Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its _____________ or cut ___________________. I believe the government spending multiplier is ____________ than the tax multiplier, so I favor _____________________.

Answers

Answer 1

Answer:

The correct answer is:

Government should either raise its expenditures or cut taxes. I believe the government spending multiplier is greater than the tax multiplier, so I favor this policy.

Explanation:

To begin with, an "expansionary fiscal policy" represents the tool that a government has in order to give response to a recessionary context in where the economy is falling down by decreasing its production. That is why, that in this type of policy the actions that are to be taken comprehends the reduction of taxes that the public sector collects from the private sector and also to increase the public expenditures that the government has with the purpose to estimulate the demand and offer of goods.  


Related Questions

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2010. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: Assume the equity method is applied. 8. Compute Pell's income from Demers for the year ended December 31, 2010. A. $74,400. B. $73,000. C. $42,400. D. $41,000. E. $80,000.

Answers

Answer:

$74,400

Explanation:

Pell Company

Pell's income from Demers for the year ended December 31, 2010

Controlling Interest Share of Net Income for 2010- Excess Fair value Annual Amortization

Controlling Interest Share of Net Income for 2010= ($100,000 × .80) $80,000

Less Excess Fair Value Annual Amortization =($7,000 × .80) $5,600

Pell Income= $74,400

Consider the following 2011 data for Newark General Hospital (in millions of dollars):__________.
Static Flexible Actual
Budget Budget Results
Revenues $4.7 $4.8 $4.5
Costs 4.1 4.1 4.2
Profits 0.6 0.7 0.3
Calculate and interpret the profit variance.
=Actual profit-Static profit
=$0.3-$0.6
=-$0.3
There is an unfavorable profit variance which means that the company earned less that it prepared for.
Calculate and interpret the revenue variance.
=Actual revenues-Static Revenues
=$4.5-$4.7
=-$0.2
There is an unfavorable revenue variance, because the company sold less than it planned for.
Calculate and interpret the cost variance.
=Static Cost-Actual Cost
=4.1-4.2
=-$0.1
There is an unfavorable cost variance, this means that the company spent more than it planned for.
Calculate and interpret the volume and price variances on the revenue side.
Volume variance=Flexible Revenue-Static Revenue
=$4.8-$4.7=$0.1
Favorable because the company sold more units than it planned for.
Price variance=Actual Revenues-Flexible Revenues
=$4.5-$4.8=-$0.3
The answer is unfavorable because the company sold it products at a lower price than plan which might have actually resulted to the increase in actual volume sold.
Calculate and interpret the volume and management variances on the cost side.
Volume variance=Static cost –Actual Cost
=$4.1-$4.1=$0
Favorable which means that regardless of the fact that the company sold more units, the company produce the same number of units it plan for.
Management variance=Flexible Cost –Actual Costs
=$4.1-$4.2=$0.1
This is unfavorable which means maybe as a result of the higher units sold, the company had to spend more in servicing these units resulting to cost inefficiency for the period.
How are the variances calculated above related?
The above variances are associated, as the increase in volume, should increase the revenue and cost proportionality. However, it has not increased in the same portion. Therefore, there are unfavorable variances.

Answers

Answer:

Calculate and interpret the profit variance.

profit variance = actual profit - budgeted profit = $0.3 - $0.7 = -$0.4 U

The profit variance is unfavorable because actual profit was lower than the budgeted profit. Whenever we have a static and a flexible budget, we must use the flexible budget to calculate the variances. Not only revenues were lower than expected, but also costs were higher than expected.

Calculate and interpret the revenue variance.

revenue variance = actual revenue - budgeted revenue = $4.5 - $4,8 = -$0.3 U

The revenue variance is unfavorable because revenue was lower than expected. This means that they either had less patients or charged less per patient.

Calculate and interpret the cost variance.

cost variance = actual costs - budgeted costs = $4.2 - $4,1 = $0.1 U

When we analyze costs variances, positive numbers represent unfavorable variances because actual costs were larger than budgeted. It is the opposite to what happens with revenue and profit variances.

In this case, actual costs were larger than expected, which means that the hospital spent more money than budgeted.

