To maximize profit, a firm should hire additional units of a specific resource (such as labor) as long as each successive unit adds more to the firm's total revenue than it adds to the firm's total cost. The statements are true.
This is based on the principle of marginal analysis, which states that firms should continue to employ resources as long as the marginal revenue product (MRP) exceeds the marginal resource cost (MRC). The MRP represents the additional revenue generated by each additional unit of the resource, while the MRC represents the additional cost incurred by hiring each additional unit. As long as the MRP is greater than the MRC, the firm is generating additional profit by employing more units of the resource.
In the context of labor, the MRC of labor is equal to the market wage rate. The firm will hire workers up to the point at which the market wage rate is equal to the MRP. At this point, the firm is effectively balancing the cost of labor with the additional revenue generated by each additional worker, ensuring that hiring more workers would not result in a decrease in profit.
Therefore, the firm will hire additional units of a resource up to the point at which that resource's MRP is equal to its MRC, which in the case of labor means hiring workers up to the point where the market wage rate is equal to the MRP.
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An owner can lease her building for \( \$ 140,000 \) per year for three years. The explicit cost of maintaining the building is \( \$ 45,000 \), and the implicit cost is \( \$ 60,000 \). All revenues
The profit that the owner will earn from leasing the building for three years is $105,000. This is the total revenue minus the total explicit and implicit costs of leasing the building. The owner should consider this profit when making decisions about whether to lease the building or pursue other business opportunities.
The explicit and implicit costs of leasing a building for three years can be calculated using the given information. Explicit costs refer to costs that are easy to calculate, such as rent or maintenance costs, while implicit costs refer to costs that are more difficult to calculate, such as the opportunity cost of a business owner's time or the value of unused resources. The total cost of leasing the building for three years can be calculated as follows: Explicit cost = $45,000 per year × 3 years = $135,000 Implicit cost = $60,000 per year × 3 years = $180,000 Total cost = Explicit cost + Implicit cost Total cost = $135,000 + $180,000 Total cost = $315,000The total revenue that will be generated from leasing the building for three years can be calculated by multiplying the annual rent by the number of years the building will be leased: Total revenue = $140,000 per year × 3 years Total revenue = $420,000.
The profit that will be generated from leasing the building for three years can be calculated by subtracting the total cost from the total revenue: Profit = Total revenue - Total cost Profit = $420,000 - $315,000Profit = $105,000
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9 Rosemary Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures two tennis rackets-the Standard and the Deluxe-that are widely used in amateur play. Selected information on the rackets is given below: 2x 100,000 Standard Selling price per racket Variable expenses per racket: Production Sales commission Total Fixed Cost (for Standard and Deluxe) A. B. C. D. E. 2.135 units 1,600 units 1,067 units S 3,200 units 1,829 units S 100.00 $ 35.00 S 5% Deluxe 180.00 (10) SD 72.00 10% of price All sales are made through the company's own retail outlets. The company plans to produce and sell twice as many Standard as Deluxe next month. How many units of the Standard model does the company have to sell to break even? (Choose the closest answer) 100 (2x) - 35.05 (2x) + 180x-725 919 $ 192,000 70 72 (50) DX " 1039 863
Calculation of breakeven point is shown below; Please note that total contribution for Standard and Deluxe are found as follows:
= [tex]S100 - S35 = S65[/tex]
Contribution for Deluxe racket
= Selling price per racket - Variable expenses per racket
Contribution for Deluxe racket
= S180 - S10 = S170So the total contribution is 2(65) + 1,600(0.05) + 2(170) + 1,829(0.10) = S919
The equation to solve is: Total revenue.
= Total cost Total revenue
=[tex]100x + 2(192,000)[/tex] Total cost
Fixed cost + Variable cost Tota
[tex]l cost = 2(3,200 + 5% * 192,000) + 1,829(0.10) + 1,067(72) + (x/2)(100 + 35)Total cost = S259,174 + 81.45x + 52,164 + 76,824 + 67.5xTotal cost = S408,162 + 148.95x100x + 384,000 = 408,162 + 148.95x148.95x - 100x = 23,162x = 155[/tex]
Standard racket units to break even.
= 100(2) + 155/2 = 275
Answer
=275.
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At an open house a listing broker greets a customer. The broker can do all of the following EXCEPT
A) Answer general, publicly advertised questions about the property
B) Be truthful when asked about property defects
C) Negotiate sale terms with the customer
D) Allow them to walk around the property
At an open house, a listing broker greets a customer. The broker can do all of the following EXCEPT negotiate sale terms with the customer. The correct option is C.
A listing broker at an open house can answer general, publicly advertised questions about the property (option A), be truthful when asked about property defects (option B), and allow potential customers to walk around the property (option D). However, negotiating sale terms with the customer is typically the responsibility of the buyer's agent or the seller's agent, rather than the listing broker. The listing broker's main role is to market the property, provide information, and facilitate potential buyers' viewing of the property.
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Multiple Choice Question
Which mode of transportation has costs that come closest to pipeline costs?
Rail
Motor
Water
Air
None of the above
When considering the costs associated with transportation, water transportation is the mode that comes closest to pipeline costs.
The mode of transportation that has costs that come closest to pipeline costs is water transportation.
Water transportation, such as shipping or barges, can be a cost-effective method for transporting goods over long distances.
Pipelines are also a cost-effective means of transportation for certain types of products, such as oil or gas. Both water transportation and pipelines can transport large quantities of goods at relatively low costs compared to other modes of transportation.
