Answer:
94,000
Explanation:
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
( $644,000 - $28,000) / 28,000 = 22
1 = 22 x 8000 = 176,000
2= 22 x 10,000 = 220,000
3 22 x 7000 = 154,000
Book value = cost of asset - accumulated depreciation
$644,000 - (176,00 + 220,000 + 154,000)
Carly Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $960,000. The estimated residual value of the building is $66,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year
Answer:
Straight line method rate = 1/ Number of years * 100 = 1/25*100 = 4%
Double declining balance depreciation = 2*Straight line method rate*Book value
First Year depreciation = 8%*$960,000
First Year depreciation = $76,800
Second year depreciation = 8% * (Book Value as on 1st year - First Year depreciation)
Second year depreciation = 8%*($960,000-$76,800)
Second year depreciation = 8%*$883,200
Second year depreciation = $70,656
Budgeted sales in Acer Corporation over the next four months are given below: Budgeted sales September October November December $120,000 $140,000 $180,000 $160,000 Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:
Answer:
$161,400
Explanation:
Cash collection calculation
December cash sales ($160,000*30%) = $48,000
Credit sales
December: (160000*70%*50%) = $56,000
November: (180000*70%*30%) = $37,800
October: (140,000*70%*20%) = $19,600
Total cash collections $161,400
A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time
Answer:
9
Explanation:
Given that
There is five stations who have the process time of 5,9,4,9 and 8
We need to find out the bottleneck time
so, as we know that the bottleneck is the duration of the activity who have longer time
So as per the given situation the 9 has the longest duration activity time
So, the same is to be considered
Horizontal analysis evaluates a series of financial statement data over a period of time Group of answer choices that has been arranged from the highest number to the lowest number. that has been arranged from the lowest number to the highest number. to determine which items are in error. to determine the amount and/or percentage increase or decrease that has taken place.
Answer:
C) to determine the amount and/or percentage increase or decrease that has taken place.
Explanation:
Horizontal analysis can be regarded as an approach which is been used in analyzing financial statements through making comparism between specific financial information for a particular accounting period along with the information from other periods. This approach is been used by Analysts to make analysis of historical trends.
It should be noted that Horizontal analysis evaluates a series of financial statement data over a period of time to determine the amount and/or percentage increase or decrease that has taken place.
Consider to communities: Alpha and Omega. Alpha has 10 residents, 5 who earn $60,000 and 5 who earn $20,000. Omega also has 10 residents, 5 who earn $300,000 and 5 who earn $50,000
Part 1. The income inequality ratio in Alpha is and the income inequality ratio in Omega is
Part 2. Alpha and Omega each have 10 residents. The top two residents in Alpha have an average income of $90,000, and the bottom two residents in Alpha have an average income of $30,000. The top two residents in Omega have an average income of $250,000, and the bottom two residents in Omega have an average income of $50,000. How much would the top two residents in Alpha have to earn in order for Alpha to have the same income inequality ratio as Omega? The top two Alpha residents would need to earn $ each Part 3 (1 point) Suppose Alpha's community grew to 15 residents with the following incomes: 2 residents' income $175.000 300,000 260,000 65,000 1 resident's income 1 resident's income 3 residents' income 3 residents' income 2 residents' income 1 resident's income 1 resident's income 1 resident's income 26,000 105,000 650,000 18,000 140,000 The new income inequality ratio in Alpha is:_____. (Round to two decimal places.)
To overcome information overload, supervisors should: ________.a. give employees all the information and let them sift out what is useful and what is not b. not ask for feedback, because employees know what is expected c. be sure that employees are paying attention d. keep repeating instructions
Describe the reason that accrued expenses often require adjusting entries but not in every situation. g
Answer:
Following are the solution to the given question:
Explanation:
Accrued Expenses:
The expenses accumulated were costs pending only at the conclusion of the financial day to be paid. Your financial reports would be made around an accrual basis, meaning the revenue would be booked appropriately without receiving the money. Likewise, the costs incurred during the existing fiscal year will be booked irrespective of if they're not paid.
