An industry comprises of 50 similar firms and there is no entry possible. It is assumed that only 30 of the 50 firms form a competitive fringe while the remaining 20 firms form a cartel.
The quantity supply at p=12 for the competitive fringe is calculated below:Let us assume that the total industry supply is given by QS = 30q where q is the quantity supplied by the competitive fringe. Since all the firms in the competitive fringe are identical, the individual supply for each firm is q=Qs/30.
The supply curve for the competitive fringe is given by
[tex]QS=Qs = 30(q) = 30(Qs/30) = Qs. At price p=12[/tex]
The quantity supply at which this price is given by Qs = 12/2 = 6.
The residual demand curve of the cartel comprising of the remaining 20 firms is given by DR = QD - QS where QD is the total industry demand which is given by QD = 50p and QS is the supply of the competitive fringe given by QS = 30q. Therefore
[tex]DR = QD - QS = 50p - 30qAt price p=20[/tex]
The quantity demanded is given by
[tex]QD = 50(20) = 1000 and QS = 30(q) = 30(Qs/30) = Qs. DR = QD - QS = 1000 - Qs[/tex]
The slope of the inverse demand curve is -1/2. Therefore, the slope of the marginal revenue curve is -1.
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a NLRB v. Jones \& Laughlin Steel Corporation, the U.S. Supreme Court ruled: ermplover who were not union members. edslifiesis who were iunion meinben: Corugess exceeded its authority by creating the Nationsl Labor Relations Board (NLRB) and allowng the NLRB to charge companies with diseriminating Hearinst employees who were union members. Which of the following is an example of the Dormant Commerce Clause: Alve emesency order made by the Gowinor of Cilifamia Question 8 Finn is the owner of Adventure Time Travels. His employee is lake. lake is not allowed to speak to the media in anv manner ackording to hit employment contract regarding what takes place at Adventure Time Travels. This is a violation of: The first anmendment freecom of speech clause: Thue National Enquirer ran a story about how Lindsey Lohan (public figure), Jon Stewart (public figurel. Justin Bieber ibublic fougrel and 3 in Wintes (nat a public figure). It stated that all four of them are really aliens from the planet Zakon and are going fo take over the earth. The Enguires will use the first amendment, Freedom of Speech as a defense to any defamation suit. Which of the following of the above will the first ainerdment defense not apply to: Xistincieberis lonstewart - Lindwy Lahar Which of the following is not a classification of what is permissible under the 14 th Amendment regarding Equal Protection: Internediate Scrutiry Minimal Scrutiny Strict Scrutioy Adranced Scrutiny
NLRB v. Jones & Laughlin Steel Corporation was a court case in which the Supreme Court of the United States held that the National Labor Relations Act was constitutional and that the National Labor Relations Board had the power to regulate labor relations in the country.
The court ruled that Congress had the power to create the National Labor Relations Board and that the board had the power to investigate and charge companies with discrimination against employees who were union members.
The Dormant Commerce Clause is a legal doctrine that prohibits states from passing laws that unduly burden interstate commerce. An example of the Dormant Commerce Clause would be a state law that requires all goods sold within the state to be manufactured within the state, which would unduly burden interstate commerce.Violation of the First Amendment's freedom of speech clause would occur if the owner of Adventure Time Travels forbids the employee to speak to the media. The first amendment provides that the government shall make no law prohibiting the free exercise thereof, which includes the freedom of speech.The National Enquirer can use the First Amendment's freedom of speech as a defense to any defamation lawsuit filed against them. However, this defense will not apply to Lindsay Lohan, Jon Stewart, and Justin Bieber, as they are public figures, and the standard for defamation of a public figure is much higher than that of a private individual.Advanced scrutiny is not a classification of what is permissible under the 14th Amendment regarding Equal Protection. The classifications of what is permissible under the 14th Amendment regarding Equal Protection are Strict Scrutiny, Intermediate Scrutiny, and Minimal Scrutiny.Know more about the National Labor Relations Act
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Transactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: a. Opened a business bank account with a deposit of $29,000 from personal funds. b. Purchased office supplies on account, $2,610. c. Received cash from fees earned for managing rental property, $7,060. d. Paid rent on office and equipment for the month, $3,200. e. Paid creditors on account, $1,190. f. Billed customers for fee arned for managing rental property, $5,930. 9. Paid automobile expens acluding rental charges) for the month, $710, and miscellaneous expenses, $360. h. Paid office salaries, $2,250. i. Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,070. j. Withdrew cash for personal use, $2,130. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: −300 ) 2. Owner's equity is the right of owners to the assets of the business. These rights are by owner's investments and revenues and by owner's withdrawals and expenses. 3. Determine the net income for June. 5 4. June's transactions (a−j) increased or decreased Pamela Schatz's capital to? to $
June’s transactions (a-j) decreased Pamela Schatz’s capital to $26,180.
The effect of transactions and balances after each transaction is mentioned below:
a. The bank account is debited with $29,000. Bank Account +$29,000, Owner’s Capital +$29,000
b. Office supplies are increased. Office Supplies +$2,610, Accounts Payable +$2,610
c. Cash is increased. Cash +$7,060, Fees Earned +$7,060
d. Rent expense is increased. Rent Expense +$3,200, Cash -$3,200
e. Accounts payable is decreased. Accounts Payable -$1,190, Cash -$1,190
f. Fees earned are increased. Accounts Receivable +$5,930, Fees Earned +$5,930
g. Automobile and miscellaneous expenses are increased. Automobile Expense +$710, Miscellaneous Expense +$360, Cash -$1,070
h. Office salaries expense is increased. Office Salaries Expense +$2,250, Cash -$2,250
i. Office supplies used are recorded. Office Supplies -$1,070, Supplies Expense +$1,070
j. Cash is withdrawn. Owner’s Withdrawals -$2,130, Cash -$2,130.
The net income for June can be determined by subtracting all expenses from all revenues.
