Answer:
a. Overstates Inflation.
In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.
b. Understated Inflation
Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.
c. Overstates Inflation
In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.
d. Accurate representation of Inflation
In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.
Warnerwoods Company uses a perpetual inventory system.
It entered into the following purchases and sales transactions for March
Date Activities Units Sold at Retail Units Acquired at Cost
Mar. 1 Beginning inventory 130 units $51.60 per unit
Mar. 5 Purchase 240 units $56.60 per unit
Mar. 9 Sales 290 units $86.60 per unit
Mar. 18 Purchase 100 units $61.60 per unit
Mar. 25 Purchase 180 units $63.60 per unit
Mar. 29 Sales 160 units a $96.60 per unit
Totals 650 units 450 units
Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from the March 18 purchase and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
Answer:
gross profit under FIFO = $40,570 - $25,220 = $15,350
gross profit under LIFO = $40,570 - $26,340 = $14,230
gross profit under weighted average = $40,570 - $26,240 = $14,330
gross profit under specific id. = $40,570 - $26,070 = $14,500
Explanation:
sales revenue = (290 x $86.60) + (160 x $96.60) = $40,570
COGS under FIFO:
130 x $51.60 = $6,708
160 x $56.60 = $9,056
80 x $56.60 = $4,528
80 x $61,60 = $4,928
total COGS = $25,220
COGS under LIFO:
240 x $56.60 = $13,584
50 x $51.60 = $2,580
160 x $63.60 = $10,176
total COGS = $26,340
COGS under weighted average:
weighted average = [(130 x $51.60) + (240 x $56.60) + (100 x $61.60) + (180 x $63.60)] / 650 = $58.31
450 x $58.31 = $26,239.50 ≈ $26,240
COGS under specific method:
80 x $51.60 = $4,128
210 x $56.60 = $11,886
60 x $61.60 = $3,696
100 x $63,60 = $6,360
total COGS = $26,070
Competition happens when two or more businesses.
complement one another.
fight for the same benefit or gain.
work together to achieve success.
follow regulations from an agency.
Answer:
fight for the same benefit or gain
Explanation:
In business, competition refers to the rivalry among firms selling similar goods and services to the same target customers. Each company aims to out-do others by generating more revenues, profits, or acquiring a bigger market share.
Competition in the market challenges businesses to be creative and innovative to increase their sales volume. The competition is in price, quality, raw materials, location, sales, and virtually every business aspect. Enterprises will fight to get a better share of the gains associated with doing business.
Type the correct answer in the box. Spell all words correctly.
In compliance with new policies, banks increased rate of interest on housing loans. Gregory's real estate business started suffering losses
because fewer people borrowed home loans. What risk did his business suffer from?
risk held back Gregorys real estate business,
Answer:A space-separated list of other elements’ ids, indicating that those elements contributed input values to (or otherwise affected) the calculation.
Explanation:
Answer:
Economic
Explanation:
i took the test. Also middle schoolers on brainly told me and it got rated 5 stars.
some practical steps for managing foreign exchange risk for global companies are all of the following EXCEPT
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 775,100 46,000 machine-hours Processing orders $ 57,375 1,500 orders Inspection $ 108,772 1,420 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 450 Annual machine-hours 1,120 Annual number of orders 110 Annual inspection hours 50 Direct materials cost $ 41.00 per unit Direct labor cost $ 41.29 per unit According to the activity-based costing system, the average cost of product Q79Y is closest to:
Answer:
$142.10
Explanation:
The computation of average cost of product Q79Y is shown below:-
Activity cost Total cost Total activity Activity Rate
pool
Assembly $775,100 46,000 $16.85
Processing
orders $57,375 1,500 $38.25
Inspection $108,772 1,420 $76.6
Average cost
Direct Material Cost $41.00
Direct labor Cost $41.29
Total Direct Cost $37,031
( Material Cost + Labor Cost ) × Number of Units
Add :Assembly Cost $18,872
(1,120 Hours × $16.85)
Add :Processing Order Cost $4,208
(110 Orders × $ 38.25)
Add :Inspection Cost $3,830
(50 Hours × $ 76.6)
Total Cost $63,941
Average Cost = Total Cost ÷ Annual Units
= $63,941 ÷ 450
= $142.10
Which of the following events would cause GDP for 2019 to increase?