For example, when transporting large amounts of oil over a long distance, using a pipeline can be more cost-effective than other modes of transportation, such as rail or air.
Similarly, shipping goods by water can be an economical choice, especially for bulky or heavy items that may be expensive to transport by other means.
Therefore, when considering the costs associated with transportation, water transportation is the mode that comes closest to pipeline costs.
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Hilliard Company budgeted the following transactions for April: Sales (75% collected in month of sale) $200,000 Cash operating expenses $105,000 Cash purchases of investments $75,000 Cash payment of debt $15,000 Depreciation expense on assets $12,000 The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. What is the amount of the cash surplus or shortage? O $20,000 shortage O $40,000 shortage O $40,000 surplus O There is no surplus or shortage.
The amount of the cash shortage or surplus can be determined by subtracting the total cash outflows from the total cash inflows. There is a cash shortage of $7000 None of the options is correct.
To calculate the cash surplus or shortage of Hilliard Company, we need to calculate the total cash inflows and outflows. Here are the steps to determine it:
First, we need to calculate the total cash inflows of the company. The total cash inflows equal the total sales for the month (75% collected in the same month) plus any investments sold. Given the information:
S = $200,000 I = $0 (no investments sold)
Total cash inflows = S x % Collected in the same month = $200,000 x 75% = $150,000
Total cash inflows = $150,0002.
Next, we need to calculate the total cash outflows of the company. The total cash outflows equal the sum of all cash operating expenses, cash purchases of investments, cash payment of debts, and depreciation expense on assets. Given the information:
C = $105,000
I = $75,000
PD = $15,000
D = $12,000
Total cash outflows = C + I + PD + D = $105,000 + $75,000 + $15,000 + $12,000
= $207,000
Total cash outflows = $207,0003.
Given the information:
Beginning cash balance = $50,000
Desired ending cash balance = $25,000
Total cash inflows = $150,000
Total cash outflows = $207,000
Cash surplus or shortage = Beginning cash balance + Total cash inflows - Total cash outflows - Desired ending cash balance
$50,000 + $150,000 - $207,000 - $25,000
= -$32,000
Total cash disbursed:
$105,000 + $75,000 + $15,000 + $12,000 = $207,000
Cash surplus or shortage: $200,000 - $207,000
= $ - 7,000
There is a $7,000 cash shortage.
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which of the following statements explain(s) how the accounting equation applies to businesses? (check all that apply.)multiple select question.the equation applies to all transactions and events.the equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.the relation of assets, liabilities and equity is reflected in the equation.the equation states that assets
The following statements explain how the accounting equation applies to businesses , statements 1, 2, and 3 are all correct explanations :
1. The equation applies to all transactions and events.
2. The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.
3. The relation of assets, liabilities, and equity is reflected in the equation.
Therefore, statements 1, 2, and 3 are all correct explanations of how the accounting equation applies to businesses.
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The marginal cost of an additional worker is always equal to the cost from the first worker hired. always equal to the benefit of hiring the additional worker. the additional cost of hiring one more w
The marginal cost of hiring an additional worker refers to the additional cost incurred when adding one more worker to the workforce. It is not necessarily equal to the cost of hiring the first worker or the benefit of hiring the additional worker.
In most cases, the marginal cost of hiring an additional worker is expected to increase as the workforce expands. This is because as the number of workers increases, certain costs associated with labor can rise, such as wages, benefits, training expenses, and workspace requirements.
The specific relationship between the marginal cost of labor and the number of workers hired can vary depending on various factors, such as economies of scale, labor productivity, and the nature of the production process.
Therefore, the statement "the additional cost of hiring one more worker" is generally accurate in describing the marginal cost of labor. It captures the idea that each additional worker hired contributes to an increase in costs, but it may not necessarily be equal to the cost of hiring the first worker or the benefit derived from hiring the additional worker
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The marginal cost of hiring an additional worker is always higher than the wage because it includes the increased wages for all previous workers. This is due to the higher wage rate required to hire one more worker.
Explanation:The marginal cost of hiring an additional worker is always greater than the wage. This is because when a firm hires another worker, they not only have to pay that worker's wage, but also the higher wage rate for all the previous hires. The cost of hiring one more worker is therefore the additional cost of their wage plus the increased wages for all previous workers.
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Read the case and answer all the questions that follow.
Roberto wrote the following email to Jessica Li, a customer who had requested a refund.
(1) SUBJECT: Ticket for claim #82492 is resolved; Damaged product is not the responsibility of the vendor
(2) Dear valued customer,
(3) Upon receiving your complaint and description of a damaged product, an investigation was conducted to identify the source of the problem. All products from that particular batch underwent stringent quality controls. Any damage that had occurred must have occurred during transportation by a third-party vendor or by the customer after opening the package. We regrettably cannot accept any responsibility for any damages.
(4) Please now that we value you as a customer. As a token of appreciation for your loyalty, we have included a 10 percent off coupon on your next purchase of more than $100.
(5) Feel free to reach out with any questions.
Roberto Jimenez
Customer Service Representative
Analyze the email above and identify the primary problem with paragraphs (1), (2), (3), (4) and (5) of the email. Revise and rewrite the email to make it more effective.
The primary problem in the email from Roberto Jimenez, a customer service representative, to Jessica Li, a customer who had requested a refund is its tone.
The tone of the email comes across as defensive and unempathetic to the issue the customer raised. This could affect customer loyalty and discourage her from purchasing from the company in the future. Besides, the email is not well-organized and doesn't follow a logical sequence.
