Answer:
[ -0.13, -0.15 ] ( D )
Explanation:
Given data :
sample size ( n ) = 50
Independent variable ( p ) = 1
determine the confidence interval for the slope
Df ( degree of freedom ) = n - p - 1 = ( 50 - 1 - 1 ) = 48
b ( estimated slope ) = -0.23
Standard error of slope = 0.04
confidence interval = 95%
For confidence interval of 95% and Df of 48 ; critical value ( t ) = 2.011
∴ Confidence interval
= -0.23 ± ( 2.011 * 0.04)
= -0.23 ± 0.08044
= [ -0.13, -0.15 ]
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent and the average T-bill rate over the period was 3 percent.
a. What was the average real return on Crash-n-Burn's stock?
b. What was the average nominal risk premium on Crash-n-Burn's stock?
Answer:
Crash-n-Burn Computers
a. The average real return on Crash-n-Burn's stock is:
= 8.3%
b. The average nominal risk premium on Crash-n-Burn's stock is:
= 6.8%
Explanation:
a) Data and Calculations:
Average inflation rate = 1.5%
Average T-bill rate = 3%
Returns on stock:
Year 1 = 10%
Year 2 = -10%
Year 3 = 17%
Year 4 = 22%
Year 5 = 10%
Total returns = 49%
Average returns = Total returns/number of years
= 9.8% (49%/5)
Average real returns
= Average returns on the stock minus the inflation rate
= 8.3% (9.8% - 1.5%)
Average nominal risk premium = return on the stock minus the return on the T-bill
= 9.8% - 3%
= 6.8%
Computing and Recording Interest Capitalization Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January 1, $2,520,000; February 1, $2,295,000; and March 31, $3,285,000. Bullock had the following debts outstanding during this quarter. Debt Amount Note payable, 10%, incurred specifically to finance construction $1,440,000 Short-term note payable, 15% 2,250,000 Mortgage note payable, 8% 1,080,000 Answer the following questions, round your answers to the nearest whole number.
a. Compute interest to be capitalized and interest to be expensed for this first quarter.
Amount of interest to be capitalized Answer 0
Amount of interest to expense Answer 0
b. Prepare the entry to record the construction expenditures and interest.
Note: Record the debit accounts in alphabetical order using the first letter of the account name
. Account Name Dr.
Cr.
Answer:
Bullock Company
a. The amount of interest to be capitalized = $405,000.
The amount of interest to expense = $105,975
b. Journal Entry:
January 1,
Debit Construction expenditure $2,520,000
Credit Cash $2,520,000
To record the expenditure incurred on this date.
February 1,
Debit Construction expenditure $2,295,000
Credit Cash $2,295,000
To record the expenditure incurred on this date.
March 31,
Debit Construction expenditure $3,285,000
Credit Cash $3,285,000
To record the expenditure incurred on this date.
March 31
Debit Construction expenditure $405,000
Credit Capitalized interest $405,000
To capitalize the interest for the quarter.
March 31
Debit Interest Expense $105,975
Credit Interest Payable $105,975
To record the interest expense for the quarter.
Explanation:
a) Data and Calculations:
First Quarter Expenditures:
Date Amount Weight Weighted-Average
January 1, $2,520,000 3/3 $2,520,000
February 1, $2,295,000 2/3 1,530,000
March 31, $3,285,000 0/3 0
Accumulated Weighted-Average expenditure = $4,050,000
Capitalized Interest = $4,050,000 * 10% * 1/4 = $405,000
Debts outstanding during the quarter:
Debt Amount Interest Expense
Note payable, 10%, incurred specifically
to finance construction $1,440,000 $0
Short-term note payable, 15% 2,250,000 $84,375
Mortgage note payable, 8% 1,080,000 $21,600
Total interest expense for the quarter $105,975
Do you think you would want a credit card in college? Why or why not ?
Answer:
Yes I would to help build my credit but only if I was in a spot where I knew that I whould be able to keep up and pay it back on time.
Explanation:
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $43,470. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $1,350. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
Answer:
a. Straight-line method.
Year Depreciation expense ($)
1 10,530
2 14,040
3 14,040
4 3,510
b. Units-of-production method.
