A report found that the real entry-level wage for college graduates declined by 6 percent between 2003 and 2010.2010 Nominal Entry-Level Wage 2010 CPI 2003 CPI
$13.50 170.2 142.5
Enter your responses rounded to two decimal places.
Based on the information above:
a. The 2010 real entry-level wage is $.
b. The 2003 real entry-level wage is $.
c. The 2003 nominal entry-level wage is $.
Answers
The 2010 real entry-level wage will be $7.93; the 2003 real entry-level wage is $8.43 and 2003 nominal entry-level wage is $12.01 for college graduates.
How to calculate the entry-level wages?
Using the information given above, the real entry-level wage for the year 2010 will be calculated by using the formula given below as,
Now, for the year 2003,
Now calculating the nominal entry-level wages for the year 2003,
Hence, the 2010 real entry-level wage will be $7.93; the 2003 real entry-level wage is $8.43 and 2003 nominal entry-level wage is $12.01 for college graduates.
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Related Questions
Gibson Company paid $12,000 on June 1, 2014 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2014 adjusting entry is A. Debit Prepaid Insurance and credit Insurance Expense, $3,500 B. Debit Prepaid Insurance and credit Insurance Expense, $8,500 C. Debit Insurance Expense and credit Prepaid Insurance, $3,500 D. Debit Insurance Expense and credit Prepaid Insurance, $8,500
A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building is $5,000/month and additional utilities cost $15,000/month. The production line is open 24 hours every day of the month (calculate with 30 days per month). Each day has three 8-hour shifts with 10 workers present in each of these snifts. All workers get paid $30/hour. The materials used for your product cost $2,500/product. Your accountant advises you that your corporate taxes are estimated to be $500/product. Calculate, how many products you must make and sell in one month to make a $1,000,000 profit per month.
ECB Co. has 1.15 million shares outstanding selling at $24 per share. It plans to repurchase 97,000 shares at the market price using its cash reserves. What will be its market capitalization after the repurchase? What will be its stock price?
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 million. Prepare the lower porti
Materials handling $72,000 Number of moves 3,000
Engineering 165,000 Number of change orders 10,000
Other overhead 280,000 Direct labor hours 50,000
Heitger worked on four jobs in July. Data are as follows:
Job 13-43 Job 13-44 Job 13-45 Job 13-46
Beginning balance $20,300 $19,800 $2,300 $0
Direct materials $6,500 $8,900 $12,700 $9,800
Direct labor cost $18,000 $20,000 $32,000 $2,400
Number of moves 44 52 29 5
Number of change orders 30 40 20 20
Direct labor hours 900 1,000 1,600 120
By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.
Required:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Answers
Answer:
Kindly check attached picture
Explanation:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Kindly check attached picture for detailed explanation
Final answer:
This solution calculates the activity rates for three overhead activities, creates job-order cost sheets for four jobs, computes the Work in Process balance and Cost of Goods sold for July, and analysis the impact on job costs if there were no engineering changes for one job.
Explanation:
Solution:
Firstly, to calculate the activity rates for each of the overhead activities, you need to divide the activity cost driver by the number amount of driver. For Materials handling, this gives us 72,000 / 3,000 = $24 per move; for Engineering, we get 165,000 / 10,000 = $16.5 per change order; and for Other overhead, the calculation gives 280,000 / 50,000 = $5.6 per direct labor hour.
For the job-order cost sheets, you add up all the costs - direct materials, direct labor, and overhead costs. The overhead costs are calculated based on the activity rates we calculated earlier multiplied by the number of drivers. The total for each category is then summed to provide the total cost for each job.
The balance in Work in Process on July 31st is calculated by adding the costs for all uncompleted jobs - which from the data supplied is jobs 13-45 and 13-46.
Cost of Goods Sold (COGS) for July includes costs of all jobs sold in July. As per the supplied data, jobs 13-43 and 13-44 were completed and sold in July. Hence, the costs of these two jobs are added to get COGS.