Usually, know that such a cost is incurred only at end of the fiscal year until we have been paid.
When at the conclusion of a fiscal year we won't receive this bill, therefore the costs will have to be modified directly. In case the payment is not received.
On 1/1, RS Handyman Services took out a ten (10) month loan in the amount of $10,000 cash in exchange for signing a 12 month promissory note. On 6/1, what journal entry should RS Handyman Services record? (Select ALL that apply)
Answer:
Cash (Dr.) $10,000
Short term promissory Notes payable (Cr.) $10,000
Explanation:
Handyman services signed a notes for cash of $10,000, which is payable in 12 month time. This will be considered as short term note payable because the duration of notes maturity is less than a year.
During the year, she spent $2,500 on and began working on a law degree in night school. Her law school expenses were $4,200 for tuition and $450 for books (which are not a requirement for enrollment in the course). Assuming no reimbursement, how much of these expenses can Janet deduct
Complete Question:
Janet is currently employed at an accounting firm. During the year (2021), she spent $2,500 on a CPA review course and began working on a law degree in night school. Her law school expenses were $4,200 for tuition and $450 for books (which are not a requirement for enrollment in the course). Assuming no reimbursement, how much of these expenses can Janet deduct?
Answer:
Janet
Assuming no reimbursement by the accounting firm, Janet can deduct:
= $6,700
Explanation:
a) Data and Calculations:
Amount spent on CPA review course = $2,500
Law school expenses:
Tuition = $4,200
Books = $450
Total expenses by Janet = $7,150
Books not required for enrollment = $450
Qualified deductible expenses = $6,700
b) Therefore, Janet cannot deduct the whole $7,150 expenses that she incurred during the year. But she can deduct up to $6,700. The expense for the books is not qualified because the books are not required for her enrollment or attendance at the law school.
The total units to be accounted for is computed by adding beginning units in process to units transferred out. beginning units in process to units started into production. ending units in process to units started into production. ending units in process to total units accounted for.
Answer:
The Correct Answer is = Option 2:
Total units to be accounted for = “Beginning units in Process + Units started into production”
Explanation:
This is a multiple choice question and we are asked to choose the correct option out of it.
So,
The Correct Answer is = Option 2:
Total units to be accounted for = “Beginning units in Process + Units started into production”
Example:
Beginning units = 50000
Units Started = 90000
Total units to be accounted for = 140000
Units Completed = 44000
Ending Units = 96000
Total units to be accounted for = 140000
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
Answer and Explanation:
The computation is shown below:
a. The amount that should be paid is
= $4,500 - $1,200 - ($4,500 - $1,200) × 2%) + $140
= $4,500 - $1,200 - $66 + $140
= $3,374
And,
b. The amount that should be paid is
= $7,650 - $450 - ($7,650 - $450) × 1%
= $7,650 - $450 - $72
= $7,128
In this way the amount to be paid in full could be determined
Inflation can impose significant costs and adversely distort economic systems. Indicate whether the costs and distorting effects exemplify menu costs, shoe leather costs or unit of account costs. a. discourages people from holding money. b. can reduce the quality of economic decisions. c. can lead to stores listing prices in more stable currencies. d. spending time converting money into something that better holds value. e. makes money a less reliable source of measurement. f. can cause distortion to the tax system. g. causes difficulty in firms and individuals financial planning. h. causes costs associated with changing prices in stores.1. Menu costs.2. Shoe-leather-costs. 3. Unit-of-account costs.
Answer:
1. Menu costs
- Can lead to stores listing prices in more stable currencies.
- Causes costs associated with changing prices in stores.
2. Shoe-leather-costs
- Discourages people from holding money.
- Spending time converting money into something that better holds value.
3. Unit-of-account costs
- Can reduce the quality of economic decisions.
- Makes money a less reliable source of measurement.
- Can cause distortion to the tax system.