A In November 2019, Jordan buys a house in Arizona that was built in April 2018.
B In October 2019Tiana eats tomatoes that she grew in her yard earlier that year
C In May 2019James buys a 2019 Honda Accord .
D None of the above are correct
Answer:
C In May 2019James buys a 2019 Honda Accord .
Explanation:
GDP refers to a country's monetary value of all the finished goods and services produced in a particular year. GDP incorporates the value of products and services produced within the country's boundaries regardless of who produced them.
Economists calculate GDP for a particular year by considering only the finished goods or services in that year. They calculate GDP using either the income, expenditure or the production approach. In any of the approaches, only the Honda produced and sold in 2019 will add to the GDP of 2019. The products that were finished in 2018 were accounted for in GDP for 2018.
The event that case GDP for 2019 to increase is
C In May 2019 James buys a 2019 Honda Accord .
The following information should be considered:
GDP means the value that should be in the monetary terms with respect to the finished goods & services generated for a year. It could be determine by various approaches. Since the honda produced and sold in 2019 so this added to the GDP of 2019.Therefore we can conclude that the correct option is c.
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The following ledger accounts are used by the Heartland Race Track:_______. Accounts Receivable Prepaid Advertising Prepaid Rent Unearned Sales Revenue Sales Revenue Advertising Expense Rent Expense
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on November 30, the end of the fiscal year.
(a) On November 1, paid rent on the track facility for three months, $180,000.
(b) On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $1,152,000.
(c) On November 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
(d) On November 5, programs for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600.
(e) The accountant for the concessions company reported that gross receipts for November were $168,000. 10 percent is due to Heartland and will be remitted by December 10.
Answer: See attachment
Explanation:
The journal entry depicts the credit and the debit balance of a transaction made by a company.
The journal entry to record the initial transaction and the adjusting entry has both been attached.
Kindly check the attachment.
Listed below are costs found in various organizations.
1. Property taxes, factory.
2. Boxes used for packaging detergent produced by the company.
3. Salespersons' commissions.
4. Supervisor's salary, factory.
5. Depreciation, executive autos.
6. Wages of workers assembling computers.
7. Insurance, finished goods warehouses.
8. Lubricants for production equipment.
9. Advertising costs.
10. Microchips used in producing calculators.
11. Shipping costs on merchandise sold.
12. Magazine subscriptions, factory lunchroom.
13. Thread in a garment factory.
14. Billing costs.
15. Executive life insurance.
16. Ink used in textbook production.
17. Fringe benefits, assembly-line workers.
18. Yarn used in sweater production.
19. Wages of receptionist, executive offices.
Required:
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.
Answer:
Costs in various organizations
Indication of whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product:
1. Property taxes, factory.
Fixed / Manufacturing cost / Indirect cost with respect to units of product.
2. Boxes used for packaging detergent produced by the company.
Variable / Manufacturing cost / Indirect cost with respect to units of product.
3. Salespersons' commissions.
Variable / Selling cost /
4. Supervisor's salary, factory.
Fixed / Manufacturing / Indirect cost with respect to units of product.
