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2 years ago

7

Why does a country need to have a comparative advantage in a particular product in order to engage in trade with another country

?

1 answer:

harkovskaia [24]2 years ago

5 0

Answer:

Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers.

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Consider the following account balances (in thousands) for the Peterson Company.

stealth61 [152]

Answer:

<u>Cost Of Goods Manufactured $ 133,000</u>

Explanation:

Peterson Company

Schedule for the cost of goods manufactured

For 2017

Direct Materials (opening Inventory) 21,000

Add Purchases 74,000

<u>Less Ending Inventory (23000)</u>

Materials available for Use 72,000

Add Direct Labor 22,000

Factory Overhead

Indirect Manufacturing Labor 17,000

Plant Insurance 7,000

Depreciation 11,000

<u>Repairs 3000 38,000</u>

132,000

Add Opening WIP 26,000

<u>Less Closing WIP 25,000</u>

<u>Cost Of Goods Manufactured $ 133,000</u>

7 0

3 years ago

Morgan Sondgeroth Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations

stepan [7]

Answer:

Part A) Book Value = $1,080,000

Part B) Book Value = $1,050,000

Explanation:

Part 1: To compute the book value of the common stock at December 31, 2020

To do this, we consider both the preferred and common stock values as follows:

Stockholder's equity:

<u>Preferred Stock = $500,000</u>

<u>Common stock = $750,000</u>

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

<u>Remaining earnings for available to common share holders </u>

= Retained earnings balance- dividend paid to prferred stock holders.

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears

= $500,000- $120,000

= $380,000

<u>Book Value of Stockholders' equity</u>

Common Stock equity + Balance of retained earnings

= $700,000 + $380,000

= $1,080,000

The book value per share = $1,080,000/ outstanding shares

= $1,080,000/750,000= $1.44

Part 2: To compute the book value of the common stock at December 31, 2020 Preference stock has liquidating value of $106 per share

Stockholder's equity:

<u>Preferred Stock = $500,000</u>

Preferred stock liquidating premium = (106-100) x 5000

= $6 x 5000= $30,000

<u>Common stock = $750,000</u>

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

<u>Remaining earnings for available to common share holders </u>

= Retained earnings balance- net losses from previous years - dividend paid to prferred stock holders - liquadating premium to preferred stock

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears - liquidating

= $500,000- $120,000- $30,000

= $350,000

<u>Book Value of Stockholders' equity</u>

Common Stock equity + Balance of retained earnings

= $700,000 + $350,000

= $1,050,000

The book value per share = $1,080,000/ outstanding shares

= $1,050,000/750,000= $1.4

6 0

3 years ago

Khadimally, Incorporated, expects sales of $763,500 next year. The net profit margin is 5.3 percent and the firm has a dividend

Nutka1998 [239]

Based on the expected sales, net profit margin, and dividend payout ratio, the projected increase in retained earnings for Khadimally Inc, is $33,181.71.

<h3>What is the projected increase in retained earnings?</h3>

First find the expected profit:

= Sales x Net profit margin

= 763,500 x 5.3%

= $40,465.50

The projected increase is:

= 40,465.50 x (1 - 18%)

= $33,181.71

Find out more on retained earnings at brainly.com/question/25998979.

3 0

2 years ago

Problem 8-15 Comparing Investment Criteria [LO 1, 3, 4, 6] Consider the following two mutually exclusive projects: Year Cash Flo

stiks02 [169]

Answer:

Payback period (A) is 3.44 years

Payback period (B) is 2.39 years

Explanation:

Cash Flow (A) –$428,000; $42,500; $63,500; $80,500; $543,000

Cash Flow (B) –$41,500; $20,700; $13,000; $20,100; $16,900

The payback period will note consider discounting rate, thus we do manual counting till the cash flow equal to zero (0)

Payback period = Number of Years immediately preceding year of break-even + (investment - cashflow of Years immediately preceding year of break-even)/ cashflow of year break- even

Project A will be break even in Year 4, then

Payback period (A) = 3 years + ($428,000 - ($42,500+$63,500+$80,500))/ $543,000 = 3.44 years

Project B will be break even in Year 3, then

Payback period (B) = 2 years + ($41,500 - ($20,700+$13,000))/$20,100 = 3.44 years = 2.39 years

8 0

3 years ago

Darian expects to get 7,500 in grants each year. What is the minimum amount he should expect to contribute for four years at the

Mamont248 [21]

The answer is B. $91,500.

8 0

3 years ago