Garcia company has 10,000 units of its product that were produced last year at a total cost of $150,000. the units were damaged in a rain storm because the warehouse where they were stored developed a leak in the roof. garcia can sell the units as is for $2 each or it can repair the units at a total cost of $18,000 and then sell them for $5 each. calculate the incremental net income if the units are repaired
Answer and Explanation:
The computation of the incremental net income is shown below:
Particulars Sell Process Further Incremental Net income
Sales $20,000.00 $50,000.00 $30,000.00
(10,000 units × $2) (10,000 × $5)
Less:
Additional
Processing cost $18,000.00 $18,000.00
Total $20,000.00 $32,000.00 $12,000.00
________is the interest that the bank pays you on the principal plus on the_________ that you earned the preceding year.
Answer:
Compound interest; interest.
Explanation:
Compound interest can be defined as the interest that the bank pays you on the principal plus on the interest that you earned the preceding year. Thus, it is simply calculated by adding an interest to the initial principal i.e compounding the interest rather than withdrawal.
Mathematically, compound interest is given by the formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Answer:
its compound interest and interest
what are the problems encountered in dealing with the depreciation of non-current assets?
Answer:
The causes of depreciation are: Wear and tear. Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced. Other assets, such as buildings, can be repaired and upgraded for long periods of time. Non-current assets are usually valued by deducting the accumulated depreciation from the original purchase cost. For example, if a business bought a computer for $2100 two years ago, this is a non-current asset and it's subject to depreciation.
Explanation:
State the following statement is True or False, and explain why. Thor who lives in Montana purchased a car produced in Japan for $30,000. His purchase decreased GDP by $30,000.
Answer:
false
His purchase left GDP unchanged
Consumption of non durables would increase.
Also, net export would decrease.
these effects would cancel out
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
The Grays live in Clay County, which is adjacent to Jackson County. Although the retail stores in both counties are comparable, the Grays usually drive a few extra miles to shop in Jackson County. As to why the Grays might do this, consider the following: a. Clay County is in a different state than Jackson County. b. Clay County and Jackson County are in the same state.
Answer:
An ad-valorem tax is type of the tax applied the value of an underlying asset and this type of tax is imposed at the time of transaction.
There are following two situations:
a. CC is in different state than JC. If CC and JC are in different state, then Grays shops from JC in order to save sales tax. It is possible that in JC, sales tax rate is lower in comparison to CC. Therefore, JC must be in state which imposes lower sales tax.
b. CC and JC are in same state: if CC and JC are in same state the, surely CC imposes higher sale tax than JC because Gray used to shop from JC only.
Oriole Company purchased a new machine on October 1, 2022, at a cost of $68,880. The company estimated that the machine has a salvage value of $5,940. The machine is expected to be used for 48,880 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e.g. 5,275.25.)
Answer and Explanation:
The computation of the depreciation expense is shown below:-
As we know that
Depreciation expenses = (Machine value - Salvage value) ÷ Estimated useful life of assets
= ($68,880 - $5,940) ÷ 6
= $10,490
Now
Depreciation for 2022 is
= (Depreciation expenses × 3 months ÷ 12 months
= $10,490 × 3 months ÷ 12 months
= $2,623
And Depreciation for 2023 is $10,490
Answer above has proper calculations, rounded wrong.
2022: 2,622.5
2023: 10,490
Which fundamental economic question is most closely related to the issues of income distribution and poverty?
Answer: The For Whom to Produce question
Explanation:
The fundamental economic question that is most closely related to the issues of income distribution and poverty is "For Whom to Produce question".
This economic problem deals with the challenge of deciding who the fouds should be produced for. The producer has to decide if the goods produced will be either for the rich or for those that are poor.
Machinery purchased for $64,200 by Sheridan Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation.
Required:
a. Prepare the entry to correct the prior year's depreciation, if necessary
b. Prepare the entry to record depreciation for 2015
Answer:
Sheridan Co.
a. It is not necessary to correct the prior year's depreciation. Depreciation is an accounting estimate and does not require the adjustment of prior year's accounts when there is a correction in its estimates.
b. Entry to record depreciation for 2021:
Debit Depreciation Expense $4,387
Credit Accumulated Depreciation $4,387
To record the depreciation expense for the year.
