The owner must decide whether to subsidize the facility, sell out, or make a significant renovation after reviewing the cash flow analysis.
Describe cash flow.The net total of money coming into and going from a business at a particular period is referred to as cash flow. A firm constantly receives and expends cash. For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
Does cash flow imply earnings?The money coming into and going out of your company is referred to as cash flow. Income and expenses are involved. How much money you're earning and spending. However, profit is the amount of money left over after business expenses are subtracted from total revenue.
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Use the information for the question(s) below.Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one-hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one-hour photo sales will be to new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one-hour service.The level of incremental sales associated with introducing the new one-hour photo service is closest to:
Answer:
$90,000
Explanation:
Calculation for what the level of incremental sales associated with introducing the new one-hour photo service is closest to:
Using the formula
Incremental Sales Asscoiated with new service = Firm Expected Sales - (Annual Sales * Percentage of Sales)
Let plug in the formula
Incremental Sales Asscoiated with new service= $150,000 - ($100,000 × 60%)
Incremental Sales Asscoiated with new service= $150,000 - $60,000
Incremental Sales Asscoiated with new service= $90,000
Therefore the level of incremental sales associated with introducing the new one-hour photo service is closest to:$90,000
How does earning an A in an honors course benefit your GPA?
a
Honors course grades are weighted and keep your GPA from decreasing.
b
Honors course grades are weighted, increasing the points factored into your GPA.
c
Honors course grades are unweighted and keep your GPA from decreasing.
d
Honors course grades are unweighted, increasing the points factored into your GPA.
Answer:
i think its A
Explanation:
Drag the tiles to the correct boxes to complete the pairs.
Match the steps for conducting an informational interview with the task involved in each step or its purpose.
Research your chosen career field.
Prepare for the interview.
Follow up with your interviewer.
Identify someone to interview.
Conduct the informational interview.
Learn more about a company that interests you.
The correct matching of the steps for conducting an informational interview with the task involved in each step or its purpose is given
The MatchingResearch your chosen career field - Gain a deeper understanding of the industry or job, helping you ask informed questions during the interview and providing context for responses.
Identify someone to interview - Find a professional with relevant experience in your desired field or company, who can share insights and knowledge.
Prepare for the interview - Create a list of thoughtful questions based on your research and interests, and manage logistical tasks like scheduling and confirming meeting details.
Conduct the informational interview - Engage in a conversation, asking prepared questions and actively listening to insights and experiences.
Follow up with your interviewer - Send a thank-you note expressing gratitude and maintaining a positive connection for future networking opportunities.
Learn more about a company that interests you - Use insights from the informational interview to expand your understanding of a specific organization's culture, values, and opportunities, informing future career decisions and tailored job applications.
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Identify the South African barriers to entry market share
Barriers to entry in South Africa include:
High startup costsLimited access to financingWhat are some barriers to entry ?Some industries in South Africa entail expensive start-up costs like procurement of equipment, infrastructure development or acquiring licenses which can be limiting for new entrants.
Several startups may encounter challenges in obtaining financial aid due to limited capital availability or stringent borrowing rules as well as exorbitant interest charges. The regulatory framework within the country is multifaceted and applies robust controls across a multitude of sectors that may be restrictive for businesses trying to establish themselves.
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How does the product market and the resource market work in this industry?
Households function as consumers in the product market, acquiring the items and services that companies are ready to offer for sale. In the resource market, the roles are reversed: Businesses pay households for their resources, including land, labour, capital, and entrepreneurialism.
As opposed to product markets, where families buy from corporations, resource markets are where businesses buy the labour and raw materials needed to manufacture things. Resources come in a variety of forms, and resource markets cover them all. In addition to capital and natural resources, they also include labour, business, and land.
A buyer (demand) in both the goods and resource markets in a three-sector circular flow diagram is the government. In exchange for tax contributions, the government offers transfer payments to individuals, businesses, and households as well as public goods and services.
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Your friend John works producing dress shirts and dress pants. Currently John can work a maximum of 8 hours per day. With the equipment he has, and the current level of expertise, he can finish either 2 shirts or 8 pairs of pants in an hour. This is true when he is performing at full capacity. Meaning doing the best possible work.
