Ratios are important to small and medium-sized businesses for a variety of reasons. Here are five of the most important ratios for small and profit margin medium-sized enterprises:1. Current Ratio: The current ratio is calculated by dividing current assets by current liabilities.
It is used to determine if a company has enough current assets to cover its current liabilities. A ratio of 2:1 is considered good, as it indicates that the company has enough current assets to cover its current liabilities. For example, if a company has current assets of $100,000 and current liabilities of $50,000, the current ratio is 2:1.
2. Quick Ratio: The quick ratio is calculated by dividing quick assets by current liabilities. Quick assets include cash, accounts receivable, and other assets that can be quickly converted to cash. The quick ratio is a more stringent measure of liquidity than the current ratio because it excludes inventory.
which may be difficult to sell quickly. For example, if a company has quick assets of $75,000 and current liabilities of $50,000.
The quick ratio is 1.5:1.3. Sales Turnover: The sales turnover ratio is calculated by dividing the cost of goods sold by the average inventory. It is used to measure how efficiently a company is managing its inventory. A high sales turnover ratio indicates that a company is selling its inventory quickly, which is a good sign.
For example, if a company has a cost of goods sold of $500,000 and an average inventory of $100,000, the sales turnover ratio is 5:1.4. Debtors' Collection Period: The debtors' collection period is calculated by dividing the average accounts receivable by the average daily sales. It is used to measure how quickly a company collects its accounts receivable.
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Which of the following is NOT correct about the reasons why Alexander Hamilton supported the establishment of the national bank?
O National bank is necessary to create national currency.
O Only wealthy people could invest thus benefit from the system.
© National bank is the sate plage to deposit and transfer money.
O National debt is good for the country. The more Americans owe the country, the more people had an interest in the success of the country. If you loan money to someone, you want that
person to be able to pay you back, so you want them to be successful.
© National bank is necessary for the United States to become a strong commercial and manufacturing country that can compete with other Asian and European empires.
The statement that is NOT correct about the reasons why Alexander Hamilton supported the establishment of the national bank is: Only wealthy people could invest thus benefit from the system.
What is a national bank? A national bank is a commercial bank that is chartered under the federal government of the United States of America, as opposed to the state government. In this way, it is responsible for monitoring the country's monetary policy and regulating the money supply.
A national bank acts as the government's banker, performs business with other banks, and assists in the country's economic development. What is the importance of a national bank? The main reasons Alexander Hamilton supported the establishment of a national bank were to: Create a national currency that would support a strong and unified US economy. The national bank would be a safe place for the government to deposit and transfer money.
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Taylor used to work as a yoga instructor at the local gym earning $40000 a year. Taylor quit that job and started working as a personal trainer. Taylor makes $55,000 in total annual revenue. Taylor's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $2,100 per year for equipment. Taylor's explicit costs are Multiple Choice $20,100; $30,000 $30,000; $20,100 $40,000; $15,100 $15,100; $40,000 and Taylor's implicit costs are
Taylor's implicit costs, you must subtract her explicit costs from her total revenue. Implicit costs = Total revenue - Explicit costs Implicit costs = $55,000 - $15,100Implicit costs = $39,900Therefore, Taylor's implicit costs are $39,900.
Explicit costs are out-of-pocket costs that are clearly identified and accounted for. Implicit costs are more difficult to calculate. Implicit costs are the opportunity costs that result from the use of resources for a specific purpose rather than for the most beneficial alternate purpose. Implicit costs are usually measured as the difference between the actual return from an investment and the expected return from an alternative investment. Taylor's explicit costs are $15,100 and Taylor's implicit costs are $24,900. Rent and utilities: $12,000Advertising: $1,000Equipment: $2,100Explicit costs = Rent and utilities + Advertising + Equipment Explicit costs = $12,000 + $1,000 + $2,100Explicit costs = $15,100Therefore, Taylor's explicit costs are $15,100. Taylor's total annual revenue is $55,000. Her explicit costs are $15,100. To determine Taylor's implicit costs, you must subtract her explicit costs from her total revenue. Implicit costs = Total revenue - Explicit costs Implicit costs = $55,000 - $15,100Implicit costs = $39,900Therefore, Taylor's implicit costs are $39,900.
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Which of the following statement is INCORRECT?
a. The direct/indirect cost classification depends on the choice of the cost object.
b. Variable costs change, in total, in proportion to changes in the related level of activity or volume of output produced.
c. Fixed costs per unit change inversely with the level of production.
d. Inventoriable costs are treated as expenses of the accounting period in which they are incurred.
Inventoriable costs are treated as expenses of the accounting period in which they are incurred.
Inventoriable costs, also known as product costs, are costs associated with the production of goods or services. They include direct materials, direct labor, and manufacturing overhead. These costs are not immediately expensed in the period they are incurred. Instead, they are capitalized as inventory on the balance sheet and are only recognized as expenses when the inventory is sold. This occurs when the goods are transferred to the cost of goods sold (COGS) account. Therefore, option d is incorrect because inventoriable costs are not treated as expenses in the period they are incurred, but rather when the associated inventory is sold.
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Please do not copy and past
word limit 1000
Required Materials
Bruner, R. F., & Hare, K. (2017). The panic of 2008 and Brexit: Regional integration versus nationalism. Ivey Business Publishing.
Instructions
Review readings from unit 1.
Thoroughly read the case. It is recommended that you read 2-3 times.
Prepare a 5-page report (12-point font, double spaced not including the title page or reference page), that addresses the following questions:
Why is the Brexit vote significant both within the UK and globally?
What are the potential implications for the Brexit vote in relation to Canada’s relationship with the EU and the UK?
What are the key challenges facing leadership in the UK in light of the Brexit vote?
The Brexit vote holds significant implications both within the UK and globally. It has implications for the UK's sovereignty, economy, and political landscape, while also impacting global markets or future of regional integration.