Year Depreciation expense ($)
1 7,800
2 14,950
3 12,350
4 7,020
c. Double-declining balance method
Year Depreciation expense ($)
1 21,735
2 14,490
3 4,830
4 1,065
Explanation:
(a) the straight-line method
Note: See part a of the attached excel file for the depreciation schedule for Straight-line method.
In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:
Straight line depreciation rate = 1 / Estimated useful life = 1 / 3 = 0.3333, or 33.33%
(b) units-of-output method
Note: See part b of the attached excel file for the depreciation schedule for units-of-production method.
(c) the double-declining-balance method.
Note: See part c of the attached excel file for the depreciation schedule for double-declining-balance method.
In the attached excel file, the depreciation rate used for the Double- declining-balance method is calculated as follows:
Double-declining depreciation rate = Straight line depreciation rate * 2 = (1/3) * 2 = 0.666667, or 66.6667%
Note:
Under this double-declining-balance method, the depreciation expenses for Year 4 is calculated by deducting the residual value of $1,350 from the Year 4 Beginning depreciable amount (i.e. $2,415 - $1,350 = $1,065). The residual value of $1,350 therefore represents the book value at the end of Year 4.
Given the following information for Albright Company, what was the total manufacturing cost variance? Manufacturing Costs Actual Costs Standard Cost at Actual Volume Budgeted Cost Direct materials $ 80,300 $ 76,000 $ 71,250 Direct labor 77,000 72,500 68,400 Factory overhead 44,800 48,000 45,600 Total $202,100 $196,500 $185,250 a.$5,600 unfavorable b.$(5,600) favorable c.$16,850 unfavorable d.$3,200 unfavorable
Answer:
Total manufacturing cost variance = $5,600 unfavorable
Explanation:
The total manufacturing cost variance is the difference between the actual total manufacturing cost incurred and the standard manufacturing cost for the actual output achieved.
The manufacturing cost is the sum of the direct material cost and direct labour cost and factory production overhead.
Actual total Manufacturing cost = 202,100
Standard manufacturing cost=$196,500
Variance = $202,100- $196,500=$5,600 unfavorable
Total manufacturing cost variance = $5,600 unfavorable
Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense $120,000 Purchase of office equipment 200,000 Selling and administrative expenses 126,000 Depreciation expense 18,000 Compute the amount of budgeted cash disbursements for April.
Answer:
$906,000
Explanation:
Cash disbursements for April.
Purchases - 60 % $300,000
Purchases - 40 % $160,000
Wages expense $120,000
Purchase of office equipment $200,000
Selling and administrative expenses $126,000
Total $906,000
therefore,
the amount of budgeted cash disbursements for April is $906,000
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.)
Project A Project B
Initial investment $ (174,325 ) $ (152,960 )
Expected net cash flows in year:
1 41,000 44,000
2 60,000 53,000
3 72,295 68,000
4 87,400 81,000
5 59,000 30,000
For each alternative project compute the net present value.
Project A
Initial Investment $174,325
Chart values are based on:
i =
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
Project B
Initial Investment $152,960
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
For each alternative project compute the profitability index.
Choose Numerator: / Choose Denominator: = Profitability index
/ = Profitability index
Project A
Project B
2. Assume If the company can only select one project, which should it choose?
Project A or Project B
Answer:
Project A
NPV = $91,771.53
PI = 1.53
Project B
NPV = $79,390.69
PI = 1.52
Project A should be chosen because it has the higher NPV
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Project A
Cash flow in year 0 = $ (174,325)
Cash flow in year 1 = 41,000
Cash flow in year 2 = 60,000
Cash flow in year 3 = 72,295
Cash flow in year 4 = 87,400
Cash flow in year 5 = 59,000
I = 6%
NPV = $91,771.53
Project B
Cash flow in year 0 = (152,960 )
Cash flow in year 1 = 44,000
Cash flow in year 2 = 53,000
Cash flow in year 3 = 68,000
Cash flow in year 4 = 81,000
Cash flow in year 5 = 30,000
I = 6%
NPV = $ $79,390.69
profitability index = 1 + (NPV / Initial investment)
Project A = 1 +( $91,771.53 /$174,325) = 1.53
Project B = 1 + ( $79,390.69 / 152,960 = 1.52
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
During the current month, Tomlin Company incurs the following manufacturing costs.