1. What is the maximum number of shirts he can make in a day? (10 points)
2. What is the maximum number of pants he can make in a day? (10 points)
3. What is the opportunity cost of making one pair pants (in terms of the amount of shirts he won't be able to make)? As an example, when you give up $20 dollars in exchange for 40 pencils, you can say that the “cost” per pencil was $0.50, because $20/40 = $0.50. (15 points)
4. What is the opportunity cost of making one shirt (in terms of the amount of pants he won't be able to make)? (15 points)
5. John's friend Anne, can make 2 shirts or 10 pairs of pants in an hour. Who has a lower opportunity cost of making shirts? In other words, who has a comparative advantage in the production of shirts? Explain your rationale (15 points)
6. Imagine now, that John and Anne are the only shirt and pants producers in their small town, how would you suggest that they spend their time at work to achieve the highest production of shirts and pants for the town? Explain your rationale. (15 points)
7. Imagine now, that John completes a training that doubles his capacity to make both shirts and pants per hour. a) What is the maximum number of shirts he can make in a day? b) What is the maximum number of pants he can make in a day? (15 points)
8. In 250 words, explain the relationship between comparative advantage and specialization. Support your answer with an example. (5 points)
To answer the questions provided, we must understand the concept of opportunity cost and comparative advantage and take the data into consideration.
John can make 16 shirts in day, that is, 2 shirts per hour worked, working 8 hours.Working 8 hours a day, John can make 64 pairs of pants, that is, 8 pairs per hour worked.The opportunity cost would be 0.25.The opportunity cost would be 4.Both John and Anne can make the same amount of shirts in an hour, so no one has a comparative advantage for the production of shirts.It would be best for them if Anne focused on making pants, since she can make more pants than John per hour. John would then focus on making shirts.a) John will make 32 shirts in a day, working 8 hours per day. b) John will make 128 pants a day, working 8 hours per day.Comparative advantage refers to being able to produce something at a lower opportunity cost than your competitors. Specialization, that is, the production of one specific product, can increase comparative advantage.What is opportunity cost?In economics, opportunity cost is what we do not gain, that is, what we miss from making a choice over another. If John chooses to use an hour to make 2 shirts, the opportunity cost refers to the pants that he will not make in that same hour.
Comparative advantage is related to who has a lower opportunity cost. Notice how Anne can make more pants than John in an hour. If she chooses to make shirts, she will be losing more than John. Thus, it is better for her to focus on making pants. John, on the other hand, should specialize in shirts, since his opportunity cost is lower.
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Accounting and subsequently violates the covenant not to complete, what equitable remedy is available to big three accounting inc
Injunction equitable remedy is available to Big Three Accounting, Inc. Thus option D is correct.
What is Accounting?Accounting is the act of documenting a business's monetary operations. All transactions are compiled, examined, and reported to factor in making, regulatory bodies, and tax collection organizations as part of the accounting cycle.
A lawsuit for an injunction is brought to court when someone infringes any contract clause relating to not competing. An equitable relief is where a court directs a party to carry out a certain act or desist from doing so. Therefore, option D is the correct option.
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After passing his CPA exam, Mohammad is hired by Big Three Accounting, Inc. Part of his contract includes a covenant not to compete. If, after working for three years, Mohammad retires from Big Three Accounting and subsequently violates the covenant not to compete, what equitable remedy is available to Big Three Accounting, Inc.?
a. Rescission O b. Specific Performance O c. Reformation O d. Injunction
what are the basic parts of business letter?
what kind of kitkat are low demand?
Kitkat is one of the most selling chocolate brand. The kitkat products which are of low demands are mostly Wasabi kitkat,, whole grain biscuits, cough drop kit kat etc.
What is product demand?The demand for a product changes with taste and needs of consumers. Price elasticity, or consumer behaviour in response to price changes, is the category that describes how consumer demand responds to changes in pricing.
The individual buyer exhibited rational conduct; he sought to maximise the number of advantages, i.e., the ratio of the cost of the meal to the cost of the purchase.
