BUSINESS COLLEGE

Y = F(K, L) = K1/2L1/2. Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker? Round your answers to two decimal places.

Answers

Answer 1
Answer:

Answer:

Income per worker = 1.41 ; If rate of savings is 20% or 0.20 - Savings = 0.28

Explanation:

Y is output or income per worker, is given as a function of factors - Capital & Labour.

Y = F (K,L) = K^1/2.L^1/2

Given : 'Capital per worker' = 2

So, labour = 1 & capital = 2

Income [Y] per worker = (2)^1/2 . (1)^1/2

I.4 x 1

= 1.41

Savings [S] is a function of Income [Y]

S = f (Y)

S = s.f(Y) ; where s represents ratio / proportion of income saved.

Example : If 's' savings rate is 20% i.e 0.20

S = (0.20) (1.41)

= 0.28  

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Because there are a significant number of "green-conscious" consumers, it is a legitimate market segment for many companies that have heretofore relied on more traditional segmentation such as demographics or psychographics. a. Trueb. False
Vilas Company is considering a capital investment of $183,600 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $10,557 and $51,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.Required:a. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)b. Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%)c. Using the discounted cash flow technique, compute the net present value.
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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products ABCD Direct materials$13.20$9.10$9.90$9.50 Direct labor 18.30 26.30 32.50 39.30 Variable manufacturing overhead 3.20 1.60 1.50 2.10 Fixed manufacturing overhead 25.40 33.70 25.50 36.10 Unit product cost$60.10$70.70$69.40$87.00 Additional data concerning these products are listed below. Products ABCD Grinding minutes per unit 2.70 3.40 3.20 2.30 Selling price per unit$75.00$92.40$86.30$103.10 Variable selling cost per unit$1.10$0.10$2.20$0.50 Monthly demand in units 2,900 2,900 1,900 2,100 The grinding machines are potentially the constraint in the production facility. A total of 52,600 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products

Rocky Mountain Bikes' Colorado warehouse has 50 Pack Rat Deluxe Bike Baskets in stock at a moving average price of $25.13 each. They purchase 300 from Rat-a-tat-tat Bike Products at $25.54 each and transfer 100 from their Texas warehouse where the moving average price is $25.25 each. Assuming all of the baskets mentioned above have been received in Colorado and there have been no sales from Colorado, what is the current moving average price and total inventory valuation for Pack Rat Deluxe Bike Baskets in the Colorado warehouse.

Answers

Answer:

Rocky Mountain Bikes

Current moving average price is:

$25.43

Total inventory valuation is:

$11,443.50

Explanation:

Colorado warehouse:

Item             Qty     Price         Moving      Total       Total Value

                                         average price   Qty        

Inventory     50                       $25.13         50        $1,256.50

Purchase   300    $25.54      $25.48      350         $8,918.50

Transfer     100    $25.25      $25.43      450        $11,443.50

Rocky Mountain Bikes' Colorado warehouse uses the moving average price to value the inventory.  The moving average price is computed by creating a constantly updated average price.  This smoothens the price data.

Suppose a 15 to 18-year-old male from Chile was 176 cm tall from 2009 to 2010. The z-score when x = 176 cm is z = _______. This z-score tells you that x = 176 cm is ________ standard deviations to the ________ (right or left) of the mean _____ (What is the mean?)

Answers

Answer:

z = 0.96, standard deviations to the right of the mean 170 cm

Explanation:

z= (176 - 170)/(0.96)

x = 176 cm is 0.96, standard deviations to the right of the mean 170 cm

Faucet Company has 2,500,000 shares of common stock outstanding on December 31, year 1. An additional 500,000 shares of common stock were issued on April 1, year 2, and 250,000 more on July 1, year 2. On October 1, year 2, Faucet issued 5,000, $1,000 face value, 7% convertible bonds. Each bond is convertible into 40 shares of common stock. No bonds were converted into common stock in year 2. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, for the year ended December 31, year 2?

Answers

Answer:

Number of Shares for Basic Earnings per Share = 3,000,000

Number of Shares for Diluted Earnings per Share = 3,200,000

Explanation:

Basic Earnings per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares

Weighted Average Number of Common Shares

Common Shares Outstanding - December 31, year 1        2,500,000

April 1, Year 2 Issue, 9/12× 500,000                                      375,000

July 1, Year 2 Issue, 6/12× 250,000                                        125,000

Number of Shares for Basic Earnings per Share               3,000,000

Diluted Earnings per Share =Adjusted Earnings Attributable to Holders of Common Stock /Adjusted Weighted Average Number of Common Shares

Adjusted Weighted Average Number of Common Shares

Number of Shares for Basic Earnings per Share               3,000,000

Add 7% convertible bonds (5,000×40 shares)                     200,000

Number of Shares for Diluted Earnings per Share            3,200,000

Final answer:

To compute basic earnings per share (EPS) and diluted earnings per share for the year ended December 31, year 2, we need to consider the weighted average number of shares outstanding during the year. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 for the next six months, and finally 3,250,000 for the last three months. For diluted EPS, we would use the same number of shares as the basic EPS calculation.