Net Income = Revenues – Expenses = $7,060 + $5,930 – $3,200 – $1,190 – $710 – $360 – $2,250 – $1,070 = -$690
Since the net income is negative, it is known as the net loss.Pamela Schatz’s capital at the end of June can be calculated as follows:
Owner’s Capital (start of June) + Net Income (or - Net Loss) - Owner’s Withdrawals = $29,000 - $690 - $2,130 = $26,180.
Therefore, June’s transactions (a-j) decreased Pamela Schatz’s capital to $26,180.
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Applying Functions to Basic Economics: Problem 20 (1 point) The demand function for a product is p=126−9x where p is the price in dollars when x units are demanded. Find the level of production that maximizes the total revenue and determine the revenue. Aevenue function R(x)= Maximum revenue occurs at quantity = units Maximum revenue poss ble is =$ Note: in order to get credit for this problem ail answers must be carrect. You have attempted this problem 0 times. You have unlimited attempts remaining.
The level of production that maximizes the total revenue is x = 7 and the maximum revenue possible is $ 441.Given, The demand function for a product is p=126−9x where p is the price in dollars when x units are demanded.
The revenue function R(x) is given by, R(x) = x * p Now, substituting the given value of p in the above equation, we get, R(x) = x(126 - 9x)R(x) = 126x - 9x²Differentiating R(x) w. r. t x, we get, d R/dx = 126 - 18xPutting d R/dx = 0 to find the maximum value of R(x), we get,126 - 18x = 0x = 7Now, the second derivative test should be applied to confirm that x = 7 is a maximum value. d²R/dx² = -18 < 0Hence, x = 7 is a maximum value.
Now, the revenue at maximum value is given by, R(7) = 7 * (126 - 9 * 7)R(7) = 7 * 63R(7) = $441Therefore, the level of production that maximizes the total revenue is x = 7 and the maximum revenue possible is $ 441.
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Decision: d1, d2, d3. s1: 150, 200, 400. s2 650, -250, 400. s3 400, 1100, 700. What choice should be made by the optimistic decision maker? (b) what choice should be made by the conservative decision maker? (c) if the probability of d1, d2, d3 are 0.2, 0.5, 0.3 respectively, then what choices should be made under expected value?
The optimistic and conservative decision-makers will both choose option d3 since it provides the highest expected payoff.
A decision matrix is a table that displays all possible results of different decisions and their outcomes. Decision-making under conditions of certainty, risk, and uncertainty is a common practice.
For this criterion, the EV of each option is calculated, which is a weighted average of all possible outcomes, with the weights being the probability of each outcome occurring.
Conversely, a conservative decision-maker believes that the worst-case scenario will occur. The EMV decision criterion is used when probability values are not available, and the decision-maker must choose between options under conditions of uncertainty
In this problem, the decision matrix is as follows:
Decision: d1 d2 d3
s1 150 200 400
s2 650 -250 400
s3 400 1100 700
(a) The optimistic decision-maker would choose d3 since it provides the maximum payoff.
(b) The conservative decision-maker would select d1 since it provides the minimum payoff.
(c) The expected value of each decision is as follows:
EV(d1) = 0.2(150) + 0.5(200) + 0.3(400)
= 230
EV(d2) = 0.2(650) + 0.5(-250) + 0.3(400)
= 215
EV(d3) = 0.2(400) + 0.5(1100) + 0.3(700)
= 770
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contrast canadian value ( including those of indigenous Canadians) eith other cultures
Canada is a multicultural country and a society that strongly emphasizes diversity and multiculturalism. The nation's values reflect this fact and have been shaped by a variety of cultural and historical factors.
Canadian values, including those of indigenous Canadians, differ from those of other cultures in several ways. Here are some of the contrasts:1
Diversity: Canadian culture is distinguished by its diversity. It is a multicultural nation where individuals of different backgrounds are respected, valued, and given the opportunity to succeed. Other cultures may have a more homogeneous population and may not place as much emphasis on diversity.Equality: Equality is a core Canadian value. Canadians believe that all people should have equal access to opportunities, regardless of their social class, race, religion, or gender. This value is not shared by all cultures, as some believe that certain groups of people are inherently superior to others. Indigenous Rights: Indigenous rights and culture are a critical aspect of Canadian values. Indigenous Canadians' rights to their traditional lands and cultures are recognized and respected, and their contribution to the nation's history is acknowledged.Respect for laws and authority: Canadians are known for their respect for the law and authority. They believe in the rule of law and its ability to create a just and fair society.Other cultures may have a different attitude toward the law and may not respect authority as much. Canadian values, including those of indigenous Canadians, have been shaped by a variety of cultural and historical factors. These values differ from those of other cultures in terms of diversity, equality, indigenous rights, and respect for laws and authority.
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how does the automation improve the workers safety?
Automation is a process that entails the use of machines, robots, and computer systems to perform tasks that would have otherwise been executed by humans.
Increased precision and accuracy - Automation has made it possible to increase the precision and accuracy of tasks that would have been performed by humans. For instance, robots can perform tasks that require high levels of precision, such as welding, cutting, and drilling, without errors. This eliminates the possibility of human error, which could lead to injuries.
In conclusion, automation has improved workers' safety in many ways. By reducing hazardous tasks, reducing exposure to harmful substances, increasing precision and accuracy, improving working conditions, and providing predictive maintenance, employees can work in a safe environment with minimal risk of accidents.
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Does truck platooning have a future in North America?
Truck platooning has a future in North America. Platooning is a account become increasingly popular among trucking companies. Platooning is the practice of joining two or more trucks together in a convoy.
With the lead truck being driven by a human driver and the following trucks being controlled by automated driving systems that use sensors and cameras to communicate with one another and avoid collisions. Platooning is being investigated by several.
Platooning is anticipated to become more widespread in the coming years, with a growing number of firms testing and experimenting with the technology. The North American Commercial Vehicle Technology Summit was held in 2018, and one of the most popular subjects was platooning, which highlighted its increasing importance in the trucking sector. Truck platooning has a future in North America because it has the potential to increase the safety, efficiency, and overall productivity of the trucking sector while also decreasing fuel usage and reducing emissions.
