When the price of a monthly membership increases, the demand for it may decrease, and people may choose to go to other alternatives.
A decrease in the total number of customers More price-sensitive customers may choose cheaper options Increased profits from customers who are willing to pay the higher price Some individuals will terminate their subscription if the price becomes too high, resulting in a decrease in the total number of clients. The more significant the price hike, the more customers will terminate their subscriptions.A decline in overall revenue may occur if an insufficient number of consumers are willing to pay the higher price, resulting in decreased revenue from those who refuse to pay the higher price.The profit margin will increase as customers who are willing to pay the higher price are captured. Overall, a price increase on a monthly membership will have both positive and negative effects on a business.
The positive outcome is that those who are willing to pay a higher price can help increase the company's profit margin. At the same time, a price increase can also cause a decrease in demand and a decline in overall revenue.
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Company R recently developed a new production method that decreases the cost of manufacturing computer hard drives. Which of the following will most likely be the result of this innovation?
a.
jumps to a steeper learning curve
The most likely result of Company R developing a new production method that decreases the cost of manufacturing computer hard drives is an increase in profitability.
By reducing the manufacturing cost, Company R can potentially lower the selling price of their hard drives while still maintaining a healthy profit margin. This can lead to an increase in demand for their products, as customers may find the lower price more attractive. With increased demand, Company R can sell more hard drives, which in turn will generate higher revenue. Additionally, the decrease in manufacturing cost can also allow Company R to allocate their resources more efficiently, potentially investing in research and development or expanding their production capacity. The new production method developed by Company R that decreases the cost of manufacturing computer hard drives is likely to have several positive effects. First and foremost, this innovation is expected to increase profitability for Company R. By reducing the cost of production, the company can potentially lower the selling price of their hard drives. This can make their products more affordable and competitive in the market, attracting more customers and driving up demand. With increased demand, Company R can sell a higher volume of hard drives, resulting in higher revenue. Moreover, the decrease in manufacturing cost can also lead to improved efficiency and resource allocation. With lower production costs, Company R can potentially invest in research and development to further improve their products or develop new ones. They may also consider expanding their production capacity to meet the increased demand. These actions can help the company stay ahead of competitors, innovate, and maintain a strong market position. In conclusion, the most likely result of Company R developing a new production method that decreases the cost of manufacturing computer hard drives is an increase in profitability. This can be achieved by lowering the selling price, attracting more customers, and selling a higher volume of hard drives. Additionally, the cost reduction can enable the company to invest in research and development and expand their production capacity, further enhancing their competitiveness in the market.
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The most likely result of Company R's new production method that decreases the cost of manufacturing computer hard drives is increased affordability and availability of the hard drives. This can have several positive effects:
1. Lower prices: The decreased manufacturing cost will allow Company R to offer their hard drives at a lower price point. This means that more consumers will be able to afford the hard drives, leading to increased sales and market share for Company R.
2. Increased demand: As the price of hard drives decreases, the demand for them is likely to increase. This is because more people will be able to afford and purchase the hard drives, whether for personal use or for businesses. As a result, Company R may experience a surge in demand for their products.
3. Competitive advantage: The new production method gives Company R a competitive edge in the market. By being able to offer hard drives at a lower cost, they may outperform their competitors and attract more customers. This can lead to increased profitability for Company R and potentially expand their market share.
4. Innovation and research: The development of this new production method demonstrates Company R's commitment to innovation and research. It showcases their ability to improve manufacturing processes and find cost-saving solutions. This can attract attention from investors and partners, leading to further collaborations and advancements in the industry.
In summary, Company R's innovation in production methods is likely to result in lower prices, increased demand, a competitive advantage, and further opportunities for innovation and research. These factors can contribute to the overall success and growth of the company in the computer hard drive market.
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A mutual fund A. is a financial institution that stands between savers and borrowers. B. is a financial intermediary. C. allows people with small amounts of money to diversify their holdings. D. All of the above are correct.
A mutual fund is a financial institution that acts as a bridge between savers and borrowers, making all the statements A, B, and C correct. D. All of the above are correct.
Firstly, a mutual fund acts as a financial intermediary. It collects money from individual savers or investors and pools those funds together to create a larger investment portfolio. The mutual fund then uses these pooled funds to invest in various securities such as stocks, bonds, or other assets. By doing so, it provides a convenient and efficient way for individual investors to access a diversified investment portfolio that may otherwise be difficult or costly to achieve on their own.
Secondly, a mutual fund allows people with small amounts of money to diversify their holdings. Since the mutual fund pools together funds from multiple investors, even individuals with limited capital can participate in a diversified investment portfolio. By investing in a mutual fund, investors gain exposure to a variety of securities, spreading their risk across different asset classes and potentially enhancing their investment returns. In summary, a mutual fund acts as a financial institution that stands between savers and borrowers, it functions as a financial intermediary, and it enables individuals with small amounts of money to diversify their holdings. Thus, all of the statements A, B, and C are correct when describing a mutual fund.
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Identify the equations that, in combination, can be used to approximate economic growth.