The economy is important because it is the foundation of a country's prosperity and well-being. A strong and stable economy provides employment opportunities, generates income and wealth, and fosters economic growth and development. It enables individuals and businesses to thrive, improves living standards, and supports public services and infrastructure. The economy influences various aspects of society, including social mobility, access to education and healthcare, and overall quality of life. A robust economy also contributes to global competitiveness and influences international relations and trade dynamics.
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Taxes where 100 and increased to 200, and MPC is 3/5.GDP is 5000 before the Tax change. How will it change after the Tax increase?
After the tax increase from 100 to 200 and with an MPC (Marginal Propensity to Consume) of 3/5, the GDP is expected to decrease by 200 * (3/5) = 120. Therefore, the new GDP after the tax increase would be 5000 - 120 = 4880.
The GDP represents the total value of goods and services produced in an economy, and changes in taxes can have an impact on consumption and, consequently, on the overall GDP. When taxes increase, households have less disposable income available for consumption. The MPC indicates the fraction of additional income that individuals will spend, with the remainder being saved. In this case, with an MPC of 3/5, it means that for every additional dollar of income, individuals will spend 3/5 of it and save the remaining 2/5.
To calculate the change in GDP, we multiply the tax increase by the MPC. In this scenario, the tax increase is 100, and the MPC is 3/5. Thus, the change in GDP is 100 * (3/5) = 60. Since the tax increase reduces disposable income, the change in GDP is negative, leading to a decrease in GDP. Subtracting this change from the initial GDP of 5000 results in a new GDP of 4880 after the tax increase.
In conclusion, the GDP is expected to decrease to 4880 after the tax increase from 100 to 200, given an MPC of 3/5. This decrease is due to the reduction in disposable income resulting from the higher tax burden, which affects consumption and, consequently, the overall GDP.
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What does the term "creative destruction" mean? In a Schumpeterian growth model, what determines the growth rate of productivity? How does this compare with the mechanism driving growth in the Solow or Romer models?
Creative destruction refers to a process by which new innovations cause the downfall of established products or services, creating new ones in their place.
The term "creative destruction" was coined by economist Joseph Schumpeter in the 1940s to describe the process of innovation as the driving force behind economic growth. In a Schumpeterian growth model, the growth rate of productivity is determined by the rate at which innovations are created and implemented. This growth model emphasizes the importance of entrepreneurs and innovators in driving economic growth. The mechanism driving growth in the Solow or Romer models, on the other hand, is based on technological progress and accumulation of physical and human capital. These models focus on the accumulation of factors of production as the key driver of economic growth. In summary, while the Schumpeterian growth model focuses on innovation and entrepreneurship as the driving force behind growth, the Solow and Romer models emphasize the importance of investment in factors of production.
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Which statement best describes the status of jobs based on digital networking? It provides an increase in manufacturing jobs to create products for sale. O The market will provide some new jobs, but they will not be high paying. O The job market will increase once digital marketing becomes more popular. O Jobs will become specialized and the market will need fewer new employees.
The status of jobs based on digital networking is that the market will provide some new jobs, but they will not be high paying.
Digital networking has revolutionized the way businesses and consumers interact.
With the rise of e-commerce, social media, and other digital platforms, companies are able to reach customers in new and innovative ways.
However, this does not necessarily translate into a significant increase in high-paying job opportunities.
While there may be some new jobs created in areas such as digital marketing and e-commerce, the vast majority of these jobs are likely to be low-paying and temporary.
In addition, as technology continues to automate many routine tasks, there may be a decline in the need for certain types of jobs in fields such as customer service and data entry.
As a result, while digital networking is likely to create some new job opportunities, it is unlikely to fundamentally change the nature of the job market, and may even exacerbate existing inequalities.
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Equipment was acquired at the beginning of the year at a cost of $76,320. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,500. a. What was the depreciation expense for the first year? 11,470 b. Assuming the equipment was sold at the end of the second year for $57,700, determine the gain or loss on sale of the equipment. 4,320 Gain c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Equipment Gain on Sale of Equipment
a) The depreciation expense for the first year is $11,470, which is calculated using the straight-line method.
The depreciation expense for the first year can be calculated using the straight-line method. The formula for straight-line depreciation is:
Depreciation Expense = (Cost - Residual Value) / Useful Life
Given:
Cost = $76,320
Residual Value = $7,500
Useful Life = 6 years
Depreciation Expense = ($76,320 - $7,500) / 6 = $68,820 / 6 = $11,470
b) the gain or loss on the sale of the equipment is $4,320.
To determine the gain or loss on the sale of the equipment, we need to compare the selling price with the equipment's book value at the time of sale.
Book Value = Cost - Accumulated Depreciation
Given:
Cost = $76,320
Depreciation Expense per year = $11,470
Depreciation Expense for 2 years = $11,470 * 2 = $22,940
Accumulated Depreciation = $22,940
Book Value = $76,320 - $22,940 = $53,380
Gain or Loss on Sale = Selling Price - Book Value
Given Selling Price = $57,700
Gain or Loss on Sale = $57,700 - $53,380 = $4,320
c) Journal entry to record the sale:
Debit:
Cash or Accounts Receivable: $57,700
Accumulated Depreciation: $22,940
Loss on Sale of Equipment (if there is a loss): $4,320 (debit)
Equipment: $76,320 (credit)
Credit:
Gain on Sale of Equipment (if there is a gain): $4,320 (credit)
The specific accounts to be debited or credited may vary depending on the company's chart of accounts, but the entry should reflect the increase in cash or accounts receivable, the reduction of accumulated depreciation, and the removal of the equipment from the books.