5. Depreciation, executive autos.
Fixed / Administrative cost
6. Wages of workers assembling computers.
Variable / Manufacturing / Direct cost
7. Insurance, finished goods warehouses.
Fixed / Selling cost
8. Lubricants for production equipment.
Variable / Manufacturing / Indirect cost
9. Advertising costs.
Fixed / Selling cost
10. Microchips used in producing calculators.
Variable / Manufacturing / Direct cost
11. Shipping costs on merchandise sold.
Variable / Selling cost
12. Magazine subscriptions, factory lunchroom.
Fixed / Manufacturing / Indirect cost
13. Thread in a garment factory.
Variable / Manufacturing / Direct cost
14. Billing costs.
Fixed / Administrative cost
15. Executive life insurance.
Fixed / Administrative cost
16. Ink used in textbook production.
Variable / Manufacturing / Direct cost
17. Fringe benefits, assembly-line workers.
Fixed / Manufacturing / Indirect cost
18. Yarn used in sweater production.
Variable / Manufacturing / Direct cost
19. Wages of receptionist, executive offices.
Fixed / Administrative cost
Explanation:
In various organizations, costs are classified differently. Some classify costs according to their functions, nature, and behavior. In manufacturing organizations, the attribution of costs to the products is very important in determining the costs and prices of such products. This implies that some costs do not directly reflect on the product's per unit cost. Such costs are not considered in determining the cost of a product. An example is the salary expense of an administrative officer. The work of this officer only impacts the smooth running of the organization, and not the production of goods and services.
explain consumer credit discrimination and three types of consumer credit discrimination?
The Equal Credit Opportunity Act (ECOA) makes it illegal for a creditor to discriminate against you in any aspect of a credit transaction on the basis of your race, color, religion, national origin, sex or marital status, your age, and if you receive income from a public assistance program.
What are three types of consumer credit discrimination?They are:
Overt Discrimination.Disparate Treatment.Disparate Impact.hope this help!
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory900 Materials costs$ 13,000 Conversion costs$ 5,100 Percent complete with respect to materials75% Percent complete with respect to conversion20% Units started into production during the month9,600 Units transferred to the next department during the month8,500 Materials costs added during the month$ 172,100 Conversion costs added during the month$ 242,100 Ending work in process inventory: Units in ending work in process inventory2,000 Percent complete with respect to materials90% Percent complete with respect to conversion30% The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
$17.97 per unit
Explanation:
Using weighted average method, Equivalent units = Units that are completed during the period + Equivalent units in process at the end of period.
Equivalent units = 8,500 + 2,000*90%
Equivalent units = 8,500 + 1,800
Equivalent units = 10,300
Cost per equivalent unit for materials = (Beginning costs + Current costs) / Equivalent units
Cost per equivalent unit for materials = ($13,000 + $172,100) / 10,300 units
Cost per equivalent unit for materials = $185,100 / 10,300 units
Cost per equivalent unit for materials = $17.97 per unit
MillingCustomizing Machine-hours17,00013,000 Direct labor-hours2,0005,000 Total fixed manufacturing overhead cost$119,000$42,000 Variable manufacturing overhead per machine-hour$ 1.60 Variable manufacturing overhead per direct labor-hour $ 4.30 During the current month the company started and finished Job A492. The following data were recorded for this job: Job A492:MillingCustomizing Machine-hours9020 Direct labor-hours2050 The amount of overhead applied in the Milling Department to Job A492 is closest to:
Answer:
$774
Explanation:
Calculation for the amount of overhead applied in the Milling Department to Job A492
First step is to calculate for the Milling Department overhead cost using this formula
Milling Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)
Let plug in the formula
Milling Department overhead cost = $119,000 + ($1.60 per machine-hour × 17,000 machine-hours)
Milling Department overhead cost == $119,000 +$27,200
Milling Department overhead cost = $146,200
Second step is to calculate for the Predetermined overhead rate using this formula
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred
Let plug in the formula
Predetermined overhead rate = $146,200 ÷ 17,000 machine-hours
Predetermined overhead rate = $8.60 per machine-hour
Last step is to calculate for the amount of overhead applied in the Milling Department to Job A492 using this formula
Overhead applied=Predetermined overhead rate × Amount of the allocation base that was incurred by the job
Overhead applied = $8.60 per machine-hour × 90 machine-hours
Overhead applied= $774
Therefore The amount of overhead applied in the Milling Department to Job A492 is closest to: $774
Two power plants provide power to Chapel Hill residents: plant UNC and plant Duke. Both plants burn coal to produce electricity, and consequently produce smog as a by-product. The total benefit of smog abatement to Chapel Hill is 100(xU + xD). The UNC power plant could reduce its smog at a total cost of:
cU (xU )= 5x^2V
where xU indicates the total number of units of smog abated by UNC.
