Answer:
Instructions are below.
Explanation:
Giving the following information:
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
First, we need to determine the unitary contribution margin:
Unitary contribution margin= 410 - 328= $82
Contribution margin income statement:
Sales= 600*410= 246,000
Total variable cost= 600*328= (196,800)
Total contribution margin= 49,200
Fixed costs= (36,900)
Net operating income= $12,300
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 39,200/82
Break-even point in units= 478 units
Finally, the income statement for the break-even point:
Sales= 478*410= 195,980
Total variable cost= 478*328= (156,784)
Total contribution margin= 39,196
Total fixed costs= (39,200)
Net operating income= (4)
what is the most important function of a leader within an organization
Answer:
Leadership is the action of leading people in an organization towards achieving goals. Leaders do this by influencing employee behaviors in several ways. A leader sets a clear vision for the organization, motivates employees, guides employees through the work process and builds morale.
Explanation:
Answer:
building consouis
Explanation:
i hopppeee this helps :)
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 52,000 52,000 Units in Ending Work in Process: Direct Materials (18,000 * 100%) 18,000 Conversion (18,000 * 80%) 14,400 Equivalent Units of Production 70,000 66,400 Cost per Equivalent Unit Costs of beginning work in process $ 43,600 $ 63,900 Costs incurred this period 145,500 195,700 Total costs $ 189,100 $ 259,600 Cost per equivalent unit $ 2.70 per EUP $ 3.91 per EUP If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs
Answer:
DR Work in Process—Labeling................ $203,320
CR Work in Process—Canning......................................... $203,320
(To record transfer of conversion costs to Labelling Department.)
Units completed in the Canning department are 52,000 and costs per equivalent units of production for conversion is $3.91.
Total costs of conversion is therefore;
= 52,000 * 3.91
= $203,320
On January 1, 20X7, Pisa Company acquired 80 percent of Siena Company by purchasing 40,000 shares of Siena's common stock. There was no differential related to this transaction. The noncontrolling interest had a fair value equal to 20 percent of book value. The book value of Siena on December 31, 20X7 was as follows:
On January 1, 20X8, Pisa purchased an additional 12,500 shares directly from Siena for $25 per share. The elimination entry to prepare the consolidated financial statements on December 31, 20X7 would include one of the following answers:
a. credit to common stock for $625,000
b. debit to retained earnings for $37,500
c. credit to Investment in Siena Co. for $976,500
d. credit to NCI in the net assets of Siena Co. for $232,500
Answer:
a. credit to common stock for $625,000
Explanation:
When a company acquires more than 75% of holding in any company along with significant control then it is known as subsidiary. The company Is then able to record investment in subsidiary as debit balance in its statement of financial position. The cash consideration paid for acquiring the stock is recorded as investment in subsidiary. When the Pisa Company acquired Siena Company it has recorded the investment in Siena but when additional share are purchased Pisa will raise its stock capital.
Create a business decision based on the company where you work, a small business you hope to own someday or just make something up - then identify, define and explain an incremental cost, opportunity cost and sunk cost. You will need to be somewhat creative in your response.
Answer and Explanation:
Incremental can be defined as the turn in the total amount as a specific decision. While Incremental revenue states that the change in total income which results from a specific criterion.
According to the incremental principle, A decision can be specified profitable when it is a growth in income instead of amount while sunk cost (which is already incurred and it can not be regained.
let us take an example I 'm starting a Pizza house. I select a spot close schools and colleges because my key focus group is students. I will nominate an experienced cook and will incur more costs (incremental costs) if the demand for the goods is high. I should obtain at least reasonable prices of raw materials from a wholesaler. The cost of setting up a Pizza house etc. would be minimized. I will launch this combo package to attract students and follow the aim of optimizing revenue rather than maximizing profit
The offering price of an open-end fund is $12.30 per share and the fund is sold with a front-end load of 5%. What is its net asset value?
Answer:
$11.685
Explanation:
Calculation for the net asset value
Since the front-end load is 5% this means that we are going to deduct 5% from 100% which will give us 95%, therefore 95% will be our front-end load percentage.