Kitkat is a popular brand and many products such as biscuits, chips, cough drops and chocolate bars are delivered by them. Among them, the products that are commonly of low demand are Wasabi kitkat, cough drop kit kat and whole grain biscuits.
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Determine the missing amount:
Assets=Liabilities+owners Equity x 272000 573000
Based on the given amounts of assets and liabilities, the missing amount of Owner's equity is $301,000
How to find the equity?The Owners equity is one of the parts of the Accounting equation which is:
Assets = Liabilities + Owners Equity
The Assets in this instance is $573,000 and the Liabilities are $272,000.
The Owner's equity is the missing amount and it can be found as:
573,000 = 272,000 + Owners Equity
Owners Equity = 573,000 - 272,000
Owners Equity = $301,000
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what is an element of management activity in business?
"Is college the best choice?" Using economic reasoning skills you have learned in this course, you will write an extended paragraph making a claim to the prompt, cite two pieces of evidence directly from the sources, and explain your reasoning of how this evidence connects to the claim.
Answer:
College education is undoubtedly the best choice for individuals seeking higher-paying jobs and better career prospects. According to the Bureau of Labor Statistics, individuals with a bachelor's degree earn an average of $1,248 per week, while those with only a high school diploma earn an average of $746 per week. This means that college graduates earn almost twice as much as those without a college degree. Additionally, a report by Georgetown University's Center on Education and the Workforce found that by 2020, 65% of all jobs in the United States will require some form of postsecondary education. This means that individuals without a college degree will have limited job opportunities and will be at a disadvantage in the job market.
The evidence from the Bureau of Labor Statistics and Georgetown University's Center on Education and the Workforce supports the claim that college education is the best choice. The higher earnings of college graduates compared to those without a college degree indicate that investing in a college education can lead to better financial outcomes. Furthermore, the report by Georgetown University's Center on Education and the Workforce highlights the increasing demand for postsecondary education in the job market. This means that individuals without a college degree will have limited job opportunities and will be at a disadvantage in the job market. Therefore, it is clear that college education is the best choice for individuals seeking higher-paying jobs and better career prospects.
A company is selling used office equipment for $12,000. They purchased it 2 years ago for $50,000. It was expected to have a useful life of 5 years. They use straight line depreciation. What is the gain or loss on the sale
Answer:
$18,000 loss on sale
Explanation:
It is important to notice that the company uses the straight line depreciation method on the equipment.
Annual Depreciation charge = (Cost - Salvage Value) ÷ Number years of useful life
Therefore
Annual Depreciation charge = ( $50,000 - $ 0) ÷ 5
= $10,000
Depreciation for the period in use will be :
Year 1 = $10,000
Year 2 = $10,000
Accumulated depreciation = $20,000
Now given the cost and proceeds as follows :
Cost = $50,000
Proceeds = $12,000
Profit on Sale = Proceeds - ( Cost - Accumulated Depreciation)
= $12,000 - ( $50,000 - $20,000)
= ($18,000)
The Company will realize a loss on sale of $18,000
Describe the internal control features that were missing that enabled the employee to commit this fraud.
Describe what actions the employer should take to prevent this kind of fraud from happening in the future.
High-Flying Auto Dealer Employee Steals $10M For Luxuries
The scheming employee was able to electronically transfer funds from the company's online account to her own personal account and use the funds to buy four homes, 10 vehicles, Louis
Vuitton luggage, jewelry, $30,000 in pre-paid travel funds and stow away more than $20,000 in savings, court records show. Authorities said she covered up the thefts with a series of fake transactions as well as listing phantom cars in inventory so they could be recorded as assets.
Answer:
yes my answer is yes
Explanation:
I dont know
How might a business be in violation of a truth-in-advertising law?
A. By adding surcharges in fine print
B. By claiming its product is healthy without having any scientific
evidence
C. By hiring actors to portray consumers in its commercials
D. By claiming that you'll love its product
Answer:
B
Explanation:
Apex
A business be in violation of a truth-in-advertising law is By claiming its product is healthy without having any scientific evidence.
