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DiKsa [7]
3 years ago
10

Scenario 13-3 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As

a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce. Refer to Scenario 13-3.
Ziva's economic profit from farming equals


a. $130.

b. −$130.

c. −$80.

d. $170.
Business
1 answer:
Murrr4er [49]3 years ago
5 0

Answer:

c. −$80.

Explanation:

The computation of the economic profit is shown below:

Economic profit = Total revenue - Cost of seeds - Earning foregone

where,

Total sales revenue is $300

Cost of seeds is $130

And, the earning foregone is

= 10 hours × $25

= $250

So, the economic profit is

= $300 - $130 - $250

= -$80

We simply applied the above formula to determine the economic profit

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Indicate by how much net income in the income statement is higher or lower if the adjustment is not recorded. (Do not round inte
oee [108]

Answer:

1. If the depreciation is not recorded, expenses will be overstated. Net income will therefore be higher by the depreciation amount of $5,400.

2. One June 30, $34,000 was loaned out. Interest is 7%. This interest needs to be apportioned to 6 months in the year as interest revenue:

= [(7% * 34,000) / 12] * 6 months

= $‭1,190‬

If this is not recorded, interest revenue will not be recorded which means that Net income will be lower by $1,190.

3. This was for one year yet it was received on October 1. 3 months of the amount will have to be accounted for in the current period.

= (9,600/12) * 3

= $2,400

There must be revenue recognized of $2,400. If it is not recognized, Net income will be lower by $2,400.

In total, Net income will be higher (lower) by:

= 5,400 - 1,190 - 2,400

= $1,810

Higher by $1,810.

4 0
2 years ago
The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method f
adelina 88 [10]

Answer:

Operating Activity

Explanation:

The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting the following items (1) Non Cash flow items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.

Amortization of bond premium is an item of non-cash flow that was previously deducted from Operating Profit and needs to be <em>added</em> back.

7 0
3 years ago
Kim’s flowers decided to borrow $26,000 from the bank and use the proceeds to purchase a new delivery vehicle. How should they c
Neko [114]

Based on the fact that Kim's flowers borrowed the money and used it to buy a new delivery vehicle, this business activity should be categorized as both a financing activity and an investing activity.

<h3>What should they classify this business activity as?</h3>

Because Kim's Flowers got the money as a loan, it would be recorded as an inflow for financial activities.

They then used it to purchase a delivery vehicle which is an investment and a capital asset so this will count as an investment activity.

Find out more on classifying business activities at brainly.com/question/14790406

#SPJ1

8 0
1 year ago
Your company manufactures and sells tennis rackets and would like to start selling outside the United States. You are in charge
RideAnS [48]

Answer:

Germany

Explanation:

Tennis rackets are in a way, a luxury item that is only often bought by people who enjoy a middle-high, or high income. This is because Tennis as a whole tends to be an expensive sport to practice, since most tennis courts are located in private clubs, need to be rented for the practice, and the rest of the equipment associated with the sport: the footwear, and even the clothing, tends to be expensive as well.

For this reason, I would target a high income country first, and the most straightforward proxy to measure the average income of a nation is its GDP Per Capita, which is the GDP divided by the total population of the country.

According to the CIA Factbook, we have the following GDP Per Capita figures for the countries listed:

Brazil: $15,600

China: $18,200

Germany: $53,209

Italy: $38,200

Japan: $42,900

As a result, I would choose Germany, because it has the highest GDP per capita among the lot.

5 0
3 years ago
An elected official is:
miskamm [114]
Official who won the office in free election.
4 0
2 years ago
Read 2 more answers
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