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2 years ago

Normative and positive statements

Business

1 answer:

shepuryov [24]2 years ago

3 0

Answer:

1. Breast cancer is the fifth most common cause of cancer death - Positive statement

2. For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality - Positive statement

3. Doctors should encourage women aged 60 to 69 to be screened for breast cancer - Normative statement

4. The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer - Normative statement

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R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is runni

Nata [24]

Answer:

a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?

The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes cost of goods sold when the goods are actually sold, not when they are purchased.

Since the company uses the LIFO (last in, first out) inventory method, all it will do is increase the value of ending inventory which changes into beginning inventory next year. You can reduce next year's income more by purchasing the goods next year.

b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?

If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little, therefore, decreasing net income, but the effects shouldn't be significant.

c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?

It is useless, and he should know it. The only implication is that this will help him realize his low IQ.

6 0

2 years ago

Say that you purchase a house for $212,000 by getting a mortgage for $190,000 and paying a $22,000 down payment. If you get a 30

guapka [62]

Answer:

1) Monthly payments:

  $Payment=\$1,394.15$ 

2) Balance in ten years:

  $Balance=\$166,676.94$ 

Explanation:

1. What are the monthly payments?

The formula to compute the monthly payment of a loan is:

$Payment=Loan\times \dfrac{r(1+r)^n}{(1+r)^n-1}$

Where:

Payment is the monthly payment
r is the monthly interes rate: 8% / 12 = 0.08/12
n is the number of months: 12 × 30 = 360
Loan = $190,000

Substitute and compute:

$Payment=\$ 190,000\times \dfrac{r(1+(0.08/12))^{360}}{(1+(0.08/12))^{360}-1}$

$Payment=\$1,394.15$

2. What would the loan balance be in ten years?

There is a formula to calculate the balance in any number of years:

$Balance=Loan(1+r)^n-Payment\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]$

Substitute with n = 10 × 12 and compute:

$Balance=\$190,000(1+(0.08/12))^{(10\times 12)}-\$1,394.15\times \bigg[\dfrac{(1+(0.08/12))^{(10\times 12)}-1}{(0.08/12)}\bigg]$

$Balance=\$166,676.94$

3 0

2 years ago

On January 1, 2020, a company buys a piece of equipment costing $666,633 with a 14% installment note. The note will be paid off

adoni [48]

Answer:

Installment Note Schedule:

Period Beginning Balance Interest Principal Ending Balance

1. Year #1 $666,633.00 $46,664.31 $93,192.49 $573,440.51

2. Year #1 $573,440.51 $40,140.84 $99,715.97 $473,724.54

3. Year #2 $473,724.54 $33,160.72 $106,696.09 $367,028.45

4. Year #2 $367,028.45 $25,691.99 $114,164.81 $252,863.64

5. Year #3 $252,863.64 $17,700.45 $122,156.35 $130,707.29

6. Year #3 $130,707.29 $9,149.51 $130,707.29 $0.00

Explanation:

a) Data and Calculations:

Cost of equipment = $666,633

Rate of interest = 14%

Payment terms = semiannual payments over three years

Payment for each period = $139,857

Loan Amount $666,633

Loan Term 3 years 0 months

Interest Rate 14

Compound Semi-annually

Pay Back Every 6 Months

Results:

Payment Every 6 Months = $139,856.80 = $139,857 approx.

Total of 6 Payments = $839,140.82

Total Interest = $172,507.82

4 0

2 years ago

A nation seeking to increase its overall productivity might be best served by investing money into which area?

Vilka [71]

A nation seeking to escalate its overall productivity might be best assisted by investing money into technology. Developments and advances in technology which interprets into a more productive economic activity as creation and delivery of goods and services are improved.

4 0

2 years ago

Read 2 more answers

Lucia is using cost-volume-profit analysis to predict profits for a new product line. Which of the following reflect how Lucia’s

tino4ka555 [31]

Lucia’s analysis is subject to assumptions because(c) The analysis lacks validity if the total fixed costs required for the calculated break-even point generates too low of capacity.

Explanation:

Cost-volume-profit analysis is used to make short-term decisions.

Cost-volume-profit (CVP) analysis is used to study the changes in cost and volume and how its impact on the company's operating income and net income.

While performing Cost-volume-profit (CVP) analysis several assumptions are made like assuming the Sales price per unit to be constant. Variable costs per unit to be constant.

The five basic component of CVP analysis includes

volume or level of activity
unit selling price
variable cost per unit
total fixed cost
sales mix.

5 0

2 years ago