C. When price is too high, people are less willing to purchase the good, so demand is lower when price is higher. (Demand curve is always slopping downwards as a result). As the price is high, producers are more willing to sell their goods (I.e. bonds) which will give them more money per unit good being sold. This will result in Quantity Supplied (Qs) being greater than Quantity Demanded (Qd), and so, there is a surplus of bonds in the market. This will cause a downward pressure to apply on price, so that Qd = Qs eventually.
Hope this helps!
Answer: True
According to the law of demand, the demand for a good increases when its price falls. Thus, when a fruit or vegetable is in season, it is relatively less expensive than in off seasons. Thus, consumers buy more of these seasonal fruits in season. Thus, demand for the good increases when it becomes cheaper.
Thus, the statement is true.
Answer:
1. Damaged or obsolete goods are not counted in inventory if they cannot be sold.
2. If these can be sold… Cost should be reduced to Net Realizable Value
Explanation:
The law relating to the valuation of inventory is that ''inventory should be valued at lower of 'Cost' and 'Net Realizable Value'.
Therefore in the case of damaged or obsolete goods, they have to be eliminated from inventory, otherwise it will lead to overvaluation.
However in the case where these can be sold, They have to be valued at lower of 'cost' or 'salable value', implying that 'Cost' should be reduced to 'Net Realizable Value'
Answer:
B) $952,500
Explanation:
Calculation for how much net income must it earn to meet its capital budgeting requirements and pay the dividend
Using this formula
Net income = Dividends + (Capital budget ×Equity)
Let plug in the formula
Net Income=$400,000+($850,000×65%)
Net Income=$400,000+$552,500
Net Income=$952,500
Therefore how much net income must it earn to meet its capital budgeting requirements and pay the dividend dividend,all while keeping its capital structure in balance is $952,500
Answer:
COGS= $680500
Explanation:
The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.
COGS=Beginning Inventory+Production during period−Ending Inventory
We need to calculate the production during the period.
Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress
Cost of manufactured period= 118,500+ 298,500 + 132,000 + 264,000 - 125,900 =$687,100
COGS= 232,100 + 687,100 - 238,700=$680500
