Answer:
Statement of Cash Flows (Direct Method)
For Year Ended December 31, 2020
Particulars Amount
Cash Flows from operating activities:
Cash Receipts from:
Customers ($50800+ $190100) $240,900
Dividend Revenue $18,800 $259,700
Less: Cash payments:
For Interest -$10,000
For Income Taxes -$16,900
To suppliers for Merchandise -$115,600
For Salaries and wages -$57,100
For Operating Expenses -$28,300 -<u>$227,900</u>
Net Cash provided by operating activities <u>$31,800</u>
Answer:
a. equal to its marginal cost and grant a subsidy to cover the loss
Explanation:
In a competitive market there is allocative efficiency non fixing of prices.
The price of commodity is equal to it's marginal cost.
A socially optimal level of output is produced thereby demand will equal marginal cost.
A monopolist however will not set price that is equal to marginal cost normally. Instead they will less goods at a higher cost and charge higher price on it.
If a government wants to regulate a monopoly the best option will be for the monopolist to set a price equal to its marginal cost and government grant a subsidy to cover the loss
Answer:
- Sacred consumption
- Profane consumption
Explanation:
This differentiation is based on special religious events (e.g. religious holidays) that considered some goods as sacred, while profane had to do with everyday life.
Some modern marketing strategies try to build sacred brands. For example, Google has become our God of all knowledge and no one even dares to challenge that almost religious belief. Anyone can make their own coffee or buy coffee at any coffee shop, but Starbucks is different, it has built a sense of emotional connection with the public. It's not any coffee that we need or want.
Problems mentioned in order of priority:
1. Refrigerator making noise - I would make this a priority since this is the easiest to solve and it will prevent future and bigger problem. Scheduling for an appointment for a technician is as easy as a phone call and this is the first thing that I would do. Choose the soonest possible appointment to have the refrigerator checked and ensure it's working quality.
2. Large order for wedding in 3 days and tulips for bouquet is unavailable due to frost - This is the second problem that I will try to resolve since it is time sensitive and would help with the shops sales and reputation. I would check for tulips alternative first before calling the customer. Once I have a list of good alternatives for the tulips, a phone call should be in place to inform them of the situation. Ask or suggest an acceptable alternative to tulips and settle the number of orders. Ensure that the orders are feasible to be delivered fresh on the exact date and time that they need it to and negotiate if necessary if they have a request that cannot be provided in time.
3. Employee needs the next 6 weeks off for a surgery happening in 2 weeks time. This is not a priority since the large order is happening in 3 days, which means that the top employee would still be available for work. Documentations for the leave should be processed and approved as it is a medical leave provided that necessary proofs or medical certificates are given. If there is an expected peak season during the time that the top employee would be on leave, a seasonal worker can be hired to help with man power. But if there is no expected increase or bulk orders in the coming weeks, no change is necessary.
4. Lastly, the rumors that the building will be sold. - This is the least important and least to be prioritized as it is only a rumor. It may affect the business if it happens so once the large order is settled, there is no harm in trying to verify this rumor. I would check it with the building administration first to see if they can confirm what's going to happen with the building. If it is confirmed to be sold to a new owner with a possibility of rent increase, it is the time to consider planning for alternatives. An example is to scout for other possible store locations, to come up with accounting reviews to see how an increase in the rent would affect the total profit of the store or come up with plans to increase the profit if needed. But, until any of the said rumor is proven to be true, there is no necessary action that needs to be taken.
Answer:
The correct answer to the following question is $39,000 .
Explanation:
The given information -
Direct material - $25,000
Beginning work in progress - $2000
Ending work in progress - $5000
Direct labor - $10,000
Manufacturing overhead - $7000
So to calculate the cost of goods manufactured =
Direct material + Beginning work in progress + Direct labor + Manufacturing Overhead - Ending work in progress
= $25,000 + $2000 + $10,000 + $7000 - $5000
= $39,000