To make the email more effective, it needs a proper format and tone. The email can be revised as follows: Subject: We are sorry for the inconvenience and are committed to providing excellent service. Dear Valued Customer, We are sorry to hear about the issue you had with the product you received from us.
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Pre-presentation planning includes researching the following except: Competitors Company Local area Property Question 21 (1 point) Which of the following is NOT attributed to need periods? Short cance
Pre-presentation planning involves conducting thorough research on various aspects related to the presentation. This includes researching competitors, the company you are presenting to, the local area, and property-related details.
When researching for a presentation, it is essential to gather information about competitors, as this allows you to understand the market landscape, identify potential challenges, and differentiate your own offering. Researching the company you are presenting to is crucial, as it helps in tailoring your presentation to their needs, goals, and values. Learning about the local area can provide insights into the target audience, cultural norms, and regional trends that may be relevant to the presentation.
However, one aspect that may not be directly attributed to pre-presentation planning is the need to research "short cance." It is unclear what "short cance" refers to, as it is not a commonly used term in the context of presentations or research. Therefore, it is advisable to focus on the other areas mentioned above, which are more relevant and can contribute to a comprehensive and well-prepared presentation.
In conclusion, pre-presentation planning involves conducting thorough research on various aspects related to the presentation. This includes researching competitors, the company you are presenting to, the local area, and property-related details.
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Congratulations! You have been selected as the project manager for the Green Computing Research Project. The company’s CIO, Ben, is the project sponsor, and Ito is the program manager for the larger Environmental Technologies Program. Now you need to put together your project team and get to work on this high-visibility project. You will work with Ben to hand-pick your team. Ben had already worked with the HR department to advertise team openings internally and outside the company. Ben also used his personal contacts to let people know about this important project. In addition, you are encouraged to use outside consultants and other resources as appropriate. Initial estimates suggest that about $300,000 of the funds budgeted for this project will go to internal staffing, and the rest will go to outside sources. The main products you will create are a series of research reports—one for each green computing technology listed earlier and a final report that includes all data. You will also produce formal project proposals for at least four recommendations to implement some of these technologies. Ben suggested that the team should develop at least 20 different project ideas and then recommend the top four based on extensive analysis. Ben thought that some type of decision support model would make sense to help collect and analyze the project ideas. You are expected to tap into resources that are available from the Environmental Technologies Program, so you need to include some of those resources in your project budget. Ben mentioned that some research had already been done on increasing the use of telecommuting. Ben also showed you examples of what he considered good research reports. You notice that his examples are very professional, with plenty of charts and references; most are 20 to 30 pages and are single-spaced. Ben has also shown you examples of good formal project proposals for We Are Big, Inc. These proposals are quite detailed as well; they often reference other research and include a detailed business case.
It appears to be an introductory paragraph describing the role of the project manager, the project sponsor, and the objectives of the Green Computing Research Project.
The given text provides an overview of the Green Computing Research Project and the roles of key individuals involved. The project manager has been selected and will be responsible for assembling the project team and leading the project. The project sponsor is the company's CIO, Ben, who has been actively involved in recruiting team members and allocating project funds. The program manager for the Environmental Technologies Program, Ito, is also mentioned, indicating a larger program under which the project falls.
The text highlights the main products of the project, which include a series of research reports for various green computing technologies and formal project proposals for implementing selected technologies. It is mentioned that the team should develop at least 20 project ideas and use a decision support model for analysis. The project budget includes funds for internal staffing and outside sources, with some resources expected to be leveraged from the Environmental Technologies Program.
Additionally, the text mentions previous research on telecommuting and examples of professional research reports and detailed project proposals. These examples serve as references for the project team to produce high-quality deliverables.
Overall, the given text sets the stage for the Green Computing Research Project, outlining its objectives, stakeholders, resource allocation, and expected deliverables.
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On January 1, Payson Inc. had a retained earnings balance of $60,000. During the year, Payson reported net income of $34,000 and paid cash dividends of $21,000. Calculate the retained earnings balance at its December 31 year-end. Ending retained eamings < Prey 7 of 7 !! Next
The ending retained earnings balance for Payson Inc. at its December 31 year-end is $73,000.
Retained Earnings is an amount in the balance sheet which shows the cumulative profits earned over the years, minus the cumulative dividends paid out to shareholders. The formula for calculating retained earnings is:
Beginning Retained Earnings + Net Income - Dividends Paid = Ending Retained Earnings
Using this formula and the given information, we can calculate the ending retained earnings balance for Payson Inc. at its December 31 year-end.
Beginning Retained Earnings = $60,000, Net Income = $34,000,
Dividends Paid = $21,000$60,000 + $34,000 - $21,000 = $73,000
Therefore, the ending retained earnings balance for Payson Inc. at its December 31 year-end is $73,000.
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A project manager is an expert in planning and managing projects. They develop the plan for the project and keep track to ensure that it is completed on time and within the budget. One skill that is imperative for a project manager to be successful is verbal communication skills. The members of their team must have a clear understanding of their role on the project and how their work contributes to the overall successful completion of the project. This information has to be verbally communicated effectively to the workers by the project managers.
The system development life cycle is made up of planning, analysis, design, development, testing, implementation, and maintenance. The testing phase is important to bring all of the pieces of the project together to work out any issues/bugs or to see if it meets all requirements previously defined. When developing a new system, this is an extremely important phase. Without it, errors could get missed which could lead to a job being performed incorrectly or inappropriately.