(a) Purchased raw materials of $16,940 on account.
(b) Incurred factory labor of $38,528. Of that amount, $32,281 relates to wages payable and $6,247 relates to payroll taxes payable.
(c) Factory utilities of $3,108 are payable, prepaid factory property taxes of $2,008 have expired, and depreciation on the factory building is $8,322.
Prepare journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit
(a)
(b)
(c)
Answer:
(a) Dr Raw materials inventory $16,940
Cr Accounts payable $16,940
(b) Dr Factory labor $38,528
Cr Factory wages payable $32,281
Cr Employer Payroll Taxes Payable $6,247
(c) Dr Manufacturing overhead $13,438
Cr Prepaid Property Taxes $2,008
Cr Accumulated Depreciation-Buildings $8,322
Cr Utilities Payable $3,108
Explanation:
Preparation of journal entries for each type of manufacturing cost.
(a) Dr Raw materials inventory $16,940
Cr Accounts payable $16,940
(b) Dr Factory labor $38,528
Cr Factory wages payable $32,281
Cr Employer Payroll Taxes Payable $6,247
(c) Dr Manufacturing overhead $13,438
($3,108+$8,322+$2,008)
Cr Prepaid Property Taxes $2,008
Cr Accumulated Depreciation-Buildings $8,322
Cr Utilities Payable $3,108
Which of these investments may be long term? Choose four answers.
savings accounts
mutual funds
bonds
retirement funds
commodities
These long-term investments are the asset size of company balance sheets i.e shown by a company's investments it including stocks, bonds, and real estate these are long-term as they are kept for one than one year.
The long-term investment includes mutual funds, bonds, retirement funds, commodities. These are investments that are made for the long term periods and may be for long-term goals of the individual or the organization.
Thus the options B, C, D, and E are correct.
Learn more about the investments may be of long-term.
brainly.com/question/18641093.
The investments may be long term is bonds and retirement funds.
What is long term investment?A long-term investment is an investment owned by an individual or company for more than three year.
This could be a company or an individual asset such as real estate and bonds that takes a long time to mature because they do not generate income immediately.
Therefore, The investments may be long term is bonds and retirement funds
Learn more on investment here,
https://brainly.com/question/417234
Tara incorporates her sole proprietorship, transferring it to newly formed Black Corporation. The assets transferred have an adjusted basis of $290,000 and a fair market value of $300,000. Also transferred by Tara was $50,000 in liabilities, all related to the business. In return for these transfers, Tara receives all of the stock in Black Corporation.
a. Black Corporation has a basis of $241,000 in the property.
b. Black Corporation has a basis of $240,000 in the property.
c. Tara’s basis in the Black Corporation stock is $241,000.
d. Tara’s basis in the Black Corporation stock is $249,000.
e. None of the above.
Answer:
Black Corporation
e. None of the above.
Explanation:
a) Data and Calculations:
Adjusted basis of assets = $290,000
Fair market value of assets = $300,000
Liabilities transferred = $50,000
Black Corporation's basis = $250,000 ( $300,000 - $50,000)
Tara's basis in the Black Corporation = $240,000
b) According to U.S. Code 351, no gain or loss shall be recognized for Tara if property is transferred to Black Corporation by Tara solely in exchange for stock in Black Corporation, and immediately after the exchange, Tara comes into the control of Black Corporation.
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $26.10 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries.
Required:
Prepare the appropriate adjusting entry for patent amortization in 2013 to reflect the revised estimate.