Calculate and interpret the volume and price variances on the revenue side.

volume variance = flexible revenue - static revenue = $4.8 - $4.7 = $0.1 F

the flexible budget shows higher numbers because the number of patients was higher than expected.

price variance = actual revenue - flexible revenue = $4.5 - $4.8 = -$0.3 U

even though the volume variance was favorable, more patients, the price charged was lower than expected because total revenue was lower than the flexible revenue.

Calculate and interpret the volume and management variances on the cost side.

volume variance (cost) = actual costs - budgeted costs = $4.2 - $4.1 = $0.1 U

When cost variances are positive, they are unfavorable because expenses were higher than expected. This means that the hospital spent more money than they had planned for carrying out the same amount of procedures.

management variance = actual costs - budgeted costs = $4.2 - $4.1 = $0.1 U

Since costs were higher than expected, this means that the hospital's management didn't perform properly. In this case, all variances show that management didn't work well. Revenues were lower than expected, costs were higher than expected and profits were lower. They should be glad that this is just a question, in real life they would be in serious problems for poor performance.

Explanation:

                                               Static         Flexible         Actual

                                               Budget      Budget          Results

Revenues                                $4.7            $4.8              $4.5

Costs                                       $4.1             $4.1               $4.2

Profits                                      $0.6            $0.7              $0.3

The phone bill for a corporation consists of both fixed and variable costs. Refer to the fourminusmonth data below and apply the highminuslow method to answer the question. Minutes Total Bill January 470 $ 4 comma 500 February 200 $ 2 comma 695 March 180 $ 2 comma 650 April 320 $ 2 comma 830 If the company uses 390 minutes in​ May, how much will the total bill​ be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest​ dollar.)

Answers

Answer:

Total cost= $3,989.65

Explanation:

Giving the following information:

Minutes Total Bill

January 470 $4,500

February 200 $2,695

March 180 $2,650

April 320 $2,830

First, we need to calculate the unitary variable cost and fixed costs:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,500 - 2,650) / (470 - 180)

Variable cost per unit= $6.37931

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,500 - (6.37931*470)

Fixed costs= $1,501.72

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,650 - (6.37931*180)

Fixed costs= $1,501.72

If the company uses 390 minutes in​ May:

Total cost= 1,501.72 + 6.37931*390

Total cost= $3,989.65

German brothels recently began offering a monthly subscription service for multiple purchasers. If you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? Suppose a particular patron at a German brothel has the following willingness-to-pay schedule for services at the brothel, per session. Session Willingness to Pay 1st $105 2nd $90 3rd $75 4th $60 5th $45 6th $30 Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the brothel, per session, is constant at $15. At a price of $82.50 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is

Answers

Answer:

The pricing plan of the is even more immoral to buttress that the fact that brothel was encouraged, the fact that subscription packages was introduced will enhance the practice of prostitution which also has a pricing system which is aimed at I creasing the producer surplus.

Explanation:

Given the following :

Session - - - - - Willingness to Pay

1st - - - - - $105

2nd - - - - $90

3rd - - - - -$75

4th - - - - - $60

5th - - - - - $45

6th - - - - - $30

At price of $82.50 per session, the number of sessions demanded by this consumer will be 2.

Consumer surplus = ($105 - $82.50) = $22.50

Producer surplus = ($82.50 - $22.50) = $60

Financial aspects of employment
Wang Min and Roger are friends from college and both have received offers for entry level positions at a San Francisco corporation in their related fields. Wang Min and Roger would like to room together in San Francisco.
Consider Wang Min and Roger’s personal situations, assuming the city indices are:
Boston: 151
San Francisco: 135
Cleveland: 99
Consider the following scenarios:
Wang Min
Wang Min Wang Min is from Boston, where the cost of living is higher than it is in San Francisco. Wang Min’s parents are discouraging her from taking the position because they would like her to live at home for a while, find a job in the area, and save some money. Wang Min has already convinced her parents that she will live on her own even if she finds a job in Boston. Wang Min took a personal finance course and knows how to compare salaries in different cities. Wang Min has been offered $25,000 to work in San Francisco.
Roger
Roger is from Cleveland, where the cost of living is lower than it is in San Francisco. Roger’s parents are encouraging him to take the position because jobs are hard to come by in Cleveland and he will be able to get a good start to his career and save some money. Now, he wants to make sure that the offer in San Francisco is worth the move. Roger has been offered $30,000 to work in San Francisco.

