Refer to the following supply and demand curve diagram.

The average price of homes sold in the U.S. in 2012 was $240,000. A sample of 144 homes sold in Chattanooga in 2012 showed an av

Ainat [17]

Answer:

H0 : Average price of homes sold in US = 24000 ; H1 : Average price of homes sold in US ≠ 24000

t calculated value = 2 , t critical (tabulated) value = 1.96

calculated t > critical t . Null Hypothesis is rejected, It is concluded that 'Average price of homes sold in US ≠ 24000 '

Explanation:

Null Hypothesis : Average price of homes sold in US = 24000

Alternate Hypothesis : Average price of homes sold in US ≠ 24000

t = (x' - u) / (s / √n)

x' = sample mean = 246000 (given)

u = population mean = 240000 (given)

s = standard deviation = 36000

n = no. of observations = 144

t = (246000 - 240000) / (36000/√144)

6000/ (36000/12000) = 6000/3000

t = 2

Critical value for a two tailed test at 5% significance level, 0.025 in t distribution = 1.96

Since calculated value, 2 > tabulated or critical value at significance level, 1.96. So, we reject the null hypothesis. This implies that <u>'Average price of homes sold in US ≠ 24000</u>'

3 0

3 years ago

Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions

xeze [42]

Answer:

The classification is shown below:

Explanation:

As we already know that

Cash receipts is the amount which is received by the company in cash that results in increment in cash balance. It is a cash inflow

While the cash payment is the amount which has to be paid by the company in cash that results in decrements in cash balance. It is a cash outflow

So based on this, the categorization is presented below:

Retired $200,000 of bonds, on which there was $2,000 of unamortized discount, for $208,000. = Cash payment for $208,000

Sold 12,000 shares of $20 par common stock for $39 per share. = 12,000 shares × $39 = $468,000 cash receipt

Sold equipment with a book value of $47,500 for $68,400. = Cash receipt for $68,400

Purchased land for $328,000 cash. = Cash payment for $328,000

Purchased a building by paying $51,000 cash and issuing a $90,000 mortgage note payable. = Cash payment for $51,000

Sold a new issue of $270,000 of bonds at 98. = Cash receipts for $264,600 ($270,000 × 0.98)

Purchased 4,000 shares of $30 par common stock as treasury stock at $60 per share. = Cash payment for $240,000 (4,000 shares × $60)

Paid dividends of $1.90 per share There were 19,000 shares issued and 3,000 shares of treasury stock. = Cash payment for $304,00 (19,000 shares - 3,000 shares) × $1.90

7 0

4 years ago

MW Company manufactures down-filled comforters and uses an activity-based costing system. During the current period, the company

Scilla [17]

Answer:

MW Company

Activity rate for order process = $54,120/660

= $82 per order

Explanation:

a) Data and Calculations:

Production = 16,500 units

Direct labor = 19,800 hours

Machine hours = 21,450 hours

No. of orders = 660

No. of shipments = 165

Order-processing cost pool = $54,120

Shipping cost pool = $14,025

Assembly cost pool = $71,280

Activity rate for order process = $54,120/660

= $82 per order

b) MW Company uses an activity-based costing system to identify its activities into cost pools and assign the cost of each activity pool to the products and services according to their actual consumption of the activities. The activity-based costing technique provides a more accurate method for determining the costs of products and services. As a more accurate method for pricing decisions than other traditional methods, activity-based costing technique increases management's understanding of overheads and cost drivers and makes activities that are costly and non-value adding to become more visible, allowing managers to reduce or eliminate them, because these activities add costs to the production system.

3 0

3 years ago

Ai Lun, a management trainee at a large New Yorkdashbased bank, is trying to estimate the real rate of return expected by inve

QveST [7]

Answer:

Ai Lun estimate that real rate would be 1%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

In this case ,

Nominal interest rate =3%

Inflation rate is given by the rising of the consumer prices =2%

So,

Real rate of return =3% - 2%

Real rate of return=1%

5 0

3 years ago

Bumble Bee Co. had taxable income of $7,000, tax depreciation of $5,000, book depreciation of $2,000, and accrued warranty expen

NeX [460]

Answer:

$9,600

Explanation:

Calculation for Bumble Bee's pretax accounting income

Using this formula

Pretax accounting income=Taxable income-Accrued warranty expense+(Tax depreciation-Book depreciation)

Let plug in the formula

Pretax accounting income=$7,000-$400+($5,000-$2,000)

Pretax accounting income=$7,000-$400+$3,000

Pretax accounting income=$9,600

Therefore Bumble Bee's pretax accounting income will be $9,600

8 0

3 years ago