Economics Answers

Show the effect of pandemic an piyush optimal consumption Bundy assuming that substitution effects outweighs the income effects for book

TC= 103+15q-6q^2+q^3

Find VC , MC, AVC

Value of FC + VC when out put (q )= 0.5

Explains the difference between structured data and unstructured data in a paragraph. Give me an example of unstructured data in a paragraph?

what type of the analysis is if the analysis wants to know which customer purchased over $5000 last year but bought nothing this year.

A. Descriptive analytics.  B. Diagnostic analytics.

C. Predictive analytics.     D. Prescriptive analytics

Write a paragraph on why the answer is correct.

Which way is the best way to share the data analysis with other information users?

1. Write a long and persuasive article.  B. Use a huge data table.
2. Developing an appropriate dashboard.
3. write a statistical index based report

Write a paragraph on why the answer is correct.

profit and loss,

2019 2020 2021

Sales

Cash 200 480 800

Credit 1800 4320 7200

2000 4800 8000

Cost of goods sold 1240 2832 4800

Gross Profit 760 1968 3200

Operating expenses:

General, administration 80 450 1000

Depreciation 100 400 660

Interest expense (on borrowing) 60 158 340

Profit before tax (PBT) 520 960 1200

Tax 156 288 360

Profit after Tax (PAT) 364 672 840

financial position

Non-Current assets 1900 2500 4700

Current Assets

Cash equivalents 40 100 106

Accounts receivable 300 1500 2100

Inventories 320 1500 2250

Total 2560 5600 9156

Equity share capital 1200 1600 2000

Reserves & Surplus 364 1036 1876

Long term borrowings 736 1236 2500

Current liabilities 260 1728 2780

Total 2560 5600 9156

Prepare statement of cash flow using indirect method

Question five:

As per IAS 38, Development costs can either qualify or not qualify for capitalization. Research and Expenditure are also part of Intangible Assets. J& Son is a manufacturing company that manufactures foldable plastic tables. It has engaged in some developments and below are the forecasted sales from 2017 to 2020 for the company.

2017 2018 2019 2020

Sales from Other Activities 500 700 800 800

Sales from Fold-up tables 0 500 700 900

Development Costs (600) 0 0 0

Required:

Show how the development costs should be treated if the cost qualify for capitalization, capitalizing it in line to sales. (NB: Amortize every year in relation to the sales each year)

Question four:

i)When a new partner was admitted into partnership, he had to pay $5,000 as goodwill.There was a squabble between the senior partner and the bookkeeper. Thebookkeeper’s argument was that the money needs to be credited to the account of newpartner because after all it is his money”. However senior partner strongly disagreed tothis treatment.

Required:

Give your advice as to the proper treatment of this $5,000. Explain your reasons fully.

ii)Teko and Thuto are partners in a firm sharing profits in the ratio of 3:2. They admit Keiso as a new partner. Teko sacrificed 1/5 of his share and Thuto 1/4 of his share in favour of Keiso. Calculate new profit sharing ratio of Teko, Thuto and Keiso.

iii) Assume Teko and Thuto’s share capitals are $40,000 and &30,000 respectively. Keiso will invest $18,000 for one-third interest in capital. Goodwill is recorded.Show the journal entries.

Question one

On the 1st May, Nkandla Ltd undertook a contract for R680, 000. Nkandla incurred the following expenses during the year:

Materials issued from stores 65,000

Materials purchased for the contract 30,000

Plant installed at cost 42,000

Wages paid 105,600

Wages accrued due on the 31st Dec 31,500

Direct expenses paid 27,300

Direct expenses accrued due 31st Dec 1,700

Establishment 5,800

Notes:

Of the plant and material charged to the contract, the plant which cost R2, 000 and materials costing R1, 500 were lost. Some of the materials costing R3, 000 were sold for R3, 900. On the 31st Dec, the plant which cost R200 was damaged, rendering itself useless. The work certified was R240, 000 and 80% of the same was received as cash. The cost of work done but uncertified was R1, 000. Depreciation on plant was charged at the rate of 10% per annum.

Required:

(a) Prepare the contract account for the year ended 31st December.

Question two:

(a) Harcourt Ltd bought furniture on hire purchase from Nkalimeng Furnitures on January 2017. If Harcourt pays the full amount immediately, he will pay $120,000. Instead, he decided to make down payment of $25,000, and pay the remaining balance in instalments. The first instalment of $12,000 was paid in December 2017. The next 3 instalments of $20,500 were also paid at the end of the 2018, 2019 and 2020 respectively. He had to pay the balance in 2021.

Required: calculate the total interest paid by Harcourt Ltd.

(b) Create a scenario to demonstrate how Hire Vendor will account for the items bought under

hire purchase. Hint: your scenario must include the following:

i)Asset a/c

ii)Suppliers a/c

iii)Hire purchase interest a/c

iv)Statement of financial position extract

v)The instalments should be paid three times

a) The utility function for a consumer utility is U=30Q11/2Q21/2 . If the price per unit of Q1 is Kshs 10 and Kshs 5per unit of Q2, determine quantities Q1 and Q2 that the consumer should have to maximize utility if the consumer budgeted Kshs 350 (7 Marks).

b) Assuming there are two goods X and Y and two persons, analyze the exchange of goods between the two using the Edge worth Box framework indicating the Pareto efficient allocation (16Marks).

c) Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good