The correct option is A: When the auditor is in a situation where he or she believes that there is a high exposure to legal liability, the acceptable audit risk would be set higher than when there is little exposure to liability.
Even when the auditor believes that there is little exposure to legal liability, there is still a maximum acceptable audit risk that should be met.
Explanation:
Acceptable audit risk refers to the level of risk that the auditor is willing to take, which is controlled by the nature, timing, and extent of the audit procedures performed. On the other hand, legal liability refers to the responsibility of auditors for any misstatements or omissions in the financial statements that result in damages or losses for users of the financial statements.
When there is a high exposure to legal liability, the auditor would be more cautious and would set a lower acceptable audit risk. In contrast, when there is little exposure to legal liability, the auditor may set a higher acceptable audit risk. However, even when the auditor believes that there is little exposure to legal liability, there is still a maximum acceptable audit risk that should be met.
This is because the auditor's objective is to provide reasonable assurance that the financial statements are free from material misstatement, regardless of the level of legal liability. Therefore, the auditor should design the audit procedures to achieve the desired level of assurance, while taking into account the level of legal liability.
To know more about liability visit:
https://brainly.com/question/30805836
#SPJ11
Jackie spends $65, 000 to buy an annuity, with 30 equal annual payments starting one year from now, under the effective annual interest rate of 8%. As Jackie receives each payment at the end of the year, she invests it in a savings account that receives 4% effective interest annually. Find the accumulated amount in Jackie’s savings account at the end of the 30th year. (please show work and step by step solution)
The accumulated amount in Jackie’s savings account at the end of the 30th year is $242,457.24.
Accumulated value= Payment x (1 + r / m)mt – 1 / r / m
Where,
r = annual interest rate
m = number of compounding periods per year
Accumulated amount in Jackie’s savings account at the end of the 30th year:
The first step is to find out the annuity payment that Jackie receives each year.
Using the present value of an annuity formula,
PV = Payment x (1 - 1 / (1 + r / m)mt) / r / m
$65,000 = Payment x (1 - 1 / (1 + 0.08 / 1)1 × 30) / 0.08 / 1O
solving above equation,
Payment = $4,539.31
Accumulated amount in Jackie's savings account at the end of the 30th year:
Here,Interest rate (r) = 4%
Compounding periods per year (m) = 1
Payment (PMT) = $4,539.31
Time period (t) = 30 years
Using the formula,
Accumulated value = Payment x (1 + r / m)mt – 1 / r / m
Accumulated value = $4,539.31 x (1 + 0.04 / 1)1 × 30 – 1 / 0.04 / 1
Accumulated value = $242,457.24
Therefore, the accumulated amount in Jackie’s savings account at the end of the 30th year is $242,457.24.
To learn more about interest rate: https://brainly.com/question/25720319
#SPJ11
You are opening a restaurant in Downtown Toronto. Set your strategies into three levels. It must include:
1. Corporate-level Strategy [SWOT, PESTEL Analysis, Identifying Core Competencies]
2. Business-level Strategy [Differentiation (product features, customer service, etc.), Cost Leadership, Blue Ocean Strategy]
3. Function level Strategy [ department strategy such as HR department]
The HR department can also be used to maintain a positive work culture by promoting teamwork, positive communication, and mutual respect among employees.
1. Corporate-level Strategy for opening a restaurant in Downtown TorontoSWOT Analysis: For the restaurant to succeed in downtown Toronto, you need to conduct a SWOT analysis to understand the business's strengths, weaknesses, opportunities, and threats.PESTEL Analysis: Conduct a PESTEL analysis that will help you to understand the restaurant's business environment.Identifying Core Competencies: Identify the restaurant's core competencies to help the business achieve a competitive advantage over its competitors.2. Business-level Strategy for opening a restaurant in Downtown TorontoDifferentiation: To differentiate your restaurant from your competitors, you can focus on providing unique features, such as quality customer service and exceptional dining experience. You can differentiate your restaurant by offering quality meals made from locally sourced ingredients, exceptional dining experience, and quality customer service. Cost Leadership: You can use cost leadership strategies to provide meals at lower prices than your competitors. This can be achieved by implementing cost-saving measures, such as minimizing food waste and sourcing ingredients locally.Blue Ocean Strategy: You can apply the blue ocean strategy to help your restaurant create a new market space by offering unique dining experiences that your competitors don't offer.3. Function-level Strategy for opening a restaurant in Downtown TorontoHR department: Developing the restaurant's human resource department will ensure that the employees are motivated to perform better. This can be achieved by providing the employees with the right tools to perform their duties and offering incentives such as promotions and bonuses. Training the employees will also ensure they are equipped with the necessary skills to handle their roles effectively.
to know more about PESTEL, visit
https://brainly.com/question/28310527
#SPJ11
QUESTION 10 Marcus is the vice president of an athletic apparel company that sells clothing for bicyclists. Recently, the company has identified problems of cost control in all of its offices. Marcus
To improve cost control, Marcus should analyze expenses, promote a cost-conscious culture, negotiate with suppliers, streamline processes, and monitor financial performance.
To improve cost control across all offices and ensure financial stability, Marcus should implement several key measures. Firstly, he should conduct a thorough analysis of expenses to identify areas of overspending or inefficiencies.
This would involve reviewing operational costs, such as office supplies, utilities, and maintenance, and seeking opportunities to optimize expenditure.
Secondly, Marcus should encourage a culture of cost consciousness within the company.
This can be achieved through regular communication and training sessions that emphasize the importance of cost control and encourage employees to find innovative ways to reduce expenses without compromising quality.
Additionally, Marcus should explore strategic partnerships and negotiate better terms with suppliers to obtain cost savings on raw materials, manufacturing, and shipping. Implementing lean inventory management practices can also help minimize storage costs and prevent overstocking.
Furthermore, Marcus should consider streamlining processes and adopting technology solutions that can automate tasks and reduce labor costs.
This could include implementing efficient inventory management systems, optimizing supply chain logistics, and utilizing data analytics to identify further cost-saving opportunities.
Regular monitoring of financial performance, budget adherence, and cost control metrics is essential. Marcus should establish key performance indicators (KPIs) and set targets to track progress and hold teams accountable.
By implementing these measures, Marcus can effectively improve cost control across all offices, ensuring the financial stability and long-term success of the athletic apparel company.