Answer:
Original Cost = $26.10
Annual Amortization (Old) = $26.10 / 9 years
Annual Amortization (Old) = $2.9 million
Amortization till Date (2017 - 2021) = $2.9*4 = $11.6 million
Unamortized Value = $26.10 million - $11.6 million
Unamortized Value = $14.5 million
Remaining Life = 6 - 4
Remaining Life = 2 Years
New Amortization = Unamortized Value/Remaining Life
New Amortization = $14.5/2
New Amortization = $7.25 million
Journal Entry
Amortization Expense Debit - $7.25 million
Patent Credit - $7.25 million
MedTech Corp. stock was $55.25 per share at the end of last year. Since then, it paid a $0.45 per share dividend. The stock price is currently $62.50. If you owned 500 shares of MedTech, what was your percent return
Answer:
Percentage Return = 0.13936651584 or 13.936651584% rounded off to 13.94%
Explanation:
To calculate the return percentage, we need to take the total return provided by the share in form of both dividends and capital gains. The total yield or return for the holding period can be calculated as follows,
Percentage Return = [Dividend + P1 - P0] / P0
Where,
P1 is price todayP0 is the purchase pricePercentage Return = [0.45 + 62.50 - 55.25] / 55.25
Percentage Return = 0.13936651584 or 13.936651584% rounded off to 13.94%
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants. The firm selling suits faces no competition and has a marginal cost of zero. The optimal commodity bundling strategy is:
Answer:
Charge $150 for a suit
Explanation:
Bundling strategy is the pricing of goods by a business despite different customers having different preferential prices they are willing to pay for the good.
In this scenario Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants.
The two customers are willing to pay $150 for both the jacket and the pants.
So the best decision for the company is to sell a suit made up of the jacket and pants for $150.
This way bother customers will get their preferred price.
Charging $150 for the suit is the optimal commodity bundling strategy in this scenario. Thus, Option (C) is correct.
Consumers of type A are willing to pay $100 for a coat and $50 for pants, totaling $150. By offering a bundled price of $150, the firm ensures that consumers of type A are willing to purchase the suit at their maximum willingness to pay.
Consumers of type B, who are willing to pay $75 for both the coat and pants individually, also find the bundled price of $150 attractive because it allows them to acquire both items at their maximum willingness to pay.
Thus, Option (C) i.e. charging $150 for a suit would maximize the firm's revenue by catering to both types of consumers and capturing their respective willingness to pay.
Learn more about the optimal bundle here:
https://brainly.com/question/23160497
#SPJ6
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B will pay $75 for a coat and $75 for pants. The firm selling suits face no competition and has a marginal cost of zero. The optimal commodity bundling strategy is: Multiple Choice
a)Charge $100 for a suit.
b)Charge $75 for a suit.
c)Charge $150 for a suit.
d)Charge $125 for a suit.
Walmart and Target are the only stores in a remote town that currently stock and sell the PlayStation 5 video game console. Managers at both stores are simultaneously deciding whether to charge a price of $1,000 or $1,500 for each console. If both stores charge $1,000, they earn a profit of $100,000 each. If both stores charge $1,500, they earn a profit of $200,000 each. If one store charges $1,000 and the other store charges $1,500, the store that charges $1,000 earns a profit of $250,000 and the firm that charges $1,500 earns a profit of $50,000. If Walmart and Target ________, they can both charge $1,500 and earn the highest combined profit available.
Answer:
collude with each other
Explanation:
A monopoly market structure is the structure in which the chances of high profit are there. In the case when the two firms and they work together so that the can extract the maximum profits and after that they shared themselves
As in the given question, in the case when Walmart and Target collude with each other so they would charge $1.500 and earned highest profit available
The same would be considered
Prepare journal entries to record the following transactions involving the short-term securities investments of Krum Co., all of which occurred during year 2017. On August 1, paid $78,000 cash to purchase Houtte's 12% debt securities ($78,000 principal), dated July 30, 2017, and maturing January 30, 2018 (categorized as available-for-sale securities). On October 30, received a check from Houtte for 90 days' interest on the debt securities purchased in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.)
Answer:
Journal entries are shown below.