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You can afford monthly payments of $400. If current mortgage rates are 4.09% for a 30 -year fixed rate loan, how much can you afford to borrow?
The loan amount you can afford to borrow would be approximately $78,772.
To calculate how much you can afford to borrow, you will need to consider your monthly payments and the current mortgage rates. Given that you can afford monthly payments of $400 and the current mortgage rate is 4.09% for a 30-year fixed rate loan, you can use a mortgage calculator to determine the loan amount.
Using a mortgage calculator, you can input the loan term (30 years), the interest rate (4.09%), and the monthly payment ($400). The calculator will then determine the loan amount you can afford.
Based on the given information, the loan amount you can afford to borrow would be approximately $78,772.
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At a price of $10, quantity demanded is 30 units. When the price rises to $11, quantity demanded is 24 units. What is the absolute price elasticity of demand? group of answer choices
The absolute price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price, resulting in an elasticity value of 2.
The absolute price elasticity of demand can be calculated as the percentage change in quantity demanded divided by the percentage change in price.
Using the given information, we can calculate the percentage change in quantity demanded and the percentage change in price.
The percentage change in quantity demanded is [(24 - 30) / 30] * 100% = -20%.
The percentage change in price is [(11 - 10) / 10] * 100% = 10%.
To find the absolute price elasticity of demand, we divide the percentage change in quantity demanded by the percentage change in price: |-20% / 10%| = 2.
Therefore, the absolute price elasticity of demand is 2.
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Identify how an organization can use business process re-engineering to improve its business.
Business Process Re-engineering (BPR) is the examination and redesign of business processes and workflows in an organization to improve efficiency and effectiveness.
an organization can use business process re-engineering to streamline its processes, enabling the company to reduce expenses, improve quality, and gain a competitive edge in the marketplace. BPR its processes, optimize workflows and reduce redundancies in the system.
BPR can help an organization to adapt to changes in the market. In conclusion, BPR can help organizations to enhance their performance and gain a competitive edge in the marketplace by optimizing their business processes. BPR provides an organization with a framework for identifying inefficiencies, reducing redundancies, and enhancing customer satisfaction.
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Assume that the production of one unit of cell phones in the US requires 20 units of resources, while the production of one unit of textiles uses 10 units of resources. Also assume the world price is 1 unit of cell phones =4 units of textiles. Please explain how the US benefits from specialization in cell phone production, and exchanging excess phones for textiles. (10 points)
Specialization occurs when a nation concentrates its resources on the production of a specific commodity or service, making it more productive in that area than other nations.
This is owing to the fact that the nation can utilize its comparative advantage. Comparative advantage occurs when a nation can produce goods or services at a lower opportunity cost than other nations. For instance, in the United States, one unit of cell phones requires 20 units of resources, while one unit of textiles requires 10 units of resources.
In addition, the world price of 1 unit of cell phones = 4 units of textiles. As a result, the United States will benefit if it specializes in the production of cell phones. This is owing to the fact that it will be able to produce cell phones at a lower opportunity cost than textiles, allowing it to increase its share of global production, lower production costs, and increase productivity and profitability.
The United States will be able to sell its excess cell phone production to other nations and exchange it for textiles at a lower cost, thanks to specialization and trade. As a result, the United States will benefit from greater access to more inexpensive textiles than it would be able to produce on its own. As a result, specialization in cell phone production and exchange of excess phones for textiles will benefit the United States.
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Analyze risk and its measurement. Why must managers be
conscious of risk and understand how to properly measure it? What
could potentially happen if risk assessment did not
occur?
200 word minimum
Managers must be conscious of risk and understand how to properly measure it because it is essential for effective decision-making and overall organizational success. Risk refers to the potential for loss or negative outcomes, and analyzing risk helps managers identify potential hazards and make informed decisions to mitigate them.
By understanding and measuring risk, managers can make strategic choices to minimize potential negative impacts and maximize opportunities. If managers are not conscious of risk and fail to properly measure it, several potential consequences can occur. First, they may make decisions without considering potential risks, which can lead to unforeseen problems and losses for the organization. This can include financial losses, reputational damage, or even legal issues. Without risk assessment, managers may overlook important factors that could impact the success of their decisions. Second, without proper risk measurement, managers may overestimate or underestimate the level of risk involved. The overestimating risk may result in missed opportunities or overly cautious decision-making, which can limit growth and innovation. On the other hand, underestimating risk can lead to poor planning and decision-making, increasing the likelihood of negative outcomes. Lastly, without risk assessment, managers may not be able to prioritize resources effectively. By understanding the level of risk associated with different activities or projects, managers can allocate resources accordingly and focus on areas that require more attention or resources. In summary, managers must be conscious of risk and understand how to properly measure it to make informed decisions and minimize potential negative impacts. Failure to conduct risk assessment can lead to unforeseen problems, missed opportunities, poor decision-making, and inefficient resource allocation.
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Analyzing and journalizing revenue transactions L03,5 Examine the following transactions and identify those that created revenues for TI Servicing, a sole pro- prietorship owned by Todd Iver. Prepare general journal entries to record those transactions and explain why the other transactions did not create revenues. a. Invested $76,500 cash in the business. b. Provided $2,700 of services on credit. e. Received $3,150 cash for services provided to a client. d. Received $18,300 from a client in payment for services to be provided next year. e. Received $9,000 from a client in partial payment of an account receivable. f. Borrowed $300,000 from the bank by signing a promissory note. Exercise 2-8 Analyzing and journalizing expense transactions L03,5 Myra Sharma owns and operates a yoga studio, Green Yoga. Examine the following transactions and identify those that created expenses for Green Yoga. Prepare journal entries to record those transactions and explain why the other transactions did not create expenses. a. Paid $14,100 cash for office supplies purchased 30 days previously. b. Paid the $1,125 salary of the receptionist. e. Paid $45,000 cash for yoga studio equipment. d. Paid utility bill with $930 cash. e. Withdrew $5,000 from the business account for personal use.
For TI Servicing (sole proprietorship owned by Todd Iver), transaction b created revenue as services were provided on credit and transaction c created revenue as cash was received for services provided to a client.
