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Ghella [55]
2 years ago
6

Nation Furniture is a furniture manufacturing facility. Its workers just signed a two-year contract. The price level in the econ

omy has increased.
a. If the price level increases, input prices will:_____.
a) increase.
b) decrease.
c) remain constant.
b. If the price level increases, output prices will:___.
a) increase.
b) decrease.
c) remain constant.
c. In the short run, the firm will experience a(n):______.
a) increase in economic profits.
b) decrease in economic profits.
c) increase in economic loesses.
Business
1 answer:
Nina [5.8K]2 years ago
6 0

Answer:

  • a. c) remain constant.
  • b. a) increase.
  • c. a) increase in economic profits

Explanation:

a. The workers have just signed a two-year contract which means that in the short run, their wages are fixed to what was agreed to in the contract. Input prices will therefore remain constant.

b. Output prices on the other hand will increase to match the increase in price levels.

c. The company would therefore see an increase in economic profits because they are getting a higher revenue from the increased prices of outputs than they are incurring costs from the constant input prices.

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On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5
Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875.  Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3.  It is annually tested for impairment by comparing the fair value with the carrying value.  

6 0
2 years ago
Quantas Industries sold $300,000 of consumer electronics during January under a one-year warranty. The cost to repair defects un
finlep [7]

Answer:

January 31.

Warranty Expense $18,000  (debit)

Warranty Provision $18,000 (credit)

June 20.

Warranty Provision $183 (debit)

Cash $183 (credit)

Explanation:

There is no option on the customer to take the warranty or not. There this type of Warranty is known as an <em>Assurance Type Warranty</em>.

Assurance type warranties are accounted in terms of the <em>Provision Standards</em> as follows ;

<u>Entry when the warranty is granted</u>

Warranty Expense $18,000  (debit)

Warranty Provision $18,000 (credit)

<em>Being recognition of warranty cost and provision. </em>

Warranty Expense $300,000 × 6% = $18,000

<u>When the Warranty Claim is subsequently received.</u>

Warranty Provision $183 (debit)

Cash $183 (credit)

<em>Being utilization of Provision when the warranty claim is received.</em>

3 0
3 years ago
Suppose the economies of China and India have begun to slow down very rapidly. Based on this scenario
bazaltina [42]

Answer:

The correct answer is C

Explanation:

Economies means the state of the region or the country in relation to the consumption and the production of the services and the goods and also the supply of the money.

If the economies of the India and the China, will be slow down, then the loanable funds as well as the interest rates will increase because the money for liquidity will be negligible which lead to competition among using the money for personal consumption or to delay the consumption through lending the money out.

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At your next meeting with the senior management team, you suggest this, and you're met with a lot of blank looks. The managers d
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Answer and explanation:

Under such a scenario, it is important to highlight that the SWOT analysis is useful to spot the internal Strengths and Weaknesses of the firm as well as the external Opportunities and Threats of the market. The SWOT analysis is a helpful tool that allows companies to understand what their core competencies are as well as the components that need improvement. At the same time, the SWOT analysis gives the firm an idea of what are the sectors of the market that could bring potential profits for the entity and which ones represent potential losses.

7 0
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Zigmanuir [339]

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Other than that, Pareto chart is also commonly used in quality control or searching the highest cause of defects.

5 0
3 years ago
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