The Duke plant is slightly less efficient, and its total cost of reducing smog by is:
cD(xD)= 7x^2D+ 10xD
Required:
Calculate the socially efficient levels of abatement for each power plant.
Answer:
a. The socially efficient levels of abatement for UNC power plant is 10.
Explanation:
Note: See the attached Microsoft word file for the calculations of the anwers above.
What departmentalization bases are likely being used at HP?
Answer:
by function and product.
Explanation:
As we know that HP is dealing with computers, laptops and it's peripherals. Also, it's service is good and most of its customers are happy. The range of its products lies from low to high so that everyone could afford it.
The department bases that are used in HP are function and product. Here function denotes sales, marketing, human resources, finance, accounting department while products are a computer and it's peripheral devices. These two things are important for the survival of the company without which the company is not able to generate the profit.
Here are four industries and four forecasts for the macroeconomy.
Industries: housing construction, health care, gold mining, steel production
Economic Forecasts:
Deep recession: falling inflation, falling interest rates, falling GDP.
Superheated economy: rapidly rising GDP, increasing inflation and interest rates.
Healthy expansion: rising GDP, mild inflation, low unemployment.
Stagflation: falling GDP, high inflation.
Choose the industry that you would expect to perform best in each scenario.
Economic Forecasts
Industries
Deep recession Gold mining Superheated economy Housing construction Healthy expansion Health care Stagflation Steel production
Answer:
Deep Recession - HEALTH CARE
Healthcare are not really affected by the economic cycle because humans will always need healthcare. Even in a deep recession therefore, Health Care would still thrive.
Superheated Economy - STEEL PRODUCTION
Steel production benefits from a superheated economy because more steel would be needed for production and building projects and it will therefore be in high demand making this industry quite lucrative in a Superheated economy.
Healthy Expansion - HOUSING CONSTRUCTION
Mild inflation means mild interest rates as well and with a rising GDP and low inflation, people are able to get more loans for construction and so Housing construction would do best in such an economy.
Stagflation - GOLD MINING
In such an economy where inflation is high and probably rising, gold and other precious minerals like silver tend to do well because they are considered safe haven assets in that they will increase in value when there is inflation but rarely fall past a certain value when there isn't.
Q. Which of the following corporate actions may affect the proportional ownership of existing equity investors?
A. Stock split
B. Stock dividend
C. Share repurchase
Answer:
C. Share repurchase
Explanation:
The share repurchase is the company's action of buying back a percentage or all the shares it had previously sold to the public. In share repurchase, a company buys it owns shares from the marketplace. Share repurchase increases a company's stake in its equity.
Share repurchase reduces the outstanding share in the market while increasing its stake. This action alters the proportion of ownership in the company.
Stock dividends are profits to be distributed to shareholders. A stock split is usually proportionate to shares held; hence doe not affect the overall propositions of ownership.
Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 48,000 direct labor-hours, total fixed manufacturing overhead cost of $307,200, and a variable manufacturing overhead rate of $2.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours 300 Direct materials $ 600 Direct labor cost $ 5,500 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.)
Answer:
Selling price= $10,632
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (307,200/48,000) + 2.8
Predetermined manufacturing overhead rate= $9.2 per direct labor hour
Job X941:
Total direct labor-hours 300
Direct materials $ 600
Direct labor cost $ 5,500
Now, we can determine the total cost of Job X941:
Total cost= 600 + 5,500 + 300*9.2
Total cost= $8,860
Finally, the selling price:
Selling price= 8,860*1.2
Selling price= $10,632
Why is career success dependent upon an individual's ability to develop and apply their diversity consciousness?
