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3 years ago

Which of the following is an example of a relationship with a negative slope?

Business

1 answer:

iren [92.7K]3 years ago

5 0

Answer:

c. More items purchased when prices drop

Explanation:

Lets determine the two variables and their relation in each of the cases.

Quality decreases. Quantity purchased decreases. Both item decreasing is a positive relation and thus would not yield a negative slope.

Spending rises. Income rises. Both items increasing is a positive relation and thus would not yield a negative slope.

Purchases increase. Price decrease. One item increases while the other decreases and thus is a negative relationship with a negative slope.

Qty sold increases. Quality increases. Both items increasing is a positive relation and thus would not yield a negative slope.

Hope that helps.

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Julie is 25 years old and living in an apartment. She is thinking about quitting her job and returning

sergeinik [125]

Answer:

Explanation:

Julie is 25 years old and living in an apartment. She is thinking about quitting her job and returning

to college. Consider the following costs: tuition, the cost of books and supplies and rent.

Rent is

A. not a cost associated with college

B. an explicit cost of attending college

C. an implicit cost of attending college

5 0

2 years ago

The income statement approach to estimating uncollectible accounts expense is used by Kerley Company. On February 28, the firm h

erik [133]

Answer:

Feb 28.

Uncollectible accounts expense would amount to 1% of net credit sales made during February.

Dr Bad Debt Expense $ 27,860

Cr Allowance for Uncollectible Accounts $ 27,860

On March 10, an accounts receivable from Kathy Black for $6,100 was determined to be uncollectible and written off.

Dr Allowance for Uncollectible Accounts $ 6,100

Cr Accounts receivable $ 6,100

March 31, Black received an inheritance and immediately paid her past due account in full.

Dr Accounts receivable $ 6,100

Cr Allowance for Uncollectible Accounts $ 6,100

Dr CASH $ 6,100

Cr Accounts receivable $ 6,100

Explanation:

February 28

Dr Accounts receivable $ 437.000

Cr Allowance for Uncollectible Accounts $ 2.140

Net Credit Sales February $ 3.000.000

Uncollectible accounts expense would amount to 1% of net credit sales made during February.

Dr Bad Debt Expense $ 27.860

Cr Allowance for Uncollectible Accounts $ 27.860

On March 10, an accounts receivable from Kathy Black for $6,100 was determined to be uncollectible and written off.

Dr Allowance for Uncollectible Accounts $ 6.100

Cr Accounts receivable $ 6.100

March 31, Black received an inheritance and immediately paid her past due account in full.

Dr Accounts receivable $ 6.100

Cr Allowance for Uncollectible Accounts $ 6.100

Dr CASH $ 6.100

Cr Accounts receivable $ 6.100

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % estimated of accounts receivables as CREDIT.

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary

to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0

3 years ago

A comparative balance sheet for Sarasota Corporation is presented as follows.

Bond [772]

Answer:

Sarasota Corporation

1. Statement of Cash Flows for the year ended December 31, 2020:

Operating Activities:

Net Income $129,720

Non-cash adjustment:

Depreciation 26,680

Cash from operating $ 156,400

Changes in working capital:

Accounts Receivable (15,680)

Inventory 9,320

Accounts Payable (13,320)

Net cash from operating activities $136,720

Investing Activities:

Land 39,320

Equipment (59,680)

Net cash from investing activities $(20,360)

Financing Activities:

Cash dividends $(65,680)

Net cash inflows $50,680

2. Sarasota Corporation's:

a) Current Cash Debt Coverage = Cash from operating activities/Current liabilities

= $136,720/$36,360

= 3.76

b) Cash Debt Coverage = Cash from operating activities/Total liabilities

= $136,720/$186,360

= 0.73

c) Free Cash Flow = Cash from operating activities minus Capital expenditure

= $136,720 - 59,680

= $77,040

Explanation:

a) Data and Calculations:

Sarasota Corporation

Comparative Balance Sheets

As of December 31 2020 and 2019:

Assets 2020 2019 Increase Decrease

Cash $ 72,680 $ 22,000 $50,680

Accounts receivable 84,360 68,680 15,680

Inventory 182,360 191,680 $9,320

Land 73,360 112,680 39,320

Equipment 262,360 202,680 59,680

Accumulated Depreciation-Equipment

(71,360) (44,680) 26,680

Total $603,760 $553,040

Liabilities and Stockholders' Equity

Accounts payable $ 36,360 $ 49,680 13,320

Bonds payable 150,000 200,000 50,000

Common stock ($1 par) 214,000 164,000 50,000

Retained earnings 203,400 139,360

Total $603,760 $553,040

b) The decrease in bonds is not a cash flow. The increase in Common Stock is not a cash flow. The two are exchanges. In calculating the free cash flow, the cash proceeds from sale of land were not taken into consideration because the sale was a one-off transaction and not part of the operating activities of Sarasota Corporation.

4 0

4 years ago

At the beginning of the year, Glaser Company estimated the following: Assembly Department Testing Department Total Overhead $702

Arte-miy333 [17]

Answer:

Assebly rate: $ 9.12 per labor hour

Testing rate: $11.43 per machine hour

Explanation:

Assembly Department Testing Department Total

$702,000 $786,240 $1,488,240

Direct labor hours 77,000 95,480 172,480

Machine hours 95,500 68,760 164,260

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

Assembly rate:

702,000 / 77,000 = 9,11688

Testing rate

786,240 / 68,760 = 11,4347

4 0

4 years ago

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested con

Anna [14]

Full question:

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.

a. responsive

b. perceptive

c. identifiable

d. reachable

e. quantifiable

Answer:

Starbucks's critics suggested consumers would not be responsive to the company's offerings.

Explanation:

Marketing is all concerning providing the requirements and needs of purchasers. Consumers have supplies and are prepared to contribute to meeting their requirements by acquiring goods and services. The benefit of products offered in the markets depends on whether they satisfy consumer or company needs.

Consumers’ choices on whether to acquire or not to acquire will be a sign of the production of the goods in the market. A portion is responsive if its members behave likewise and confidently to the purchasing mix. Initial critics did not gather that purchasers would acknowledge confidently to the proposal of a $4 cup of coffee.

4 0

4 years ago