenced by factors such as expectations, quality, responsiveness, and price. Companies that exceed expectations are likely to set high standards, deliver superior quality products, demonstrate prompt and effective responsiveness to customer needs and concerns, and may offer competitive pricing that provides value for money. In contrast, companies reflecting positive satisfaction may meet baseline expectations regarding quality, responsiveness, and pricing but may not necessarily excel in these areas.
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: Suppose a country has a progressive tax structure where the marginal income tax rate increases with income. Assume the marginal income tax rate for a rich individual is 28 percent and the marginal income tax rate for a poor individual is 25 percent. The cost of a $100.00 charitable contribution for the rich individual is $ The cost of a $100.00 charitable contribution for the poor individual is $ Thus, charitable giving is more expensive for the (Round your response to two decimal places.) (Round your response to two decimal places.)
To determine the cost of a $100 charitable contribution for both a rich individual and a poor individual, we need to calculate the actual amount spent after accounting for the tax savings.
For the rich individual with a marginal income tax rate of 28 percent, the tax savings from a charitable contribution can be calculated as follows:
Tax savings = 28% * $100
= $28
Therefore, the cost of a $100 charitable contribution for the rich individual is:
Cost = $100 - Tax savings
= $100 - $28
= $72
For the poor individual with a marginal income tax rate of 25 percent, the tax savings from a charitable contribution can be calculated as follows:
Tax savings = 25% * $100
= $25
Therefore, the cost of a $100 charitable contribution for the poor individual is:
Cost = $100 - Tax savings
= $100 - $25
= $75
In summary:
The cost of a $100 charitable contribution for the rich individual is $72.
The cost of a $100 charitable contribution for the poor individual is $75.
Therefore, charitable giving is more expensive for the poor individual.
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Which one represents the objective function of maximizing the
total profit?
A. 27XJ + 18XZ + 48XP
B. 56XJ + 39XZ + 110XP
C. 29XJ + 21XZ + 62XP
D. 30XJ + 25XZ + 32XP
We cannot determine the option that represents the objective function of maximizing the total profit due to the absence of constraints.
Given the following options: A. 27XJ + 18XZ + 48XPB. 56XJ + 39XZ + 110XPC. 29XJ + 21XZ + 62XPD. 30XJ + 25XZ + 32XP We are to determine the option that represents the objective function of maximizing the total profit.
For us to obtain the objective function of maximizing the total profit, we need to identify the constraints of the problem. However, the constraints are not provided. Hence, we are unable to obtain the objective function that maximizes the total profit.
We are given that each option represents an objective function but we do not know the constraints in which they are derived from. Thus, we cannot evaluate the objective function to determine which one represents the objective function of maximizing the total profit. None of the given option provide total profit
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Complete question is "Which one represents the objective function of maximizing the total profit? options are -
A. 27XJ + 18XZ + 48XP
B. 56XJ + 39XZ + 110XP
C. 29XJ + 21XZ + 62XP
D. 30XJ + 25XZ + 32XP"
Activity supply: seven purchasing agents capable of processing 3,200 orders per year (22,400 orders) Purchasing agent cost (salary): $49,400 per year Actual usage: 20,200 orders per year Value-added quantity: 12,200 orders per year Required: 1. Calculate the volume variance. Round your intermediate calculation to two decimal places and the final answer to the nearest 2. Calculate the unused capacity variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dor. $
To calculate the volume variance, we need to determine the difference between the actual usage and the value-added quantity.
Actual usage: 20,200 orders per year
Value-added quantity: 12,200 orders per year
Volume Variance = Actual Usage - Value-Added Quantity
Volume Variance = 20,200 - 12,200
Volume Variance = 8,000 orders
The volume variance is 8,000 orders.
To calculate the unused capacity variance, we need to determine the unused capacity and the purchasing agent cost.