Answer:
Career success is based on ones ability to recognize and apply diversity consciousness because one is able to associate well with his/her colleagues.
Explanation:
Revise the following statements to make them more positive and courteous.
1. Construction on your building is at a standstill because the contractor is unable to pour foots until the soil is no longer soggy.
2. A passport cannot be issued until an application is completed an a recent photo is included.
3. Your message of April 1 claims that the blade in your food processor malfunctioned. Although you apparently failed to read the operator's manual, we are sending you a replacement blade PLUS another manual. Next time read carefully so that you will know how to attach this blade.
4. Customers are ineligible for the 25 percent discount if they fail to provide the discount code at the time of the purchase.
5. As team leader, you apparently failed to remember that you have already assigned me two gigantic and complex research task, and now you have dumped another big job on me- one that i can't possibly begin until after I have finished the other two jobs.
6. We regret to announce that we can offer the 50 perfect discount only to the first 25 buyers, so act quickly!
Answer:
Statement Revision for positive and courteous meanings:
1. Work will resume on the building construction as soon as the soil is dry.
2. Please, fill the application and attach a recent photo for the issuance of a passport.
3. We are sending you a replacement blade plus its installation manual.
4. Please, provide the discount code in order to access the 25 percent discount.
5. I will commence this new assignment immediately after I have completed the previous two research tasks.
6. The first 25 customers will enjoy a 50 percent discount.
Explanation:
After the revision of the above statements, they sound more positive and courteous. Moreover, they have been shortened to eliminate irrelevant phrases.
Use the sample data below to test the hypotheses
:
: Not all population proportions are the same
Populations
Response 1 2 3
Yes 150 150 95
No 100 150 105
The provided sample data can be used to test the hypotheses about the population proportions, but we would need additional information to perform the chi-squared test and draw a definitive conclusion.
To test the hypotheses that not all population proportions are the same using the given sample data, we can perform a hypothesis test for proportions.
Step 1: Formulate the null and alternative hypotheses:
- Null hypothesis (H0): The population proportions are the same for all three populations.
- Alternative hypothesis (H1): The population proportions are not the same for all three populations.
Step 2: Choose a significance level (α):
The significance level is the threshold for determining if the results are statistically significant. Let's assume a significance level of α = 0.05, which is a common choice.
Step 3: Calculate the test statistic and p-value:
We can use a chi-squared test for independence to compare the observed frequencies with the expected frequencies under the null hypothesis. This test will help us determine if there is a significant difference in the proportions.
Step 4: Make a decision:
If the p-value is less than the significance level (α), we reject the null hypothesis and conclude that there is evidence to suggest that the population proportions are not the same for all three populations. If the p-value is greater than α, we fail to reject the null hypothesis and do not have enough evidence to suggest a difference in population proportions.
Note: To perform the chi-squared test, we need to have the observed frequencies and expected frequencies. The observed frequencies are given in the sample data, but we would need additional information to calculate the expected frequencies.
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An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.6%. Bond C pays a 11% annual coupon, while Bond Z is a zero coupon bond.
a. Assuming that the yield to maturity of each bond remains at 8.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity.
b. Plot the time path of prices for each bond.
