Which of these components does a business exclude from its net income under operating surplus

The supply function for good X is given by Q x s = 200 + 4P X - 3P Y - 5P W, where P X is the price of X, P Y is the price of go

MissTica

Answer: 1300

Explanation:

From the equation,

Qxs = 200 + 4Px - 3Py - 5Pw

where

Px = price of X = 500

Py = price of y = 250

Pw = price of input w = 30

Putting the figures back into the supply equation, we have:

Qxs = 200 + 4Px - 3Py - 5Pw

= 200 + 4(500) - 3(250) - 150

= 200 + 2000 - 750 -150

Qxs = 1300

8 0

2 years ago

Read 2 more answers

Mr. David decision to increase inventory holdings resulted from the consistent pressure of Golden Cup’s Board of Directors to in

vitfil [10]

Answer:

the information is missing, so I looked for a similar question and found the attached image:

a) days inventory on hand = (average inventory / cost of goods sold) x 365 = ($14,000 / $120,000) x 365 = 42.58 days

b) inventory turnover ratio = cost of goods sold / average inventory = $120,000 / $14,000 = 8.57

I agree with Mr. David because the inventory turnover ratio of Golden Cup is already higher than the industry's average. That means that Golden Cup's current inventory level is appropriate and increasing it would only result in higher costs but would have very little influence on the company's sales.

7 0

2 years ago

If you were advising which actions a company should take to perform value chain activities more cost effectively, you would not

Shalnov [3]

Answer: redesign its products to eliminate those features that might have market appeal, but would excessively increase production costs.

Explanation:

The main aim of every organization are typically cost minimization and profit maximization. If I wanted to advise a company on the kind of actions to take to perform value chain activities more cost effectively, I'll tell them to improve their supply chain efficiency as well as use economies of scale and effective utilization of its resources.

Therefore, redesigning its products to eliminate those features that might have market appeal, but would excessively increase production costs is wrong as this will only lead to increase in cost.

4 0

2 years ago

You have a client whose business uses accrual-basis invoicing and accounts receivable workflow. They use the Banking screen to e

PIT_PIT [208]

Answer: Their Accounts Receivable balance will not be accurate.

The income account will show duplicate income.

Explanation:

Based on the information given in the question, the problem that this will cause is that there'll be an incorrect balance that is shown in the balance of the accounts receivable.

Also, there'll be a duplicate income entry that is created in the income account.

3 0

2 years ago

On January 1, 2022, Harvee Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Harvee Comp

Alexxandr [17]

Answer:

Jan. 5

Dr Account Receivable $4,000

Cr Sales $4,000

(to record sales to Rian)

Feb. 2

Dr Promissory note Receivable $4,000

Cr Account Receivable $4,000

(to record acceptance of Rian company's note)

Feb. 12

Dr Promissory note Receivable $12,000

Cr Sales $12,000

(to record sales to Cato company through acceptance its notes)

Feb. 26

Dr Account Receivable $5,200

Cr Sales $5,200

(to record sales to Malcolm)

Apr. 5

Dr Promissory note Receivable $5,200

Cr Account Receivable $5,200

( to record acceptance of Malcolm notes)

Apr. 12 ( assume Cato's note is collected)

Dr Cash $12,200

Cr Promissory note Receivable $12,000

Cr Interest Income $200

(to record the collection of Cato's note)

June. 2 ( assume Rian's note is collected)

Dr Cash $4,120

Cr Promissory note Receivable $4,000

Cr Interest Income $120

(to record the collection of Rian's note)

Jul. 5

Dr Cash $5,304

Cr Promissory note Receivable $5,200

Cr Interest Income $104

(to record the collection of Malcolm's note)

Explanation:

The calculation of Interest income from the Notes of the three companies as followed:

Rian: 4,000 x 9% x 4/12 = $120

Cato: 12,000 x 10% x 2/12 = $200

Malcolm: 5,200 x 8% x 3/12 = $104.

Further explanation has been put as description under each journal entries listed above.

Cost of goods sold is not included for each sales entries as guided in the question.

5 0

2 years ago