Lastly, if Job 13-46 required no engineering change orders, the engineering costs for that job would be eliminated, leading to a reduction in the total cost of that job. This would have no effect on the cost of other jobs as costs are allocated based on activity, not spread evenly across all jobs.
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Answers
Answer: The adjusting entries for the uncollectible accounts would be as follows: Debit Bad debt expense $277,500; Credit Allowance for doubtful accounts $277,500
Explanation: As provided in the question, bad debt expense is determined by the percentage of sales method. In this instance, it is estimated at 1/4 of 1% of sales. 1% of $102,480,000 = $1,024,800; 1/4 of $1,024,800 = $256,200. Please note that there was an existing debit balance of $21,300 in allowance for doubtful accounts (usually, it should have a credit balance), in order to reinstate the allowance for doubtful account to $256,200, we have to credit it with $277,500 ($256,200 + $21,300), by way of the journals above.
Final answer:
The adjusting entry for uncollectible accounts can be calculated by adding the estimated bad debt expense ($256,200) to the existing balance in the Allowance for Doubtful Accounts ($21,300), resulting in a total adjusting entry of $277,500.
Explanation:
To find out the amount of the adjusting entry for uncollectible accounts, you first need to calculate the bad debt expense. Since the question states that bad debt expense is estimated to be 1/4 of 1% of sales, we would find this by multiplying $102,480,000 by 0.0025 (1/4 of 1%).
Bad debt expense = $102,480,000 * 0.0025 = $256,200
Given that the Allowance for Doubtful Accounts already has a balance (which is a debit balance of $21,300), we need to add this to the estimated bad debt expense to determine the adjusting entry.
Adjusting entry for uncollectible accounts = Bad debt expense + Existing Balance in Allowance for doubtful accounts
= $256,200 + $21,300 = $277,500
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Answers
Answer:
a) Assets: Reserves $200,000; Liabilities: Deposits $200,000
b) Amount Deposited: $2000,000; Change in Excess Reserves: $190,000; and Change in Required Reserves: $10,000
c) See the calculation below and the attached excel file for the table.
d) the $200,000 injection into the money supply results in an overall increase of $4,000,000 in demand deposits.
Explanation:
These can be answered as follows:
a) Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).
Note: See the attached excel file for the table.
The $200,000 deposited by Lorenzo to First Main Street Bank led to the creation of both an asset and a liability for First Main Street Bank.
As a result, the reserve of the bank is increased by $200,000 on the asset side of the T-account. It is therefore now possible for the ban to grant loan to other customers from these additional reserves.
In addition, the demand deposit of the bank is increased by $200,000 on the liability side of the T-account. This is recorded as a demand deposit because it is possible for Lorenzo to come at any time to the band to withdraw his deposit either by using a debit card or by writing a check.
b) Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 5%. Hint: If the change is negative, be sure to enter the value as negative number.
Note: See the attached excel file for the table. Just scroll the excel file down to part b.
The required reserve ratio of 5% indicates that First Main Street Bank has to hold 5% of the $200,000 the deposit or fresh fresh reserves, and this will result in having a 95% excess reserve which the bank can employ to grant loans.
From the amount deposited, the change in excess reserve and the change in the required reserve can be computed as follows:
Amount deposited = $200,000
Change in excess reserve = $200,000 * (1 - 5%) = $190,000
Change in required reserve = $200,000 * 5% = $10,000
c) Now, suppose First Main Street Bank loans out all of its new excess reserves to Juanita, who immediately uses the funds to write a check to Gilberto. Gilberto deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Lorenzo, who writes a check to Neha, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Teresa as well.Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.
Note: See the attached excel file for the table. Just scroll the excel file down to part c.