Explanation:
a) Data and Calculations:
Purchase of machinery in 2016 = $64,200
Original estimated useful life = 8 years
Salvage value = $4,280
Depreciation amount = $59,920 ($64,200 - $4,280)
Depreciation expense per year = $7,490 ($59,920/8)
Accumulated depreciation for 5 years = $37,450
Net book value = $26,750 ($64,200 - $37,450)
Remaining estimated useful life = 5 years
Salvage value = $4,815
New depreciable amount = $21,935 ($26,750 - $4,815)
Depreciation expense per year = $4,387 ($21,935/5)
Discuss and highlight the main features of a Bill of Lading, types of Bill of Lading, and the purpose, usefulness and limitation of such bills in global trade and commerce.
A bill of lading (/ˈleɪdɪŋ/) (sometimes abbreviated as B/L or BOL) is a document issued by a carrier (or their agent) to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods.[1] Bills of lading are one of three crucial documents used in international trade to ensure that exporters receive payment and importers receive the merchandise.[2] The other two documents are a policy of insurance and an invoice.[3] Whereas a bill of lading is negotiable, both a policy and an invoice are assignable. In international trade outside the United States, bills of lading are distinct from waybills in that the latter are not transferable and do not confer title. Nevertheless, the UK Carriage of Goods by Sea Act 1992 grants "all rights of suit under the contract of carriage" to the lawful holder of a bill of lading, or to the consignee under a sea waybill or a ship's delivery order.

Bill of lading
A bill of lading must be transferable,[4][5] and serves three main functions:
it is a conclusive receipt,[6] i.e. an acknowledgement that the goods have been loaded;[7] and
it contains or evidences[8] the terms of the contract of carriage; and
it serves as a document of title to the goods,[9] subject to the nemo dat rule.
Typical export transaction use Incoterms terms such as CIF, FOB or FAS, requiring the exporter/shipper to deliver the goods to the ship, whether onboard or alongside. Nevertheless, the loading itself will usually be done by the carrier himself or by a third party stevedore.
Smart entrepreneurs regularly seek blank from consultants or a board of directors
Answer:
Help or Advice
Explanation:
Smart entrepreneurs regularly seek HELP or ADVICE from consultants or a board of directors.
As a smart entrepreneur, seeking help from consultants or a board of directors is a good way to go to elevate the business.
The consultant or board of directors can help in many ways, some of which includes:
1. Carry out an analysis of the market conditions.
2. Give credible advice about technological innovation.
3. Recommend ideal product or service changes.
4. Assists in forecasting trends.
5. Assists in developing profitable ideas or trends.
6. Give honest and reliable advice.
A company purchased $2,600 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $600 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Answer:
No options presented but the entry below should be right.
$2,600 worth of merchandise was purchased but $600 was returned so Net accounts receivable:
= 2,600 - 600
= $2,000
Company paid the full amount on July 12 which is within the 10 days required for a discount so they get a 3% discount:
= 2,000 * ( 1 - 3%)
= $1,940
Date Account details Debit Credit
July 12 Accounts Payable $2,000
Cash $1,940
Merchandise inventory $60
The Big Ideas: End of Chapter Problem As Nobel prize winner and New York Times columnist Paul Krugman has noted, the field of economics is a lot like the field of medicine: They are fields where knowledge is limited, and where many cures are quite painful, but where regular people care deeply about the issues. What are some other ways that economics and medicine are alike
Answer:
They are not perfect sciences. You are never 100% sure of the consequences and outcome of a remedy. Medicine is a practice and economics is also a practice.
Explanation:
Applied sciences are fields of study where there is use of existing knowledge for some practical purpose.
Exact or natural sciences on the other hand provide basis on which applied sciences are practices.
Medicine and economics are applied sciences because there is no 100% certainty of the consequences or outcome of a remedy.
Economics is a social science that analyses human behaviour that is assumed to be mostly rational. However it is not an exact science because lack of consensus on hypotheses, lack of testable hypotheses, and political polarisation amongst economists.
Medicine is also not an exact science but a practical application of the knowledge of treating illnesses. In practice the outcome of treatments are not always 100% sure
Classical economists believed that: a discretionary fiscal policies were useful for dampening business cycle fluctuations. b monetary policy was not useful in fighting recessions. c rational expectations were held by most of the public. d potential GDP can be increased by expansionary fiscal policies. e short-run goals were more important than long-run goals.
Answer:
c rational expectations were held by most of the public.
Explanation:
Classical economists only focused on the long run goals. the problem is that Ricardo and Smith are still waiting for the long run to show up. Theoretically, classical economics are great, but they failed miserably in the real world. The problem is that it is based on the assumption that human beings are rational and that they will always act rationally, regardless of what is going on. For example, even if you are fired, classical economists say that your expenses should not decrease. But on the real world, if you are fired, the money you have decreases and so will your expenses.
