Questions
On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000. During the...

On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000.
During the year, the company had cash revenue or income of P10,000, cash expenses of
P8,000, paid 3,000 to its creditors, and its owner withdrew P1,000. What are the assets,
liabilities, and owner’s equity at the end of the year?

In: Accounting

In the UK, each household that owns a television pays a compulsory levy that is equivalent...

In the UK, each household that owns a television pays a compulsory levy that is equivalent to $ 233 per year. The total revenue collected, which is over $ 7 billion annually, goes to the British Broadcasting Corporation. Do you think that such a tax is likely to have a substantial excess burden relating to the revenues collected?  *

In: Economics

If government revenues are very elastic with respect to GDP or personal income, what would tend...

If government revenues are very elastic with respect to GDP or personal income, what would tend to happen to government revenue over the course of a business cycle? How would they track growth of income over the long term? How does that make budgeting difficult for state governments that are required to balance their budgets?

In: Economics

Being an elite training camp organizer for Elite football teams winter camps, having state of the...

Being an elite training camp organizer for Elite football teams winter camps, having state of the art facilities, venue and pitches, having a great team handling the camps, please provide a SWOT analyze helping the camp organizer to go over the analyze and improve the efficiency and generate more revenue.

In: Operations Management

How would each of the following events change the equilibrium financial market value of a company?...

  1. How would each of the following events change the equilibrium financial market value of a company? (a)an increase in its cost of production; (b) an increase in its cost of financing; (c) an increase in the market’s discount rate; (d) an increase in its sales revenue; and (e) an increase in its projected future profits.

In: Finance

The following balances were taken from the books of Sheffield Corp. on December 31, 2017. Interest...

The following balances were taken from the books of Sheffield Corp. on December 31, 2017.

Interest revenue $87,000 Accumulated depreciation—equipment $41,000
Cash 52,000 Accumulated depreciation—buildings 29,000
Sales revenue 1,381,000 Notes receivable 156,000
Accounts receivable 151,000 Selling expenses 195,000
Prepaid insurance 21,000 Accounts payable 171,000
Sales returns and allowances 151,000 Bonds payable 101,000
Allowance for doubtful accounts 8,000 Administrative and general expenses 98,000
Sales discounts 46,000 Accrued liabilities 33,000
Land 101,000 Interest expense 61,000
Equipment 201,000 Notes payable 101,000
Buildings 141,000 Loss from earthquake damage 151,000
Cost of goods sold 622,000 Common stock 501,000
Retained earnings 22,000


Assume the total effective tax rate on all items is 34%.

Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.

In: Accounting

Record the following transactions for Novak Corp. in the general journal. (Credit account titles are automatically...

Record the following transactions for Novak Corp. in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

2020
May 1 Received a $40,950, 12-months, 12% note in exchange for Mark Chamber’s outstanding accounts receivable.
Dec. 31 Accrued interest on the Chamber note.
Dec. 31 Closed the interest revenue account.
2021
May 1 Received principal plus interest on the Chamber note. (No interest has been accrued in 2021.)

Date

Account Titles and Explanation

Debit

Credit

May 1, 2020Dec. 31, 2020May 1, 2021

May 1, 2020Dec. 31, 2020May 1, 2021

(To record accrued interest on note.)

May 1, 2020Dec. 31, 2020May 1, 2021

(To close the interest revenue account.)

May 1, 2020Dec. 31, 2020May 1, 2021

In: Accounting

Trial Balance 1. Prepare a trial balance for Kenny's Lawn Service as of September 30, 20--....

Trial Balance

1. Prepare a trial balance for Kenny's Lawn Service as of September 30, 20--. List the accounts in the order of Assets, Liabilities, Owner's equity, Revenue, and Expenses. If an amount box does not require an entry, leave it blank.

The following accounts have normal balances.

Cash $10,000
Accounts Receivable 6,000
Supplies 1,600
Prepaid Insurance 1,200
Delivery Equipment 16,000
Accounts Payable 4,000
Kenny Young, Capital 20,000
Kenny Young, Drawing 2,000
Delivery Fees 18,800
Wages Expense 4,200
Rent Expense 1,800

1. Prepare a trial balance for Kenny's Lawn Service as of September 30, 20--. List the accounts in the order of Assets, Liabilities, Owner's equity, Revenue, and Expenses. If an amount box does not require an entry, leave it blank.

Kenny's Lawn Service
Trial Balance
September 30, 20--
Account Debit Balance Credit Balance

In: Accounting

Biwei’s firm with market power faces a demand curve for its product of P=100–10Q, which is...

Biwei’s firm with market power faces a demand curve for its product of P=100–10Q, which is also the firm’s average revenue curve. The corresponding marginal revenue curve is MR=100-20Q. Assume that the firm faces a marginal cost curve of MC=10+10Q. (20 points)

1) If the firm cannot price-discriminate, what is the profit-maximizing level of output and price?

2) If the firm cannot price-discriminate, what are the levels of consumer and producer surplus in the market, assuming the firm maximizes its profit? Calculate the deadweight loss from market power.

3) If the firm has the ability to practice perfect price discrimination, what is the firm’s output?

4) If the firm practices perfect price discrimination (fully extract consumer surplus according to their marginal use values), what are the levels of consumer and producer surplus? What is the deadweight loss from market power?

In: Economics

Xteel is the sole steel seller in both Canada and USA. The steel is produced in...

Xteel is the sole steel seller in both Canada and USA. The steel is produced in Canada. The marketing department of Company Xsteel has collected the following information.

Production cost:

Total cost                   TC = 2000 + 2Q

Marginal cost                    MC = 2

                Canada:

                Market demand            Q =180 – 2P

                Marginal revenue         MR = 90 – Q

                USA:

                Market demand            Q =180 – 10P

                Marginal revenue         MR = 18 – Q/5,

where P is price of steel ($/ton) and Q is quantity of steel. Since the steel needs to ship from Canada to USA, the marginal cost of selling steel in USA becomes $2.5. Parallel trade is not allowed in Canada and USA.

  1. What should be the optimal pricing strategy of Xteel? What is the profit of Xteel?                                               

b. Suppose that the government of USA imposes a tariff of $2.5 for each ton of steel imported. How will this tariff affect your answer in part (a)?

In: Economics