Capacity = Number of Purchasing Agents * Orders per Agent
Capacity = 7 * 3,200
Capacity = 22,400 orders
Unused Capacity = Capacity - Actual Usage
Unused Capacity = 22,400 - 20,200
Unused Capacity = 2,200 orders
Unused Capacity Variance = Unused Capacity * Purchasing Agent Cost
Unused Capacity Variance = 2,200 * $49,400
Unused Capacity Variance = $108,680
The unused capacity variance is $108,680.
Therefore, the volume variance is 8,000 orders and the unused capacity variance is $108,680.
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The interest rate on a GIC is 4.56% compounded monthly. What is the purchase price of the GIC if it has a maturity value of $38,237 in 4 years and 8 months?
The purchase price of the GIC is $29,864.49.
The purchase price of a GIC with a maturity value of $38,237 in 4 years and 8 months, with an interest rate of 4.56% compounded monthly can be calculated using the formula below:
P = M / [tex](1+\frac{r}{n})^n^t[/tex]
Where:P = purchase price
t = time in years
n = number of times compounded annually
r = interest rate in decimal
M = maturity value
Therefore, t = 4 + 8/12 = 4.67 yearsn = 12, r = 0.0456 and M = $38,237
Substituting these values into the formula,
P = $38,237 / [tex](1+0.0456/12)^(^1^2^*^4^.^6^7^)[/tex]≈ $29,864.49
A formula used to calculate the purchase price of a GIC can be given by the following:P = M / [tex](1+\frac{r}{n})^n^t[/tex]Where, P is the purchase price,t is the time in yearsn is the number of times compounded annually,r is the interest rate in decimalM is the maturity valueWe have given that the interest rate on a GIC is 4.56% compounded monthly and has a maturity value of $38,237 in 4 years and 8 months.
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1. According to Shaw:
Question 16 options:
a) The Foreign Corrupt Practices Act legalized paying off foreign officials for business favors.
b) The Foreign Corrupt Practices Act prohibits grease payments to the employees of foreign governments who have primarily clerical or ministerial responsibilities.
c) The United States is the only nation that has passed domestic legislation implementing the OECD Anti-Bribery Convention.
d)Moral theorists and society as a whole do distinguish between prudential reasons and moral reasons.
According to Shaw, the correct option is:
d) Moral theorists and society as a whole do distinguish between prudential reasons and moral reasons.
Shaw suggests that moral theorists and society generally make a distinction between prudential reasons and moral reasons. Prudential reasons refer to actions taken for self-interest or personal gain, whereas moral reasons involve considerations of right and wrong, independent of personal interests. This differentiation helps in understanding and evaluating ethical behavior and decision-making in various contexts.
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Now consider the market for automobiles and the second article ""Chip Shortage Puts Big Dent in US Auto Sales."" Use supply and demand graphs for automobiles to show what is happening in the automobile market. Are any curves shifting? Explain why or why not. On your graph show what happens to P and Q for automobiles?
In the market for automobiles, the article mentions a "Chip Shortage" that is affecting US auto sales. To illustrate the impact on the automobile market, we can analyze the changes in supply and demand using supply and demand graphs.
Due to the chip shortage, the supply curve for automobiles would shift to the left. This is because the shortage of chips disrupts the production of vehicles, reducing the quantity of automobiles supplied at each price level. The leftward shift of the supply curve signifies a decrease in supply.
On the other hand, the demand curve for automobiles is not explicitly mentioned in the article. Without any specific information about changes in consumer preferences or purchasing power, we can assume the demand curve remains unchanged.
With the leftward shift in the supply curve and no change in the demand curve, the equilibrium price (P) for automobiles would likely increase. The quantity (Q) of automobiles, however, would decrease as a result of the reduced supply.
By plotting the supply and demand curves on a graph, the shift in the supply curve to the left would be evident, and the new equilibrium point would indicate the higher price and lower quantity of automobiles in the market due to the chip shortage.
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consumer advisories about raw or undercooked menu items must include a statement about
Consumer advisories about raw or undercooked menu items must include a statement about the increased risk of foodborne illnesses.
