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3 years ago

The signals that guide the allocation of resources in a market economy are

1 answer:

7 0

The answer to this question is the term prices. Prices are the value of a certain product or services. A price is the value or amount of money being paid in exchange of the product being bought. In pricing a product or service, a markup is being set to the price.

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The Balance Sheets at the end of each of the first two years of operations indicate the following: 2006 2005 Total current asset

alexandr402 [8]

Answer:

Return on Assets (2006) = 7.60 %

Explanation:

Return on Assets = Earnings Before Interest and Tax ÷ Total Assets

Therefore,

Return on Assets (2006) = ($115,000 + $30,000) / ( $600,000 + $60,000 + $900,000) × 100

= $118,000 / $1,560,000 × 100

= 7.60 % (one decimal place)

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3 years ago

Assuming purchase costs are rising, determine which statements below are correct regardingthe cost of goods sold under FIFO, LIF

Contact [7]

Answer:

1. Companies using FIFO will report the highest gross profit and net income.

2. Companies using FIFO will report the smallest cost of goods sold.

3. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.

4. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal.

Explanation:

If costs are rising, companies using FIFO will report higher profits simply because they calculate cost of goods sold based on the oldest products which were purchased at a lower cost.

FIFO and LIFO costs will be the extreme points, FIFO showing lowest costs while LIFO will result in the highest costs, while the weighted average will be in between.

Since companies using FIFO report higher profits, they will have to pay more taxes.

8 0

4 years ago

If the exercise price of an M-tel warrant is $48 and the stock splits 2 for 1, what will be the post-split exercise price of the

mariarad [96]

Answer: $60

Explanation:

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4 years ago

Cobe Company has already manufactured 23,000 units of Product A at a cost of $15 per unit. The 23,000 units can be sold at this

alexandr1967 [171]

Answer:

The 23,000 units of Product A shall be processed further for Product B and Product C

Explanation:

In the given case we will do an analysis of Profit.

Without further processing:

Sales = $480,000

Cost = 23,000 $\times$ $15 = $345,000

Profit = $135,000

In case of further processing

Sales = Product B + Product C

= 5,000 $\times$ $107 + 11,300 $\times$ $53

= $535,000 + $598,900 = $1,133,900

Cost = $345,000 + $290,000 = $635,000

Profit = $498,900

Since the profit in case of further processing is more than without processing further by $500,000 (635,000 - 135,000), thus Product B and Product C should be sold more than Product A.

5 0

4 years ago

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within

sladkih [1.3K]

Answer:

A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.

Explanation:

Recognize the Asset - Office Equipment and Accounts Payable Accounts as these are increasing. De-recognize the Cash Account as this account is decreasing.

8 0

3 years ago