What is the functions of a commercial bank? Explain.

The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $18,000),

cluponka [151]

Answer:

The production exhibit both scope economics and scale economics. They are not mutually exclusive.

Explanation:

Looking at the scenario critically, we will clearly see the tendency of a scope economics. Scope economics basically hinges on getting a competitive advantage, essentially because of producing in large quantities and numbers. Riverside Ranger logo T-shirts exhibits this as it produce its products in large numbers, producing 1000 pieces of a particular design in 1 hour.

In same breath, we also have the scale economics exhibited by the organization. Taking a deeper look at the cost representation, we will see that the average cost tend to reduce as the production increases. Thus, an economic of scale is achieved here by leveraging on the mass and swift production style of Riverside Rangers logo T-shirts.

7 0

3 years ago

The goals of most labor unions in the 1930s was the right to organize, in the 1970s to increase worker pay and benefits, in the

german

It can be concluded from the Labor Union goals that changes in the social and economic environment determine the goals of labor in a given period. Thus the First option is correct.

<h3>What is Economic Environment?</h3>

Economic environment refers to the External factors of the economy which affects the working of the Company. For example The rise in the prices of the fertilizer will affect the farmer.

The goal of the labor union defines the changing patterns of the social and the economic environment estimates the aim of the labor in the given period of the time.

Learn more about the Economic environment here:

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8 0

2 years ago

At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubt

Wewaii [24]

Answer:

(a) Prepare the entries to record sales and collections during the period.

Dr Accounts Receivable $ 800,000

Cr Sales $ 800,000

Dr Cash $ 763,000

Cr Accounts Receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts Receivable $ 7,300

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

Dr Accounts Receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

Dr Cash $ 3,100

Cr Accounts Receivable $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

Initial Balance

Dr Accounts Receivable $ 200.000

Cr Allowance for Uncollectible Accounts $ 9.000

During the period, it had net credit sales of $800,000

Dr Accounts Receivable $ 800.000

Cr Sales $ 800.000

Collections of $763,000

Dr Cash $ 763.000

Cr Accounts Receivable $ 763.000

It wrote off as uncollectible accounts

Dr Allowance for Uncollectible Accounts $ 7.300

Cr Accounts Receivable $ 7.300

A $3,100 account previously written off as uncollectible was recovered

Dr Accounts Receivable $ 3.100

Cr Allowance for Uncollectible Accounts $ 3.100

Dr Cash $ 3.100

Cr Accounts Receivable $ 3.100

Assuming 5% of accounts receivable, the journal entry:

Dr Bad Debt Expense $ 20.200

Cr Allowance for Uncollectible Accounts $ 20.200

FINAL Balance

Dr Accounts Receivable $ 229.700

Cr Allowance for Uncollectible Accounts $ 25.000

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessar to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

8 0

3 years ago

Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4, 2020. His father paid $44 per share

Marina86 [1]

Answer:

$6,000 LTCG

Explanation:

Calculation to determine the amount and character of the gain or loss that Monte recognizes

Using this formula

Recognized gain or loss =Amount realized -Basis

Let plug in the formula

Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)

Recognized gain or loss=$54,000-$48,000

Recognized gain or loss=$6,000 LTCG

Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG

6 0

3 years ago

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000,

Tanya [424]

Answer:

a. Year 0 Net Cash Flows = $984,000

b. We have:

Year 1 net operating cash flows = $306,159

Year 2 net operating cash flows = $332,986

Year 3 net operating cash flows = $261,479

c. Additional Year 3- cash flow = $504,877

d. The machine should be purchased.

Explanation:

We start by first calculating the following:

Initial Investment = Base Price + Modification Cost = $940,000 + $25,000 = $965,000

Useful Life = 3 years

Depreciation in Year 1 = 0.3333 * $965,000 = $321,634.50

Depreciation in Year 2 = 0.4445 * $965,000 = $428,942.50

Depreciation in Year 3 = 0.1481 * $965,000 = $142,916.50

Book Value at the end of Year 3 = $965,000 - $321,634.50 - $428,942.50 - $142,916.50 = $71,506.50

After-tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Marginal tax rate = $624,000 – ($624,000 - $71,506.50) * 25% = $485,877

Initial Investment in NWC = $19,000

We can now proceed as follows:

a. What is the Year 0 net cash flow?

Year 0 Net Cash Flows = Initial Investment + Initial Investment in NWC = $965,000 + $19,000 = $984,000

b. What are the net operating cash flows in Years 1, 2, 3?

Year 1 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 1) = ($301,000 * (1 – 0.25)) + (0.25 * $321,634.50) = $306,159

Year 2 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 2) = ($301,000 * (1 – 0.25)) + (0.25 * $428,942.50) = $332,986

Year 3 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 3) = ($301,000 * (1 – 0.25)) + (0.25 * $142,916.50) = $261,479

c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?

Additional Year 3- cash flow = NWC recovered + After-tax Salvage Value = $19,000 + $485,877 = $504,877

d. If the project's cost of capital is 12%, should the machine be purchased?

This can be determined from the net present value (NPV) calculated as follows:

NPV = -$984,000 + ($306,159/1.12^1) + ($332,986/1.12^2) + ($261,479/1.12^3) + ($504,877/1.12^3) = $100,287.71

Since the NPV of the machine of $100,287.71 is positive, the machine should be purchased.

7 0

3 years ago