Knowledge Check 01 Indicate whether each of the following transactions is classified as a financing, investing, or operating activity: Investing activity Purchase equipment Pay salaries to employees Pay dividends to shareholders Sell goods to customers Receive loan from the bank by signing a note The statement of cash flows: Multiple Choice Presents the financial position of a company at a point in time. Indicates if a company is profitable. Shows the net change in cash over a period of time. Reports the difference between revenues and expenses.
Answers
A financing activity is any activity that involves the acquisition or disposition of long-term debt and/or equity.
Examples of financing activities include obtaining a loan or issuing stock. An investing activity is any activity that involves the acquisition or disposition of long-term assets.
Examples of investing activities include purchasing or selling equipment, investments in stocks and bonds, and real estate transactions. An operating activity is any activity that involves the production and/or distribution of a company's goods and services. Examples of operating activities include sales, purchases, and payroll expenses.
The purchase of equipment is an investing activity. Paying salaries to employees is an operating activity. Paying dividends to shareholders is a financing activity. Selling goods to customers is an operating activity. Receiving a loan from the bank by signing a note is a financing activity.
The statement of cash flows presents the net change in cash over a period of time. It does not present the financial position of a company at a point in time, nor does it indicate if a company is profitable. It does, however, report the difference between revenues and expenses.
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Related Questions
On December 1, Year 1, Childe Company purchased $100,000 of bonds issued by Paperman Company at face value. The bonds mature in ten years. Childe’s intent was to keep the bonds available to sell when cash needs arise in future years. The fair value of those bonds increased to $102,000 on December 31, Year 1. Which of the following statements are correct with regards to this investment? (Select all that apply.) Check All That Apply The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported at their fair value of $102,000 in the balance sheet. The bonds should be reported at their fair value of $102,000 in the balance sheet. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Answers
Answer: A- The bonds should be reported among assets in the balance sheet at December 31, Year 1.
B- The bonds should be reported at their fair value of $102,000 in the balance sheet.
D- An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Explanation:
Welcome to week four did you know there are there were different types of resumes read the following article about the main types of resumes and let me know what you think of them. I am interested to see which will draw you in.
Answers
The choice of resume format depends on your individual circumstances, industry norms, and the specific job you're applying for. It's essential to consider the expectations of potential employers and the impression you want to make.
Chronological Resume: This is the most traditional and widely used format. It lists your work experience in reverse chronological order, starting with the most recent job. It highlights your career progression and is suitable for those with a stable work history.
Functional Resume: This format focuses on your skills and qualifications rather than your work history. It highlights your relevant skills and achievements, making it suitable for individuals with employment gaps, career changes, or limited work experience.
Combination Resume: As the name suggests, this format combines elements of both the chronological and functional resumes. It emphasizes both your skills and work history, providing a comprehensive overview of your qualifications.
Targeted Resume: A targeted resume is tailored to a specific job or industry. It highlights the skills and experiences that are most relevant to the desired position, making it highly effective for showcasing your suitability for a particular role.
Creative/Infographic Resume: These types of resumes incorporate unique and visually appealing designs, graphics, and infographics. They are often used in creative fields where visual presentation is valued.
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On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,950. Inventory purchased during August was $192,730. Net sales for the month of August were $543,500. Assuming the company's typical gross profit ratio is 40%.
Required:
Estimate the amount of inventory destroyed in the flood.
Answers
Answer:
$82,580
Explanation:
We can calculate the estimated amount of inventory destroyed in the flood by deducting the cost of goods sold by the cost of goods available for sale.
DATA
Beginning Inventory = $215,950
Inventory purchased = $192,730
Sales = $543,500
Calculation
Inventory destroyed Iestimated) = Cost of Goods available for sale - Cost of Goods Sold
Inventory destroyed Iestimated) = $408,680 - $326,100
Inventory destroyed Iestimated) = $82,580
Working
Cost of Goods available for sale = Beginning Inventory + Inventory purchased
Cost of Goods available for sale = $215,950 + $192,730
Cost of Goods available for sale = $408,680
Cost of Goods Sold = Sales - Gross Profits
Cost of Goods Sold = $543,500 - ($543400 x 40%)
Cost of Goods Sold = $ 326,100
What main impression do you takeaway from the diversity of economies and challenges which you have read about?
Answers
People who study economics are better able to comprehend their environment. It makes it possible for people to comprehend other people, organizations, markets, and governments, enabling them to better adapt to the challenges and possibilities that arise when circumstances change.