Consumer advisories regarding raw or undercooked menu items are necessary to inform customers about potential health risks associated with consuming such food. Raw or undercooked foods, particularly meats, seafood, eggs, and unpasteurized dairy products, may contain harmful bacteria or parasites that can cause foodborne illnesses. These advisories serve as a warning to consumers, emphasizing the increased risk of foodborne illnesses when consuming these items. By providing this information, establishments fulfill their responsibility to ensure that customers are aware of the potential health hazards and can make informed decisions regarding their food choices.
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Vander Company provides medical care and insurance benefits to its retlrees. In the current year, Vander agrees to pay $11,200 for medical insurance and contribute an additional 4% of the employees' $217,000 gross salaries to a retirement program. (1) Record the entry for these accrued (but unpald) benefits on December 31 . (2) Assuming $6,700 of the retirement benefits are not to be pald for five years, how should this amount be reported on the current balance sheet?
(1) Recording the entry for accrued (but unpaid) benefits on December 31:
Date: December 31
Accrued Medical Insurance Expense: $11,200
Accrued Retirement Contribution Expense: ($217,000 x 4%) = $8,680
Accrued Medical Insurance Payable: $11,200
Accrued Retirement Contribution Payable: $8,680
Explanation: The entry records the expense for the accrued medical insurance and retirement contributions and establishes the corresponding payables.
(2) Reporting the $6,700 retirement benefits on the current balance sheet:
The portion of the retirement benefits not to be paid for five years ($6,700) should be classified as a long-term liability on the current balance sheet. Specifically, it should be reported under the "Long-term Liabilities" section.
Balance Sheet (current):
...
Long-term Liabilities:
Retirement Benefits Payable (due in five years): $6,700
...
Explanation: Since the retirement benefits are not expected to be paid within the next year, they are classified as a long-term liability. This properly reflects the timing of the payment and provides a more accurate representation of the company's financial position.
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You receive $1,000 every year for 13 years except for years 3
and 5. What is the present value of the receipts? Discount rate =
11%.
The present value of the receipts is approximately $9,530.37.
To calculate the present value of the receipts, we need to discount each cash flow to its present value and sum them up. In this case, we receive $1,000 every year for 13 years, except for years 3 and 5. The discount rate given is 11%.
To calculate the present value of each cash flow, we use the formula:
PV = CF / (1 + r)^n
Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods.
For years 3 and 5, where there are no cash flows, we simply ignore them in the calculation.
Now, let's calculate the present value of each cash flow:
Year 1: PV = $1,000 / (1 + 0.11)^1 = $900.90
Year 2: PV = $1,000 / (1 + 0.11)^2 = $811.62
Year 4: PV = $1,000 / (1 + 0.11)^4 = $673.01
Year 6: PV = $1,000 / (1 + 0.11)^6 = $530.31
Year 7: PV = $1,000 / (1 + 0.11)^7 = $476.36
Year 8: PV = $1,000 / (1 + 0.11)^8 = $428.09
Year 9: PV = $1,000 / (1 + 0.11)^9 = $385.47
Year 10: PV = $1,000 / (1 + 0.11)^10 = $347.08
Year 11: PV = $1,000 / (1 + 0.11)^11 = $312.65
Year 12: PV = $1,000 / (1 + 0.11)^12 = $281.98
Year 13: PV = $1,000 / (1 + 0.11)^13 = $254.64
Now, we sum up all the present values:
PV = $900.90 + $811.62 + $673.01 + $530.31 + $476.36 + $428.09 + $385.47 + $347.08 + $312.65 + $281.98 + $254.64 = $9,530.37
Therefore, the present value of the receipts, taking into account the discount rate of 11%, is approximately $9,530.37.