What is truth-in-advertising?Wherever consumers see or hear an advertisement, whether on the Internet, radio, television, or elsewhere, federal law requires it to be accurate, not misleading, and backed up by scientific data where necessary.
Thus, option B is correct.
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Which company would add to the GDP of the United States?
A. An Indian company produces electronic devices at a factory in California.
B. A Japanese company manufactures an automobile in Tokyo that is sold exclusively in the United States.
C. An American company produces clothing at a factory in Haiti.
In Tokyo, a Japanese business creates a car that is only offered in the United States. Thus, option B is correct.
What is added GDP of the United States?With a total (two-way) goods trade of $183.6 billion in 2020, Japan will be our fourth-largest trading partner.
There were $64.1 billion in goods exported and $119.5 billion in goods imported. In 2020, the United States' goods trade deficit with Japan was $55.4 billion.
These include commercial aircraft, chemicals, nonferrous metals, plastics, medical and scientific supplies, machinery, insurance, pharmaceuticals, films and music, and agricultural products.
Therefore, for many American goods and services, Japan is a significant market.
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You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons.
Rate: Maturity Month/Year: Bid: Asked: Change: Ask Yield:
?? May 36 103.4599 103.5327 +.3287 5.979
6.202 May 39 104.4939 104.6396 +.428 ?? ??
6.158 May 45 ?? ?? +.5392 4.01
In the above table, find the Treasury bond that matures in May 2039. What is your yield to maturity if you buy this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
After calculations, we can conclude that the coupon rate in the given situation is 6.248.
What is the coupon rate?The annual income an investor might anticipate while owning a specific bond is known as the coupon rate.
The calculation is done by dividing the total of the annual coupon payments by the par value, and it is established at the time the bond is issued.
A bond's yield to maturity and coupon rate are equal at the time of purchase.
So, here in the given situation:
= PMT (rate, nper, pv, [fv], [type])
Tenure of bond = 2019 -2039
Tenure of bond = 20 years
Current price of bond = $2,000x96.865%
Current price of bond = 1937.3
Par value of bond = $2,000
Current price of bond = $1937.3
Yield of Maturity = 6.53%
Tenure of bond = 20 Years
=PMT({6.53%/4} ,{20*4} ,-1937.3, 2000)
PMT= 31.24
Coupon rate = 31.24 x (4/2000) x 100
Coupon rate = 6.248
Therefore, after calculations, we can conclude that the coupon rate in the given situation is 6.248.
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Correct question:
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons.
Company Coupon Maturity LP LY EST
Xenon, Inc. (XIC)6.700 Jan 15, 2036 94.313 ?? 57,375
Kenny Corp. (KCC)7.250 Jan 15, 2033 ?? 6.28 48,954
Williams Co. (WICO)?? Jan 15, 2039 96.865 6.53 43,815
What is the coupon rate for the Williams Co. bond?
When you listen, you are the___________ of the message.
Answer:
reciever
Explanation:
when you listen you are the receiver and there after you should give the relevant feed back
A student paraphrases the ideas of an expert criminologist in her essay on crime and deviance. Should she:
Based on the essay writing technique and standards, when a student paraphrases the ideas of an expert criminologist in her essay on crime and deviance. she should cite the source and reference it.
Paraphrasing ideas in the essayThe act of paraphrasing different ideas when writing an essay as a student is a very common thing. However, when paraphrasing, it is always expected that the writer cites the source and makes a reference to the original person who jas the idea to avoid plagiarizing.
Three methods of paraphrasing are the following:Acknowledging paraphrasingOrganizing paraphrasingAbstracting paraphrasingAlso, to make a proper paraphrasing, one needs to do the following:Ensure to use synonymsAlways use the different word formMake sure to change from active to passive.Always try and change the word order.Make use of a combination of techniques.Hence, in this case, it is concluded that when a student paraphrases the ideas of an expert criminologist in her essay on crime and deviance, she should cite the source and reference it.
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What is the difference between final goods and intermediate goods?
A) Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use.
B) Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods.
