Answer:
C.
Explanation:
Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.
The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018:
Dr Cr
Stock DEC 31st 2017 23,680
Carriage outward 2,000
Carriage inwards 3,100
Returns 2050 3,220
Purchases and sales 118,740 186,000
Salaries and wages 38,620
Rent 3040
Insurance 780
Motor expenses 6,640
Office expenses 2160
Lighting and heating expenses 1,660
General expenses 3140
Premises 50,000
Motor vehicles 18,000
Fixtures and fittings 3,500
Debtors and creditors 38,960 17,310
Cash at bank 4820
Drawings 12,000
Capital 126,360
332,890 332,890
Additional information
i) Closing stock was valued at ksh 29,460 as at 30th June 2018
ii) Mr kalekeno took part of the stock amounting to ksh 3000 for personal use
iii) Salaries and wages amounting to ksh 8,000 were pre-paid and ksh 360 of motor expenses accrued
iv) Bad debts written off amounted to 860
v) Depreciation is to be provided for as follows:
Premises at 20%
Fixtures and fittings at 15%
Motor vehicles at 25%
All of a above asset were depreciated at cost
a) The income statement for the year ended 30 th June 2018 ( 5marks)
b) The statement of financial position (5 Marks)
Answer:
Stock DEC 31st 2017 23,680
Carriage outward 2,000
Carriage inwards 3,100
Returns 2050 3,220
Purchases and sales 118,740 186,000
Salaries and wages 38,620
Rent 3040
Insurance 780
Motor expenses 6,640
Office expenses 2160
Lighting and heating expenses 1,660
General expenses 3140
Premises 50,000
Motor vehicles 18,000
Fixtures and fittings 3,500
Debtors and creditors 38,960 17,310
Cash at bank 4820
Drawings 12,000
Capital 126,360
332,890 332,890
Additional information
i) Closing stock was valued at ksh 29,460 as at 30th June 2018
ii) Mr kalekeno took part of the stock amounting to ksh 3000 for personal use
iii) Salaries and wages amounting to ksh 8,000 were pre-paid and ksh 360 of motor expenses accrued
iv) Bad debts written off amounted to 860
v) Depreciation is to be provided for as follows:
Premises at 20%
Fixtures and fittings at 15%
Motor vehicles at 25%
All of a above asset were depreciated at cost
a) The income statement for the year ended 30 th June 2018 ( 5marks)
b) The statement of financial position (5 Marks)
Explanation:
A company had total sales of $610,000, net sales of $566,400, and an average accounts receivable of $96,000. Its accounts receivable turnover equals:
Answer:
5.9
Explanation:
Calculation for It's accounts receivable turnover using this formula
Accounts Receivable Turnover = Net Sales amount /Average Accounts Receivable amount
Let plug in the formula
Accounts Receivable Turnover =$566,400/$96,000
Accounts Receivable Turnover = 5.9
Therefore Its accounts receivable turnover equals: 5.9
A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola is ?
Answer:
the cross elasticity of demand between a Pepsi and Coca-Cola is 5
Explanation:
The computation of the cross elasticity of demand is shown below:
= Percentage change in quantity demanded of one product ÷ percentage change in the price of other product
= -50 ÷ -10
= 5
Hence, the cross elasticity of demand between a Pepsi and Coca-Cola is 5
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Wandering RV is evaluating a capital budgeting project that is expected to generate $36,950 per year during its six-year life. If its required rate of return is 10 percent, what is the value of the project to Wandering RV?
Answer:
the value of the project is $16,096.88
Explanation:
The computation of the value of the project is shown below:
= (Expected amount generated per year × (1 - (1 ++ rate of returm)^-time period )) ÷ rate of return
= $36,950 × [1 - 1.1^-6] ÷ 0.1
= $16,0926.88
Hence, the value of the project is $16,096.88
We simply applied the above formula so that the correct value could come
And, the same is to be considered
a community hospital in pennsylvania has a 15% supply expense ratio. If total operating expenses are $1 million this month, what is the total annual cost of supplies
Answer:
$150,000
Explanation:
The question says that the total operating expenses of the hospital is 1 million, while also saying that it has a supply expense ratio of 15%. An expense ratio can be by dividing a fund's total operating expenses it's average dollar value of its assets under it's management. This is what gave us the 15% we got in the question. Now, to get the total supply cost in dollars (not percentage), all we is multiply the percentage by the total cost we were given. Thus,
Total annual cost of supply =
15% * 1,000,000 =
15/100 * 1,000,000 =
$150,000.
