If two companies have exactly the same amount of positive working capital, then which of the following statements is false?

orrugated Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The

Alja [10]

Answer:

$36,000 and $30,000

Explanation:

Corrugated company deals in the production of cardboard boxes

The expected production for each month is 40,000 units

The direct material cost is $0.30 per unit

The manufacturing fixed overhead costs are $24,000 for each month

Therefore, the flexible budget for the production of 40,000 units and 20,000 units can be calculated as follows

Flexible budget for 40,000 units

= 0.30×40,000+24,000

= 12,000+24,000

= $36,000

Flexible budget for 20,000 units

= 0.30×20,000+24,000

= 6,000+24,000

= $30,000

Hence the flexible budget for 40,000 units and 20,000 units are $36,000 and $30,000 respectively

8 0

3 years ago

Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the cha

Kaylis [27]

Answer: Economic choices result in trade-offs.

Explanation:

The chart simply purports to show that when making economic decisions, you will have to accept trade-offs because resources are not infinite.

For instance, in order to expand, you will need to take on more financial risk. In that same vein, in order to serve more people, you will have to divide time between two stalls and might end up closing a stall.

Trade-offs simply have to be made.

7 0

3 years ago

The following information pertains to United Ways, a private voluntary health and welfare organization, for the year ended Decem

bazaltina [42]

Answer:

United Ways

Statement of Activities for the year ended December 31, 20X3:

Without Donor Restrictions

January 1, 20X3 balance $ 3,013.888

Cash from donations 519,000

Computer acquisition (230,000)

Transfer from restricted 119,000

Equipment acquisition (119,000)

Program and supporting services expenses:

Fund-Raising ($250,888)

Public health education (150,100)

Community services (125,900)

Management and general (114,300)

December 31, 20X3 balance $2,661,700 2,661,700

With Donor Restrictions

January 1, 20X3 balance $1,119,688

Earned Investment Income 206,000

Research (152,000)

Transfer to unrestricted (119,000)

Other Research Expenses (39,888)

December 31, 20X3 balance $1,014,800 1,014,800

Donated audit services 16,300

Audit Cost (16,300) 0

Total Change in net assets $3,676,500

Explanation:

a) Data and Calculations:

Balances in net assets at January 1, 20X3:

Without Donor Restrictions

January 1, 20X3 balance $ 3,013.888

Cash from donations 519,000

Computer acquisition (230,000)

Transfer from restricted 119,000

Equipment acquisition (119,000)

Program and supporting services expenses:

Fund-Raising ($250,888)

Public health education (150,100)

Community services (125,900)

Management and general (114,300)

December 31, 20X3 balance $2,661,700

Donated audit services 16,300

With Donor Restrictions

January 1, 20X3 balance $1,119,688

Earned Investment Income 206,000

Research (152,000)

Transfer to unrestricted (119,000)

Other Research Expenses (39,888)

December 31, 20X3 balance $1,014,800

b) United Ways is not a profit-making organization. It is guided by its missions. Therefore, the terms “statement of activities” and “change in net assets” are used instead of “income statement” and “net income.”

7 0

3 years ago

Shahia Company bought a building for $88,000 cash and the land on which it was located for $117,000 cash. The company paid trans

chubhunter [2.5K]

Answer:

Depreciation amount at the end of one year is $10,900

Explanation:

Land is not depreciated because land is assumed to have an unlimited useful life. Building is a long lived assest and it has limited useful lives. Therefore, building is depreciated assets.

The building acquisition cost is = Building transaction value + building transfer costs + Renovation cost

= $88,000 + $4,000 + $25,000

= $117,000

Depreciation value = The building acquisition cost - The residual value

= $117,000 - $8,000

= $109,000

Depreciation amount under the Straight-line method is calculated as below:

Yearly depreciation = $\frac{Depreciation Value}{Useful life}$

= $\frac{109,000}{10}$

= $10,900

6 0

3 years ago

Suppose that prices in the United States rise relative to prices in France. We expect that (on the foreign exchange market) the

mixer [17]

Answer:

Decrease , Increase

Explanation:

Rising prices of goods and commodities in the United States would absolutely lead to a decrease in demand of the US dollars. This is principally due to the fact that, elsewhere, there is an alternative that costs lesser and hence, there would be a shift in sourcing, making the US dollars weakens.

Now, it is established that demand and supply are an inverse relationship. Due to the fact that demand is low, there’ would be an increase in supply of the currency in the foreign exchange market died to tube fact that there has been an increase in supply for it

4 0

3 years ago