Answer:
a)
YTM of a coupon paying bond:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM of a zero coupon bond:
YTM = (face value / market value)⁻¹/ⁿ - 1
Bond C:
bond price at 4 years to maturity
0.086 = {110 + [(1,000 - MV)/4]} / [(1,000 + MV)/2]
0.086 x [(1,000 + MV)/2] = 110 + [(1,000 - MV)/4]
0.086 x (500 + 0.5MV) = 110 + 250 - 0.25MV
43 + 0.043MV = 360 - 0.25MV
0.293MV = 317
MV = 317 / 0.293 = $1,081.91
bond price at 3 years to maturity
0.086 = {110 + [(1,000 - MV)/3]} / [(1,000 + MV)/2]
0.086 x [(1,000 + MV)/2] = 110 + [(1,000 - MV)/3]
0.086 x (500 + 0.5MV) = 110 + 333.33 - 0.333MV
43 + 0.043MV = 443.33 - 0.333MV
0.376MV = 400.33
MV = 400.33 / 0.376 = $1,064.71
bond price at 2 years to maturity
0.086 = {110 + [(1,000 - MV)/2]} / [(1,000 + MV)/2]
0.086 x [(1,000 + MV)/2] = 110 + [(1,000 - MV)/2]
0.086 x (500 + 0.5MV) = 110 + 500 - 0.5MV
43 + 0.043MV = 610 - 0.5MV
0.543MV = 567
MV = 567 / 0.543 = $1,044.20
bond price at 1 year to maturity
0.086 = {110 + [(1,000 - MV)/1]} / [(1,000 + MV)/2]
0.086 x [(1,000 + MV)/2] = 110 + (1,000 - MV)
0.086 x (500 + 0.5MV) = 110 + 1,000 - MV
43 + 0.043MV = 1,110 - MV
1.043MV = 1,067
MV = 1,067 / 1.043 = $1,023.01
Bond Z:
bond price at 4 years to maturity
0.086 = (1,000 / MV)⁻¹/⁴ - 1
1.086 = (1,000 / MV)⁻¹/⁴
⁻¹/⁴√1.086 = ⁻¹/⁴√(1,000 / MV)⁻¹/⁴
0.7189 = 1,000 / MV
MV = 1,000 / 0.7189 = $1,390.97
bond price at 3 years to maturity
0.086 = (1,000 / MV)⁻¹/³ - 1
1.086 = (1,000 / MV)⁻¹/³
⁻¹/³√1.086 = ⁻¹/³√(1,000 / MV)⁻¹/³
0.7807 = 1,000 / MV
MV = 1,000 / 0.7807 = $1,280.82
bond price at 2 years to maturity
0.086 = (1,000 / MV)⁻¹/² - 1
1.086 = (1,000 / MV)⁻¹/²
⁻¹/²√1.086 = ⁻¹/²√(1,000 / MV)⁻¹/²
0.8479 = 1,000 / MV
MV = 1,000 / 0.8479 = $1,179.40
bond price at 1 year to maturity
0.086 = (1,000 / MV)⁻¹ - 1
1.086 = (1,000 / MV)⁻¹
⁻¹√1.086 = ⁻¹√(1,000 / MV)⁻¹
0.9208 = 1,000 / MV
MV = 1,000 / 0.9208 = $1,086
b) I do not have any drawing tools here, but the prices are:
years to maturity price of bond C price of bond Z
4 $1,081.91 $1,390.97
3 $1,064.71 $1,280.82
2 $1,044.20 $1,179.40
1 $1,023.01 $1,086
Ash Company reported cost of goods sold of $875,000 for the year. Ash has also provided the following information: Ash prepares its statement of cash flows using the indirect method Inventory Accounts Payable Balance - beginning of year 69,000 107,000 balance - end of year 83,000 92,000 What amount of cost of goods sold should Ash report as a supplement disclosure of cash flow information
A. 14,000
B. 904,000
C. 889,000
D. 15,000
Answer:
B. 904,000
Explanation:
Ash Company should report as supplemental information the amount of cash paid to suppliers = cost of goods sold + increase in inventory + decrease in accounts payable
cash paid to suppliers = $875,000 + ($83,000 - $69,000) + ($107,000 - $92,000) = $875,000 + $14,000 + $15,000 = $904,000
Apparently Ash Company buys and then resells goods, which means that one of its largest cash outflows should be suppliers. That is why it should provide supplemental information about cash paid to them.
a. If buiness leaders invest a total of $10 billion of accumulated cash, what is the maximum expected change in GDP if Islandia's marginal propensity to consume is 0.6?
Answer: $22.5 billion
Explanation:
The change in GDP will be determined by the Multiplier.