- Causes difficulty in firms and individuals financial planning.
Suppose you sell 22 of the May corn futures at the high price of the day. You close your position later when the price is 464.750. Ignoring commission, what is your dollar profit on this transaction
Your dollar profit on this derivative transaction is $247,500.
What is a derivative transaction or contract?Derivative transactions are financial contracts, like futures, options, and forwards that derive their values from the fluctuations of the underlying asset.
Derivative contracts indicate the price at which the financial security is traded and the date within which the transaction should take place.
Examples of derivative transactions include:
Structured debt obligations and depositsSwaps, futures, and optionsCaps, floors, and collarsForwards, and various combinations thereof.Data and Calculations:Number of contracts = 22
Contract size = 5,000
Number of bushels to be delivered = Number of contracts x Contract size
= 110,000 (22 × 5,000)
Profit to be obtained = Number of bushels to be delivered × Settlement price × (High price in May − Closing price)
= 110,000 × ($467 − $464.75)
= 110,000 × $2.25
= $247,500
Thus, your dollar profit on this derivative transaction is $247,500.
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Question Completion:Use the following corn futures quotes:
Contract month Open High Low Settle Change Open Int
March 455.125 457.000 451.750 452.000 -2.750 597,913
May 467.000 468.000 463.000 463.250 -2.750 137,547
July 477.000 477.500 472.500 473.000 -2.000 153,164
Sep 475.000 475.500 471.750 472.250 -2.000 29,258
Number of bushels to be delivered = 210,000
Contract size = 5,000
Number of contracts to be delivered = 42 (210,000/5,000)
Which of the following statements about money that is correct? A. Money is a completely stable store of value. B. Credit cards and debit cards are examples of money. C. Inflation brings a rising value of money. D. Money acts as a unit of account comma which is an agreed measure for stating the prices of goods and services.
Answer:
i would say the answer is D. because all the other answers are not totally right.
The statement about money that is correct is D. Money acts as a unit of account comma which is an agreed measure for stating the prices of goods and services.
What is money?
Money serves as a means of exchange for goods and services in economics term.
It is a way to express the value of goods and services and it serves as agreed measure for stating the prices of goods and services.
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Sheffield Co. had retained earnings of $19900 on the balance sheet but disclosed in the footnotes that $2800 of retained earnings was restricted for building expansion and $800 was restricted for bond repayments. Cash of $2200 had been set aside for the plant expansion. How much of retained earnings is available for dividends?a. $12,000.b. $13,000.c. $15,000.d. $10,000.
Answer:
$16,300
Explanation:
Calculation to determine How much of retained earnings is available for dividends
Using this formula
Retained earnings=Retained earnings - Retained earnings for restricted plant expansion - Restricted for bond repayments
Let plug in the formula
Retained earnings= $19,900 - $2,800 - $800
Retained earnings= $16,300
Therefore the amount of retained earnings that is available for dividends is $16,300
Given the following data:
Selling price per unit $ 2.00
Variable production cost per unit S $ 0.30
Fixed production cost $ 6,000
Sales commission per unit $ 0.20
Fixed selling expenses $ 1,500
How much is the break-even point in dollars?
A) $6,000
B) $4,000
C) $8,000
D) $10,000
E) None of the above
Answer :
See below
Explanation:
Given the above information, break even point in dollars is calculated as seen below
Break even point in dollars = Fixed cost / Contribution margin ratio
Where
Fixed cost = $6,000
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = ($2 - $0.3) / $2
Contribution margin ratio = 85%
Therefore,
Break even point in dollars = $6,000 / 85%
Break even point in dollars = $7,059
a. On October 1, Year 1, YD collected $24,000 for consulting services it agreed to provide during the coming year.
b. Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1.
Required
a. Record the events under an accounting equation.
b. Prepare an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
c. Ignoring all other future events, what is the amount of service revenue that would be recognized in 2014?
