BUSINESS COLLEGE

The sales of Carephase Company for the year are as given below: Quarter 1 $400,000 Quarter 2 $360,000 Quarter 3 $620,000 Quarter 4 $580,000 Fifty percent of the sales of the company are paid in cash. Of the sales on account, 60 percent are collected in the quarter of sale, the remaining 40 percent are collected in the quarter following the sale. Calculate the cash receipts for Quarter 4.

Answers

Answer 1

Answer:

Answer:

The correct answer is $588,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the cash receipts for Quarter 4 by using following formula:

Cash receipts for Quarter 4 = Cash Sales + Cash collected from credit sales in Qtr 4 + Accounts receivable of Qtr 3

Where, Cash sales = $580,000 × 50% = $290,000

Cash collected from credit sales in Qtr 4 = ($580,000 × 50%) ×60% = $174,000

Accounts receivable of Qtr 3 = ($620,000 × 50%) × 40% = $124,000

By putting the value, we get

Cash receipts = $290,000+$174,000+$124,000

= $588,000

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Suppose that Spain and Switzerland both produce beer and cheese. Spain's opportunity cost of producing a pound of cheese is 5 barrels of beer while Switzerland's opportunity cost of producing a pound of cheese is 10 barrels of beer. By comparing the opportunity cost of producing cheese in the two countries, you can tell that (Spain/Switzerland) has a comparative advantage in the production of cheese and (Spain/Switzerland) has a comparative advantage in the production of beer. Suppose that Spain and Switzerland consider trading cheese and beer with each other. Spain can gain from specialization and trade as long as it receives more than (1, 1/10, 1/5, 5, 10) barrels of beer for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than(1, 1/10, 1/5, 5, 10) pound of cheese for each barrel of beer it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Switzerland and Spain to gain from trade? Check all that apply. A. 6 barrels of beer per pound of cheese B. 1 barrel of beer per pound of cheese C. 7 barrels of beer per pound of cheese D. 4 barrels of beer per pound of cheese

A project that provides annual cash flows of $2,700 for nine years costs $8,800 today.Requirement 1:A. At a required return of 9 percent, what is the NPV of the project?
B. At a required return of 28 percent, what is the NPV of the project?
C. At what discount rate would you be indifferent between accepting the project and rejecting it?

Answers

Answer:

A. $8,187.17

B. $597.38

C. 30%

Explanation:

Calculate the Net Present Value of the Project at the Required Return of 9%

The following is the calculation of NPV using a financial calculator :

($8,000) CFj

$2,700 CFj

9.00 % i/yr

Shift NPV $8.187.1666 or $8,187.17

Calculate the Net Present Value of the Project at the Required Return of 9%

The following is the calculation of NPV using a financial calculator :

($8,000) CFj

$2,700 CFj

28.00 % i/yr

Shift NPV $597.3765 or $597.38

You will be indifferent between accepting the project and rejecting it at the internal rate of return. The Internal Rate of Return is the interest rate that makes the Present Vale of Cash Flows to equal the Initial Cost of the Investment.

Use the Data given to find the Internal Rate of Return :

($8,000) CFj

$2,700 CFj

Shift IRR 30%

In a mixed economy a. all economies choose the same mix of private and public involvement in the economy. b. the government is more important than the private sector in generating output. c. there is some government influence over the workings of the free market. d. all of the above.

Answers

Answer:

The correct answer is letter "C": there is some government influence over the workings of the free market.

Explanation:

A mixed economic system combines aspects of capitalism and socialism. A mixed economy is designed to drive economic activity through capitalists ventures while money is collected via taxation to maintain a nation's infrastructure and offer public services such as primary education, social welfare policies, and health insurance. It is said mixed economies have a free market but the government puts hands on it to provoke the free-market atmosphere.

Assume that Corn Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $34 and $57, respectively. Corn has fixed costs of $378,000. The break-even point in units is

Answers

Answer:

9,792.75 units

Explanation:

The formula to compute the break even point in units is shown below:

Break even point in units = Fixed cost ÷ Weightage average Contribution margin per unit

where,

Fixed cost is $378,000

And, the Weightage average Contribution margin per unit is

= (Total contribution margin) ÷ (Total sales units)

= (8,000 units ×$34 + $2,000 × $57) ÷ (8,000 units + 2,000 units)

= ($272,000 + $114,000) ÷ (10,000 units)

= ($386,000) ÷ (10,000 units)

= $38.6 per unit

Now the break even point in units is

= $378,000 ÷ 38.6 per unit

= 9,792.75 units

In a closed economy, public saving is the amount of a. income that households have left after paying for taxes and consumption. b. spending that the government undertakes in excess of the taxes it collects. c. income that businesses have left after paying for the factors of production. d. tax revenue that the government has left after paying for its spending.

Answers

Answer:

In a closed economy, public saving is the amount of

d. tax revenue that the government has left after paying for its spending.

Explanation:

Public saving or budget surplus in a closed economy describes the excess of government revenue (obtained through taxation of individuals and businesses in the economy) and government expenditures on goods and services. In an open economy, transfers are deducted before arriving at the public saving. In all economies, the addition of private (individual and business) and public savings result to national investments.

Identify each of the following items as: (a) an asset,
(b) a liability,
(c) revenue,
(d) an expense, or
(e) a dividend:
1. Amounts due from customers
2. Amounts owed to suppliers
3. Cash on hand
4. Cash paid to stockholders
5. Cash sales
6. Equipment
7. Note payable owed to the bank
8. Rent paid for the month
9. Sales commissions paid to salespersons
10. Wages paid to employees

Answers

Answer:

1. An asset.

2. A liability.

3. An asset.

4. A dividend.

5. Revenue.

6. An asset.

7. A liability.

8. An expense.

9. An expense.

10. An expense.

Explanation:

1. Amounts due from customers: an asset. It should be recorded on the balance sheet as account receivable.

2. Amounts owed to suppliers: a liability. It should be recorded on the balance sheet as account payable.

3. Cash on hand: an asset. It should be recorded on the balance sheet as account receivable.

4. Cash paid to stockholders: a dividend. It should be recorded on the statement of retained earnings.

5. Cash sales: revenue. It should be recorded on an income statement.

6. Equipment: an asset. It should be recorded on the balance sheet as account receivable.

7. Note payable owed to the bank: a liability. It should be recorded on the balance sheet as account payable.

8. Rent paid for the month: an expense. It should be recorded as an expense on the income statement.

9. Sales commissions paid to salespersons: an expense. It should be recorded as an expense on the income statement.

10. Wages paid to employees: an expense. It should be recorded as an expense on the income statement.

2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the economy than primary markets." Do you agree with this argument? Why, or why not?

Answers

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

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