Outsourcing is performed when an organization provides a service for another organization that does not wish to perform within the company. Outsourcing is a viable option if it is financially viable. In some instances, it may be cheaper to pay another organization in India or China to perform a service rather than pay team members in-house. It may also be a viable option if there is rapid growth within an organization and they must produce quickly to meet the increased demand.
Post a quality response and post additional thoughts and/or questions
A project manager is an expert in planning and managing projects. The project manager is responsible for developing the project plan and ensuring that it is completed on time and within the budget. Verbal communication skills are essential for a project manager to be successful, as the team members need to have a clear understanding of their role in the project and how their work contributes to the overall successful completion of the project.
The system development life cycle comprises planning, analysis, design, development, testing, implementation, and maintenance. Testing is a critical phase in the development of a new system. It is essential to bring all of the pieces of the project together to work out any issues/bugs or see if it meets all requirements previously defined. Outsourcing is a feasible option if it is financially viable.
In some cases, it may be more cost-effective to pay an organization in India or China to perform a service than to pay in-house team members. It may also be an excellent alternative if there is rapid growth within an organization and they must produce quickly to meet the increased demand.
Therefore, outsourcing can be a useful solution if managed correctly. The above three mentioned points can be summarized in three lines as follows:
Project manager develops plan and keep track to ensure completion on time & within budget. Verbal communication skills are important for a project manager to be successful. Testing is crucial to work out any issues/bugs in a new system. Outsourcing is a feasible option if it is financially viable to the organization.
The project manager is the one responsible for developing the project plan, keeping track of the project, and ensuring that it is completed on time and within the budget. Verbal communication skills are critical for the project manager to be successful as the team members need to have a clear understanding of their role in the project and how their work contributes to the overall successful completion of the project.
Testing is a crucial phase in the development of a new system, and outsourcing can be an excellent option if managed correctly.
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when handling food, you have to be honest about your standards and what is acceptable for serving. if you doubt the freshness or integrity of an ingredient, throw it out. what industry standard does this idea relate to? question 15 options: never break the law. never make it personal. never accept risks. never cut corners.
The concept of discarding questionable ingredients and maintaining honesty about standards aligns with the industry standard of "never cut corners."
The idea of being honest about standards and discarding questionable ingredients relates to the industry standard of "never cut corners."
In the context of handling food, the standard of "never cut corners" emphasizes the importance of maintaining high-quality standards and not taking shortcuts that could compromise food safety, integrity, or freshness. It emphasizes the need to prioritize the well-being of customers by adhering to proper procedures and guidelines.
By being honest about the standards and not compromising on the quality of ingredients, food handlers ensure that only fresh and safe food is served to customers. This helps to maintain the reputation of the establishment, ensure customer satisfaction, and comply with regulations and best practices in the food industry.
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Grady Zebrowski, age 25, just graduated from college, accepted his first job with a $47,000 salary, and is already looking forward to retirement in 40 years. He assumes a 2.9 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can earn a 6 percent rate of return on his investments prior to retirement and a 7 percent rate of return on his investmentspost-retirement to answer the following questions using your financial calculator.
a. Grady wants to replace 90 percent of his current net income. What is his annual need in today's dollars?
b. Using the table Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for taxes, how much does Grady really need per year, in today's dollars?
c. Adjusting for inflation, how much does Grady need per year in future dollars when he begins retirement in 40 years?
d. If he needs this amount for 20 years, how much does he need in total for retirement? (Hint: Use theinflation-adjusted rate of return.)
e. How much does Grady need to save per month to reach his retirement goal assuming he does not receive any employer match on his retirement savings?
Grady's annual need in today's dollars to replace 90 percent of his current net income is $42,300.
To calculate Grady's annual need in today's dollars, we multiply his current salary of $47,000 by 0.9 (to replace 90 percent of his income). This yields an annual need of $42,300. By aiming to replace 90 percent of his current net income, Grady plans to maintain a similar standard of living during retirement. This figure serves as a baseline for determining the funds required to sustain his lifestyle without relying on Social Security benefits. By replacing a portion of his income, Grady aims to account for potential changes in expenses during retirement. It's important to adjust for taxes as well. Assuming an average tax rate of 13 percent when married, we multiply the amount from part (a) by (1 - average tax rate) to obtain an adjusted annual need of $36,759 in today's dollars. This adjustment helps provide a more accurate estimate of the funds Grady requires to support his lifestyle while accounting for potential tax obligations. In summary, Grady's annual need in today's dollars to replace 90 percent of his current net income is $42,300. Adjusting for taxes, his actual annual need amounts to $36,759. These figures serve as a starting point for determining the financial resources he will need to save and invest in order to achieve his retirement goals.
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Questions 7 - 11 refer to the following: ABC Company has set the following standards for the production of one case of Zesty Pretzels: Usage Cost Direct Materials .9 pounds $5 per pound Direct Labor .4 hours $15 per hour Variable Overhead .4 hours $5 per hour Actual information recorded by ABC Company for the month of March is below: • Purchased 7,000 pounds at a cost of $31,500 • Used 5,616 pounds to make 5,200 good units • Paid $32,214 for 2,184 hours of labor. • Actual variable OH costs were $11,600.