Answer:
A. Assets= Liabilities + S/E
Cash= Unearned revenue + Retained earnings
$24,000 = $18,000 + $6,000
Bi) Income statement $6,000
Bii) Balance sheet Total Asset $24,000
Balance sheet Total Liabilities $24,000
Biii) Ending Cash Balance $24,000
C. $18,000
Explanation:
a. To Record the events under an accounting equation.
Event Assets= Liabilities + S/E
Cash= Unearned revenue + Retained earnings
Event $24,000 =$24,000 + $0
Adjustment. = -$6,000 + $6,000
$24,000 = $18,000 + $6,000
($24,000*3/12=$6,000)
($24,000*9/12=$18,000)
b) Preparation of an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
Bi)
Yard Designs INCOME STATEMENT
For the Year Ended December 31, 2013
Revenue $6,000
($24,000*3/12=$6,000)
Expense 0
Net Income $6,000
Therefore YD Income statement is $6,000
Bii)
Yard Designs BALANCE SHEET as of december 31, 2013
ASSETS
Cash $24,000
Total Assets $24,000
LIABILITIES
Unearned Revenue $18,000
($24,000*9/12=$18,000)
Total Liabilities $18,000
STOCKHOLDERS’ EQUITY
Retained Earnings $6,000
($24,000*3/12=$6,000)
Total Stockholders’ Equity $6,000
TOTAL LIAB. AND STOCKHOLDERS’ EQUITY $24,000
($18,000+$6,000)
Therefore YD Balance Sheet As Of December 31, 2013 will be :
Total Assets $24,000
Total Liabilities $24,000
Biii)
Yard Designs STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2013
Cash Flows From Operating Activities:
Cash Receipt from Revenue $24,000
Net Cash Flow from Operating Activities $24,000
Cash Flows From Investing Activities $0
Cash Flows From Financing Activities:
Net Change in Cash $24,000
Plus: Beginning Cash Balance $0
Ending Cash Balance $24,000
Therefore YD statement of Cash flow ending Cash Balance is $24,000
C. Calculation to determine the amount of service revenue that would be recognized in 2014
Based on the information given the Nine months of unearned revenue from 2013 will be recognized in 2014
2014 Recognized service revenue=$24,000*9/12
2014 Recognized service revenue= $18,000
Therefore the amount of service revenue that would be recognized in 2014 is $18,000
Five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home sold for $2.5 million. Which measure of central tendency best represents a typical home price in Oxnard Acres
Answer:
The median or mode
Explanation:
The median, mean, and mode are the most common measures of central tendency.
From the question, five homes were recently sold in Oxnard Acres. Four of the homes sold for $400,000, while the fifth home sold for $2.5 million. The data should look like this: (let a, b, c, and d, represent the four homes that sold for $400,000, and let e, represent the fifth home sold for $2.5 million). So, a + b + c + d = $400,000.
e = $2.5 million
Now, since the measure of central tendency is the center point or typical value of a dataset, the median can be used to measure central tendency from the data set above. The median is the middle, value when the dataset is arranged from the least value to the highest value, which also depends on if the dataset has an even or odd number of values. While the mode is that value that appears most. Ordinal data, which has no standard scale on which the difference in value in the dataset is measured are best measured using median or mode.
Juanita makes $30 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $30 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Assume that it takes 15 minutes to travel to the local department store, 30 minutes to travel to the store across town, and 60 minutes to travel to the store in the neighboring city.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time (Dollars) Price of a Suit (Dollars per suit) Total Cost (Dollars)
Local Department Store ___________________ 114 _________
Across Town ___________________ 86 _________
Neighboring City ____________________ 60 _________
Answer:
Across Town
Explanation:
Missing word "Assume that Juanita takes opportunity costs and the price of the suit into considerate when she shops. Juanita will minimize the cost of the suit if she buys it from the "
Local Department Store
15 min + 15 min + 30 min = 1 hour
Opportunity cost of time = 1 hour * $30 = $30
Total cost = $30 + $114 = $144
Across Town
30 min + 30 min + 30 min = 1.5 hours
Opportunity cost of time = 1.5 hours*$30 = $45
Total cost = $45 + $66 = $131
Neighboring City
6 min + 60 min + 30 min = 2.5 hours
Opportunity cost of time = 2.5 hours*$30 = $75
Total cost = $75 + $60 = $135
Assume that Juanita takes opportunity costs and the price of the suit into considerate when she shops. Juanita will minimize the cost of the suit if she buys it from the Across Town.