Answers

Answer:

Wang Min's situation:

Boston: 151

San Francisco: 135

If Wang Min wishes to consider a similar offer in Boston, the offer should be for at least = ($25,000/135) x 151 = $27,963. Since San Francisco is "cheaper" than Boston, she should earn more money in Boston in order to consider a comparable offer.

Roger's situation:

Cleveland: 99

San Francisco: 135

If Roger wishes to consider a similar offer in Cleveland, the offer should be for at least = ($30,000/135) x 99 = $22,000. Since San Francisco is "more expensive" than Cleveland, he should earn less money in Cleveland in order to consider a comparable offer.

Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $122
Units in beginning inventory 0
Units produced 8,300
Units sold 8,200
Units in ending inventory 100

Variable costs per unit:
Direct materials $27
Direct labor $46
Variable manufacturing overhead $4
Variable selling and administrative $7

Fixed costs:
Fixed manufacturing overhead $199,200
Fixed selling and administrative $106,600

Required:

a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare an income statement for the month using the contribution format and the variable costing method.
d. Prepare an income statement for the month using the absorption costing method.
e. Reconcile the variable costing and absorption costing operating incomes for the month.

Answers

Answer:

a. $77

b. $101

c.Income statement for the month using the contribution format and the variable costing method.

Sales ( $122 × 8,200)                                                                       1,000,400

Less Cost of Sales

Opening Stock                                                                      0

Add Cost of Goods Manufactured (8,300× $77)           639,100

Less Closing stock ( 100 × $77)                                        (7,700)    (631,400)

Contribution                                                                                       369,000

Less Expenses

Fixed manufacturing overhead                                                      ($199,200)

Variable selling and administrative ($7×8,200)                                (57,400)

Fixed selling and administrative                                                    ($106,600)

Net Income / (Loss)                                                                                5,800

d.Income statement for the month using the absorption costing method.

Sales ( $122 × 8,200)                                                                       1,000,400

Less Cost of Sales

Opening Stock                                                                      0

Add Cost of Goods Manufactured (8,300× $101)           838,300

Less Closing stock ( 100 × $101)                                        (10,100) (828,200)

Contribution                                                                                       172,200

Less Expenses

Variable selling and administrative ($7×8,200)                                (57,400)

Fixed selling and administrative                                                    ($106,600)

Net Income / (Loss)                                                                                8,200

e.Reconcile the variable costing and absorption costing operating incomes for the month

Absorption Costing Net Profit                                                               8,200

Add Fixed Costs in Opening Stock                                                           0

Less Fixed Costs in Closing Stock (100 × $24)                                   (2,400)

Variable Costing Net Profit                                                                    5,800

Explanation:

Product Cost (Variable Costing) = All Variable Manufacturing Costs

                                                     = $27 + $46 + $4

                                                     = $77

Product Cost (Absorption Costing) = All Variable Manufacturing Costs + All Fixed Manufacturing Costs

                                                          = $77 + ($199,200/8,300)

                                                          = $77 + $24

                                                          = $101

Income Statements

Non Manufacturing Costs are treated as a Periodic Cost in Absorption Costing Income Statement

Whilst Both Fixed Manufacturing Costs and Non Manufacturing Costs are treated as a Periodic Cost in Variable Costing Income Statement.

Reconciliation

The difference in Profit is due to Fixed Cost component absorbed in Absorption Costing.

Suppose you win the lottery and have two options: A. Take $1 million now. B. Take $1.2 million to be paid out as 300,000 now and then $300,000 a year for 3 years. Which is the better deal? Assume that the interest rate is 10%. Please show your work. (4 point)

Answers

Answer:

A. Take $1 million now.

Explanation:

A. If we take $1 million now the present value of the money is $1 million.

B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;

$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728

$300,000 + $250,000 + $208,000+ $173,611 = $931,944

The present value of option B is less than present value of option A. We should select option A and take $1 million now.

"Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $522,000, a 3 year life, and no salvage value. If the accounting rate of return for the project is 6%, what is the annual increase in net cash flow

Answers

Answer:

$31,320.00

Explanation:

The formula for accounting rate of return is the annual net cash flow divided by the initial investment.

If the initial investment was $522,000 and the accounting rate of return is computed to be 6% per year, hence the annual increase in cash flow accruing from the investment can be calculated by changing the subject of the formula.