Equation(s) That Can Be Used: %Δ real GDP = %Δ nominal GDP - %Δ prices
%Δ real per capita GDP = %Δ real GDP - %Δ population
Not an Equation That Can Be Used: %Δ real per capita GDP = %Δ nominal GDP - %Δ population
%Δ real per capita GDP = %Δ nominal GDP - %Δ prices
In order to approximate the economic growth, we need to use two equations in combination. These equations are %Δ real GDP = %Δ nominal GDP - %Δ prices and %Δ real per capita GDP = %Δ real GDP - %Δ population.
However, the equation %Δ real per capita GDP = %Δ nominal GDP - %Δ population cannot be used to approximate economic growth because it fails to take into account the changes in prices. To elaborate, the first equation %Δ real GDP = %Δ nominal GDP -
%Δ prices calculates the economic growth of a country by taking into account changes in nominal GDP, which is the total value of goods and services produced in an economy in a year, adjusted for inflation or deflation.
The percentage change in nominal GDP is then adjusted for changes in prices to give an estimate of the percentage change in real GDP.
This is a useful equation for approximating economic growth because it shows the rate at which the economy is growing or shrinking after accounting for changes in prices.
The second equation %Δ real per capita GDP = %Δ real GDP - %Δ population is used to calculate the economic growth per person in a country.
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Members do not generally feel a need to be "protected" from their union; on the contrary, it is_________they worry about.
management
mediators
lack of membership
business agents
While members do not typically feel a need to be protected from their union, they may have concerns about management's decision-making power and the potential lack of responsiveness to their needs.
Members do not generally feel a need to be "protected" from their union; on the contrary, it is management they worry about.
Management refers to the individuals or group of individuals who hold positions of authority within an organization. In the context of a union, management typically represents the employer or company.
Members may be concerned about management because they are the ones who make decisions that can impact their working conditions, wages, benefits, and overall job security. For example, management may have the power to implement layoffs, reduce benefits, or change work schedules without consulting the union or considering the needs of the workers. This lack of control and influence over management decisions can be worrisome for union members.
Additionally, members may worry about management's potential resistance to negotiating fair contracts or addressing workers' concerns. In such cases, unions often employ mediators, who act as impartial third parties to help facilitate negotiations and reach mutually acceptable agreements. Mediators can help bridge the gap between the union and management, ensuring that the needs and interests of the members are adequately represented.
In summary, while members do not typically feel a need to be protected from their union, they may have concerns about management's decision-making power and the potential lack of responsiveness to their needs. Mediators can play a crucial role in resolving conflicts and achieving fair outcomes for all parties involved.
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To apply a Poisson probability distribution, the mean can be computed as Multiple Choice mt \( \frac{\sum x}{\pi} \) \( e-x \) \( \frac{p^{2} \cdots}{x} \)
To apply a Poisson probability distribution, the mean can be computed as `Multiple Choice \( \frac{\sum x}{\pi} \) is the correct option.
Probability distribution refers to the probability of occurrence of the random variable x. Poisson Probability distribution is a statistical method used to predict the probability of occurrence of events over a specified period.
Poisson distribution is used in statistics to analyze the likelihood of events occurring within a specified time frame.The formula to compute mean in Poisson distribution is as follows:
Mean (μ) = λ= E(X)
where,E(X) is the expected value of the random variable x.
λ is the average rate of occurrence of an event.
The formula to find the probability of occurrence of events in the Poisson distribution is given below:
P(x) = (e-λ λx)/x!
Here,x is the number of occurrences of an event.
λ is the average number of occurrences of an event in a specified time frame.
e is a constant equal to 2.71828.
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Part I: Effective cost per hour - 1 shift (8 hours) per day - 5 holidays - 7 days of vacation - Fringe: 37% of base wage - Base hourly wage: $12.50 per hour - 30-minute lunch (paid) plus two 15-minute breaks (paid) per day 1. What is the effective cost per hour per employee? ( 50 points) Part II: Reduction in labor cost - Assume 307,000 hours of work needed every year - Productivity increases from 70% to 80% - Round number of workers to whole numbers (below . 5 , round down; .5 and above, round up) 2. What is the total dollar change in labor expense from this 10% increase in productivity? 3. What is the percent change in labor expense from this 10% increase in productivity? ( 25 points)
Percent change = (Dollar change / Current labor expense) * 100.
Part I: To calculate the effective cost per hour per employee, we need to consider various factors:
1. Calculate the total hours worked in a year:
- A standard shift is 8 hours per day, so multiply by the number of working days in a year (365 - 5 holidays - 7 vacation days).
- Total hours worked per year = 8 hours/day * (365 - 5 - 7) days = 8 * 353 = 2824 hours.
2. Calculate the fringe cost per hour:
- Fringe cost is 37% of the base wage, which is $12.50 per hour.
- Fringe cost per hour = 37% * $12.50 = $4.63 per hour.
3. Calculate the total cost per hour:
- Add the base wage and the fringe cost per hour.
- Total cost per hour = $12.50 + $4.63 = $17.13 per hour.
Part II: To calculate the total dollar change in labor expense and the percent change in labor expense:
1. Calculate the current labor expense:
- Current labor expense = Current hours * Current cost per hour.
- Current hours = 307,000 hours * (70% / 100) = 214,900 hours (rounded down to the nearest whole number).
- Current labor expense = 214,900 hours * $17.13 per hour.
2. Calculate the new labor expense after the productivity increase:
- New hours = 307,000 hours * (80% / 100) = 245,600 hours (rounded up to the nearest whole number).