As already computed in part b above, we have the following to show the effect of this ongoing chain of events at each bank, we have:
For First Main Street Bank:
Increase deposit = Deposit from Lorenzo = $200,000
increase in required reserve = $200,000 * 5% = $10,000
Increase in loans = Loan to Juanita = $200,000 * (1 - 5%) = $190,000
For Second Republic Bank:
Increase deposit = Deposit from Gilberto = $190,000
Increase in required reserve = $190,000 * 5% = $9,500
Increase in Loans = Loans to Lorenzo = $190,000 * (1 - 5%) = $180,500
For Third Fidelity Bank:
Increase deposit = Deposit from Neha = $180,500
Increase in required reserve = $180,500 * 5% = $9,025
Increase in Loans = Loans to Teresa = $180,500 * (1 - 5%) = $171,475
d) Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $200,000 injection into the money supply results in an overall increase of in demand deposits.
In order to calculate this, the formula for the money multiplier is used to multiply the initial deposit or injection of $200,000 by Lorenzo as follows:
Money multiplier = 1/r
Where r denotes required reserve ratio of 5%, or 0.05.
Therefore, we have:
Overall increase in demand deposits = Injection * (1 / r) = $200,000 * (1 / 0.05) = $200,000 * 20 = $4,000,000
Therefore, the $200,000 injection into the money supply results in an overall increase of $4,000,000 in demand deposits.
Final answer:
When the Federal Reserve buys a government bond from a client of First Main Street Bank, the bank's assets increase by the bond value and its liabilities increase by the same amount in deposits.
Explanation:
In this scenario, when the Federal Reserve buys a $200,000 government bond from Lorenzo, a client of First Main Street Bank, and he deposits the money into his checking account at the bank, there are changes in the bank's T-account. The bank's assets increase by $200,000 in reserves, while its liabilities increase by $200,000 in deposits.
Next, if First Main Street Bank loans out all of its new excess reserves to Juanita, who writes a check to Gilberto, Gilberto deposits the funds into his checking account at Second Republic Bank. This process continues with each successive loan deposited into a checking account at each bank. The increase in deposits, required reserves, and loans at each bank can be filled in the table provided.
Assuming this process continues with no banks keeping any excess reserves, the $200,000 injection into the money supply results in an overall increase of $200,000 in demand deposits.
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Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow.
LANSING COMPANY
Income Statement
For Year Ended December 31, 2017
Sales revenue $ 118,200
Expenses
Cost of goods sold 49,000
Depreciation expense 15,500
Salaries expense 25,000
Rent expense 9,700
Insurance expense 4,500
Interest expense 4,300
Utilities expense 3,500
Net income $ 6,700
LANSING COMPANY
Selected Balance Sheet Accounts
At December 31 2017 2016
Accounts receivable $ 6,300 $ 7,200
Inventory 2,680 1,890
Accounts payable 5,100 6,000
Salaries payable 1,020 770
Utilities payable 360 230
Prepaid insurance 330 420
Prepaid rent 360 250
Problem 16-1A Indirect: Computing cash flows from operations LO P2
Required:
Prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
LANSING COMPANY
Cash Flows from Operating Activities—Indirect Method
For Year Ended December 31, 2017
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operations:
Answers
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $6,700
Adjustment made:
Add : Depreciation expense $15,500
Add: Decrease in accounts receivable $900 ($6,300 - $7,200)
Less: Increase in inventory -$790 ($2,680 - $1,890)
Less: Decrease in accounts payable -$900 ($5,100 - $6,000
Add: Increase in salaries payable $250 ($1,020 - $770)
Add: Increase in utility payable $130 ($360 - $230)
Less: Decrease in prepaid insurance -$90 ($330 - $420
Add: Increase in prepaid rent $110 ($360 - $250)
Total of Adjustments $15,110
Net Cash flow from Operating activities $21,810
Answers
Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
Answers
Answer:
The annual worth is:________
$667,380
Explanation:
Present value of investment = $840,000
Number of years = 6
Market interest rate = 10%
Inflation rate = 3%
Real interest rate = 7%
PV Annuity factor = 4.767
Total FV of annuity = $840,000 * 4.767 = $4,004,280
Annual worth = $4,004,280/6 - $667,380
The annual worth of the investment of $840,000 will be $667,380 based on the market-adjusted interest rate of 7% (10 - 3).