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3 years ago

Milea Inc. experienced the following events in Year 1, its first year of operations:

Business

1 answer:

Ostrovityanka [42]3 years ago

7 0

Answer:

1. Net income = $35,750

2. Stockholders' equity = $48,200

3. Total assets = Total Equity and Liabilities = $56,300

4. Net cash generated = $47,840

Explanation:

1. Prepare the income statement

Milea Inc.

Income Statement

For the Year ended 31 December Year 1

Details Amount ($)

Revenue:

Service income 45,000

Expenses:

Utility expense (1,150)

Accrued salaries (8,100)

Net income 35,750

Dividend paid (1,050)

Retained earnings  34,700 

2. Prepare the statement of changes in stockholders' equity

Milea Inc.

Statement of changes in stockholders' equity

For the Year ended 31 December Year 1

Details Amount ($)

Common stock 13,500

Retained earnings 34,700

Stockholders' equity  48,200 

3. Prepare the balance sheet as of December 31.

Milea Inc.

Balance Sheet

As of 31 December Year 1

Details $

Assets

Current Assets

Ending cash balance 47,840

Accounts receivable ($45,000 - $36,540) 8,460

Total assets  56,300 

Equity and Liabilities

Stockholders' equity 48,200

Liabilities

Current liabilities

Accrued salaries 8,100

Total Equity and Liabilities  56,300 

4. Prepare the statement of cash flows for the Year 1 accounting period.

Milea Inc.

Statement of Cash Flows

For the Year ended 31 December Year 1

Details $ $

Net income 35,750

Adjustment to reconcile net income:

(Increase) decrease in current assets:

Accounts receivable ($45,000 - $36,540) (8,460)

Increase (decrease) in current liabilities:

Accrued salaries 8,100

Net cash from operating activities 35,390

Cash flow from financing activities:

Common stock 13,500

Dividend paid (1,050)

Net cash from financing activities 12,450

Net cash generated 47,840

Beginning cash balance 0

Ending cash balance  47,840 

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The nations of Pamland and Lillytonia can produce two goods, DVD

vampirchik [111]

Answer:

The best deal would be option B) that is

Lillytonia sells 1/4 bushels of wheat to Pam land and gets 1 DVD player in return.

Explanation:

STEP 1

The output of DVD per unit of labor for Pamland = 150.

The output of Bushels of wheat per unit of labor for Pamland= 300.

The output of DVD per unit of labor for Lillytonia = 200.

The output of Bushels of wheat per unit of labor for Lillytonia= 600.

STEP 2

To calculate the comparative advantage, we use the following formula:

Comparative Advantage = DVD Output / Wheat Output

STEP 3

In Pamland, the opportunity cost, or the comparative advantage, of DVD is

300 / 150 = 2 bushels of wheat.

The opportunity cost of wheat in Pamland is 120/ 300 = 0.5 DVDs.

In Lillytonia the opportunity cost, or comparative advantage, of DVD is 600/200 = 3 bushels of wheat, while

The opportunity cost of wheat in Lillytonia is 200/600 = 1/3 or 0.33333 DVDs

STEP 4

As is clear from the calculations, Pamland should produce more wheat because it has the lower opportunity cost during production 2 against 3 for Lillytonia. Conversly, Lillytonia has the lowest opportunity cost for the production of DVD clocking 1/3 against a higher 1/2 for Pamland.

The countries should therefore trade in such a way that Pamlan is selling it's Wheat while Lillytonia is selling it's DVDs.

STEP 5

Given that Pamland's 2 bushels of wheat will cost it 0.5 DVDs, 4 bushels will thus cost it 1 DVD. It is impracticable (in any case) to have 1/2 of a DVD player.

Cheers

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3 years ago

Advances in technology are constantly changing how people work and conduct business. true or false

Evgen [1.6K]

TRUE. Advances in technology are constantly changing how people work and conduct business.

With the advancement of technology, people are adjusting to maximize the benefits they get from said advances.

For example, before the creation of cellular phones, the means of communication were through mailed letters and telegraphs, then it evolved to land lines, beepers, cellular phones, and finally, the internet (skype, ym, im,etc.)

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4 years ago

Read 2 more answers

The bookkeeper for Mustang Company forgot to make the end-of-the-period adjustment for the interest expense that had accrued dur

yawa3891 [41]

Answer:

C Liabilities are understated, and net income is overstated.

Explanation:

To accrue for interest expense, the required entries are;

Debit Interest expense (p/l)

Credit Accrued Interest (B/s)

Being entries to recognize accrued interest expense.

If this is not posted, liabilities and expenses for the period would be understated. As such, net income would be overstated.

Hence the right answer is C Liabilities are understated, and net income is overstated.

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3 years ago

Match each of the following characteristics or scenarios with either the term negative externality or the term positive external

lawyer [7]

Answer: a. Negative externality

b.Positive externality

c.Positive externality

d.Positive externality

e.Negative externality

Explanation:

Positive externatility are the advantages which the people enjoy apart from the marketplace for which they do not pay any money. Negative externality means negative consequences faced by the people outside due to the activities of the firm.

A.In the scenarios given above when resource are over allocated the public resources are depleted and creates negative externality .

B. Tammy's case by raising garden increases the value of the public property which is positive externality.

C.Market demand is low so prices are low it is positive externality..

D.When resource are under allocated the public resources are not depleted and creates positive externality .

E. Water pollution affects public and creates negative externality . .

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3 years ago

Typically, the average tax rate for a person is ________ his or her marginal tax rate, because the marginal tax rate applies to

creativ13 [48]

Answer:

1. below;

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Explanation:

Given that the average tax rate for individuals is the percentage of income that individuals pay in taxes. While the marginal tax rate applies to a certain part of taxable income, which is usually the last dollar of the income

Hence, Typically, the average tax rate for a person is BELOW his or her marginal tax rate, because the marginal tax rate applies to THE LAST DOLLARS TAXED BUT NOT TO ALL INCOME.

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3 years ago