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2 years ago

Which of the following statements is NOT true?

Business

1 answer:

zubka84 [21]2 years ago

5 0

Answer:

Letter b is correct.

Explanation:

The affluence effect is dependent on the slope of aggregate demand, that is, when price decreases increase and the consumer gains more purchasing power to consume more goods and services. In the economic cycle, there are several other variants that determine economic activities, not just a single variable such as price, but a set of variables such as the amount of resources and capital and the volume of production.

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I'm having a difficult time with my accounting workbook. I post the adjusting entries, but my balance sheet never equalizes. Can

Marta_Voda [28]

Answer:

PEYTON APPROVED

TRIAL BALANCE

As of December 31, 2017

Unadjusted Adjusting Adjusted

Trial balance Entries Trial balance

Dr Cr ref Dr Cr ref Dr Cr

Cash 67,520.04 3 1,000 68,520.04

Accounts Receivable 68,519.91 68,519.91

Other Receivable -

Insurance Baking

Supplies 15,506.70 15,506.70

Merchandise

Inventory 1,238.07 1 3,175 1 4,413.07

Consignment

Inventory 2 200 2 200

Prepaid Rent 2,114.55 2,114.55

Prepaid Insurance 2,114.55 2,114.55

Misc. Supplies 170.49 170.49

Baking Equipment 14,000.00 4 2,000 4 12,000.00

Accumulated Depreciation 1,606.44 4 4 406.44

Customer Deposit

- Accounts Payable 20,262.11 20,262.11

Wages Payable 3,383.28 3,383.28

Interest Payable 211.46 211.46

Notes Payable 5,000.00 5,000.00

Common Stock 20,000.00 20,000.00

Beginning Retained

earnings 50,144.84 50,144.84

Dividends 105,000.00 105,000.00

Bakery Sales 327,322.55 327,322.55

Merchandise Sales 1,205.64 1,205.64

Cost of Goods

Sold - Baked 105,834.29 105,834.29

Cost of Goods

Sold -

Merchandise 859.77 859.77

Rent Exp. 24,549.19 24,549.19

Wages Exp. 10,670.72 10,670.72

Misc. Supplies

Expense 3,000.46 3,000.46

Business

License

Expense 2,045.77 2,045.77

Misc.

Expense 1,363.84 1,363.84

Depreciation

Expense 677.86 677.86

Insurance

Expense 1,091.08 1,091.08

Advertising

Expense 1,549.74 1,549.74

Interest

Expense 818.31 818.31

Telephone

Expense 490.98 490.98

Gain/Loss on

disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32

Explanation:

a) Data and Calculations:

PEYTON APPROVED

TRIAL BALANCE

As of December 31, 2017

Unadjusted trial balance Adjusting entries Adjusted trial balance

Dr Cr ref Dr Cr ref Dr Cr

Cash 67,520.04 67,520.04

Accounts Receivable 68,519.91 68,519.91

Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70

Merchandise Inventory 1,238.07 1,238.07

Consignment Inventory Prepaid Rent 2,114.55 2,114.55

Prepaid Insurance 2,114.55 2,114.55

Misc. Supplies 170.49 170.49

Baking Equipment 14,000.00 14,000.00

Accumulated Depreciation 1,606.44 1,606.44

Customer Deposit - Accounts Payable 20,262.11 20,262.11

Wages Payable 3,383.28 3,383.28

Interest Payable 211.46 211.46

Notes Payable 5,000.00 5,000.00

Common Stock 20,000.00 20,000.00

Beginning Retained earnings 50,144.84 50,144.84

Dividends 105,000.00 105,000.00

Bakery Sales 327,322.55 327,322.55

Merchandise Sales 1,205.64 1,205.64

Cost of Goods Sold - Baked 105,834.29 105,834.29

Cost of Goods Sold - Merchandise 859.77 859.77

Rent Expense 24,549.19 24,549.19

Wages Expense 10,670.72 10,670.72

Misc. Supplies Expense 3,000.46 3,000.46

Business License Expense 2,045.77 2,045.77

Misc. Expense 1,363.84 1,363.84

Depreciation Expense 677.86 677.86

Insurance Expense 1,091.08 1,091.08

Advertising Expense 1,549.74 1,549.74

Interest Expense 818.31 818.31

Telephone Expense 490.98 490.98

Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32

b) The adjustments are made in the Adjusting entries column and referenced accordingly, while the effect is reflected in the adjusted trial balance column.

3 0

2 years ago

The following information is from the 20X1 annual report of Weber Corporation, a company that supplies manufactured parts to the

DENIUS [597]

Answer:

ROA for 20X1= 10%

Profit margin for 20X1= 5%

Assets turnover= 2

ROA for the coming year= 11.25%

Explanation:

Weber corporation return on assets for 20X1 can be calculated as follows

ROA= Net income/Average total assets × 100

= 2,450,000/24,500,000 × 100

= 0.1 × 100

= 10%

The profit margin can be calculated as follows

= Net income/sales × 100

= 2,450,000/49,000,000 × 100

= 0.05 × 100

= 5%

The assets turnover ratio can be calculated as follows

= Sales/Average Total assets

= 49,000,000/24,500,000

= 2

The company ROA if when the turnover rate for next year is2.25 and the profit margin remain unchanged can be calculated as follows

= profit margin × assets turnover ratio

= 5% × 2.25

= 11.25%

8 0

2 years ago

You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. T

jasenka [17]

Answer:

E. The aftertax salvage value is $81,707.76.

Explanation:

The computation is shown below:

Accumulated depreciation is

= $287,000 × ( .2 + .32 + .192 + .1152)

= $237.406.40

Now the book value is

= Purchase value - accumulated depreciation

= $287,000 - $237,406.40

= $49,593.60

And, the selling value is $99,000

So after tax salvage value is

= Salvage value - (Salvage value - book value) × tax rate

= $99,000 - ($99,000 - $49,593.60) × 35%

= $81,707.76.

6 0

2 years ago

For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to s

Viefleur [7K]

Answer:

Swen is using product/service repositioning strategy.

Explanation:

Product Repositioning simply refers to the art of altering the target markets perception of one's product and or services.

Swen is still in the clothing business. He has only changed the way he delivers it to the target consumers.

Of course, this sometimes calls for a change in product mix (which refers to altering the type of products being offered). However, the central idea of the strategy still holds as customers now see the business differently.

This type of strategy is easier to pull off for start-ups, or unpopular businesses trying to make a comeback. Where the business is a well-established brand, it can prove extremely difficult and may be costly.

Cheers.

4 0

2 years ago

On January 1, 2017, Christel Madan Corporation had inventory of $56,000. At December 31, 2017, Christel Madan had the following

lara [203]

Answer:

Gross Profit = $304,050

Operating expenses = $162,050

Explanation:

The computation of gross profit and operating expenses is shown below:-

Net purchases = Purchase - Purchase discounts - Purchase returns and allowances

= $505,500 - $7,250 - $3,500

= $494,750

Cost of goods sold = Net purchases + Freight-in + Inventory + Ending inventory

= $494,750 + $4,100 + $56,000 - $66,000

= $488,850

Gross profit = Net sales - Cost of goods sold

= ($810,000 - $5,100 - $12,000) - $488,850

= $304,050

Operating expenses = Gross profit - Net income

= $304,050 - $142,000

= $162,050

7 0

2 years ago

Which of the following statements is NOT​ true?

Which of the following statements is NOT true?