According to the rational rule for sellers, this company should produce ____ of output and charge a price of ____

The Murdock Corporation reported the following balance sheet data for 2021 and 2020:

Alex_Xolod [135]

Answer:

The Murdock Corporation

Statement of Cash Flows for the year ended December 31, 2021

Operating activities (only):

Net income $69,000

Depreciation expense 51,100

Gain on sale of securities (6,400)

Gain on sale of equipment (1,950)

Changes in working capital:

Accounts receivable (13,650)

Inventory (21,900)

Prepaid insurance 690

Accounts payable (74,230)

Salaries payable (6,400)

Notes payable (current) (51,900)

Cash flow from operations ($55,640)

Explanation:

a) Data and Calculations:

2021 2020 Change

Cash $98,465 $34,355 +$64,110

Available-for-sale debt securities

(not cash equivalents) 25,000 104,000 -79,000

Accounts receivable 99,000 85,350 +13,650

Inventory 184,000 162,100 +21,900

Prepaid insurance 3,210 3,900 -690

Land, buildings, and

equipment 1,288,000 1,144,000 +144,000

Accumulated depreciation (629,000 ) (591,000 ) +38,000

Total assets $1,068,675 $942,705

Accounts payable $93,440 $167,670 -74,230

Salaries payable 27,600 34,000 -6,400

Notes payable (current) 42,100 94,000 -51,900

Bonds payable 219,000 0 +219,000

Common stock 300,000 300,000 0

Retained earnings 386,535 347,035 +39,500

Total liabilities and

shareholders' equity $1,068,675 $942,705

Additional information for 2021:

1. Available=for-sale debt securities:

Cost = $79,000

Sales = 85,400 Cash

Profit = $6,400

2. Equipment:

Cost = $20,000

Acc. Dep. 13,100

Book value 6,900

Cash sales 8,850

Profit = 1,950

Accumulated Depreciation:

Beginning balance $591,000

Sale of equipment (13,100)

Depreciation expense 51,100

Ending balance 629,000

3. Bonds issue = $219,000

Interest on bonds = 13,140 ($219,000 * 6%)

4. Purchase of new equipment = $164,000

5. Cash dividends = $29,500

6. Net income = $69,000

Statement of Cash Flows for the year ended December 31, 2021

Operating activities:

Net income $69,000

Depreciation expense 51,100

Gain on sale of securities (6,400)

Gain on sale of equipment (1,950)

Changes in working capital:

Accounts receivable (13,650)

Inventory (21,900)

Prepaid insurance 690

Accounts payable (74,230)

Salaries payable (6,400)

Notes payable (current) (51,900)

Cash flow from operations ($55,640)

Investing activities:

Sale of equipment 8,850

Purchase of equipment (164,000)

Available-for-sale debt securities

(not cash equivalents) 85,400

Cash flow from investing ($69,750)

Financing activities:

Issue of bonds 219,000

Dividends (29,500)

Cash from financing $189,500

Net Cash flows $64,110

Reconciliation:

Beginning cash balance $34,355

Net Cash flows $64,110

Ending cash balance $98,465

5 0

2 years ago

1. If money is deposited in a bank that pay's simple interest of 4.5 %, bow much will have to be deposited to earn $90 of intere

TiliK225 [7]

The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.

Explanation:

The given is,

Simple interest of 4.5 %

Earn $90 of interest for 8 months

Step:1

Formula to calculate the simple interest method,

$F=P(1+iN)$ ...................................(1)

Where,

F - Future amount

P - Initial investment

i - Rate of interest

N - Number of years

From given,

i - 4.5%

Let, X - Initial investment, P = X

F = P + Interest amount

F = X + 90

From the equation (1),

$(X+90)=X(1+(0.045)(0.667))$

(∵ N = 8 months = $\frac{8}{12}$ = 0.667 year )

$(X+90)=X(1+(0.03))$

$(X+90)=X(10.03)$

$(X+90)=1.03 X$

$90=1.03X-X$

$90=0.03X$

$= \frac{90}{0.03}$

= 3000

P = X = $ 3000

From the X value.

F = P + 90

= 3000 + 90

F = $ 3090

Result:

The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.

4 0

2 years ago

In 2016, the population of the United States was approximately 325 million people, with an annual growth rate of approximately 0

Tpy6a [65]

Answer:

The population would be 1318 million

Explanation:

Acording to the formula

Nt = population size in generation t

No = initial population size.

e= number e

T= number o years

r = rate

<h2>Nt =325 x ( e^{200 * 0.007})</h2><h2></h2><h2>Nt = 1318 millions</h2>

4 0

3 years ago

The purpose of stock valuation isGroup of answer choicesof limited value, since the efficient market hypothesis proves that all

ki77a [65]

To determine whether the value of the common stock is fairly represented by its market price.

8 0

3 years ago

Other things the same, a decrease in the price level makes consumers feela.more wealthy, so the quantity of goods and services d

djyliett [7]

Answer:

<h2>The answer in this case would be option a. or feel more wealthy, so the quantity of goods and services demanded rises. </h2>

Explanation:

As a common consumer psychology,as the price of any good or service decreases,any rational consumer or buyer feels more wealthy compared to before as the purchasing power of the consumers or buyers pertaining to that particular good or services has increased,everything else held constant.
Purchasing power of any good or service is generally reflected by the purchasing or buying capacity of that good or service with the amount of money that a consumer or buyer has at his or her disposal.
As the price of any good or service decreases,it becomes cheaper to the consumer,again everything else considering constant.In other words,it increases the purchasing power or capacity of the consumers or buyers.Therefore,the typical consumer or buyer will prefer or demand more of that particular good or service thereby,increasing its quantity demanded due to a price reduction.

3 0

2 years ago

According to the rational rule for sellers, this company should produce ____ of output and charge a price of _____.

According to the rational rule for sellers, this company should produce of output and charge a price of _.