Answer:
(a)
Dr Cash $10,032.30
Cr Cash Over and Short$74.90
Cr Sales Revenue $10,107.2
(b)
Dr Cash $10,148.54
CrSales Revenue$10,107.2
Cr Cash Over and Short$41.34
Explanation:
Kingbird Industries
(a)
Dr Cash $10,032.30
Cr Cash Over and Short$74.90
Cr Sales Revenue $10,107.2
($10,032.30+$74.90)
(b)
Dr Cash $10,148.54
(10,107.2+$41.34)
CrSales Revenue$10,107.2
Cr Cash Over and Short$41.34
Answer:
Lower.
Explanation:
The capitalization rate is mainly used in real estate and is a measure of the rate of return on a property, based on the net operating income it is expected to generate.
Johnson in appraising two parcels of property, leased one to the government for use as a post office while the other parcel of property, is leased to a private owner for use as a hardware store. Having the knowledge that the parcels have recently started long-term leases. The capitalization rate of the post office property used by the government as compared to the capitalization rate of the hardware store property used by the private owner will be lower.
The capitalization rate of the post office property would be lower because, real-estate investors will not expect much returns on the investment as it's a less risky investment. The post office is less likely than a hardware store to run out of business or go bankrupt by virtue of being a governmental agency or public company.
Hence, the hardware store will need a higher capitalization rate in comparison with post office property.
Answer:11.82%
Explanation:
Yr C/ flow int Amount
1 7400. 1.08^2 8631.
2 11600. 1.08^1. 12,528
3 -3,200. 1 -3,200
Total reinvested amount
17959
MIRR=modified internal rate of return=
(17,959/12,800)^1/3-1
=1.1182-1=0.1182=11.82%
Answer:
Explanation:
Suppose there is one perfect competitive market for wheat There are 90 firms in that industry.
Consider the Table 1 given below:
Table 1: Industry supply
MC individual Quantity (9) Industry quantity (Q)
25 30 30*90=2,700
40 35 35*90=3,150
55 40 40*90=3,600
70 45 45*90=4,050
Take possible MC (Marginal cost) with their respective individual. Calculate the industry supply by multiplying 90 with the firm's individual quantities as shown in Table 1 above.
Going by the graphical diagram in the attached image below, we can derive that:
The orange line represents the industry supply. The lower and higher orange represents the lowest and highest quantity respectively.
The intersection industry demand and industry supply gives the short run price and quantity
Therefor, the short run price and quantity are $40 and $3,150 respectively. This and can be shown with dotted black line.
So Therefore
At the current short run market price, the firms will produce in short run because this price is above the average variable cost
In the long, some firms will exit the market, given the current market price.
Answer:
Direct labor time (efficiency) variance= $4,375 unfavorable
Explanation:
Giving the following information:
Standard
Direct labor...........................................1.4 hours at $12.50 per hour
Direct labor-hours worked: 5,600 hours for $67,200.
units produced= 3,750
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
standard quantity= 1.4*3,750= 5,250
Direct labor time (efficiency) variance= (5,250 - 5,600)*12.5
Direct labor time (efficiency) variance= $4,375 unfavorable
