Answer: raise; reduce
Explanation:
A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.
Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.
If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.
It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.
Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.
On January 1, 2021, Poole Inc. purchased a bottle filler at a cost of $40,000. The equipment is expected to last eight years and have a residual value of $4,000. During its eight-year life, the equipment is expected to produce 250,000 units of product. In 2021 and 2022, 42,000 and 76,000 units, respectively, were produced. Required: Compute depreciation for 2021 and 2022 and the book value of the bottle filler at December 31, 2021 and December 31, 2022, assuming the double-declining-balance method is used.
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $40,000
Salvage value= $4,000
Useful life= 8 years
To calculate the depreciation per year using the double-declining balance method, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2021:
Annual depreciation= 2*[(40,000 - 4,000) / 8]
Annual depreciation= $9,000
Book value= 40,000 - 9,000= $31,000
2022:
Annual depreciation= 2*[(36,000 - 9,000) / 8]
Annual depreciation= $6,750
Book vale= 31,000 - 6,750= $24,250
Gore Inc. sells office furniture. In 2021, it sold 200 desks for $500 each. For each desk sold, Gore distributed a 50% discount coupon for purchase of an office chair within one month. Based on historical experience, Gore expects that approximately 20% of the coupons will be utilized. The chairs purchased with the coupons are priced at $150 and normally discounted 10%. What would be the stand-alone sales price used by Gore for the coupon when allocating the $500 transaction price to performance obligations
Answer:
$12
Explanation:
Stand alone sale price = (Cost of chair) * (Discount % of voucher-Normal% of discount) * (% of coupons to be utilized)
Stand alone sale price = $150 * (50%-10%) * 20%
Stand alone sale price = $150 * 40% * 20%
Stand alone sale price = $12
Therefore, the Stand alone selling price used by Gore Inc. is $12
Burkhardt Corp. pays a constant $13.30 dividend on its stock. The company will maintain this dividend for the next 7 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price?
Answer: $64.75
Explanation:
Dividend= $13.30
Duration = 7 years
Required return = 10%
Current share price will be:
= (13.3/1.1) + (13.3/1.1^2) + (13.3/1.1^3) + (13.3/1.1^4) + (13.3/1.1^5) + (13.3/1.1^6) + (13.3/1.1^7)
= 12.09 + 10.99 + 9.99 + 9.08 + 8.26 + 7.51 + 6.83
= 64.75
Therefore, the current share price is $64.75
What would happen in the market for loanable funds if the governemnt increases the tax on interest income?
Answer: c. The supply of loanable funds would shift left.
Explanation:
An increase on taxes on interest income will reduce the earnings of savers who are the suppliers of loanable income. Some of those savers will divest from savings and look for other forms of investment to make better earnings from.
This flight from savings will reduce the savings held in banks and therefore the supply of loanable funds will reduce as well which will shift the supply curve to the left.
The competitive firm's supply curve is equal to A. the portion of its marginal cost curve that lies on and above AFC. B. its marginal cost curve. C. the portion of its marginal cost curve that lies on and above AC. D. the portion of its marginal cost curve that lies on and above AVC.
Answer:
a. the portion of its marginal cost curve that lies above the AVC
Explanation:
In short run, a perfectly competitive produces as long as its price is above its AVC, so revenues can cover total variable cost. If price is below AVC, the firm has to shut down. Since such a firm maximizes profit by equating Price with MC, this condition means that firm's supply curve is its MC curve lying above the (minimum point of) AVC curve.
Diane's Designs has two classes of stock authorized: 8%, $10 par preferred and $1 par value common. The following transactions affect stockholders' equity during 2015, its first year of operations:January 1 Issue 200,000 shares of common stock for $15 per share.February 6 Issue 1,000 shares of preferred stock for $11 per share.October 10 Repurchase 10,000 shares of its own common stock for $18 per share.November 12 Reissue 5,000 shares of treasury stock at $20 per share.Record each of these transactions. (Omit the "$" sign in your response.)
