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3 years ago

5

At the beginning of a recession comma which of the following is most likely to be true question mark A. The price level begins t

o increase. B. Spending by firms on capital goods is declining. C. Nominal wages decrease. D. Output increases comma and employment rises.

1 answer:

Anestetic [448]3 years ago

3 0

Answer:

B. Spending by firms on capital goods is declining.

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Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i

Ivahew [28]

Answer:

a) <em>Net income using incremental analysis is </em> $692

b) PINA should accept the order because it will increase its net income by $692

<em />

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

= (10,945 + 29651 + 21094)/19,900

=$3.1

Variable cost per unit of sale = $3.1 + $0.35 = $3.45

a) Incremental Analysis

<em>Change in Net Income: $</em>

I<em>ncremental contribution :</em>

( 4.77 - 3.45) × 5,350 = 7,062

<em>Increase in Fixed cost</em> :

(45,374 - 39,004) <u>( 6370)</u>

<em>Net income </em><em><u> 692</u></em>

<em><u>b) </u></em> PINA should accept the order because it will increase its net income by $692

<em />

6 0

3 years ago

Economic profits are:a.less than accounting profits if implicit costs are greater than zero.b.less than accounting profits even

Lady bird [3.3K]

Answer:

option (a) is correct.

Explanation:

Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.

Whereas the accounting profits takes into the effect of explicit costs only.

Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.

Explicit costs refers to the costs that are incurred for operating or running a business.

Accounting profit = Total revenue - Explicit costs

Economic profit = Total revenue - Explicit costs - Implicit costs

Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.

5 0

3 years ago

Michael Barry, Attorney, P.C. began the year with total assets of $126,000, liabilities of $74,000, and stockholders’ equity of

goldenfox [79]

Answer:

The expenses can be recorded as follows;

Debit to the expenses of $33,000 and a credit to the cash account of $33,000.

Explanation:

The accounting equation is an equation that tends to balance a company's assets on one side and the sum of its liabilities and shareholders equity on the opposite side of the equation. It form the basis for the double-entry system in accounting that includes an accounts debit and credit. The debit is a sum to an amount that is owed, it is usually listed on the left hand-side of an account while the credit is a listing of a sum that is received usually on the right hand side of an account.

In the case of Michael Barry, the accounting equation;

Assets=liabilities+stockholders equity

Assets=$126,000

Liabilities=$74,000

Stockholders equity=$52,000

liabilities+stockholders equity=74,000+52,000=$126,000

The assets equals the sum of the liabilities and stockholders equity.

To record expenses paid of $33,000;

Debit Credit

Expenses $33,000

Cash $33,000

3 0

3 years ago

A firm has a profit margin of 12 percent; total asset turnover of 0.55 and an equity multiplier of 2.2. What is the firm's ROA a

lutik1710 [3]

Answer:

ROA = 6.6%

ROE 14.52%

Explanation:

profit margin = net income / sale = 12%

assets turn over = sales / assets = 0.55

equity mutiplier = assets / equity = 2.2

ROE = return on equity = net income / equity

ROA = return on equity = net income / assets

we use the fraction properties to get ROE and ROA

$\frac{income}{sales} \times \frac{sales}{Assets} =\frac{income}{Assets} \\ 0.12 \times 0.55 = 0.066\\$

ROA = 6.6%

We apply the same property to get ROE

$\frac{income}{assets} \times \frac{assets}{equity} =\frac{income}{equity} \\ 0.066 \times 2.2 = 0.14252\\$

ROE = 14.52%

6 0

4 years ago

stock sells for $100 rights-on, and the subscription price is $90. Ten rights are required to purchase one share. Tomorrow the s

m_a_m_a [10]

Answer:

$99.09

Explanation:

Calculation for What is Tricki's expected price when it begins trading ex-rights

Using this formula

Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]

Let plug in the formula

Expected price=$100-[($100-$90)÷(10+1)]

Expected price=$100-($10÷11)

Expected price=$100-$0.91

Expected price=$99.09

Therefore Tricki's expected price when it begins trading ex-rights will be $99.09

3 0

3 years ago