6. Make revenue forecast for Pacific Shoes for 2020
based on historical data if the company generated the following
revenues for the last five years. Also, calculate the forecast
error, draw a graph with the actual and the regression line revenue
by year, and show the forecast error on the graph.
Year 2015 2016 2017 2018 2019
Revenue (Million $) 52 58 62 59 66
In: Statistics and Probability
Received $10000 cash from a customer invoiced 2 months ago. The journal entry to record the transaction is:
Select one:
a. debit, cash $10000 and credit, accounts receivable $10000.
b. debit, cash $10000 and credit, revenue $10000.
c. debit, accounts receivable $10000 and credit, revenue $10000.
d. debit, revenue $10000 and credit, cash $10000.
In: Accounting
1B.Write on the differences between the following terms
|
Public accounts- |
Private accounts- |
|
Government accounting |
Commercial accounting- |
|
Cash accounting basis |
Accrual accounting basis |
|
Revenue |
Income |
|
Tax revenue |
Non-tax revenue |
|
The executive |
The legislative |
|
Government budget |
Incremental budget |
|
Recurrent expenditure |
Capital expenditure |
|
Internal audit |
External audit |
|
IPSAS 1 |
IAS 1 |
In: Accounting
Q) Monopoly
Demand: P = 32 - Q
Marginal revenue: 32-2Q
Average total cost = ATC = 2/Q + Q
Marginal Cost: MC = 2Q
Draw a graph showing MC, MR, demand, and ATC. Illustrate this firm's revenue, cost, and profit in your graph. Then explain why the marginal revenue lies below the demand curve in a monopoly.
In: Economics
Which of the following is correct? If the demand for a product is inelastic, a change in price will cause total revenue to change in the opposite direction. If the demand for a product is inelastic, a change in price will cause total revenue to change in the same direction. If the demand for a product is inelastic, a change in price may cause total revenue to change in either the opposite or the same direction. The price elasticity coefficient applies to demand, but not to supply.
In: Economics
An industry's inverse demand was PD = 20 - 0.1Q and its inverse supply was PS = 4 + 0.1Q.
a. Calculate the consumer surplus, producer surplus, government revenue and deadweight loss for taxes of $4, $8, $12 and $16 per unit sold.
b. Graph government revenue and deadweight loss as functions of these tax rates.
c. What tax maximizes government revenue?
In: Economics
An industry's inverse demand was P^D = 20 - 0.1Q and its inverse supply was P^S = 4 + 0.1Q.
Calculate the consumer surplus, producer surplus, government revenue and deadweight loss for taxes of $4, $8, $12 and $16 per unit sold.
Graph government revenue and deadweight loss as functions of these tax rates.
What tax maximizes government revenue?
In: Economics
What is a single-price monopoly’s total economic profit at eleven units if it makes $10 per unit profit when it produces ten units of output, where the marginal revenue of the eleventh unit is $55 and the marginal cost is $60?
| a. | $75 | b. | $85 |
|---|---|---|---|
| c. | $80 | d. | $95 |
If a single-price monopolist is currently maximizing profits, what can be concluded?
| a. | She is producing where marginal revenue equals average cost. | b. | She has reduced the difference between marginal revenue and marginal cost to zero. |
|---|---|---|---|
| c. | She is maximizing total revenue and marginal revenue. | d. | She is maximizing total revenue and minimizing total cost. |
A monopolist’s rent-seeking activity does not involve the cost of hiring _________.
| a. | corporate lawyers | b. | labor union |
|---|---|---|---|
| c. | lobbyists | d. | researchers |
Which of the following is a reason why a closed monopoly experiences high costs and inefficiency?
| a. | It sells an inferior good. | b. | It is unable to secure sufficient resources. |
|---|---|---|---|
| c. | It pays too much for labor. | d. | It has the additional costs of rent seeking. |
In: Economics
A. Complete a flexible budget for 20,000 units produced. Use the following information at a production level of 15,000 units to complete the flexible budget:
|
Budgeted units |
15,000 |
|
Revenue |
$1,500,000 |
|
Expenses: |
|
|
Wages and Salaries ($200,000 + $10Q) |
$350,000 |
|
Utilities (variable) |
$300,000 |
|
Depreciation (fixed) |
$200,000 |
|
Total expenses |
$850,000 |
|
Net operating income |
$650,000 |
Q = units produced
|
Budgeted units |
20,000 |
|
Revenue |
|
|
Expenses: |
|
|
Wages and Salaries ($200,000 + $10Q) |
|
|
Utilities (variable) |
|
|
Depreciation (fixed) |
|
|
Total expenses |
|
|
Net operating income |
B. Calculate the activity variances and the revenue and spending
variances using the information from #1 above and the following
actual cost results at 20,000 units produced:
|
Actual Units |
20,000 |
|
Revenue |
$1,950,000 |
|
Expenses: |
|
|
Wages and Salaries |
$410,000 |
|
Utilities |
$395,000 |
|
Depreciation |
$207,000 |
|
Total expenses |
$1,012,000 |
|
Net operating income |
$938,000 |
|
Actual Units |
Actual Results |
Revenue & Spending Variances |
Flexible Budget |
Activity Variances |
Planning Budget |
|
Revenue |
|||||
|
Expenses: |
|||||
|
Wages and Salaries |
|||||
|
Utilities |
|||||
|
Depreciation |
|||||
|
Total expenses |
|||||
|
Net operating income |
In: Accounting
Presented below is the trial balance of the Oriole Golf Club, Inc. as of December 31. The books are closed annually on December 31. ORIOLE GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31 Debit Credit Cash $16,790 Accounts Receivable 14,900 Allowance for Doubtful Accounts $1,200 Prepaid Insurance 8,950 Land 354,100 Buildings 120,000 Accumulated Depreciation-Buildings 38,400 Equipment 196,200 Accumulated Depreciation-Equipment 91,560 Common Stock 394,700 Retained Earnings 143,255 Dues Revenue 189,200 Green Fees Revenue 5,655 Rent Revenue 16,500 Utilities Expenses 59,120 Salaries and Wages Expense 81,950 Maintenance and Repairs Expense 28,460 $880,470 $880,470 Collapse question part (a) Enter the balances in ledger accounts. Cash Accounts Receivable Allow. for Doubtful Accts. Land Buildings Accum. Depr.—Buildings Equipment Prepaid Insurance Common Stock Retained Earnings Dues Revenue Green Fees Revenue Rent Revenue Utilities Expenses Salaries and Wages Expense Maintenance and Repairs Expense Accum. Depr.—Equipment
In: Accounting