In what ways does economics personally affect you?Both overt and covert ways that economics influence our daily lives are present. From a personal perspective, economics shapes many of the decisions we have to make about our jobs, hobbies, spending, and savings rates. Inflation, interest rates, and economic growth are a few examples of macroeconomic patterns that have an impact on our way of life.
What does studying economics teach you?Supply and demand, perfect and imperfect competition, taxation, international trade, price controls, monetary policy, exchange rates, interest rates, unemployment, and inflation are just a few of the many topics covered in economics classes that help students understand individual markets, the overall economy, and governmental policies.
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Brady Company entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $ 40,000 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $ 30,000 from Ladd on account.
3. Paid $ 4,000 cash for May rent on storage space.
4. Performed computer services worth $ 19,000 on account.
5. Performed computer services for Wharton Construction Company for $ 5,000 cash.
6. Paid Western States Power Co. $ 8,000 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $ 1,300 on account.
9. Received $ 12,000 cash from customers for contracts billed in (4).
Required:
Using the tabular analysis show the effect of each transaction on the accounting equation.
Answers
The effect of each transaction on the accounting equation is to be shown in the attachment below.
The following information should be considered:
In the accounting equation, the total assets should be equivalent to the total liabilities & the shareholder equity. It determined the financial position, performance of the company. It is known as the presentation of the balance sheet.In this way, the accounting equation should be prepared.
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Which of the following is the most
"liquid" asset?
A. currency
B. checking accounts
C. certificate of deposits
Answers
Answer:
A. currency
Explanation:
Answer:
a
Explanation:
I am better at my job than most of the other people who have the same job title agree or disagree
Answers
Disagreed. You cannot say that you are better at your job than others who have the same job title.
How to answer questionnaire questions?While providing the answer to a questionnaire, it is very important that a person would try to be as truthful as possible.
The reason they have to be truthful is so that they would be able to give the best answer that would be useful for the research.
In a question like this, I used disagreed because it is not possible that you have met all of the persons that have the same job description as you do.
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A clothing eCommerce comapny has an Average Order Value of $65. It costs the company $35 to produce the clothes in the average order and $15 to ship it to the customer. What is the Average Order's Gross Profit? * $65 $50 $30 $15
Previous question
Answers
The average order's gross profit for the ecommerce company is $15. The Option D is correct.
What is the calculation for the gross profit?To calculate the average order's gross profit, we will subtract the total cost of producing and shipping the clothes from the revenue generated by the order.
Revenue generated by the order is $65.
The total cost of producing and shipping the clothes is:
= $35 + $15
= $50.
The gross profit of the average order is:
= $65 - $50
= $15.
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on january 1, 2022, janna has a tax basis of $19,250 in her mimikaki stock (mimikaki has been an s corporation since inception). in 2022, janna was allocated $24,250 of ordinary income from mimikaki. what are the amount and character of gain she recognizes from end-of-the-year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution?
a. Mimikaki distributes $10,125 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
b. Mimikaki distributes $20,250 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
c. Mimikaki distributes $30,375 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
d. Mimikaki distributes $40,500 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
Answers
The shareholder's first capital contribution to the S corporation or the initial cost of the shares they acquired is the starting point for calculating stock basis.
Why is stock basis important?In order to appropriately record their distributive shares of profit and loss on their US individual income tax returns, shareholders must keep track of their basis.The shareholder's first capital contribution to the S corporation or the initial cost of the shares they acquired is the starting point for calculating stock basis (the same as a C corporation). Then, depending on the pass-through amounts from the S company, that amount is raised or lowered.Common basis changes include Sec. 179 deductions, charity donations, nondeductible costs, and dividends; common basis increases include capital contributions, regular income, investment income, and gains. Normally, basis adjustments are determined at the conclusion of the corporation's tax year.Given data :
a) At the time of the distribution, Janna's stock basis is 43,500 ( 19,250 original basis plus 24,250 ordinary income allocation). On the distribution, Janna recognizes $0 gain, and the distribution reduces her stock basis to 33,375 ($ 43,500 - $10,125 ).
b) At the time of the distribution, Janna's stock basis is 43500 (33375 original basis plus 20,250 ordinary income allocation). On the distribution, Janna recognizes $ 0 gain, and the distribution reduces her stock basis to 23250 (43500 - 2025 ).
c) At the time of the distribution, Janna's stock basis is 43500 ( 19250 original basis plus 24,250 ordinary income allocation). On the distribution, Janna recognizes 0 gain and the distribution reduces her stock basis to 13125 (43500 - 30,375 ).
d) At the time of the distribution, Janna's stock basis is 43,500 (19250 original basis plus 24,250 ordinary income allocation). On the distribution, Janna recognizes 13125 gain and the distribution reduces her stock basis to 0.