11. The variable overhead spending variance for March is: a. $1,400 unfavorable c. $680 unfavorable b. $1,400 favorable d. $680 favorable
12. An unfavorable fixed overhead volume variance would indicate that: a. fewer units were made during the period than had been budgeted b. more units were made during the period than had been budgeted c. fewer labor hours were worked during the period than had been budgeted d. more labor hours were worked during the period than had been budgeted
The given data for March is: Purchased 7,000 pounds at a cost of $31,500Used 5,616 pounds to make 5,200 good units Paid $32,214 for 2,184 hours of labor Actual variable OH costs were $11,600The actual variable OH cost is $11,600.
The standard variable OH cost is $5 per hour. The number of hours is 2184. Thus, the standard cost of variable OH is [tex]2184 × $5 = $10,920[/tex].The variable overhead spending variance is the difference between the actual variable overhead cost incurred and the standard variable overhead cost.
It is calculated as follows: Variable overhead spending variance = Actual variable overhead cost − Standard variable overhead [tex]cost= $11,600 − $10,920= $680[/tex] unfavorable, the variable overhead spending variance for March is [tex]$680[/tex]unfavorable. Thus, the correct option is $[tex]680[/tex] unfavorable.
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Cullumber Limited purchased a machine on account on April 1, 2021, at an invoice price of $381,780. On April 2, it paid $2,190 for delivery of the machine. A one-year, $3,730 insurance policy on the machine was purchased on April 5 . On April 19 , Cullumber paid $8,060 for installation and testing of the machine. The machine was ready for use on April 30. Cullumber estimates the machine's useful life will be five years or 6,107 units with a residual value of $79,190. Assume the machine produces the following numbers of units each year: 976 units in 2021; 1,394 units in 2022; 1,413 units in 2023; 1,225 units in 2024; and 1,099 units in 2025 . Cullumber has a December 31 year end.
Cost of a machine purchased by a company on account on April 1, 2021, at an invoice price of $381,780 is $381,780. It will be added to the capital cost of the machine. This $381,780 includes both the cost of the machine as well as the delivery charges ($2,190) for which the company paid on April 2.
The cost of a one-year insurance policy on the machine is $3,730, which was purchased by Cullumber on April 5. This cost will also be added to the machine's capital cost. The $8,060 paid by Cullumber on April 19 for the installation and testing of the machine is the initial cost of the asset and should be added to the capital cost. The machine is estimated to have a useful life of five years or 6,107 units and a residual value of $79,190. The machine is put into service on April 30th. The company's fiscal year ends on December 31st. Here are the steps for computing depreciation: Step 1: To determine the total number of units the machine will produce in its useful life, add up the yearly units. 976 units + 1,394 units + 1,413 units + 1,225 units + 1,099 units = 6,107 units total units produced.
The initial cost of the asset consists of all expenditures made on the asset until the asset is ready for its intended use. All costs incurred after the asset is prepared for use, such as repairs and maintenance, are expensed as incurred rather than capitalized. The insurance policy, installation and testing costs, and any other expenditures incurred prior to the asset's being ready for use are included in the initial cost. Delivery costs are part of the asset's cost if delivery is required for the asset to be available for its intended use. If the purchaser can pick up the asset and begin using it without incurring additional costs, delivery costs are not included in the asset's cost.
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A company purchased new equipment and provided you with the data for the equipment
Date of purchase = 2-Jan-17
Cost of equipment = $53,000
Salvage value = $3,000
Useful life = 5 years
Depreciation method = Straight line
1. Prepare the depreciation schedule for the equipment
2. Prepare the depreciation journal entry for March 2018
3. Determine the book value of the equipment Dec 31, 2021
4. Assume the company sold the equipment on Dec 31, 2020 and received $18,000 cash. Prepare the journal entry.
Depreciation Schedule for the Equipment:
The depreciation schedule for the equipment, using the straight-line method, is as follows:
Year Depreciation Expense Accumulated Depreciation Book Value
2017 $10,000 $10,000 $43,000
2018 $10,000 $20,000 $33,000
2019 $10,000 $30,000 $23,000
2020 $10,000 $40,000 $13,000
2021 $10,000 $50,000 $3,000
Depreciation Journal Entry for March 2018:
In March 2018, the depreciation expense for the equipment would be $833.33 ($10,000 / 12 months * 10 months). The journal entry to record this depreciation would be as follows:
Debit Depreciation Expense: $833.33
Credit Accumulated Depreciation: $833.33
Book Value of the Equipment on December 31, 2021:
To determine the book value of the equipment on December 31, 2021, we subtract the accumulated depreciation from the initial cost of the equipment. Since the equipment has a useful life of 5 years, the accumulated depreciation after 5 years will be $50,000. Therefore, the book value on December 31, 2021, would be $3,000 ($53,000 - $50,000).
Journal Entry for Sale of Equipment on December 31, 2020:
When the company sells the equipment on December 31, 2020, and receives $18,000 cash, the journal entry to record this transaction would be as follows:
Debit Cash: $18,000
Debit Accumulated Depreciation: $40,000
Credit Equipment: $53,000
Credit Gain on Sale of Equipment: $5,000
The Accumulated Depreciation account is debited to remove the accumulated depreciation related to the equipment, and the Gain on Sale of Equipment account is credited with the difference between the cash received and the book value of the equipment ($18,000 - $13,000).
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what is/are advantage(s) to establishing a trust? a) trusts bypass probate. b) trusts can ensure that children from a previous marriage will receive some inheritance. c) trusts can be used to shelter assets from estate taxes. d) a trust does not become a matter of public record, so it offers confidentiality. e) all of the above are advantages to using a trust.