Answer:
Date Account title and Explanation Debit Credit
Jan-01 Cash (200,000*$15) 3,000,000
Common stock (200,000*$1) 200,000
Paid in capital in excess of par - 2,800,000
Common stock
(To record issue of 200,000 shares for $15)
Feb-06 Cash (1,000*$11) 11,000
Preferred stock (1,000*$10) 10,000
Paid in capital in excess of par 1,000
- Preferred stock
(To record issue of 1,000 shares for $11)
Oct-10 Treasury stock (10,000*$18) 180,000
Cash 180,000
(To record repurchase of 10,000 shares for $18)
Nov-12 Cash (5,000*$20) 100,000
Treasury stock (5,000*$18) 90,000
Paid in capital in excess of par 10,000
- Treasury stock
(To record reissue of 5,000 treasury stock for $20)
Based on the following information from Schrute Company's balance sheet, calculate the current ratio. Current assets $ 141,000 Investments 60,800 Plant assets 430,000 Current liabilities 57,000 Long-term liabilities 108,000 A. Schrute, Capital 466,800
Answer:
2.47
Explanation:
Current ratio measure Liquidity of the firm and is calculated as ;
Current ratio = Current Assets ÷ Current Liabilities
Where,
Current Assets = $ 141,000
Current Liabilities = $57,000
Then,
Current ratio = $ 141,000 ÷ $57,000
= 2.47
Gunk Co. reported an asset retirement obligation on its 2019 financial statements. The present value of the liability for the asset retirement obligation at the end of 2019 was $393. The company's discount rate is 8%. What is the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation
Answer:
$31.44
Explanation:
The accretion expense each year will be calculated as = Present value of the Asset retirement obligation at the end of the previous year * Discount Rate
Hence, the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation
= $393 * 8%
= $31.44
You have $15,000 to invest and would like to create a portfolio with an expected return of 10.1 percent. You can invest in Stock K with an expected return of 8.8 percent and Stock L with an expected return of 12.4 percent. How much will you invest in Stock K
Answer:
$9,583.33
Explanation:
The computation of the amount invested in the stock K is shown below
Let us assume the amount invested in stock K be Y
So according to this, following formula should be used
The Expected return of portfolio × Amount invested = Expected return of K × Amount invested in K + Expected return of L × Amount invested in L
0.101 × $ 15,000 = 0.088 × Y + 0.124 × ( $ 15,000 - Y )
$1,515 = 0.088Y + $ 1,860 - 0.124Y
0.036Y = $ 345
Y = $ 345 ÷ 0.036
= $9,583.33
BDE Inc. is an unlevered firm which expects to generate a net cash flow of $25 million per year in perpetuity. The firm’s required return on equity is 10%. Assume that the Modigliani and Miller assumptions hold. (15 points) For questions 27 and 28 assume that the corporate tax rate is zero. 27. What is the value of the unlevered firm?
Answer:
$250 million
Explanation:
If taxes do not exist and the firm has no outstanding debt, then the value of unlevered firm = total enterprise value of BDE
we can use the perpetuity formula to determine the total enterprise value:
total enterprise value = FCF / cost of equity
total enterprise value = $25 million / 10% = $250 million
When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities? Direct Method Indirect Method Decrease Decrease Increase Increase Increase Decrease
Answer:
Increase Increase
Explanation:
financial accounting, statement of cash flow can be regarded as a financial statement that gives the summary of values of amount cash as well as cash equivalent that enters or leave a firm. It gives the measurement of the well management of cash position of a company. It should be noted that When preparing a statement of cash flows, a decrease in accounts receivable during a period the adjustments in determining cash flow from operating activities is that Direct Method increases, Indirect Method increases.
Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $95 million, and will produce net cash flows of $37 million per year. Inflation in operating costs and battery costs is expected to be zero, and the company's cost of capital is 10%. What is the equivalent annual annuity?
Answer:
Rivian
The equivalent annual annuity is:
$28,053,400.