Explanation:
According to the scenario, computation of the given data are as follows,
Short-term security investment = $78,000
Debt securities rate = 12%
Interest on debt securities for 90days = $78,000 × ( 12% × 90÷360 )
= $2,340
So, Journal entries are as follows,
(a) Aug.1, 2017 Short-term security investment A/c Dr. $78,000
To, Cash A/c $78,000
(Being purchase of debt security is recorded)
(b) Oct.30, 2017 Cash A/c Dr. $2,340
To, Interest A/c $2,340
(Being interest received is recorded)
A subsidiary of Porter Inc., a U.S. company, is located in France. The functional currency of this subsidiary is the dollar. The subsidiary acquired inventory on credit on November 1, 2020, for 200,000 Euro. The inventory was sold on January 17, 2021 for E250,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Euro were as follows:
November 1, 2019 E1=1.32
December 31, 2019 E1=1.30
January 17, 2020 E1= 1.21
October 1, 2018 E1=1.35
December 31, 2018 E1=1.15
The inventory balance for this inventory in Porter's consolidated balance sheet at December 31, 2019 was _________
Answer:
$0
Explanation:
According to the scenario, computation of the given data are as follows,
Date of acquire = November 1,2020
Inventory sold on date = January 17,2021
Payment for inventory = January 31,2021
So, inventory balance for the given inventory in Porter's consolidated balance sheet on December 31,2019 was $0, because there was no transaction done on or before December 31,2019.
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Andy derives utility from two goods, potato chips (Qp) and Cola (Qc). Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given as follows:
Qp MUp Qc MUc
1 12 1 24
2 10 2 22
3 8 3 20
4 6 4 18
5 4 5 16
6 2 6 14
7 -2 7 12
8 4 8 10
Refer to Scenario, what is the total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc)?
Answer:
TU = 40
Explanation:
Total utility is the sum of marginal utility obtained by consuming different units of the good. So at 5 units of potato chips (Qp) and 0 units of Cola drink (Qc) , we can find total utility by adding marginal utility till 5th unit of Qp.
[tex]Total utility = 12 + 10 + 8 + 6 + 4 \\ = 40[/tex]
Thus, total utility from 5 units of potato chips and no cola is 40 utils.
The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
The calculation is as follows:= 12 + 10 + 8 + 6 + 4
= 40 utils
Therefore we can conclude that The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
Learn more: brainly.com/question/16911495
Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 76,000 $ 55,000 $ 82,000 $ 158,000 $ 37,000 $ 408,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment
Answer:
hi hi hi hi hi hi hi hi hi hi hi hi hi hi łíłśElaine needs $1,500 to buy textbooks and other school supplies. Kramer agrees to loan Elaine $1,500, accepting as collateral Elaine’s car. They put their agreement in writing and sign it. Elaine keeps possession of the car. What are the requirements for Kramer to have an enforceable security interest in the car? What must Kramer do to let other creditors know of his security interest in the car?
Answer:
1. For Kramer to have an enforceable security interest in the car, the following requirements must be met:
a. Elaine must possess the property right over the car.
b. Kramer must give value for the security interest.
c. Elaine must have authenticated the security agreement by describing it, or Kramer must be in possession of the collateral.
2. Kramer needs to perfect his security interest in the car by registering it with the appropriate statutory body.
Explanation:
Under UCC Article 9, four steps must be taken by Kramer to perfect the security interest in the collateral car. They include:
a. Creating and filing a financing statement with the statutory body
b. Establishing actual possession of the car
c. Establishing control over the car by not allowing Elaine keep its possession.
d. Attaching a purchase financial security interest on the car.
The demand function is given by
D = 20 - p-p2 where D =
demand and p = price. Find the
elasticity of demand w.r.t. price
when price is 2
Answer:
Q=120−4P
Explanation:
putting P = 20 we get
q= 40
we know that elasticity is quantity demanded / price
20
40
=2
hence the correct option: D
A synchronous decrease in energy prices and an increase in government spending will result in:
A) increases in output and a decrease in the price level in the long run.
B) Increase in short run aggregate supply and in aggregate demand
C) Increase in long run aggregate supply and a rightward shift in aggregate demand
D) A leftward shift in short run aggregated supply
E) Decrease aggregate demand and increase short run aggregate supply
Answer:
B) Increase in short run aggregate supply and in aggregate demand
Explanation:
In the case when there is a rise in the government spending so it would be increases aggregate demand. As AD curve shifts to the rightward, that rise the level of the price and increase in GDP.