ARR=annual increase in cash flow/initial investment

ARR is 6%

initial investment is $522,000

annual increase in cash flow?

6%=annual increase in cash flow/$522,000

annual increase in cash flow=6%*$522,000= $31,320.00  

A company began its fiscal year with inventory of $191,000. Purchases and cost of goods sold for the year were $950,000 and $984,000, respectively. What was the amount of ending inventory

Answers

Answer:

Ending inventory= $157,000

Explanation:

Giving the following information:

Beginning inventory= $191,000.

Purchases and cost of goods sold for the year were $950,000 and $984,000.

To calculate the ending inventory, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

984,000= 191,000 + 950,000 - ending inventory

984,000= 1,141,000 - ending inventory

Ending inventory= $157,000

Shawn and Harry signed a contract for Shawn to build a house for Harry according to the specifications provided by Harry. The contract stated that Shawn would be paid $125,000. Shawn unintentionally deviated from the specifications in several minor respects. The house was soundly constructed, and Shawn completed the work within the promised time. Harry refused to pay Shawn any of the $125,000, arguing that the house did not conform to the specifications. In this case,
A) Harry will get a decree of specific performance.
B) Shawn has no right to be paid for any of his work because he breached the contract.
C) if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised.
D) if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused to him because of the delay in payment.

Answers

Answer:

C) if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised.

Explanation:

From the question Harry signed a contract with Shawn to build a house. Harry made some specification to build the house. But Shawn did not follow the specifications now Harry doesn't want to pay him the contract amount.

Under doctrine of specific performance, Harry can pay less money than the contract price. Because Shawn has performed substantially, he is not entitled to receive the contract price as agreed.

g Transfer payments are a. included in GDP because they represent income to individuals. b. included in GDP because they eventually will be spent on consumption. c. not included in GDP because they are not payments for currently produced goods or services. d. not included in GDP because taxes will have to be raised to pay for them.

Answers

Answer: c. not included in GDP because they are not payments for currently produced goods or services.

Explanation: Transfer payments are usually not included in the GDP because they do not represent payments made for recently produced goods or services.

The Gross Domestic Product (GDP) is the monetary value attached to all finished goods and services produced within a country during a time period.

A city issued bonds on July 1. Interest of $600,000 is payable the following January 1. On December 31, the city transfers the required $600,000 from its general fund to its debt service fund. On its December 31 debt service fund statement of revenues, expenditures, and changes in fund balance, the city :______

a. Must report interest expenditure of $0
b. Must report interest expenditure of $600,0000
c. Must report interest expenditure of $500,000
d. May report interest expenditure of either $0 or $600,000

Answers

Answer:

d. May report interest expenditure of either $0 or $600,000

Explanation:

Government entities used modified accrual accounting system and one of the main difference with accrual accounting system used by private businesses is that they do not have to report accrued interests on their end of year balance sheets. They can choose to report them or not, it is optional.

Botswana Electronics Company (BEC), is contemplating a research and development program encompassing eight major projects. The company is constrained from embarking on all of the projects by the number of available scientists (40) and the budget available for the projects ($300,000). What are the resource requirements and the estimated profit for each project?

Answers

Explanation:

Note that we are told that Botswana Electronics Company (BEC) is constrained because of the number of available scientists (40) and the budget available for the projects ($300,000). Since this is an Electronics production company much of the needed resources includes metals, cables, power, as well as specialised workforce.

Using conservative estimates for the eight project, the profit for each project should be $37,500 b($300,000/8)

The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $55,000 $50,000 Useful life 12 years 15 years Estimated residual value $5,000 $6,000 Estimated total income over the useful life $57,600 $63,000 Determine the expected average rate of return for each project.

Answers

Answer:

Project                            Average rate of return

A                                                 16%

Z                                                    15%

Explanation:

The average rate of return (ARR) is the proportion of the average investment that is earned as profit.

