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2 years ago

On January 1, 2020, Novak Corp. had inventory of $56,500. At December 31, 2020, Novak had the following account balances.

Business

1 answer:

salantis [7]2 years ago

6 0

Answer:

Gross Profit ⇒ $296,500

Operating expenses ⇒ $153,500

Explanation:

Gross Profit;

= Net sales - Cost of Goods sold

Net sales = Sales revenue - sales discounts - sales returns and allowances

= 807,000 - 6,000 - 10,900

= $790,100

Cost of Goods sold

= Opening balance + Purchases + Freight-in - Purchase discounts - Purchase returns and allowances -closing balance

= 56,500 + 509,500 + 4,800 - 8,000 - 2,700 - 66,500

= $493,600

Gross Profit = 790,100 - 493,600

= $296,500

Operating Expense

Net Income = Gross profit - operating expenses

143,000 = 296,500 - operating expenses

Operating expenses = 296,500 - 143,000

= $153,500

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olga_2 [115]

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Informal letters are non-public letters that might be written to allow your buddies or own circle of relatives to realize approximately what goes on in your lifestyle and to bring your regards. A casual letter is typically written to an own circle of relatives member, a near acquaintance, or a friend. The language utilized in a casual letter is informal and non-public.

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7 0

8 months ago

Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that hi

tangare [24]

Answer:

The correct option is B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits.

Explanation:

Note: This question is not complete because some important figures and points are missing in it. These figures and points are therefore provided to complete the question before answering it as follows:

Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that his marginal benefit from an additional soft drink is $100 and his marginal benefit from an additional slice of pizza is $110. If the price of a soft drink is $2 and the price of a slice of pizza is $3, is Charley maximizing his total benefits?

A. No, he should increase his consumption of both goods.

B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits.

C. Yes, there is no other consumption choice that will make his total benefits greater.

D. No, he should shift consumption toward pizza and away from soft drinks to maximize total benefits.'

The explanation of the answer is now provided as follows:

Under utility maximization theory, the condition for the utility or benefit maximization for two goods is as follows:

MBs / Ps = MBp / Pp ……………………………. (1)

Where:

MBs = Marginal benefit from an additional soft drink = $100

MBp = Marginal benefit from an additional slice of pizza =$110

Ps = Price of a soft drink = $2

Pp = Price of a slice of pizza = $3

Subtitling the relevant values, we have:

MBs / Ps = Marginal utility per dollar spent on soft drinks = $100 / $2 = 50

MBp / Pp = Marginal utility per dollar spent on soft pizza = $110 / $3 = 36.67

This implies that 50 = MBs / Ps > MBp / Pp = 36.67

The decision rule is that the limited money income should be spent by a consumer on the good which gives the higher marginal utility per dollar in order to maximize marginal benefit.

Since 50 = MBs / Ps > MBp / Pp = 36.67 above, this implies that Charley is NOT maximizing his total benefits. To maximize his total benefits, Charley should consume more of soft drinks and less of pizza until the condition is consistent with equation (1).

Therefore, the correct option is B. No, he should shift consumption toward soft drinks and away from pizza to maximize total benefits.

7 0

2 years ago

Wendell Company provided the following pertaining to its recent year of operation:â€¢ Common stock with a $10,000 par value was

den301095 [7]

Answer:

Option (D) $27,000

Explanation:

Data provided in the question:

Cash dividends declared = $20,000

Dividends paid = $15,000

Net income = $70,000

Market value of the stock dividend = $23,000

Treasury stock = $9,000

Selling cost of the treasury stock = $7,000

Now,

Retained earnings increase during the recent year of operation will be

= Net income - Cash dividends declared - Market value of the stock dividend

= $70,000 - $20,000 - $23,000

= $27,000

Hence,

Option (D) $27,000

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3 years ago

A normal profit is:______

katen-ka-za [31]

Answer:

b. revenues minus accounting and opportunity costs.

Explanation:

A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit

The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.

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3 years ago

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3 years ago