Answer:
(A) $120,000.
Explanation:
CASH FLOWS FROM OPERATING ACTIVITIES $
Net Income 52,000
<em>Adjustments to reconcile net income to </em>
<em>net cash provided by operating activities: </em>
Depreciation on Fixed Assets 20,000
<em>(Increase) Decrease in Current Assets: </em>
Accounts Receivables 25,000
Inventory 5,000
<em>Increase (Decrease) in Current Liabilities:</em>
Accounts Payable 18,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 120,000
Answer:
1) The GDP deflator for this year is calculated by dividing the - (B) Value of all goods and services produced in the economy this year - using - (B) this year's prices - by the - A) Value of all goods and services produced in the economy in the base year - using - (A) the base year's prices
To calculate the GDP deflator, we divide the nominal GDP for the selected year, by the Real GDP of the base year, and we multiply the result by one hundred.
2) The CPI reflects only the prices of all goods and services - (B)bought by consumers
The CPI is a measure of the change in price of a selected basket of goods and services, usually those goods and services that consumers buy the most, whether they are produced domestically or not.
3) Which does an increase in the price of a Chinese-made car that is popular among U.S. consumers show up in? - (b) CPI
As explained above, the CPI measures the price of goods and services that are commonly bought by consumers. It does not matter if the good is produced in the U.S. or China.
4) Which does a decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees show up in? - (a) GDP Deflator
It shows up in the GDP Deflator because the good is not a common good purchased by consumers. It is a good only consumed by those involved in the tree cutting business.
Answer:
(a) $158,350
(b) $395,050
(c) $79,140
Explanation:
(a) Manufacturing overhead:
= Factory utilities + Depreciation on factory equipment + Indirect factory labor + Indirect materials + Factory manager's salary + Property taxes on factory building + Factory repairs
= $ 13,500 + $12,650 + 48,900 + 70,800 + 8,000 + 2,500 + 2,000
= $158,350
(b) Product costs:
= Total Manufacturing overhead + Direct material used + Direct labor
= $158,350 + $157,600 + $79,100
= $395,050
(c) Period cost:
= Depreciation on delivery truck + Sales salaries + Repairs to office equipment + Advertising + Office supplies used
= 3,800 + 48,400 + 1,300 + 23,000 + 2,640
= $79,140