Average rate of return(ARR) = average operating income/ Average investment

Project A=

Average income = 57,600/12 = 4800

Average investment = (55,000 + 5,000)/2 = 30000

ARR = 4,800/30,000 × 100 = 16%

Projecr Z

Average income = 63,000/15= 4200

Aveage investment = (50,000 + 6,000)/2= 28,000

ARR = 4,200/28,000× 100 = 15%

Jacquie Inc. reports the following annual cost data for its single product.
Normal production and sales level 70,000 units
Sales price $ 57.00 per unit
Direct materials $ 10.00 per unit
Direct labor $ 7.50 per unit
Variable overhead $ 12.00 per unit
Fixed overhead $ 1,050,000 in total
Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal place.)
Production volume
Cost of goods sold: 72000 units 104000 units
Cost of goods sold per unit
Number of units sold
Total cost of goods sold
Jacquie Inc.
Income statement through gross margin
Sales volume
72000 units 72000 units
If Jacquie increases its production to 104000 units, while sales remain at the current 72000 unit level, by how much would the company?

Answers

Answer:

Cost of goods sold:

72,000 units = $3,174,000104,000 units = $4,118,000

Cost of goods sold per unit:

72,000 units = $44.08104,000 units = $39.60

A comparative income statement showing the different production and sales levels:

                                 70,000 units         72,000 units     104,000 units

Total sales                $3,990,000            $4,104,000      $5,928,000

COGS                       ($3,115,000)            ($3,174,000)     ($4,118,000)  

Gross profit                  $875,000              $930,000       $1,810,000

If Jacquie increases its production to 104000 units, while sales remain at the current 72000 unit level, by how much would the company?

Total sales       $4,104,000

COGS             ($2,851,200)

Gross profit     $1,253,000

If the production level is 104,000 units, but only 72,000 are sold, net profits will increase by $323,000 (= $1,253,000 - $930,000). The remaining 32,000 units will be reported as ending inventory of finished goods.

Explanation:

                              normal production   72,000 units      104,000 units

direct materials            $700,000            $720,000          $1,040,000

direct labor                   $525,000            $540,000            $780,000

variable overhead       $840,000            $864,000          $1,248,000

fixed overhead          $1,050,000          $1,050,000          $1,050,000

total                             $3,115,000           $3,174,000           $4,118,000

cost per unit                 $44.50                  $44.08                   $39.60

glass co. had net income of $70,000 during the year. Depreciation was $10,000. the following information is available: accounts receivable increase (sale price $100,000) non trade notes payable increased by 50,000, equipment purchases increased by 40,000 account payable increase 30,000. what amount should galss report as net cash provided by investing activities

Answers

Answer:

Net cash from investing activities      (40,000)

Explanation:

The investing activities are those that pertain to the purchase and sales of non-current assets and marketable securities.

Example of such includes the sales and purchase of property plant an equipment. Therefore, the only item to be considered here is the purchase of equipment.

                                                               $

Investing activities

Equipment purchase                        (40,000)

Net cash from investing activities      (40,000)

The term _____ can be best defined as a feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination. a. reciprocity b. empowerment c. utility d. autonomy e. delegation

Answers

Answer:

D

Explanation:

The self determination theory is a theory of motivation that examines extrinsic and intrinsic motivation.

The theory states that humans have innate needs. If this needs are satisfied, humans would grow and function optimally. They include :

1. Autonomy - the desire to be in charge of one's life. It is the feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination

2. Relatedness - the desire to relate and interact with other people.

3. Competence. This is the desire to achieve mastery.

Autonomy is when

Answer:

b. empowerment.

Explanation:

This is explained to be a great act of giving someone power, this is in the form of more freedom and also rights to be productive. This gives the said person a natural flay; if seen in a business place or at place of work, it gives the worker or workers a sense of collaboration, making them share values, pull resources together and happily achieve goals that sharpen their psychs and make the company take great steps to greater heights as this empowerment is not only for the company, because it makes the said workers determined and also self competent in their working activities.

At December 31, Idaho Company had the following ending account balances:
Retained Earnings $250,000
Preferred Stock ($100 par, 7% cumulative, 10,000 authorized,
5,000 issued and outstanding) 500,000
Treasury Stock 40,000
Paid-In Capital in Excess of Par—Common Stock 625,000
Paid-In Capital in Excess of Par—Preferred Stock 50,000
Common Stock ($5 par value, 500,000 shares authorized,
105,000 issued) 525,000
Required:
Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.

Answers

Answer:

Balance of Stockholder's Equity at December 31 is $1,910,000.

