Answer:
B. equals the relative price of the two goods.
Explanation:
A budget constraint refers to how much money a person or a company has to spend in any given pair of goods or services, e.g. you have $10 and you want to eat hot dogs and drink Coke.
The slope of the budget constraint refers to the relative price of the two goods or services, e.g. a hot dogs costs $2 and a Coke costs $1.50. The slope of the budget constraint = $1.50 / $2 = 0.75. The slope of a budget constraint is always equal or less than 1, that is why the smallest value is the numerator.
Consider public policy aimed at smoking.A. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 20%, by how much should it increase the price?B. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking 1 year from now or 5 years from now?
C. Studies also find out that teenagers have a higher price elasticity than do adults. Why might this be true?
Answer:
A. Elasticity measure the change in quantity demanded that comes with a change in price. The elasticity formula is;
Elasticity = %change in quantity demanded / % change in price
0.4 = 20% / %change in price
%Change in price = 20%/0.4
= 0.5
= Increase price by 50%
= 50% * 5 = $2.50
Government should increase the price by $2.50 to make it $7.50.
B. Effect is larger 5 years from now
Effect will be larger 5 years from now than 1 year from now. This is because in 5 years the high prices would have forced smokers to look for more alternatives to smoking than in a year.
C. Teenagers have less income.
Teenagers likely have a higher price elasticity because they do not have the income to support an increase in the price of cigarettes so when the prices increase, they buy less than adults who are more likely to have an income stream.
On January 1, 2017, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.
Required:
1. How much interest will Boston pay (in cash) to the bondholders every six months?
2. Prepare journal entries to record (a) the issuance of bonds on January 1, 2017: (b) the first interest payment on June 30, 2017; and (c) the second interest payment on December 31, 2017 3.
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102.
Answer:
1. Par Value = $3,400,000
Semi-annual coupon rate = 9%/2 = 4.5%
Semi annual coupon = Semiannual rate * Par value = 4.50$*$3,400,000
= $153,000
So, the interest that Boston will pay (in cash) to the bondholders every six months is $153,000
2. Date Account Titles and Explanation Debit Credit
Jan 1, 2017 Cash $3,400,000
Bonds payable $3,400,000
(To record the issuance of bonds)
Jun 30, 2017 Interest expenses $153,000
Cash $153,000
(To record the first interest payment)
Dec 31, 2017 Interest expenses $153,000
Cash $153,000
(To record the second interest payment)
3. S/n Account Titles Debit Credit
a Cash (3,400,000*98%) $3,332,000
Discount on Bonds payable $68,000
Bonds payable $3,400,000
b Cash (3,400,000*102%) $3,468,000
Premium on bonds payable $68,000
Bonds payable $3,400,000
When preparing the financial analysis for a business plan, the required statements and schedules will depend on the:
Complete Question:
When preparing the financial analysis for a business plan, the required statements and schedules will depend on the:
Group of answer choices
A. size of the particular project.
B. plan's presentation procedure that is expected in your own organization.
C. project's complexity.
D. All of these are correct.
Answer:
D. All of these are correct.
Explanation:
Financial analysis can be defined as the process of analyzing the stability, profitability, accuracy and viability of a business entity through its financial statements.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Hence, when preparing the financial analysis for a business plan, the required statements and schedules will depend on the following;
A. size of the particular project.
B. plan's presentation procedure that is expected in your own organization.
C. project's complexity.
A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100. At what quantity is the firm indifferent between the two technologies?
Answer: 5 units
Explanation:
Use equations.
Cost of Producing with Tech A;
= 500 + 50Q
Cost of Producing with Tech B;
= 250 + 100Q
Point of indifference;
500 + 50Q = 250 + 100Q
500 - 250 = 100Q - 50Q
50Q = 250
Q = 5 units
Banks that have national charters must join the Federal Reserve and are subjected to its
well as to examination by the Comptroller of the Currency, which is the federal agency that grants
national bank charters.