Kennedy is working two summer jobs, making $16 per hour lifeguarding and making $10 per hour walking dogs. In a given week, she can work a maximum of 13 total hours and must earn no less than $150. Also, she must work at least 8 hours lifeguarding. If x represents the number of hours lifeguarding and y represents the number of hours walking dogs, write and solve a system of inequalities graphically and determine one possible solution.
Answer:
The answer is below
Explanation:
Let x represent the 9number of hours spent by Kennedy lifeguarding and let y represent the number of hours spent by Kennedy walking dogs.
Given that Kennedy can work a maximum of 13 hours, hence:
x + y ≤ 13 (1)
Also, she makes $16 per hour lifeguarding and making $10 per hour walking dogs. She must earn no less than $150. Therefore:
16x + 10y ≥ 150 (2)
Lastly, she must work at least 8 hours lifeguarding.
x ≥ 8 (3)
Also, y > 0
The inequalities are plotted using geogebra online graphing calculator.
We have the following points:
(8, 2.2), (8, 5)
If the Security and Exchange Commission finds any irregularities in the dealings of a financial securities firm, it can send a comment letter and initiate ( )
proceedings.
Answer:
Suspension proceedings.
Explanation:
SEC - the Securities and Exchange Commission - is the national body in charge of ensuring integrity and clarity in the financial securities market.
They regulate the activities of firms that sell these securities to members of the public.
If the Securities and Exchange Commission finds any irregularity (anomaly) in the dealings or operations of a financial securities firm, it can send a comment letter and initiate (begin) suspension or revocation proceedings against the firm.
At the beginning of 2021, Artichoke Academy reported a balance in common stock of $153,000 and a balance in retained earnings of $53,000. During the year, the company issued additional shares of stock for $43,000, earned net income of $33,000, and paid dividends of $10,300. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $ 52,900 Accounts payable $ 8,100 Supplies 11,200 Utilities payable 3,000 Prepaid rent 25,500 Salaries payable 3,800 Land 215,000 Notes payable 18,000 Required: Prepare a statement of stockholders’ equity. Prepare a balance sheet.
Answer:
STOCKHOLDERS EQUITY
Common Retained Stockholders
stock earnings equity
Beginning balance January 1 153.000 53.000 206.000
Issuance of common stock 43.000 43.000
Net income for the period 33.000 33.000
Cash Dividens (10.300) (10.300)
Ending balances December 31 196.000 75.700 271.700
BALANCE SHEET
Cash 52.900
Supplies 11.200
Prepaid Rent 25.500
Land 215.000
Total Assets 304.600
Account payable 8.100
Utilities payable 3.000
Salaries payable 3.800
Notes payable 18.000
Total liabilities 32.900
Common stock 196.000
Retained earnigs 75.700
Total stockholders 271.700
Liablities and
Stockholders 304.600
Explanation:
STOCKHOLDERS EQUITY
Common Retained Stockholders
stock earnings equity
Beginning balance January 1 153.000 53.000 206.000
Issuance of common stock 43.000 43.000
Net income for the period 33.000 33.000
Cash Dividens (10.300) (10.300)
Ending balances December 31 196.000 75.700 271.700
BALANCE SHEET
Cash 52.900
Supplies 11.200
Prepaid Rent 25.500
Land 215.000
Total Assets 304.600
Account payable 8.100
Utilities payable 3.000
Salaries payable 3.800
Notes payable 18.000
Total liabilities 32.900
Common stock 196.000
Retained earnigs 75.700
Total stockholders 271.700
Liablities and
Stockholders 304.600
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales value at split-off. Processing 4,600 gallons of product A and 1,000 gallons of product B to the split-off point costs $5,500. The sales value at split-off is $3.00 per gallon for product A and $32.20 for product B. Product B requires an additional separable process beyond split-off at a cost of $2.10 per gallon before it can be sold.Required: What is the company's cost to produce 1,000 gallons of product B?
Answer:
The company's cost to produce 1,000 gallons of product B is $7,131.25.
Explanation:
This can be calculatd as follows:
Product B share of joint cost = (Product B sales value / (Product B sales value + Product A sales value)) * Cost to split-off point = ($32.20 / ($32.20 + $3.00)) * $5,500 = 0.914772727272727 * $5,500 = 5,031.25
Product B total additional separable process beyond split-off = Additional cost per gallon * Number of gallons of product B produced = $2.10 * 1,000 = $2,100
Therefore, we have:
Company's cost to produce 1,000 gallons of product B = Product B share of joint cost + Product B total additional separable process beyond split-off = 5,031.25 + $2,100 = $7,131.25
Therefore, the company's cost to produce 1,000 gallons of product B is $7,131.25.
