Answer:(1) Decrease (2) Increase (3) Decrease (4) Decrease (5) Not chanhe
Explanation: This tries to describe a free market economy,where price, quantity demanded and quantity supplied are influenced by the market forces. The improved productivity of the Sugarcane which is a major raw material for sugar production is increased,the cost of production of Sugarcane will decrease as productivity increases,the quantity supplied to the market will increase leading to decreased price for all sugar value chain. The price for Honey a sweetener will also decrease responding the increased demand for sugar but the price for textile will not change because it is not a substitute for sugar.
Answer:
The journal entry in respect of the factored debt is shown below:
Dr Cash $95,000
Dr Factoring cost $5000
Cr Accounts receivable $100,000
Explanation:
The factoring of accounts receivable implies that a finance company known as factor takes responsibility for chasing debtors for payments in return for a 5% charge of the accounts receivable.
Since factoring transfers accounts receivable to factoring comparing, accounts receivable is credited with face value of the debt,an inflow of cash from the factor is debited to cash account while also debiting the difference debt and cash received to a factoring expense account.
This avails the company quick access to cash receivable later.
Answer:
$7,200,000
Explanation:
Given that,
Common stock = $5,400,000
Retained earnings = $2,000,000
Unrealized gains on trading securities = $100,000
Unrealized losses on available for sale securities = $200,000
Stockholder's equity:
= Common stock + Retained earnings - Unrealized losses on available for sale securities
= $5,400,000 + $2,000,000 - $200,000
= $7,200,000
Note that:
Unrealized gains on trading securities should be presented on the income statement. Hence, the ending retained earnings balance was already been adjusted with Unrealized gains (losses) on trading securities.
Unrealized losses on available for sale securities not included in the income statement and it directly goes to the balance sheet.
Answer:
The optimal production batch size for the supplier is 980 units.
Explanation:
In order to calcuate the optimal production batch size for the supplier we have to use the following formula:
optimal production batch size= 
(<u>2×Annual Demand×setup cost)</u>
Holding Cost
optimal production batch size= (<u>2×(1,000×12)×($250×4)</u>
($100×25%)
optimal production batch size=(<u>2×12,000×$1,000)</u>
$25
optimal production batch size= 980 units
