Answer:
$51
Explanation:
Data provided:
Sales function as: ( q = −p + 136 ) million phones
here, p is price in dollars
a) supply function as: ( q = 9p - 374 ) million phones
now,
for equilibrium price, the supply should be equal to the sales
i.e
−p + 136 = 9p - 374
or
136 + 374 = 9p + p
or
10p = 510
or
p = $51
Hence, the equilibrium price should be $51
Answer:
1.Dr Cash $56,000
Cr Common stock $4,000
Cr Paid-in capital in excess of par $52,000
2.
Dr Cash $56,000
Cr Common stock no par value $56,000
Explanation:
The cash proceeds from the issue of common stock is $14*4000=$56,000
Consequently, the cash account is debited with $56,000 and corresponding credit entries would to common stock account with $4,000($1*4000) and paid-in capital in excess of par $52,000($14-$1)*4000))
However,when there is no par amount the $56,000 cash proceeds is debited to cash account and credited to common stock no par value account
Answer: $14,625
Explanation:
Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:
= Budgeted annual cost/200 × Number of shipping work stations
= 65000/200 × 45
= $14,625
Answer:
Explanation:
Horizontal analysis
December31/14 December31/13 Amount Incre. %incre.
over base over base
Net sales 600000 500000 100000 20.00%
Cost of goods sold414000 350000 64000 18.29%
Gross Profit 186000 150000 36000 24.00%
Operating Expensese 150000 120000 30000 25.00%
Net Income 36000 30000 6000 20.00%
Looking at the table above you’ll notice that the company is showing a healthy growth in all the figures bott at the top line as well as bottom line. The percentage in gross profit has increased and even higher than the % net sales increase over last year. This clearly reveals that the company has enhanced its economy of scale. But this enhancement has been invalidated by the corresponding increase in the operating expenses %.
Vertical analysis (having net sales as base)
Net sales 100% 100%
Cost of goods sold 69.00% 70.00%
Gross Profit 31.00% 30.00%
Operating Expenses 25.00% 24.00%
Net Income 6.00% 6.00%
There is not much variation in vertical analysis. The companies performance here is stable as last year.
Answer:
E. We can't be sure how the project is going
Explanation:
This numbers alone are not sufficient information to evaluate the project.
We could be spending less because we saved cash in a part of the project, because there are unpaid expenses which are not due yet. There could a series of factor involving this difference. This is only saying the project has available from their original budget 5,000 more dollars. It could spend this without incurring in additional cash spending. Going beyond this will require some kind of approval from the managers.
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<u>Resuming:</u> the only conclusion from this, is that the project has available 5,000 dollars to spend if necessary. We cannot know if the project is going well or not.