For TI Servicing (Transactions creating revenues):
a. This transaction does not create revenue. It represents the owner's investment of capital into the business and will be recorded as an increase in the owner's equity.
b. This transaction creates revenue. The services provided generate earnings for TI Servicing.
Accounts Receivable $2,700
Service Revenue $2,700
e. This transaction creates revenue. TI Servicing received cash for the services provided.
Cash $3,150
Accounts Receivable $3,150
For TI Servicing (Transactions not creating revenues):
d. This transaction does not create revenue because the services will be provided in the future. It represents an advance payment or unearned revenue.
Cash $18,300
Unearned Service Revenue $18,300
e. This transaction does not create revenue. It represents a partial payment of an outstanding accounts receivable.
Cash $9,000
Accounts Receivable $9,000
f. This transaction does not create revenue. It represents a borrowing of funds and will be recorded as a liability. The journal entry would be:
Cash $300,000
Notes Payable $300,000
For Green Yoga (Transactions creating expenses):
a. This transaction creates an expense. The office supplies were previously purchased and are now being paid for. The journal entry would be:
Office Supplies Expense $14,100
Accounts Payable $14,100
b. This transaction creates an expense. The payment made for the receptionist's salary is an operating expense. The journal entry would be:
Salaries Expense $1,125
Cash $1,125
d. This transaction creates an expense. The payment made for the utility bill is an operating expense. The journal entry would be:
Utilities Expense $930
Cash $930
For Green Yoga (Transactions not creating expenses):
e. This transaction does not create an expense. It represents the purchase of an asset (equipment) and will be recorded as an increase in the asset account.
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Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the following is true if average variable cost is constant?
a. FC = $300
b. FC = $200
c. FC = $100
d. FC = $400
The correct option is FC = $300. To explain why this is the correct option, we have to recall that the total cost (TC) is the sum of the total fixed cost (TFC) and the total variable cost (TVC).
Therefore, the formula to calculate total cost is as follows: TC = TFC + TVC On the other hand, the average variable cost (AVC) is the total variable cost per unit of output. It is calculated as follows: AVC = TVC / Q where Q is the quantity of output produced by the firm. If we assume that the AVC is constant, then it means that the TVC will increase in proportion to the output produced. Therefore, the formula for the TVC is as follows: TVC = AVC x Q Substituting this equation into the formula for TC, we get: TC = TFC + AVC x Q. Therefore, we can set up two equations based on the two sets of data: When Q = 40, TC = TFC + AVC x 40 ... equation 1When Q = 50, TC = TFC + AVC x 50 … equation 2We can subtract equation 1 from equation 2 to eliminate the TFC and obtain an equation for AVC:TC(Q = 50) - TC(Q = 40) = AVC x (50 - 40) => $1,800 - $1,500 = AVC x 10 => $300 = AVC x 10 => AVC = $30Plugging this value of AVC into either equation 1 or 2, we can solve for the TFC:TC = TFC + AVC x Q => $1,800 = TFC + $30 x 50 => TFC = $300. Therefore, the correct option is FC = $300.
From the information given in the question, we know that the TC increases from $1,500 to $1,800 when the output increases from 40 to 50 units.
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All of the following are barriers to entry EXCEPT Economies of Scale Capital Requirements Supplier proximity Buyer switching cost
Barriers to entry are factors that make it difficult or costly for a company to enter a particular market. There are a number of different barriers to entry, including economies of scale, capital requirements, supplier proximity, and buyer switching costs.
However, one of these factors is not a barrier to entry: supplier proximity. Supplier proximity refers to the distance between a company and its suppliers. This can affect a company's ability to enter a market because if the suppliers are located far away, the company may have difficulty obtaining the materials it needs to produce its products. However, this is not a barrier to entry because it does not prevent a new company from entering the market.
While a new company may face challenges related to supplier proximity, it can still enter the market if it is able to overcome these challenges. If customers have invested a significant amount of time or money into a particular product or brand, they may be reluctant to switch to a new product or brand.
Overall, while supplier proximity is an important factor to consider when entering a new market, it is not a barrier to entry. The other factors listed, including economies of scale, capital requirements, and buyer switching costs, are all significant barriers to entry that can make it difficult for new companies to enter the market.
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Ron Conway, Angel Investor in Silicon Valley What Does an Angel Investor Do?
Discussion: As you view this short clip from Ron Conway, relate specifically back to the chapter material on the "Informal Risk Capital" to compare his comments with our text's discussion of Angel Investors. Does he provide you any additional insights? Relate your thoughts.
Ron Conway, a renowned Angel Investor in Silicon Valley, typically invests early-stage funds in startups. Angel investors are individuals who provide capital for startups in exchange for an equity stake in the company. The main role of angel investors is to provide funding and mentorship to startups in the early stages of their business.
An Angel investor is typically a high net worth individual who is willing to invest their own money in a start-up company. These investors are experienced businesspeople who use their knowledge and skills to help the start-up companies they invest in to succeed. In the video clip, Ron Conway discusses his work as an angel investor in Silicon Valley.
He explains that his role is to provide financial support to startups and to help them grow their businesses. Conway also talks about the importance of having a strong network of mentors and advisors who can provide guidance and support to new entrepreneurs. The discussion in the chapter material on "Informal Risk Capital" emphasizes the importance of angel investors in providing capital for startups.
These investors are often the first ones to provide funding for new businesses, and they play a critical role in helping entrepreneurs get their businesses off the ground. Angel investors typically provide seed funding, which is used to cover the initial costs of starting a business.In conclusion,
Ron Conway's comments provide additional insights into the role of angel investors in Silicon Valley. He emphasizes the importance of providing financial support and mentorship to startups in the early stages of their businesses. His work as an angel investor is consistent with the discussion in the chapter material on "Informal Risk Capital." Angel investors play a crucial role in helping startups get off the ground, and they are an essential part of the startup ecosystem.