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Based on the following cost data, items labeled (x) and (y) in the table below are which of the following amounts, respectively? Select one: a. (x)=$5.00;(y)=$4.00 b. (x)=$3.00;(y)=$3.00 c. (x)=$2.50;(y)=$2.00 d. (x)=$5.00;(y)=$2.00
The answer is:(x)=$8.00;(y)=$7.14.Cost of item (y) = $10 / (1 + 40/100)= $10 / 1.4= $7.14So, the cost of item (y) is $7.14.
The given cost data is shown below:ItemCostMarginX$7.50%25%Y$6.00%40%Now, we have to find the cost of items (x) and (y).To find the cost of item (x), we use the following formula:Cost = Selling price / (1 + Margin%)As per the given data, Selling price of item (x) = $10 and Margin% = 25%Now, putting these values in the above formula, we get:Cost of item (x) = $10 / (1 + 25/100)= $10 / 1.25= $8So, the cost of item (x) is $8.Now, to find the cost of item (y), we use the following formula:Cost = Selling price / (1 + Margin%)As per the given data, Selling price of item (y) = $10 and Margin% = 40%Now, putting these values in the above formula, we get:Cost of item (y) = $10 / (1 + 40/100)= $10 / 1.4= $7.14So, the cost of item (y) is $7.14.Therefore, the answer is:(x)=$8.00;(y)=$7.14.
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Rikell company produces helmets using labor (L) and capital (K). Its production function is given by the following expression:
Q = 38 L + 24 K
where Q is the output of helmets.
The prices of labor (PL), capital (PK), helmet (P) and the cost (C) are the following:
PL=75, PK=85, P=59 and C=5470
What is the slope of Rikell's Isoquant?
In this case, the slope of the isoquant is equal to the ratio of the prices of labor and capital, i.e., PL/PK. The slope of Rikell's isoquant is 1.583
The slope of Rikell's isoquant represents the rate at which the firm can trade off capital (K) for labor (L) while maintaining the same level of output (Q). It is determined by the marginal rate of technical substitution (MRTS), which measures the rate at which one input can be substituted for another while keeping output constant.
Mathematically, the MRTS is given by the ratio of the marginal product of labor (MPL) to the marginal product of capital (MPK):
MRTS = MPL / MPK
In the given production function, the MPL is equal to 38 and the MPK is equal to 24. Therefore, the MRTS can be calculated as:
MRTS = 38 / 24 = 1.583
The slope of the isoquant is equal to the MRTS. Thus, the slope of Rikell's isoquant is 1.583.
It's important to note that the prices of labor (PL) and capital (PK) do not directly affect the slope of the isoquant. Instead, the prices of labor and capital determine the cost of production (C). The ratio of the prices (PL/PK) affects the firm's cost-minimizing decisions and the optimal input combination, but it does not directly impact the slope of the isoquant.
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Waupaca Company establishes a $310 petty cash fund on September 9. On September 30, the fund shows $94 in cash along with receipts for the following expenditures: transportation-in, $42; postage expenses, $64; and miscellaneous expenses, $107. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $350.
(1) The September 9 entry to establish the petty cash fund:
Date Account Debit Credit
September 9 Petty Cash $310
Cash $310
Explanation:
To establish the petty cash fund, the company debits the Petty Cash account and credits the Cash account for the same amount of $310.
(2) The September 30 entry to reimburse the petty cash fund:
Date Account Debit Credit
September 30 Transportation-in Expense $42
Postage Expense $64
Miscellaneous Expense $107
Cash $213
Petty Cash $213
Explanation:
To reimburse the petty cash fund, the company debits the appropriate expense accounts (Transportation-in Expense, Postage Expense, and Miscellaneous Expense) for their respective amounts. Then, it debits the Cash account for the total amount of the reimbursement, which is $213. Finally, it credits the Petty Cash account for the same amount of $213.
(3) The October 1 entry to increase the petty cash fund to $350:
Date Account Debit Credit
October 1 Petty Cash $40
Cash $40
Explanation:
To increase the petty cash fund to $350, the company debits the Petty Cash account for the additional amount of $40. It then credits the Cash account for the same amount of $40.
