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3 years ago

Explain how opportunity cost is different for economic goods and free goods

Business

1 answer:

Pepsi [2]3 years ago

5 0

Answer:

The difference is that free goods have exactly zero opportunity cost, because they cost nothing, their price is zero, and their use is non rival, and non excludable, meaning that if a person uses a free good, that person does not prevent any other person from using the good.

Economic goods, on the other hand, are goods that have a price, and that have a cost of production. Besides they are rival and/or exclusionary. The opportunity cost of an economic good varies depending on the good, but it is never zero.

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Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The follo

RUDIKE [14]

Answer:

The correct option is C,$2.25 and $0.00.

Explanation:

The annual preferred shares dividends=20,000*$100*2%=$40,000

In the first year ,dividends of $10,000 paid would go to preferred stockholders while the common stockholders receive nothing.

In the second year,it is imperative to note that the balance of unpaid preferred stock dividends of $30,000 ($40,000-$10,000) would be paid alongside this year preferred dividends.

preferred stock dividends=$30,000+$40,000

However the $45,000 paid is not enough to settle the preferred stockholders,again,the total dividends of $45,000 would be paid to preferred stockholders

preferred stock dividend per share=$45,000/20,000=$2.25

common stock dividend per share is $0

Option C is the correct answer.

5 0

3 years ago

Keyser Beverage Company reported the following items in the most recent year.

sladkih [1.3K]

Answer:

Net cash provided by operating activities = $49,730

Net change in cash during the year = $56,750

Explanation:

CASH FLOWS FROM OPERATING ACTIVITIES $

Net Income 43,490

Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation on Fixed Assets 7,970

(Increase) Decrease in Current Assets:

Accounts Receivables (10,700)

Increase (Decrease) in Current Liabilities:

Accounts Payable 8,970

NET CASH PROVIDED BY OPERATING ACTIVITIES 49,730

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment (9,000)

NET CASH USED IN INVESTING ACTIVITIES (9,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Cash Dividends (5,480)

Issue of notes payable 21,500

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 16,020

NET INCREASE (DECREASE) IN CASH 56,750

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3 years ago

Flint Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capac

ddd [48]

Answer:

Please see the answers below:

Explanation:

Debit: Equipment $912,000

Credit: Notes Payable $912,000

To record purchase of equipment at zero interest bearing note Central Michigan.

Debit: Notes Payable $182,400

Debit: Interest Payable $20,064

Credit: Cash $202,464

To record Cash Payment of 1st year Installment and Interest.

Debit: Notes Payable $182,400

Debit: Interest Payable $20,064

Credit: Cash $202,464

To record Cash Payment of 2nd year Installment and Interest.

Debit: Depreciation Expense $91,200

Credit: Accumulated Depreciation $91,200

To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).

6 0

3 years ago

Craigmont company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead cos

goldenfox [79]

Craigmont company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead costs total $6,710,000. its prime costs total:_Prime Cost = direct material cost + Direct Labor cost

= $ 4900000 + $ 8710000

= $ 13610000

A high price is the entire direct price of production, such as uncooked materials and exertions. indirect charges, along with utilities, supervisor salaries, and delivery costs, are not blanketed in top charges. corporations want to calculate the prime value of each product manufactured to ensure they are generating earnings.

Industry averages propose top charges need to be between fifty five% and 60%. Years in the past, that range might have been as high as sixty five%. however as the costs of a lease, coverage, and items have risen, it is grown to be extra vital to hold that percent quite tight within that variety.

Learn more about prime cost here:

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7 0

2 years ago

This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate of Deposit.She recognized a

olya-2409 [2.1K]

Answer:

a) salary $112,000

Interest income $2,200

Capital gain on stock -

gross income $114,200

capital gains and losses

capital gain 10,500

capital loss 15,300

Net capital loss = 4800

net loss offset on Gross income = 3000

Net Gross income $111,200

capital loss that is carried forward = $1800

b) salary $112,000

Interest income $2,200

Capital gain on stock -

gross income $114,200

CAPITAL LOSSES/GAINS

capital gain 16000

capital loss 15300

Net Capital gain = 700

ADD taxable capital gains on Gross income

c) salary $112,000

Interest income $2,200

gross income $114,200

capital losses/ gains

capital loss 15300

capital loss 17000

Total Capital LOSS = $ 32300

Set off against income = (3000)

Losses carried forward =$29300

Explanation:

Capital losses can be offset on normal Gross income but only up to $3000 per year

6 0

3 years ago