Explanation:

This will appear as follows

Idaho Company

Details                                                                         $      

Stockholder's Equity:

Common Stock                                                       525,000

Preferred Stock                                                      500,000

Additional Paid-In Cap. - Common Stock             625,000

Additional Paid-In Cap. - Preferred Stock              50,000

Treasury Stock                                                        (40,000 )

Retained Earnings                                                  250,000  

Balance at December 31                                       1,910,000  

The stockholders' equity or the share capital of the company is the amount of capital that is the ownership of investors of shareholders of the company over the assets and debts of the company.

The equity shareholder's are the true owners of the company as they are legible for decision making and voting's.

The stockholders' equity section of the balance sheet includes: common shares, preferred shares, retained earnings, and treasury stock.

The stockholders' equity section of the balance sheet is prepared in the image attached below.

To know more about stockholders' equity, refer to the link:

https://brainly.com/question/13278063

g invested $800,000 in a new CNC hot wire cutting machine. They intend to sell foam products fabricated using this machine. At an interest rate of 12% per year compounded quarterly, the quarterly income required to recover the investment in 3 years is (choose closet answer):

Answers

Answer:

Quarterly income = $ 36,643.03

Explanation:

The quarterly income ca be determined using the present value of the annuity technique.

The Present Value of the annuity technique

PV = A × ((1- (1+r)^(-n)/r

A- quarterly payment, n- number of quarters, quarterly rate, PV - Present of investment

A- ?  n -3× 12= 36, r-12%/4= 3%

800,000 = A×  (1- (1.03)^(-36)

800,000 = A×  (1- (1.03)^(-36)

800,000 = A × 21.8322525

A = 800,000/21.8322525

A= 36,643.03

Quarterly income = $ 36,643.03

A toy manufacturer has just learned that the small, button nose on the stuffed teddy bear it produces might detach and become a choking hazard young children. If this company is using a defensive strategy, it might:___________.
a) recall the stuffed bears, offer a refund to all customers, and redesign the bear to have a felt nose.
b) issue a statement apologizing for the choking hazard and recall the stuffed bears.
c) daim that if parents put the bear in the washing machine, the button stitching will come loose, causing it to detach. As a result, parents should not put the bear in the washing machine.
d) create a set of industry-wide guidelines to help prevent choking hazards on toys for children. It pay to be socially responsible

Answers

Answer:

The correct answer option is B

Explanation:

The company would issue a statement apologizing for the choking hazard and recall the stuffed bears.

A defense strategy is one in which the toy manufacturing company accepts responsibility for a problem, even though they would do the least required to meet societal expectations.

The toy manufacturer might issue a statement apologizing for the choking hazard and recall the stuffed bears. In this case the company has accepted responsibility and done the least required to meet societal expectations.

A lockbox plan is most beneficial to firms that a. receive payments in the form of currency, such as fast food restaurants, rather than in the form of checks. b. have widely dispersed manufacturing facilities. c. have suppliers who operate in many different parts of the country. d. have a large marketable securities portfolio and cash to protect. e. have customers who operate in many different parts of the country.

Answers

Answer:

E. Have customers who operate in many different parts of the country.

Explanation:

Details about a lockbox plan and services explains that this is a banking service to companies by a certain bank or banks that proceeds and receives receipts of payments from its customers where they are directly channeled to a plan inwhich they work with the bank on behalf of the company instead of contacting the said company as the bank helps or fastens the receipt processing and. The lockbox is virtually known to be advantageous to customers who operate in many different parts of the country.

It is generally known to assist companies with a very efficient way of depositing customer payments, this is for companies that find it a bit hard to check and respond to mails.

g Job 397 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 44,000 Direct labor-hours 630 DLHs Direct labor wage rate $ 12 per DLH Number of units completed 2,000 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $12 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.

Answers

Answer:

$29.56

Explanation:

The computation of unit product cost is shown below:-

Unit product cost = (Direct material + Direct labor + Manufacturing overhead) ÷ Number of units completed

= ($44,000 + (63 × $12) + ($12 × 630)) ÷ 2,000

= ($44,000 + $7,560 + $7,560) ÷ 2,000

= $59,120 ÷ 2,000

= $29.56

Therefore for computing the unit product cost we simply applied the above formula.