Explanation:
a) Data and Calculations:
R1T assembly investment cost = $95,000,000
Net cash flows = $37,000,000 per year
Cost of capital = 10%
Period of investment and annuity = 5 years
Annuity factor = 3.791
Present value of annuity = (3.791 * $37,000,000)/5
= 140,267,000/5
= $28,053,400
b) The net cash flows of $37 million per year will produce an annuity value of $28,053,400. In comparison with the investment cost in the R1T assembly, the present value of the annuity is reasonable.
You are considering a project which has been assigned a discount rate of 5 percent. If you start the project today, you will incur an initial cost of $4,100 and will receive cash inflows of $2,900 a year for 2 years. If you wait one year to start the project, the initial cost will rise to $4,320 and the cash flows will increase to $3,257 a year for 2 years. What is the value of the option to wait
Answer:
$361.14
Explanation:
start the project today:
initial outlay = -$4,100
cash flow year 1 = $2,900
cash flow year 2 = $2,900
NPV = -$4,100 + $5,392.29 = $1,292.29
if you start the project in one year:
initial outlay year 1 = -$4,320
cash flow year 2 = $3,257
cash flow year 3 = $3,257
NPV year 1 = -$4,320 + $6,056.10 = $1,736.10
value of option to wait = ($1,736.10 / 1.05) - $1,292.29 = $361.14
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and Equity Cash $ 99,600 Accounts payable $ 255,500 Inventory 539,400 Kendra, Capital 76,700 Cogley, Capital 172,575 Mei, Capital 134,225 Total assets $ 639,000 Total liabilities and equity $ 639,000 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.) (1) Inventory is sold for $612,000. (2) Inventory is sold for $462,600. (3) Inventory is sold for $336,000 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $300,000 and the partners have no assets other than those invested in the partnership.
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is: Group of answer choices Debit Miscellaneous Expense $250; credit Cash $250. Debit Petty Cash $250; credit Accounts Payable $250. Debit Cash $250; credit Accounts Payable $250. Debit Petty Cash $250; credit Cash $250. Debit Cash $250; credit Petty Cash $250.
Answer:
Debit Petty Cash $250; credit Cash $250
Explanation:
Based on the information given we were told that the Company establishes the amount of $250 as a petty cash fund on September 1 which means that The journal entry to record the establishment of the fund on September 1 is:
Debit Petty Cash $250
Credit Cash $250
Which sentence best describes the irony in the passage?
It is ironic that Jim and Della will not be able to use their presents until the future.
It is ironic that Jim cannot use Della’s present because he sold his watch to get her present.
It is ironic that Jim wanted his present so badly but no longer wants it.
The sentence which best describe the irony in the passage is
that Jim cannot use Della’s present because he sold his watch to get her present.
That is best describe in the passage as they both have shown their immense feeling of emotions towards each other.
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Eternal City operates several theme parks throughout the western United States and uses 30,000 gallons of machine oil on an annual basis. The parks operate 50 weeks per year and are considering 2 suppliers of oil, Sharps LTD and Winkler LLC. Sharps Price per unit is $4.00 and Winkler is $3.80. Sharps annual holding cost is $0.80 per unit and Winkler is $0.76. Sharps lead time is 4 weeks, Winkler is 6 weeks. Sharps admin costs are $4,000 and Winkler is $5,000 Annual Freight Costs Supplier 5,000 10,000 15,000 Sharps $5,000 $2,600 $2,000 Winkler $5,500 $3,200 $2,900 What are total annual costs given a shipment quantity of 5,000 gallons from Sharps? a. $139,230 b. $261,220 c. $456,000 d. $132,920 e. $139,220
Answer:
$132,920
Explanation:
Annual demand D = 30,000
Order quantity Q = 5,000
Annual holding cost per unit H = $0.80
Annual holding cost = (Q/2)*H
Annual holding cost = (5,000/2)*$0.80
Annual holding cost = 2,500 * $0.80
Annual holding cost = $2,000
Annual shipping cost = $5,000
Unit cost = $4.00
Annual admin cost = $4,000
Lead time cost = (Lead Time*H*D)/Weeks per year
Lead time cost = 4*$0.80*30,000/ 50
Lead time cost = $1,920
Cost of product = Unit cost * D
Cost of product = $4 * 30,000
Cost of product = $120,000
Total cost = Total order cost + Holding cost + Admins cost + Cost of product + LT cost
Total cost = $5,000 + $2,000 + $4,000 + $120,000 + $1,920
Total cost = $132,920
Thus, the total annual costs given a shipment quantity of 5,000 gallons from Sharps is $132,920
Hill Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $60 each. During the month, the company made two purchases: 500 units at $58 each and 2,000 units at $56 each. Hill Company also sold 2,150 units during the month. Using the periodic FIFO method, what is the cost of ending inventory
Answer:
$86,800
Explanation:
With regards to the above, first we need to add up all the units
= 1,200 units + 500 units + 2,000 units
= 3,700 units
The next step is to deduct the additional units sold from the total units
= 3,700 units - 2,150 units
= 1,550 units
The next step is to multiply $56, which is the value for last 2,000 units purchased to get the ending inventory.