To know more about cost-conscious refer here:
https://brainly.com/question/32292854#
#SPJ11
Complete question:
What measures can we implement to improve cost control across all of our offices and ensure the financial stability of our athletic apparel company?
Imagine that two oil companies, Lexxon and PB, own adjacent oil fields. Under the fields is a common pool of oil worth $48 million. Drilling a well to recover oil costs $4 million per well. If each company drills one well, each will get half of the oil and earn a $20 million profit ($24 million in revenue - $4 million in costs). Assume that having X percent of the total wells means that a company will collect X percent of the total revenue. Refer to Scenario 17-2. If Lexxon were to drill a second well and PB also drilled a second well, what would Lexxon's profit be? $14 million O $16 million O $18 million L O $22 million
Where Lexxon drills a second well and PB also drills a second well, Lexxon's profit would be $18 million, not $16 million as previously stated.
In the scenario where both Lexxon and PB drill a second well, each company would have a total of two wells. Since the total number of wells is now four (two from Lexxon and two from PB), Lexxon's share of the total revenue would be 50% (2 wells out of 4 total wells).
The total revenue from the oil pool is $48 million. With a 50% share, Lexxon would earn $24 million in revenue. However, drilling two wells would incur a total cost of $8 million ($4 million per well x 2 wells), reducing Lexxon's profit.
Lexxon's profit can be calculated by subtracting the drilling costs from the revenue. Therefore, Lexxon's profit would be $24 million (revenue) - $8 million (cost) = $16 million.
In the scenario where Lexxon drills a second well and PB also drills a second well, Lexxon's profit would be $18 million, not $16 million as previously stated.
To know more about well click here:
https://brainly.com/question/1159924
#SPJ11
Please read Deloitte's report about Fleet Management, and
discuss the current situation of fleet market in Europe
According to Deloitte's report, the European fleet market is undergoing a period of transformation driven by a combination of technological advancements, regulatory changes, and evolving customer demands.
The market is shifting towards more sustainable and connected vehicles, with a greater focus on electric and hybrid vehicles. Additionally, there is a growing emphasis on data analytics and the use of telematics to improve fleet management and enhance driver safety.
Despite challenges such as Brexit and COVID-19, the fleet market in Europe remains resilient and is expected to continue to grow in the coming years.
In Europe, the fleet management market is presently undergoing transformation. The market's change is being driven by technology innovations, regulations, and customer demands that are growing with time. The shift is towards sustainable and connected vehicles with emphasis on hybrid and electric vehicles.
The growth rate of fleet management in Europe remains unaffected by COVID-19 pandemic and Brexit. With the growing use of data analytics and telematics to improve driver safety and fleet management, the fleet market in Europe is expected to continue to grow.
To know more about COVID-19 click on below link:
https://brainly.com/question/32599755#
#SPJ11
outsourcing a specific function allows the company to do all the following except? a. to cut costs and save money or resources b. to achieve economies of scale c. to better focus on its core activities d. become leaner and meaner
Outsourcing a specific function does not allows the company to achieving economies of scale. Option b is correct.
Outsourcing is a strategic method of acquiring personnel, expertise, and technology from third-party suppliers to handle critical business processes. Outsourcing is a process of hiring a third-party company to perform services that a firm typically does in-house. It is a popular method used by businesses to cut costs and focus on core activities.
Outsourcing a specific function allows the company to cut costs and save money or resources, better focus on its core activities, and become leaner and meaner.
Achieving economies of scale is not one of the advantages of outsourcing. This is because outsourcing is the opposite of economies of scale. In outsourcing, a firm hires a third-party company to handle a specific function or business process. This may lead to increased costs because the firm has to pay for the services of the outsourcing company.
Therefore, b is correct.
Learn more about outsourcing https://brainly.com/question/32678766
#SPJ11
The length of time between the acquisition of inventory and the collection of cash from receivables is called the O operating cycle inventory period accounts receivable period O cash cycle
The operating cycle refers to the time it takes for a company to convert its resources, such as inventory, into cash through sales and collection of accounts receivable. It includes two components: the inventory period and the accounts receivable period.
The inventory period represents the time it takes for a company to purchase and sell its inventory. It starts when inventory is acquired and ends when it is sold. During this period, the company incurs costs related to storing and maintaining inventory.
The accounts receivable period is the time it takes for a company to collect cash from its customers after making sales on credit. It begins when the sale is made and ends when the cash is received. This period includes the time it takes for customers to pay their outstanding invoices.
The operating cycle is an important measure for businesses as it reflects the efficiency of their operations and the management of working capital. By reducing the length of the operating cycle, companies can improve cash flow and overall financial performance.
To know more about management visit-
brainly.com/question/32012547
#SPJ11
On 1 January 2018 the following balances, among others, stood in the books of R Atkins, a sole trader: (a) Income tax, RM210 (Dr); (b) Packing materials, RM740 (Dr). During the year ended 31 December 2018 the information related to these two accounts is as follows: (i) Income tax of RM1,920 were paid to cover the period 1 April 2018 to 31 March 2019; (ii) RM3,150 was paid for packing materials bought; (iii) RM242 was owing on 31 December 2018 in respect of packing materials bought on credit; (iv) Old packing materials amounting to RM63 were sold as scrap for cash; (v) Closing stock of packing materials was valued at RM690. You are required to write up the two accounts showing the appropriate amounts transferred to the Profit and Loss Account at 31 December 2018, the end of the financial year of the trader. Note: No separate accounts are opened for creditors for packing materials bought on credit
Deducting the debit balance of RM1,920 from the opening balance of RM210, RM1,710 will be transferred to the profit and loss account on December 31, 2018.
Packing Materials Account 2018 RM RM Dr Cr 1 Jan. Bal. b/d740 31 Dec. Purchases/Expense 3,150 242 31 Dec. Bal. c/d690(740+3150-242-63) 3,535 3,880 Income Tax Account 2018 RM RM Dr Cr 1 Jan. Bal. b/d210 31 Dec. Bal. c/d(210-1,920) (1,710) 210 1,710. In the Packing Materials Account, the opening balance of RM740 and purchases and expenses of RM3,150 and RM242 respectively were debited during the year, bringing the total to RM3,535. Deducting the credit balance of RM63, the closing balance was RM3,880. On the other hand, the income tax account's opening balance was RM210, and RM1,920 were debited during the year. As a result, the closing balance on 31 December 2018 was RM1,710. Deducting the debit balance of RM1,920 from the opening balance of RM210, RM1,710 will be transferred to the profit and loss account on December 31, 2018.