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $123Units in beginning inventory 0Units produced 6,400Units sold 6,100Units in ending inventory 300Variable costs per unit: Direct materials $45 Direct labor $30 Variable manufacturing overhead $1 Variable selling and administrative $8Fixed costs: Fixed manufacturing overhead $140,800Fixed selling and administrative $91,500What is the net operating income for the month under variable costing?a) $12,200b) ($17,200)c) $5,600d) $6,600

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $123

Units sold= 6,100

Variable costs per unit:

Direct materials $45

Direct labor $30

Variable manufacturing overhead $1

Variable selling and administrative $8

Fixed costs:

Fixed manufacturing overhead $140,800

Fixed selling and administrative $91,500

First, we need to calculate the total variable cost per unit:

Variable cost per unit= 45 + 30 + 1 + 8= $84

Income statement:

Sales= 6,100*123= 750,300

Total variable cost= 6,100*84= (512,400)

Contribution margin= 237,900

Fixed manufacturing overhead= (140,800)

Fixed selling and administrative= (91,500)

Net operating income= 5,600

Bergstrom accepted the return of merchandise by a customer. The merchandise had been sold on account, and payment had not been received on the date of return. The returned goods retailed for $400, but cost Bergstrom only $300. The appropriate journal entry for Bergstrom is:

Answers

Answer:

Debit Sales Return and allowances $400

Credit Accounts receivable $400

Explanation:

In the given scenario the sale was made on account. That means that no money was collected for the transaction.

So we do not consider the $300 it would cost Bergstrom.

When a good is sold on account, the accounts receivable is debited for the sale amount ($400). As the customer pays the money owed the account is credited to balance it up.

In this case however the good is being returned. So we will debit the Sales Return and Allowance account to recognise the returned item.

Accounts receivable is credited to remove the credit sale since the product has been returned.

Skip owns a business. Since demand is on the rise, he decided to purchase an upgraded machine that will produce four times as fast as his previous machine. The cost of the new machine is $400,000 and will be the only depreciable property that Skip places in service during 2019. What is the amount of his Section 179 deduction for 2019

Answers

Answer: $400,000

Explanation:

According to Section 179 on deducting Expenses issued by the IRS, a company may deduct the cost of certain assets when they are first put into service.

The Assets include tangible assets such as equipment and machinery so long as they are purchased for business use.

Skip bought the equipment for $400,000 and as such can deduct this entire amount under Section 179.

Black Sparrow Aviation, Inc. is concerned they are not maintaining adequate liquidity. The accounting department has provided you, the newly hired finance manager, with the following ratios:
1. Current ratio 4.5 Industry norm 4.0
2. Quick ratio 2.0 Industry norm 3.1
3. Inventory turnover 6.0 Industry norm 10.4
4. Average collection period 73 days Industry norm 52 days
5. Average payment period 31 days Industry norm 40 days
Discuss · In your opinion, what do these ratios indicate about Black Sparrow Aviation, Inc.?
A. What recommendations would you make based on these ratios?
B. What results do you think you can achieve if your recommendations are followed?
C. Why might your recommendations not be effective?

Answers

Answer:

Black Sparrow Aviation, Inc.

1. Indications from ratios about Black Sparrow Aviation:

The current ratio of 4.5 is higher than the industry's norm of 4.0.  This indicates that working capital elements are not being managed properly.  This is supported by the the remaining four ratios.  Inventory level is not optimal.  More inventory is held without being sold to customers.  Obviously, from the inventory turnover of 6.0 translating to approximately 61 days that it takes the company to sell its inventory as against the industry average of 35 days, it shows that the marketing and sales forces lack stamina.  Debt collection from customers is over-delayed, showing poor credit policy and management.  Perhaps, it takes the company many days to issue invoices.  More time than necessary is allowed to customers to pay compared to the industry norm.  In addition, payments are made to suppliers 11 days earlier than the industry average.  Advantage is not being taken of trade credit offered by suppliers.   Trade credit is an important source of funding operations, which every company should utilize to the maximum.

2A.  Based on the above ratios, I would recommend:

1. Minimum inventory should be maintained.

2. Sales efforts should be intensified, so that more sales are made each year than it is currently the case.

3. Debt collection is an important activity for every company that sells on account.  This activity should be taken seriously.  Credit extension to customers should not exceed 50 days.

