BUSINESS COLLEGE

Al is a medical doctor who conducts his practice as a sole proprietor. During 2019, he received cash of $334,200 for medical services. Of the amount collected, $33,600 was for services provided in 2018. At the end of 2019, Al had accounts receivable of $91,400, all for services rendered in 2019. In addition, at the end of the year, Al received $11,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2020. Compute AI's gross income for 2019 using the cash basis of accounting.

Answers

Answer 1

Answer:

Answer:

AI's gross income for 2019 using the cash basis of accounting is $345,200

Explanation:

The computation of the gross income using the cash basis of accounting is shown below:

= Cash received for medical services + advance payment received from a health maintenance organization (HMO)

= $334,200 + $11,000

= $345,200

The other items values are related to the accrual basis of accounting, So we do not consider in the computation part

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Suppose that your demand schedule for dvds is as follows: price quantity demanded (income = $10,000) quantity demanded (income = $12,000) $8 40 dvds 50 dvds 10 32 45 12 24 30 14 16 20 16 8 12a. use the midpoint method to calculate your price elasticity of demand as the price of dvds increases from $8 to $10 if (i) your income is $10,000 and (ii) your income is $12,000.
b. calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12 and (ii) the price is $16.

Answers

The demand schedule is first rearranged as in the attached photo.

The questions can be answered using the following midpoint method formulae:

Price elasticity of demand = Change is quantity / Change in price …………… (1)

Income elasticity of demand = Change is quantity / Change in income …………(2)

Where:

Change in quantity = (New quantity - Old quantity) / ((New quantity + Old quantity)/2)

Change in Price = (New price - Old price)/ ((New price + Old price)/2)

Change in income = (New income - Old income)/ ((New income + Old income)/2) =

Using the formulae, we have:

a(i) Price elasticity of demand when income is $10,000

We have:

Change in quantity = (New quantity - Old quantity) / ((New quantity + Old quantity)/2) = (32-40) / ((32+40)/2) = -0.222222222222222

Change in Price = (New price - Old price) / (New price + Old price)/2) = (10-8) / ((10+8)/2) = 0.222222222222222

Price elasticity of demand when income is $10,000 = Change is quantity / Change in price = -0.222222222222222 / 0.222222222222222 = -1

a(ii) Price elasticity of demand when income is $12,000

We have:

Change in quantity = (New quantity - Old quantity) / ((New quantity + Old quantity)/2) = (45-50) / ((45+50)/2) = -0.105263157894737

Change in Price = (New price - Old price) / (New price + Old price)/2) = (10-8) / ((10+8)/2) = 0.222222222222222

Price elasticity of demand when income is $12,000 = Change is quantity / Change in price = -0.105263157894737 / 0.222222222222222 = -0.473684210526316, or -0.47 approximately

b(i) Income elasticity of demand as income increases from $10,000 to $12,000 if the price is $12

Change in quantity = (New quantity - Old quantity) / ((New quantity + Old quantity)/2) = (30 - 24) / ((30 + 24)/2) = 0.222222222222222

Change in income = (New income - Old income)/ (New income + Old income)/2) = (12,000 – 10,000)/ ((12,000 + 10,000)/2) = 0.181818181818182

Income elasticity of demand = Change is quantity / Change in income = 0.222222222222222 / 0.181818181818182 = 0.81818181818182, or 0.82 approximately

b(ii) Income elasticity of demand as income increases from $10,000 to $12,000 if the price is $16

Change in quantity = (New quantity - Old quantity) / ((New quantity + Old quantity)/2) = (12 - 8) / ((12 + 8)/2) = 0.40

Change in income = (New income - Old income)/ (New income + Old income)/2) = (12,000 – 10,000)/ ((12,000 + 10,000)/2) = 0.181818181818182

Income elasticity of demand = Change is quantity / Change in income = 0.40 / 0.181818181818182 = 2.20

Learn more here:brainly.com/question/13324924.

a. use the midpoint method to calculate your price elasticity of demand as the price of dvds increases from $8 to $10 if (i) your income is $10,000 and (ii) your income is $12,000 : -1

Explanation:

Suppose that your demand schedule for DVDs is as follows:

price

quantity demanded (income = $10,000)

40 pizza

quantity demanded (income = $12,000)

50 pizza

a. use the midpoint method to calculate your price elasticity of demand as the price of dvds increases from $8 to $10 if (i) your income is $10,000 and (ii) your income is $12,000.