= 1,550 units × $56
= $86,800
Therefore, the cost of ending inventory, using the periodic FIFO method is $86,800
An advertising campaign is:
O A. a set of games customers can play to see whether or not they like
a product.
O B. a mass media device used to make advertisements more
interactive.
OC. a method of finding the best customers by determining their race
and age.
OD. a series of targeted activities aimed to make customers aware of
a product.
Answer:
D. a series of targeted activities aimed to make customers aware of
a product.
Explanation:
Advertising is the use of media to communicate messages that create awareness of a particular product or service. It is the relaying of persuasive information to a targeted audience with the expectation of increasing the sales of a product.
An advertising campaign will involve a series of events and messages to convince the targeted audience to buy the advertised product. The campaign communicates the benefits of the advertised product and gives reasons why customers should consume it. An advertising campaign is not a single event but a series of marketing activities that could last for days, weeks, or even months.
Using the information from the table below, answer the following questions.
Production ⇔ Total cost
0 ⇔ 80
1 ⇔ 140
2 ⇔ 180
3 ⇔ 200
4 ⇔ 240
5 ⇔ 320
6 ⇔ 420
7 ⇔ 540
8 ⇔ 680
a. Total average costs for the production of 4 products.
b. Marginal cost for the production of the 6th product.
c. If its price is 100$, find the maximum profit for a perfectly competitive firm (MR=MC).
Answer:
this is the only thing i remember till now and im gonna use . for + okay
a. 80.140.180.200.240.320.420.540.680 ÷ 1.2.3.4.5.6.7.8
Suppose a perfectly competitive market is suddenly transformed into a monopoly (all competing firms are consolidated into a single entity). We would expect price to _____, output to _____, consumer surplus to _____ and deadweight loss to _____.
just you know what it must be that i think
Explanation:
suppose a perfectly competitive market is sufdenly what think so
Use the following accounts and information to prepare, in good form, a multiple step income statement, retained earnings statement, and classified balance sheet for Mitchell Enterprises for the year ended December 31, 2019. The company has 37,000 shares of its $5 par value common stock issued and outstanding all during the year. Mitchell Enterprises Adjusted Trial Balance December 31, 2019
Answer:
The information for adjusted trial balance of Mitchell Enterprises is missing.
The 37,000 shares at $5 par value will be reported in Balance Sheet at the Equity and Liabilities side under Equity head.
Shares will be reported as:
Common Stock 37,000 * $5 = $185,000
The rest of the data from Trial Balance will be reported in Balance Sheet and Income Statement.
Explanation:
The information for adjusted trial balance of Mitchell Enterprises is missing.
The 37,000 shares at $5 par value will be reported in Balance Sheet at the Equity and Liabilities side under Equity head.
Shares will be reported as:
Common Stock 37,000 * $5 = $185,000
The rest of the data from Trial Balance will be reported in Balance Sheet and Income Statement.
Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the dollar volume of sales per month necessary for Accents to break-even is:
Answer:
$65,333
Explanation:
As we know,
Sales price = Variable cost + Contribution cost
Sales price = Variable cost ratio + Contribution margin ratio
100% = 30% + Contribution
Contribution = 100% - 30%
Contribution = 70%
Fixed cost = $19,600
Break even sales = Fixed cost / Contribution margin ratio
Break even sales = $19,600 / 30%
Break even sales = $19,600 / 0.3
Break even sales = $65,333.