Therefore, the total annual cost of supply is $150,000
You would like to invest $24,000 and have a portfolio expected return of 11.5 percent. You are considering two securities, A and B. Stock A has an expected return of 18.6 percent and B has an expected return of 7.4 percent. Approximately how much should you invest in Stock A if you invest the balance in Stock B? a) $7,137 b) $7,411 c) $8,786 d) $8,626 e) $7,807
Answer:
c) $8,786
Explanation:
0.186A + 0.074B = (24,000 x 0.115)
0.186A + 0.074B = 2,760
A + B = 24,000
where A = amount invested in stock A and B = amount invested in stock B
A = 24,000 - B
0.186(24,000 - B) + 0.074B = 2,760
4,464 - 0.186B + 0.074B = 2,760
4,464 - 0.112B = 2,760
4,464 - 2,760 = 0.112B
1,704 = 0.112B
B = 1,704 / 0.112 = $15,214.29
A = $24,000 - $15,214.29 = $8,785.71 ≈ $8,786
To this day, many companies believe that service is a cost rather than a revenue producer. Why might they hold this view? How would you argue the opposite view?
Answer: Difficulty involved in tracing the link between service and financial returns.
Explanation:
Many companies believe that service is a cost rather than a revenue producer due to the following reasons;
- There is this difficulty in tracing the link between service and financial returns.
- Profits are not directly linked to service provided most times, so it seems as though the service rendered was a cost rather than a revenue
- When service is rendeded most times, the results are not seen immediately, as it would require time to get tvalue and profit for what was done.
The balance in the Bonds Payable is a credit of $79,000. The balance in the Premium on Bonds Payable is a credit of $1,600. What is the bond carrying amount?
a. $1,600
b. $80,600
c. $79,000
d. $77,400
Answer:
b. $80,600
Explanation:
The computation of the bond carrying amount is shown below:
= Balance in the bond payable + premium on bond payable
= $79,000 + $1,600
= $80,600
Hence, the bond carrying amount is $80,600
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Therefore the correct option is b.
If you where advising someone on developing a "marketing communications plan", what factors would you address in this selection process?
Explanation:
Marketing Communications Plan can be described as the technique that an organisation or individual uses to attract the attention of consumers through different forms of communication.
Factors to address in the selection of a Marketing Communications Plan is as follows:
1. The first factor to keep in mind is the target market or your target customers.
2. The second factor is the goals and objectives of the said plan.
3. Another important factor is the budget allocated for the plan.
4. Fourth factor is the advertising and promotional policies.
The income statement of Venden Co. for the month of July shows net income of $4,000 based on Service Revenue $8,700, Salaries and Wages Expense $2,500, Supplies Expense $1,700, and Utilities Expense $500. In reviewing the statement, you discover the following.
Answer:
The correct net income is $3,500.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The income statement of Venden Co. for the month of July shows net income of $4,000 based on Service Revenue $8,700, Salaries and Wages Expense $2,500, Supplies Expense $1,700, and Utilities Expense $500. In reviewing the statement, you discover the following.
1. Insurance expired during July of $700 was omitted.
2. Supplies expense includes $250 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $300 was omitted.
4. Accrued but unpaid salaries and wages at July 31 of $400 were not included.
5. Services provided but unrecorded totaled $650.
Instruction: Prepare a correct income statement for July 2017.
Also Note: See the attached excel file for the correct income statement.
In the attached excel file, the following workings are used:
Workings:
w.1. Supplies expense = Total supplies expense already charged – Supplies on hand at July 31 = $1,700 - $250 = $1,450
w.2. Salaries and wages expense = Salaries and wages expense already charged + Accrued but unpaid Salaries and wages expense = $2,500 + $400 = $2,900
w.3. Service revenue = Service revenue already accounted for + Services provided but unrecorded = $8,700 + $650 = $9,350
Ming Company had net income of exist767, 200 based on variable costing. Beginning and ending inventories were 7, 300 units and 4, 700 units, respectively. Assume the fixed overhead per unit was exist2.50 for both the beginning and ending inventory. What is net income under absorption costing? When the number of units sold exceeds the number of units produced, net income under absorption costing will be: Lower than income using variable costing The difference in income is equal to: The number of units subtracted from inventory multiplied by the fixed overhead per unit Net Income under variable costing Fixed overhead per unit Net income under absorption costing
Answer:
Part 1
Absorption Costing Net Income = $760,700
Part 2
Income under absorption costing will be: Lower than income using variable costing
Explanation:
The difference in net income under absorption costing and variable costing is because of fixed costs that are in closing inventory.