ANSWER 10 POINTS COME ON EMERGENCY HELP HELP HELP
Construction of new homes is considered part of: 2 points A. investment spending. B. consumption. C. government spending. D. private saving. E. the stock market.
Answer:
The answer is A.
Explanation:
Construction of new homes is counted as part of investment spending in computing the GDP because they can be rented or leased out for generation of income.
Option B is incorrect because this is not private spending.
Option C is incorrect because it has nothing to do with government
Option D is incorrect because this is not a form of private saving while the question has nothing to do with the stock market (option E)
Several types of risk are present in the U.S. economy. For each of the following, identify the type of risk that is present. Explain your answer.
a. The Department of Homeland Security alerts the nation of a possible attack by terrorists.
b. A house may be severely damaged in a fire.
c. A family head may be totally disabled in a plant explosion.
d. An investor purchases 100 shares of Microsoft stock.
e. A river that periodically overflows may cause substantial property damage to thousands of homes in the floodplain.
f. Home buyers may be faced with higher mortgage payments if the Federal Reserve raises interest rates at its next meeting.
g. A worker on vacation plays the slot machines in a casino.
Answer and Explanation:
a. This is a fundamental risk case since there is a loss possibility. As the attack is done by the terrorists and the loss is definite in terms
b. It is a property risk as the house is damaged in a fire that resulted into a financial loss
c. It is a personal risk case as the head of the family is totally disabled that directly impact the family which leads to non-fulfillment of the financial liabilities so ultimately its an income loss.
d. It is a case of speculative as the investor purchase 100 shares that resulted in either profit or loss
e. This is a case of fundamental risk as the overflow of the river impacts the property of thousands people
f. This is a case of financial risk as the risk impacted the opposite changes in the price of the commodity, rate of interest, etc
g. It is a speculative case as the worker could either win or loss
6. The British government has a consol bond outstanding paying £100 per year forever. Assume the current interest rate is 4% per year. a. What is the value of the bond immediately after a payment is made? (Answer: £2,500) b. What is the value of the bond immediately before a payment is made? (Answer: £2,600)
Answer:
A. £2,500
B. £2,600
Explanation:
a. Calculation for What is the value of the bond immediately after a payment is made
Present Value = 100/0.04
Present Value=£2,500
Therefore the value of the bond immediately after a payment is made is £2,500
b. Calculation for What is the value of the bond immediately before a payment is made
Present Value =£100 +£100/0.04
Present Value = £100+£2,500
Present Value = £2,600
Therefore the value of the bond immediately before a payment is made is £2,600
The RideEm Bicycles factory can produce 150 bicycles in a day at a total cost of $10,700. It can produce 170 bicycles in a day at a total cost of $11,500. What are the company's daily fixed costs (in dollars)
Answer:
See below
Explanation:
From the above, we can make c to be fixed cost, b cost of bicycle
C + 150b = 10,700 equation 1
C + 170b = 11,500 equation 2
From equation, we can make c the subject
C = 10,700 - 150b
Substitute for C in equation 2
10,700 - 150b + 170b = 11,500
-150b + 170b = 11,500 - 10,700
20b = 800
b = 40
We would also get the value for C
Substitute for C in equation 1
C + 150b = 10,700
C + 150(40) = 10,700
C + 6,000 = 10,700
C = 10,700 - 6,000
= -4,700
Therefore, the company's daily fixed cost is -$4,700
The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.
Answer:
Equilibrium quantity
Explanation:
Equilibrium quantity arises when there is no surplus or no shortage of the product produced in the market. Here the demand and the supply would be intersected to each other that means the amount of an item that purchased would be equivalent to the amount supplied
So as per the given situation, the equilibrium quantity is the answer
For financial reporting purposes, the total amount of product costs incurred to make 6,800 units is closest to:
Answer:
a. $98,260
Explanation:
Note: The full question is attached as picture below
Fixed manufacturing overheads = 6800*$2.50
Fixed manufacturing overheads = $17,000
Total variable costs = (Direct materials + Direct labor + Variable manufacturing overhead) * 6800 units
Total variable costs = ($6.70 + $3.80 + $1.45) * 6800 units
Total variable costs = $11.95 * 6800 units
Total variable costs = $8,1260.