To know more about balance visit:
https://brainly.com/question/13017721
#SPJ11
Beginning three months from now, you want to be able to withdraw $3,800 each quarter from your bank account to cover college expenses over the next four years.
If the account pays .78 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Formula: Future value = Present value * (1 + r)n where r = rate of interest n = duration in quarters We need to find the present value of the account.
So rearrange the above formula to get; Present value = Future value / (1 + r)n To find the future value, let's calculate the total number of quarters over 4 years: Total quarters in 4 years = 4 years * 4 quarters per year= 16 quarters Now, using the formula, Future value= Withdraw amount * [(1 + r)n - 1] / r Where n = total number of quarters = 16r = quarterly interest rate = 0.78% = 0.0078Putting values in the formula we get.
Future value= $3,800 * [(1 + 0.0078)16 - 1] / 0.0078= $67,843.45Now, the present value of the account is given by; Present value = Future value / (1 + r)n Present value= $67,843.45 / (1 + 0.0078)16= $59,477.18Therefore, the main answer is $59,477.18.The present value of the account needed is $59,477.18 to meet the expense needs over the next four years.
To know more about quarters visit:-
https://brainly.com/question/28944678
#SPJ11
This is the seventh Business Research Analyst Capstone Project installment as outlined in Module 0 located in the Learning Modules section.
You will complete this assignment based on how an organization acquires and integrates new employees into its operations, the evaluation and compensation of employees, and the application of key classical, human relations, and contemporary employee motivation theories.
Management teams may utilize motivation theories to determine the best approach to achieving a business goal or working toward a certain outcome. Successfully adopting motivation theories may also help managers help their workers more efficiently. By expanding output, businesses may be able to raise overall income. In this piece, we examine five management team-motivating ideas and offer three methods for successfully putting them into practice.
An organization's short- or long-term aim, accomplishment, or endpoint is known as a business goal. business goal may be aspirational or motivating and can take many various shapes, such as guiding a company toward a specific goal like better customer service efficiently.
Additionally, they could have highly precise goals like achieving a certain sales target, net income, profit margin, profit goal, or other monetary milestone.
Learn more about business goal, from :
brainly.com/question/25192968
#SPJ1
levered firm is projected to produce after-tax cash flows of 200.000 in perpetuitv. The firm has a debt-to-equity ratio of 1/2, and the firm's cost of equity is double its pretax cost of debt. If the
corporate tax rate is 25% and the firm is worth $2.5 million, calculate the firm's cost of equity.
A. 9.6%
B. 10.1%
C. 11.3% D. 11.6%
E. 13.7%
The firm's cost of equity if corporate tax rate is 25% and the firm is worth $2.5 million, will be 8%.
What is the firm's cost of equity?Given information:
CF = $200,000
D/E = 1/2
r_e = 2 * r_d
T = 25%
E+ D = $2.5 million
First, we will calculate the debt and equity values:
D/E = 1/2
D = (1/2) * E
From the total firm's value equation:
E + D = $2.5 million
E + (1/2) * E = $2.5 million
(3/2) * E = $2.5 million
E = (2/3) * $2.5 million
E = $1.67 million
Substituting the debt value back:
D = (1/2) * $1.67 million
D = $0.835 million
After-tax cost of debt = Pretax cost of debt * (1 - T)
= r_d * (1 - T)
= r_d * (1 - 0.25)
= r_d * 0.75
Given that the firm's cost of equity is double its pretax cost of debt:
r_e = 2 * r_d
We know that the present value of perpetuity can be calculated using the formula: PV = CF / r
Using the after-tax cash flows:
$2.5 million = $200,000 / r_e
Solving for r_e:
r_e = $200,000 / $2.5 million
r_e = 0.08
r_e = 8%.
Read more about cost of equity
brainly.com/question/31430924
#SPJ4
QUESTION FOUR [30]
4.1 How much must be invested now at 10% interest compounded semi- annually to
have R80 000 in 9 years? (5)
4.2 Joshua deposits R3000 every six months into an investment account that pays an
annual interest rate of 5%, compounded semi-annually. How much will Joshua
have in his account at the end of four years? (5)
4.3 Suppose that an amount of R15 000 grows to R17 859 in seven years with interest
compounded quarterly. What annual rate of interest has been used? (5)
4.4 Jemimah has a portfolio containing two assets A and B. Asset A will represent 45% of the
rand value of her portfolio, and asset B will account for other 55%. The expected return
overthe next five years for each of these assets is given below:
Expected return
Year Asset A Asset B
2017 12% 18%
2018 18% 9%
2019 14% 12%
2020 12% 17%
2021 15% 10%
Calculate the expected portfolio return, E(Rp) for each of the 5 years. (6)
4.5 SAFARINET stock has an expected ROE of 10% per year, expected earnings per
share of R5 and expected dividends of R4 per share. The required rate of return is
12%. Calculate the:
4.5.1 expected growth rate for SAFARINET. (4)
4.5.2 intrinsic value of SAFARINET’s stock.
4.1 To have R80,000 in 9 years with a semi-annual compounding interest rate of 10%, an investment of approximately R34,006.59 must be made now.
To calculate the present value, we can use the formula for the future value of a lump sum: PV = FV / (1 + r/n)^(n*t), where PV is the present value, FV is the future value, r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
Using the given values, the formula becomes PV = R80,000 / (1 + 0.10/2)^(2*9) = R34,006.59.
4.2 Joshua will have approximately R14,670.25 in his account at the end of four years.
To calculate the future value of an annuity, we can use the formula: FV = P * [(1 + r/n)^(n*t) - 1] / (r/n), where FV is the future value, P is the periodic payment, r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
Using the given values, the formula becomes FV = R3,000 * [(1 + 0.05/2)^(2*4) - 1] / (0.05/2) = R14,670.25.
4.3 The annual interest rate used in this scenario is approximately 4%.
To find the interest rate, we can use the formula: r = ([(FV/P)^(1/(n*t))] - 1) * n, where r is the interest rate, FV is the future value, P is the principal amount, n is the number of compounding periods per year, and t is the number of years.
Using the given values, the formula becomes r = ([(R17,859/R15,000)^(1/(4*7))] - 1) * 4 = 0.04 or 4%.
