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3 years ago

Which of the following scenarios would indicate that a nation's economy is entering the recovery phase of the business cycle?

1 answer:

3 0

After sales figures increase for several months, economic data indicates that retailers are hiring new workers to satisfy increased demand.

All of the other options would show concerning economic signs, not signs of recovery. Recovery happens when there is an upturn in the economy, more hiring and better sales.

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A company purchased factory equipment on April 1, 2021 for $175000. It is estimated that the equipment will have a $25000 salvag

bija089 [108]

Answer:

b. $11250

Explanation:

Capitalized Cost of Equipment = $175,000

Life of Assets = 10 years

Residual value = $25,000

Depreciable value = Cost - Salvage value

Depreciable value = $175,000 - $25,000

Depreciable value = $150,000

Depreciation per year = Depreciable value / Life of assets

Depreciation per year = $150,000/10 years

Depreciation per year = $15,000

Depreciation from April to December 2021 = $15,000*9/12

Depreciation from April to December 2021 = $11,250

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2 years ago

Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.

Firdavs [7]

Answer:

A. Current Ratio= 2.63

B. Acid-Test Ratio = 1.44

C. Debt to Assets Ratio 51.16%

D. Return on assets 5.81%

Explanation:

a. Calculation forn Current Ratio

First step is to Calculate the Total Current Assets

Cash 40,000

Receivables 75,000

Inventory 95,000

Total Current Assets 210,000

Now let calculate Current Ratio

Current Ratio= Current Assets / Current Liabilities

Current Ratio=210,000/80,000

Current Ratio= 2.63

b Calculation for Acid-Test Ratio

Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities

Acid-Test Ratio =(210,000-95,000)/80,000

Acid-Test Ratio =115,000/80,000

Acid-Test Ratio = 1.44

c. Calculation for Debt to Assets Ratio

First step is to calculate total Debt

Accounts payable 80,000

Mortgage payable 140,000

Total Debt 220,000

Now let calculate the Debt to Assets Ratio

Debt to Assets Ratio= Total Debt/ Total Assets

Debt to Assets Ratio=220,000/430,000

Debt to Assets Ratio= 51.16%

d. Calculation for Return on assets

Return on assets= Net Income/ Average Assets

Return on assets=25,000/430,000

Return on assets 5.81%

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3 years ago

Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the

VashaNatasha [74]

Answer: The correct answer is "B. $10,000; 4%; four years".

Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is $10000, the coupon rate is 4%, and the term of this bond is four years.

Explanation: The maturity of the bond is at 4 years.

Its future value or face value is 10000.

The coupon rate is equal to $\frac{Cupon}{Face value}$ x 100

So Coupon rate = $\frac{400}{10000}$ x 100 = 4%

4 0

3 years ago

Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for t

Mars2501 [29]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit is $8.

Purchases

Jan. 10: 5,000 units at $9= $45,000

Jan. 18: 6,000 units at $10= $60,000

Totals= 11,000 units for $105,000

Sales:

Jan. 5: 3,000 units

Jan. 12: 2,000 units

Jan. 20: 4,000 units

Total= 9,000 units

8,000 units were on hand at the end of the month.

1) FIFO (first-in, first-out) Periodic system

COGS= 6000*8 + 3000*9= $75,000

Inventory= 2000*9 + 6000*10= $78,000

2) LIFO (last-in, first-out) Periodic system.

COGS= 6000*10 + 3000*9= $87,000

Inventory= 6000*8 + 2000*9= $66,000

3) LIFO, Perpetual system.

COGS= 3,000*8 + 2,000*9 + 4,000*10= $82,000

Inventory= 3,000*8 + 3,000*9 + 2,000*10= $71,000

4) Weighted average; Periodic system.

Price= (8+9+10)/3= 9

COGS= 9,000*9= $81,000

Inventory= 8,000*9= $72,000

5) Weighted average, perpetual system

COGS= 3,000*8 + 2,000*8.5 + 4,000*9= $77,000

Inventory= 8,000*9= $72,000

4 0

3 years ago

Read 2 more answers

Explain why monopolies do exist?

ANEK [815]

Answer:

When one company exerts sole control over a resource that is necessary for the production of a specific product, the market may become a monopoly.

Explanation:

This is because you can control companies if you are the only place available for a resource for example water in dry contents

6 0

3 years ago