Final goods and intermediate goods are terms used in economics to distinguish between different types of goods in the production process. Here's a breakdown of the difference between the two:
1. Final Goods:
Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use. These goods are ready for consumption and do not undergo further processing or transformation before reaching the final consumer. Examples of final goods include food products, clothing, electronics, furniture, and vehicles. Final goods are the end result of the production process and are intended for final consumption or use.
2. Intermediate Goods:
Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods. They are not intended for final consumption but are instead used as raw materials, components, or capital goods in the production process. Intermediate goods undergo further processing or transformation before being included in the final goods. Examples of intermediate goods include raw materials like steel or wood, components like circuit boards or engines, and machinery or equipment used in production.
The key distinction between final goods and intermediate goods lies in their purpose and stage in the production process. Final goods are produced for the ultimate satisfaction of consumers' needs and are ready for consumption, while intermediate goods are used in the production of other goods and undergo further processing.
It's important to note that when calculating a country's Gross Domestic Product (GDP), only the value of final goods is considered. Intermediate goods are excluded to avoid double-counting, as their value is already included in the final goods they contribute to. By focusing on final goods, GDP provides a measure of the value of goods and services produced for final consumption in an economy.
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speedy motors LDT
identify the micro and the macro challenges of SM from the scenario
Based on the fact that Speedy Motors is in the automotive industry, some micro and macro challenges include:
Macro challenges - Government regulation and Economic growth. Micro challenges - Lack of liquidity and Retaining good labor. What are micro challenges?Micro challenges are those that affect a company alone and not the economy.
Companies in the automobile industry face the micro challenge of having poor liquidity because cars might not be sold fast enough. They also have issues with retaining good labor which can help them remain competitive.
What are macro challenges?These affect the economy and industry at large and so affect the company as well.
Some challenges here include government regulation that is aimed at reducing pollution. This will force an auto company to invest in more expensive equipment to comply.
If economic growth is poor, a car company will experience less sales as well.
In conclusion, there are several challenges affecting Speedy Motors.
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Thinking Critically and Solving Problems
The number of accidents at a manufacturing facility has been increasing every year. Most of the accidents are
because employees do not follow standard procedures. The company's leaders want to apply systems thinking to
find solutions.
Which is the BEST first step when applying systems thinking and which is the WORST first step?
Posttest
1. Identify which teams should be evaluated to determine their role in causing the accidents.
2. Identify and evaluate all the potential consequences for each possible solution.
3. Identify patterns of employee behavior and examine what influences the patterns.
4. Identify solutions to solve smaller problems while studying the larger problem.
Which is the BEST way to handle the situation?
Option 1
Option 2
Option 3
Option 4
Which is the WORST way to handle the situation?
Option 1
Option 2
Option 3
Option 4
Question 23 of 25
4
Submit
From the given options, Best option for situation handling is option 3 " Identify patterns of employee behavior and examine what influences the patterns." and worst is option 1 "Identify which teams should be evaluated to determine their role in causing the accidents."
What is Situation handling?Situation handling is a concept for alerting particular user groups about business issues. By compiling all pertinent data and putting forward options, it assists the user in identifying, comprehending, and resolving the dilemma.
Situation Handling is a framework that automatically recognizes, monitors, and alerts users of specific concerns in your company that need their attention. You can choose from a number of methods, like as notifications, list views, or specific object pages, to inform your users about such scenarios in your organization. Additionally, you may offer your users information about these circumstances so they can make informed decisions and suggested solutions so the issues are resolved as quickly and effectively as feasible.
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PLEASE HELP WILL MARK BRAINLIST
Answer the following under the premise that you just got elected as President of the United States. (Remember the President enacts policy [changes] to correct domestic problems)
1.) Explain what your policy would be to correct the problems with immigration in the U.S. (it is estimated there are 12 million people that have entered the country without legal authority from the U.S. Government and without proper documentation).
2.) Explain what impact the 12 million undocumented immigrants might have on wages in general (based on supply and demand of labor) in the U.S and what policy would you recommend countering any wage losses for American citizens?
3.) Explain your policy for economic growth. Should the government have a tight rein (control) on business, or should it release constraints on businesses so they can grow and demand more labor (workers).