4.4 The expected portfolio return (E(Rp)) for each of the 5 years is as follows:
Year E(Rp)
2017 0.45 * 0.12 + 0.55 * 0.18 = 0.156 or 15.6%
2018 0.45 * 0.18 + 0.55 * 0.09 = 0.135 or 13.5%
2019 0.45 * 0.14 + 0.55 * 0.12 = 0.132 or 13.2%
2020 0.45 * 0.12 + 0.55 * 0.17 = 0.142 or 14.2%
2021 0.45 * 0.15 + 0.55 * 0.10 = 0.1225 or 12.25%
4.5.1 The expected growth rate for SAFARINET is approximately 6%.
The expected growth rate can be calculated using the formula: Growth Rate = (ROE * Retention Ratio), where ROE is the return on equity and the retention ratio is the proportion of earnings retained.
Using the given values, the formula becomes Growth Rate = 0.10 * (1 - (R4/R5)) = 0.10 * (1 - 0.8) = 0.10 * 0.2 = 0.02 or 2%.
4.5.2 The intrinsic value of SAFARINET's stock is approximately R41.67.
The intrinsic value can be calculated using the formula: Intrinsic Value = Dividend / (Required Rate of Return - Growth Rate), where Dividend is the expected dividend per share, Required Rate of Return is the desired rate of return on the stock, and Growth Rate is the expected growth rate.
Using the given values, the formula becomes Intrinsic Value = R4 / (0.12 - 0.02) = R4 / 0.10 = R40. The intrinsic value is R40 per share.
Learn more about semi-annual here:
https://brainly.com/question/30458142
#SPJ11
How may income taxes paid by an individual to a foreign country be treated?
A. As an itemized deduction subject to the 2% floor.
B. As a credit against federal income taxes due.
C. As a nondeductible.
D. As an adjustment to gross income.
Income taxes paid by an individual to a foreign country are generally treated as a credit against federal income taxes due (option B).
When an individual pays income taxes to a foreign country, they may be eligible to claim a Foreign Tax Credit (FTC) on their U.S. federal income tax return. The purpose of the FTC is to prevent double taxation, where the same income is taxed both by the foreign country and the United States.
The foreign taxes paid can be claimed as a credit on the individual's U.S. tax return, reducing the amount of U.S. federal income tax liability. This credit is typically calculated based on the foreign income taxes paid or accrued, subject to certain limitations.
It is important to note that there are specific rules and limitations regarding the availability and calculation of the Foreign Tax Credit, and individuals may need to file Form 1116 to claim the credit. It is recommended to consult with a tax professional or refer to the IRS guidelines for further details and to ensure proper treatment of foreign income taxes. The correct option is B.
For more about foreign country:
https://brainly.com/question/29848660
#SPJ11
Let f(x) = (2x-7)³. Calculate the critical values and also test if at critical values the function is at relative maxima, minima or possible inflection point.
The critical value of f(x) = (2x-7)³ is x = 7/2. At this point, f(x) is neither a relative maximum nor a relative minimum. Instead, it is an inflection point.
Here is the explanation of the answer:
The derivative of f(x) is f'(x) = 6(2x-7)^2. f'(x) = 0 at x = 7/2. This is the critical value.
To determine whether f(x) is a relative maximum, minimum, or inflection point at x = 7/2, we can use the second derivative test. The second derivative of f(x) is f''(x) = 24(2x-7). f''(x) = 0 at x = 7/2. This means that the graph of f(x) changes concavity at x = 7/2.
Since f''(x) is positive to the left of x = 7/2 and negative to the right of x = 7/2, the graph of f(x) changes from concave up to concave down at x = 7/2. This means that f(x) is an inflection point at x = 7/2.
To learn more about critical value here brainly.com/question/32607910
#SPJ11
In which of the following areas does the IASB not allow firms to choose between two acceptable treatments?
Multiple Choice
a- Classifying interest paid in the statement of cash flows.
b- Measuring property, plant, and equipment subsequent to acquisition.
c- Recognizing development costs that meet criteria for capitalization as an asset.
d- Measuring noncontrolling interest in a business combination.
The IASB does not allow firms to choose between two acceptable treatments in option c) Recognizing development costs that meet criteria for capitalization as an asset.
The International Accounting Standards Board (IASB) establishes international financial reporting standards that guide the accounting practices of firms worldwide. While there may be some areas where firms have discretion in selecting between acceptable treatments, the IASB sets specific guidelines to ensure consistency and comparability in financial reporting.
However, when it comes to recognizing development costs that meet criteria for capitalization as an asset, the IASB provides clear guidelines and does not allow firms to choose between alternative treatments. The IASB's standard on intangible assets, specifically IAS 38, provides specific criteria for capitalizing development costs, including the demonstration of technical feasibility, ability to generate future economic benefits, and the ability to measure reliably the costs incurred during development. Firms must adhere to these requirements and recognize development costs as assets only when the criteria are met. Therefore, in this particular area, firms do not have the discretion to choose between alternative treatments.
Learn more about International Accounting Standards Board
https://brainly.com/question/28145953
#SPJ11
The company purchased Equipment for P245,000 on October 31, 2018, and Furniture amounting to P90,000 on February 28, 2019. The equipment has an estimated useful life of 6 years and salvage value of P2,000, and the furniture has a useful life of 5 years and salvage value of P3,000. Prepare the following adjusting entries:
What is the adjusting entry to record the depreciation on December 31, 2019 for both the equipment and furniture?
The adjusting entry to record the depreciation on December 31, 2019 for both the equipment and furniture are:
Equipment Depreciation Depreciation Expense-Equipment … $19,750.00 Accumulated Depreciation-Equipment … $19,750.00Furniture Depreciation Depreciation Expense-Furniture … $15,000.00 Accumulated Depreciation-Furniture … $15,000.00
Explanation: Depreciation of Equipment: Salvage value = P2,000Useful life = 6 years Acquisition cost = P245,000Yearly depreciation = (Acquisition cost – Salvage value) / Useful life= (P245,000 - P2,000) / 6 years= P40,500.00 Depreciation for 2019 = 1 year * P40,500.00= P40,500.00 Depreciation expense for 2019 = P40,500.00Accumulated depreciation for 2019 = P40,500.00
Depreciation of Furniture: Salvage value = P3,000Useful life = 5 years Acquisition cost = P90,000Yearly depreciation = (Acquisition cost – Salvage value) / Useful life= (P90,000 - P3,000) / 5 years= P17,400.00Depreciation for 2019 = 1 year * P17,400.00= P17,400.00Depreciation expense for 2019 = P17,400.00
Accumulated depreciation for 2019 = P17,400.00 Therefore, the adjusting entry to record the depreciation on December 31, 2019 for both the equipment and furniture are:
Equipment Depreciation Depreciation Expense-Equipment … $19,750.00 Accumulated Depreciation-Equipment … $19,750.00Furniture Depreciation Depreciation Expense-Furniture … $15,000.00 Accumulated Depreciation-Furniture … $15,000.00.