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Question 2 The Printing press is in the business of printing and publication of magazines. The following cost relates to printing of a standardized magazine- "Stand Out" information has been provided: Cost of Printing Equipment Scrap value after 2 years or printing 60,000 magazines Printing Equipment Maintenance cost- 6 monthly service cost Spare parts per 1,000 magazine print out Copyright fees, per every two years Magazine content insurance per annum Cost of an ink tonner Paper cost per rim Average print out per rim of paper and a tonner ink Requirement GHC 55,000 15,000 600 5,000 1,800 1,500 90 100 25 magazines As the management accountant, i. Presents a schedule showing total fixed cost, Total Variable cost, per unit variable cost, Total cost and Variable cost per unit if Focus Ltd prints out 6000; 12,000; 18,000 and 36,000 copies of "Stand -sverks Out" magazine per annum ii. Advise management on the minimum copies of "Stand out" to be produced and sold in order for Smacks Focus Press to keep afloat, assuming selling price per magazine is GHC16.60 Tataiste
The total fixed cost, total variable cost, per unit variable cost, total cost, and variable cost per unit for different production levels of "Stand Out" magazine are calculated.
The minimum number of copies that need to be produced and sold in order for Smacks Focus Press to remain afloat, assuming a selling price of GHC16.60 per magazine, is advised.
To calculate the schedule of costs, we consider the fixed costs and variable costs associated with printing the "Stand Out" magazine. The fixed costs include the cost of printing equipment and its scrap value after 2 years, amounting to GHC55,000 and GHC15,000 respectively. The total fixed cost remains constant regardless of the number of magazines printed.
The variable costs include printing equipment maintenance costs, spare parts per 1,000 magazine printouts, copyright fees per every two years, magazine content insurance per annum, cost of an ink toner, paper cost per rim, and average printout per rim of paper and toner ink. These costs vary based on the number of magazines printed.
Using the given information, we can calculate the total variable cost and per unit variable cost for different production levels. The total variable cost is the sum of all variable costs, while the per unit variable cost is calculated by dividing the total variable cost by the number of magazines printed.
To determine the minimum number of copies that need to be produced and sold for Smacks Focus Press to remain afloat, we need to consider the total cost, which is the sum of fixed costs and variable costs. The breakeven point is reached when the total cost is equal to the total revenue generated from selling the magazines. With the selling price per magazine given as GHC16.60, we can calculate the number of magazines that need to be sold to cover the total cost.
Therefore, by analyzing the cost schedule and comparing it to the selling price, the management accountant can advise the minimum number of copies of "Stand Out" magazine that need to be produced and sold in order for Smacks Focus Press to remain financially viable.
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Stacy owns a 200 acre parcel of land named Blackacre. She subdivides the 40 acres on the N.E. corner of Blackacre which she calls Whiteacre. The only access road to Whiteacre runs across Blackacre. Later Stacy sells Whiteacre to Mike and Mike uses the road across Blackacre to get to the house he builds on Whiteacre. Four years after the sale of Whiteacre, Mike and Stacy have a falling out and Stacy puts a locked gate across the road which runs through Blackacre to Whiteacre. Mike sues seeking access to Whiteacre. A court will most likely rule that: Group of answer choices
a. The purchase of Whiteacre did not include an express easement therefore Mike has no right to cross Blackacre.
b. Mike has acquired a right to cross Blackacre based on adverse possession.
c. Mike has acquired a right to cross Blackacre based on easement by necessity.
d. Mike has acquired a right to cross Blackacre based on an easement prescription.
Mike's access to Whiteacre through Blackacre is disputed after Stacy puts a locked gate across the road. The court will most likely rule that Mike has acquired a right to cross Blackacre based on an easement by necessity.
In this case, the court is likely to rule that Mike has acquired a right to cross Blackacre based on an easement by necessity. An easement by necessity is a legal principle that grants a right of access over another person's property when it is deemed necessary for the reasonable use and enjoyment of the land.
Since Whiteacre was subdivided from Blackacre and Mike's house was built on Whiteacre, the court would consider the access road across Blackacre as necessary for Mike to reach his property. The fact that the access road was the only means of entry to Whiteacre strengthens Mike's case for an easement by necessity.
It is important to note that an easement by necessity arises when there is no alternative reasonable means of access available. In this scenario, as Mike had no other practical way to reach his property without crossing Blackacre, the court is likely to grant him the right to continue using the road despite Stacy's locked gate.
Mike, Stacy, Whiteacre, Blackacre, subdivides, access road, locked gate, court ruling, easement by necessity, reasonable use, reasonable means of access, property dispute.
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What are some brand positioning objectives that a dog bakery may have that contribute to the success of the company starting out? What are some measurable brand positioning objectives they may also have?
Brand positioning objectives for a dog bakery may include:
Differentiation: Establishing a unique and distinctive brand identity that sets the dog bakery apart from competitors. This could involve creating a specific niche, such as offering organic or gluten-free dog treats, or specializing in custom-made cakes and treats for special occasions.Quality and Freshness: Positioning the brand as a provider of high-quality, fresh, and nutritious dog treats and bakery products. Emphasizing the use of premium ingredients and baking techniques that prioritize the health and well-being of dogs.Personalized and Customizable: Offering personalized services and products to cater to the individual needs and preferences of dog owners. This could include options for customized treat flavors, sizes, or special dietary requirements.Convenient and Reliable: Focusing on providing convenient purchasing options, such as online ordering, home delivery, or subscription services. Ensuring consistent availability and reliable delivery to build customer trust and loyalty.Measurable brand positioning objectives for a dog bakery could include:
Market Share: Increasing the percentage of the local dog treat and bakery market captured by the brand within a specific timeframe.Customer Satisfaction: Achieving a target level of customer satisfaction through feedback surveys or online reviews. This could involve setting a specific satisfaction score or percentage.Repeat Business: Increasing the rate of repeat purchases from existing customers. This could be measured by tracking the number of repeat orders or calculating the customer retention rate.Brand Awareness: Increasing brand recognition and awareness within the target market. Measurable objectives could include the number of social media followers, website traffic, or brand mentions in local media or publications.Sales Growth: Setting specific sales growth targets, such as a percentage increase in revenue or average transaction value over a given period.By setting clear and measurable brand positioning objectives, a dog bakery can track its progress and make informed decisions to achieve success and establish a strong position in the market.
