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3 years ago

If the purchase and sale of a currently illegal drug (for example, marijuana) were decriminalized, economists would expect:

Business

1 answer:

Masteriza [31]3 years ago

6 0

Answer:

A. An increase in demand and supply of this drug.

Explanation:

In this case, if marijuana were to decriminalized, demand would be skyrocket in the short-term. It will achieve equilibrium once it is set to be recreational use only.

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The following transactions were made by Ruby Inc. last year:

Juliette [100K]

Answer:

OPtion (C) is correct.

Explanation:

Given that,

Issuance of common stock = $100,000

Dividends paid to the company's stockholders = $2,000

Depreciation expense = $6,000

Repayment of principal on bonds = $40,000

Proceeds from the sale of the company's used equipment = $39,000

Purchase of land = $230,000

Cash flow from financing activities:

= Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds

= $100,000 - $2,000 - $40,000

= $58,000

Therefore, the net cash inflow from financing activities is $58,000.

8 0

3 years ago

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the followin

Marat540 [252]

Answer:

a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)

b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)

c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)

d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)

Explanation:

Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:

- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.

- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.

- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt

3 0

3 years ago

Shelton Co. purchased a parcel of land six years ago for $874,500. At that time, the firm invested $146,000 in grading the site

Oliga [24]

Answer:

$926,000

Explanation:

For computing the initial cost of the warehouse project, we consider the current value of the land i.e represent the opportunity cost and the land value which is purchased six years ago for $874,500 represent the sunk cost which is not recoverable now. So, this sunk cost is not relevant.

And, the lease cost is also not relevant as the lease period will be ended soon.

All other information which is given is not relevant. Hence, ignored it

3 0

3 years ago

Dobles Corporation has provided the following data from its activity-based costing system: The Assembly Cost Pool has a total co

Harrizon [31]

Answer:

$95.34 per unit

Explanation:

activity cost pool total cost(a) total activity(b) activity rate

assembly $228060 180000 hours $12.67

processing oders $34068 1200 orders $28.39

inspection $125560 1720 hours $73.00

Cost per activity is obtained by dividing total cost for each activity pool with its respective total activity. Cost per activity is helpful to identify the total cost allocated to each activity.

particulars expected activity per activity rate total cost

assembly 460 hours $12.67 $5828.20

processing orders 80 orders $28.39 $2271.20

inspection 10 hours $73.00 $730.00

manufacturing overhead $8829.40

Manufacturing overhead is the other costs that are neither direct material cost and nor direct labor cost. Here we add the total cost incurred in each cost pool to arrive at manufacturing overhead of $8,829.40. The manufacturing overhead incurred is allocated to each cost pool as per the activity and per activity rate.

manufacturing overhead per unit = manufacturing overhead/total units produced

= $8829.40/420

= $21.02

product cost per unit = direct material per unit + direct labor per unit + manufacturing overhead cost per unit

= $48.96 + $25.36 + $21.02

= $95.34

Therefore, the unit product cost of product D28K is closest to $95.34

8 0

3 years ago

If mistakes or fraudulent reporting behavior are discovered, auditors require the company to correct all significant information

stepladder [879]

Answer:

The correct answer is True.

Explanation:

In the context of the audit of financial statements, fraud consists of recording intentional errors in the financial statements. The two main fraud categories are: fraudulent financial reports and asset misappropriation.

Fraudulent financial reports are characterized by containing errors or intentional omissions in the amounts with the intention of deceiving users. Most cases of fraudulent financial reports overestimate assets and income or omit financial liabilities and expenses to show higher income.

6 0

3 years ago