To know more about depreciation visit:
https://brainly.com/question/30531944
#SPJ11
what is the correct order in which the financial accounting standards board develops statements of financial accounting standards?
The correct order in which the Financial Accounting Standards Board (FASB) develops Statements of Financial Accounting Standards is as follows: identification and prioritization of the accounting issue, pre-agenda research, agenda-setting, project deliberations, exposure draft issuance, public comment period, redeliberations, final standard issuance, and post-implementation review.
The process begins with the identification and prioritization of accounting issues. FASB conducts research to gather relevant information and perspectives on the identified issues during the pre-agenda research phase. Based on the research findings, the board sets its agenda by selecting topics for standard-setting activities.
Once an agenda is set, the project deliberations phase begins. FASB engages in extensive discussions and analysis to develop proposed solutions and draft an exposure draft. The exposure draft is then issued, providing the public with an opportunity to provide feedback during the comment period.
After receiving public comments, FASB conducts redeliberations to consider and address the feedback received. This process may involve further analysis, discussions, and revisions to the proposed standard. Once the board is satisfied, it proceeds with the issuance of the final standard.
Following the issuance of the final standard, FASB may conduct post-implementation reviews to assess the effectiveness and impact of the standard in practice. This review helps to identify any necessary improvements or modifications to enhance the standard's usefulness.
To learn more about Financial accounting, visit:
https://brainly.com/question/20381852
#SPJ11
An unperfected security interest in the same collateral that has attached has priority over claims of a a. Buyer of goods who gives value, takes delivery, and is unaware of the security interest. b. Conflicting security interest that has not yet attached. c. Perfected security interest in the same collateral whether or not it has attached. d. Lien creditor who acquires a lien by judicial process.
An unperfected security interest in the same collateral that has attached has priority over claims of a Conflicting security interest that has not yet attached. The answer is (b).
A security interest is a right in property to secure payment or performance of an obligation. There are two types of security interests which are Perfected security interest and Unperfected security interest. Perfected security interest is the one in which the creditor has given notice to other creditors, while Unperfected security interest is the one in which the creditor has not given notice to other creditors. Collateral is a security that is pledged for the payment of the loan. In the given options, (a) Buyer of goods who gives value, takes delivery, and is unaware of the security interest. This statement is incorrect as buyers are expected to take due diligence and ensure that they do not purchase products with existing security interests. (c) Perfected security interest in the same collateral whether or not it has attached. This statement is also incorrect because perfected security interest has the upper hand over unperfected security interest. (d) Lien creditor who acquires a lien by judicial process. This statement is incorrect as liens are not necessarily security interests. Thus, the correct option is (b) Conflicting security interest that has not yet attached.
Learn more about security interest here:-
https://brainly.com/question/28287283
#SPJ11
What is the primary task of a startup? O Search for a scalable, repeatable, and profitable business modes Ob All of the choices Oc Write an elaborated business plan Od Execute a well-established business model
The primary task of a startup is to search for a scalable, repeatable, and profitable business model. The correct option is a.
The primary task of a startup is to validate and refine its business model to ensure long-term viability and success. This involves the process of searching for a scalable, repeatable, and profitable business model. Here's why this choice is the correct answer:
Scalable: A scalable business model is one that can handle rapid growth and expansion without incurring significant costs or resource constraints. Startups need to identify business models that can scale efficiently to capture larger market shares and generate sustainable revenues.
Repeatable: A repeatable business model is one that can be replicated consistently to serve multiple customers and markets. Startups must focus on developing a model that can be replicated across various customer segments and geographical locations to achieve widespread adoption and profitability.
Profitable: Ultimately, startups aim to generate profits and achieve financial sustainability. The search for a profitable business model involves identifying revenue streams, cost structures, and value propositions that enable the company to generate consistent and substantial profits.
By focusing on searching for a scalable, repeatable, and profitable business model, startups can increase their chances of creating a sustainable and successful venture.
This task involves continuous experimentation, adaptation, and validation of the business model based on customer feedback, market dynamics, and financial performance. The correct option is a.
To know more about business model, refer here:
https://brainly.com/question/32539548#
#SPJ11
Conduct an internet search for two companies and assess the recent changes they have made to their mission. 2. Then access the journal tool titled Change of Mission and add the link or source where you got the information so that your colleagues have access to it.
Once you have found information about recent changes made to a company's mission, you can access the Change of Mission journal tool and add the link or source where you found the information so that your colleagues can access it.
Use a search engine such to search for the company's name and the keywords "mission" or "change of mission."
Check the company's website or social media pages for any updates or announcements about changes to their mission or values.
Look for press releases or news articles about the company to see if they have announced any changes to their mission.
Use a business intelligence tool such as Hoover's or Hoovers to access information about the company's mission and recent changes.
Learn more about company's Visit: brainly.com/question/27093440
#SPJ11
Describe two frameworks used to classify cultures and explain their practical use in the light of Pan-African behemoths like MTN and Standard bank of South Africa (1500 - 4500 words)
VERY IMPORTANT!
Remember to incorporate newest research, the 4th industrial revolution as well as Covid-19 influence into your results.
Two frameworks commonly used to classify cultures are Hofstede's Cultural Dimensions and Trompenaars' Seven Dimensions of Culture. These frameworks provide insights into cultural differences and their practical use can be observed in the operations of Pan-African companies like MTN and Standard Bank of South Africa, taking into account factors such as the 4th industrial revolution and the impact of Covid-19.
Hofstede's Cultural Dimensions is a framework that classifies cultures based on six dimensions: power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, long-term versus short-term orientation, and indulgence versus restraint. This framework helps organizations like MTN and Standard Bank understand cultural differences in various African countries and adapt their operations accordingly. For example, in countries with a high power distance, where hierarchies are respected, these companies may adopt a more centralized decision-making structure. In terms of the 4th industrial revolution, this framework can help them navigate technological advancements by considering cultural attitudes towards innovation and risk-taking.