Change in GDP = Multiplier * Increase in Investment
Multiplier = 1 / ( 1 - Marginal propensity to Consume)
= 1 / ( 1 - 0.6)
= 2.5
Change in GDP = 10 * 2.25
= $22.5 billion
The maximum expected change in GDP should be $22.5 billion.
Calculation of the change in GDP:We know that
Change in GDP = Multiplier * Increase in Investment
Also,
Multiplier = 1 / ( 1 - Marginal propensity to Consume)
So,
= 1 / ( 1 - 0.6)
= 2.5
now
Change in GDP = 10 * 2.25
= $22.5 billion
hence, The maximum expected change in GDP should be $22.5 billion.
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Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2020, the following estimates were made for the year.
Department
D E K
Manufacturing overhead $990,000 $1,750,000 $1,080,000
Direct labor costs $1,237,500 $1,875,000 $675,000
Direct labor hours 150,000 125,000 60,000
Machine hours 600,000 750,000 120,000
During January, the job cost sheets showed the following costs and production data.
Department
D E K
Direct materials used $210,000 $189,000 $117,000
Direct labor costs $180,000 $165,000 $56,250
Manufacturing overhead incurred $148,500 $168,000 $118,500
Direct labor hours 12,000 16,500 5,250
Machine hours 51,000 67,500 10,410
(a) Compute the predetermined overhead rate for each department. (Round answers to 2 decimal places, e.g. 12.50 or 12.50%.)
Overhead rate
Department D %
Department E $ per direct labor hour
Department K $ per machine hour
(b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Answer:
See solution below
Explanation:
• Predetermined overhead rate for Department D
= Estimated Manufacturing overhead / Estimated Direct labor cost
Manufacturing overhead = 990,000
Direct labor cost = 1,237,500
= (990,000/1,237,500) × 100
= 0.8 × 100
= 80%
• Predetermined overhead rate for department E
= Estimated Manufacturing overheads/Estimated Direct labor hours
Manufacturing overheads = 1,750,000
Direct labor hours = 125,000
= 1,750,000/125,000
= $14 per labor hour
• Predetermined overhead rate for department K
= Estimated Manufacturing overheads/Estimated Machine hours
Manufacturing overheads = 1,080,000
Machine hours = 120,000
= 1,080,000/120,000
= $9 per machine hour
Mr Ashok has a company, and has an option to issue different types of preference shares. State all the types preference shares a company can issue.
The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
a. Complete an amortization schedule for a $29,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent.
Beginning Repayment Ending
Year Balance Payment Interest of Principal Balance
1 $ $ $ $ $
2 $ $ $ $ $
3 $ $ $ $ $
b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places.
% Interest % Principal
Year 1: % %
Year 2: % %
Year 3: % %
c. Why do these percentages change over time?
a. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines.
b. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance declines.
c. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance increases.
d. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance increases.
e. These percentages do not change over time; interest and principal are each a constant percentage of the total payment.
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties increases by 4%, the quantity of frizzles sold increases by 5% and the quantity of mookies sold decreases by 4%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between penguin patties and frizzles, and then between penguin patties and mookies. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.
Relative to penguin patties
Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties
Fizzles
Mookies
Answer:
cross price elasticity formula:
Exy = % change in quantity demanded of X / % change in price of Y
E(penguin patties, frizzles) = 0.05 / 0.04 = 1.25 ⇒ SUBSTITUTE GOODS
E(penguin patties, mookies) = -0.04 / 0.04 = -1 ⇒ COMPLEMENTARY GOODS
When two goods have a positive cross price elasticity, it means that they are substitute and an increase in the price of one of them will result in an increase in the quantity demanded of the substitute one. When two goods have a negative cross price elasticity, it means that they are complements, meaning that an increase in the price of one good will result in the decrease of the quantity demanded of both goods.
The company should market penguin patties along with mookies since they are complements.
Which of these statements is TRUE of complementary products?
A) An increase in demand for one will cause a decreased demand for the other.
B) An increase in the price of one will cause a decrease in the price of the other.