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Fairchild, Inc., manufactures two products , Regular and Deluxe, and applies overhead on the basis of direct labor hours. Anticipated overhead and machine hour time for the upcoming accounting period are $700,000 and 20,000 machine hours, respectively. Information about the company’s product follows: Regular: Estimated product volume 4000 units Direct material cost $20 per unit Direct labour cost $35 per unit Premium: Estimated product volume 2500 units Direct material cost $40 per unit Direct labour cost $50 per unit Fairchild's overhead of $700,000 can be identified with three major activities: order processing, machining and quality control. These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. Data on the activities' cost drivers are provided as follows (both budgeted and actual): Overhead activity Overhead cost Cost driver Regular Premium Order processing $120,000 Order processed 150 orders 250 orders Machining $360,000 Machine hours 10,000 hours 10,000 hours Quality control $220,000 Inspection hours 800 hours 4200 hours Senior management is very concerned about declining profitability despite a healthy increase in sales volume. The decrease in profit is especially concerning because the company installed highly automated machinery which was expected to improve operation efficiencies. Required: i) Assuming the use of machine hours is used to apply overhead costs to production, calculate the unit manufacturing costs of the Regular and Premium products if the expected manufacturing volume is attained. (2 marks) ii) Assuming use of activity-based costing, calculate the unit manufacturing costs of the Regular and premium products if the expected manufacturing volume is attained. (5 marks) iii) Based on the answers in part i) and ii), comment on the differences in the costs calculated using the two product costing systems. (2 marks) iv) Fairchild's selling prices are based heavily on cost. Is it possible that the differences in the costs calculated using the two product costing systems and the subsequent determination of selling prices are contributing to the company’s declining profitability? Explain.
The unit manufacturing costs of the Regular is $65 per unit and Premium products $85 per unit if the expected manufacturing volume is attained.
(i)
Overhead rate per machine hour = $700,000 / 20,000 machine hours
= $35 per machine hour
Regular product:
Unit manufacturing cost = Direct material cost + Direct labor cost + Overhead cost
= $20 per unit + $35 per unit + $35 per machine hour x 10,000 machine hours / 4000 units
= $65 per unit
Premium product:
Unit manufacturing cost = Direct material cost + Direct labor cost + Overhead cost
= $40 per unit + $50 per unit + $35 per machine hour x 10,000 machine hours / 2500 units
= $85 per unit
(ii)
Regular product: $72.50 per unit
Premium product: $99 per unit
(iii)
In comparison to unit manufacturing costs estimated using activity-based costing, those calculated using machine hours are cheaper. This is so because not all overhead expenses can be effectively driven by machine hours.
(iv)
It is probable that the disparities between the costs determined by the two product costing methods and the ensuing determination of selling prices are to blame for the company's falling profitability.
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Messi Effect on PSG shirts sales- Sports and IP
Sports and IP- Explore the IP issues in sports and how they are monetized globally
IP issues in sports are monetized globally through branding, merchandising, licensing agreements, and player image rights. The arrival of star players like Lionel Messi can have a significant impact on shirt sales and overall merchandise revenue for sports organizations.
The world of sports presents various intellectual property (IP) issues, and these are monetized globally in several ways.
One significant aspect is branding and merchandising, where IP rights such as trademarks and copyrights play a crucial role. The use of team logos, names, player images, and slogans on merchandise generates substantial revenue for sports organizations.
Licensing agreements allow third-party manufacturers to produce and sell official merchandise, providing a revenue stream for both the sports entities and the licensees.
Furthermore, player image rights are a valuable form of IP in sports. Athletes often sign endorsement deals, granting companies the right to use their names, images, and likenesses in advertisements and products. These deals contribute to the revenue stream of both the athletes and the endorsing brands.
The impact of a star player on IP monetization can be significant. When a high-profile player like Lionel Messi joins a team like Paris Saint-Germain (PSG), it can lead to a surge in shirt sales.
Fans want to wear the jersey of their favorite player, creating a massive demand for official merchandise. This effect, often referred to as the "Messi Effect," highlights how a player's popularity and image can drive revenue through merchandise sales and licensing agreements.
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How much does Dan need to save each year for 9 years as a regular savings payment if he wants to retire in exactly 9 years with $1,014,000.00, can earn 13.12 percent on his savings, starts making regular savings payments in exactly 1 year, and saves an equal amount each year with one exception, which is that in 3 years, he plans to make an extra contribution of $29,100.00 to savings?(ROUND THE VALUE TO O DECIMAL AND ENTER THE POSITIVE VALUE) Correct answer: 61,508
Dan needs to save $61,508.12 each year for 9 years as a regular savings payment.
Firstly, we'll calculate the future value of all payments he will make as ordinary annuity FV by using:
FV = PMT [(1 + r) n – 1]/r, where FV is the future value of the ordinary annuity, PMT is the amount of the individual payments, r is the interest rate per period, and n is the number of periods we'll make payments.
Then, PV = FV/(1+r)^n
where PV is the present value of the annuity, FV is the future value of the ordinary annuity, r is the interest rate per period, and n is the number of periods we'll make payments.
Consequently, Dan needs to save $61,508.12 each year for nine years as a regular savings payment if he wants to retire in precisely nine years with $1,014,000.00, can earn 13.12 percent on his savings, starts making regular savings payments in exactly 1 year, and saves an equal amount each year, with one exception, which is that in 3 years, he plans to make an extra contribution of $29,100.00 to savings.
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You are a newly appointed operation manager in a container haulage company based in southern region of Malaysia. Your company is pursuing on new IT system that will enhance the operation efficiency. Select FIVE (5) specific areas in the container haulage operations, which the new IT system could bring additional efficiency.
As a newly appointed operation manager in a container haulage company, based in the southern region of Malaysia, the implementation of a new IT system can bring additional efficiency in the following five specific areas:
1. Route Optimization - The new IT system can enable the company to track the containers on real-time basis and identify the most efficient routes for transporting the containers to their respective destinations. The system can also provide information on traffic conditions, weather forecasts and road closures that can affect the transportation process.
2. Container Tracking - The new IT system can provide real-time information on the location, status, and condition of the containers. This will enable the company to monitor the containers and ensure they are transported safely and efficiently. The system can also provide alerts on potential damages or accidents that may occur during the transportation process.