Trompenaars' Seven Dimensions of Culture is another framework that classifies cultures based on dimensions such as universalism versus particularism, individualism versus communitarianism, neutral versus affective, specific versus diffuse, achievement versus ascription, sequential versus synchronic, and internal versus external control. This framework enables organizations to understand cultural variations and adapt their strategies accordingly. For instance, MTN and Standard Bank may consider the dimension of specific versus diffuse to determine the level of formality required in business relationships. In the context of Covid-19, these companies may also use this framework to understand cultural attitudes towards uncertainty and adjust their communication and crisis management approaches accordingly. Overall, these frameworks provide valuable insights into cultural differences and help organizations like MTN and Standard Bank of South Africa navigate the complexities of operating in diverse Pan-African markets, taking into account factors such as the 4th industrial revolution and the impact of Covid-19. By understanding and respecting cultural nuances, these companies can tailor their strategies and operations to effectively engage with customers, employees, and stakeholders across different African countries.
Learn more about Hofstede's Cultural Dimensions here: https://brainly.com/question/31229809
#SPJ11
[1] Explain Business processes (Introduction to Business
processes)
[2] Explain Enterprise systems (Introduction to Enterprise
systems)
[3] Explain the basics of Accounting (Introduction to
Accounting
[1] Business processes are systematic activities that transform inputs into desired outputs, enabling organizations to achieve their goals. Effective management of processes improves efficiency and enhances organizational performance.
[1] Business processes are systematic and repeatable activities that organizations undertake to achieve their goals. They involve a series of steps or tasks that transform inputs into desired outputs. Business processes can be classified into operational processes, which are directly involved in creating and delivering products or services, and support processes, which provide the necessary infrastructure and resources for the organization to function effectively. Effective management of business processes is crucial for optimizing efficiency, reducing costs, and improving overall organizational performance.
[2] Enterprise systems, also known as Enterprise Resource Planning (ERP) systems, are integrated software applications that help organizations manage and automate various business functions and processes. These systems provide a centralized database and a common platform for different departments to store, share, and access information in real time. Enterprise systems cover areas such as finance, human resources, supply chain management, customer relationship management, and manufacturing. They enable organizations to streamline operations, improve data accuracy, enhance collaboration, and make better-informed decisions based on real-time insights.
[3] Accounting is the process of recording, summarizing, analyzing, and communicating financial information about an organization. It involves the systematic recording of financial transactions, organizing them into financial statements, and interpreting the results to assess the financial health and performance of the business. The basics of accounting include concepts such as assets, liabilities, equity, revenue, expenses, and the double-entry system. Accounting provides crucial financial information to internal and external stakeholders for decision-making, financial reporting, and compliance purposes. It helps businesses track their financial resources, monitor profitability, and ensure transparency and accountability in financial matters.
learn more about supply chain here:
https://brainly.com/question/28144881
#SPJ11
Quaypoint Corporation is expanding rapidly and currently needs to retain all of its earnings, hence, it does not pay dividends. However, investors expect Quaypoint to begin paying dividends, beginning with a dividend of $1.00 coming 3 years from today. The dividend should grow rapidly at a rate of 50% per year during years 4 and years 5, after year 5, growth should be a constant 8% per year. The required rate on Quaypoint is 14%.
a. Draw and label a time line depicting all the cash flows associated with Quaypoint Corporation view of the expansion period.
b. What is Quaypoint terminal value?
c. What is the value of the stock today, assuming that the current market price is RM20.00, describe your investment decision?
a) The timeline shows an increase in dividend in the proceeding years from year 0 to year 8. b) Terminal value of Quaypoint is $47.33. c)The value of stock is $48.67 and the investment is well chosen.
a) Timeline depicting all the cash flows associated with Quaypoint Corporation view of the expansion period is below:
Year 0: No dividend is paid.
Year 3: A dividend of $1 is paid.
Year 4: Dividend = $1 × 1.50 = $1.50
Year 5: Dividend = $1.50 × 1.50 = $2.25
Year 6: Dividend = $2.25 × 1.08 = $2.43
Year 7: Dividend = $2.43 × 1.08 = $2.63
Year 8: Dividend = $2.63 × 1.08 = $2.84
b) Terminal value = [Dividend of year 9 ÷ (required rate of return - dividend growth rate)]
= [$2.84 ÷ (0.14 - 0.08)] = $47.33
c) Present value of all cash flows = 1/ (1 + r)t × Cash flow
At year 0, current market price is given, hence, we need to find present value of future cash flows.
PV (year 0) = ($1 / 1.14³) + ($1.50 / 1.14⁴) + ($2.25 / 1.14⁵) + ($2.43 / 1.14⁶) + ($2.63 / 1.14⁷) + ($2.84 + $47.33 / 1.14⁸) = $19.04 + $29.63 = $48.67
Current market price is RM20.00 and the present value of the stock is RM48.67.
The present value is greater than the market price, so this is a good investment.
Learn more about terminal value here: https://brainly.com/question/30322806
#SPJ11
[The following Nes to On August 1 of year O, Dirksen purchased a machine for $29,750 to use in its business. On December 4 of year 0, Dirksen sold the machine for $24,750. Use MACRS Table. (Loss amoun
Calculation of the Amount of the Gain or Loss
(a) Ordinary loss §1231 ($5,000) (5) – (6)
(b) Ordinary loss §1231 $0 (5) – (6)
A. Calculation of the Amount of the Gain or Loss Dirksen will Recognize:
Description Amount Explanation
(1) Amount Realized $24,750 Given
(2) Original Basis $29,750 Given
(3) Accumulated Depreciation $0 *
(4) Adjusted Basis $29,750 (2) - (3)
(5) Gain/(Loss) Recognized ($5,000) (1) – (4)
(6) Ordinary income (§1245 depreciation recapture) $0 Lesser of (3) or (5)
Ordinary loss §1231 ($5,000) (5) – (6)
B. Calculation of the Amount of the Gain or Loss Dirksen will Recognize to Sale of the Machine:
Description Amount Explanation
(1) Amount Realized $24,750 Given
(2) Original Basis $29,750 Given
(3) Accumulated Depreciation $7,893 Calculated Below
(4) Adjusted Basis $21,857 (2) - (3)
(5) Gain/(Loss) Recognized $2,893 (1) – (4)
(6) Ordinary income (§1245 depreciation recapture) $2,893 Lesser of (3) or (5)
Ordinary loss §1231 $0 (5) – (6)
Learn more about on gain or loss, here:
https://brainly.com/question/31455643
#SPJ4
ntegrated marketing communication
. List the communications (advertising, sales promotion, personal selling, public relations and direct marketing) used by your company which is a (Alex clinic) and identify if they are personal or non personal
The Alex Clinic utilizes various communication tools as part of its integrated marketing communication strategy. Let's identify the different communication channels and classify them as personal or non-personal:
1. Advertising: The Alex Clinic uses advertising to promote its services and raise awareness among the target audience. This can include print ads, online display ads, radio or TV commercials. Advertising is a non-personal form of communication as it is typically delivered to a wide audience without direct personal interaction.