At the beginning of 20X1, a company issues 100,000 shares of 4%, $10 par value, cumulative preferred stock. All remaining shares outstanding are common stock. The company does not pay any dividends in 20X1, but pays dividends of $100,000 at the end of 20X2. How much of the dividend will be paid to common stockholders in 20X2?
a. $20,000.
B. $100,000.
C. $80,000.
D. $60,000.
Answer:
a. $20,000.
Explanation:
The computation of the dividend that will be paid to common stockholders in 20X2 is shown below:
= $100,000 - ($100,000 × 10 × 4% × 2 years)
= $100,000 - $80,000
= $20,000
Hence, the dividend that will be paid to common stockholders in 20X2 is $20,000
Therefore the option a is correct
Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below: Sales price per unit $30 Costs per unit: Direct material 7 Direct labor 4 Overhead (50% variable) 6 Selling costs (40% variable) 10 Production in units 10,000 Sales in units 9,500 Refer to Henderson Electronics Corporation. The Model B2 radio is currently in production and it renders the Model A1 radio obsolete. If the remaining 500 units of the Model A1 radio are to be sold through regular channels, what is the minimum price the company would accept for the radios
Answer:
$4
Explanation:
Calculation to determine the minimum price the company would accept for the radios
Minimum price=Selling costs (40% variable)*$10
Minimum price=$4
Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE
Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total stockholders' equity was $6,000. The debt-to-equity ratio is:___________
Answer:
the debt-to-equity ratio is 1.47
Explanation:
The computation of the debt-to-equity ratio is shown below
= (Current liabilities + Bonds payable + Lease obligations + Deferred income taxes) ÷ Total stockholder's equity
= ($5,000 + $1,500 + $2,000 + $300) ÷ $6,000
= 1.47
Hence, the debt-to-equity ratio is 1.47
Therefore the same should be considered and relevant
Suppose New Zealand uses one unit of labor to produce a kiwi and two units of labor to produce an apple. Suppose Australia uses two units of labor to produce a kiwi and one unit of labor to produce an apple. In this case, New Zealand:________
a. has a comparative advantage in producing apples.
b. has a comparative advantage in producing kiwis.
c. has a comparative advantage in producing both goods.
d. does not have a comparative advantage in producing either good.
Answer:
b. has a comparative advantage in producing kiwis.
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
In this scenario, New Zealand has a comparative advantage in producing kiwis than Australia because it uses one unit of labor to produce a kiwi and two units of labor to produce an apple
The negative impact of the Corona virus as one of the socio economic issues on businesses
Answer:
A socio-economic impact of this pandemic of coronavirus is that it threatens the life and economy of every country worldwide, causing increased poverty and widespread inequalities.
Explanation:
It is a pandemic disease, which spreads from person to person, based on available information. It is, therefore, necessary to avoid collection, to stay as home as possible, to practice distancing from society, to wear a mask, to use sanitizing agents, and to comply with local authorities until specific vaccines or drugs are available.
If the beginning raw materials inventory balance is $50 and the ending raw materials inventory balance is $500 and the amount of raw materials placed into production $400.....what are the Net Purchases for the period
Answer:
the net purchase is $850
Explanation:
The computation of the net purchase is shown below:
The amount of raw material placed into production = opening inventory + net purchase - ending inventory
$400 = $50 + net purchase - $400
So, the net purchase is $850
hence, the net purchase is $850
The net purchase for the period will be $850.
