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2 years ago

Hi guys, i need urgently some help with this question

Business

1 answer:

klasskru [66]2 years ago

4 0

Answer:

Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When comparing investments, the higher the ARR, the more attractive the investment. More than half of large firms calculate ARR when appraising projects.

Explanation:

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The following account appears in the ledger prior to recognizing the jobs completed in January:

Pie

Answer:

A. Dr Finished Goods $560,240.00

Cr Work In Process $560,240.00

B. $76,760.00

Explanation:

A. Preparation of the journal entry to record the jobs complete

First step is to Calculate the amount of total jobs completed

Job 210 182,500.00

Job 224 232,190.00

Job 216 78,300.00

Job 230 67,250.00

Cost of completed jobs 560,240.00

(182,500.00+232,190.00+78,300.00+67,250.00)

Now let prepare the Journal Entry

Dr Finished Goods $560,240.00

Cr Work In Process $560,240.00

B. Calculation to Determine the cost of the unfinished jobs at January 31.

First step is to calculate the work in process Amount

Balance at January 1 85,800.00

Add Direct Materials 115,000.00

Add Direct Labor 140,000.00

Add Factory Overhead 296,200.00

Balance in work in process 637,000.00

Now let determine the cost of the unfinished jobs at January 31

Balance in work in process 637,000.00

Less: Cost of completed jobs 560,240.00

Cost of unfinished jobs on January 31 76,760.00

Therefore the cost of the unfinished jobs at January 31 will be $76,760.00

3 0

3 years ago

problem 08-07 (algo) you are the manager of a monopolistically competitive firm, and your demand and cost functions are estimate

Ad libitum [116K]

Demand function: Q = 48 - 2P

a) 2P = 48 - Q

Therefore the inverse Demand function is

P = 24 - Q/2

b) P = 24 - Q/2

Total Revenue = PQ = (24 - Q/2)*Q

TR = 24Q - Q2/2

MR = differentiating TR with respect to Q

MR = 24 - Q

We know a firm will maximize profit at MR = MC

TC = 6 + 3Q + Q2

MC = 3 + 2Q

Putting MR = MC, we have

24 - Q = 3 + 2Q

24 - 3 = 2Q + Q

21 = 3Q

Q = 21/3 = 7

Q = 7

Putting the value of Q in the equation P = 24 - Q/2

P = 24 - 7/2

P = 24 - 3.5

P = 20.5

Therefore the profit-maximizing output is 7 and the price is $20.5

c) TR = PQ = 20.5*7 = $143.5

TC = 6 + 3Q + Q2 = 6 + 3*7 + 7*7 = 6 + 21 + 49 = $76

Profit = TR - TC = 143.5 - 76 = $67.5

Therefore the firm's maximum profit is $67.5

d) a) entry will occur until profits are zero

In the long run, more and more firms will enter the market and the economic profit will be zero in the long run.

In economics, a Demand function is a graph depicting the connection between the price of a sure commodity and the amount of that commodity that is demanded at that fee. call for curves may be used both for the price-amount courting for a person client, or for all purchasers in a selected marketplace.

Learn more about the Demand function here: brainly.com/question/24384825

#SPJ4

5 0

2 years ago

Fitch Ratings a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA, citing the state's economy and c

Natalija [7]

Answer:

a. Increase the direct costs of the state's debt.

Explanation:

When a bond's rating is downgraded is a signal to the investors that investing in the bond now is riskier than it was prior to the rating downgrade, hence, a perceived higher risk using the risk/return relationship means that the bond issue would have to offer a higher return to entice the investors to invest in the bonds.

As a result, the higher required rate of return translates into a higher direct cost of the state's debt since their interest rate offered has increased

5 0

3 years ago

Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%

Sindrei [870]

Answer:

She lost $754.05.

Explanation:

Giving the following information:

Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%.

<u>The rise in her salary allows her to increase her purchasing power. On the contrary, inflation decreases purchasing power. We need to calculate the differences between both effects and determine whether she can buy more or less.</u>

<u></u>

Increase in salary= 52,000*1.025= $53,300

Inflation effect= 52,000/(1-0.038)= $54,054.05

To maintain her purchasing power, now, she needs to earn $54,054.05.

She lost $754.05.

6 0

4 years ago

The ending balance of accounts receivable was $74,000. Sales, adjusted to a cash basis using the direct method on the statement

denpristay [2]

Answer:

The beginning balance in accounts receivable was: $47,500

Explanation:

Sales reported on the income statement were $385,500, Accounts receivable increased of $385,500 during the period.

Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. The company collected $359,000 from the sales. Accounts receivable decreased of $359,000 during the period.

The beginning balance in accounts receivable = The ending balance of accounts receivable + Accounts receivable decreased during the period - Accounts receivable increased during the period = $74,000 + $359,000 - $385,500 = $47,500

5 0

3 years ago