What is a purpose of drawing up budgets in a business

On April 1, the price of gas at Bob’s Corner Station was $4.95 per gallon. On May 1, the price was $5.45 per gallon. On June 1,

AnnyKZ [126]

Answer: Please refer to Explanation

Explanation:

1. a. Between April 1 and May 1, Bob’s price increased by $0.50 , or by ___ %.

To calculate, divide the difference in the amounts by the amount the change occured from.

The price increased by $0.50 from $4.95. Percentage Increase should be,

= 0.5 / 4.96 * 100%

= 10.1%

b. Between May 1 and June 1, Bob’s price decreased by $ , or ____ %.

The Price by $0.5 from $5.95 to $4.95

= 0.5/5.95

= -9.17% (negative because it was a price decrease)

2. Across the street, their price is 20% higher than Bob's.

When Bob's prices are $5.45, there's are,

= 5.45 * ( 1 + 20%)

= 5.45 * 1.2

= $6.54

Difference is,

= 6.54 - 5.45

= $1.09

3. The Fed raised it's rate from 2% to 2.75%.

The change is,

= 2.75% - 2%

= 0.75%

This is a percentage Change of,

= 0.75/2 * 100%

= 37.5%

This change of 0.75 percentage points means that the Fed raised its target by approximately 37.5%.

8 0

3 years ago

On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,

Usimov [2.4K]

Answer:

"$224,000" is the correct solution.

Explanation:

The given values are:

Corporation purchased percentage,

= 25%

Original investment,

= $210,000

Short's net income,

= $80,000

Paid cash dividend,

= $24,000

Now,

The share of net income will be:

= $25 \ percent\times 80,000$

= $0.25\times 80000$

= $20,000$ ($)

The cash dividend will be:

= $25 \ percent\times 24,000$

= $0.25\times 24,000$

= $6,000$ ($)

hence,

On December 31, 2021, the balance will be:

= $Original \ investment+Net \ income \ share+Cash \ dividend$

= $210,000+20,000+6,000$

= $230,000-6,000$

= $224,000$ ($)

6 0

3 years ago

Interest on a Note Payable is most appropriately accrued:_____________

Thepotemich [5.8K]

Answer: Interest on a Note Payable is most appropriately accrued: "B. as of the end of each accounting period during which the note is a liability.".

Explanation: As long as the Note Payable remains a liability and has not yet reached its due date, according to the accrual principle, at the end of each accounting period the accrued interest must be recognized, and when the Note payable reaches its expiration it must remain with balance 0 the interest not accrued account.

8 0

3 years ago

ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 pe

melisa1 [442]

Answer and Explanation:

The computation is shown below;

a. Raw material price variance is

= (standard price - actual price) × actual quantity

= ($10 - $11) × ($69,300 ÷ $11)

= ($10 - $11) × 6,300

= $6,300 unfavorable

b. The raw material usage variance is

= (Standard quantity - actual quantity) × standard price

= (525 × 13 - 6,300) × $10

= $5,250 favorable

In this way it should be calculated

3 0

3 years ago

Buster industries pays weekly salaries of $17,800 on friday for a five-day week ending on that day. the adjusting entry necessar

faust18 [17]

salaries payable: (17,800/5)*2= 7,120 (credit) salaries expenses: 7,120 (debit)

6 0

4 years ago