If we are given net income under one method we can find the net income under the other method by performing a reconciliation as follows :
Reconciliation of Variable Costing Income to Absorption Costing Income
Variable Costing Net Income $767, 200
Add fixed cost in closing stock (4, 700 × $2.50) $11,750
Less fixed costs in opening stock (7, 300 × $2.50) ($18,250)
Absorption Costing Net Income $760,700
Which of the following choices include only accounts that appear in the asset section of the balance sheet?Multiple Choice Prepaid supplies, unearned revenue, accounts payable Accounts payable, equipment, prepaid insurance Cash, prepaid rent, accounts receivables Common stock, prepaid rent, notes payable
Answer:
C. Cash, prepaid rent, accounts receivables.
Explanation:
A balance sheet can be defined as the financial statement that gives a detailed summary of the financial balance of a business firm or individual at a specific period of time. Therefore, it typically comprises of assets, liabilities, capital, debt, equity etc.
In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, cash, rent and accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, account receivables, cash and rent are assets on the balance sheet, which are listed in order of liquidity.
The choice that include only accounts that appear in the asset section of the balance sheet are Cash, prepaid rent, and accounts receivables.
A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):Cash $ 33,000 Liabilities $ 50,000Other assets 100,000 Playa, capital (40%) 24,000Bahia, capital (30%) 29,000Arco, capital (30%) 30,000Total $ 133,000 Total $ 133,000During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation?Multiple ChoicePlaya, $16,000; Bahia, $23,000; Arco, $24,000.Playa, $19,200; Bahia, $14,400; Arco, $14,400.Playa, $6,000; Bahia, $4,500; Arco, $4,500.Playa, $10,000; Bahia, $18,500; Arco, $19,500.
Answer:
Playa, $10,000; Bahia, $18,500; Arco, $19,500.
Explanation:
Cash $33,000
Other assets $100,000
Total $133,000
Liabilities $50,000
Playa, capital (40%) $24,000
Bahia, capital (30%) $29,000
Arco, capital (30%) $30,000
Total $133,000
other assets sold for $80,000 resulting in a $20,000 loss
cash = $33,000 + $80,000 = $113,000
- liabilities ($50,000)
$63,000
- liquidation expenses ($15,000)
remaining cash $48,000
total loss = $20,000 + $15,000 = $35,000
partners' share of loss:
Playa = $14,000
Bahia = $10,500
Arco = $10,500
remaining capital accounts:
Playa = $24,000 - $14,000 = $10,000
Bahia = $29,000 - $10,500 = $18,500
Arco = $30,000 - $10,500 = $19,500
A $5,000 face value bond has a coupon rate of 6.5%, sells for $5,937, and matures in 7 years. What is its yield to maturity?a. 3.44%.b. 5.47%.c. 6.12%.d. 4.08%.
Answer:
YTM = 0.03495343461 or 3.495343461% rounded off to 3.50%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Assuming that the bond pays coupon annually,
Coupon payment = 5000 * 0.065 = $325
Number of periods remaining till maturity = 7
YTM = [ (325 + (5000 - 5937 / 7)) / (5000 + 5937 / 2)
YTM = 0.03495343461 or 3.495343461% rounded off to 3.50%
If a central bank wishes to reduce inflation, it should announce its intentions and follow through with them, thereby using _________ monetary policy.
A. visible
B. integral
C. credible
D. authoritative
Answer:
C. credible
Explanation:
A credible monetary policy is the policy where the problem of inconsistency of time can be avoided also the biasness of the inflation also it keeps the inflation under a control.
Therefore in the case when the central bank wants to decrease the inflation so they are using the credible monetary policy
Hence, the correct option is C.
If your nominal rate of return is 14.38 percent and your real rate of return is 4.97 percent, what is the inflation rate
Answer:
try 1.35Explanation:
Raymond Co. has $1.1 million of debt, $2 million of preferred stock, and $2.1 million of common equity. What would be its weight on preferred stock?