On the other hand, if there is a decreasing in energy prices so it decreased the production cost, which rise aggregate supply. As AS curve shifts rightward, due to this it decrease the price level and increase the GDP.
So, The net impact is a definite increase in GDP, but the impact on price level is non-certain. As price level of the short run is non-certain, so we are not able to predict long run impacts.
A synchronous decrease in energy prices and an increase in government spending will result in "increases in output and a decrease in the price level in the long run". The correct option is A.
A synchronous decrease in energy prices reduces production costs for businesses which is leading to an increase in short-run aggregate supply.
At the same time, an increase in government spending stimulates economic activity and boosts aggregate demand. As a result, both short-run aggregate supply and aggregate demand increase.
In the short run, this combination of factors can lead to an expansion in output and potentially a decrease in the price level due to the downward pressure on production costs.
Therefore, the correct option is A.
To know more about government spending here,
https://brainly.com/question/34317373
#SPJ6
The information in the table is from the statement of cash flows for a company at four different points in time (M, N, O, and P). Negative values are presented in parentheses.
For each point in time, state whether the company is most likely in the introductory phase, growth phase, maturity phase, or decline phase.
Point in Time
M N O P
Net cash provided by
operating activities $(60,000) $30,000 $120,000 $(10,000)
Cash provided by
investing activities (100,000) 25,000 30,000 (40,000)
Cash provided by
financing activities 70,000 (90,000) (50,000) 120,000
Net income (38,000) 10,000 100,000 (5,000)
Answer: m-introductory phase
n-decline phase
o-maturity phase
p-growth phase
Explanation:
For M, based on the values given, the company is in the introductory phase. This is the product's cycle first stage where a particular product is being launched into the market.
For N, based on the values given, the company is in the decline phase. This is the phase where there's reduction in sales and profits stop.
For O, based on the values given, the company is in the maturity phase. This is the stage of whereby the growth of the sales has started to reduce.
For P, based on the values given, the company is in the growth phase. This is the stage whereby the product gains acceptance among the consumers, and the public as a whole. There'll also be an increase in the sales and revenue.
Bismith Company reported: Actual fixed overhead Fixed manufacturing overhead spending variance Fixed manufacturing production-volume variance $700,000 $40,000 unfavorable $30,000 unfavorable
To record the write-off of these variances at the end of the accounting period, Bismith would
A. credit Fixed Manufacturing Production-Volume Variance for $30,000
B. debit Fixed Manufacturing Control for $700,000
C. credit Fixed Manufacturing Overhead Allocated for $700,000
D. debit Fixed Manufacturing Overhead Spending Variance for $40,000
Answer:
D. Debit fixed manufacturing overhead spending variance for $40,000
Explanation:
Since fixed manufacturing overhead shows the difference between the actual fixed overhead costs and budgeted fixed overhead cost during a period, Bismith would debit fixed manufacturing overhead spending variance of $40,000 inorder to write off the recording of the variances at the end of the accounting period because the value for fixed manufacturing overhead spending variance has already being gotten hence would be applied at the end of the period.
Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 6% per year. What is the value of Brushy Mountain's stock (in dollars) if the company is expected to pay $4.40/share in dividend at t
The question is incomplete. The complete Question is,
Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year. If D0 = $2 and rs = 17%, what is the estimated value of Brushy Mountain's stock?
Answer:
P0 = $9.1428 rounded off to 9.14
This answer is for the question above. Change the values and use the same formula if the values differ
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year
g is the constant growth rate in dividends
r is the discount rate or required rate of return
P0 = 2 * (1-0.04) / (0.17 + 0.04)
P0 = $9.1428 rounded off to 9.14
Recently, some college alumni started a moving service for students living on campus. They have 3 employees and are debating hiring one more. The hourly wage for an employee is $30 per hour. An average moving job takes 4 hours. The company currently does 3 moving jobs per week, but with one more employee, the company could manage 5 jobs per week. The company charges $100 for a moving job.
Instructions:
Round your answers to the nearest whole number.
a. The new employee's marginal product of labor is ______.
b. The value of that merginal product is ______.
c. The moving service should moving jobs ______- hire another worker.