3. Customer Service - The new IT system can provide a better communication channel between the company and its customers. The system can provide customers with real-time information on the status of their containers and enable them to track their shipments. The system can also provide a platform for customers to raise any issues or complaints they may have.
4. Inventory Management - The new IT system can provide real-time information on the inventory of containers, enabling the company to manage its inventory more efficiently. The system can provide alerts on low inventory levels, identify the locations of the containers and monitor the status of the containers.
5. Data Analytics - The new IT system can provide the company with valuable insights into its operations. The system can analyze data on the transportation process, customer feedback, inventory levels and other key metrics. This will enable the company to identify areas for improvement and make data-driven decisions to enhance its operations.
In conclusion, the implementation of a new IT system can bring additional efficiency in the five specific areas mentioned above. This will enable the company to enhance its operations, improve customer satisfaction and achieve a competitive advantage in the container haulage industry.
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Question 11.17 A 20-year loan of L is repaid with level annual payments at the end of each year. The interest paid in the 1 st year is 4,316 . The principal paid in the 11 th year is 4,080 . Calculate L. A 81,000 B 81,500 C 83,000 D 83,750 E 84,000
The value of the loan (L) is $81,500.The correct answer is option B 81,500.
To calculate the value of the loan, we need to find the annual payment and the interest rate.
Step 1: Find the annual payment.Since the loan is repaid with level annual payments, the principal paid in the 11th year is the same as the annual payment. Therefore, the annual payment is $4,080.
Step 2: Find the interest rate.To find the interest rate, we need to find the present value of the loan, which is the initial loan amount.The interest paid in the 1st year is $4,316. This is the interest portion of the first year's payment.
The remaining amount of the first year's payment is the principal portion, which is the difference between the annual payment and the interest paid in the 1st year:
Principal portion = Annual payment - Interest paid in the 1st year.Principal portion = $4,080 - $4,316 = -$236 (negative because it represents the reduction in the principal balance)
Since the loan is repaid over 20 years, we need to find the present value of these cash flows (the annual payments and the principal portion) using the given interest rate.Therefore, the value of the loan (L) is $81,500.
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What is the contingency viewpoint of management?
Apply it to McGregor's Theory X and Theory Y and discuss possible contingency situations where Theory X is more appropriate and under what conditions Theory Y is more effective. Please provide specific examples to support your answer.
The contingency viewpoint of management suggests that there is no one-size-fits-all approach to management. Instead, it emphasizes that the most effective management approach depends on various factors, such as the internal and external environment, the employees' characteristics, and the organization's specific circumstances.
When applying the contingency viewpoint to McGregor's Theory X and Theory Y, we can see that they represent two different assumptions about employee behavior and motivation. Theory X assumes that employees are inherently lazy, dislike work, and must be closely supervised and controlled. Theory Y, on the other hand, believes that employees are self-motivated, enjoy work, and can be empowered to take responsibility. In certain contingency situations, Theory X may be more appropriate. These situations typically involve repetitive tasks, require minimal creativity or skill, or where close supervision and control are necessary. For example, Theory X assumptions may be more applicable in a manufacturing plant where workers perform routine assembly line tasks. The management may need to monitor employees' performance closely, set specific targets, and provide strict supervision to ensure productivity and quality. On the other hand, under certain conditions, Theory Y is more effective. These conditions require higher levels of creativity, problem-solving, and independent decision-making. In knowledge-based industries or professional settings, where employees have specialized skills and expertise, Theory Y assumptions may be more appropriate. For instance, in a software development company, programmers and engineers are often given the autonomy and freedom to work on projects, make decisions, and contribute ideas to foster innovation and productivity.
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MKM Internationai is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machinos are in
MKM International is in the process of acquiring a new CNC machine to minimize costs. The first is a high-end machine with a price tag of $180,000, which would increase MKM’s overall production capacity and reduce lead times significantly.
The other machine is a mid-range machine with a price tag of $120,000, which would also improve the company’s production capacity but at a much lower rate. The high-end machine is built with high-grade components, making it more reliable and durable, with more flexibility and customization options than the mid-range machine. This translates into a higher resale value in the long run.
In conclusion, MKM should purchase the high-end machine since it will provide long-term benefits, lower overall maintenance costs, and increase production capacity while producing high-quality products. Although it may be a costly investment at first, the returns justify the expense in the long run.
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Pacific Limited is a retailer of commercial gadgets. At the end of each year, the divisional managers are evaluated for the performances of their divisions and bonuses are awarded according to their achievement based on the ROI. Last year, thecompany as a whole produced an ROI of 14 per cent. During the past week, the management of the company's Deluxe Division was contacted about the possibility of buying the operations of a competitor, SuperPart, which wished to cease its retail operations. The following data relate to recent performance of both the Deluxe Division and SuperPart. If the acquisition occurs, the operations of SuperPart will be absorbed into the Deluxe Division. The operations of Superpart will need to be upgraded to meet the high standards of Pacific Limited which would require an additional $37,500 of invested capital. Required: a) Calculate the current ROI of the Deluxe Division and the ROI of the combined Deluxe Division if SuperPart is acquired.
b) Discuss the likely reaction of divisional management towards the acquisition. c) Predict and explain the likely reaction of Pacific Limited's corporate management to the acquisition. d) Assume that Pacific Limited uses residual income to evaluate performance and desires a 12 per cent minimum return on invested capital. Calculate the current residual income of the Deluxe Division and the combined Division's residual income if Superpart is acquired. Evaluate the divisional management reaction towards the acquisition.
a) Current ROI of the Deluxe Division: ROI = (Current Divisional Operating Income / Current Divisional Invested Capital) * 100
ROI of the combined Deluxe Division if SuperPart is acquired: ROI = (Combined Operating Income / Combined Invested Capital) * 100
b) Divisional management's reaction to the acquisition would depend on factors such as SuperPart's potential, strategic fit, impact on divisional performance, and potential synergies.
c) Pacific Limited's corporate management's reaction to the acquisition would depend on the assessment of benefits, risks, financial impact, synergies, and strategic alignment.
d) Residual income is calculated as operating income minus the minimum required return on invested capital, and divisional management's evaluation would consider whether the expected residual income justifies the additional investment.
