Continuing with the company selected in Unit 2, think about the types of financial data that would be included and excluded in d

Response:

a. The remaining store supplies at the end of the fiscal year total $2,550.

Debit Supplies expense 2,550

    Credit Supplies 2,550

b. For the fiscal year, the amount for expired insurance, categorized as an administrative expense, is $1,720.

Debit Insurance expense 1,720

    Credit Prepaid insurance 1,720

c. The depreciation expense associated with store equipment, classified as a selling expense, totals $6,500 for the fiscal year.

Debit Depreciation expense 6,500

    Credit Accumulated depreciation, equipment 6,500

d. To gauge shrinkage, a physical inventory count taken at fiscal year-end indicates $10,720 of merchandise is still on hand.

Debit Cost of goods sold 2,280

    Credit Merchandise inventory 2,280

Cash $22,150

Merchandise inventory 10,720

Store supplies 2,550

Prepaid insurance 1,080

Store equipment 42,800

Accumulated depreciation—Store equipment $25,750

Accounts payable 17,000

Common stock 4,000

Retained earnings 25,000

Dividends 2,100

Sales 115,900

Sales discounts 2,100

Sales returns and allowances 2,000

Cost of goods sold 40,280

Depreciation expense—Store equipment 6,500

Sales salaries expense 12,900

Office salaries expense 12,900

Insurance expense 1,720

Rent expense—Selling space 8,000

Rent expense—Office space 8,000

Store supplies expense 2,550

Advertising expense 9,300

Totals $187,425 $187,425

a) The current ratio is calculated as current assets divided by current liabilities, resulting in $36,050 / $17,000 = 2.12

c)  Nelson company

Income Statement

For the month ending January 31, 202x

Revenues:

• Total net sales                                                              $111,800

Expenses:

• Cost of goods sold $40,280
• Depreciation expense - equipment $6,500
• Sales salaries expense $12,900
• Office salaries expense $12,900
• Insurance expense $1,720
• Rent expense - Selling space $8,000
• Rent expense - Office space $8,000
• Store supplies expense $2,550
• Advertising expense $9,300                              ($102,150)

Operating income                                                           $9,650

b) Nelson company

Income Statement

For the month ending January 31, 202x

Sales:

• Total sales $115,900
• Sales discounts ($2,100 )
• Sales returns and allowances ($2,000 )            $111,800

Cost of goods sold                                                           ($40,280)

Gross profit                                                                         $71,520

Selling expenses:

• Depreciation expense - equipment $6,500
• Sales salaries expense $12,900
• Rent expense - Selling space $8,000
• Store supplies expense $2,550
• Advertising expense $9,300                                   ($39,250)

S&A expenses:

• Office salaries expense $12,900
• Insurance expense $1,720 Rent expense - Office space $8,000                     

Operating income                                                                 $9,650

Réponse:

Amy possède un avantage absolu dans la production de tartes aux pommes et de glaces.

Amy a un avantage comparatif dans la production de tartes aux pommes.

Brad a un avantage comparatif dans la production de glaces.

Amy devrait se spécialiser dans la production de tartes aux pommes, tandis que Brad devrait se focaliser sur la production de glaces.

Explication:

Une personne a un avantage comparatif dans un domaine si elle produit à un coût d'opportunité inférieur par rapport à d'autres individus.

Coût d'opportunité de Brad:

Pour produire une tarte aux pommes = 10 / 5 = 2

Pour produire une glace: 5 / 10 = 0.5

Coût d'opportunité d'Amy:

Pour produire une tarte aux pommes: 15/15 = 1

Pour produire des glaces: 15/15 = 1

Amy a le coût d'opportunité le plus bas comparé à Brad pour la production de tartes aux pommes. Ainsi, elle détient un avantage comparatif dans ce domaine.

Brad présente un coût d'opportunité inférieur à celui d'Amy pour la production de glaces. Il possède donc un avantage comparatif dans la production de glaces.

Une personne doit se spécialiser et échanger le produit pour lequel elle a un avantage comparatif.

Un individu a un avantage absolu dans la production d'un bien s'il produit une quantité supérieure à celle des autres.

Amy a un avantage absolu dans la production des deux biens.

There is no guarantee that debt will consistently remain stable or decrease to zero; this uncertainty could reduce the portion of the 20% set aside for savings and investments. Additionally, depending on the country's economic conditions, the amount required for investments might unexpectedly increase.

Answer:

Both divisions are showing equal performance with an ROI of 14%.

Explanation:

The financial figures given have been organized as follows:

                                      Consumer ($)            Commercial ($)

Sales revenue                         22,000                    37,000

Divisional income                       3,850                     3,885

Divisional investment                27,500                   27,750

Current liabilities                      1,000                     800

R&D                                          1,000                   1,000

The resulting calculations are as follows:

Divisional ROI = Divisional income / Divisional investment

Consumer division ROI = $3,850 / $27,500 = 0.1400, or 14%

Commercial division ROI = $3,885 / $27,750 = 0.1400, or 14%

This illustrates that investment returns are equal at 14% for both divisions.

Solution and Explanation:

1. MC = Cost of raw materials + Labor cost

MC = 5 plus (10 divide by 2)

MC = $10

2.  TFC = $300

Q = 300,  AFC = TFC/Q = 300 divide by 300 = $1

3.  Nicholas's optimum output is likely to be greater

Rationale: P = MR = $15, MC = $10

With MR exceeding MC, increasing output is advisable until MR equals MC to maximize profits.

4.  His profit-maximizing output would likely increase

Reason: P = MR = $15, MC = $4 + $5 = $9

Since MR > MC, Nicholas should amplify his output until they are equated at the profit-maximizing point.