Amount of raw material placed into production) = Opening inventory + Net purchase - Ending inventory
$400 = $50 + Net purchase - $400
Net purchase = $850
In conclusion, the net purchase for the period will be $850.
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Decker Enterprises Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,050 Profit before tax na 450 Taxes na 135 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 If Decker had a financing surplus, it could remedy the situation by a. reducing its dividend. b. borrowing on its line of credit. c. borrowing from its retained earnings d. paying a special dividend e. issuing more common stock.
Answer:
Decker Enterprises
If Decker had a financing surplus, it could remedy the situation by
d. paying a special dividend
Explanation:
a) Data and Calculations:
Income statement
Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Retained earnings na 220
Balance sheets
Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total $1,300 $1,555 Total $1,300 $1,591
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
Answer:
$636,364
Explanation:
Calculation to determine what The break-even point for Gardner Corporation for the current year is
First step is to calculate the Variable costs
Variable costs = $250,000 + $150,000 + $75,000 + $200,000
Variable costs = $675,000
Second step is to calculate the Contribution margin ratio
Contribution margin ratio = (Sales - Variable costs) / Sales
Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000
Contribution margin ratio= 0.55*100
Contribution margin ratio = 55%
Now let calculate the Break-even point
Break-even point = Fixed costs / Contribution margin ratio
Break-even point= ($100,000 + $250,000) / 0.55
Break-even point = $636,364
Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364
a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The company pays workers for wages earned. e. The company purchases supplies for cash. f. The company provides services for cash.
Answer:
a. The company pays cash toward an account payable. ⇒ Decreases an asset and decreases liability.
Cash is an assets and is reduced by this transaction. Accounts payable is a liability that is also reduced by this.
b. The company purchases equipment on credit. ⇒ Increases an asset and increases a liability.
Equipment is an asset so buying it increases assets. It was bought on credit however so liabilities increased.
c. The owner invests cash in the business. ⇒ Increase in assets and increase in equity.
Money brought into a business by the owner is equity and that increased here so this is an increase in equity. Cash is an asset so when it increases, so do assets.
d. The company pays workers for wages earned. ⇒ Decrease in asset and decrease in equity.
Cash was used to pay the workers so assets reduce. Wages earned are an expense that are reduced from income which is equity so equity reduces as well.
e. The company purchases supplies for cash. ⇒ Increase in asset and decrease in asset.
Purchases bring in inventory which are assets so assets increase. Cash was used to buy the asset and so it will reduce so assets will reduce. There is no net effect as these cancel each other out.
f. The company provides services for cash. ⇒ Increase in assets and increase in equity.
Services bring in income which is an equity transaction so equity increases. Cash increases as well as these services bring more cash so assets increase.
Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total stockholders' equity was $6,000. The debt-to-equity ratio is
Answer:
1.47
Explanation:
Debt to equity ratio = Debt / Equity
Debt to equity ratio = (Current liabilities + Bonds payable + Lease obligations + Deferred income taxes) / Total stockholder's equity
Debt to equity ratio = ($5,000 + $1,500 + $2,000 + $300) / $6,000
Debt to equity ratio = $8,800 / $6,000
Debt to equity ratio = 1.47
The money supply increased, and the AD curve did not shift to the right. This is consistent with the:________
a) monetarist transmission mechanism when there is a liquidity trap.
b) Keynesian transmission mechanism when there is a liquidity trap.
c) monetarist transmission mechanism when there is interest-insensitive investment.
d) Keynesian transmission mechanism when there is either a liquidity trap or interest-insensitive investment.
Answer:
b) Keynesian transmission mechanism when there is a liquidity trap.
Explanation:
Since the interest rate is so low, the public will have no incentive to deposit their cash into a bank or invest it in a company. This is a situation where the public will hold to their cash becasue they feel that a negative interest rate is possible. This type of situation could occur if the real interest rate is 0 and the public believes that the possibility of deflation exists and they will be better of by holding to their money.