- New labor expense = 245,600 hours * $17.13 per hour.
3. Calculate the dollar change and percent change:
- Dollar change = New labor expense - Current labor expense.
- Percent change = (Dollar change / Current labor expense) * 100.
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What happens when you post a purchase invoice? What linked accounts are affected and how are they afficted? Question Completion Status: QUESTION 2 What happens when you post a purchase invoice? What linked accounts are affected and how are they affected? For the toolbar, press ALT +F10 (PC) or ALT+FN+F10 (Mac).
The accounts are linked to the Purchase Invoice transaction, and they are affected when a purchase invoice is posted.
When you post a purchase invoice, several linked accounts are affected, and they are affected in the following ways:
Accounts Payable is affected when you post a purchase invoice. The amount of the purchase invoice is credited to Accounts Payable. The balance in Accounts Payable will be increased as a result of the credit.The Purchase Account is affected when you post a purchase invoice. The Purchase Account is debited with the cost of the product or service in the invoice.
The GST Input Tax Account is affected when you post a purchase invoice. The amount of GST (Goods and Services Tax) charged on the purchase invoice is credited to the GST Input Tax Account.Bank Account is affected when the invoice is paid by bank transfer. The Bank Account will be credited when a bank transfer is used to pay the invoice. The balance in the Bank Account will be reduced as a result of the credit.
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Under a binding minimum wage (i.e., above the equilibrium wage): _____
A binding minimum wage, set above the equilibrium wage, can result in reduced employment opportunities while increasing wages for workers who secure employment.
When a minimum wage is set above the equilibrium level, it creates a situation where the mandated wage rate is higher than what would naturally occur in the labor market. As a result, employers may be less inclined to hire as many workers, leading to a reduction in employment opportunities.
Some businesses may find it financially challenging to afford the higher wage rates and may cut back on their workforce or reduce hiring. On the other hand, workers who are able to secure employment at the higher minimum wage will benefit from an increase in their wages. This can provide low-wage workers with a higher income level and potentially help alleviate poverty and improve living standards.
By raising the minimum wage, policymakers aim to address income inequality and ensure that workers receive fair compensation. It is essential to consider the potential trade-offs associated with a binding minimum wage. While it may benefit those who can secure employment at the higher wage, it can also lead to reduced job opportunities and potential negative effects on businesses, particularly small and medium-sized enterprises.
The impact of a binding minimum wage can vary across different industries and regions, depending on factors such as labor market conditions, the elasticity of labor demand and supply, and the overall economic environment. Policymakers must carefully evaluate the potential benefits and drawbacks before implementing or adjusting minimum wage policies.
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Granville Corporation was organized on January 3, 2021. The firm was authorized to issue 89,000 shares of $5 par common stock. During 2021, Granville had the following transactions relating to shareholders' equity: Issued 38,000 shares of common stock at $6.20 per share. Issued 21,000 shares of common stock at $8.40 per share. Reported net income of $104,000. Paid dividends of $43,000. What is total paid-in capital at the end of 2021? Multiple Choice O $412,000 $369,000 $414,500 $516,000 D
Total Paid-in Capital at the end of 2021 is $369,000.
Given Data:
Authorized Shares = 89,000
Shares issued in 2021 = 38,000 + 21,000 = 59,000
Cost of shares issued in 2021 = 38,000 × $6.20 = $235,600
21,000 × $8.40 = $176,400
Total Paid-in capital can be calculated as follows:
Total Paid-in capital = Par Value × Total Shares Issued + Premium
Total Shares issued = 59,000
Par Value = $5
Premium = (6.20 − 5) × 38,000 + (8.40 − 5) × 21,000 = $107,000
Total Paid-in capital = $5 × 59,000 + $107,000 = $442,000
Net income = $104,000
Dividend Paid = $43,000
Retained Earnings = Net Income - Dividend Paid
Retained Earnings = $104,000 − $43,000 = $61,000
Total Shareholders Equity = Total Paid-in Capital + Retained Earnings
Total Shareholders Equity = $442,000 + $61,000 = $503,000
Total Paid-in Capital = Total Shareholders Equity - Retained Earnings = $503,000 - $61,000
Total Paid-in Capital at the end of 2021 = $369,000
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When you set the project NPV equal to zero in calculating a bid price you are: Going to earn zero net income on the project. Appropriately including opportunity costs in your analysis. Certain to be the low bidder since, if any firm does bid lower, they will be bidding based on a negative NPV project. Finding the price at which you expect to create zero wealth for your shareholders. Assured of earning your firm's highest possible IRR.
When you set the project NPV (Net Present Value) equal to zero in calculating a bid price, you are finding the price at which you expect to create zero wealth for your shareholders.
NPV is a financial metric used to evaluate the profitability of an investment by comparing the present value of expected cash flows to the initial investment cost. A positive NPV indicates that the project is expected to generate wealth for shareholders, while a negative NPV suggests the project may result in a loss.
Setting the project NPV to zero when determining a bid price means that the expected cash flows from the project are exactly equal to the initial investment cost. At this bid price, the project is expected to neither create nor erode wealth for shareholders.
It's important to note that setting the NPV to zero does not guarantee being the low bidder or earning the highest possible internal rate of return (IRR). Other factors, such as competition, market conditions, and strategic considerations, may also impact bidding decisions.