4.) Explain what the effects would be on wages of middle-class workers if your policies from above would generate economic growth where businesses demand for workers increased.
Please post your numbered responses to the above questions (300 word required minimum totals for all questions).
1. As President, my policy to address immigration problems in the U.S. would be to pursue comprehensive immigration reform that balances the need for strong border security with a fair and efficient pathway to citizenship for undocumented immigrants already in the country.
This reform would include measures such as:
Streamlining the legal immigration system to make it more efficient and responsive to the needs of U.S. businesses and families.Providing a pathway to citizenship for undocumented immigrants that includes background checks, payment of taxes and fines, and a waiting period.Enhancing border security through the use of technology and increased staffing, while also addressing the root causes of migration through foreign aid and diplomacy.2. The impact of the 12 million undocumented immigrants on wages in the U.S. would draw differing views among economists. Some studies suggest that they may have a negative impact on wages for low-skilled workers, while others suggest that they may have a positive impact on wages for some workers in certain industries.
3. My policy for economic growth would focus on investing in infrastructure, education, and research and development to promote long-term growth and create new opportunities for American workers.
More specific measures might include:
Investing in transportation infrastructure to improve the efficiency of the economy and create jobs.Investing in education and workforce development to ensure that workers have the skills and training they need to succeed in a rapidly changing economy.Promoting research and development in key industries such as clean energy, healthcare, and technology to drive innovation and growth.4. If my policies generate economic growth, it is likely that wages for middle-class workers would increase as demand for labor rises and employers compete for workers. However, the magnitude of these effects would depend on a range of factors such as the strength of the overall economy, the specific policies implemented, and the nature of the labor market in different regions and industries.
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What happens when supply and demand intersect?
When the quantity of goods supplied is equal to the quantity of goods demanded, it is known as market (????).
Answer: When the quantity of goods supplied is equal to the quantity of goods demanded, it is known as market equilibrium.
Explanation:
Market equilibrium occurs at the point where the supply and demand curves intersect on a graph representing the market for a particular product or service. At this intersection, the quantity supplied and the quantity demanded are in balance, and there is no inherent pressure for the price or quantity to change.
In the context of market equilibrium, several outcomes can be observed:
1. Price Stability: When supply and demand intersect at equilibrium, it establishes a stable price point for the product or service. This equilibrium price reflects the value that buyers are willing to pay and the price that sellers are willing to accept.
2. Quantity Balance: At market equilibrium, the quantity of goods supplied matches the quantity of goods demanded. This balance ensures that there is neither excess supply nor excess demand in the market.
3. Efficient Allocation of Resources: Market equilibrium indicates that resources are allocated efficiently. The quantity produced matches the quantity desired by consumers, reflecting an optimal allocation of resources based on consumer preferences and production capabilities.
4. Absence of Shortages or Surpluses: When supply and demand are in equilibrium, there are no shortages (insufficient supply to meet demand) or surpluses (excess supply relative to demand) in the market. The equilibrium condition indicates a state of balance where supply precisely matches demand.
It is worth noting that market equilibrium is not a static state but rather a point towards which markets tend to gravitate. Changes in factors such as consumer preferences, input costs, technology, or market competition can shift the supply and demand curves, leading to a new equilibrium point and potentially altering prices and quantities in the market.
Applying and Analyzing Inventory Costing Methods
At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $32. A summary of purchases during the current period follows.
Unit cost is $32
Units Unit Cost Cost
Beginning Inventory 1,000 $32 $32,000
Purchase #1 1,800 34 61,200
Purchase #2 800 38 30,400
Purchase #3 1,200 41 49,200
During the current period, Chen sold 2,800 units.
(a) Assume that Chen uses the first-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance. Use the financial statement effects template to record cost of goods sold for the period.
Ending inventory balance $Answer
Cost of goods sold $Answer
Use negative signs with answers, when appropriate.
Balance Sheet
Transaction Cash Asset +
Noncash
Assets
= Liabilities +
Contributed
Capital
+
Earned
Capital
Record FIFO cost of goods sold Answer Answer Answer Answer Answer
Income Statement
Revenue
-
Expenses
=
Net
Income
Answer Answer Answer
(b) Assume that Chen uses the last-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance.