All the s mentioned (a, b, c, and d) are advantages of establishing a trust.
the advantage(s) to establishing a trust are:
e) all of the above are advantages to using a trust.
let's go through each to understand the advantages:
a) trusts bypass probate: one advantage of establishing a trust is that assets held within the trust can pass directly to the beneficiaries without going through the probate process. probate is a legal process that validates a will, settles debts, and distributes assets, which can be time-consuming, costly, and subject to public scrutiny. by bypassing probate, trusts can provide a more efficient and private transfer of assets upon the grantor's death.
b) trusts can ensure that children from a previous marriage will receive some inheritance: trusts allow the grantor to specify how their assets should be distributed after their death. this can be particularly beneficial in blended families, where the grantor wants to ensure that children from a previous marriage receive a portion of their estate . by establishing a trust, the grantor can have control over the distribution and protect the inheritance rights of specific beneficiaries.
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How does the NASDAQ quoting convention work
The NASDAQ quoting convention is a system used to display and communicate stock prices on the NASDAQ stock exchange.
The NASDAQ quoting convention is designed to provide information about the current bid and ask prices for a particular stock. It is displayed as a series of numbers and letters that represent different aspects of the stock's trading information.
The stock symbol identifies the specific company whose stock is being quoted. It is typically a combination of letters that uniquely represent the company.
The bid price represents the highest price at which buyers are willing to purchase the stock. It is usually displayed as a decimal number.
The ask price, also known as the offer price, represents the lowest price at which sellers are willing to sell the stock. Like the bid price, it is displayed as a decimal number.
Finally, the market maker is the financial institution or brokerage firm that facilitates the buying and selling of the stock. It is usually indicated by a three-letter code.
By following the NASDAQ quoting convention, investors and traders can quickly assess the current trading conditions for a particular stock and make informed decisions about buying or selling shares.
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The dollar amount paid by a retailer to acquire a product from a wholesaler is known as the retailer's expenses cost MSRP markup
The dollar amount paid by a retailer to acquire a product from a wholesaler is commonly referred to as the retailer's cost or cost of goods sold.
The dollar amount paid by a retailer to acquire a product from a wholesaler is known as the retailer's cost. This cost represents the amount of money that the retailer spends to purchase inventory for resale. It is often referred to as the cost of goods sold (COGS) or cost of sales.
The retailer's cost includes several components. First, there is the actual purchase price of the product from the wholesaler. This is the price negotiated between the retailer and the wholesaler, which typically takes into account factors such as quantity discounts, contractual agreements, and market conditions.
In addition to the purchase price, the retailer's cost may also include additional expenses incurred in acquiring the product. These expenses can include transportation costs, customs duties, handling fees, or any other costs directly associated with obtaining the product from the wholesaler and bringing it into the retailer's possession.
It's important to note that the retailer's cost is distinct from the manufacturer's or wholesaler's cost. The manufacturer's cost refers to the expenses incurred by the manufacturer in producing the product, including raw materials, labor, and overhead costs. The wholesaler's cost, on the other hand, represents the price at which the wholesaler sells the product to the retailer.
MSRP (Manufacturer's Suggested Retail Price) and markup are not synonymous with the retailer's cost. MSRP is a suggested price set by the manufacturer, indicating the price at which they recommend retailers sell the product to consumers. Markup refers to the difference between the retailer's cost and the selling price to customers. It represents the amount added to the cost to cover the retailer's expenses and profit margin.
In summary, the dollar amount paid by a retailer to acquire a product from a wholesaler is commonly referred to as the retailer's cost or cost of goods sold. This cost includes the purchase price of the product and any additional expenses associated with acquiring it. It should not be confused with MSRP or markup, which are related to the selling price and profit margin rather than the actual cost to the retailer.
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Which theory of political economy best explains todays global economy? (mercantilism, structuralism, economic liberalism, etc.) I have been leaning towards economic liberalism, but there are so many factors from mercantilism and structuralism that also exist today so I am not sure how to answer the question with a proper argument.
More than 100 theories of political economy can best explain today's global economy. However, the economic liberal. The economic liberalism theory is a theory that favors free trade and laissez-faire policies.
It emphasizes the free market economy, open markets, private property rights, and deregulation of markets. It is also based on the idea that the state should not interfere with the economy but should instead allow individuals and businesses to pursue their interests without any government regulation.
Economic Liberalism and its influence on the global economy. Economic liberalism has had a significant impact on the global economy since the 1970s. Many countries have adopted policies that are consistent with the principles of economic liberalism, such as privatization, free trade agreements, and deregulation of industries, and so on.
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Blossom Street Inc. makes unfinished bookcases that it sells for $57. Production costs are $37 variable and $10 fixed. Because it has unused capacity, Blossom Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Blossom Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Process Further Net Income Increase (Decrease) Sell Sales price per unit $ CA $ $______ et Cost per unit ______Variable ______Fixed_______ Total Net income per unit_________ $ $ $ The bookcases_________
Based on the analysis, selling finished bookcases results in a higher net income per unit ($17) compared to selling unfinished bookcases ($10).
Therefore, Blossom Street should choose to finish the bookcases and sell them, as it would lead to higher profitability per unit.
To analyze whether Blossom Street should sell unfinished or finished bookcases, we need to compare the net income per unit for each option.