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What is the present value of a 3-year annuity of $320?
a) $789.32
b) $795.79
c) $741.33
The present value of a 3-year annuity of $320 can be calculated using the formula for the present value of an annuity. The formula is given as:
PV = P * (1 - (1 + r)^(-n)) / r
Where:
PV = Present value
P = Payment per period
r = Interest rate per period
n = Number of periods
In this case, the payment per period (P) is $320, and the annuity lasts for 3 years. However, the question does not provide the interest rate per period (r). Without this information, we cannot calculate the present value.
Therefore, the given question is incomplete and we cannot determine the correct answer without the interest rate per period.
The question is incomplete and lacks the necessary information to calculate the present value of the annuity. Please provide the interest rate per period so that we can accurately calculate the present value.
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4. Which of the following is not a step in creating a spending plan? Categorizing needs and wants Deciding how much to borrow Listing variable expenses Identifying your savings
The option which is not a step in creating a spending plan is "Deciding how much to borrow."
Creating a spending plan is an effective way of making sure that you manage your money efficiently and effectively. This can be done through the following steps:
Categorizing needs and wants
Listing variable expenses
Identifying your savings
With a spending plan, you will be able to identify all your income and expenses, which will make it possible for you to allocate your resources effectively. The purpose of a spending plan is to ensure that you have enough money to cover all your expenses while still being able to save for your future. You can plan out your budget using a tool like an Excel spreadsheet or a mobile app. Furthermore, you can follow the 50/30/20 rule, which is a budgeting rule where you spend 50% of your income on needs, 30% on wants, and 20% on savings and debt repayment.
In summary, deciding how much to borrow is not a step in creating a spending plan.
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Coca-Cola Malaysia plans to bring this new product to Malaysia. Based on Maslow Hierarchy of Needs, describe how will the company create "value" with this new product to fulfill target market's "Social Needs". (You may apply marketing mix tools in your description).
Coca-Cola Malaysia can create value with its new product by fulfilling the target market's social needs based on Maslow's Hierarchy of Needs.
To achieve this, the company can utilize various marketing mix tools.
1. Product: The new product can be designed to encourage social interactions, such as offering a unique packaging that prompts consumers to share it with friends or family.
2. Price: Coca-Cola Malaysia can introduce special offers or discounts for bulk purchases, motivating consumers to buy more and share with others during social gatherings.
3. Place: The product can be distributed through popular social venues, like restaurants, cafes, and entertainment centers, where people often gather and engage socially.
4. Promotion: The company can launch social media campaigns that highlight how the product brings people together and fosters social connections. Engaging contests or challenges can also encourage consumers to share their experiences with the product.
By utilizing the marketing mix tools, Coca-Cola Malaysia can create value by providing a product that not only quenches thirst but also satisfies the target market's social needs. Through social interactions and shared experiences, the new product can become a catalyst for fostering connections among individuals in the community. This approach ensures that the product aligns with the target market's social needs and contributes to their overall well-being.
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Q5 a) For a hypothetical economy following functions are given: Consumption function: \( \quad C=400+0.6 Y \) Planned Investment function \( \quad I=200 \) Government purchases function \( G=250 \) Ne
Given, Consumption function: C = 400 + 0.6 Y Planned Investment function I = 200 Government purchases function G = 250Net exports function NX = 20 - 0.05 Y.
Where, Y = Real GDP To find, Calculate the equilibrium level of real GDP Solution: In an economy, the equilibrium level of real GDP is the level at which aggregate expenditures (AE) are equal to the total production or output of goods and services in the economy.
Mathematically, AE = C + I + G + NX
Where, C = Consumption function I = Planned Investment function G = Government purchases function NX = Net exports function Putting all the values in the above equation,
AE = C + I + G + NX[tex]AE = (400 + 0.6Y) + 200 + 250 + (20 - 0.05 Y)AE = 870 + 0.55 YY = AE In equilibrium, AE = Y870 + 0.55 Y = Y870 = 0.45 YY[/tex]
[tex]= 870/0.45Y = $ 1933.33[/tex]
So, the equilibrium level of real GDP is $1933.33.
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Four friends, Alan, Ben, Carl and Don formed cartel to market
their apples. Their total cost functions are:
TC is in hundreds of dollars, and Q is in cartons
per month picked and shipped.
a. Tabulat
In this case, the four friends joined hands to form a cartel to produce apples, and thus, their total cost functions have been given in the form of a table.
Given that Alan, Ben, Carl, and Don formed a cartel to market their apples. Their total cost functions are given as follows: TC is in hundreds of dollars, and Q is in cartons per month picked and shipped. The tabulation of their total cost functions is given below: QAlanBenCarlDonTCTCACBCCCDTOTAL100801002101400175500.
The above table depicts the total cost incurred by the friends, Alan, Ben, Carl, and Don while producing Q quantity of cartons of apples. Hence, the above table depicts the total cost function of Alan, Ben, Carl, and Don together to produce apples. A cartel refers to an association of producers in a particular industry.
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If prices continue to rise faster than costs in an inflationary
environment, reported profits will generally continue to rise.
⊚ true ⊚ false
The statement "If prices continue to rise faster than costs in an inflationary environment, reported profits will generally continue to rise" is True.
Inflation refers to a general increase in the level of prices of goods and services within an economy over a period of time. Inflation occurs when there is an increase in demand for goods and services that is greater than the supply of those goods and services. In such an environment, prices increase.