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What are 2 key benefits of budgeting?
Answers
Budgeting allows for effective financial management, empowering individuals and organizations to control their finances, plan for the future, achieve goals, and enhance long-term security.
Budgeting offers several key benefits for individuals, households, businesses, and organizations. Here are two key benefits of budgeting:
Financial Control and Planning: Budgeting provides a framework for financial control and planning.
By setting clear financial goals and allocating resources effectively, individuals and organizations can have better control over their income, expenses, and overall financial situation. Budgeting allows for proactive decision-making, as it helps identify areas of overspending or potential savings, enabling adjustments and course corrections as needed.
It helps in prioritizing expenses, reducing wasteful spending, and ensuring that financial resources are allocated in line with priorities and objectives.
Goal Achievement and Future Security: Budgeting plays a crucial role in goal achievement and future security. By setting specific financial goals, such as saving for a house, education, retirement, or business expansion, budgeting helps individuals and organizations allocate resources towards these goals systematically.
It provides a roadmap for saving and investing, ensuring progress towards long-term objectives. Budgeting also helps in managing debt effectively, reducing financial stress, and building a strong financial foundation for the future.
By establishing savings and emergency funds, budgeting provides a safety net, enhancing financial resilience in case of unexpected events or economic downturns.
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Help!
dancing is considered as labor, capital,land or entrepreneurship?
Answers
Answer:
D. Entrepreneurship
Because 100% it's not a land or a capital. Well, it may be a labor, but mostly it's entrepreneurship.
Hope that helps you
Kate was turned down for a job because of a bad credit report. The creditor is required to give her the name of the credit bureau that supplied the report, according to
the:
Fair Credit Reporting Act.
Fair Credit Billing Act.
Truth in Lending Law.
Equal Credit Opportunity Act
Answers
The creditor is required to give Kate the name of the credit bureau that supplied the report under the Fair Credit Reporting Act (FCRA). The FCRA is a federal law that regulates the collection, use, and disclosure of consumer credit information. Under the FCRA, creditors are required to provide consumers with a copy of their credit report upon request. They are also required to provide consumers with the name and address of each credit bureau that has provided them with a report within the past two years.
The other laws you mentioned are also important, but they do not specifically address the issue of providing consumers with the name of the credit bureau that supplied their report. The Fair Credit Billing Act (FCBA) regulates the billing practices of creditors and credit card companies. The Truth in Lending Law (TILA) requires lenders to disclose certain information to borrowers, such as the annual percentage rate (APR) and the total amount of interest that will be charged on a loan. The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against borrowers on the basis of race, color, religion, national origin, sex, marital status, age, or because they receive income from a public assistance program.
Which scenario would best be resolved using precedent cell tracers?
A. Leon opens an Excel spreadsheet and notices that someone types the wrong formula in cell D12.
B. Leon needs to know which other cells use the contents in D12.
C. Leon opens an Excel spreadsheet and notices a formula in cell D12. He wants to know which other cells in different workbooks use that formula. Leon opens an Excel spreadsheet and notices an error in the formula. The formula is very complex, and Leon cannot find the cells that are identifiers in the formula.
D. Leon opens an Excel spreadsheet and sees a Pivot Table. He notices an error in the formula in one of the cells. The formula is very complex, and Leon cannot find the cells that are identifiers in the formula.
Answers
Which investment option is eligible for tax deductions for calculating the net taxable income?
A. Lottery winnings
B. Alimony received
C. Mortgage interest payments
D. Interest on retirement plans
E. Income from dividends
Answers
Answer:
c
Explanation:
Answer:
c
Explanation:
What is the purpose of blockchain technology?
Answers
The purpose of blockchain technology is to provide a decentralized and transparent system for recording and verifying transactions or information. It is a distributed ledger technology that allows multiple parties to maintain a shared database without the need for a central authority. Overall, blockchain technology provides a robust and secure framework for businesses to enhance security, transparency, efficiency, and trust in their operations, leading to improved processes and better customer experiences.