Answer: True
Explanation:
The Federal Reserve requires that all banks with National charters become members of the Federal Reserve so that they may have a say in the way the Fed runs its operations. State banks are not required to join but can if they meet some requirements.
The Office of Comptroller of the Currency (OCC) continually supervises and examines national banks to ensure that they are engaged in best practices regarding their operations and treatment of customers.
Midyear on July 31st, the Chester Corporation's balance sheet reported:______. Total Liabilities of $51.391 million Total Common Stock of $2.540 million Cash of $4.020 million Retained Earnings of $18.275 million. What were the Chester Corporation's total assets?
Answer:
$72.206 million
Explanation:
To get Chester Corporation's total assets, recall that;
Total liabilities = Total assets - (Retained earning + Total common stock)
Given that;
Total assets = ?
Retained earning = $18.275 million
Total liabilities = $51.391 million
Total common stock = $2.540 million
Total liabilities = Total assets - (Retained earning + Total common stock)
$51.391 = Total assets - ($18.275 + $2.540)
$51.391 = Total assets - $20.815
Total assets = $51.391 + $20.815
Total assets = $72.206
Therefore, Chester Corporation's total asset is $72.206 million.
Find the future value one year from now of an $8,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.
Answer:
If investment is made for one year, Future value = $8240
If investment is made for two years, Future value = $8487.2
Explanation:
The future value of a cash flow can be calculated using the following formula,
Future value = Present value * (1+i)^t
Where,
i is the rate of interest t is the time periodAs the interest rate is compounded annually, the future value after one year will be,
After one year
Future value = 8000 * (1+0.03)^1
Future value = $8240
After two year
Future value = 8000 * (1+0.03)^2
Future value = $8487.2
this is wrong
and do better because it really is not what u did ok do better bye bye!
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Answer:
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Answer:
Okay bye
Explanation:
Have a nice day!
Before protecting a worksheet to avoid people from editing the formulas, you must ________.
unlock the input cells
lock the input cells
unlock the formula cells
lock the formula cells
Answer:
Lock the Formulas Cells
Explanation:
Now, go to lock the selected cells with formulas. To do this, press Ctrl - 1 to open the Format Cells dialog again, switch to the Protection tab, and check the Locked checkbox. The locked option prevents the user from overwriting, deleting or changing the content of the cells.
Which type of credit is used to lease a building?
Answer:
service credit
Explanation:
Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $12 per hour. During August, Hassock produced 19,000 units and used 38,140 hours of direct labor at a total cost of $454,680. What is Hassock’s labor efficiency variance for August?a. $2,989 favorable.
b. $3,000 unfavorable.
c. $3,000 favorable.
d. $5,989 favorable.
e. $2,989 unfavorable.
Answer:
the labor efficiency variance for August is $1,680 unfavorable
Explanation:
The computation of the labor efficiency variance is shown below:
Labor efficiency variance is
= (Standard hours - Actual hours) × Standard rate
where,
Standard hours is
= 19,000 units × 2
= 38,000 hours
Now
Labor efficiency variance is
= (38,000 - 38,140) × $12
= $1,680 unfavorable
Hence, the labor efficiency variance for August is $1,680 unfavorable
This is the answer and the same is not provided in the given options
A savings account earns 5 percent. If the saver is in a 25 percent tax bracket, the after-tax savings rate of return would be ____ percent. (Round your answer to 2 decimal places.)