Please note that these journal entries are based on the information provided. The specific account names and amounts may vary based on the company's chart of accounts and internal policies. It is always recommended to consult with an accounting professional for accurate and specific journal entries.
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Nuts and Bolts Inc. (NBI) is a Canadian-based public company located in Milton, Ontario. It prepares its financial statements in accordance with IFRS with a December 31 year end. With the increasing population in Milton, NBI has found success supplying hardware stores with inventory sourced from other countries. NBI was founded five years ago by Peter and Joshua, business partners who used to do project management in a construction company together. Joshua had an idea that if quality hardware purchases could be sourced from elsewhere and provided to local hardware stores in Milton, this would help to keep construction costs low for the increasing population coming to the city. NBI has never formally tracked its foreign purchases before. However, over the last three years NBI has sourced many more goods from foreign countries and would like to understand where the purchases are coming from so that a hedging strategy can be adopted. To reduce shipping costs and earn discounts for bulk buys, NBI only purchases foreign goods once a year in each country it deals with. In the most recent year, NBI placed all inventory orders on December 15, 20X8, and took delivery on January 15, 20X9. Advanced Financial Reporting Project 2 13 / 14 Use Power BI to provide an analysis so that Peter and Joshua can understand their foreign-currency transactions. Required: a) Using the Excel file "Prep-AFR-ASN06-Q6.G" prepare the following: i. Create a card visualization of how many countries NBI does business with. (0.5 marks) ii. Create a map visualization of the supplier locations. (0.5 marks) iii. Create three tables showing the foreign exchange rates for Jamaica and Malaysia in effect on (1 mark): a. The day the order was placed (December 15, 20X8) b. The year-end date (December 31, 20X8) c. The day the order was paid for (January 15, 20X9) Hint: Your visualization must be selected before you can work on it.
To provide an analysis so that Peter and Joshua can understand their foreign-currency transactions, we can use Power BI to create the following visualizations:
A card visualization showing how many countries NBI does business with.
A map visualization of the supplier locations.
Three tables showing the foreign exchange rates for Jamaica and Malaysia in effect on the day the order was placed, the year-end date, and the day the order was paid for.
The card visualization will show the total number of countries that NBI does business with. This will help Peter and Joshua to understand the scope of their foreign operations. The map visualization will show the locations of NBI's suppliers. This will help Peter and Joshua to understand the geographic distribution of their foreign operations. The three tables will show the foreign exchange rates for Jamaica and Malaysia on the three dates specified. This will help Peter and Joshua to understand the impact of currency fluctuations on their foreign transactions.
By creating these visualizations, we can provide Peter and Joshua with a comprehensive overview of their foreign-currency transactions. This will help them to make informed decisions about how to manage their foreign currency risk.
Here are the steps on how to create the visualizations in Power BI:
Import the Excel file "Prep-AFR-ASN06-Q6.G" into Power BI.
In the Visualizations pane, select the Card visualization.
In the Fields pane, select the Country field.
Click OK to create the visualization.
Repeat steps 2-4 to create the Map visualization.
In the Visualizations pane, select the Table visualization.
In the Fields pane, select the ExchangeRate field.
In the Date field, select the Date field.
Click OK to create the visualization.
Repeat steps 6-9 to create two more tables, one for Jamaica and one for Malaysia.
Once the visualizations are created, you can share them with Peter and Joshua so that they can use them to understand their foreign-currency transactions.
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Consider the following demand and supply equations. Demand: Q=160−3P Supply: Q=10+2P On your turn-in sheet, do the following: 1. Find the equilibrium price and quantity. Show math work. (1 point) 2. Graph the functions on the axes provided, numerically labeling the equilibrium point. You don't have to draw to scale. ( 2 points) 3. Show a price of $18 on this graph. Label clearly and numerically the resulting shortage or surplus that occurs.