The main purpose of blockchain technology is to create a distributed and secure ledger of transactions. Some key aspects of blockchain technology include:
Distributed - The blockchain is distributed across a network of computers instead of being stored in a centralized location. This makes it more resistant to data tampering and hacking.
Secure - Blockchain uses cryptographic techniques to ensure the integrity and security of the data. Once a transaction is recorded, it is very difficult to change or hack the data.
Transparent - All transactions recorded on the blockchain are publicly visible to anyone with access to the network. This transparency helps prevent fraudulent activities.
Automatic - Blockchain uses a distributed consensus mechanism to automatically validate transactions. There is no need for a central authority or intermediary.
Immutable - Once a transaction is recorded on the blockchain, it is almost impossible to change. This immutability provides a high degree of certainty for transactions.
The main applications of blockchain technology are:
Digital currency - Blockchain underlies cryptocurrencies like Bitcoin which are decentralized digital currencies.
Financial transactions - Blockchain can be used to record financial transactions in an efficient, secure and transparent manner.
Supply chain management - Blockchain can track materials, payments and documents throughout supply chains.
Smart contracts - Self-executing contracts can be embedded in the blockchain to automatically execute terms of agreements.
Asset registry - Assets like land titles, jewelry, artwork, etc. can be recorded on a blockchain to prove ownership and authenticity.
In summary, the key purpose of blockchain technology is to create an incorruptible digital ledger of data that is distributed across a network. This makes the data secure, transparent and permanent.
Wally's Walleyes wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows of $4,500 in Year 1 and $4,300 in Year 2. The required rate of return is 15 percent. Should the product be introduced? Why or why not?
Answers
The calculated NPV is negative, indicating that the present value of expected cash flows does not exceed the start-up cost of the project. In other words, the project is expected to generate a net loss.
To determine whether Wally's Walleyes should introduce the new product, we can calculate the net present value (NPV) of the project. The NPV measures the present value of expected cash flows, taking into account the required rate of return.
To calculate the NPV, we need to discount the cash flows using the required rate of return (15 percent). The formula for calculating NPV is:
NPV = Cash Flow Year 1 / (1 + Required Rate of Return)^1 + Cash Flow Year 2 / (1 + Required Rate of Return)^2 - Start-up Cost
\(NPV = $4,500 / (1 + 0.15)^1 + $4,300 / (1 + 0.15)^2 - $7,800\)
\(NPV = $4,500 / 1.15 + $4,300 / (1.15)^2 - $7,800\)
NPV = $3,913.04 + $3,537.41 - $7,800
NPV = -$350.55
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what is emergency ?
Answers
Answer:
an emergency is a situation that poses an immediate risk to health , life , property , or environment. most emergencies require urgent intervention to prevent a worsening of that situation
g If the price of a product is $10, variable costs are $2, and fixed costs are $100, what quantity must be purchased in order to break even?
Answers
Based on the various costs described, the amount that should be purchased to break even is 12.5 units.
How to Breakeven.The break even quantity can be found by the formula:
= Fixed cost / ( Selling price - Variable cost)
Solving gives:
= 100 / (10 - 2)
= 12.5 units
In conclusion, 12.5 units must be purchased.
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Innovate ways where you can prove the law of action-reaction.
Answers
The ways where you as a person can prove the law of action-reaction are:
When a player pushes the ball forward with force while holding it, the ball pushes back on the player's hand.Student tugs on desk, which tugs back on student (This is how you can "pull" yourself forward.)How can the law of action and reaction be proven?When a person pushes against a wall (action force), the wall pushes back with an equal and opposing force (reaction force). The Space Shuttle lifts (there is no slingshot involved!) because the hot gases push out hot gases (action force) and exert a force on the Space Shuttle engines (reaction force).
Therefore, it can also be shown through Swimming. With the use of the hands, a forward-swimming individual forces the water to move backward. A response force is created as a result of the action force that the individual is exerting.
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too fast Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about too fast Inc. from this scenario?
Multiple Choice
It has a direct investment in the other firms.
It has an exchange relationship with the other firms.
It has competitive parity with the other firms.
It has a competitive advantage over the other firms.
