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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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Swifty Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product i
Bumek [7]

Answer:

See below

Explanation:

Assembled product

Cost = $24 + $20 = $44

Selling price = $69

Profit = $69 - $44 = $25

Unassembled product

Cost = $24

Selling price = $56

Profit = $56 - $24 = $32

Therefore, Swifty corporation should sell before assembly, the company will be better off by $7

5 0
2 years ago
A competitive firm currently produces and sells 7,500 units of output at a price of $2.50 per unit. The firm's average fixed cos
saveliy_v [14]

Answer:

A. $-2,250

B. The firm should continue to operate in the short run because price is greater than average variable cost

C.The firm should exit in the long run because it is making losses

D. In the long run, prices would increase because in a competitive firm, price must equal average cost. As firms exit the industry, supply would fall and this would lead to an excess of demand over supply. As a result, price would rise

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

Profit = Total revenue - Total cost

( $2.50 -  $2.80) × 7,500 = $-2,250

The firm is earning a loss

A firm should shutdown in the short run if price is less than average variable cost.

Average variable cost = average total cost- average total cost

 $2.80 - $0.75 = $2.05

2.50 > 2.05 so the firm should continue to operate in the short run.

The firm should exit in the long run because it is making losses

In the long run, prices would increase because in a competitive firm, price must equal average cost

I hope my answer helps you.

3 0
3 years ago
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $46,4
diamong [38]

Answer:

$5300

Explanation:

Contribution margin for Division B = Sales * Contribution margin ratio

= $243,000 * 20%

= $46,800

Total contribution margin = Division A + Division B

= $46,400 + $46,800

= $93,200

Contribution margin $93,200

Less : Traceable fixed expenses $51,100

Less : Common fixed expenses (plug) $5300

Net operating income $33,800

5 0
3 years ago
sharp screen films, inc., is developing its annual financial statements at december 31, current year. the statements are complet
gavmur [86]

Financial statements are written records that outline a company's operations as well as its financial success. Government organizations, accounting firms, and other entities frequently audit financial statements to assure their accuracy and for reasons related to taxes, financing, or investment. The balance sheet, income statement, cash flow statement, and statement of changes in equity are the four basic financial statements used by for-profit organizations. Nonprofit organizations employ a comparable but distinct set of financial statements.

                                                              SHARP SCREEN FILMS, INC.    

                                                                Statement of Cash Flows    

                                    For the Year Ended December 31, Current year

Cash flows from operating activities:          

Net income                                                                 46050      

Adjustments to reconcile net income to net cash provided by operating activities:          

Depreciation expense                                 13650        

Decrease in accounts receivable                  7200        

Increase in merchandise inventory         -4850        

Decrease in accounts payable               -10200        

Decrease in wages payable                            -400            5400      

                                                                                     51450      

Net cash provided by operating activities          

Cash flows from investing activities:          

Cash payments to purchase fixed assets -58950        

Net cash used in investing activities                              -58950      

Cash flows from financing activities:          

Cash payments on long-term note          -10900        

Cash payments for dividends                 -13950        

Cash receipts from issuing stock                  33400        

Net cash provided by financing activities                         8550      

Net increase in cash during the year                                 1050      

Cash balance, January 1, current year                                 63900      

Cash balance, December 31, 2015 current year                64950      

Financial information is used by analysts and investors to assess a company's performance and forecast the course of its stock price in the future. The company's annual report, which includes its financial statements, is among the most significant sources of trustworthy and audited financial data.

Investors, market analysts, and creditors analyze the financial statements to assess the strength of a company's finances and future profits potential. The statement of cash flows, income statement, and balance sheet are the three main financial statement reports.

Learn more about financial statements here

brainly.com/question/24296949

#SPJ4

4 0
2 years ago
The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would ca
alex41 [277]

its not b. the periods net income to be understated

7 0
2 years ago
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