1. For strategic trade protectionism to be effective, the:
Select one:
a. good in question must be produced with high-tech equipment.
b. supply of the good in question must be elastic.
c. supply of the good in question must be inelastic.
d. good in question must be one of many goods that the country exports.
2. Which statement provides an explanation for tariffs decreasing market efficiency?
Select one:
a. The supply of goods is not purchased by the buyers with the highest willingness to pay.
b. The supply of goods is not produced by the lowest-cost suppliers.
c. Prices are not equal to the equilibrium price.
d. Deadweight loss is equal to zero.
3. History has shown that one of the most effective tools against child labor is:
Select one:
a. regulations.
b. laws.
c. economic growth.
d. quotas.
In: Economics
A partial income statement for a company's most recent fiscal
year follows:
|
Sales |
$400,000 |
|
Inventory, January 1 |
$210,000 |
|
Add purchases |
(a) ____ |
|
Goods available for sale |
(b) ____ |
|
Inventory, December 31 |
235,000 |
|
Cost of goods sold |
(c) ____ |
|
Gross margin |
125,000 |
|
Deduct expenses: |
|
|
Selling |
(d) ____ |
|
Administrative |
(e) ____ |
|
Income before taxes |
(f) ____ |
|
Income taxes |
(g) ____ |
|
Net income |
(h) ____ |
|
Earnings per share (5,000 shares outstanding) |
$2.10 |
Additional data:
Selling expenses are 20 percent of sales, administrative expenses
are 10 percent of cost of goods sold; the income tax rate is 40
percent.
Required:
Supply dollar amounts for blanks a through h. Computations may not
be in the order presented. You do not need to show your work for
the calculations. Part marks will not be awarded.
In: Accounting
A person will decide to take the day off work if the?
person has additional sick days to spare.
marginal cost is less than the marginal benefit.
marginal cost exceeds the marginal benefit.
person can make up the missed work the next day.
Which is not a typical way in which markets differ from one another?
types of goods for sale in a market
days of the week when markets are active
transaction component between buyers and sellers
geographic location of markets
When an economy is producing the mix of goods and services MOST desired by society, that economy is considered to have
productive equitability.
productive efficiency.
allocative equitability.
allocative efficiency.
Capital, as a factor of production, includes all manufactured products that are used to produce other goods.
False
True
In: Economics
If the number employed is 150 million, the prime working-age
population is 190 million, and the number unemployed is 10 million,
the labor force participation rate is 65%, then the unemployment
rate is
21.1%
8.2%.
6.3%
5.3%
can not be determined because we do not know what the labor
participation rate for the actual working age population is.
In the United States, from the first quarter of 2020 to the
second quarter of 2020, assume that real GDP decreases by 2.3%, the
unemployment rate rises from 3.6% to 8% and the CPI index goes from
148 to 134. In such an economic scenario,
The aggregate demand curve must have shifted leftward, moving down
along a short-run aggregate supply curve.
The short-run aggregate supply curve must have shifted leftward,
moving up along the aggregate demand curve.
The aggregate demand curve must have shifted rightward, moving up
along a short-run aggregate supply curve.
The short-run aggregate supply curve shifts rightward, moving down
along the aggregate demand curve.
In: Economics
Problem 16-10 Calculating Cash Collections [LO 3]
|
The following is the sales budget for Segura, Inc., for the first quarter of 2013: |
|
January |
February |
March |
|
|
Sales budget |
$138,000 |
$151,000 |
$163,000 |
|
Credit sales are collected as follows: |
|
65 percent in the month of the sale |
|
20 percent in the month after the sale |
|
15 percent in the second month after the sale |
|
The accounts receivable balance at the end of the previous quarter was $94,000 ($69,000 of which was uncollected December sales). |
|
Required: |
|
(a) |
Compute the sales for November. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
|
Sales |
$ |
|
(b) |
Compute the sales for December. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
|
Sales |
$ |
|
(c) |
Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
|
Cash Collection |
|
|
January |
$ |
|
February |
$ |
|
March |
$ |
References
eBook & Resources
In: Finance
Nakheel is one of the world’s leading property developers, based in Dubai, United Arab Emirates. Nakheel has a portfolio of projects in Dubai across the residential, retail, hospitality and leisure sectors. Master developments include Palm Jumeirah, The World trade Center, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba. In the first quarter of 2017, Nakheel announced its highest annual net profits in the company’s history: AED4.96 billion in 2016 – a 13 per cent increase on the 2015 net profit of AED4.38 billion. Nakheel generated a net profit of AED955 million for the last quarter of 2016 – up 22 per cent on the AED781 million posted for the same period in 2015. All these happened even when real estate market is on lower side.