Let's calculate the net income per unit for both scenarios:
Unfinished Bookcases:
Sales price per unit: $57
Variable cost per unit: $37 (production costs)
Fixed cost per unit: $10 (production costs)
Total cost per unit: $37 + $10 = $47
Net income per unit for unfinished bookcases:
Sales price per unit - Total cost per unit = $57 - $47
= $10
Finished Bookcases:
Sales price per unit: $70
Variable cost per unit: $37 (production costs) + $6 (finishing costs) = $43
Fixed cost per unit: $10 (production costs)
Total cost per unit: $43 + $10 = $53
Net income per unit for finished bookcases:
Sales price per unit - Total cost per unit = $70 - $53
= $17
Analysis:
For unfinished bookcases: Net income per unit = $10
For finished bookcases: Net income per unit = $17
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Which of the following is not considered a class of stock Stated Value Market value Par Value No-Par Value
Therefore, option "B" is the correct answer.
Here are the different types of stock:
Common stock is the most widely held type of stock. It is an equity investment that represents a piece of ownership in a corporation.
Preferred stock is a class of stock that pays dividends before common stock and has a higher priority in bankruptcy proceedings.
Restricted stock refers to unregistered shares of a company that have limits on when they can be sold and transferred.
Fund stock refers to shares in a mutual fund or exchange-traded fund (ETF) that hold various securities in a basket.
What is Market Value?
Market value is the value of an asset or company based on its current market price. It is a reflection of what the asset is worth on the open market. However, it is not a reflection of the intrinsic value of an asset or company, which takes into account a variety of factors such as assets, earnings, and growth prospects.
Conclusion:
As per the given question, the class of stock that is not considered a class of stock is "Market value".
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Do you think Both Private and public companies should adopt IFRS? and Why? Please be detailed
The adoption of IFRS by both private and public companies can promote consistency, comparability, and transparency in financial reporting. It can enhance access to global capital markets, improve credibility, and streamline reporting processes. However, each company should assess its specific circumstances and resources before deciding whether to adopt IFRS.
Both private and public companies should consider adopting International Financial Reporting Standards (IFRS) for several reasons.
Firstly, adopting IFRS promotes consistency and comparability in financial reporting across different countries and industries. As IFRS is a globally recognized accounting framework, it allows companies to provide financial information that can be easily understood and compared by investors, creditors, and other stakeholders. This consistency enhances transparency and facilitates better decision-making for users of financial statements.
Secondly, IFRS helps companies access international capital markets and attract global investors. By adopting a widely accepted accounting standard, companies demonstrate their commitment to transparency and align themselves with international reporting practices. This can improve their credibility and access to investment opportunities and funding sources from around the world.
Furthermore, adopting IFRS can streamline financial reporting processes and reduce the costs associated with maintaining multiple reporting systems. Many countries have already adopted or converged their local accounting standards with IFRS, making it easier for multinational companies to consolidate their financial statements and comply with reporting requirements in different jurisdictions.
However, it is important to note that there may be certain challenges and complexities in transitioning to IFRS, including the need for training and education, potential differences in accounting treatments, and adjustment to new reporting formats. Companies should carefully evaluate the costs and benefits of adopting IFRS and assess their readiness to implement the necessary changes.
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Find and post an article from the past five years (a journal article or one in the popular press) that you believe relates to the efficient markets hypothesis. Explain the linkage.
make sure to provide a link to the article
Must be 400-500 words
The efficient markets hypothesis (EMH) is a theory that suggests that financial markets are efficient in reflecting all available information.
To find an article that relates to the efficient markets hypothesis, you can search online databases or popular press websites using relevant keywords such as "efficient markets hypothesis," "financial markets efficiency," or "EMH research." It is important to select an article from the past five years to ensure that you have the most up-to-date information.
Once you have found an article, you can analyze its content to determine its linkage to the efficient markets hypothesis. Look for key points and arguments made in the article that either support or challenge the assumptions of the EMH. Consider the evidence provided, the research methods used, and the conclusions drawn by the author(s).
For example, if you find an article that presents empirical evidence suggesting that certain investment strategies consistently outperform the market, it may challenge the assumptions of the efficient markets hypothesis. This would be interesting to explore, as it goes against the idea that it is not possible to consistently beat the market by using available information.
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The efficient markets hypothesis (EMH) is a theory in financial economics that suggests that financial markets are efficient in reflecting all available information.
According to this theory, it is not possible to consistently outperform the market by using publicly available information because prices always incorporate all relevant information. The linkage between the efficient markets hypothesis and articles can be found in research studies and discussions that either support or challenge the EMH. These articles often analyze the efficiency of financial markets and provide evidence for or against the hypothesis.
To find an article related to the efficient markets hypothesis, you can search academic databases, financial journals, or reputable websites that publish finance-related articles. Some popular finance journals include the Journal of Finance, Journal of Financial Economics, and Review of Financial Studies. Reputable websites like Bloomberg, Financial Times, and The Wall Street Journal also published articles on finance and may cover topics related to the efficient markets hypothesis.
When searching for an article, consider using keywords such as "efficient markets hypothesis," "market efficiency," or "EMH" to narrow down your results. Additionally, specify the time frame to limit the search to articles published within the past five years.
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what is the maximum number of days a lender may take before responding to a loan application
The maximum number of days a lender may take before responding to a loan application varies depending on the type of loan and the lender's policies. Generally, lenders aim to provide a response within a reasonable timeframe to ensure efficient processing of loan applications.
1. Loan type: Different types of loans have different processing times. For example, personal loans typically have a quicker response time compared to mortgage loans, which involve more extensive documentation and verification.