Now let find the Net asset value
Using this formula
Net asset value=Front-end load Percentage × Offering price
Let plug in the formula
Net asset value=95%×$12.30
Net asset value=$11.685
Therefore the Net asset value will be $11.685
A firm selling its product for $25,000 has overproduced, increasing inventory by 40,000 units at a cost of $15,000 per unit. What is the impact of the inventory change on cash flow?
Answer:
Increasing Inventory by 40,000 units at a cost of $15,000 per unit
The Cost of producing 40,000 units extra = $40,000 *$15,000 = $600,000,000
Conclusion: As this is an additional cost incurred by the firm by increasing inventory by 40,000 unit at $15,000 per unit, it will be term as cash outflow. The impact of the inventory change on cash flow is outflow.
rockwell corp just paid a dividend of .50. analysts expect their dividends to increase by 7% every year for the next 3 years, and then have a constant dividend growth rate of 2% after year 3. If your required return is 8% what is the present value of the stock?
Answer:
Price of share today = $9.74
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
Step 1 : PV of dividend from year 1 to 3
PV = D × (1+r)^(-n)
D- dividend receivable in a particular year, r- required rate of return, n- year
Year PV of Dividend
1 0.50 × 1.07^1 ×1.08^(-1) = 0.495
2 0.50 × 1.07^2 ×1.08^(-2) = 0.491
3 0.50× 1.07^3× 1.08^(-3) = 0.486
Step 2 : PV of dividend from year 4 to infinity
PV (in year 3 terms) of dividend= 0.50× 1.07^3 ×1.02/(0.08-0.02) = 10.41
PV in year 0 terms = 10.41 × 1.08^(-3) = 8.27
Total Present Value = 0.495 + 0.491 + 0.486 + 8.27 = 9.738
Price of share today = $9.74
What type of lawsuit occurs if an employee decides to file a lawsuit against a company?
A. Civil case
B. Liability case
C. Criminal case
D. Prosecution case
Answer: A. Civil case
Explanation:
The court cases that associate disputes between persons or businesses over funds or some incident to private rights are known as civil cases. It starts by one party (business or a person) known as "plaintiff" claims to have been harmed by the actions of another party (person or business) known as the "defendant".Hence, the lawsuit occurs if an employee decides to file a lawsuit against a company is "Civil case".
Hence, the correct option is "A".
Answer:
it would be a civil case
Explanation:
I took the test
g The AD curve is the relationship between A. the quantity of real GDP demanded and the quantity of real GDP supplied. B. the quantity of real GDP demanded and the unemployment rate. C. aggregate planned expenditure and real GDP when the price level is fixed. D. aggregate planned expenditure and the price level. E. aggregate planned expenditure and the quantity of real GDP demanded.
Answer:
D. aggregate planned expenditure and the price level.
Explanation:
Aggregate demand (AD) can be defined as the total amount spent on domestic goods and services in an economy. It is called total planned expenditure by economists.
Aggregate demand (AD) consist of four components of demand:
1. Consumption
2. Savings
3. Government spending
4. Net export, that is, export minus import.
The aggregate demand (AD) curve shows the relationship between total spending on domestic goods and services at each price level.
D. aggregate planned expenditure and the price level is the correct answer.
Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less. This statement is: False True
Answer:
false
Explanation:
Capital budgeting is the process taken to evaluate and determine the profitability of an investment. capital budgeting can be done for projects that have cash flows of more than one year
capital budgeting methods include :
Net present value
internal rate of return
accounting rate of return
payback period
If political influences, independent of any economic forces, lead to a larger government budget deficit, what will be the effect on the loanable funds market
Answer:
The government budget deficit will cause the interest rate to rise, reducing both saving and investment.
Another effect will be the crowding-out of the loanable funds market to private investment. This is because a government in deficit will need to issue more debt in the market, taking up many funds that could have been otherwise invested in private companies.
"A technical analyst has identified a resistance level for ABC stock at $81 and a support level at $75. The stock is currently trading at $77 and the analyst expects the stock to break the resistance level. Which order is appropriate to profit if the resistance level is broken?"
Answer:
Buy 100 ABC at $82 Stop
Explanation:
In the financial markets a resistance is an upper limit block on the market moving upward (buy). While the support is the lower limit on the market moving down (sell).
In this scenario we have a support of $75, resistance of $81 and the stock.is currently trading at $77. Just below the resistance.
If the analyst expects the stock to break the resistance of $81 then he should set a trade that is a buy since the market will go above $81.
When the market breaks a resistance it is expected to sky rocket, so the analyst will set a trade stop at $82, so that when the market is coming back down to the resistance level it will stop before it gets to $81.
On the other hand if a support is expected to be broken a sell trade is placed.
The Edmonton Company is issuing $50,000 face value, 10% bonds with detachable stock warrants. The value of the bonds without the warrants is $40,000 and the value of the warrants is a total of $10,000. The bonds with the warrants sold for $55,000. The journal entry to record the sale will include:
Answer:
Assuming that the warrants are detachable, the journal entry should be:
Dr Cash 55,000
Cr Bonds payable 40,000
Cr Paid-in capital stock warrants 11,000
Cr Premium on bonds payable 4,000
The value of the warrants must be recorded separately under the paid-in capital stock warrants account, and any excess amount will be allocated proportionally between that account and the as a premium on bonds payable account.
Pumped Up Company purchased equipment from Switzerland for 140,000 francs on December 16, 20X7, with payment due on February 14, 20X8. On December 16, 20X7, Pumped Up also acquired a 60-day forward contract to purchase francs at a forward rate of SFr 1 = $0.45. On December 31, 20X7, the forward rate for an exchange on February 14, 20X8, is SFr 1 = $0.475. The spot rates were
Answer:
Kindly check the explanation section because the answer is long.
Explanation:
(1). Date: December 16.
Details: Equipment = 140,000 × .46 = 64,400.
Accounts payable(Sfr) = 140,000 × .46 = 64,400.
Foreign currency received from broker(Sfr) = 140,000 × .45 = 63,000.
Dollar payable to exchange broker($) 140,000 × .45 = 63,000.
(2). Date: December 31.
Details= foreign currency transaction loss = 140,000 × ( .48 - .46) = 2,800
Revaluation of Accounts payable(Sfr) = 140,000 × ( .48 - .46) = 2,800
Foreign currency received from broker (Sfr) = 140,000 × (.475 - .45) = 3,500.
Foreign currency transaction gain= 140,000 × (.475 - .45) = 3,500.
(3). Date : February 14.
Details: Foreign currency transaction loss = 140,000 × (.475 - .47) = 700
Foreign currency receivable from broker = 140,000 × (.475 - .47) = 700
Account payable = 140,000 × (.47 - .48) = - 1,400 = 1,400.
Foreign currency transaction Gain= 140,000 × (.47 - .48) = - 1,400 = 1,400
Dollars payable to exchange broker = 140,000 × .45 = 63,000
Cash = (140,000 × .45) = 63,000
Foreign currency uni(Sfr) = 140,000 × .47 = 65,800.
Foreign currency receivable from broke(Sfr) = 140,000 × .47 = 65,800.
Accounts payable(Sfr) =140,000 × .47 =65,800.
Foreign currency units(Sfr) = 140,000 × .47 = 65,800.
Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio
Answer:
contribution margin ratio= 0.4
Explanation:
Giving the following information:
Selling price per unit= $20
Unitary variable cost= $12
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (selling price - unitary variable cost) / selling price
contribution margin ratio= (20 - 12) / 20
contribution margin ratio= 0.4
The contribution margin ratio is 0.4.The contribution margin ratio is the difference between company sales and variable costs, expressed as a percentage.
What is the contribution margin ratio?The total margin generated by an entity represents the amount of revenue available to cover fixed costs and generate profits.
The contribution margin ratio of a donation is the difference between a company’s sales and variable costs, expressed as a percentage. This ratio shows the amount of money available to cover fixed costs.
Giving the following information:
Selling price per unit is $20
Unitary variable cost is $12
To calculate the contribution margin ratio, we need to use the following formula:
[tex]\rm\,Contribution \;Margin\; Ratio= \frac{(Selling\; Price - Unitary Variable Cost)}{selling \;price} \\contribution \;margin\; ratio= \dfrac{ (20 - 12)}{20}\\Contribution\, margin\, ratio\, = 0.4[/tex]
Hence, the contribution margin ratio is 0.4.
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Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 512,000 $ 389,000 $ (123,000 ) ANC Corporation 466,000 512,000 46,000 Totals $ 978,000 $ 901,000 $ (77,000 ) Long term: Drake Corporation $ 512,000 $ 576,000 $ 64,000 Aaron Industries 704,000 676,000 (28,000 ) Totals $ 1,216,000 $ 1,252,000 $ 36,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Answer:
Loreal-American Corporation
1. Adjusting Journal Entries;
Debit Unrealized Loss: Short-term Investments $123,000
Credit Investment in Blair Inc. $123,000
To record the unrealized loss on Investment in Blair Corporation.
Debit Investment in ANC Corporation $46,000
Credit Unrealized Gain: Short-term Investments $46,000
To record the unrealized loss on Investment in ANC Corporation.
Debit Investment in Drake Corporation $64,000
Credit Unrealized Gain on Long-term Investments $64,000
To record the unrealized gain on Investment in Drake Corporation.
Debit Unrealized Loss on Long-term Investments $28,000
Credit Investment in Aaron Industries $28,000
To record the unrealized loss on Investment in Aaron Industries.
2. Amount reported in the Income Statement at December 31, 2021 from the adjusting entry:
Unrealized Loss on Short-term Investments $77,000
Unrealized Gain on Long-term Investments $36,000
Unrealized Loss on Available for sale Investments $41,000
Explanation:
Cost Fair Value Unrealized Holding
Gain (Loss)
Short term: Blair, Inc. $ 512,000 $ 389,000 $ (123,000)
ANC Corporation 466,000 512,000 46,000
Totals $ 978,000 $ 901,000 $ (77,000)
Long term:
Drake Corporation $ 512,000 $ 576,000 $ 64,000
Aaron Industries 704,000 676,000 (28,000)
Totals $ 1,216,000 $ 1,252,000 $ 36,000
Ms. White lost her puppy. She advertises a reward of $50 for the return of her puppy. What is the contractual nature of Ms. White's advertisement? g
Answer:
unilateral contract
Explanation:
In this scenario, it seems that Ms. White's advertisement is for a unilateral contract. This is a contract agreement in which an individual (the offeror) promises to pay after the occurrence of a specific action or behavior. Which is what Ms. White is doing by offering money if someone brings her dog back safe and sound. Thus benefiting both parties.
In the business world, a _________________ is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms.
Answer:
Trade secret
Explanation:
A trade secret refers to things like a process, formula or design that a company owns that have an economic value and provide a competitive advantage and that are known only by certain people inside the organization. According to this, the answer is that in the business world, a trade secret is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms because trade secrets refer to intellectual property that allows the organization to have a competitive advantage and they are maintained as a secret to avoid competing firms to copy its methods.
Cheyenne Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Aug. 2 Invested $11,290 cash and $2,740 of equipment in the business. 7 Purchased supplies on account for $450. (Debit asset account.) 12 Performed services for clients, for which $1,303 was collected in cash and $689 was billed to the clients. 15 Paid August rent $634. 19 Counted supplies and determined that only $263 of the supplies purchased on August 7 are still on hand. Date Account Titles and Explanation Aug. 12
Answer:
1200
Explanation:
The bank deputy controls the money so then cheyenne repair shop fixes the money through the transactions with the amounting equivalent to the equilibrium of the bank and the transactions so you end up with 1200
Financial information is presented below: Operating expenses $ 45,000 Sales returns and allowances 4,000 Sales discounts 6,000 Sales revenue 160,000 Cost of goods sold 90,000 The amount of net sales on the income statement would be:
Answer:
$150,000
Explanation:
To calculate the net sales,
Sales Revenue
$160,000
Sales discount ($6,000)
Sales returns and allowances ($4,000)
Net sales $150,000
Shirts.com makes business dress shirts. The shirts could have defects in various ways including in the weave or color of the fabric, loose buttons, wrong dimensions, and uneven stitches. 8 shirts are randomly examined, with the following results. Is the process in control?
Shirts Defect
1 4
2 6
3 3
4 1
5 5
6 6
7 4
8 6
a.) No, the process is not in control.
b.) Not enough information to determine this.
c.) Yes, the process is in control.
Answer: c.) Yes, the process is in control.
Explanation:
For the process to be in control, the number of defects have to be between the Upper Control Limit and the Lower Control limits of the c-chart which can be used to measure defects of irregularities per unit.;
UCL = C-bar + z*√(c-bar)
LCL = C-bar - z*√(c-bar)
C - Bar = [tex]\frac{Number of Dfects}{Number of shirts}[/tex]
C - Bar = [tex]\frac{4+6+3+1+5+6+4+6}{8}[/tex]
C - Bar = 4.375
z = 3 when using the 3 sigma control
UCL = C-bar + z*√(c-bar)
UCL = 4.375 + 3 * √(4.375)
UCL = 10.65
LCL = C-bar - z*√(c-bar)
LCL = 4.375 - 3 * √(4.375)
LCL = -1.9
LCL = 0 (Lower limit minimum should be 0 at least)
Defects are within the control limits. The process is in control.
The Process is in Control when the Upper Control Limit is above Zero atleast and Lower Control Limit should be Zero. Hence option is C is correct.
Upper Control Limit and Lower Control LimitTo Answer the given question, we need to find the value of UCL and LCL. The Formula for the UCL and LCL are as follows:
UCL = C-bar + z*√(c-bar)LCL = C-bar - z*√(c-bar)Where C- Bar is average of total numbers of defect shirts, hence value = 4.375, and z is sigma value control thus value will be 3.
Solving these equation will give result UCL as 10.65, and LCL as -1.9. Therefore, correct option is C. Yes, the process is in control.
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Fernando Designs is considering a project that has the following cash flows and WACC data. What is the project's discounted payback period? (6 points) What is the project’s modified internal rate of return?
Answer:
Discounted Payback period 3 years
Modified Internal rate of return 4.833%
Explanation:
Fernando Designs has following cash flows ,
year 1 : -$900
Year 2 : $500
Year 3 : $500
Year 4 : $500
Using 10% discount factor the cashflows will be,
discounted values
Year 1 : -900
Year 2 : 454.54
Year 3 : 445.45
Year 4 : 4132231
Payback period is -900 + 454.54 +445.45 = 3 years.
Modified Internal rate of return; [tex]\sqrt[n]{\frac{FV of cash inflows}{PV of cash outflow} }[/tex]
[tex]\sqrt[4]{\frac{1314}{900} }[/tex] = 4.833%
The closing entries show a debit to retained earnings of $350, and a credit to retained earnings of $750. There was also a credit to dividends payable of $100. This company had a:
Answer:
net income = $400
Explanation:
closing entries:
Dr Retained earnings 350
Cr Income summary 350
Dr Income summary 750
Cr Retained earnings 750
Dr Retained earnings 100
Cr Dividends 100
net income = $750 - $350 = $400
Dividends reduce retained earnings, but net income must exist before any dividends can be distributed.
The amount of time a project manager estimates it will take to complete the activity under ideal conditions is known as:
Answer:
pessimistic time
Explanation:
The term that is being described in the question is known as pessimistic time. Like mentioned, this is a concept used in the program evaluation and review technique known as PERT and widely used in project planning in order to estimate the longest period of time it will take for a task/project to be fully completed and/or delivered to the client. Known as a pessimistic time since it is the worst possible outcome of time spent on a project.
Your university is considering two projects to increase enrollment: offering traditional classes from midnight to 6 a.m. or offering house call classes where the professor would visit your home to provide instruction. Use a simple scoring model with at least three criteria to evaluate these two potential projects and indicate which project should be chosen.
The correct answer to this open question is the following.
The criteria for our simple scoring model will bee the following:
Project 1. Midnight to 6:00AM
CRITERIA. WEIGHT SCORE
-Number of teachers 3 3
-Teachers salaries. 3 3
-Classroom cost. 1 1
-N. Students 2 2
Project 2. Home visit.
-Number of teachers 3 3
-Teachers salaries. 3 3
-Transportation. 3 3
-N. Students. 3 3
As we can see in the tables, project 1 is more feasible because depending on the number of students, the school can use one or two classrooms which means hiring teachers according to the number of students registered in a class.
On project 2, the variables increased the costs and the risk because depending on the number of students and the classes needed, the school would have to hire many teachers for different class times. This could be exponential. Another issue to consider is the fact that on project number 2, the school has to pay for the transportation of teachers to the student's home.
So in general terms, project 1 is more feasible.
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 13,000 cushions November 15,000 cushions December 18,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion. Required a. Prepare a production budget for October and November. Do not use a negative sign with your answers.
Answer:
Production budget for October and November
October November
cushions cushions
Budgeted Sales 13,000 15,000
Add Budgeted Closing Inventory 3,000 3,600
Total Production needed 16,000 18,600
Less Budgeted Opening Inventory (2,600) (3,000)
Production Budget 13,400 15,600
Explanation:
A Production Budget shows the quantities of finished goods that must be produced to meet expected sales plus any increase in inventory levels that might be required.
Items Billions of $
Savings deposits 7000
Money market mutual funds 700
M2 13700
Checking deposits 2250
Small time deposits 750
Required:
Calculate the amount of currency in billions of dollars in the economy from the given information. Assume zero traveler’s checks for answering this question.
M1: 4750
2500 billion in the economy
Applying Excel: Exercise (Part 2 of 2)
Requirement 2:
A
B
1
2
3
4
5
6
7
Chapter 11: Applying Excel
Data
Sales $45,000,000
Net operating income $4,500,000
Average operating assets$15,000,000
Minumum required rate of return 21%
Revise the data in your worksheet as follows:
If your formulas are correct, you should get the correct answers to the following questions.
a. What is the ROI?
b. What is the residual income? (Negative amount should be indicated by a minus sign.)
c. Why is the residual income positive?
Answer:
ROI 15%
Residual Income $1,350,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $4,500,000 - (21% * $15,000,000 )
RI = $1,350,000
ROI = [tex]\frac{Net Operating Income}{Capital Employed}[/tex]
Capital Employed = Sales - Average operating assets
ROI = 15%
Residual income is positive when the department has meet the minimum return requirement. Minimum return is the return that is required by the company stakeholders. The particular projects and activities are selected on the basis of residual income.
The structural unemployment rate is 1.7 percent, the frictional unemployment rate is 2.6 percent, and the economy's current unemployment rate is 3.9 percent. The economy is in:_______.
a. long-run equilibrium.
b. a recessionary gap producing more than Natural Real GDP.
c. a recessionary gap producing less than Natural Real GDP.
d. an inflationary gap producing Natural Real GDP.
e. an inflationary gap producing more than Natural Real GDP.
Answer:
a. long-run equilibrium.
Explanation:
In the circumstances that the structural unemployment rate is 1.7 percent, the frictional unemployment rate is 2.6 percent, and the economy's current unemployment rate is 3.9 percent. Then we can say that the economy is in a long-run equilibrium.
Structural unemployment can be defined as an involuntary unemployment that arises as a result of the incompatibility between a worker's skills set and requisite skills an employer seeks from the workers or due to technological changes.
Frictional unemployment is a form of unemployment which is voluntary because employees which to change jobs or move to another better job.
Hence, the economy is in a long-run equilibrium because the rate of unemployment has become constant, thus, prices and wages will be adjusted in order to reach wages equilibrium level.
Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 43,000 shares of $3 par value common stock for $299,000 cash.On April 1, OP Co. issues no-par value common stock for $71,000 cash.On April 6, MPG issues 2,100 shares of $20 par value common stock for $40,000 of inventory, $140,000 of machinery, and acceptance of a $90,000 note payable.
Answer:
March 1
Cash $299,000 (debit)
Common Stock $129,000 (credit)
Share Premium $170,000 (credit)
April 1
Cash $71,000 (debit)
Common Stock $71,000 (credit)
April 6
Inventory $40,000 (debit)
Machinery $140,000 (debit)
Common Stock $42,000 (credit)
Share Premium $48,000 (credit)
Note Payable $90,000 (credit)
Explanation:
Any cash paid in in excess of the par value for par value share is Accounted for in the Share Premium reserve.
No Par Value share do not have a Share Premium Reserve.