Answer: a. 2
b. $200
c. Should not
Explanation:
a. The new employee's marginal product of labor is ______.
This will be:
= 5 - 3
= 2 moving jobs
b. The value of that marginal product is ______..
Since the company charges $100 for a moving job, the value of the marginal product will be:
= 2 × $100
= $200
c. The moving service should moving jobs ______- hire another worker
Marginal cost of moving 2 jobs will be:
= $30 × 4 × 2
= $240
Since the marginal cost is more than the marginal product, the company should not hire another worker.
When the Federal Reserve decreases bank's reserves through an open-market operation: ____________
a. deposits increase, currency in circulation increases, and the monetary base remains the same.
b. the monetary base decreases, the money multiplier decreases, and the money supply increases.
c. loans increase, the federal funds rate rises, and the discount rate rises.
d. the monetary base decreases, loans decrease, and the money supply decreases.
Answer:
d. the monetary base decreases, loans decrease, and the money supply decreases.
Explanation:
In the case when the federal reserve reduce the reserve of the bank via open market operation so it would be resulted in decrease in the monetary base, reduction in the loan and the reduction in the money supply. Overall, all three things would be decrease
Therefore as per the given situation, the option d is correct
And the same would be relevant
The Federal Reserve Board in the United States of America's banking system. After a series of financial panics, the desire for central control of the monetary system to ameliorate debt meltdown led to the passing of the Federal Reserve Act on December 23, 1913.
The correct option is d. the monetary base decreases, loans decrease, and the money supply decreases.
When the Federal Reserve decreases a bank's reserve through an open market operation, the monetary base, loan volume, and money supply are all reduced. All three things would be reduced in total.
As a result, option d is right in the current situation.
To know more about the federal reserve system, refer to the link below:
https://brainly.com/question/14266343
A company's income statement reported net income of $80,000 during 2016. The income tax return excluded a revenue item of $6,000 (reported on the income statement) because under the tax laws the $6,000 would not be reported for tax purposes until 2017. Which of the following statements is incorrect assuming a 21% tax rate?
a. Income tax expense on the income statement exceeds the tax liability to the IRS.
b. The $6,000 of revenue creates a deferred tax liability.
c. A $2,100 deferred tax liability is reported as of December 31, 2014.
d. Income tax expense on the income statement is $25,900.
Answer:
d. Income tax expense on the income statement is $25,900.
Explanation:
Calculation to determine the statements that is incorrect assuming a 21% tax rate
INCOME TAX EXPENSE
Using this formula
Income tax expense=Net income*Tax rate
Let plug in the formula
Income tax expense=$80,000*.21
Income tax expense=$16,800
Based on the above calculationThe income tax expense ($80,000 × .21) on the income statement is $16,800
Therefore the statements that is incorrect assuming a 21% tax rate is
INCOME TAX EXPENSE ON THE INCOME STATEMENT is $25,900
The standard cost of direct labor per unit is calculated by:_______
A. multiplying the standard quantity of direct labor by the standard price of direct labor.
B. multiplying the actual quantity of direct labor by the standard price of direct labor.
C. dividing the standard quantity of direct labor by the standard price of direct labor.
D. adding the standard quantity of direct labor to the standard price of direct labor.
Answer:
A. multiplying the standard quantity of direct labor by the standard price of direct labor.
Explanation:
Standard cost of direct labor = Standard quantity*Standard price. Standard cost of direct labor per hour are calculated and compared with the Actual cost of direct labor per hour and multiplied by Actual hours used to calculate direct labor rate variance.
So, option A (multiplying the standard quantity of direct labor by the standard price of direct labor) is correct.
For each of the following scenarios, determine whether the situation described can be attributed to the real-balances effect, the interest-rate effect, or the foreign-purchases effect.
a. As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.
1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect
b. When the price level decreases, restaurants become busier as more people purchase restaurant meals.
1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect
Answer:
A)Interest-rate effect
B)Real-balances effect
Explanation:
✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance
As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.
✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is
When the price level decreases, restaurants become busier as more people purchase restaurant meals.