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According to the sticky-price model, deviations of output from the natural level are _____ deviations of the price level from the expected price level.
A) positively associated with
B) negatively associated with
C) not related to
D) equal to
The answer to the question is that according to the sticky-price model, deviations of output from the natural level are negatively associated with deviations of the price level from the expected price level. The sticky-price model suggests that prices of goods and services may not adjust immediately in response to changes in demand and supply.
According to the model, firms do not change prices frequently as it might harm their reputation or cause confusion for consumers. Thus, prices tend to be relatively stable in the short run.The model suggests that when there is an unexpected increase in demand for a product, output will rise, but prices will remain unchanged. As a result, the output will be greater than the natural level, and the price level will be below the expected level. Similarly, when there is an unexpected decrease in demand, output will fall, but prices will remain unchanged. Thus, output will be less than the natural level, and the price level will be above the expected level.Therefore, deviations of output from the natural level are negatively associated with deviations of the price level from the expected price level.
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On June 30, Concord Corporation discontinued its operations in Mexico. During the year, the operating income was $218,000 before taxes. On September 1, Concord disposed of the Mexico facility at a pretax loss of $600,000. The applicable tax rate is 27%.
Show the Income from operations of the Mexican Facility section of Concord's income statement.
To calculate the Income from Operations of the Mexican Facility section of Concord Corporation's income statement, we need to consider the operating income before taxes and the pretax loss from the disposal of the facility.
First, let's calculate the income from operations before the disposal of the facility. It is given that the operating income before taxes is $218,000. This figure represents the profit generated by the Mexican facility during the year.
Next, we need to account for the pretax loss from the disposal of the facility, which is $600,000. This loss occurred on September 1.
To calculate the Income from Operations of the Mexican Facility, we subtract the pretax loss from the operating income before taxes.
Income from Operations of the Mexican Facility = Operating income before taxes - Pretax loss from disposal of facility
= $218,000 - $600,000
= -$382,000
The negative sign indicates that the Mexican facility incurred a loss of $382,000 from its operations.
It's important to note that this calculation only represents the income from operations of the Mexican facility section and does not reflect the overall income statement of Concord Corporation. The complete income statement would include other sections such as revenues, expenses, taxes, and net income, which need to be considered to obtain a comprehensive view of the company's financial performance.
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these campaigns represent coca-cola's ongoing, or __________, plan to develop and execute a world-class marketing and promotion strategy.
These campaigns represent Coca-Cola's ongoing, or continuous, plan to develop and execute a world-class marketing and promotion strategy.
The term "continuous" emphasizes that Coca-Cola's marketing efforts are not limited to a single campaign or a one-time event but are part of an ongoing and sustained effort to reach and engage its target audience.
By using continuous marketing strategies, Coca-Cola aims to maintain a strong presence in the market, build brand loyalty, and stay connected with its customers. This approach involves consistently creating and implementing new marketing campaigns, promotions, and initiatives to reinforce the brand's messaging, attract new customers, and retain existing ones.
Through continuous marketing, Coca-Cola can adapt to changing market conditions, consumer preferences, and emerging trends. It allows the company to stay relevant, competitive, and responsive to the dynamic nature of the industry.
Overall, Coca-Cola's continuous marketing efforts reflect its commitment to developing and executing a world-class marketing and promotion strategy that ensures the brand remains at the forefront of consumers' minds and maintains its market leadership position.
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T/F Freight collect indicates the cost of freight/carriage to be paid by the seller at the port of departure.
T/F A bill of lading (BOL) is a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment and allow it to be tracked. The bill has multiple copies so that each party involved in the shipment can document it.
Freight collect means that the buyer is responsible for paying the cost of freight/carriage when the goods are delivered, not the seller at the port of departure. T - Freight collect indicates the cost of freight/carriage to be paid by the seller at the port of departure.
F - A bill of lading (BOL) is a document that accompanies goods shipped by any mode of transportation, not just international air courier. It provides detailed information about the shipment and allows it to be tracked. The bill usually has multiple copies, one for the carrier, one for the shipper, and sometimes additional copies for other parties involved in the shipment, such as the consignee or the bank.
1. Freight collect means that the buyer is responsible for paying the cost of freight/carriage when the goods are delivered, not the seller at the port of departure.
2. A bill of lading is a legal document that serves as a contract between the shipper and the carrier. It contains information about the goods being shipped, such as the quantity, description, and destination. It is used in various modes of transportation, including air, sea, and land, not limited to B air courier services. The bill is important for tracking and documenting the shipment, and multiple copies are created to provide each involved party with the necessary information.
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Awesome Restorations Pty Ltd opened a Hardware Shop in 2010. They use the Net Credit Sales method for estimating Doubtful Debts and it appears that 4% of Credit Sales will not be collected this year. There is a balance in the Allowance for Doubtful Debts ledger account on 1 July, 2022 of $516 300.
On 8 October, 2022 a customer I. Liquid who owed Awesome Restorations Pty Ltd $54 620 went Bankrupt and was written off as a Bad Debt. On the 24 April, 2023 his fixed assets were sold and I. Liquid managed to pay back only $32 960 of the total debt he originally owed.
On 30 June, 2023 an entry was required for estimated Allowance for Doubtful Debts. Total Sales for the next financial year ending 30 June, 2024 are expected to be $17 200 000 of which 96% will be Credit Sales.
Required:
[Use 4 Columns - Date / Account / Debit / Credit, to prepare General Journal entries, to record the above information.] (Narrations are not required).
1. Oct 8, 2022: Bad Debts Expense $54,620, Allowance for Doubtful Debts $54,620.
2. Apr 24, 2023: Cash $32,960, Allowance for Doubtful Debts $32,960.
3. June 30, 2023: Allowance for Doubtful Debts $688,000, Bad Debts Expense $688,000.
1. On October 8, 2022, the Bad Debts Expense account is debited for the amount owed by I. Liquid ($54,620), and the Allowance for Doubtful Debts account is credited for the same amount to write off the bad debt.