Explanation:

To compute basic earnings per share (EPS), we need to consider the weighted average number of shares outstanding during the year. For this, we calculate the number of months each share was outstanding and then multiply it by the number of shares for that period. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 (2,500,000 + 500,000) for the next six months, and finally 3,250,000 (2,500,000 + 500,000 + 250,000) for the last three months.

For diluted EPS, we need to consider the potential dilutive effect of convertible bonds. Since no bonds were converted into common stock, the number of shares to be used in computing diluted EPS would be the same as the basic EPS calculation.

Learn more about Earnings per share here:

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Your tax client Chen asks whether it is likely that her Form 1040 will be audited this year. You suspect that Chen might modify the information she reports on her return based on your answer. Address Chen's question, and provide her with a justification to comply fully with the tax law's reporting requirements.About 1% of (all corporate tax returns/ all individual tax returns/ all tax returns) are audited in a given tax year. However, certain types of both taxpayers and income are subject to much higher probabilities of audit. The ethical tax professional (does/ does not) play the "audit lottery" and lower his or her reporting standards because of a perception that such actions "will not be caught." In addition, the tax professional (should/ should not) allow clients to do so.

For example, the IRS has developed ways of (document matching/ maximizing income) where Treasury can determine if a transaction has been properly reported by comparing (related party information/ third party information/ yearly averages) to relevant taxpayers' returns for the year.

Answers

Answer:

Fewer than 1% of all individual tax returns are audited in a given tax year. However, certain types of both taxpayers and income—including, for instance, high-income individuals, cash- oriented businesses, real estate transactions, and estate- and gift-taxable transfers—are subject to much higher probabilities of audit. The ethical tax professional does not "play the audit lottery" and lower his/her reporting standards because of a perception that such actions "will not be caught," nor should the tax professional allow clients to do so.

Explanation:

Fewer than 1% of all individual tax returns as well as all corporate tax return are been audited in a given tax year.

However, certain types of both taxpayers and the income for example high-income individuals, cash- oriented businesses, real estate transactions, estate as well as gift-taxable transfer are often subject to much higher probabilities of audit.

Furthermore the ethical tax professional does not "play the audit lottery" and lower his/her reporting standards because of a perception that such actions "will not be caught," nor should the tax professional allow clients to do so which is why thethe IRS has developed ways of document matching/ maximizing income in which Treasury can help determine if a transaction has been properly and effectively reported by comparing all related party information, third party information and yearly averages to relevant taxpayers' returns for the year.

Madden Enterprises sells two​ products, Silver models and Gold models. Madden Enterprises predicts that it will sell 6 comma 3006,300 Silver models and 3 comma 9003,900 Gold models in the next period. The unit contribution margins for Silver models and Gold models are $ 95$95 and $ 190$190​, respectively. What is the weighted average unit contribution​ margin?

Answers

Answer:

The weighted average contribution margin per unit is $131.32.

Explanation:

The total combined sales of both the products equal, 6300 + 3900 = 10200

The weightage of each product in sales mix is,

Silver = 6300 / 10200

Gold = 3900 / 10200

The weighted average contribution margin can be calculated by multiplying the per unit contribution of each product with their respective weights.

Weighted average unit CM = 6300/10200 * 95 + 3900/10200 * 190

Weighted average unit CM = $131.32

Machinery purchased for $66,000 by Metlock Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,400 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,950 at the end of that time. Assume straight-line depreciation.Required:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.

Answers

Answer:

a. Prepare the entry to correct the prior year's depreciation, if necessary.

  • When an asset's useful life is extended, the extension is done prospectively, not retrospectively. This means that past depreciation does not need to be adjusted.

b. Prepare the entry to record depreciation for 2021.

  • Dr Depreciation expense 4,510
  •     Cr Accumulated depreciation - machinery 4,510

Explanation:

purchase cost of machinery $66,000

estimated useful life 8 years

estimated salvage value $4,400

depreciation has been recorded using the previous basis during the first 5 years, but now the estimated useful life was extended to 10 years and the salvage value = $4,950

depreciation expense per year (during first 5 years) = ($66,000 - $4,400) / 8 = $7,700 per year

accumulated depreciation up to year 5 = $7,700 x 5 = $38,500

the carrying value of the asset on January 1, 2021 = $66,000 - $38,500 = $27,500

the new depreciation expense per year = ($27,500 - $4,950) / 5 = $4,510

depreciation expense for 2021:

Dr Depreciation expense 4,510

    Cr Accumulated depreciation - machinery 4,510
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