Answers
The correct answer to the question above is option D. "It has a competitive advantage over the other firms"
Competitive advantage is a factor that allows the company to produce services or goods better or more cheaply that its competitor. A competitive advantage allows the company to generate more sales and revenue compared to its market rivals.There are four competitive advantages:Cost leadershipDifferentiationStrategic allianceDefensive strategyFactors of competitive advantage:Production factorsmarketing factorspersonal and expertise factorsresearch and development and engineeringcorporate resourceLearn more about competitive advantage at: https://brainly.com/question/13091426
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What is the difference between ethnocentrism and patriotism?
Answers
Explanation:
Ethnocentrism is the tendency to look at the world primarily from the perspective of one's own culture while patriotism is love of country; devotion to the welfare of one's compatriots; the virtues and actions of a patriot; the passion which inspires one to serve one's country,.
Usually, the most important consideration when a court determines whether using
copyrighted material without permission constitutes fair use is
A. the quantity and quality of a work copied
B. what the copyright holder intended the work to be used for
C. whether the copyrighted work was a work for hire
D. the impact on the copyrighted work's market value
Answers
D. how it will affect the market value of the copyrighted work.
Can content that has a copyright be used without permission?Quotes from a work may be used in small amounts for purposes including commentary, criticism, news reporting, and research reports under the fair use doctrine of the U.S. copyright statute.
Can a copyrighted work be used without the owner's consent and be justified?There are two kinds of circumstances in which you may be permitted to utilize a protected work without any form of authorization: At the federal level, restrictions and exceptions could apply, allowing you to use the work. Under specified restrictions or permissions that permit particular uses, works may sometimes occasionally be made publicly accessible.
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Libby bought 250 stocks of a company named Xylet last year. Xylet’s total earning for the year is $ 4million and it has 1,000,000 outstanding stocks. What is Xylet’s Earning per share (EPS)?
A.
4
B.
0.04
C.
40
D.
400
Answers
Answer:
4
Explanation:
When the number of competitors in a market is small, and competitors influence each other through production and pricing decisions, a situation known as ________ is created.
Question 1 options:
A)
monopolistic competition
B)
oligopoly
C)
duopoly
D)
pure competition
E)
monopoly
Answers
When there are fewer competitors so that market we called that oligopoly.
The information with respect to the oligopoly is as follows:
In this, there are a few firms that are independent for pricing.Due to this, they have sufficient some kind of market power.Also, the pricing and production decisions should be impacted.Therefore we can conclude that when there are fewer competitors so that market we called that oligopoly.
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The lowest amount a manufacturer can pay factory workers is an example of
an incentive.
a price floor.
a price ceiling.
an elastic service.
Answers
Answer:
The answer to this question is given below in the explanation section.
Explanation:
The correct answer to this question is the price floor.
The Price floor is the lowest amount that is imposed by the government or group-imposed lowest price limit for a product or service. The government uses the price floor to keep prices at a certain level from going to low. So price floors for workers set by the government that the employer should not pay less than the set amount.
while other options are not correct because::
The price ceiling is the high amount set by the government or the by other groups for a product or service.
An incentive is an amount or something that can be given to employees or someone for motivation or encouraging them to do something.
An elastic service is given by amazon to develop and run the application with different tools etc.
Answer:price floor
Explanation:
Click this link to view O'NET's Tasks section for Film and Video Editors.
Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to
O‘NET, what are common tasks performed by Film and Video Editors? Check all that apply.
marketing and selling movies and films to customers
giving direction to actors to make sure they follow scripts
organizing and stringing together raw footage into a whole
determining the audio and visual effects and music needed
reviewing assembled films or edited videotapes
trimming film segments and reassembling segments
Answers
Answer:
3 4 5 6
Explanation:
just did it on edg 2021
The common tasks for Film and Video editors are organizing and stringing together raw footage into a whole, determining the audio and visual effects and music needed, reviewing assembled films or edited videotapes and trimming film segments and reassembling segments.
What is Video editing?
The arranging and alteration of video shots is known as video editing. All video content, including movies, television series, video advertising, and video essays, is organized and presented using video editing.
Post-production is another name for the process of editing videos.
The three main phases of a video are:
Pre-productionproduction, and post-productionThe main objective of editing is to make the video as orderly and fluid as possible. To do this, the editor collaborates with the director, producer, and others.
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The type of rice that holds its shape best after cooking is
Answers
Answer:
parboiled
Explanation:
Parboiled rice (also called converted rice and easy-cook rice) is rice that has been partially boiled in the husk. The three basic steps of parboiling are soaking, steaming and drying.
