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gtnhenbr [62]
2 years ago
14

1. A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in

merchandise purchased from the parent in its beginning inventory. During the current year, the subsidiary paid the parent $720,000 for merchandise, and sold merchandise purchased from the parent to outside customers for $870,000. At year-end, the subsidiary has $180,000 in merchandise purchased from the parent in its ending inventory. At what amount does the subsidiary report cost of goods sold on merchandise purchased from the parent? A. $660,000 B. $600,000 C. $720,000 D. $780,000
Business
1 answer:
NARA [144]2 years ago
6 0

Answer:

The subsidiary reports cost of goods sold at A. $660,000.

Explanation:

Cost of goods sold is the direct cost of producing or purchasing the goods sold by a business. The formula for cost of goods sold is as follows:

Cost of goods sold = Opening inventory + Purchases - Closing inventory

The subsidiary calculates its cost of goods sold as follows.

Opening inventory           $120,000

Add: Purchases                $720,000

Less: Closing inventory    ($180,000)

Cost of goods sold           $660,000

Therefore, the correct option is A. $660,000.

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On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bush
olasank [31]

Answer:

Option (a) is correct.

Explanation:

According to the law of diminishing marginal productivity, if there is an increase in the input in the production of a certain commodity then as a result there is an increase in the output of that commodity, initially but further increase in the input will have no impact on the output of the commodity or will have a negative impact.

In our case, when farmer hires 3rd worker, the output increases by 1,400(4,400-3,000) bushels. According to the law of diminishing marginal productivity, if he hires 4 workers then there is an increase in the output but less than the 1,400 bushels.

This condition will be satisfied in the option (a), where output increases by 1,200 bushels.

7 0
3 years ago
The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125.
Andreas93 [3]

As a seller we would receive $1,041.25

<u>Solution:</u>

You may receive the bid price of the dealer, 104.125\% of $1,000, or $1,041.25

Prices of treasury bonds are expressed as par value amounts.  

The quote price of 104:25 means that the bond is priced at (104 + \frac{25}{100})\%= 104.25\% of the par value.  

Therefore, if the debt is $1,000, the dollar values to be charged by the borrower should be 1,000\times104.25\% = \$1,041.25

5 0
2 years ago
A government began 2013 with a budget deficit and a trade deficit. During the year, the government changed its policy and is now
ddd [48]

Answer:

the exchange rate and the trade deficit to decrease.

Explanation:

A deficit can be defined as an amount by which money, falls short of its expected or required value.

Generally, deficit in financial accounting is usually as a result of expense exceeding revenue or revenue falling below expenses at a specific period of time.

For instance, when liabilities exceeds assets or import exceeds export there would be a deficit in the financial account.

Generally, a deficit on the current account ultimately implies that the value of goods and services exported is lower than the value of goods and services being imported in a particular country.

In 2013, government began with a budget deficit and a trade deficit. During the year, the government changed its policy and is now running a budget surplus.

Hence, this change in policy will cause the exchange rate and the trade deficit to decrease if all other factors hold constant

7 0
3 years ago
Each statement below is part of an economic model. Indicate whether the statement is a prediction of cause and effect or an assu
aivan3 [116]

Answer:

(a) Assumption

(b) Cause and Effect

(c) Cause and effect

(d) Assumption

Explanation:

(a)  People behave rationally: Assumption

Rational behavior refers to a decision-making process that is based on making assumptions that result in an optimal level of benefit or utility.

(b) Cause and Effect

If a price of goods falls that is a cause and the effect is that  people will consume more of the good.

(c) Cause and effect

As the population grows faster than food supply (cause), mass starvation is predicted to occur which is the resultant effect.

(d) Assumption

The maximization of profit is based on the assumption of theory of production and costs.

4 0
2 years ago
Read 2 more answers
Your parents are giving you $205 a month for 4 years while you are in college. At an interest rate of .48 percent per month, wha
luda_lava [24]

Answer:

$8,770.00

Explanation:

In this question we use the present value formula i.e shown in the attachment below:

Data provided in the question

Future value = $0

Rate of interest = 0.48%

NPER = 4 years × 12 months = 48 months

PMT = $205

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $8,770.00

7 0
3 years ago
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