2. On April 24, 2023, the Cash account is debited for the amount paid by I. Liquid ($32,960), and the Allowance for Doubtful Debts account is credited for the same amount to reduce the outstanding debt.
3. On June 30, 2023, an entry is made to estimate the allowance for doubtful debts for the next financial year. The Allowance for Doubtful Debts account is debited for an estimated amount of $688,000, and the Bad Debts Expense account is credited for the same amount. This is based on the expectation that 4% of credit sales ($17,200,000 * 96%) will not be collected.
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Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). 1. Sold $33,000 of merchandise, which cost $25,400, on Mastercard credit cards. Mastercard charges a 5% fee. 2. Sold $6,300 of merchandise, which cost $3,650, on an assortment of bank credit cards. These cards charge a 4% fee.
Sold $33,000 of products on Mastercard credit cards (costing $25,400). 5% for Mastercard.
The journal entries would be:
To record merchandise sales on Mastercard credit cards:
Debit: Mastercard Accounts Receivable $33,000
$33,000 sales revenue
To record merchandise cost:
$25,400 Cost of Goods Sold
$25,400 Inventory
c. Record Mastercard's fee:
Debit: $1,650 ($33,000 x 5%) Credit Card Processing Fee.
Mastercard accounts receivable $1,650
Sold $6,300 worth of products on $3,650 bank credit cards. 4% applies to these cards.
The journal entries would be:
To record merchandise sales on bank credit cards:
Accounts Receivable—Bank Credit Cards $6,300
$6,300 sales revenue
To record merchandise cost:
$3,650 Cost of Goods Sold
$3,650 Inventory
c. Record bank credit card fees:
Debit: $252 ($6,300 x 4%) credit card processing fee.
Bank Credit Card Accounts Receivable $252
Journal entries assume the company records sales revenue and cost of goods sold at the time of sale and recognises credit card fees as expenses. For accuracy and compliance with accounting standards, consult an accounting professional or refer to the company's accounting policies.
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Current Attempt in Progress Pina Colada Co. has 4,080 machine hours available to produce either Product 22 or Product 44. The cost accounting department developed the following unit information for each product: Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Machine time required Sales Price Direct Materials Direct Labor Product 22 Variable Overhead $36 11 8 9 8 20 minutes Product 44 $55 15 7 Management wants to know which product to produce in order to maximize the company's net income. Taking into consideration the constraints under which the company operates, prepare a report to show which product should be produced and sold. (Round machine hours required to 2 decimal places and other answers to O decimal places.) Unit contribution margin 10 10 60 minutes Product 22 11 8 $ 36 $ 15 7 Pre Variable Overhead Contribution Margin Machine Hours Required Contribution Margin Contribution Margin Per Unit of Limited Resource ✓ Which product should be produced? Product 22 v $ $ 8 9 Product 22 36 28 64 $ 8 0.33 24 hr Product 44 55 47 102 10
To determine which product Pina Colada Co. should produce to maximize net income, we need to consider the constraints of machine hours available and the contribution margin per unit of the limited resource.
Given:
Machine hours available: 4,080
Unit information for each product:
Product 22:
Sales price: $36
Direct materials: $11
Direct labor: $8
Variable manufacturing overhead: $9
Fixed manufacturing overhead: $8
Machine time required: 20 minutes
Product 44:
Sales price: $55
Direct materials: $15
Direct labor: $7
Variable manufacturing overhead: $10
Fixed manufacturing overhead: $10
Machine time required: 60 minutes
To determine the contribution margin per unit of the limited resource (machine hours), we divide the contribution margin by the machine hours required for each product:
Product 22:
Contribution margin: $36 - $11 - $8 - $9 - $8 = $0
Machine hours required: 20 minutes = 20/60 = 0.33 hours
Contribution margin per unit of limited resource: $0 / 0.33 = $0
Product 44:
Contribution margin: $55 - $15 - $7 - $10 - $10 = $13
Machine hours required: 60 minutes = 60/60 = 1 hour
Contribution margin per unit of limited resource: $13 / 1 = $13
Based on the calculations, Product 44 has a positive contribution margin per unit of limited resource, while Product 22 has a contribution margin of $0. Therefore, to maximize net income, Pina Colada Co. should produce and sell Product 44.
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Which of the following describe(s) a situation in which a third party, outside the transaction, suffers from a market transaction?
Group of answer choices (choose All That apply)
negative externality
spillover
a market failure
All of the choices provided, "negative externality," "spillover," and "a market failure," describe situations in which a third party outside the transaction suffers from a market transaction. The correct answer is option d.
A negative externality occurs when the actions of buyers or sellers in a market impose costs on others who are not directly involved in the transaction. This can include environmental pollution, noise pollution, or other adverse effects that impact individuals or communities.
Spillover refers to the unintended consequences or effects that spill over from a market transaction and impact parties not directly involved. These spillover effects can be positive or negative, but when they cause harm or impose costs on third parties, it is considered a situation in which the third party suffers.
A market failure refers to a situation where the allocation of resources in a market is inefficient and fails to maximize social welfare. Negative externalities and spillover effects are examples of market failures because they result in costs or harms to third parties that are not accounted for in the market transaction.
The correct answer is option d.
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Complete question
Which of the following describe(s) a situation in which a third party, outside the transaction, suffers from a market transaction?
Group of answer choices (choose All That apply)
a. negative externality
b. spillover
c. a market failure
d. all of the above
Which of the following are NOT an electronic application in procurement?
a.
Electronic data interchange
b.
Material requirement planning
c.
Early supply involvement
d.
Database management system
e.
Enterprise resource planning
Option B. is correct. Material Requirement Planning (MRP) is not an electronic application in procurement.
Procurement is the process of purchasing the goods or services required to accomplish a project, program, or another organizational need. Procurement is a critical business function that involves identifying the best sources of goods and services at the most competitive prices, negotiating favorable terms, and managing the entire procurement process.