Answer:
3.75%
Explanation:
Calculation for what the after-tax savings rate of return would be
Using this formula
After-tax savings rate of return=(1.0- Saver tax bracket)*Savings account percentage
Let plug in the formula
After-tax savings rate of return =(1.0 - 0.25)*0.05
After-tax savings rate of return = 0.75*0.05
After-tax savings rate of return =0.0375*100
After-tax savings rate of return =3.75%
Therefore the After-tax savings rate of return would be 3.75 percent
A savings account earns 5 percent. If the saver is in a 25 percent tax bracket, the after-tax savings rate of return would be ____ percent
Lycan, Inc., has 7.9 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 9.9 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price
Answer:
$912.68
Explanation:
Particulars Time PVF at 9.9% Amount Present Value
Cash Flows (Interest) 1.00 0.9099 79.00 71.88
Cash Flows (Interest) 2.00 0.8280 79.00 65.41
Cash Flows (Interest) 3.00 0.7534 79.00 59.52
Cash Flows (Interest) 4.00 0.6855 79.00 54.15
Cash Flows (Interest) 5.00 0.6238 79.00 49.28
Cash Flows (Interest) 6.00 0.5676 79.00 44.84
Cash flows (Maturity) 6.00 0.5676 1,000.00 567.60
Intrinsic Value of Bond or Current Bond Price $912.68
Thus, the Current bond price is $912.68
What is a country that wants to increase its per capita GDP trying to achieve?
A. It wants to prevent its currency from gaining or losing value too
quickly.
B. It wants to increase its economic productivity per person in the
country.
C. It wants to reduce the number of people who can't find a job.
D. It wants to lower the value of goods and services it produces.
Answer: B
Explanation: taking the test rn and I got it right
It wants to increase its economic productivity per person in the is country that wants to increase its per capita GDP trying to achieve. Thus, option B is correct.
What is per capita GDP?By dividing a country's GDP by its community, the GDP is a budgetary method of quantifying the productive capacity per human in a country and people. Sector's contribution by all growers who are residents of the economy combined with any brand taxes that are not factored into yield valuation makes up GDP per capita.
The goal of the nation seeking to enhance its per population GDP is to enhance its economic production per person. Average earnings rise as a result of sustained expansion, which is also closely related to decreasing poverty.
A fundamental estimate of the production value of every person is provided by GDP per capita, it serves as an additional measure of per capita. GDP as well as GDP per capita expansion are seen as wide
Therefore, option B is the correct option.
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Howard Company has 10,000 shares of $200 par value, 6% cumulative preferred stock and 150,000 shares of $50 par value common stock. Howard declares and pays cash dividends amounting to $800,000. If no arrearage on the preferred stock exists, how much in total dividends is paid to each class of stock
Answer:
Dividend - Preferred stock = $120000
Dividend - Common stock = $680000
Explanation:
The amount of dividend that is paid to each class of stock can be calculated by first calculating the dividend payable to preferred stock. The amount of dividend on preferred stock is fixed and is paid before the common stockholders are paid. Thus, dividend on preferred stock per year is,
Dividend - Preferred stock = 10000 * 200 * 0.06 = $120000
Thus, out of $800000 cash dividends, $120000 will be paid on the cumulative preferred stock.
Remaining dividend = 800000 - 120000 = $680000
The remaining $680000 will be paid to the common stockholders.
Which of the statements are true of an entrepreneur? Check all that apply.
A) An entrepreneur faces huge risks if things do not go well for the business.
B) An entrepreneur is usually an inventor.
C) An entrepreneur operates a business.
D) Being an entrepreneur is not a risky endeavor.
E) An entrepreneur does not have a say over what goods and services his or her company produces.
Answer:
A and C are true. Happu thanksgiving
An entrepreneur is a person who operates a business and faces huge risks if things do not go well for the business.
What is an entrepreneur?An individual who bears the risk of starting a new business is known as an entrepreneur.
An entrepreneur is the one who is going to initiate, organize, perceive and manage an enterprise. He bears all the risks and uncertainties associated with the setting up, running, and outcome of the enterprise.
Therefore, A and C are the correct options.
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Ming Company had net income of exist767, 200 based on variable costing. Beginning and ending inventories were 7, 300 units and 4, 700 units, respectively. Assume the fixed overhead per unit was exist2.50 for both the beginning and ending inventory. What is net income under absorption costing? When the number of units sold exceeds the number of units produced, net income under absorption costing will be: Lower than income using variable costing The difference in income is equal to: The number of units subtracted from inventory multiplied by the fixed overhead per unit Net Income under variable costing Fixed overhead per unit Net income under absorption costing
Answer:
Part 1
Absorption Costing Net Income = $760,700
Part 2
Income under absorption costing will be: Lower than income using variable costing
Explanation:
The difference in net income under absorption costing and variable costing is because of fixed costs that are in closing inventory.
