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enot [183]
3 years ago
11

Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce

rtified public accountant. He runs his business from his converted garage apartment, which he could rent out for $300 a month if he wasn’t using it as a home office. He must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $12,000 per month.a. What are Barney’s monthly explicit costs? b. What are Barney’s monthly implicit costs? c. What are Barney’s monthly economic costs?
Business
1 answer:
Yuliya22 [10]3 years ago
4 0

Answer:

A. $125

(Supplies + Electricity)

B. $10,300

(Salary lost + Rent amount lost)

C. $10,425

(Add them together)

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Carney Construction purchased a truck for $55,000 on January 1, 2015. The truck had an estimated useful life of 5 years and an e
ddd [48]

Answer:

The amount of depreciation would be recorded in 2016 was $12,000

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total cost of the equipment - Residual value =  $55,000 - $5,000 = $50,000

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for 2015 = 40% x $50,000 = $20,000

At the beginning 2016, the Depreciable cost's book value is $50,000-$20,000 = $30,000

Depreciation expense for 2016 = 40% x $30,000 = $12,000

7 0
3 years ago
The advertised claim for batteries for cell phones is set at 48 operating hours, with proper charging procedures. a study of 500
gregori [183]

Answer:

The answer is NO. The experimental results did not support the claim that less than 0.2 percent of the company's batteries would fail during the advertised time period.

Explanation:

From the illustration, for 15 batteries to fail out of 5000 batteries that means a 0.3 percent failure. Hypothetically, since there has been a claim that about 0.2 per cent will fail and we now have a confirmed failure rate of 15 in 5000 or 0.3 per cent rate, then we can infer that the hypothesis of 0.2 percent may be incorrect after all since it is still less than the confirmed rate of 0.3 per cent failure. Thus, since 0.3 rate is higher than 0.2 rate, then the hypothesis is wrong by a margin  of 0.1 percent.

5 0
3 years ago
Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial
sergejj [24]

Answer:

B) opportunity costs.

Explanation:

Opportunity cost is the fortified benefits when a choice is made. It is the sacrificed option from a  variety of possible choices. The value of opportunity cost is expressed as the cost of the next best alternative.

According to the economist, Joe made a loss because his opportunity cost would have yielded a better return. In evaluating the viability of a project, economists always consider the returns from the next best alternative. Joe would have made a profit if the returns from the sales of gold were higher than the 3 percent from a certificate of deposit.  Because Joe opted for the gold, he missed the chance to earn from the certificate of deposit. In economics, he made a loss.

3 0
3 years ago
Which are three of the four main economic variables?
Romashka [77]
Employment, inflation, productivity, and taxes and interest rates.
From those four I'd say the first three but taxes and interest rates are also important in certain cases as for purchasing but for working too!
4 0
3 years ago
Read 2 more answers
Crystal Apple Sales Company began 2014 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500
Andru [333]

Answer and Explanation:

a. The computation of ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average is shown below:-

Cost of goods sold = (200 × $18) + (800 × $20) + (1,040 × (2,040-200-800)

= (200 × $18) + (800 × $20) + (1,040 × $24)

= $3,600 + $16,000 + $24,960

= $44,560

Ending Inventory Under FIFO = (1,200 - 1,040) × (2,040-200-800)

= 160 × $24

= $3,840

Under LIFO method

Cost of goods sold is

= (1,200 × $24) + (800 × $20) + (40 × $18)

= $28,800 + $16,000 + $720

= $45,520

Ending Inventory Under LIFO is

= (200 - 40) × $18

= 160 × $18

= $2,880

Weighted Average cost flow Assumption

Weighted Average cost per apple = Cost of Beginning inventory and purchase ÷ Total apple available

Cost of Beginning inventory and purchases is

= (200 × $18) + (800 × $20) + (1,200 × $24)

= $3,600 + $16,000 + $28,800

= $48,400

Total apples available is

= 200 + 800 + 1,200

= 2,200  

Weighted Average cost per apple is

= $48,400 ÷ 2,200

= $22

Cost of goods sold is  

= 2,040 × $22

= $44,880

Ending Inventory is

= 160 × $22

= $3,520

b. The Preparation of income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions is prepared below:-

