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Softa [21]
3 years ago
13

An industry is composed of 10 firms, all with equal sales. the four-firm concentration ratio in this industry is

Business
1 answer:
Klio2033 [76]3 years ago
8 0
The four-firm ratio is the concentration ratio between the total sales accumulated by the four largest industrial firms to the total sales of all firms present in an industry. This translates to the mathematical expression of 

           four-firm ratio = (total sales of four largest firms / total sales)

Since, we are given that all 10 firms have the same sales, we let the sales be equal to x.

    total sales of four largest firms = 4x
    total sales  = 10x

The ratio is then,
 
                   four-firm ratio = 4/10

Converting this to percentage will yield us an answer of 40%. 
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Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on De
kati45 [8]

Answer:

1. $ 129,352,725

2. Jan 1 2016

Jan 1 2016

Dr Cash $ 129,352,725

Dr Discount on issue of bonds $20,647,275

Cr Bonds payable $150,000,000

3. June 30, 2016

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

4. December 31, 2023

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

Explanation:

1. Calculation to Determine the price of the bonds at January 1, 2016

First step is to find Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1) using ordinary annuity table

Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1)

Present value of an ordinary annuity of $1=13.76483

Second step is to find the Present value of $1: n = 30, i = 6% (PV of $1)

Present value of $1: n = 30, i = 6% (PV of $1)=0.17411

Now let calculate the Price of the bonds at January 1, 2016

Interest $ 103,236,225

[(10%/2 semiannually*$150,000,000) *13.76483]

Add Principal $26,116,500

($150,000,000 *0.17411 )

Present value (price) of the bonds $ 129,352,725

($ 103,236,225+$26,116,500)

Therefore the Price of the bonds at January 1, 2016 will be $ 129,352,725

2. Preparation of the journal entry to record their issuance by Universal Foods on January 1, 2016.

Jan 1 2016

Dr Cash $ 129,352,725

($ 103,236,225+$26,116,500)

Dr Discount on issue of bonds $20,647,275

($150,000,000-$ 129,352,725)

Cr Bonds payable $150,000,000

(Being to record issue of Bond)

3. Preparation of the journal entry to record interest on June 30, 2016

June 30, 2016

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2 × $150,000,000)

(Being to record interest paid)

4. Preparation of the journal entry to record interest on December 31, 2023.

December 31, 2023

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2× $150,000,000)

(Being to record interest paid)

6 0
3 years ago
Which of the following is known as a partnership agreement? articles of partnership distribution of assets shared liability the
Vlad1618 [11]
The correct answer is shared liability
5 0
3 years ago
Which of the following would most likely suffer the least from the costs of​ inflation?
Arturiano [62]

Answer:

B. Persons on fixed incomes.

Explanation:

Inflation is a general increase in prices and fall in the purchasing value of money, therefore, a person with a fixed income will not be affected.

8 0
3 years ago
Miguel Alvarez in the accounting department at Baumer Company has provided the following information:
Mekhanik [1.2K]

Answer:

$10.65

Explanation:

The computation of the incremental manufacturing cost in the case when the production level is changed

= Direct material cost per unit + direct labor cost per unit + variable manufacturing overhead per unit

= $6.25 + $3.20 + $1.20

= $10.65

Here the fixed cost would not be relevant

8 0
3 years ago
Which of the following makes a true statement? Concurrent powers are those that are exclusive to the states, such as ratifying a
bearhunter [10]

Answer:

The answer is: Delegated powers are those that are exclusive to national government, like printing money.

Explanation:

Delegated powers are powers given to the federal (national) government and specifically outlined by the US Constitution (Article 1, Section 8). They outline the authority and limits of the three branches of the federal government (legislative, executive and judiciary). Some examples of delegated powers are power to declare war, lay and collect taxes, print and coin money, etc.

5 0
3 years ago
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