If we are given net income under one method we can find the net income under the other method by performing a reconciliation as follows :
Reconciliation of Variable Costing Income to Absorption Costing Income
Variable Costing Net Income $767, 200
Add fixed cost in closing stock (4, 700 × $2.50) $11,750
Less fixed costs in opening stock (7, 300 × $2.50) ($18,250)
Absorption Costing Net Income $760,700
What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?
Owners and managers control some of the factors that make a firm successful such as:______.
A, The goverment's ability to promote economic growth
B. Sheer chance
C. The role foreign oil plays in determining transportation costs
D. The firm's ability to produce at an average cost above the minimum long - run average cost
E. The firm's ability to differentiate its product
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.
EXERCISE 5–2 Prepare a Cost-Volume-Profit (CVP) Graph LO5–2 Karlik Enterprises distributes a single product whose selling price is $24 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $24,000. Required: 1. Prepare a cost-volume-profit graph for the company up to a sales level of 8,000 units. 2. Estimate the company’s break-even point in unit sales using your cost-volume-profit graph.
Answer:
Cost volume profit analysis (CVP) refers basically to determining the break-even point of a company and how we can use that information to predict how different changes might affect it. When you are performing a CVP analysis you have to decide which variables will be constant, i.e. ceteris paribus, and which will be altered to predict the effect on the company’s operating income.
1)
sales level total revenue variable costs fixed costs total costs
2,000 48,000 36,000 24,000 60,000
4,000 96,000 72,000 24,000 96,000
6,000 144,000 108,000 24,000 132,000
8,000 192,000 144,000 24,000 168,000
2) break even point = 4,000 units
sales level total revenue variable costs fixed costs total costs
2,000 48,000 36,000 24,000 60,000
4,000 96,000 72,000 24,000 96,000
6,000 144,000 108,000 24,000 132,000
8,000 192,000 144,000 24,000 168,000
2) thus, reach point = 4,000 units
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Hannah Spiritway works for a cable TV company in a large city. She handles telephone calls from customers who are having problems with their cable service. Hannah is a(n):_____.a. a sales promotion specialist.
b. a customer service rep.
c. an order taker.
d. an order getter.
The main trait of a single-period model is that: ___________
a. it has the largest EOQ sizes.
b. supply is limited. the cost of a shortage cannot be determined accurately.
c. the order quantity should usually equal the expected value of demand.
d. inventory has limited value after a certain period of time.
Answer:
d. inventory has limited value after a certain period of time.
Explanation:
Under the single period model, the companies ordered bulk quantities at a one time when there is a seasoned demand also the taste and the preference of the consumers varies from time to time
Therefore in the given option, the option d is correct as it remains with the limited value after the specific period of time
So, the other options are wrong
True or false? Managers generally face lesser uncertainty when many contextual forces impact an
industry and when these same forces are constantly changing.
Answer:
False
Explanation:
Managers encounter more "uncertainty when many contextual forces impact their industry and when these same forces are constantly changing" or evolving, from one period to the next. The uncertainties should be embraced as a part of doing business. The uncertainties underpin the risks that every business entity faces and the associated returns (losses) or rewards are based on the risk management efforts of managers.
An indirect exchange rate quotation is one in which the exchange rate is quoted: for the immediate delivery of currencies exchanged. in terms of how many units of the foreign currency can be converted into one unit of domestic currency. for the future delivery of currencies exchanged. in terms of how many units of the domestic currency can be converted into one unit of foreign currency.
Answer:
in terms of how many units of the foreign currency can be converted into one unit of domestic currency.
Explanation:
Direct quotation of currency exchange refers to quoting how many units of domestic currency are needed to purchase one unit of a foreign currency, e.g. you need $0.77 US to purchase 1 Canadian dollar.