The equilibrium price and quantity are found by setting the demand and supply equations equal to each other. A graph is used to show the equilibrium point and the resulting shortage at a price of $18.
1. To find the equilibrium price and quantity, we need to set the demand and supply equations equal to each other and solve for P: 160 - 3P = 10 + 2P
Simplifying and solving for P, we get:
5P = 150
P = $30
To find the equilibrium quantity, we can substitute this value of P into either the demand or supply equation:
Q = 160 - 3P
Q = 160 - 3(30)
Q = 100
Therefore, the equilibrium price is $30, and the equilibrium quantity is 100.
2. To graph the functions, we can plot the demand and supply curves on the same set of axes.
Demand: Q = 160 - 3P
Supply: Q = 10 + 2P
On the graph, we can label the equilibrium point (30, 100) numerically.
3. To show a price of $18 on the graph, we can plot a horizontal line at a price of $18 and see where it intersects with the demand and supply curves. At a price of $18, the quantity demanded is:
Q = 160 - 3P
Q = 160 - 3(18)
Q = 106
The quantity supplied is:
Q = 10 + 2P
Q = 10 + 2(18)
Q = 46
Therefore, at a price of $18, there is a shortage of:
Shortage = Quantity Demanded - Quantity Supplied
Shortage = 106 - 46
Shortage = 60
We can label this shortage numerically and clearly on the graph.
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The lowest profit a firm should ever make in the short run is: A) zero economic profits. B) the losses associated with the fixed costs of the firm.
The correct option among the given options in the question is A) zero economic profits.The lowest profit a firm should ever make in the short run is zero economic profits.
Economic profit is the difference between the total revenue earned by the firm and the total costs incurred in producing the output. Economic profits are negative when the total costs exceed the total revenue of the firm.
The short run is a period in which the firm can change the number of workers it employs but cannot change the size of its factory or other production facilities.
In the short run, the fixed costs of the firm are constant. Therefore, the lowest profit a firm should ever make in the short run is zero economic profits. In the short run, if the firm earns zero economic profits, it covers all its variable costs of production and at least part of its fixed costs of production. Hence, the correct option is A) zero economic profits.
The short-run is the duration during which a company can modify the number of employees that it hires but cannot alter the size of its production facilities or factory. Hence, the fixed costs of a company remain constant during the short-run.
The lowest profit a firm should ever make in the short run is zero economic profits.Economic profit is calculated as the difference between the total revenue earned by the company and the total cost of producing its output.
A company experiences economic profits when the total revenue earned exceeds the total costs incurred, but the reverse is true when the total cost incurred exceeds the total revenue earned.
Zero economic profits occur when the firm covers all the variable costs of production and some part of its fixed costs of production. It is the lowest amount of profit that a company should earn in the short-run.
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Explain the price and cost tradeoffs associated with
monopolistic competition relative to monopoly
In monopolistic competition, there are price and cost tradeoffs compared to a monopoly. Monopolistic competition refers to a market structure where multiple firms sell differentiated products that are close substitutes for each other, giving each firm some degree of market power. Here are the price and cost tradeoffs associated with monopolistic competition relative to a monopoly:
Price Tradeoffs:
Monopolistic competition: Due to product differentiation and the presence of close substitutes, firms in monopolistic competition have some flexibility in setting prices. They can engage in non-price competition, such as advertising and product differentiation, to attract customers. This can lead to a wider range of prices among firms in the market.
Monopoly: A monopoly has significant market power as the sole supplier of a product or service, allowing it to set prices at a level that maximizes its profit. The absence of close substitutes gives the monopoly firm more control over pricing decisions, resulting in potentially higher prices compared to monopolistic competition.
Cost Tradeoffs:
Monopolistic competition: In monopolistic competition, firms may need to invest in advertising, product differentiation, and marketing to establish a unique brand and attract customers. These costs can be significant and impact profitability. However, due to the presence of competition, firms may face pressure to keep their costs relatively lower to remain competitive in pricing and maintain profitability.