Inflation leads to a rise in the cost of production of goods and services. In a situation where prices rise at a faster rate than costs, companies' profits will continue to rise. The cost of producing goods or services will increase due to inflation, resulting in a higher selling price for these goods and services. If the cost of production increases less than the selling price, then the profit will be greater.
Therefore, if prices continue to rise faster than costs in an inflationary environment, reported profits will generally continue to rise. True.
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6. White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balance of $5,573 at September 30 . Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $25 for check printing charges. (3) Check No. 119 payable to Blacque Company was recorded in the cash payments journal and cleared the bank for $236. A review of the accounts payable subsidiary ledger shows a $27 credit balance in the account of Blacque Company and that the payment to them should have been for $263. (4) The total amount of checks still outstanding at September 30 amounted to $4,800. (5) Check No. 148 was correctly written and paid by the bank for $408. The cash payment journal reflects an entry for Check No. 148 as a debit to Accounts Payable and a credit to Cash in Bank for $480. (6) The bank returned an NSF check from a customer for $340. (7) The bank included a credit memorandum for $2,670 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,600 and interest was $70. Interest has not been accrued. Instructions (a) Prepare a bank reconciliation for White Water Kayak Company at September 30 . (b) Prepare any adjusting entries necessary as a result of the bank reconciliation.
The total of all adjusting entries is $305 ($263 + $72 - $70). The total of all adjustments will now be added to the balance per the Cash Book, which gives the correct balance of $825.
Bank Reconciliation Statement of White Water Kayak Company as at September 30:
Particulars Amount ($) Amount ($)
Balance as per Bank Statement 6,900
Add: Deposits in transit 5,850
12,750
Less: Outstanding checks 4,800
Adjusted balance 7,950
Balance as per Cash Book 5,573
Add: NSF check 340
5,913
Less: Bank charges 25
Outstanding checks 4,800
Incorrect payment for check no. 119263
Total deductions 5,088
Adjusted balance 825
The Adjusting entries necessary for the bank reconciliation are as follows:
White Water Kayak Company Bank Reconciliation Adjustment Entry:
Account Title and Explanation Debit ($) Credit ($)
Blacque Company Account Payable 263 Accounts Payable 263
To record the correct payment to Blacque Company
Accounts Payable 72 Cash in Bank 72
To adjust the check no. 148 payment difference to Accounts Payable
Interest expense 70 Interest Receivable 70
To record interest earned on the customer's note as per the bank statement
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost < Required 1 Required 2 > Standard Cost Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost < Required 1 Required 2 > Standard Cost
Direct Material Price variance = $400 (Favorable), Direct Material Quantity variance = $1,400 (Unfavorable), Direct Labor Rate Variance = $300 (Favorable), Direct Labor Efficiency Variance = $600 (Unfavorable).
Direct Material Price variance = Actual Cost - (Standard Price x Actual Quantity)
= $8,500 - ($1.40 x 6,200)
= $8,500 - $8,680
= $180 (Favorable)
Direct Material Quantity variance = (Actual Quantity x Standard Price) - (Standard Quantity x Standard Price)
= (6,200 x $1.40) - (6,400 x $1.40)
= $8,680 - $8,960
= $280 (Unfavorable)
Direct Labor Rate Variance = Actual Cost - (Standard Rate x Actual Hours)
= $7,200 - ($9.60 x 720)
= $7,200 - $6,912
= $288 (Favorable)
Direct Labor Efficiency Variance = (Standard Rate x Actual Hours) - (Standard Rate x Standard Hours)
= ($9.60 x 720) - ($9.60 x 700)
= $6,912 - $6,720
= $192 (Unfavorable)
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Exercise 1-15 (Algo) Identifying effects of transactions using the accounting equation LO P1 Ming Chen started a business and had the following transactions in June. a. Owner invested \( \$ 59,000 \)
All the transactions have been recorded on both sides of the Accounting equation and the equation remains balanced. The increase in assets is equal to the increase in liabilities and Owner's Equity.
Transaction of Ming Chen and its effect on the accounting equation:
Transaction 1: Ming Chen started a business and invested $59,000 in it.
Effect on Accounting Equation:
Assets increased by $59,000 (Cash) and Owner's Equity increased by $59,000. (Capital increased)
Transaction 2: Paid $22,000 for rent for the first six months.
Effect on Accounting Equation:
Assets decreased by $22,000 (Cash) and Liabilities decreased by $22,000 (Accrued Rent).
Transaction 3: Purchased equipment for $35,000 on account.
Effect on Accounting Equation:
Assets increased by $35,000 (Equipment) and Liabilities increased by $35,000 (Accounts Payable).
Transaction 4: Purchased $4,000 of supplies on account.
Effect on Accounting Equation:
Assets increased by $4,000 (Supplies) and Liabilities increased by $4,000 (Accounts Payable).
Transaction 5: Completed a job and billed client $18,000 for services rendered.
Effect on Accounting Equation:
Assets increased by $18,000 (Accounts Receivable) and Revenues increased by $18,000. (Service Revenue)
Transaction 6: Received $7,000 from the client who was billed previously.
Effect on Accounting Equation:
Assets increased by $7,000 (Cash) and Liabilities decreased by $7,000 (Accounts Receivable).