4. Payments to suppliers can be delayed by more 10 days without offending suppliers.

2B. Results from Recommendations:

1. Working capital is not tied in inventory.

2. More debts are recovered from customers and on time.  Delay increases credit default.

3. More sales are made to customers, increasing the turnover.  The profit is always in the frequency of turnover.

4. Short-term financing is obtained from suppliers, which strengthens liquidity.

Explanation:

Liquidity management is a financial management tool, which describes a company's ability to meet financial obligations through cash flow, funding activities, and capital management in order to minimize the risks associated with illiquidity.

Calculation, analysis, comparison of ratios are some of the ways to make informed decisions on liquidity management.  Ratios should be compared over many periods, with best performing competitors, and the industry norm to ascertain the position of the reporting entity.

"Isidore Crocker, CEO of Gotham Engines, is strongly in favor of acquiring Carolina Textiles, a firm in an unrelated industry. Some members of the board of directors are questioning Crocker's motives for the acquisition. They argue that it is not uncommon for CEOs to push for acquisitions because: Group of answer choices"

Answers

Answer:

higher CEO pay is related to larger organization size

Explanation:

Since in the given situation, Isidore Crocker, who is the CEO of Gotham Engines want to acquire the Carolina Textiles who deal in an unrelated industry. But the board of directors questioning that what is the motive for this. At the same time it is also not uncommon for CEO as the larger part of the company profit is paid to CEO that is related to the size of the organization

In other words, the higher the CEO salary, the larger is the size of the organization

At a lump-sum cost of $72000, Sunland Company recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit M 4600 $4.05 N 2300 12.60 O 6600 6.60 The appropriate cost per unit of inventory is: M N O $3.63 $11.28 $5.91 $3.20 $9.95 $5.21 $5.33 $5.33 $5.33 $4.05 $12.60 $6.60

Answers

Answer:

M = $3.20

N = $9.95

O = $5.21

I believe it is the second option.

Explanation:

Item              No. of Items Purchased              Resale Price Per Unit

M                             4,600                                         $4.05

N                             2,300                                        $12.60

O                             6,600                                         $6.60

total resale price:

M = 4,600 x $4.05 = $18,630N = 2,300 x $12.60 = $28,980O = 6,600 x $6.60 = $43,560total = $91,170

markup % = ($91,170 - $72,000) / $72,000 = 26.625%

purchase cost per unit:

M = $4.05 / ( 1 + 26.625%) = $3.20N = $12.60 / ( 1 + 26.625%) = $9.95O = $6.60 / ( 1 + 26.625%) = $5.21

Chang Industries has 1,200 defective units of product that have already cost $13.20 each to produce. A salvage company will purchase the defective units as they are for $4.20 each. Chang's production manager reports that the defects can be corrected for $6.80 per unit, enabling them to be sold at their regular market price of $19.40. The incremental income or loss on reworking the units is: Multiple Choice $18,240 income. $10,080 loss. $8,160 loss. $15,120 income. $10,080 income.

Answers

Answer:

$10,080 income

Explanation:

The computation of  incremental income or loss on reworking the units is shown below:-

Incremental income on reworking unit = Sales after reworking - Sales to salvage company - Incremental cost

= (1,200 × $19.40) - (1,200 × $4.20) - (1,200 × $6.80)

= $23,280 - $5,040 - $8,160

= $10,080 income

Therefore for computing the Incremental income on reworking unit we simply applied the above formula.

Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts of $525,000 for Apri, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable is $400,000 on April 1
Prepare a schedule of budgeted cash receipts for April, May, and June Answer is complete but not entirely correct. April May Jur 30% |$ 157,500 $ 160,5000$ 70% Cash sales 374,500 535,000 5 Sales on account 367,500 Total sales $ 525,000 $ JASPER COMPANY Cash Receipts Budget For April, May, and June

Answers

Answer:

Jasper Company

Cash Receipts Budget for April, May, and June:

                                        April             May              June               Total

Cash Sales 30%         $157,500      $160,500      $168,000        $486,000

Credit Sales 70%         400,000       367,500        374,500         1,142,000

Total                           $557,500    $528,000     $542,500     $1,628,000

Explanation:

1. Cash Receipts Budget shows the estimated cash receipts from customers and other sources.

2. Calculations:

a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500.  The difference of 70% is received in May.

b) Sales received on account for April = 100% of Accounts Receivable = $400,000.

c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500.  The difference of 70% is received in June.

d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000.  The difference of 70% is received in July.

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