So, total product costs = Total variable costs + Fixed manufacturing overheads = $81,260 + $17,000 = $98,260
Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product I49VProduct Z50U Sales$45,000 $50,000 Variable expenses$13,300 $28,500 The fixed expenses of the entire company were $38,990. The break-even point for the entire company is closest to: Multiple Choice $80,790 $69,625 $38,990 $46,110
Answer:The break-even point for the entire company is closest to $69,625
Explanation:
Contribution margin =Sales-Variable costs
For Product I49V
Contribution margin=$45,000 - 13,300=$31,700
Product Z50U
Contribution margin=$50,000 - $28,500 =$21,500
Total Contribution margin of the two products =$31,700+$21,500=$53,200
Total sales of the two products =$45,000 + $50,000 =$95,000
Total Contribution margin ratio =Total Contribution margin / Total Sales
=$53,200 /$95,000 = 0.56
Therefore total breakeven point=Fixed costs/Contribution margin ratio
=$38,990/0.56
=$69,625
What is the total amount of current assets to be reported on XYZ Company's 12/31/X1 classified balance sheet
Answer:
$112,800
Explanation:
The computation of the total amount of current asset reported is as follows:
= Cash + account receivable + supplies + prepaid rent
= $53,000 + $15,000 + $8,800 + $36,000
= $112,800
Hence, the amount reported is $112,800
We simply added the above four items so that the current asset value could come
Alain Mire files a single tax return and has adjusted gross income of $314,000. His net investment income is $43,000. What is the additional tax that Alain will pay on his net investment income for the year
Answer:
$1,634
Explanation:
The computation of the additional tax to be paid is shown below:
Additional tax is
= Tax rate × net investment income
= 0.038 × $43,000
= $1,634
We simply multiplied the tax rate with the net investment income in order to determine the additional tax
Utility is the measure of surplus lost by producers when taxes are introduced to the market. surplus lost by consumers when taxes are introduced to the market. the satisfaction all consumers should receive from consuming a good or service. the relative satisfaction, enjoyment, or contentment a person receives from consuming a good or service.
Answer:
the satisfaction all consumers should receive from consuming a good or service
Explanation:
Utility is the satisfaction all consumers should receive from consuming a good or service.
This ultimately implies that, when consumers purchase a product or takes service from a service provider (business organization) they should get maximum value and satisfaction for the amount of money being spent.
For example, if a consumer buys an automobile, he should be satisfied with the use.
Lok Co. reports net sales of $4,970,000 for Year 2 and $8,532,000 for Year 3. End-of-year balances for total assets are Year 1, $1,684,000; Year 2, $1,780,000; and Year 3, $1,949,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3.
Answer:Assets turnover ratio Year 2 =2.87 times
Assets turnover ratio for Year 3 = 4.58times
Explanation:
The total assets turnover is calculated as = Net Sales / Average total assets
also,
Average total assets = (Beginning assets + Ending Assets) / 2
Average total assets for Year 2 = ($1,684,000 +$1,780,000)/ 2 =$1,732,000
Average total assets for Year 3 = ($1,780,000 + $1,949,000 )/2 =$1,864,500
Assets turnover ratio Year 2 =$4,970,000 / $1,732,000 = 2.87 times
Assets turnover ratio for Year 3 = $8,532,000 / $1,864,500 = 4.58times
Answer:
Total assets turnover - year 2 = 2.8695 times
Total assets turnover - year 3 = 4.5760 times
Explanation:
The total assets turnover is a measure used to assess the performance of businesses in terms of their efficiency to use their assets for generating sales. It calculates how much sale each dollar of asset is generating. The formula for total assets turnover is as follows,
Total assets turnover = Net Sales / Average total assets
Where,
Average total assets = (Total assets at start + Total assets at end) / 2
Total assets turnover - year 2 = 4970000 / [(1684000 + 1780000) / 2]
Total assets turnover - year 2 = 2.8695
Total assets turnover - year 3 = 8532000 / [(1780000 + 1949000) / 2]
Total assets turnover - year 3 = 4.5760
The __________ perspective of management, which emerged from the Industrial Revolution, focuses on improving the efficiency, productivity, and output of employees, as well as the business as a whole
Answer:
classical or scientific
Explanation:
Classical or scientific management was developed by Frederick Taylor, Max Weber and Henri Fayol. It focused on material needs. Companies needed to improve profits by improving productivity and efficiency, while workers were supposed to be only motivated by the salary that they could earn. This theory has a lot of flaws, but you must remember that it was developed more than 100 years ago.