Income Statement                       Amount

Sales (2,040 × $40)                     $81,600

Less: Cost of goods sold            ($44,560)

Gross Profit                                  $37,040

Less: Operating Expenses         ($26,000)

Income before income taxes      $11,040

Less: Income tax (30% × $11,280) ($3,312)

Net Income                                     $7,728

Balance Sheet

Assets  

Cash                                                   $9,488

Inventory                                             $3,840

Total Assets                                        $13,328

Liabilities and Stockholder's Equity

Common Stock                                   $2,500

Retained Earnings                              $10,828

Total Liabilities and Equity                $13,328

Working note

cash = (opening + Sales - Purchases - Operating expenses - Income tax expenses )

= $2,000 + $81,600 - $44,800 - $26,000 - $3,312

= $9,488

Retained earning = (Opening + Net Income)

= $3,100 + $7,728

= $10,828

Statement of Cash Flow

Cash Flow from Operating Activities  

Cash Sales                                               $81,600

Payment to Accounts Payable              ($44,800)

Operating Expenses                              ($26,000)

Income tax paid                                      ($3,312)

Net Increase in cash and

cash equivalents                                     $7,488

Add: Opening Cash and

cash equivalents                                     $2,000

Closing Cash and cash equivalents      $9,488

LIFO cost flow Assumption

Income Statement

Sales (2,040 × $40)                                 $81,600

Less: Cost of goods sold                         ($45,520)

Gross Profit                                              $36,080

Less: Operating Expenses                     ($26,000)

Income before income taxes                  $10,080

Less: Income tax (30% × $10,080)             ($3,024)

Net Income                                               $7,056

Balance Sheet

Assets  

Cash                                                           $9,776

Inventory                                                    $2,880

Total Assets                                               $12,656

Liabilities and Stockholder's Equity

Common Stock                                           $2,500

Retained Earnings                                       $10,156

Total Liabilities and Equity                         $12,656

Working note:-

Cash = (opening + Sales - Purchases payment - Operating expenses -Income tax expenses)

= $2,000 + $81,600 - $44,800 - $26,000 - $3,024

= $9,776

Retained earning = (Opening + Net Income)

= $3,100 + $7,056

= $10,156

Statement of Cash Flows  

Cash Flow from Operating Activities  

Cash Sales                                             $81,600

Payment to Accounts Payable            ($44,800)

Operating Expenses                            ($26,000)

Income tax paid                                     ($3,024)

Net Increase in cash and

cash equivalents                                     $7,776

Add: Opening Cash and

cash equivalents                                     $2,000

Closing Cash and cash equivalents       $9,776

Weighted Average cost flow Assumption

Income Statement  

Sales (2,040 × $40)                                   $81,600

Less: Cost of goods sold                         ($44,880)

Gross Profit                                               $36,720

Less: Operating Expenses                       ($26,000)

Income before income taxes                   $10,720

Less: Income tax (30% × $10,720)           ($3,216)

Net Income                                                $7,504

Balance Sheet  

Assets  

Cash                                                           $9,584

Inventory                                                   $3,520

Total Assets                                              $13,104

Liabilities and Stockholder's Equity

Common Stock                                         $2,500

Retained Earnings                                     $10,604

Total Liabilities and Equity                       $13,104

Working note

Cash = opening + Sales - Purchases payment - Operating expenses - Income tax expenses )

= $2,000 + $81,600 - $44,800 - $26,000 - $3,126

= $9,584

Retained earning = (Opening + Net Income)

= $3,100 + $7,504

= $10,604

Statement of Cash Flows

Cash Flow from Operating Activities

Cash Sales                                       $81,600

Payment to Accounts Payable      ($44,800)

Operating Expenses                       ($26,000)

Income tax paid                               ($3,216)

Net Increase in cash and

cash equivalents                              $7,584

Add: Opening Cash and

cash equivalents                            $2,000

Closing Cash and

cash equivalents                               $9,584

8 0
3 years ago
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