Bonita Clinic purchases land for $175900 cash. The clinic assumes $1700 in property taxes due on the land. The title and attorney fees totaled $900. The clinic has the land graded for $2000. What amount does Bonita Clinic record as the cost for the land
Answer:
$188,600
Explanation:
Cost for the land = Purchases Cost + Taxes + Attorney fee + Land graded cost
Cost for the land = 175,900 + 1,700 + 9000 + 2,000
Cost for the land = $188,600
So, the amount Bonita Clinic will record as the cost for the land is $188,600
Thomas Longbow is the only employee of Presido, Inc. During the first week of January, Longbow earned $3,000.00 and had federal and state income tax withholdings of $150.00 and $56.25, respectively. FICA taxes are 7.65% on earnings up to $117,000. State and federal unemployment taxes for the period are $187.50 and $30.00, respectively. What is Presido's payroll tax expense for the week
Answer:
$447
Explanation:
Calculation for What is Presido's payroll tax expense for the week
Using this formula
Payroll tax expense = Employer's FICA match + Federal unemployment tax + State unemployment tax
Let plug in the formula
Payroll tax expense = ($3,000 ×0.0765)
+$187.50 + $30.00
Payroll tax expense= $447
Therefore Presido's payroll tax expense for the week will be $447
Create your own WBS is for a project by using the mind-mapping approach. Break at least two level two items down to level four. Try to use mind view software from www.matchword.com, if possible. You can also create a mind map by using similar mind mapping software or a tool like powerpoint.
PLEASE HELPPPP
The amount of principal that is paid at December 31,Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2019. Alden financed $37,908,000, and the note agreement will require $10 million in annual payments starting on December 31, 2019 and continuing for a total of four more years (final payment December 31, 2023). Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually. 2019 is:
Answer:
$3,169,880
Explanation:
Calculation for How much is 2020 interest Expenses
First step is to calculate December 31, 2019 note payable liability
Using this formula
December 31, 2019 note payable liability = Initial debt + 2019 interest expense - First annual payment
Let plug in the formula
December 31, 2019 note payable liability = $37,908,000+ ($37,908,000 ×10%) - ($10,000,000)
December 31, 2019 note payable liability=$37,908,000+$3,790,800-$10,000,000
December 31, 2019 note payable liability=$31,698,800
Now let calculate 2020 interest expense
2020 interest expense = January 1, 2020 book value $31,698,800 ×10%
2020 interest expense =$3,169,880
Therefore 2020 interest Expenses will be $3,169,880
Bryson Corporation purchased a limited-life intangible asset for $1,162,500 on May 1, 2018. It has a remaining useful life of 15 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020 (if necessary, round your answer to the nearest dollar)
Answer:
$206,667
Explanation:
Calculation for What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020
Using this formula
Total Amortization expense=Cost/useful life*Number of months
Let plug in the formula
Total Amortization expense=$1,162,500/180*32
Total Amortization expense=$206,667
Note that 15 years*12months will give us 180 months which is the useful life while May 1, 2018 - December 31, 2020) will give us 32 months
Therefore the total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020 will be $206,667
The composite interest rate (what the market price is) includes, just the pure interest rate none of the above. the pure interest rate plus allowances for financial uncertainty, tax preferences, and anticipated effect of price level changes. the inflation premium minus the pure rate.
Answer:
the pure interest rate plus allowances for financial uncertainty, tax preferences, and anticipated effect of price level changes
Explanation:
The rate of the compound interest involved the rate of interest i.e. pure also the allowance for the financial i.e. uncertainity, the preference of taxes, and the expected impact of the change in the price level
Therefore as per the given situation, the option 2 is correct as it represents the market price or the compound rate of interest
Therefore the same is to be considered
At the beginning of the year, a firm has current assets of $320 and current liabilities of $224. At the end of the year, the current assets are $477 and the current liabilities are $264. What is the change in net working capital
Answer: $780 dollars
Explanation: