For plato, Expansionary stance.
Expansionary stance is the type of stance does your country take on fiscal policy. Hence, option A is correct.
What is Expansionary stance?When government expenditure surpasses tax receipts, the fiscal attitude is said to be "expansionary" because this tends to increase aggregate demand. For instance, household spending will increase if income taxes are reduced by the government.
Governments engage in contractionary fiscal policy when they either cut spending or raise taxes. Its name alludes to the method by which the economy contracts. It limits the amount of money that both businesses and people can spend.
Contractionary policy is used to control inflation. Governments are said to be implementing an expansionary fiscal strategy when they lower tax rates while raising spending to promote economic growth. As a result of an increase in purchasing power, consumption increases.
Thus, option A is correct.
For more information about Expansionary stance, click here
https://brainly.com/question/26719610
#SPJ2
What is the difference between a capital gains tax and a sales tax?
Answer:
Long-term capital gains are usually taxed at a lower rate. Any capital gain you make on a short-term property is taxed at your regular income tax rate. However, if you can hold on to a property for more than one year, you could pay significantly less.
Explanation:
Answer:
Capital gains tax is a lower tax price, because it is the sales price minus the original cost. A sales tax on the other hand is a higher tax that is going to the government.
Explanation:
Classify the following investments. Each case is independent of the other.
Investment Classifications
(a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold. select an Investment Classification
(b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock. select an Investment Classification
(c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year. select an Investment Classification
(d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold. select an Investment Classification
(e) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time. select an Investment Classification
(f) A bond that matures in 10 years was purchased. The company has committed the money for an expansion project planned 10 years from now.
Answer:
(d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold. select an Investment Classification.
Explanation:
Which of these best describes the relationship
between business equity and profit?
A. The proportion of the
equity one owns is more than the
proportion of the profits received.
B. The proportion of the equity one owns is less than the
proportion of the profits received.
C. The proportion of the equity one owns is the same proportion
of the profits received.
Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:
Sales $ 12,755,000
Gross profit 5,359,700
Indirect labor 422,600
Indirect materials 185,500
Other factory overhead 834,900
Materials purchased 4,251,600
Total manufacturing costs for the period 8,122,000
Materials inventory, end of period 298,900
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the following amounts. Round your answers to the nearest dollar. Cost of goods sold $fill in the blank 2 Direct materials cost $fill in the blank 3 Direct labor cost $fill in the ______
Answer:
a. Cost of goods sold = Sales - Gross profit
Cost of goods sold = $12,755,000 - $5,359,700
Cost of goods sold = $7,395,300
b. Direct Material Cost = Materials purchased - Indirect materials - Materials inventory
Direct Material Cost = $4,251,600 - $185,500 - $298,900
Direct Material Cost = $3,767,200
c. Direct labor cost = Total manufacturing costs for the period - Direct materials cost - Other factory overhead - Indirect labor
Direct labor cost = $8,122,000 - $3,767,200 - $834,900 - $422,600
Direct labor cost = $3,097,300
On the last day of December 2021, Coaster Trucks entered into a transaction that resulted in a receipt of $300,000 cash in advance related to services that will be provided during January 2022. During December of 2021, the company also performed $165,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company’s trial balance showed service revenue of $1,425,790 at December 31, 2021. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected. If Coaster Trucks makes the appropriate adjusting entry, how much service revenue will be reflected on the December 31, 2021 income statement?
Answer:
the service revenue is $1,590,790
Explanation:
The computation of the service revenue is shown below:
= Service revenue in trial balance + Services that were neither billed nor paid
= $1,425,790 + $165,000
= $1,590,790
hence, the service revenue is $1,590,790
We simply added the above two amounts
In the week to come, a bank expects $55 million in incoming deposits, $75 million in acceptable loan requests, $35 million in money market borrowings, $10 million in deposit withdrawals, and $30 million in loan repayments. The bank is expecting a: A. liquidity deficit. B. liquidity surplus. C. balanced liquidity position. D. liquidity reversal. E. None of the above.
Answer:
B. liquidity surplus
Explanation:
The expected cash inflows and outflows of the bank can be summarized using the formula provided below:
Net inflow/(outflow)= incoming deposits-acceptable loan requests+ market borrowings-deposit withdrawals+loan repayments
incoming deposits=$55 million(inflow)
acceptable loan requests=$75 million(outflow)
money market borrowings=$35 million(inflow)
deposit withdrawals= $10 million(outflow)
loan repayment=$30 million(inflow)
Net inflow/(outflow)=$55 million-$75 million+$35 million-$10 million+$30 million
net inflow(outflow)=$35 million
The above net inflow of $35 million represents liquidity surplus
Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Joshua inherited an annuity worth $6,830.77 from his uncle. The annuity will pay him eight equal payments of $1,100 at the end of each year. The annuity fund is offering a return of ______.
Answer:
6.00%
Explanation:
Rate of return can be calculated using RATE function in excel or I/Y on calculator or using the formula for annuity
Annuity Rate = RATE(nper=8, pmt=1100, pv=-6,830.77, fv = 0, 0)
Annuity Rate = 0.06000118
Annuity Rate = 6.00%
On January 15, Pinkney, Inc., issued 10,000 shares of $10 par value common stock in exchange for land and a building. Five years ago, the stockholder purchased the land for $40,000 and constructed the building at a cost of $90,000. At the time of the stock issuance, the land and the building had fair market values of $45,000 and $95,000, respectively. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer and Explanation:
The journal entry is shown below:
Land $45,000
Building $95,000
To Common Stock,$10 Par value $100,000 (10,000 shares × $10)
To Paid in capital excess of Par Value, Common Stock $40,000
(Being the shares are issued in exchange for land)
Here land and building is debited as it increased the assets and credited the common stock and paid in capital as it also increased the equity
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify):
Account Titles Debit Credit
Cash $2
Accounts Receivable 6
Supplies 13
Land 0
Equipment 54
Accumulated Depreciation $5
Software 21
Accumulated Amortization 6
Accounts Payable 4
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Common Stock 72
Retained Earnings 9
Service Revenue 0
Salaries and Wages Expense 0
Depreication Expense 0
Amortization Expense 0
Income Tax Expense 0
Interest Expense 0
Supplies Expense 0
Totals 85 85
Required
a. In the journal, record the entry to close revenue and expense accounts to retained earnings.
b. Post the closing statement.
Answer:
H & H Tool, Inc.
a. Journal (Closing Entries):
Debit Revenue $000
Credit Retained Earnings $000
To close the revenue accounts to the retained earnings.
Debit Retained Earnings $000
Credit Expenses $000
To close the expense accounts to the retained earnings.
b. General Ledger Accounts:
Cash
Date Account Titles Debit Credit
Jan. 1 Balance $2
Accounts Receivable
Date Account Titles Debit Credit
Jan. 1 Balance $6
Supplies
Date Account Titles Debit Credit
Jan. 1 Balance $13
Equipment
Date Account Titles Debit Credit
Jan. 1 Balance $54
Accumulated Depreciation
Date Account Titles Debit Credit
Jan. 1 Balance $5
Software
Date Account Titles Debit Credit
Jan. 1 Balance $21
Accumulated Amortization
Date Account Titles Debit Credit
Jan. 1 Balance $6
Accounts Payable
Date Account Titles Debit Credit
Jan. 1 Balance $4
Common Stock
Date Account Titles Debit Credit
Jan. 1 Balance $72
Retained Earnings
Date Account Titles Debit Credit
Jan. 1 Balance $9
Explanation:
a) Trial Balance as of January 1, 2018:
Account Titles Debit Credit
Cash $2
Accounts Receivable 6
Supplies 13
Equipment 54
Accumulated Depreciation $5
Software 21
Accumulated Amortization 6
Accounts Payable 4
Common Stock 72
Retained Earnings 9
Totals 96 96
b) The revenue and expenses have zero balances. This means that they had been closed to the retained earnings account (Income Summary) before now. There is no logical need to repeat the process. However, a dummy has been entered for demonstration purpose.
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 20,000 30,000 Raw material (grams) 50,000 40,000 Each unit of finished goods requires 7 grams of raw material. The company plans to sell 270,000 units during the year. How much of the raw material should the company purchase during the year
Answer:
1,950,000 grams
Explanation:
The computation of the material should be purchased is given below:
Raw materials purchased is
= Ending inventory of raw materials + Materials to be used - Beginning Inventory of raw materials
where,
Raw materials to be used = units produced × 7 grams
Units produced is
= Ending inventory of finished goods + units sold - beginning inventory of finished goods
= 30,000 units + 270,000 units - 20,000 units
= 280,000
Now raw materials used is
= 280,000 × 7 grams
= 1,960,000 grams
Now
Materials purchased = Ending inventory of raw materials + Materials to be used - Beginning Inventory of raw materials
= 40,000 grams + 1,960,000 grams - 50,000 grams
= 1,950,000 grams
The Business Cycle Dating Committee and the National Activity Index are two methods used to monitor the phases of the business cycle and determine when a recession occurs. Decide which method each of the six items describes and place it in the correct category. If the item does not describe either, then place it in the neither category.
Business Cycle Dating Committee National Activity Index neither
Answer:
Note: The full question is attached below as picture
Business Cycle Dating Committee and the National Activity Index are two methods used to monitor the phases of the business cycle established by the Federal Reserve Bank of Chicago.
National Activity Index: uses a weighted average of over 80 economic indicators to identity business cycle trends.
Business Cycle Dating: uses updated or revised information to determine phases of the business cycle .
Business Cycle Dating: identifies recessions with a considerable lag making it less useful for designing policy.
National Activity Index: does a good job in identifying recessions in the current time frame.
Neither Business Cycle Dating Committee nor the National Activity Index: compiles the financial statements of publicly traded companies.
National Activity Index uses a weighted average of over 80 economic indicators to identity business cycle trends. Business Cycle Dating: uses updated or the revised information is to determine phases in business cycle.
What is the national business and neither cycle index?The national index is the weighted average of the 85 existing indicators of economic activity. It considered having a value of zero and an SD of one.
The business cycle is an interval of expansion followed by the recession of the economic activity.
Neither Cycle is compiled the financial statements of publicly traded companies While the national activity index is doing a good job in identifying recessions in the current time frame.
The National Activity Index uses a weighted average of over 80 economic indicators to identity business cycle trends. The business Cycle is uses updated or revised information to determine phases of the business cycle.
Fund out more information about Cycle Dating.
brainly.com/question/3302065.
Determine the gross income of the beneficiaries in the following cases:
1. Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily retire.
2. Trina contracted a disease and was unable to work for six months. Because of her dire circumstances, her employer paid her one-half of her regular salary while she was away from work.
3. Coral Corporation collected $1,000,000 on a key person life insurance policy when its chief executive died. The corporation had paid the premiums on the policy of $77,000, which were not deductible by the corporation.
4. Juan collected $40,000 on a life insurance policy when his wife, Leona, died in 2020. The insurance policy was provided by Leona’s employer, and the premiums were excluded from Leona’s gross income as group term life insurance. In 2020, Juan also collected the $3,500 accrued salary owed to Leona at the time of her death.
Answer:
1. Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily retire.
the compensation is included in Justin's gross income.
2. Trina contracted a disease and was unable to work for six months. Because of her dire circumstances, her employer paid her one-half of her regular salary while she was away from work.
the compensation is included in Trina's gross income.
3. Coral Corporation collected $1,000,000 on a key person life insurance policy when its chief executive died. The corporation had paid the premiums on the policy of $77,000, which were not deductible by the corporation.
the benefits are included in the company's taxable income, but the premiums paid are deductible
4. Juan collected $40,000 on a life insurance policy when his wife, Leona, died in 2020. The insurance policy was provided by Leona’s employer, and the premiums were excluded from Leona’s gross income as group term life insurance. In 2020, Juan also collected the $3,500 accrued salary owed to Leona at the time of her death.
the life insurance policy proceeds are not taxable, but the accrued salaries are taxedTom and Linda are married taxpayers who file a joint return. They have itemized deductions of $13,050 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2017
Answer:
$13,000
Explanation:
Standard deduction for Married filling jointly = 24,000
Adjusted gross income = $40,000
Greater of itemized deduction ($13,050) and Standard deduction ($24,000) = $27,000
Taxable income = Adjusted gross income - The greater of the 2 above
Taxable income = $40,000 - $27,000
Taxable income = $13,000
So therefore, their taxable income for 2017 is $13,000
John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent of the profits in accordance with his contribution. Lesa and Trevor, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply
Answer: State Law.
Explanation:
This dispute falls under the jurisdiction of state law and so that is what the court will use. This is unless the company established a profit-sharing agreement as per the Uniform Limited Liability Company Act (ULLCA) and the state that they are in is one of the 19 states and District that enacted the UCCLA.
As the company never established a profit agreement principle, this falls under State law which normally calls for the division of profits equally amongst partners.
A company produces a single product. Variable production costs are $13.40 per unit and variable selling and administrative expenses are $4.40 per unit. Fixed manufacturing overhead totals $50,000 and fixed selling and administration expenses total $54,000. Assuming a beginning inventory of zero, production of 5,400 units and sales of 4,300 units, the dollar value of the ending inventory under variable costing would be:_____.
a. $14,740.
b. $24,640.
c. $19,580.
d. $9,900.
Answer:
Ending inventory= $19,580
Explanation:
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
We need to calculate the total unitary variable cost:
Total unitary variable cost= 13.4 + 4.4
Total unitary variable cost= $17.8
Now, the cost of ending inventory:
Ending inventory= 1,100*17.8
Ending inventory= $19,580
Celine Dion Company issued of 10% 20 -year bonds on January 1, 2014, at Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount.
Instructions:
Prepare the journal entries to record: The issuance of the bonds.
Answer:
Dr Cash $612,000
Cr bonds payable $600,000
Cr premium on bonds payable $12,000
Explanation:
The face value of $600,000 and price factor of 102% are missing from the question:
Proceeds from bond issuance=face value*price factor
Proceeds from bond issuance=$600,000*102%
Proceeds from bond issuance=$612,000
The cash received would be debited to cash account while bonds payable and premium on bonds payable are credited with $600,000 and $12000 respectively
X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
Answer:
4
Explanation:
Note: The complete question is attached as picture below
Degree of Operating Leverage = Contribution/Operating Income
Degree of Operating Leverage = $48000 / $12000
Degree of Operating Leverage = 4
So. X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be 4
You have been working on some financial projections manually for two days now. It seems that each time you think you have them completed your boss shows up with a new assumption or another "what if" question. If you only had a copy of a spreadsheet software program for your personal computer, you could plug in the new assumptions and revise the estimates with ease. Then, a colleague offers to let you make a copy of some software that is copyrighted. What would you do?
Answer:
I would reject the copy and advise my colleague not to make a copy as this action violates the copyright law.
Explanation:
Copyright gives the originator the exclusive (or intellectual property) right to make copies of the software. To make a copy, one needs to obtain the permission of the originator. The law aims to protect the originator or creator of the intellectual property from illegal use and abuse.
Question 1: TimeValueOfMoneyPro110Alt1 An engineer in a developing country observes that his project bank account has grown from 1400000 to 1558869 (local currency units) in 15 days with no deposits or withdrawals being made. He knows that the account earns interest compounded daily. Question 1 What is the daily compound rate of interest earned on the account
Answer: 0.72%
Explanation:
Using the Present value formula:
Present value = Future value / (1 + r)^n
Making r the subject of the formula makes the equation:
r = (Future value / Present value ) ^ 1/n - 1
= (1,558,869/ 1,400,000)¹/¹⁵ - 1
= 0.72%
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $20, $12, $8, $4, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $8, $12, $20, $32, and $44 (one buyer at each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Price Quantity Demanded Quantity Supplied
($ per widget) (widgets) (widgets)
$2
$4
$8
$12
$20
$32
$44
In this market, the equilibrium price will beper widget, and the equilibrium quantity will be (0 or 5 or 2 or 1 or 3 or 4) widgets.
Answer:
Price Quantity Demanded Quantity Supplied
$2 5 1
$4 5 2
$8 5 3
$12 4 4
$20 3 5
$32 2 5
$44 1 5
the equilibrium price is $12 with 4 units demanded and supplied
A company maintains its records using accrual basis accounting; however, their accountant wants to create a statement of cash flows and needs to determine the cash flow from operating activities. For simplicity, we assume only one expense account (salaries). The following is data gathered from their records.
Services provided to customers during the period $600,00
Salaries expense for the period 350,000
Accounts receivable beginning balance 45,000
Accounts receivable (ending balance) 20,000
Salaries payable( beginning balance) 14,000
Salaries a able (ending balance) 8,000
Required:
a. Determine the amount of cash collected from customers during the period.
b. Determine the amount for cash paid for salaries during the period.
c. Determine accrual basis net income for the period.
d. Determine cash basis net income for the period.
Answer and Explanation:
The computation is shown below;
a. The amount of cash collection from customers is
= $45,000 + $600,000 - $20,000
= $625,000
b. The amount of cash paid for salaries is
= $14,000 + $350,000 - $8,000
= $356,000
c, The accrual basis net income is
= $600,000 - $350,000
= $250,000
d. The cash basis net income is
= $625,000 - $356,000
= $269,000
The banking crisis of 2008 is quite interesting to analyze. The factors that led to this near banking collapse are intriguing to say the least. In this exercise you will be evaluating the factors that led up to the crisis and determining which ones could have created this scenario. There is no simple answer to what led to the banking crisis, as there were many factors that contributed over a long period of time. Understanding the factors that led to the crisis is very important, as such an understanding will help regulators prevent similar situations in the future.
Fore each item listed, select how much it contributed to the banking crisis.
1. The repeal of some provisions of the Glass-Steagall Act of 1933
a. Major contributor
b. Not a major contributor
2. Savvy individual investors
a. Major contributor
b. Not a major contributo
3. The Community Reinvestment Act (CRA)
a. Major contributor
b. Not a major contributor
4. Borrowersâ lack of financial knowledge
a. Major contributor
b. Not a major contributor
Answer:
1. The repeal of some provisions of the Glass-Steagall Act of 1933
a. Major contributor
The repeal of some of the provisions of the Glass-Steagall Act led to lesser restrictions on the banking industry which allowed for the kind of investments that banks made leading up to 2008 that led to the crisis.
2. Savvy individual investors
b. Not a major contributor
Savvy individual investors knew how to invest and what to invest in and mostly avoided the securities that caused the crisis.
3. The Community Reinvestment Act (CRA)
a. Major contributor
The CRA allowed for banks to be able to lend money to lower income households who were the major defaulters on the mortgages which was a major contributor to the crisis.
4. Borrowers lack of financial knowledge
a. Major contributor.
A lot of the borrowers did not understand what they were getting into and so when time came to pay back, they ended up being unable to. A fact which contributed in no small way to the banking crisis.
The Glass-Steagall Act, which has been adopted as part of the Banking Law of 1933 by the United States House of representatives, prohibited commercial banks from gengaing in financial services and vice versa. During in the Economic Crisis, an emergency mechanism was put in place to avoid over 5,000 banks from failing. Steagall's usefulness diminished over time, and it was substantially repealed in 1999.
2. Not a significant contributorDuring the economic meltdown of 2008–09, markets crashed, wiping out trillions of dollars of wealth around the world. Many companies' stock was on sale at deep prices, giving savvy investors a once-in-a-lifetime opportunity to buy.
3. Significant contributorThe CRA establishes an incentive structure that could entice banks to create or buy loans that otherwise would have been considered too risky. However, empirical evidence reveals that CRA-related loans constituted up a small percentage of the financial sector even during mortgage bubble.
4. Significant contributorThe company's economic knowledge is critical. The mix of financial, credit, and debt repayment information necessary to make fiscally responsible decisions in our daily lives is described as financial literacy.
Learn more:https://brainly.com/question/10565599?referrer=searchResults
In the market for financial capital,
a. those who supply financial capital pay interest on loans.
b. those who demand financial capital receive interest on loans.
c. the demand for financial capital comes from savings, and the supply goes to making loans.
d. the supply of financial capital comes from savings, and the demand goes to making loans.
Answer:
d. the supply of financial capital comes from savings, and the demand goes to making loans.
Explanation:
Capital markets refer to the areas where deposits and investment are transferred between the capital providers and others in need of capital. Capital markets consist of the main market, where new shares are released and exchanged, and the secondary market, where already issued securities are exchanged by investors.
Standard, Inc. reported EBIT of $35 million for last year. Depreciation expense totaled $20 million and capital expenditures came to $7 million. Free cash flow is expected to grow at a rate of 6 percent for the foreseeable future. Stuart faces a 21 percent tax rate and has a .40 debt to equity ratio with $120 million (market value) in debt outstanding. Standard's equity beta is 1.25, the risk-free rate is currently 5 percent and the market risk premium is estimated to be 7.5 percent. What is the current value (in millions) of Standard's equity?
Answer:
$710.84 million
Explanation:
Net income = $35 million
Depreciation = $20 million
Capital expenditures = $7 million
Tax rate = 21%
D/E ratio = 0.4
Growth rate = 6%
Equity beta = 1.25
So, firm's asset beta = Equity beta/(1 + D/E*(1-T))
= 1.25/(1 + 0.4*(1-0.21))
= 0.94985
So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures
= 35 + 20 - 7
= $48 million
Risk free rate Rf = 5%
Market risk premium = 7.5%
So, firm cost of capital using CAPM is Rf + Beta*(MRP)
Kc = 5 + 0.94985*7.5
Kc = 12.1239
So, Firms value using constant dividend growth model:
FV = FCF*(1+g)/(Kc-g)
FV = 48*1.06 / 0.121239-0.06
FV = 50.88 / 0.061239
FV = 830.8430901876255
FV = $830.84 million
Debt = $120 million
Market Value of equity = FV - Debt
Market Value of equity = $830.84 million - $120 million
Market Value of equity = $710.84 million
In Los Angeles County, the median price rose 0.5% to $618,000 in June and sales fell 12.1%.
In Orange County, the median price slipped 0.3% to $738,000 and sales fell 9.4%.
In Riverside County, the median price climbed 5.3% to $399,000 and sales fell 4%.
In San Bernardino County, the median price rose 1.5% to $340,000 and sales fell 11.4%.
In Ventura County, the median price dropped 5.7% to $580,000 and sales rose 1.6%.
In San Diego County, the median price rose 2.6% to $590,000 and sales fell 7.4%.
1. The price elasticity of demand in San Bernardino County is ____. Give your answer in two decimals.
2. Holding the price elasticity of demand constant, sales in San Bernardino County would fall by __% if prices increased by 2%. Give your answer to two decimals.
3. Assume that no other factors influence the demand or supply of housing. In ___ County, the law of demand appears to be violated. Choices: San Diego, Riverside, Orange and Los Angeles
Answer:
Part 1 : -7.6
Part 2: 15.2%
Part 3: Orange County
Explanation:
Part 1. Price Elasticity:
The formula for Price Elasticity is:
Price Elasticity = Percentage Change in Quantity Demanded divided by the percentage change in price.
So,
We need percentage change in price and percentage change in quantity demanded in order to solve for price elasticity of demand in San Bernardino County.
So,
As we know that,
In San Bernardino County, the median price rose 1.5% to $340,000 and sales fell 11.4%.
Hence,
The Percentage Change in Price = 1.5
The Percentage Change in Quantity Demanded = -11.4
Just Plugging in these values in the Price Elasticity formula, we get:
Price Elasticity of Demand = -11.4 / 1.5
Price Elasticity of Demand = -7.6
Part 2: Condition Given: If Price increased by 2%
So,
In this we are asked to find the percentage change in quantity demanded.
Therefore, we will use the same formula of Plasticity of demand.
Price Elasticity of Demand = Percentage Change in Quantity Demanded divided by the percentage change in price.
Making Percentage Change in Quantity Demanded as subject:
Percentage Change in Quantity Demanded = Price Elasticity multiplied by the percentage change in price.
Here,
Percentage Change in price = 2%
Price Elasticity of Demand = -7.6
Just plugging in these values in to the formula:
Percentage Change in Quantity Demanded = -7.6 x 2
Percentage Change in Quantity Demanded = -15.2
Therefore, Holding the price elasticity of demand constant, sales in San Bernardino County would fall by _15.2_% if prices increased by 2%.
Part 3:
To solve this part, first we need to understand the law of demands:
Law of demands says that the relationship of change in price and change in quantity demanded is inversely proportional keeping all other factors constant. So, if price goes high, quantity demanded will go down and vice versa.
And here,
In _Orange__ County, the law of demand appears to be violated.
On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept:
Weatherford Company Absorption Costing Income Statement For the Month Ended November 30
Sales (3,300 units) $125,400
Cost of goods sold:
Cost of goods manufactured (3,900 units) $105,300
Inventory, November 30 (500 units) (13,500)
Total cost of goods sold 102,500
Gross profit $44,500
Selling and administrative expenses 25,730
Income from operations $18,770
Assume the fixed manufacturing costs were $28,800 and the fixed selling and administrative expenses were $12,600.
Required:
Prepare an income statement according to the variable costing concept.
Answer:
See below
Explanation:
Income statement according to variable costing .
Sales
$125,400
Less:
Variable cost of goods sold
Beginning inventory
$0
Variable cost of goods manufactured
($50,000)
Ending inventory
($13,500)
Variable cost of goods sold
($63,500)
Manufacturing margin
$64,000
Less:
Variable selling and administrative expenses
($25,730)
Contribution margin
$35,270
Less:
Fixed costs
Fixed manufacturing cost
($28,800)
Selling and administrative expenses
($12,600)
Income from operations
$3,000
How do you start an apprenticeship
Answer:
To Start a Program
Contact the Division of Apprenticeship Standards. ...
Determine the Essential Job Skills. ...
Identify Educational Partners and the Desired Classroom Component of Training. ...
Establish Apprenticeship Program Standards. ...
Submit Your Program to DAS for Approval.
In an apprenticeship, you receive on-the-job training in a trade.Trade unions, contractors, and private companies provide apprenticeship programs. While you don't need any experience in the trade to become an apprentice, many people in this career path gain general labor experience before applying.
In order to design your own apprenticeship, you'll need to build a group of 10 employers. The group should reflect the scope of the industry, and include at least 2 employers with less than 50 employees. When the group has been formed, everyone must play an active role and work together to develop the standard.
Explanation:
Learning Objective 15-C2: Explain job cost sheets and how they are used in job order costing. Skip to question In a job order costing system, the costs of producing each job are accumulated on a separate job cost sheet. Costs of direct materials, direct labor, and overhead applied are accumulated separately on the job cost sheet and then added to determine the total cost of a job. Job cost sheets for jobs in process, finished jobs, and jobs sold make up subsidiary records controlled by general ledger accounts.
Answer:
Job Cost Sheets:
In a job order costing system, the costs of producing each job are accumulated on a separate job cost sheet.
Explanation:
A job cost sheet is used in a job order costing system to record all manufacturing costs related to each job. The costs that are recorded in the job cost sheet include direct material, direct labor, and manufacturing overhead costs. Since these job costs are traceable to their respective jobs, the actual direct material and labor costs are used.
Don James purchased a new automobile for $20,000. Don made a cash down payment of $5,000 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount of the required monthly payment. (Round your final answer to nearest whole dollar amount.)
Answer:
monthly payment = $669.76
Explanation:
using the present value of an annuity formula we can determine the monthly payment:
monthly payment = present value of an annuity / PV annuity factor
present value of an annuity = $20,000 - $5,000 = $15,000 PV annuity factor 2%, 30 periods = 22.396monthly payment = $15,000 / 22.396 = $669.76
On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $400,000 zero-interest-bearing note payable, promising 5 equal annual installments of $80,000, with the first payment due December 31, 2017. The prevailing rate of interest for a note of this type is 8%.
Required:
What is the carrying value of the notes payable at 12/31/14, after the first payment is made (assuming that the effective-interest method is used)?
Answer:
Leary Company
The carrying value of the notes payable at December 31, 2017, after the first payment is made (assuming that the effective-interest method is used) is:
= $320,000
Explanation:
a) Data and Calculations:
0% Note payable = $400,000
Payment period = 5
Annual installmental payments = $80,000
Prevailing rate of interest for similar note = 8%
Schedule
Period PV PMT Interest FV
1 $-591,650.08 $80,000.00 $-47,332.01 $558,982.09
2 $-558,982.09 $80,000.00 $-44,718.57 $523,700.66
3 $-523,700.66 $80,000.00 $-41,896.05 $485,596.71
4 $-485,596.71 $80,000.00 $-38,847.74 $444,444.44
5 $-444,444.44 $80,000.00 $-35,555.56 $400,000.00
Total $400,000.00 $-208,349.93
Carrying value
Ending value = $400,000
Interest expense -47,332.01
Cash repayment -32,667.99
Carrying value = $320,000