Electronic applications in procurement include:
Electronic Data Interchange (EDI): Electronic data interchange is a business-to-business transaction processing technology that electronically transmits business documents like orders and invoices.
Database Management Systems (DBMS): A database management system is computer software used to manage large amounts of data in an efficient and organized way.
Enterprise Resource Planning (ERP): Enterprise resource planning is a computer-based system that manages the resources of an enterprise.
Early Supply Involvement (ESI): Early supply involvement is a procurement strategy that involves including suppliers in the procurement process from an early stage.
MRP or Material Requirements Planning is not an electronic application in procurement. MRP is an inventory control and production planning system that helps manufacturing businesses plan their production and inventory based on customer demand and historical sales data.
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When developing an IMC campaign, why it is important to analyse and investigate consumers’ buying behaviour? Use an example of a successful campaign to explain your answer and provide context.
Talk about importance of consumer buying behaviour only
Consumer decision making
Purchase decision
Consumer motivation
perception ect.
Analyzing and investigating consumers' buying behavior is crucial when developing an Integrated Marketing Communication (IMC) campaign because it helps marketers understand the factors influencing consumer decisions and tailor their strategies accordingly. By gaining insights into consumer behavior, marketers can effectively identify target audiences, develop persuasive messages, and select appropriate communication channels. Understanding consumer motivation, perception, and decision-making processes enables marketers to create compelling campaigns that resonate with consumers and drive desired actions.
For example, let's consider the successful IMC campaign by Nike, known as "Just Do It." Nike analyzed consumer buying behavior and recognized that their target audience, primarily athletes and fitness enthusiasts, valued determination, empowerment, and a sense of achievement. They understood that consumers were motivated by their desire for personal growth, physical fitness, and the aspiration to succeed. With this understanding, Nike crafted a campaign that tapped into consumers' motivations, leveraging powerful messages and visuals to inspire and encourage them to push their limits and pursue their goals. The campaign's focus on consumer motivation and understanding of their purchase decision process contributed to its success in connecting with the target audience and driving brand loyalty.
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Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus, _____.(1 point)
1. the income of consumers will decrease the income of consumers will decrease
2. the quantity demanded of beach towels will increase for every possible price
3. the quantity demanded of beach towels will decrease for every possible price(I think it is this one)
4.the income of consumers will increase
Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus, the quantity demanded of beach towels will decrease for every possible price.
Complementary goods are products or services that people use together. For example, automobiles and gasoline, as well as hot dogs and buns, are complementary goods. When two or more goods are complementary, an increase or decrease in the price of one will result in an opposite movement in the demand for the other good.
Given that sunscreen and beach towels are complementary goods. Thus, if the price of sunscreen increases, the quantity demanded of beach towels will decrease for every possible price. The key here is that the increase in the price of sunscreen, with all other things constant, causes the quantity demanded of beach towels to fall. This is because the two goods are complementary; sunscreen is usually used with beach towels.The price of sunscreen has a direct effect on the demand for beach towels, but not the other way around. This is why option 3, which states that the quantity demanded of beach towels will decrease for every possible price, is the correct answer. The demand curve for beach towels shifts to the left, indicating that people demand less of it at every possible price as a result of the increase in sunscreen prices.
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.1 Comment on the value-added and/or special challenges in either schooling or work of the inclusion experiences that you have had.
2. When you become the lead teacher or employer, how will you handle such situations?
The value-added of inclusion experiences in schooling or work is that they enhance diversity, boost morale, and create a sense of belonging. Students or employees from different backgrounds are given equal opportunities to learn, work, and develop their full potential.
Inclusion also fosters mutual respect, tolerance, and understanding among different cultures, races, and genders. The challenges of inclusion include language barriers, cultural differences, and individual disabilities that may require additional resources and support. However, these challenges can be overcome by providing inclusive policies, communication, and training to ensure that everyone is treated with respect and dignity.2 As a lead teacher or employer, I would handle such situations by creating an inclusive environment where every individual feels valued, respected, and included. This can be achieved by ensuring that the workplace or classroom is physically and culturally accessible to everyone.
In addition, I would promote diversity, equity, and inclusion by incorporating multiculturalism into the curriculum or workplace policies. This would help to foster a sense of belonging and mutual respect among all students or employees.
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Ethan and Peter agreed to become partners in an electric bike and scooter business. They
did not have a written agreement. Ethan, who had experience in sales, was to operate the
business. Peter was to take no active part but was to contribute the entire $500,000
capitalization.Ethan worked ten hours a day at the business, for which he was paid nothing.
Nevertheless, despite Ethan’s best efforts, the business failed. The $500,000 capital was
depleted, and the partnership owed $500,000 in debts. Prior to the failure of the
partnership business, Peter became personally insolvent due to poor investment decisions
made elsewhere. Consequently, the creditors of the partnership collected the entire
$500,000 indebtedness from Ethan, who was forced to sell his home to satisfy the
indebtedness. Peter later regained his financial responsibility, and Ethan brought an
appropriate action against Peter for (a) one-half of the $500,000 he had paid to
partnership creditors and (b) one-half of $80,000, the reasonable value of Ethan’s
services during the operation of the partnership.
1. Is Peter legally obligated to pay Ethan for one-half of the $500,000 Ethan paid to
partnership creditors?
2. Is Ethan entitled to be paid for his services provided to the partnership?
Yes, Peter is legally obligated to pay Ethan for one-half of the $500,000 Ethan paid to partnership creditors.2. Yes, Ethan is entitled to be paid for his services provided to the partnership.
Explanation:In the given case, Peter and Ethan agreed to become partners in an electric bike and scooter business. However, they did not have any written agreement. It was decided that Ethan would operate the business as he had experience in sales and Peter would contribute the entire $500,000 capitalization, but he would take no active part in running the business.