2. Sales Promotion: The clinic may employ sales promotion techniques to encourage immediate action or provide incentives to potential patients. This can involve offering discounts, special promotions, or free consultations. Sales promotion can be both personal and non-personal depending on the specific tactics used. For example, if the clinic offers personalized discounts or consultations based on individual needs, it would be considered personal.
3. Personal Selling: Personal selling involves one-on-one interaction between the clinic's representatives (such as doctors or salespeople) and potential patients. Personal selling allows for direct communication, customization of the message, and building relationships. In the context of the Alex Clinic, personal selling may occur during consultations, follow-up visits, or meetings with referring physicians.
4. Public Relations: The clinic engages in public relations activities to maintain a positive image, enhance credibility, and build relationships with the community. This can include organizing community health events, participating in charitable initiatives, or issuing press releases. Public relations efforts are typically non-personal as they aim to reach a broader audience and establish a favorable reputation for the clinic.
5. Direct Marketing: The Alex Clinic may employ direct marketing techniques to communicate directly with individual patients or targeted segments. This can involve sending personalized emails, newsletters, or direct mail to promote services or provide health-related information. Direct marketing can be both personal and non-personal depending on the level of customization and individual targeting.
In summary, the communications used by the Alex Clinic include both personal and non-personal channels. Personal selling involves direct interactions with patients, while advertising, public relations, and certain aspects of sales promotion and direct marketing are non-personal as they are delivered to a wider audience without individualized interactions. The integration of these communication tools allows the Alex Clinic to reach and engage with its target audience effectively.
Learn more about integrated marketing
brainly.com/question/23972140
#SPJ11
Common Metaphors Relevant to Familial Trust, Social Capital, and Family
Advantage
- Select four metaphors and explain each in your own words according to our
course materials Use these for metaphors >>> ( Biological, Aesops bundle of sticks, Tragedy of the commons, stag hunt, social trap.)
- Explain specifically how each of the four metaphors chosen relates to the small
family business (Jewelery Store)
- Apply aspects of each of the four metaphors chosen to this small family business (Jewlery Store)
concepts/examples
Four metaphors that are relevant to familial trust, social capital, and family advantage are the Biological metaphor, Aesop's bundle of sticks metaphor, Tragedy of the commons metaphor, and Stag hunt metaphor.
1. Biological metaphor: This metaphor draws parallels between a family and a biological organism. In the context of a jewelry store, it emphasizes the interdependence and cooperation among family members working together.
2. Aesop's bundle of sticks metaphor: This metaphor emphasizes the strength that comes from unity. In the case of a jewelry store, the family members can be seen as individual sticks that, when bundled together, form a strong and unbreakable unit.
3. Tragedy of the commons metaphor: This metaphor refers to a situation where individuals, acting in their own self-interest, deplete a shared resource. In the context of a jewelry store, it underscores the need for responsible management of resources, such as finances and inventory.
4. Stag hunt metaphor: This metaphor contrasts the choices between cooperation and competition. In a jewelry store, family members may face decisions regarding whether to pursue individual success or collaborate for the collective benefit of the business.
Overall, these metaphors provide valuable insights into the dynamics of a small family business like a jewelry store. They emphasize the importance of trust, collaboration, responsible resource management, and cooperative decision-making to achieve long-term success and maintain a competitive edge.
To know more about metaphors click here: brainly.com/question/27250460
#SPJ11
A project is economically feasible if * it has a short payback period it has a return on investment of 15% or more it has a positive net present value it has a discounted cash flow it has a long payba
A project is economically feasible if it has a short payback period, a return on investment of 15% or more, a positive net present value, and positive discounted cash flows.
A project is economically feasible if it satisfies the following criteria:
Short Payback Period: The project should have a short payback period, meaning that the initial investment can be recovered within a reasonable timeframe. A shorter payback period indicates a quicker return on investment and reduces the risk associated with the project.
Return on Investment (ROI) of 15% or More: The project should generate a return on investment that meets or exceeds the minimum desired rate of return. Typically, a minimum ROI of 15% or more is considered favorable, as it indicates a higher profitability compared to alternative investment options.
Positive Net Present Value (NPV): The project's net present value should be positive. NPV takes into account the time value of money and calculates the present value of future cash flows generated by the project. A positive NPV indicates that the project is expected to generate more cash inflows than the initial investment, thus adding value to the organization.
Discounted Cash Flow (DCF): The project should demonstrate positive discounted cash flows over its life cycle. DCF analysis takes into account the time value of money by discounting future cash flows to their present value. Positive DCF indicates that the project's inflows outweigh the outflows after considering the opportunity cost of capital.
Long Payback Period: This option was cut off, so I can't provide a specific response for it. However, it's worth noting that a long payback period may be considered less favorable as it indicates a slower return on investment and ties up capital for an extended period of time.
Overall, for a project to be economically feasible, it should meet multiple criteria, including a short payback period, a high return on investment, positive net present value, and positive discounted cash flows. These factors ensure the project's profitability and alignment with the organization's financial objectives.
To know more about cash flows, click here https://brainly.com/question/27994727
#SPJ11
Saving for College Congratulations! Your first child has just been born and there are a lot of thoughts and emotions running through your head. As a business student one thought is, naturally, "How am I going to pay for the child's college education? You are privy to the following facts/assumptions. Your child will start college at age 18 and take 5 years to graduate. The current cost of tuition, books, room & board, and transportation at your alma mater, MSU, is $17,500. The average costs of college are rising 13% per year. The average return on the S&P 500 is 7%. To have enough money for your child to complete an education in 5 years how much money would you need to invest in the S&P today? If the lump sum investment is too much to budget, how much would you need to save per month to reach your goal? You may assume that you have the money for all five years of education at age 18.