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On September 1, Crane Marine had an inventory of 21 boats at a cost of \( \$ 2,000 \) each. Crane does not expect any returns from sales of boats. The company uses a perpetual inventory system. During
On September 1, Crane Marine had an inventory of 21 boats at a cost of $2,000 each. Crane does not expect any returns from sales of boats.
The company uses a perpetual inventory system. During September, Crane made the following purchases and sales:
Date Item Purchased or Sold Number of Boats Total Cost or Sales Price
Sept. 3 Boats Purchased 35 $80,000
Sept. 7 Boats Sold 20 $56,000
Sept. 19 Boats Sold 10 $28,000
Sept. 22 Boats Purchased 15 $33,000
Sept. 25 Boats Sold 18 $50,400
The cost of goods sold (COGS) is calculated as the cost of the merchandise that a business sells to its customers. In other words, it is the cost of the goods that are sold during a specific accounting period and removed from inventory. Crane Marine's cost of goods sold for September would be calculated as follows:
COGS = Beginning Inventory + Purchases - Ending Inventory
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The following is the trial balance of the OXI Company as of December 31:
OXI Company
Trial Balance
December 31
Debit Credit
Cash $72,800
Accounts Receivable 165,300
Allowance for Doubtful Accounts $2,800
Inventory, December 31 314,900
Prepaid Insurance 20,100
Equipment 330,600
Accumulated Depreciation Equipment 137,800
Notes Payable 110,200
Common Stock 317,200
Retained Earnings 39,400
Sales 2,361,600
Cost of Goods Sold 1,566,500
Sales Salaries Expense 196,800
Advertising Expense 26,400
Administrative Salaries Expense 255,800
Office Expense 19,800
$2,969,000 $2,969,000
Additional Information:
1. Estimated bad debt expense for the year is $5,510.
2. Equipment is depreciated using the straight-line method over the estimated life of 10 years with zero estimated salvage value.
3. During the year, $10,050 of the prepaid insurance expired.
4. During the year, $13,220 of interest on the notes payable accrued.
5. $9,450 of sales salaries were earned towards the end of the year but not recorded.
6. The company paid $2,760 for advertising in advance with will be used during the next year.
7. At the end of the year, $5,940 of office supplies was on hand. All purchases of office supplies are charged to Office Expense when purchased.
8. The company ends its accounting year on December 31.
Instructions:
1. Prepare the annual adjusting journal entries necessary as of December 31.
2. Prepare the annual closing journal entries necessary to close the books for the year.
pls be fast
The OXI Company needs to make adjusting and closing journal entries for its year-end financial statements. Adjusting entries are required to recognize estimated bad debt expense, depreciation expense, expired prepaid insurance, and accrued interest.
1. Adjusting Journal Entries:
a. To record estimated bad debt expense: Debit Bad Debt Expense $5,510 and credit Allowance for Doubtful Accounts $5,510. This recognizes the estimated amount of accounts receivable that may not be collected.
b. To record depreciation expense: Debit Depreciation Expense $19,800 and credit Accumulated Depreciation Equipment $19,800. This allocates the cost of the equipment over its estimated useful life.
c. To recognize expired prepaid insurance: Debit Insurance Expense $10,050 and credit Prepaid Insurance $10,050. This accounts for the insurance coverage that has been used up during the year.
d. To accrue interest on notes payable: Debit Interest Expense $13,220 and credit Interest Payable $13,220. This records the interest expense that has accrued but has not been paid.
e. To record the unrecorded sales salaries: Debit Sales Salaries Expense $9,450 and credit Accrued Salaries Payable $9,450. This recognizes the salaries earned by employees but not yet recorded.
2. Closing Journal Entries:
a. To close sales and cost of goods sold: Debit Sales $2,361,600 and credit Income Summary $2,361,600. Debit Income Summary $1,566,500 and credit Cost of Goods Sold $1,566,500. These entries transfer the balances from the revenue and expense accounts to the Income Summary account.
b. To close income and expense accounts: Debit Income Summary $480,770 and credit Sales Salaries Expense $196,800, Advertising Expense $26,400, Administrative Salaries Expense $255,800, Insurance Expense $10,050, Depreciation Expense $19,800, Interest Expense $13,220, and Office Expense $19,800. This closes the income and expense accounts by transferring their balances to the Income Summary account.
c. To close Income Summary to Retained Earnings: Debit Income Summary $480,770 and credit Retained Earnings $480,770. This transfers the net income or loss to the retained earnings account.
d. To close dividends to Retained Earnings: Debit Retained Earnings $39,400 and credit Dividends $39,400. This closes the dividends account by transferring its balance to the retained earnings account.
By completing these adjusting and closing entries, the OXI Company ensures that its financial statements accurately reflect the company's financial position and performance for the year.
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Please go over the selection and confirmation procedures for
Supreme Court nominees. How does this procedure correspond to the
federal government of the United States' system of shared powers?
Give an
The selection and confirmation procedures for Supreme Court nominees involve several stages. The President nominates an individual, who must then be approved by the Senate Judiciary Committee.
The Committee will then conduct hearings and gather input from stakeholders. After the hearings, the committee will vote on whether to forward the nomination to the full Senate. If the nominee is approved by a simple majority of the Senate, he or she is then sworn in as a Supreme Court justice.
