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3 years ago

An Engel curve:________.

Business

1 answer:

creativ13 [48]3 years ago

3 0

Answer:

A. slopes upward for normal goods and downward for inferior goods.

Explanation:

In the case of Engle curve it plots the relationship between income and demand for a good.

In the case of the normal goods, as the income rises the demand also rises while on the other hand in the case of inferior goods, the income rises the demand false

So it sloped upward for the normal goods and slop downwards for the inferior goods

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The most recent financial statements for Hornick, Inc., are shown here (assuming no income taxes): Income Statement Balance Shee

iren2701 [21]

Answer:

The external financing needed is $248.50

Explanation:

For computing the external financing needed, first we have to find out the increase percentage of sales which is shown below:

As the given sales is $8,300 and projected sales is $9,545

So, the increase in percentage = (Projected sales - given sales) ÷ given sales × 100

= ($9,545 - $8,300) ÷ 8,300 × 100

= 15%

Now the projected net income equals to

= Projected sales - projected cost

= $9,545 - $6,313.50

= $3,231.50

The projected cost is computed below

= Cost + (cost × increase in percentage of sales)

= ($5,490 + $5,490 × 15%)

= $6,313.50

It is given that the assets and costs are proportional to sales,

So, the new asset value is = Assets + Assets × increase percentage of sales

= $23,200 + $23,200 × 15%

= $23,200 + $3,480

= $26,680

And, the equity value = Equity + net income

= $14,200 + $3,231.50

= $17,431.50

Plus, the debt is $9,000

The liabilities side = $17,431.50 + $9,000 = $26,431.50

So, the difference would be

= Asset - Liabilities

= $26,680 - $26,431.50

= $248.50

8 0

3 years ago

f there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when Group of ans

solniwko [45]

Answer:

Explanation:

When there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when the MPP of the first factor divided by its price is equal to the MPP of the second factor divided by its price.

The least cost rule evaluated two factors of production. Let's say labor and capital. production at least cost has the requirements that labor’s marginal product divided by its price is equal to capital’s marginal product divided by its price.

6 0

4 years ago

For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect

salantis [7]

Answer:

Debit Credit

A Bonds payable Decrease Increase

b. Unearned Service Revenue Decrease Increase

c. Depreciation Expense Increase Decrease

d. Common Stock Decrease Increase

e. Buildings. Increase Decrease

f. Rent Revenue. Decrease Increase

Explanation:

Debit Credit

A Bonds payable Decrease Increase

Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments.

b. Unearned Service Revenue Decrease Increase

Unearned Service Revenue is a liability account that is used to record advanced collections from clients. In other words, it pertains to revenue already collected but the service has not yet been rendered

c. Depreciation Expense Increase Decrease

Depreciation expense is the amount of depreciation that is reported on the income statement.

d. Common Stock Decrease Increase

Common stock is a security that represents ownership in a corporation.

e. Buildings. Increase Decrease

A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory

f. Rent Revenue. Decrease Increase

Rent Revenue is the title of an income statement account which (under the accrual basis of accounting) indicates the amount of rent that has been earned during the period of time indicated in the heading of the income statement.

7 0

3 years ago

The following information concerns the intangible assets of Epstein Corporation: On June 30, 2021, Epstein completed the acquisi

Fittoniya [83]

Answers:

a. Acquisition of cost of corporation = $2,420,000

Less: Fair value of net identifiable assets = $2,050,000

Cost of good will = $370,000

Note: Goods will is not amortized

b. Cost of patent purchase = $91,200

Legal life = 13 years

Estimated useful life= 8 years

Ammortization = Cost / Estimated useful life

= $91,200/8 years

=$11,400

Ammortization per annum is $11,400

Patent is purchased on 30/6/2021

Calculation of amortization for 6 months periods

Amortization for 6 months (July-December)= $11,400 * 6/12

=$5,700

Note: Amortization should be amortized on basis of their amortized value that is, 8 years.

c. Calculation of amortization cost for franchise

Cost = $250,800

Life=11

Purchased on 1/10/2021

Amortization = Cost / Estimated useful life

= $250,080/11

=$22,800

Amortization per annum is $22,800

Calculation of the amortization for 3 month period=

Amortization of 3 month (Oct-Dec.) = $22,800 * 3/12

=$5,700

d, Journal Entries Debit$ Credit$

Amortization Expenses 5,700

Patent 5,700

(To record the amortization expenses)

Amortization Expenses 5,700

Franchise 5,700

(To record the amortization expenses)

e. Partial Balance Sheet

Assets $ $

Current Assets

Long term Assets

Tangible assets 2,050,000

Intangible assets

Goodwill 370,000

Patent 91,200

Less: Accumulated Depreciation 11,400 79,800

Franchise 250,800

Less: Accumulated Depreciation 22,800 228,000

6 0

3 years ago

Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,500 units ar

Ugo [173]

Answer:

The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be $44850.

Explanation:

For computing the cash disbursement the following equation is to be used which is shown below:

= Sales units × variable selling and administrative expense per unit + Fixed selling and administrative expense - Depreciation

= 3,500 × $4 + $35,850 - $5,000

= $14,000 + $35,850 - $5,000

= $44,850

Since all information is given on month basis, so we don't need to change in year basis as we have to calculate for march monthly only.

Hence, all things is to be considered for computing cash disbursement for march month.

Thus, The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be $44850.

6 0

3 years ago