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3 years ago

For each of the following events, identify which of the determinants of demand or supply are affected.

Business

1 answer:

sukhopar [10]3 years ago

3 0

Answer:

Identifying the determinants of demand and supply affected by the following events:

a. Engineers develop new automated machinery for the production of electric cars.

Technology

b. People increase their concern for the environment.

Environmental concerns and government regulations

c. An economic boom raises people's wealth.

Income distribution

d. A strike by aluminum workers raises the price of aluminum.

Price of resource

e. The price of gas-powered cars fans.

Price

Explanation:

We can identify the following determinants of supply: resource prices, technology, taxes and subsidies, prices of other related goods, price expectations, and the number of sellers in the market. Similarly, demand determinants include price, income, prices of complementary goods and substitutes, consumers' taste and expectations, etc.

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During 2021, Sysco Corp. had 950,000 shares of common stock and 100,000 shares of 7% preferred stock outstanding. The preferred

solong [7]

Answer:

c. $6.03

Explanation:

Earnings available to common shareholders

Net Income $6,000,000

Less: Preference dividend $200,000

Net Income available to common shareholders $5,800,000

Number of Common shares = 950,000

Equivalent common shares for convertible 5% Bonds = 10,450. [Number of bonds = 2,100,000/1,000 = 2,100 shares. Equivalent common shares = 2,100 * 5 = 10,500 shares]

Weighted average number of common shares outstanding = 950,000 + 10,500 = 960,500

Earnings per share = Earnings available to common shareholders / Weighted average number of common shares outstanding

Earnings per share = $5,800,000 / 960,500

Earnings per share = 6.038521603331598

Earnings per share = $6.04

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3 years ago

Vaughn Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2

vlabodo [156]

Answer:

Anderson Co. 3,100 shares at $18 per share

Munter Ltd. 10,200 shares at $57 per share

King Co. 5,600 preferred stock at $42 per stock

a. Prepare the entry for the security sale on January 15, 2021.

Dr Cash 58,880
Cr Investment in Anderson Co. stock AFS 52,200
Cr Realized gain on stock AFS 6,680

b. Prepare the journal entry to record the security purchase on April 17, 2021.

Dr Investment in Castle's stock AFS 38,160
Cr Cash 38,160

c. Compute the unrealized gains or losses.

unrealized gain = $40,800 (gain in Munter) - $11,200 (loss in King) - $13,960 (loss in Castle) = $15,640

d. Prepare the adjusting entry for Vaughn on December 31, 2021.

Dr Investment in Munter's stock 40,800
Cr Investment in King's stock 11,200
Cr Investment in Castle's stock 13,960
Cr Unrealized gain - other comprehensive income 15,640

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3 years ago

Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.

Step2247 [10]

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

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3 years ago

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