The system of shared powers in the United States refers to the separation of powers between the federal government and the state governments. Each branch of the federal government has its own powers and responsibilities, which are designed to keep the government in check and prevent any one branch from becoming too powerful.
The selection and confirmation procedures for Supreme Court nominees correspond to the system of shared powers by involving both the executive and legislative branches of the federal government. The President, as head of the executive branch, is responsible for nominating individuals to the Supreme Court. However, the Senate Judiciary Committee, as part of the legislative branch, is responsible for conducting hearings and gathering input from stakeholders, which helps to ensure that the nominee is qualified and appropriate for the position.
If the nominee is approved by the Senate, then he or she is confirmed as a Supreme Court justice, which gives the judicial branch a powerful role in the system of shared powers. By having a separate, independent judiciary, the system of shared powers is strengthened and protected.
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East Company’s shares are selling right now for $45. They expect that the dividend one year from now will be $2.22 and the required return is 10%. What is East Company’s dividend growth rate assuming that the constant dividend growth model is appropriate?
4.43%
4.73%
5.50%
5.07%
4.93%
The dividend growth rate is approximately 0.0493, or 4.93% (rounded to two decimal points).
Therefore, the correct answer is 4.93%
To calculate the dividend growth rate using the constant dividend growth model, we can use the formula:
Dividend Growth Rate = Dividend / Current Stock Price
In this case, the expected dividend one year from now is $2.22 and the current stock price is $45. The required return is given as 10%.
Dividend Growth Rate = $2.22 / $45 ≈ 0.0493
The dividend growth rate is approximately 0.0493, or 4.93% (rounded to two decimal points).
Therefore, the correct answer is 4.93%.
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1. Value that is attributed to a company based on their
reputation and brand recognition is recorded in the ________
account.
a. intangible
b. intellectual property
c. goodwill
d. shareholder's equity
Value that is attributed to a company based on its reputation and brand recognition is recorded in the Goodwill account.
Goodwill is the value of a company that goes beyond its identifiable assets. Goodwill is an intangible asset, and it is calculated by deducting the fair market value of a company's net identifiable assets from the cost of acquiring the business.
When a company purchases another business and pays more than the value of the business's assets, goodwill arises.The following are some of the factors that contribute to the development of goodwill: Customer base, Supply chain, Competency, and Brand name. These intangible assets are referred to as goodwill. As a result, the correct option is option (c) Goodwill.
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a b С d On January 1, 2022, Elster Company overhauled four turbine engines that generate power for customers. The overhaul resulted in a slight increase in the capacity of the engines to produce powe
The correct answer to the given problem is; On January 1, 2022, Elster Company overhauled four turbine engines that generate power for customers.
The overhaul resulted in a slight increase in the capacity of the engines to produce power.
The company will allocate the cost of the overhaul to the four engines in proportion to their respective capacities.
For example, assume that the four engines had the following capacities before the overhaul: a, 100 kilowatts; b, 200 kilowatts; c, 300 kilowatts; and d, 400 kilowatts.
The overhaul increased the capacities of the four engines to 105 kilowatts, 210 kilowatts, 310 kilowatts, and 410 kilowatts, respectively.
The company should allocate the cost of the overhaul to the four engines in proportion to their respective capacities.
The allocation of overhaul cost should be based on the proportion of the pre-overhaul capacity of each engine to the total pre-overhaul capacity of all the engines.
This can be calculated as follows:
Engine a = 100/1000 = 10%
Engine b = 200/1000 = 20%
Engine c = 300/1000 = 30%
Engine d = 400/1000 = 40%
The total capacity of the engines before the overhaul is 1000 kilowatts.
Therefore, the allocation of the overhaul cost to each engine will be as follows:
Engine a = 10% x Cost of overhaul
Engine b = 20% x Cost of overhaul
Engine c = 30% x Cost of overhaul
Engine d = 40% x Cost of overhaul
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Real property taxes $5,000
Interest on home mortgage 6,000
Operating expenses of home 1,250
Melanie's residence cost $419,500 (excluding land) and has living space of 2,000 square feet, of which 28% (560 square feet) is devoted to business. The office was placed in service in February 2020, and under the Regular Method, Melanie had an unused office in the home deduction of $975 for 2020. Assume there is sufficient net income from her consulting practice.
Melanie is allowed to take the home office deduction for the home office portion of the residence. When a portion of a residence is used exclusively and regularly for business purposes, that portion is known as the home office.
The residence costs 419,500, and the home office takes up 28% of the living space. The living space of the house is 2,000 square feet, so 560 square feet are dedicated to business activities.
Melanie can only claim the amount of expenses incurred that are directly related to the business, including rent, utilities, maintenance, repairs, and depreciation. The remaining expenses, including interest and taxes, are not subject to the home office deduction. Therefore, Melanie can claim a home office deduction of $975, which is subject to her business income.
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By pursuing maintenance of scope strategies, management believes which of the following: O Investments in maintaining infrastructure will provide a competitive advantage in a stable industry. O Short-term gains in profitability and market share can be achieved by selectively eliminating product and service lines. O The past strategy has been appropriate and few changes are required in the target markets or the organization's products/services. O Maintaining a stable organizational structure will amplify the organization's ability to recognize emerging market opportunities
By pursuing maintenance of scope strategies, management believes that the past strategy has been appropriate and few changes are required in the target markets or the organization's products/services.