C) An increased supply of one product will result in a decreased supply of the other.
D) An increase in the demand for one will usually result in an increased demand for the other.
Answer:
D) An increase in the demand for one will usually result in an increased demand for the other.
Explanation:
Complementary goods are products used together. They are sold separately but add value to one another. Complementary goods will usually be a set of two or more goods that gives the consumer a higher utility when used together. Examples include Petrol and car, Tennis balls and tennis rackets, and DVD player and DVD disks to play in it.
Complementary goods experience joint demand. Should the demand for one complimentary goods increase, demand for the other product or service increases automatically.
To create meaningful on social media content that will resonate with audiences, businesses engage in ______________, which is the process of “hearing” conversations throughout the Internet to find out what your audience wants.
a.
Reputation Management
b.
Social Listening
c.
Content Marketing
d.
Engagement Metrics
Answer:
I think the answer ought to be B. Social listening
Explanation:
By definition social listening is Social media measurement, 'social media monitoring' or social listening is a way of computing popularity of a brand or company by extracting information from social media channels. So that seems to be the best fit.
Your best friend wants to borrow $2000 from you today for an emergency purchase they need to make that requires a cash payment. They promise to pay you back $1000 in 1 year (i.e. 12 months) and then pay you $1100 in two years (i.e. in 24 months). You would have to remove the money from your stock investment account which is earning on average a return of 5% (i.e. the effective yearly interest rate you are getting on your money is 0.05).
Required:
a. Is this a fair deal for you? Justify your answer with an engineering economics analysis and discussion of the situation by calculating the Net Present Value (NPV) for the scenario.
b. Draw a Cash Flow Diagram for this situation.
Answer:
a. It is not a fair deal for me.
The question is how much is $1,000 today when received in 12 months' time from now. The present value of $1,000 at 5% effective interest rate is $952 ($1,000 * 0.952). The other repayment of $1,100 in 2 years' time from now is worth $997.70 today at the 5% effective interest rate. This implies that my friend is repaying me $1,949.70 in present value terms.
For friendship sake, I may lend her the money, but in economic analysis terms, the NPV value will yield a negative value of $50.30 ($2,000 - $1,949.70). My friend is not actually paying me back the amount I would lend to her. She is paying me less than I actually would lend to her.
b. Cash Flow Diagram:
Year 1 Year 2
F1 F2
$1,000 $1,100 (Inflows)
Fo⇵.................⇵.......................⇵...........................⇵n period
Year 0
$2,000 (outflows)
Explanation:
The cash flow diagram for this loan is the graphical representation of the timing of the cash flows with a clear marking of the repayments made by my best friend in two instalments and the $2,000 that I lent to her. This cash flow diagram presents the flow of cash as arrows on a timeline scaled to the magnitude of the cash flow, where outflows are down arrows and inflows are up arrows.
The Net present value (NPV) of this loan shows the difference between the present value of repayments by my best friend and the present value of $2,000 that I lent to her over a period of 2 years. To obtain this difference, the present values of cash inflows of $1,000 in a year's time and $1,100 in two years' time are determined using the discount factor table based on the given interest rate of 5%.
Use the distinction between the characteristics of private and public goods to determine whether the following should be produced through the market system or provided by government:
a. French fries
b. Airport screening
c. Court systems
d. Mail delivery
e. Medical care
Answer:
a.French fries: Market system
b. Airport screening: Government
c. Court systems: Government
d. Mail delivery: Combined market and government
e. Medical care: Combined market and government
Explanation:
a.French fries: Market system
b. Airport screening: Government
c. Court systems: Government
d. Mail delivery: Combined market and government
e. Medical care: Combined market and government
In Market Economic system in accounting, the means of production as well as exchange, in the market system is base on private ownership, and can be said to be a free market. in these Economy the consumer are to be always at alert in oder not to be a fraud victim.
Government system can also be regarded as command system, the factors of production such as land is attributed to the government.
However the difference between them could be in term of factors of production, the ways in which price is been determined.