Answer:
0.3846
Explanation:
Given that :
Amount of debt = $1.1 million
Amount of preferred stock = $2 million
Amount of common equity = $2.1 million
Total value of company's finance funds :
(Amount of debt + Amount of Preffered stock + Amount of common equity)
(1.1 million + 2 million + 2.1 million)
= $5.2 million
Hence, weight on preferred stock:
Amount of preferred stock / total value of company's finance
$2 million / $5.2million
= 0.3846
Hence, weight of Preffered stock = 0.3846
Ticker IBS is traded on the Pacific, Gulf and Atlantic stock Exchanges. The sequence of bids in the consolidated record is:
Time Exchange Bid
10:00:01 Atlantic 23.33
10:00:02 Pacific 23.32
10:00:03 Gulf 23.34
10:00:04 Pacific 23.40
10:00:05 Gulf 23.45
10:00:06 Pacific 23.44
10:00:07 Atlantic 23.43
10:00:08 Gulf 23.40
The NBB at 10:00:07 is:_______
a. 23.32
b. 23.43
c. 23.45
d. 23.44
Answer:
c. 23.45
Explanation:
National best bid (NBB) is the highest bid price across all the nation at a given point of time. In this question, 23.45 is the highest bid price from Gulf before 10:00:07
When the Federal government takes action to change taxes and spending to stimulate the economy such policy is:_________
a. Passive
b. Automatic
c. Discretionary
d. Nondiscretionary
Answer:
c. Discretionary
Explanation:
The discretionary policy is the policy that depends upon the judgement of the people who made the policy. It also deals in the decision making with respect to the monetary and fiscal policy
So here in the given situation, it is mentioned at the time of taking the action by the federal government with respect to change in the taxes and the spending in order to stimulate the economy
So this situation represents the discretionary policy
therefore the option c is correct
OCF from Several Approaches [L01] A proposed new project has projected sales of $125,000, costs of $59,000, and depreciation of $12,800. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches described in the chapter and verify that the answer is the same in each case.
Answer:
Please see below
Explanation:
In order to calculate the operating cash flow, we will get the value of net income. The income statement is calculated as;
Sales
$125,000
Less :
Costs
($59,000)
Depreciation
($12,800)
EBIT
$53,200
Less tax 35%
($18,620)
Net income
$34,580
1. Using the tax shield method
OCF = (Sales - Costs)(1 - Tax) + Tax(Depreciation)
OCF = ($125,000 - $59,000)(1 - 35%) + 35%($12,800)
OCF = ($66,000)(0.65) + $4,480
OCF = $42,900 + $4,480
OCF = 47,380
2. Using the financial calculation
OCF = EBIT + Depreciation - Taxes
OCF = $53,200 + $12,800 - $18,620
OCF = $47,380
3. Using the top down approach
OCF = Sales - Costs - Taxes
OCF = $125,000 - $59,000 - $18,620
OCF = $47,380
4. Using the bottom up approach
OCF = Net income + Depreciation
OCF = $34,580 + $12,800
OCF = $47,380
Motor Sales sold its old office furniture for $9000. The original cost was $17,000, and at the time of sale, accumulated depreciation was $14,000. What is the effect of this transaction?
a. gain of $9000
b. gain of $6000
c. loss of $6000
d. loss of $9000
Based on the given information, the effect of this transaction is a gain of $6000. Thus the correct option is B.
What is depreciation?The continual loss of an asset's worth over time as a result of damage, obsolescence, or other circumstances is known as depreciation. The cost of an asset is divided throughout the asset's useful life using this accounting technique.
To determine the effect of this transaction, we need to calculate the carrying value of the furniture at the time of sale.
Carrying value = Original cost - Accumulated depreciation
Carrying value = $17,000 - $14,000
Carrying value = $3,000
Given that, the furniture was sold for $9,000.
Gain = Sale price - Carrying value
Gain = $9,000 - $3,000
Gain = $6,000
Therefore, the answer B is appropriate.