2. Lender's policies: Each lender may have their own policies regarding the maximum response time. Some lenders may commit to providing a response within a specific timeframe, such as 24 hours or 48 hours, while others may take longer due to high volumes of applications or additional verification requirements.
3. Legal regulations: In some countries or regions, there may be legal regulations that specify the maximum response time for loan applications. These regulations aim to protect borrowers and ensure timely processing of applications.
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One
year ago the price wss $1300. Now the price of the bond is
&800. With the bond priced correctly, How has the YTM changed
over the last year?
The yield to maturity (YTM) is the rate of return anticipated on a bond if it is held until it matures. In this case, the bond was priced correctly at $800, but its price one year ago was $1300.
To find the change in YTM, we can use the formula:
YTM = (Future Value / Present Value) ^ (1 / n) - 1
where Future Value is the bond's face value ($1000), Present Value is the current price ($800), and n is the number of years (1).
Substituting the given values into the formula:
YTM = ($1000 / $800) ^ (1 / 1) - 1
= 1.25 ^ 1 - 1
= 0.25
Therefore, the YTM has changed by 0.25 or 25% over the last year.
The YTM is a measure of the bond's annual return. When the bond's price decreases, the YTM increases, and vice versa. In this case, the bond's price decreased from $1300 to $800, resulting in a higher YTM. The YTM change of 25% indicates that the bond's annual return has increased over the last year.
The YTM has increased by 25% over the last year, indicating a higher annual return for the bond. This change in YTM is a result of the decrease in the bond's price from $1300 to $800.
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Discuss three criteria to evaluate whether a business is a case
of successful entrepreneurship (eg. the characteristics of
entrepreneurship that is distinguished from business)
Entrepreneurship is defined as the method of producing new and innovative ideas for the creation of a business enterprise and the management of all factors involved to produce the required results in a profitable manner. Here are three criteria to evaluate whether a business is a case of successful entrepreneurship:InnovationThe ability to identify a new and innovative solution to an existing problem is a significant characteristic of successful entrepreneurship.
An entrepreneur should have the ability to come up with unique and creative ideas and solutions that can meet the needs of their target market. Entrepreneurs should be constantly thinking of new ways to innovate their products or services. By doing this, they create a strong competitive advantage and increase their chances of success. Risk-takingEntrepreneurship requires taking risks in order to achieve success.FlexibilityEntrepreneurs should be able to adapt to changing circumstances in order to achieve their goals. The ability to pivot, change, and adapt to new market trends and customer needs is an important characteristic of a successful entrepreneur. Entrepreneurs should be able to quickly identify changing circumstances and adapt their strategies accordingly.
In conclusion, successful entrepreneurship requires innovation, risk-taking, and flexibility. Entrepreneurs must constantly come up with new ideas, take calculated risks, and be willing to adapt to changing circumstances in order to achieve success.
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which of the following defines a problem in the decision-making process?group of answer choicesa discrepancy between what exists and what the decision maker desires to exista discrepancy between the ideal and the practicalsomething that causes irritationsomething that calls for attention
The correct answer is the first option, A discrepancy between what exists and what the decision maker desires to exist. Hence, the discrepancy between what exists and what the decision maker desires to exist is the definition that accurately describes a problem in the decision-making process.
A problem in the decision-making process is defined as a discrepancy or gap between the current state or situation (what exists) and the desired or preferred state (what the decision maker desires to exist). Problems arise when there is a mismatch between the current reality and the desired outcome.
Identifying and defining the problem is a crucial step in the decision-making process because it helps frame the decision and determine the appropriate course of action. Once the problem is clearly defined, decision makers can focus their efforts on finding solutions to bridge the gap and achieve their desired goals or outcomes.
The other options provided do not accurately define a problem in the decision-making process:
A discrepancy between the ideal and the practical: This refers to a discrepancy between an ideal or perfect solution and the practical or feasible solution. While this may be a factor to consider in decision making, it does not define a problem itself.
Something that causes irritation: Irritation may be a consequence or symptom of a problem, but it does not define the problem itself.
Something that calls for attention: While problems may require attention, calling for attention does not inherently define a problem. Problems are characterized by the discrepancy between the current and desired states, as mentioned earlier.
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Exercise 23-3 (Algo) Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 14,000 units)
folllows.
Fixed Budget
Sales (14,000 units × $212 per unit)
2,968,000
Costs
The flexible budget will be prepared on the basis of sales that actually occurred during the year. The sales volume variance is the difference between the actual sales quantity and the budgeted sales quantity.
The variance in sales volume occurs because actual sales quantities are different from expected sales quantities. If actual sales are greater than the expected budgeted sales, it results in a favorable sales volume variance. In contrast, if actual sales are less than the expected budgeted sales, it results in an unfavorable sales volume variance.
Fixed Budget Sales (14,000 units × $212 per unit)2,968,000
Cost of goods sold Direct materials Variable ($44 per unit) 616,000.
Actual Results Sales (16,000 units × $200 per unit)$3,200,000
Cost of goods sold 1,700,000
Gross margin 1,500,000
Selling and administrative expenses 1,080,000
Net operating income (loss) $ 420,000
Sales volume variance = (Actual sales volume − Budgeted sales volume) × Budgeted contribution margin per unit Sales volume variance = (16,000 units − 14,000 units) × $92
Sales volume variance
= $184,000F
Here, F represents favorable variance because actual sales volume is higher than budgeted sales volume.
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