However, despite Ethan's best efforts, the business failed, and the partnership owed $500,000 in debts. Prior to the failure of the partnership business, Peter became personally insolvent due to poor investment decisions made elsewhere.
Consequently, the creditors of the partnership collected the entire $500,000 indebtedness from Ethan, who was forced to sell his home to satisfy the indebtedness.
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Consider a market of second-hand cars with 1000 units. The quality v of these cars is distributed between 0 and 3000. The distribution of v is such that the number of cars whose quality is lower than vis v/3. The owner of each second-hand car knows its quality, but the potential buyers don't. The latter are risk-neutral and they value a car at its expected quality. Each car owner may choose to hire an independent third party (expert) for a fee of 300 to inspect its car. If so, quality is perfectly reveal and the owner can sell its car for the value of its true quality. 2 P.T.O. ECON20512/30512 (a) [10 marks] Determine the market price for the second-hand cars assuming that none of the existing units are inspected. (b) [10 marks] Suppose that cars with quality or higher are inspected, while those below are not. Derive the market price of the non-inspected second-hand units as a function of the quality threshold x. (c) [10 marks] Derive the value of x that leaves the owner of the corresponding unit indifferent between inspecting or not its car. Determine the number of cars which are not inspected in equilibrium and their market price.
(a) In the absence of inspections, potential buyers will value a second-hand car at its expected quality. Since the distribution of quality is such that the number of cars whose quality is lower than v is v/3, the expected quality of a car with quality v is given by E(v) = v/3. Therefore, the market price for the second-hand cars, in this case, would be the expected quality of the cars, which is 1000/3.
(b) If only cars with quality equal to or higher than a certain threshold x are inspected, potential buyers will know that the inspected cars have quality x or higher. The market price for the non-inspected second-hand cars will be determined by the expected quality of these cars, which is the average quality of cars below the threshold x.
To calculate this, we integrate the quality distribution up to x and divide it by the total number of non-inspected cars. Let F(x) represent the cumulative distribution function of the quality v, which is F(x) = x/3000. The market price for the non-inspected cars is then given by P = (1 - F(x))*3000.
(c) To determine the value of x that leaves the owner of a car indifferent between inspecting or not inspecting, we need to compare the costs and benefits. The cost of inspection is $300, and if the car's quality is below x, it will be sold at the market price for the non-inspected cars, which is (1 - F(x))*3000. If the car's quality is x or higher, it will be sold at its true quality value, which is v.
Setting these two values equal, we have 300 = (1 - F(x))*3000. Simplifying this equation gives 1 - F(x) = 0.1. Solving for x, we find x = 900.
Therefore, when x = 900, the owner of a car with quality x would be indifferent between inspecting or not inspecting the car. In equilibrium, the number of cars that are not inspected would be the number of cars with quality below 900, which is (900/3000)*1000 = 300. The market price for these non-inspected cars would be (1 - F(900))3000 = 0.73000 = $2100.
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Complete the MPS record below for a single item. (Enter your responses as integers. A response of "0" is equivalent to being not applicable.) Item: A January Quantity on Hand: 75 1 Forecast 70 Customer orders 45 (booked) Projected on-hand inventory MPS quantity 2 65 15 3 70 80 4 45 0 OD Order Policy: 100 units Lead Time: 1 week February 6 50 70 Week 5 55 35 7 55 0 8 55 0
The MPS quantity represents the planned production quantity for each week, while the projected on-hand inventory reflects the estimated inventory level after accounting for customer orders and production quantities.
Complete MPS Record:
Item: A
January:
Quantity on Hand: 75
Forecast: 70
Customer Orders (booked): 45
Projected on-hand inventory: 30
February:
Week 1:
MPS quantity: 65
Customer orders: 15
Projected on-hand inventory: 80
Week 2:
MPS quantity: 70
Customer orders: 45
Projected on-hand inventory: 80
Week 3:
MPS quantity: 45
Customer orders: 0
Projected on-hand inventory: 45
Week 4:
MPS quantity: 0
Customer orders: 0
Projected on-hand inventory: 45
Order Policy: 100 units
Lead Time: 1 week
February:
Week 5:
MPS quantity: 50
Customer orders: 70
Projected on-hand inventory: -20 (Shortage)
Week 6:
MPS quantity: 55
Customer orders: 35
Projected on-hand inventory: -0. (Shortage)
Week 7:
MPS quantity: 55
Customer orders: 0
Projected on-hand inventory: 55
Week 8:
MPS quantity: 55
Customer orders: 0
Projected on-hand inventory: 55
Note: The MPS quantity represents the planned production quantity for each week, while the projected on-hand inventory reflects the estimated inventory level after accounting for customer orders and production quantities. The negative values in the projected on-hand inventory indicate a shortage of the item.
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suppose all stocks in the portfolio were equally weighted. which of these stocks would have the least amount of stand-alone risk?
In a portfolio where all stocks are equally weighted, the stock with the least amount of stand-alone risk would be the one with the lowest volatility or standard deviation.
Stand-alone risk, also known as unsystematic risk or idiosyncratic risk, refers to the level of risk associated with an individual investment or asset in a portfolio. It represents the potential variability or volatility of returns specific to that particular investment, without considering the impact of diversification. Stand-alone risk is influenced by factors unique to the investment, such as company-specific events, industry-specific factors, management decisions, or other idiosyncratic factors. This type of risk can arise from factors that affect a specific company or asset but do not affect the entire market. Mitigating stand-alone risk through diversification is important to reduce the impact of individual investment volatility on the overall portfolio's performance.
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In the pure exchange model find the equilibrium price ratio for the following utility functions: U1(x,y) = xy and U2(x,y) = x2y. Assume that initial endowment of person 1 is w1(x,y) = (1,1), while for person 2 it is w2(x,y)=(2,2).
a. Px = 3/8, Py = 1
b. Px = 1, Py = 3/8
c. Px = 1, Py = 7/11
d. Px = 8/9, Py = 1
e. None of the remaining answers is correct.