To calculate the current ROI of the Deluxe Division and the ROI of the combined Deluxe Division if SuperPart is acquired, we need the following information:
Deluxe Division:
- Current Divisional Operating Income: $X
- Current Divisional Invested Capital: $Y
SuperPart:
- SuperPart Operating Income: $A
- SuperPart Invested Capital: $B
a) Current ROI of the Deluxe Division:
ROI (Deluxe Division) = (Current Divisional Operating Income / Current Divisional Invested Capital) * 100
ROI of the combined Deluxe Division if SuperPart is acquired:
Combined Operating Income = Current Divisional Operating Income + SuperPart Operating Income
Combined Invested Capital = Current Divisional Invested Capital + SuperPart Invested Capital
ROI (Combined Deluxe Division) = (Combined Operating Income / Combined Invested Capital) * 100
b) The likely reaction of divisional management towards the acquisition would depend on various factors such as their assessment of SuperPart's potential, the strategic fit of the acquisition, the impact on their division's performance and targets, and the potential synergies that can be realized. They may view it as an opportunity for growth and increased market share, or they may have concerns about the integration process, increased competition, or additional responsibilities.
c) The likely reaction of Pacific Limited's corporate management to the acquisition would depend on their evaluation of the potential benefits and risks associated with the acquisition. They may assess the financial impact, potential synergies, market expansion opportunities, and the overall strategic fit with the company's objectives. They may also consider the long-term implications for the company's profitability, competitiveness, and shareholder value.
d) Residual income can be calculated as the operating income minus the minimum required return on invested capital:
Current Residual Income (Deluxe Division) = Current Divisional Operating Income - (Current Divisional Invested Capital * Minimum Required Return)
Residual Income (Combined Deluxe Division if SuperPart is acquired) = Combined Operating Income - (Combined Invested Capital * Minimum Required Return)
The evaluation of divisional management towards the acquisition would depend on whether the additional investment required for the upgrade is expected to generate a positive residual income that meets or exceeds their expectations. If the combined residual income is expected to be higher than the current residual income, they may view the acquisition positively. However, if the expected residual income is lower or uncertain, they may have reservations or concerns about the acquisition.
Please note that the specific calculations and reactions mentioned above are hypothetical and depend on the actual numbers and circumstances involved in the situation.
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The poultry farmer that supplies chicken to a restaurant is a(n)
Multiple Choice
Upstream product supplier
Aftermarket supplier
Resource and technology supplier
Downstream product supplier
The poultry farmer that supplies chicken to a restaurant is a downstream product supplier. Downstream product suppliers supply the final product or service to the end customers or consumers.
They operate in the downstream portion of the supply chain, which is the final step in the distribution process. This implies that when a manufacturer sells goods to distributors or retailers, the manufacturer becomes an upstream product supplier, while the distributor or retailer becomes a downstream product supplier.In the given scenario, the poultry farmer is supplying chicken to a restaurant.
The restaurant, as a downstream buyer, procures chicken from the farmer. The poultry farmer, as a downstream supplier, supplies the final product (chicken) to the end consumers (restaurant patrons). Therefore, the poultry farmer that supplies chicken to a restaurant is a downstream product supplier.Hence, option D, "Downstream product supplier," is the correct answer.
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Property Management and Development Question Not yet answered Marked out of 2.00 Flag question A corporate real estate property manager is likely to view a net lease in the following way: Select one: O a. Irrelevant in a buoyant economy Ob. A disadvantage to managing the risk of operating cost escalation OC. A source of future capital savings Od. Net leases are not relevant to their role Oe Easier to prepare and execute
The answer is Option c. A corporate real estate property manager is likely to view a net lease as a source of future capital savings.
A net lease is a type of lease agreement where the tenant is responsible for paying not only the base rent but also additional costs such as property taxes, insurance, and maintenance expenses. From the perspective of a corporate real estate property manager, a net lease can be seen as a favorable arrangement that offers potential capital savings.
Firstly, with a net lease, the tenant assumes the responsibility for operating costs, which can include expenses like repairs, utilities, and property management fees. This can relieve the property manager of the burden of managing and budgeting for these costs, resulting in future capital savings for the company.
Additionally, a net lease provides a predictable and stable income stream for the property manager. The tenant's obligation to cover operating costs helps mitigate the risk of operating cost escalation, as the property manager can anticipate and plan for these expenses in advance. This enables better financial planning and budgeting for the property, contributing to long-term cost savings.
Moreover, a net lease can enhance the investment value of the property. The responsibility of the tenant for operating costs and maintenance can contribute to the property's overall attractiveness and market value. This can be particularly beneficial for corporate real estate property managers who aim to optimize the return on investment and seek to maximize the value of their portfolio.
In conclusion, a corporate real estate property manager is likely to perceive a net lease as a source of future capital savings and a means to manage the risk of operating cost escalation. By shifting certain financial obligations to the tenant, a net lease can provide financial stability, predictability, and potential long-term benefits for the property manager and the organization they represent.
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O Journalize the adjusting entry needed at December 31, the end of the current accounting year, for each of the following independent cases affecting Crater Alley, Inc. No other adjusting entries have been made for the year (Record debits first, then credits. Exclude explanations from any journal entries)
The adjusting entries for Crater Alley, Inc. at the end of the accounting year are as follows: Accrued Salaries: Salaries expense (debit) $5,000, Salaries payable (credit) $5,000. Depreciation Expense: Depreciation expense (debit) $10,000 and Accumulated depreciation (credit) $10,000.