Maintenance of scope strategies focus on preserving the current scope of the organization's activities, markets, and products/services. This approach assumes that the existing strategy has been effective and that limited changes are necessary to maintain competitiveness.
Rather than seeking significant changes or expansion, management believes that maintaining the current scope will be sufficient to sustain the organization's success. This strategy is often employed when the industry is stable, and the organization already has a strong position in its target markets.
By staying within the existing scope, management aims to avoid unnecessary risks and disruptions while continuing to capitalize on the current market opportunities and competitive advantages.
Therefore, by pursuing maintenance of scope strategies, management believes that the past strategy has been appropriate and few changes are required in the target markets or the organization's products/services.
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A
customer settled an overdue account in the amount of $800 on
January 16. The customer signed a 30 day promissory note for $700
bearing 12% and gave $100 in cash to the lender. The lender
properly ac
A promissory note is a financial instrument that is a written promise made by one person to pay another person a specific amount of money at a specific time. It is an unconditional promise to pay.
The problem is requiring an understanding of the concept of promissory notes. The given amount is $800. The customer paid the amount of $100 in cash and gave a promissory note of $700 bearing 12% interest for 30 days. The note includes the terms of the debt, including payment amount, interest rate, and due date, among other things. According to the question, the customer settled an overdue account with a $800 payment. He paid $100 in cash and gave the lender a promissory note of $700 for 30 days at an interest rate of 12%.
The lender records the payment as follows: $100 will be recorded as Cash payment, $700 as Notes receivable and $0 as Sales revenue since the customer has not paid the full amount yet. The calculation for interest income on the note is as follows: [tex]$700 × 12% × 30 days/365 days = $6.8493.[/tex]. The lender will record $6.85 as Interest receivable. After 30 days, on February 15, the customer will make the payment for the note.
The payment will be recorded as follows: $700 will be recorded as Notes receivable, $6.85 as Interest revenue, and $0 as Sales revenue. The payment of $706.85 will be recorded as Cash. In conclusion, the journal entry for the customer's payment of the overdue account and the issuance of a 30-day promissory note of $700 bearing 12% interest, with $100 paid in cash, is recorded by the lender as follows:Jan. 16 Cash $100Notes Receivable $700Sales Revenue $0Jan. 16 Interest Receivable $6.85Notes Receivable $6.85Jan. 16 Cash $706.85Notes Receivable $700Interest Revenue $6.85
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how do central banks impact the global economy? responses they keep the global money supply under control, which prevents runaway inflation. they keep the global money supply under control, which prevents runaway inflation. they enforce tight regulations, which limit the mobility of capital and the amount of foreign investment. they enforce tight regulations, which limit the mobility of capital and the amount of foreign investment. they influence the national money supply, which affects the volume of international trade. they influence the national money supply, which affects the volume of international trade. they control the currency exchange market, which determines prices in the international market.
Central banks have a significant impact on the global economy through their control over the money supply, enforcement of regulations, influence on national money supply, and management of the currency exchange market.
Central banks play a crucial role in shaping the global economy through various mechanisms. Here are some key ways in which central banks impact the global economy:
Controlling Money Supply: Central banks regulate the money supply within their respective countries, which can have significant effects on the global economy. By adjusting interest rates, implementing open market operations, and employing other monetary policy tools, central banks aim to keep inflation in check and stabilize the overall economy. This helps prevent runaway inflation that can have negative consequences worldwide.Regulatory Measures: Central banks enforce regulations and policies that aim to maintain financial stability and prevent excessive risk-taking. By imposing tight regulations on financial institutions, central banks limit the mobility of capital and the amount of foreign investment. These regulations help mitigate financial crises and maintain the integrity of the global financial system.Influence on National Money Supply: Central banks' control over the national money supply affects the volume of international trade. Adjustments in interest rates or the implementation of quantitative easing can impact a country's currency value, which, in turn, affects its competitiveness in international trade. Changes in national money supply can lead to currency fluctuations that influence exports, imports, and overall trade balances.Currency Exchange Market: Central banks often intervene in the currency exchange market to manage their country's currency value. By buying or selling currencies, central banks can influence exchange rates, which have implications for international trade and pricing in the global market. These actions can help maintain currency stability, support export-driven economies, and manage trade imbalances.Learn more about Central banks here:
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use the following appropriate amounts to calculate net income: revenues, $10,700; liabilities, $4,100; expenses, $3,600; assets, $17,300; dividends, $1,500.
Net income refers to the difference between revenues and expenses. Revenues are the income earned by a company, while expenses are the costs associated with earning that income. Liabilities are the company's debts or obligations, while assets are the company's resources, including property, equipment, and cash.
Dividends are the portion of the company's profits that are distributed to shareholders.Net income = Revenues - Expenses Revenues = $10,700Liabilities = $4,100Expenses = $3,600Assets = $17,300Dividends = $1,500We can calculate net income as follows:
Total assets = Total liabilities + Shareholders' equity$17,300 = $4,100 + Shareholders' equity Shareholders' equity = $17,300 - $4,100 = $13,200We can then use the following formula to calculate net income:Net income = Revenues - Expenses - TaxesNet income = $10,700 - $3,600 - $0Net income = $7,100Therefore, the net income is $7,100.
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