The equilibrium price ratio for the given utility functions and initial endowments in the pure exchange model is c. Px = 1, Py = 7/11.
In the pure exchange model, the equilibrium price ratio is determined by the marginal rate of substitution (MRS) of each individual's utility function. To find the equilibrium, we compare the MRS of person 1 and person 2.
For person 1, the MRS is given by the partial derivative of U1(x,y) = xy with respect to x divided by the partial derivative with respect to y. Taking the derivatives, we get MRS1 = y/x.
For person 2, the MRS is given by the partial derivative of U2(x,y) = x^2y with respect to x divided by the partial derivative with respect to y. Taking the derivatives, we get MRS2 = 2xy.
To find the equilibrium, we equate the MRSs of person 1 and person 2 and solve for the price ratio (Px/Py). Equating the MRSs gives y/x = 2xy, which simplifies to 1 = 2x^2. Solving for x, we get x = 1/√2.
Substituting the value of x back into the MRS equation for person 1, we get y/(1/√2) = 1, which gives y = √2.
Therefore, the equilibrium price ratio is Px/Py = 1/(√2/√2) = 1/(1/√2) = √2/1 = √2.
Since √2 is approximately equal to 1.414, the equilibrium price ratio can be approximated as Px = 1 and Py = 1/1.414 = 7/11.
Thus, the correct answer is c. Px = 1, Py = 7/11.
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Which of the following are examples of special laws that a local government entity may require that would not be applicable to private contracts? O A requirement that all projects over $1000 are competitively bid. O A prohibition on design build projects. O A requirement for licensed engineers O All of the above An owner of a corporation can be held personally liable for its debts if it can be proved that business accounts were used for personal use. O True O False In the traditional form of plan-and-spec project delivery method, the general contractor is an agent of the owner. O True O False In the traditional form of plan-and-spec project delivery method, the architect and the general contractor can sue each other for breach of contract. O True O False In the Construction Management project delivery method, which of the following is TRUE? O The Architect is an agent of the owner O The Construction Manager is an agent of the owner O Each subcontractor is an agent of the owner. O Both the Architect and Construction Manager are agents of the owner.
A requirement that all projects over $1000 are competitively bid. A prohibition on design-build projects. A requirement for licensed engineers. While corporations generally offer limited liability protection.
A requirement that all projects over $1000 are competitively bid: This special law mandates that local government projects above a certain threshold must go through a competitive bidding process. Private contracts do not typically have such a requirement, as the contracting parties have more flexibility in determining the selection process.
A prohibition on design-build projects: Some local government entities may have regulations that restrict or prohibit the use of design-build project delivery method, which involves a single entity responsible for both the design and construction of a project. Private contracts do not face the same limitations and can choose various project delivery methods.
A requirement for licensed engineers: Local government entities may impose requirements that only licensed engineers can undertake certain projects or perform specific tasks. This regulation ensures that engineering work meets professional standards and qualifications. In private contracts, while qualifications and expertise are still valued, the requirement for licensed engineers may not be as strictly enforced.
Regarding the statement "An owner of a corporation can be held personally liable for its debts if it can be proved that business accounts were used for personal use," the correct answer is "True." In certain circumstances, such as commingling personal and business funds or engaging in fraudulent activities, the corporate veil can be pierced, and the owner's personal assets can be at risk of being used to satisfy the corporation's debts. However, it is important to note that maintaining proper separation between personal and business finances is crucial to preserve the limited liability protection typically provided by a corporation.
In the traditional form of plan-and-spec project delivery method, the general contractor is not an agent of the owner. The correct answer is "False." In this method, the general contractor operates as an independent contractor and is not considered an agent of the owner. The general contractor is responsible for managing the construction process according to the plans and specifications provided by the owner and architect.
Similarly, in the traditional form of plan-and-spec project delivery method, the architect and the general contractor cannot sue each other for breach of contract. The correct answer is "False." Under this method, the architect and general contractor have separate contracts with the owner. If there is a breach of contract, the parties can only sue each other if there is a direct contractual relationship. The architect and general contractor typically do not have privity of contract and cannot directly sue each other for breach.
In the Construction Management project delivery method, both the architect and construction manager are agents of the owner. The correct answer is "Both the Architect and Construction Manager are agents of the owner." In this method, the construction manager serves as the agent of the owner and is responsible for coordinating the construction process. The architect, as a separate entity, also acts as an agent of the owner in providing design and construction administration services.
Local government entities may impose special laws and requirements on projects that are not applicable to private contracts. Examples include competitive bidding requirements for certain project sizes, restrictions on design-build projects, and the requirement for licensed engineers. It is important to understand these distinctions to comply with relevant regulations and ensure successful project execution. Additionally, while corporations generally offer limited liability protection, owners can be held personally liable for corporate debts if they misuse business accounts for personal purposes. In the traditional plan-and-spec project delivery method, the general contractor is not an agent of the owner, and the architect and general contractor cannot directly sue each other for breach of contract. In the Construction Management project delivery method, both the architect and construction manager serve as agents of the owner.
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You expect to receive two cash flows: $10,000 paid after 3 years and $20,000 paid after 6 years. The annual interest rate is 2%.
1) What is the present value of the combined cash flows?
The present value of the combined cash flows is $28,425.05. The present value of $10,000 paid after 3 years at an annual interest rate of 2% is $9,513.16, and the present value of $20,000 paid after 6 years is $18,911.89. By summing these present values, we get the total present value of the cash flows.Where PV is the present value, CF is the cash flow, r is the annual interest rate, and n is the number of years
Using this formula, we find the present value of $10,000 after 3 years to be $9,513.16:
PV = $10,000 / (1 + 0.02)^3 = $9,513.16
Similarly, the present value of $20,000 after 6 years is $18,911.89:
PV = $20,000 / (1 + 0.02)^6 = $18,911.89
Adding these two present values together gives us the combined present value of $28,425.05.
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