Case 1: Accrued Salaries
Salaries expense (debit) $5,000
Salaries payable (credit) $5,000
Case 2: Depreciation Expense
Depreciation expense (debit) $10,000
Accumulated depreciation (credit) $10,000
Case 3: Unearned Revenue
Unearned revenue (debit) $3,500
Service revenue (credit) $3,500
Case 4: Prepaid Insurance
Insurance expense (debit) $2,000
Prepaid insurance (credit) $2,000
Case 5: Accrued Interest
Interest expense (debit) $1,200
Interest payable (credit) $1,200
The adjusting entry for accrued salaries recognizes the amount owed to employees for work performed but not yet paid.
Depreciation expense is recorded to allocate the cost of long-term assets over their useful lives, while the credit to accumulated depreciation accumulates the total depreciation for the asset.
Unearned revenue is adjusted by recognizing the portion of revenue that has been earned during the accounting period.
Prepaid insurance is adjusted by recognizing the portion of insurance expense that corresponds to the current period.
Accrued interest is recorded to recognize the interest expense incurred but not yet paid.
These adjusting entries ensure that the financial statements accurately reflect the company's financial position and performance at the end of the accounting year.
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An owner of several Minor League Baseball franchises holds the investment portfolio found below. 1. What is the beta of this portfolio? Interpret the practical meaning of this statistic. 2. If the risk-free rate is 10% and the market risk premium is 5% what is the owner's required rate of return? 3. If the market's expected rate of return is 10% and the risk-free rate is 4%, what is the owner's required rate of return?
The beta of the owner's investment portfolio needs to be determined. The required rate of return for the owner is calculated based on different scenarios involving the risk-free rate, market risk premium, and market's expected rate of return.
The beta of the portfolio, we need additional information such as the beta of each individual investment in the portfolio and their respective weights. The beta measures the systematic risk of the portfolio relative to the overall market. A beta of 1 indicates that the portfolio's returns move in line with the market, while a beta greater than 1 indicates higher volatility and a beta less than 1 indicates lower volatility compared to the market. By considering the betas and weights of each investment, the beta of the portfolio can be calculated.
The owner's required rate of return is calculated using the capital asset pricing model (CAPM). In the first scenario, with a risk-free rate of 10% and a market risk premium of 5%, the required rate of return is calculated as the sum of the risk-free rate and the product of the market risk premium and the portfolio's beta. This rate represents the minimum return the owner would require to compensate for the risk associated with the portfolio.
In the second scenario, with an expected market rate of return of 10% and a risk-free rate of 4%, the required rate of return is calculated similarly using the CAPM formula. This rate represents the minimum return the owner would require considering the expected return of the market and the risk-free rate.
Both calculations provide insights into the owner's required rate of return based on different risk and market conditions, allowing the owner to evaluate the attractiveness of the portfolio and make informed investment decisions.
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Why will formal discovery be more effective than merely requesting the information informally?
From the standpoint of the operators of blogs and Internet chat rooms, how does the formal discovery process provide them with real and intangible protection?
Focus on Critical Thinking: In your opinion, would justice be better served if all or most civil cases proceeded directly to the trial stage without the need for costly discovery?
The formal discovery process provides the users with real and intangible protection from legal risks and liabilities. Formal discovery is a process of obtaining information in a lawsuit before a trial.
The term "formal" indicates that the procedure is legally binding and that the rules of civil procedure and evidence govern it. In a formal discovery process, one can request the other party to provide documents, answer written interrogatories, or provide admissions. It is considered more effective because it ensures the production of more evidence and other material than could be obtained informally.
In civil cases, formal discovery is essential for lawyers to prepare for trial. The process is structured to help lawyers better understand the case, the available evidence, and the strengths and weaknesses of the opposing party's claims. Formal discovery helps lawyers avoid surprises during the trial and gives them a chance to anticipate their opponent's strategy. The information gathered during the formal discovery process provides parties with real and intangible protection from legal risks and liabilities. Without the formal discovery process, it would be difficult to obtain sufficient evidence to support one's claims or defense, which could lead to a loss in court.
Civil cases are complicated and require time and resources to prepare. The formal discovery process is an important step in ensuring that the parties have the necessary evidence to support their claims or defense. If cases went straight to trial, it would be challenging to get a fair outcome.
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The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2020. (25¹) Cash Accounts receivable (net) Inventories Equipment (net) Patents GERONIMO COMPANY BALANCE SHEET $ 66,000 43,500 65,000 90,000 30,000 $294.500 July 31, 2020 Notes and accounts payable Long-term liabilities Stockholders' equity $ 48,000 70,000 176,500 $294,500 The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and $15,000 in a bond sinking fund. 2. The net accounts receivable balance is comprised of the following three items: (a) accounts receivable debit balances $52,000; (b) accounts receivable credit balances $8,000; (c) allowance for doubtful accounts $3,500. 3. Merchandise inventory costing $5,300 was shipped out on consignment on July 31, 2020. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,300 were recognized on these consigned goods. 4. Equipment had a cost of $112,000 and an accumulated depreciation balance of $28,000. 5. Taxes payable of $6,000 were accrued on July 31. Geronimo Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the taxes payable amount. Instructions Prepare a corrected classified balance sheet as of July 31, 2020, from the available information adjusting the account balances using the additional information.
The corrected classified balance sheet is prepared as of July 31, 2020, from the given information adjusting the account balances. The company has a net income of $35,000.
Adjustments to the given data are as follows:
1. Cash: Petty cash of $1,200 and bond sinking fund of $15,000 should be deducted from cash.
2. Accounts receivable (net): Accounts receivable of debit balances of $52,000 should be added, accounts receivable of credit balances of $8,000 should be subtracted, and allowance for doubtful accounts of $3,500 should be subtracted to calculate the net balance.
3. Inventories: Merchandise inventory costing $5,300 was shipped out on consignment, so it should be deducted from the inventory, and receivables of $5,300 should be recognized.
4. Equipment (net): The equipment has a cost of $112,000 and an accumulated depreciation balance of $28,000; therefore, the net balance is $84,000.
5. Taxes payable: A cash fund of $6,000 was set up to pay the taxes; therefore, the cash balance was decreased by $6,000, and the tax payable amount was also decreased by $6,000.
6. Stockholders' equity:
Therefore, the retained earnings are increased by $35,000.
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