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elixir [45]
3 years ago
10

Infinity Clock Company prepared the following static budget for the​ year: Static Budget ​Units/Volume 5 comma 000 Per Unit Sale

s Revenue $ 7.00 $ 35 comma 000 Variable Costs 1.00 5 comma 000 Contribution Margin 30 comma 000 Fixed Costs 4 comma 000 Operating​ Income/(Loss) $ 26 comma 000 If a flexible budget is prepared at a volume of 6 comma 300 ​units, calculate the amount of operating income. The production level is within the relevant range. A. $ 33 comma 800 B. $ 6 comma 300 C. $ 4 comma 000 D. $ 26 comma 000
Business
1 answer:
aalyn [17]3 years ago
4 0

Answer:

a) Operating income - $33,800

Explanation:

<em>The flexible budget would be prepared for  a different activity level of 6,300 production units but using the assumptions of the fixed budget</em>

                                                                               $

Sales revenue - ($7× 6,300 units  )   :             44,100.00

Less Variable cost -      ($1 ×  6,300 units ) :      <u>( 6,300)</u>

Contribution                                                       37,800

Less Fixed costs                                                <u>(4,000)</u>

                                                                             <u>33,800</u>

<em>Note that the fixed costs of $4000 remains the same for both the static and flexible budgets. This is because the activity level of 6,300 units of the flexible budget remains within relevant range. So the fixed cost would not change.</em>

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Altogether the national, state, and local governments of the United States spend about a __________ of our gross domestic produc
stealth61 [152]

Answer:

According to the OECD the total expenditure of the US government, including state and local is about a 38% of the GDP.

Explanation:

The federal government expends almost the 55% of the total and the remaining 45% the state and local government.

5 0
3 years ago
On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $37,0
ki77a [65]

Answer:

cost of the building = $183,331.14

Explanation:

we have to calculate the present value of all the future annual payments using the 11% discount rate:

$37,000 x 2.4437 (PVIFA, 11%, 3 periods) = $90,416.90

($52,000 x 2.4437) / (1 + 11%)³ = $92,914.24

total present value = $183,331.14

7 0
3 years ago
4)
vova2212 [387]

Answer:

I. The three (3) main functions of money in an economy are;

a. Medium of exchange.

b. Unit of account.

c. Store of value.

II. Liquidity is a characteristic of money.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

I. The three (3) main functions of money all over the world are;

a. Medium of exchange.

b. Unit of account.

c. Store of value.

II. The rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange.

In conclusion, money is a generally accepted medium of exchange around the world and money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.

4 0
3 years ago
Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits o
kogti [31]

Answer:

Explanation:

Oscars Red Carpet Store

Bank reconciliation Statement

Balance as Per Bank Statement  $11,770

<u />

<u>Add back Un-credited checks/deposits</u>

Cash receipts for 26 - 28 Feb $1,500

NSF check $450

Total $1,950

<u />

<u>deduct uncleared check</u>

#325  $450

#327   $1,800

Total $2,250

<u />

<u>Add withdrawals in Bank not in cash ledger</u>

#323 - understated value in cash ledger ($2,800 - $2,400) $400

Automatic withdrawal - rent $1,300

Service Fee (Academy Bank) $120

Total $1,820

<u>Deduct items in Bank not in Cash ledger</u>

Interest earned $190

Titanic Fabrics repayment $5,950

Total $6,140

Adjusted Bank Balance (in line with Cash balance) $7,150

4 0
3 years ago
On January 2, 2018, the first year of operations, Brunswick Corp., issued 15,000 shares of $10 par value common stock for $15 pe
hichkok12 [17]

Answer:

Paid in capital treasury stock = $1,600

Explanation:

Paid in capital treasury stock = (Market value - purchase value) × Number of share reissued.

Given,

Reacquired treasury stock = 2000 shares

As the shares were reacquired for $20,

Reacquired total treasury stock = 2,000 shares × $20 = $40,000

Reissued number of shares = 800

Market price of those treasury stock is $22 per share.

Therefore, paid in capital - treasury stock = $(22 - 20) × 800 shares

Paid in capital - treasury stock = $1,600

6 0
3 years ago
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