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Karo-lina-s [1.5K]
3 years ago
13

Price and Output data over a five year period for an economy that produces only one good. Assume that year 2 is the base year. Y

ear Units of Output Price per unit 1 8 $2 2 10 3 3 15 4 4 18 5 5 20 6 Refer to the above data. In year 4, nominal GDP would be:
Business
1 answer:
olasank [31]3 years ago
7 0

Answer:

$90

Explanation:

Nominal GDP is GDP calculated using current year prices.

Nominal GDP = current year prices x unit of output

18 x $5 = $90

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

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The management at Mova Autos Inc. has realized that the company's sales have started to decline due to increasing competition. T
V125BC [204]

Answer:

Implementation of Idea (DO)

Explanation:

According to PDCA the first phase is the planning and the next one is doing that what we have planned. The third one is Check which means continuously monitoring the execution of the plan. And the last one is Act which means that the control must be emphasized on the execution to correct the discrepancies found.

The Company has completed the first phase and is recommended to complete the second one which is that the company must do whatever it has planned for the better future of company.

3 0
3 years ago
Recently, Pfizer and Allergan – the makers of Viagra and Botox, respectively – initiated a $160 billion merger. Pharmaceutical c
Lilit [14]

Answer:

Lerner index for Botox = 0.9

Explanation:

The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P

Lerner index for Botox = ($15 - $1.50) / $15 = 0.9

0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.

The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.

3 0
3 years ago
Rosie's flowers company in tulips, ohio, uses an e-commerce software program on its website to allow customers to enter their ow
Anna71 [15]
<span>Rosie's Flowers Company follows a B2C model. This is also known as a business to consumer model. It is when a business has transactions that are directly between the company and the consumers. The consumers are the end users of the products or services.</span>
5 0
3 years ago
Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's firs
miv72 [106K]

Answer:

1) Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.  

Dr Cash 300,000,000

   Cr Common stock 50,000,000

   Cr Additional paid in capital 250,000,000

2) Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2018, wages expense

Dr Wages expense 12,000,000

Dr FICA taxes expense 840,000

   Cr Federal income taxes withheld payable 1,200,000

   Cr State income taxes withheld payable 600,000

   Cr FICA taxes withheld payable 840,000

   Cr FICA taxes payable 840,000

   Cr Wages payable 9,360,000

3) Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years with an interest payment of 5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2018.

Dr Cash 204,000,000

   Cr Premium on bonds payable 4,000,000

   Cr Bonds payable 200,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2018, interest expense

Dr interest expense 766,666.66

Dr Premium on bonds payable 66,666.67

   Cr Interest payable 833,333.33

4) Mason Automotive purchased $80 Million dollars worth of inventory on January 2nd, 2018. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 80,000,000

       Cr Accounts payable 80,000,000      

5) Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 120,000,000

   Cr Cash 20,000,000

   Cr Accounts payable 100,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 1,000,000

   Cr Accumulated depreciation - fixed assets 1,000,000    

6) On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.          

Dr Accounts receivable 50,000,000

   Cr Sales revenue 50,000,000

Dr Cost of goods sold 20,000,000

   Cr Inventory 20,000,000

Adjusting entry:

January 31, 2018, allowance for doubtful accounts (5%)

Dr Bad debt expense 2,500,000

   Cr Allowance for doubtful accounts 2,500,000

7) On January 3, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.        

Dr Cash 75,000,000

   Cr Deferred revenue 75,000,000

Adjusting entry:

January 31, 2019, 4,000 cars were finished and delivered

Dr Deferred revenue 40,000,000

   Cr Sales revenue 40,000,000

Dr Cost of goods sold 32,000,000

    Cr Inventory: finished cars 32,000,000

8) Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a the useful life of 10. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.          

Dr Patent 24,000,000

   Cr Cash 24,000,000

Adjusting entry:

January 31, 2018, patent amortization expense

Dr Patent amortization expense 200,000

   Cr Patent 200,000

9) Mason Automotive purchased $2 Million dollars worth of supplies on account on January 4, 2018.      

Dr Supplies 2,000,000

    Cr Cash 1,500,000

    Cr Accounts payable 500,000

Adjusting entry

January 31, 2018, supplies expense

Dr Supplies expense 500,000

   Cr Supplies 500,000    

10) Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4, 2018.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 2,400,000

   Cr Cash 14,400,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

   Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 200,000

   Cr Prepaid insurance 200,000        

11) On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.

Dr Treasury stock 50,000,000

   Cr Cash 50,000,000

<h2><u>Closing journal entries:</u></h2>

Dr Sales revenue 90,000,000

    Cr Income summary 90,000,000

Dr Income summary 71,006,66.66

    Cr Wages expense 12,000,000

    Cr FICA taxes expense 840,000

    Cr interest expense 766,666.66

    Cr Depreciation expense 1,000,000

    Cr Cost of goods sold 52,000,000

    Cr Bad debt expense 2,500,000

    Cr Patent amortization expense 200,000

    Cr Supplies expense 500,000

    Cr Rent expense 1,000,000

    Cr Insurance expense 200,000

Dr Income summary 18,993,333.34

    Cr Retained earnings 18,993,333.34

8 0
3 years ago
A fillorkill order will be A. will be cancelled at the end of the trading day if not executed by that time. B. executed immediat
katen-ka-za [31]

Answer:

D) will be cancelled if not immediately executed at the stated price or better.

Explanation:

A Fill-Or-Kill order can be regarded as

an order that is been made in order

to buy/sell a stock and it must be executed in entirety and immediately. If not executed immediately the order might be cancelled since partial Execution is not part of the process of Fill-Or-Kill order. It should be noted that A fillorkill order will be cancelled if not immediately executed at the stated price or better.

4 0
2 years ago
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