Monopoly: A monopoly, being the sole provider in the market, may not face the same level of competition as firms in monopolistic competition. This reduced competitive pressure can lead to potentially higher costs, as there is no need for the monopoly to focus on cost efficiency. The lack of competition may result in a less optimal allocation of resources, leading to potentially higher production costs.
In summary, monopolistic competition offers greater price flexibility but places pressure on firms to manage costs to remain competitive. On the other hand, a monopoly has more control over pricing decisions but may face higher costs due to the absence of competition.
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You have just received the following e-mail from Ben, a friend of yours who works at Building Together Pty (Ltd), a construction company based in Woodstock. You are required to answer questions asked by Ben in the mail. Hi Tshego. The construction manager that I report to has asked for feedback on a number of issues relating to the treatment of PPE for the year ended 31 July 2013. I really need your help as I am a little uncertain where to start with answering her questions. So here goes......
1. On 1 August 2012, Machine A was delivered to the premises of Building Together Pty (Ltd). On this date the machine was recognised at an amount of R1 800 000. On 31 July 2013, the business paid the supplier R2 070 000. The payment period was longer than normal credit terms. Please explain why the business recognised Machine A at a different amount to the amount paid to the supplier on 31 July 2013
2. Building Together Pty (Ltd) ordered Machine B from a supplier in Gauteng on 2 July 2013. The purchase price of Machine B amounted to R765 000. The contract indicated that the machine would be sent by truck, FOB shipping point, on 28 July 2013 and would be paid for in full on the date of delivery. The machine is expected to be delivered to our business premises on 21 August 2013. The bookkeeper has already recognised the machine and the amount of R765 000 is already sitting in the PPE: Machinery account. How can this be? It is not physically on the business premises AND it has not been paid for! Please provide the general journal entry/ies that would be processed on the dates underlined. If no journal entry is required, please provide a reason for this.
1. The business recognized Machine A at a different amount than the amount paid to the supplier on 31 July 2013 because the recognition of the machine's cost is based on the accounting principle of historical cost.
2. The recognition of Machine B and the amount of R765,000 in the PPE: Machinery account before its physical delivery and full payment can be explained by the accounting principle of accruals.
1. The business recognized Machine A at a different amount than the amount paid to the supplier on 31 July 2013 because the recognition of the machine's cost is based on the accounting principle of historical cost. According to the historical cost principle, assets are initially recorded at their original cost. In this case, on 1 August 2012, Machine A was recognized at its cost of R1,800,000, which represents the original cost of acquiring the machine.
The payment made on 31 July 2013 for R2,070,000 includes not only the cost of the machine but also any additional amounts such as interest, penalties, or other financial charges related to the longer payment period than normal credit terms. The difference between the recognized amount and the payment made represents the additional financial charges associated with the extended credit terms.
2. The recognition of Machine B and the amount of R765,000 in the PPE: Machinery account before its physical delivery and full payment can be explained by the accounting principle of accruals. According to the accrual accounting principle, revenues and expenses are recognized when earned or incurred, regardless of the cash inflow or outflow.
In this case, although Machine B is not physically present on the business premises, the contract with the supplier indicates that the ownership and risks associated with the machine will transfer to Building Together Pty (Ltd) once it is sent by truck, FOB (Free on Board) shipping point, on 28 July 2013. Therefore, the company can recognize the machine as an asset and record its cost of R765,000 in the PPE: Machinery account.
Regarding the journal entry, assuming no other charges or costs are involved, the entry on 28 July 2013 would be:
PPE: Machinery Dr. R765,000
Accounts Payable Cr. R765,000
This entry records the increase in the PPE: Machinery account and the corresponding liability to the supplier in the Accounts Payable account, reflecting the expected delivery and obligation to pay for the machine.
It's important to note that specific circumstances and additional information may require adjustments to the journal entry, so consulting with the company's bookkeeper or accountant is advisable to ensure accuracy in the accounting treatment.
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