Ending inventory balance $Answer
Cost of goods sold $Answer
(c) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance.
Ending inventory balance $Answer
Cost of goods sold $Answer
(d) Which of these three inventory costing methods would you choose to:
1. Reflect what is probably the physical flow of goods?
LIFO FIFO Average Cost
2. Minimize income taxes for the period?
LIFO FIFO Average Cost
3. Report the largest amount of income for the period?
LIFO FIFO Average Cost
Answer:
Applying and Analyzing Inventory Costing Methods
Chen
a1. Cost of goods sold 2,800 units = $93,200
a2. Ending Inventory 2,000 units = $79,600
b1. Cost of goods sold 2,800 units = $106,800
b2. Ending Inventory 2,000 units = $66,000
c1. Cost of goods sold 2,800 units = $100,800 (2,800 *$36)
c2. Ending inventory 2,000 units = $72,000 (2,000 * $36)
d1. To reflect the physical flow of goods, I would choose the FIFO method.
d2. To minimize income taxes for the period only, I would choose the LIFO method.
d3. LIFO method would report the largest amount of income for the period.
NB: LIFO is chosen only for the current period. In the subsequent period the gain will reverse.
Explanation:
a) Data and Calculations:
Units Unit Cost Cost Total Cost
Beginning Inventory 1,000 $32 $32,000 $32,000
Purchase #1 1,800 34 61,200 93,200
Purchase #2 800 38 30,400 123,600
Purchase #3 1,200 41 49,200 172,800
Total 4,800 $172,800
Average cost = $172,800/4,800 = $36
Sales during the period = 2,800 units
b) FIFO (First-in, first-out) method:
Computation of:
1. Cost of goods sold
Beginning Inventory 1,000 $32 $32,000
Purchase #1 1,800 34 61,200
Cost of goods sold 2,800 $93,200
2. Ending Inventory
Purchase #2 800 38 30,400
Purchase #3 1,200 41 49,200
Ending Inventory 2,000 $79,600
c) LIFO (Last-in, first-out) method:
Computation of:
1. Cost of goods sold
Purchase #1 800 34 27,200
Purchase #2 800 38 30,400
Purchase #3 1,200 41 49,200
Cost of goods sold 2,800 $106,800
2. Ending Inventory
Beginning Inventory 1,000 $32 $32,000
Purchase #1 1,000 34 34,000
Ending Inventory 2,000 $66,000
d) Average Method:
Units Unit Cost Cost Total Cost Average Cost
Beginning Inventory 1,000 $32 $32,000 $32,000 $32
Purchase #1 1,800 34 61,200 93,200 $33.29
Purchase #2 800 38 30,400 123,600 $34.33
Purchase #3 1,200 41 49,200 172,800 $36
What is the PV of an ordinary annuity with 7 annual payments of $10,000 each if the appropriate annual interest rate is 5%?
Answer:
PV= $57,8563.73
Explanation:
Giving the following information:
Number of periods= 7 years
Annual cash flow= $10,000
Interest rate= 5%
First, we need to calculate future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {10,000*[(1.05^7) - 1]} / 0.05
FV= $81,420.08
Now, the present value:
PV= FV/(1+i)^n
PV= 81,420.08/1.05^7
PV= $57,8563.73
Needs and wants are limited, you are only limited by your mind. If you can imagine it, then your business can provide it.
A: True
B: False
If the loan-to-value were 90% for a $200,000 home, the required down payment would be $20,000.
a. True
b. False
Answer:
In order to calculate a loan to value, you take the appraised value and then take a % to calculate the total loan to value.For example if you appraise a home at 100,000 and your down payment is 10% or 10000 then your loan to value is 90%Hencd by that logic if you add 100000 more to the calculation then you can prove that 20% of 200000 is 20,000 hence the loan to value would be 180,000/200,000 which gives you a 90% valueThe statement is True Please rate positively and give brainlistexplain why maximizing Production does not always maximize profit