Explain how mangers take decision under turbulent conditions (risk and uncertainty) which lead to better utilization of resources
In: Finance
Question 3
Mr. Livingstone is concerned about the inventories of bottled coconut water the company has been experiencing because of its limited shelf life. He suspects that it is related to bonus packages that the supervisors receive but is uncertain and does not know how to calculate it. The supervisors of Farm Management and the Processing Unit equally share a 2% bonus based on the income of Saddleback Farms every quarter and the company uses the absorption costing approach to financial statement preparation. He asks for your assistance.
To prepare answers for him, you collect the results of the Coconut water processing activity for the first quarter below.
Budgeted production 108,000 liter
Amount sold 90,000 liters
Selling price $20 per liter
Variable costs $12 per liter
Fixed costs $216,000
Required:Prepare the income statement under both absorption costing and variable costing to show to Mr. Livingstone the impact of each method on the bonus that the supervisors of the units would earn. What recommendation (if any) would you make to Mr. Livingstone?
In: Accounting
Rosewood Guitar, Inc. is preparing it cash receipts schedule for the 1stquarter ending 20x1. In doing so, its budget director prepared the following budgeted sales schedule:
|
Rosewood Guitar Company |
|||
|
Sales Budget |
|||
|
For the Quarter Ending March 31, 20x1 |
|||
|
January |
February |
March |
|
|
Budgeted sales |
$185,000 |
$195,000 |
$225,000 |
Addition Information:
Required
In: Accounting
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:
| Beech Corporation | ||
| Balance Sheet | ||
| June 30 | ||
| Assets | ||
| Cash | $ | 73,000 |
| Accounts receivable | 125,000 | |
| Inventory | 56,000 | |
| Plant and equipment, net of depreciation | 221,000 | |
| Total assets | $ | 475,000 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 82,000 |
| Common stock | 309,000 | |
| Retained earnings | 84,000 | |
| Total liabilities and stockholders’ equity | $ | 475,000 |
Beech’s managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $320,000, $340,000, $330,000, and $350,000, respectively.
All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.
Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.
Monthly selling and administrative expenses are always $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 relates to expenses that are paid in the month they are incurred.
The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.
Required:
1. Prepare a schedule of expected cash collections for July, August, and September.
2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.
3. Prepare an income statement that computes net operating income for the quarter ended September 30.
4. Prepare a balance sheet as of September 30.
Prepare a balance sheet as of September 30.
|
|||||||||||||||||||||||||||||||||||||
In: Accounting
|
Janus Products, Inc. is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Janus Products has had to borrow money during the third quarter to support peak sales of back-to-school materials, which occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter: |
| a. | Budgeted monthly absorption costing income statements for July to October are as follows: |
| July | August | September | October | |||||
| Sales | $ | 45,000 | $ | 75,000 | $ | 55,000 | $ | 50,000 |
| Cost of goods sold | 26,000 | 44,000 | 32,000 | 29,000 | ||||
| Gross margin | 19,000 | 31,000 | 23,000 | 21,000 | ||||
| Selling and administrative expenses: | ||||||||
| Selling expense | 8,700 | 12,700 | 9,000 | 7,800 | ||||
| Administrative expense* | 5,900 | 7,700 | 6,600 | 6,400 | ||||
| Total selling and administrative expenses | 14,600 | 20,400 | 15,600 | 14,200 | ||||
| Net operating income | $ | 4,400 | $ | 10,600 | $ | 7,400 | $ | 6,800 |
| *Includes $2,250 depreciation each month. |
| b. | Sales are 20% for cash and 80% on credit. |
| c. |
Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale. May sales totalled $35,000, and June sales totalled $41,000. |
| d. |
Inventory purchases are paid for within 15 days. Therefore, 50% of a month’s inventory purchases are paid for in the month of purchase. The remaining 50% are paid in the following month. Accounts payable for inventory purchases at June 30 total $14,200. |
| e. |
The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is $20,500. |
| f. | Land costing $4,750 will be purchased in July. |
| g. | Dividends of $1,250 will be declared and paid in September. |
| h. |
The cash balance on June 30 is $8,500; the company must maintain a cash balance of at least this amount at the end of each month. |
| i. |
The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. |
| 3. |
Prepare a cash budget for July, August, and September and for the quarter in total. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments" and "Interest" should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) |
In: Accounting