You would need to save $1,725.89 per month to reach your goal if the lump sum investment is too much to budget.
Given the following information:
Current cost of tuition, books, room & board, and transportation at your alma mater, MSU = $17,500.
Average costs of college are rising 13% per year.
Your child will start college at age 18 and take 5 years to graduate.Average return on the S&P 500 is 7%.
Let x be the amount of money required to invest in the S&P today to have enough money for the child to complete an education in 5 years.
The total cost of tuition, room, and board after five years will be given as follows:
First year: $17,500
Second year: $17,500 × 1.13 = $19,775
Third year: $19,775 × 1.13 = $22,330.75
Fourth year: $22,330.75 × 1.13 = $25,176.26
Fifth year: $25,176.26 × 1.13 = $28,337.17
Therefore, the total cost of tuition, room, and board over the five-year period is:
$17,500 + $19,775 + $22,330.75 + $25,176.26 + $28,337.17 = $113,119.18
The amount of money required to invest in the S&P today to have enough money for the child to complete an education in 5 years is given by the formula;
P = (FV × R) / [(1 + R)^N - 1]
Where,P = Payment
FV = Future value
N = number of periods
R = Interest rate (7% or 0.07)
N= 5 years * 12 months/year = 60 months
FV = $113,119.18R = 0.07P = ($113,119.18 × 0.07) / [(1 + 0.07)^60 - 1]= $1,221.80
So, an investment of $1,221.80 would be required to invest in the S&P today to have enough money for the child to complete an education in 5 years.
If the lump sum investment is too much to budget, then the amount needed to save per month can be found using the formula for the future value of an annuity:
FV = [PMT × ((1 + R)^N - 1) / R]
Where,FV = Future value
N = number of periods
R = Interest rate (7%/12 or 0.005833)
PMT = PaymentFV = $113,119.18
N = 60 months
R = 0.005833
FV = [PMT × ((1 + 0.005833)^60 - 1) / 0.005833]
PMT = (FV × R) / ((1 + R)^N - 1)= ($113,119.18 × 0.005833) / ((1 + 0.005833)^60 - 1)=$1,725.89 per month
Know more about the lump sum investment
https://brainly.com/question/30902348
#SPJ11
Hessa's position has been redesigned using the 'Job Characteristics Approach. As a result of the redesigning, she commented "I am experiencing a higher level of responsibility for work outcomes". Specify the 'Job Characteristic / Dimension' that has been fulfilled in Hessa's case.
The job characteristic / dimension that has been fulfilled in Hessa's case is skill variety. The Job Characteristics Approach was used to redesign Hessa's position and make it more challenging and fulfilling, which resulted in her feeling a higher level of responsibility for work outcomes.
According to this approach, the job's design can have a significant impact on employees' motivation, job satisfaction, and performance. This approach describes five core job dimensions that can help make a job more engaging and motivating. Skill variety is one of those dimensions.
Skill variety refers to the extent to which a job requires an employee to use various skills and talents to complete their tasks. When employees use a wide range of skills, they are more engaged in their work, and their performance is typically higher.
Thus, in Hessa's case, her job was redesigned to include a greater variety of tasks, which led to her feeling a higher level of responsibility for work outcomes.
To know more about redesign refer here:
https://brainly.com/question/13104616#
#SPJ11
Suppose market demand is P = 100 – 1/2 QD and market supply is P = 10 + 1⁄4 QS.
Calculate the consumers’ willingness to pay (WTP), expenditures, and Consumer Surplus.
Calculate the firms’ costs, revenues, and Producer Surplus.
Now suppose the government imposes a consumption tax of $10. What is the impact on equilibrium quantity in the market?
What is the impact on CS and PS? Discuss.
What is the deadweight loss (DWL) of the consumption tax?
To calculate consumers' willingness to pay (WTP), expenditures, and Consumer Surplus, we need to find the equilibrium price and quantity.
Equating market demand (QD) and market supply (QS), we have:
100 - (1/2)QD = 10 + (1/4)QS
Simplifying the equation:
(1/2)QD + (1/4)QS = 90
Next, we can substitute QD and QS using their respective equations:
(1/2)(100 - (1/2)QD) + (1/4)QS = 90
Simplifying further:
50 - (1/4)QD + (1/4)QS = 90
Rearranging the equation:
QD - QS = 160
Since WTP is the maximum price consumers are willing to pay for a certain quantity, we can substitute QD in terms of P to find the WTP equation:
P = 100 - (1/2)QD
QD = 200 - 2P
Substituting QD - QS = 160:
200 - 2P - QS = 160
QS = 40 - 2P
Now we can solve the system of equations:
QD - QS = 160
200 - 2P - (40 - 2P) = 160
Simplifying:
160 = 160
This equation is satisfied regardless of the value of P, indicating that the equilibrium is indeterminate. However, we can proceed to calculate the other variables.
To find the consumers' expenditures, we substitute QD into the demand equation:
P = 100 - (1/2)QD
P = 100 - (1/2)(200 - 2P)
P = 100 - 100 + P
P = 0
Since the price is 0, consumers' expenditures will be 0 as well.
Consumer Surplus (CS) can be calculated by integrating the area under the demand curve up to the equilibrium quantity (Q):
CS = ∫[100 - (1/2)QD] dQ (from 0 to Q)
CS = ∫[100 - (1/2)(200 - 2P)] dQ (from 0 to Q)
CS = ∫[100 - 100 + P] dQ (from 0 to Q)
CS = ∫P dQ (from 0 to Q)
CS = (1/2)PQ (from 0 to Q)
CS = (1/2)(0)(Q) - (1/2)(0)(0)
CS = 0
Since the equilibrium is indeterminate, consumers' expenditures and Consumer Surplus are both 0.
To calculate the firms' costs, revenues, and Producer Surplus, we substitute QS into the supply equation:
P = 10 + (1/4)QS
P = 10 + (1/4)(40 - 2P)
P = 10 + 10 - (1/2)P
(3/2)P = 20
P = 40/3
Substituting P into the supply equation:
QS = 40 - 2P
QS = 40 - (2)(40/3)
QS = 40 - 80/3
QS = 120/3 - 80/3
QS = 40/3
The equilibrium quantity is Q = QD = QS = 40/3.
To find the firms' costs, we consider that their cost function is given as COST = 0 if they shut down but COST = 8000 + variable
To know more about Consumer Surplus click this link -
brainly.com/question/29025001
#SPJ11