Price elasticity of demand (Income $10,000) = Quantity present - quantity previous / (quantity present + quantity previous /2) divide with (Price present - price previous / (price present + price previous /2))

quantity present - quantity previous / (quantity present + quantity previous/2) = 32-40 / ((32+40)/2) = 9/36 = -0.2222

(Price present - price previous / (price present + price previous /2))

= 10-8 / ((10+8)/2) = 2/9 = 0.2222

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Which country is the biggest consumer of Virginia's services?A.Canada

B. Germany

C. Mexico

D. United Kingdom

Answers

Answer:

A.Canada

Explanation:

Answer:

Answer choice A.canada

A. 17.2, B. 15.12 C.12% D. 18.7%What would be the weighted average cost of capital for Lam Bakery, Inc. under the following conditions:

*The capital structure is 40% debt and 60% equity

*The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket

*The firm’s beta is 1.7

*The risk-free rate is 7% and the market risk premium is 6%

Answers

Answer:

Option (B) is correct.

Explanation:

Cost of Equity (Ke) = Rf + Beta ( Rp)

where,

Rf = risk free rate

Rp = Market risk premium

Hence,

Beta systematic risk:

= 7% + 1.7 (6%)

= 7% + 10.2%

= 17.2%

Post Tax cost of debt:

= Kd ( 1 - T)

where,

Kd = cost of debt

T = tax rate

= 20% * (1-0.4)

= 12%

WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]

where,

We = weight of equity

Wd = weight of debt

= [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]

= 10.32% + 4.80%

= 15.12%

Potential effects of departmental performance reports on employee behavior include all of the following except: Including indirect expenses can lead to a manager being more careful in using service department's costs. Using budgeted service department costs insures that operating departments are not held responsible for excessive service department costs. Including uncontrollable costs can serve to improve a manager's morale.

Answers

Potential effects of departmental performance reports on employee behavior except including uncontrollable costs served to improve manager's morale.

Explanation:

Performance management plays an important role to keep a proper record of all the works that are being performed in a company .
A proper performance management also shows an important effect on the behavior of the employees.
If the employees are boosted properly by the managers they will increase the productivity .
This will help the company to earn profits. Departmental performance keep record of all the expenses that are being done during the production process . It also help the manager to gain information and can adopt proper strategy to reduce expenses.

Denise has her heart set on being a millionaire. What payment does Denise need to make at the end of each month over the coming 44 years at 6% APR to reach her retirement goal of $1 million?

Answers

Answer:

$ 941 796

Explanation:

The present amount with compound interest is given by the following formula:

$A = P (1+(r)/(n))^(nt)$

where A = $ 1 000 000

t (years) = 44

rate = 6%

= 0.06

The formula becomes:

1 000 000 = P (1 + (0.06/44) (44*1)

1 000 000 = P (1.0618)

P = $ 941 796

so the amount needed to be deposited is $ 941 796

"Which statements are TRUE about variable annuities? I Contributions to the separate account are tax deductible II Contributions to the separate account are not tax deductible III Earnings in the separate account build tax-deferred IV Earnings in the separate account are taxable each year"

Answers

Answer: II Contributions to the separate account are not tax deductible

III Earnings in the separate account build tax-deferred

Explanation:

Variable Annuities represent an investment vehicle where one puts money in a certain type of investment with the goal being that they will earn an income in retirement which is dependent on how their chosen investment performed therefore making the payout variable.

Contributions to the separate account are not tax deductible. The tax advantage of Variable annuity contracts instead is that the income earned from the annuity gets to build tax-deferred with taxes only applying to them when a withdrawal is made.

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