The government is considering levying a tax of $30 per unit on suppliers of either jeans or allergy medication. The supply curve for each of these two
goods is identical, as you can see on each of the following graphs. The demand for jeans is shown by D, (on the first graph), and the demand for
allergy medication is shown by D. (on the second graph).
Suppose the government taxes jeans. The following graph shows the annual supply and demand for this good. It also shows the supply curve (
S + Tax) shifted up by the amount of the proposed tax ($30 per pair).
On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for jeans. Then use the black
triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.
Answers
The effect of tax on supply is that it increases the cost of production and ultimately the price of the Jeans. This will have the effect of reducing the demand as seen in the graph attached.
What are the effects of Tax of Supply?All things being equal, Tax has a way of reducing supply in the long run, especially in a perfect market.
When taxes are levied on the production of a product that is elastic to price changes (that is changes easily with fluctuations in price according to the laws of demand), demand slows down.
When demand slows down, profit also slows down. This in turn bites back on the amount of taxes that the government is able to make because suppliers are are driven by profit.
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Scott cameras produces digital cameras and has decided to switch from a volume based system to an activity based system.Acott produced 100,000 digital cameras in the most recent quarter and has determined that total activity costs were:$3,000,00 materials cost,$500,000 labor costs,$50,000 inspection costs,and $500,000 packaging costs.It takes 30 minutes of labor to produce each camera,inspection are done for 20 percent of all cameras produced,and cameras packaged individually. What are the rates for each of these activities? a
Answers
The rates for each of the activities in Scott Cameras' switch from a volume-based system to an activity-based system are as follows:
- Materials cost rate: $30 per camera
- Labor cost rate: $10 per minute of labor
- Inspection cost rate: $5 per camera
- Packaging cost rate: $5 per camera
1. Calculate the total activity costs for each activity:
- Materials cost: $3,000,000
- Labor cost: $500,000
- Inspection cost: $50,000
- Packaging cost: $500,000
2. Determine the number of cameras produced in the most recent quarter: 100,000 cameras.
3. Calculate the rate for materials cost:
- Divide the total materials cost by the number of cameras produced:
$3,000,000 / 100,000 = $30 per camera
4. Calculate the rate for labor cost:
- Determine the total labor minutes required to produce all the cameras:
30 minutes per camera * 100,000 cameras = 3,000,000 minutes
- Divide the total labor cost by the total labor minutes:
$500,000 / 3,000,000 minutes = $10 per minute of labor
5. Calculate the rate for inspection cost:
- Determine the number of cameras that require inspection (20% of all cameras produced):
20% * 100,000 cameras = 20,000 cameras
- Divide the total inspection cost by the number of cameras requiring inspection:
$50,000 / 20,000 cameras = $5 per camera
6. Calculate the rate for packaging cost:
- Divide the total packaging cost by the number of cameras produced:
$500,000 / 100,000 = $5 per camera
These rates will be used in the activity-based system to allocate costs based on the specific activities involved in producing the digital cameras.
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NewTech purchases computer equipment for $255,000 to use in
operating activities for the next four years. It estimates the equipment's
salvage value at $20,000. What’s the year end hook value formula ?
Answers
The year-end book value formula for the computer equipment is given as
Year-End Book Value = Cost of Equipment - Accumulated Depreciation
At the end of the fourth year, the year-end book value will be 0
How to calculate Year-end book valueThe year-end book value formula for the computer equipment as
Year-End Book Value = Cost of Equipment - Accumulated Depreciation
To know the accumulated depreciation for each year, use the following formula:
Annual Depreciation = (Cost of Equipment - Salvage Value) / Useful Life
Where the useful life is the estimated number of years the equipment will be used in the business before it is sold or retired.
With 4 years of use, we can calculate the annual depreciation as follows:
Annual Depreciation = ($255,000 - $20,000) / 4
Annual Depreciation = $63,750
Therefore, the year-end book value formula for the computer equipment at the end of each year would be:
Year 1: $255,000 - $63,750 = $191,250
Year 2: $255,000 - ($63,750 x 2) = $127,500
Year 3: $255,000 - ($63,750 x 3) = $63,750
Year 4: $255,000 - ($63,750 x 4) = $0
At the end of the fourth year, the accumulated depreciation will equal the cost of the equipment minus its estimated salvage value, so the year-end book value will be zero.
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