Indirect quotation of currency exchange refers to quoting how many units of a foreign currency are needed to purchase one unit of your domestic currency, e.g. you need 1.30 Canadian dollars to purchase $1 US.
______ is the process of evaluating a firm's credit policy to determine whether a shift in its customers' payment patterns has occurred.
On January 15, 2021, James Company received a two-month, 4%, $7,000 note from Peter Long for the settlement of his open account. The entry by Jaymes Company on January 15, 2016 would include a:________
a. debit of $7,047 to Notes Receivable.
b. debit of $7,000 to Notes Receivable.
c. credit of $7.047 to Accounts Receivable.
d. credit of $7,000 to Notes Receivable,
Answer: b. debit of $7,000 to Notes Receivable.
Explanation:
James Company received a Note Receivable of $7,000 from Peter Long to settle the Receivable account so Notes Receivable will increase. As it is an asset, it will be debited when it increases so Note Receivable has to be debited $7,000.
Accounts Receivable will be credited with the same $7,000 indicate that the Receivables account has been settled by the Note.
The entry would include debit of $7,000 to Notes Receivable.
Here, James Company received a Note Receivable of $7,000 from Peter Long to settle the Receivable account, hence, the Notes Receivable will increase.
Since the Notes Receivable is an asset, it will be debited when it increases, thus, Note Receivable has to be debited with the amount of $7,000.
However, the Accounts Receivable will be credited with $7,000 to show that the Receivables account has been settled by the Note.
Hence, the Option B is correct because the entry by Jaymes Company on January 15, 2016 would include debit of $7,000 to Notes Receivable.
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Select the correct answer.
Which factor is critical to the successful implementation of IS?
If a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product from $50 to $45, her marginal revenue is: multiple choice $-55.
Answer:
-$55
Explanation:
The computation of the marginal revenue is shown below:
As we know that
Total revenue = Price × Quantity
For 400 units, the total revenue is
= 400 × $50
= $20,000
And for 420, the total revenue is
= 420 × $45
= $18,900
Now the marginal revenue is
= ($18,900 - $20,000) ÷ (420 units - 400 units)
= -$55
Identify an activity that may not affect independence of mind but is likely to affect independence in appearance.
a. Payment of high audit fees dependent upon profitable financials.
b. Engagement of the CPA and payment of audit fees by a third party.
c. Dependence upon a client for a large percentage of audit fees.
d. Ownership of an immaterial indirect financial interest in the audited client.
e. Performance of valuation services and actuarial services for the same company.
Answer:
c. Dependence upon a client for a large percentage of audit fees.
Explanation:
The independence in appearance means that the auditor integrity, objectivity is compromised and the people have the faith in the auditor and it is based on the other interpretation
While on the other hand, the independent of mind means the auditor is fully independent and unbiased for taking the decisions
Therefore according to the given options, the option c is correct as the appearance of independent is impacted due to the more percentage in the audit fees
If Laura is aggressive and someone bumps into her, what is most likely her
response?
Answer:
That she would be mad , hit them,
A stock is currently selling for $50. The stock price could go up by 10 percent or fall by 5 percent each month. The monthly risk-free interest rate is 1 percent. Calculate the price of an American put option on the stock with an exercise price of $55 and a maturity of two months. (Use the two-stage binomial method.)
a. $5.10
b. $3.96
c. $4.78
d. $1.19
Answer:
$5.10
Explanation:
where interest rate = monthly rate*10 = 1*12 = 12%
Time period t in years = 1/no. of months in a year = 1/12 = 0.8333
50 = [55(x) + 47.5(1-x)]/(1.01) ; x = 0.4; 1-x = 0.6Payoffs at the end of month-2: $10.5; $2.25 ; and zero; [Exercise price = $50]End of one month values: [(10.5)(0.4) + 2.25(0.6)]/1.01 = 5.495 and [2.25(0.4) + 0]/1.01 = 0.891Price of the call option = [5.495(0.4) + (0.891)(0.6)]/1.01 = 2.71