Learn more about depreciation, here:
https://brainly.com/question/15681635
#SPJ2
The Jewel Golf Club Company, which recently began using a Kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips. How many Kanban containers would Jewel require if a 15% policy variable is used?
a. three or fewer
b. four or five
c. six or seven
d. eight or more
Answer:
c. six or seven
Explanation:
The computation of the number of kanban containers required is shown below:
Number of Kanbans = (Average Demand During lead Time + Safety Stock) ÷ Size of container
= (3,000 units × 0.3 + 0.15 × 3000 × 0.3) ÷ (150)
= (900 + 135) ÷ 150
= 6.9
So the number of kanbans required is 6.9 i.e. it lies between six or seven
hence the correct option is c.
True or False? A Product is a good or service that a customer needs. It can also be an experience that a customer wants.
Answer:
I think it is true.
The three functions of federal government are:
Answer:
i hate school im the CØØCHIEMAN
Explanation:
i hate school i hate school im the coochie manA company expects to sell 15,000 units in the first quarter, 18,000 units in the second quarter, and 20,000 units in the third quarter. The company desires to maintain an inventory at the end of each quarter equal to 10% of next quarter expected sales. How many units does the company plan to produce in the second quarter?
Answer:
the number of units produced in the second quarter is 18,200 units
Explanation:
The computation of the number of units that have to plan for producing in the second quarter is shown below:
= Sales units - opening inventory units + closing inventory units
= 18,000 units - (18,000 units × 10%) + (20,000 units × 10%)
= 18,000 units - 1,800 units + 2,000 units
= 18,200 units
hence, the number of units produced in the second quarter is 18,200 units
Career research and decision making
1. Define your problem related to college or career goals.
Answer: The difficulty of choosing the right career
Explanation: One of the major problems I experienced was choosing the right career for me. When you are young and just got out of high school right away you think about college but, what career is the right one? that was not just my problem but a lot of young adults and teenagers deal with this.
The thing is people feel pressure in going to college and sometimes make bad decisions when choosing a career, thats why is important to take some time before deciding which career studying.
What was the economy like before the corona virus??
Please help!!
5-8 lines
Answer:
BEFORE the virus, the economy was running (not perfectly) but smoothly. You could go to school without the worry of a death sentence. Marriages were more common before the virus. Concerts were available. You could go out and do things. Bears didn't have to leave the mountains for food. Businesses were running easier.
Explanation:
I hope this helps.
Suppose that the Office of Management and Budget provides the accompanying estimates of federal budget receipts, federal budget? spending, and GDP, all expressed in billions of dollars. Calculate the implied estimates of the federal budget deficit as a percentage of GDP for each year. (Enter each response as a percentage rounded to one decimal place. Do not include a plus or minus sign.)Year Federal Budget Federal Budget GDP (0% growth) Deficit as a Receipts (5% growth) Spending (2% growth) % of GDP 2015 $2,329.8 $2,682.6 $14,573.2 %2016 2,446.3 2,736.3 14,573.2 %2017 2,568.6 2,791.0 14,573.2 %2018 2,697.0 2,846.8 14,573.2 %
Answer:
For each year, calculate the budget deficit then make it a percentage of GDP.
Budget Surplus (deficit) = Government receipts - Government Expense
2015
Deficit as percentage of GDP = (2,329.8 - 2,682.6) / 14,573.20
= 2.4%
2016
= (2,446.3 - 2,736.3) / 14,573.2
= 2.0%
2017
= (2,568.6 - 2,791.0) / 14,573.2
= 1.5%
2018
= (2,697.0 - 2,846.8) / 14,753.2
= 1.0%
Answers rounded to one decimal place. and no signs, plus or minus, included, as per the question specification.
A fund of real estate holdings that can be privately held or publicly traded on an exchange is a __________.a. syndicate.
b. limited partnership.
c. real estate investment trust.
d. direct investment fund.
e. mortgage-backed fund.
Answer:
c. real estate investment trust.
Explanation:
Real estate investment trust are businesses that own real estate that is used to generate revenue.
They include office spaces, apartments, hospitals, hotels, shopping malls and so on.
So when there is fund of real estate holdings that can be privately held or publicly traded on an exchange, it is a real estate investment trust.
REIT provides a long term and stable source of income as real estate properties tend to appreciate over time. They also pay lower corporate tax
Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.8. If the stock market increases in value by 5 percent, what is the expected increase in value for the World-Wide Productions stock?
Answer:
Stock increase = 14%
Explanation:
Market increase = 5%
Stock Beta = 2.8
Stock increase = Stock beta * Market Increase
Stock increase = 2.8*5%
Stock increase = 0.14
Stock increase = 14%