Economics Answers

A. Prepare Me-me Young Company's Common-size Statement of Financial Performance analysis for the year ended, 2020 given the following information:

-Cost of Goods Sold - 460,000.00

-Gross Profit - 640,000.00

-Net Income - 260,000.00

-Net Sales - 1,100,000.00

-Operating Expenses - 375,000.00

-Operating Income - 265,000.00

-Other Expenses - 5,000.00

It is about time to change the USD as our universal universal currency based on the Bretton wood system?

Is conglomeration beneficial to society and economics? Explain your answer.

A. Bugzy Company had cash sales of 300,000.00 and credit sales of 200,000.00. Its cost of sales is One Hundred Twenty Thousand Pesos. Accounts Receivable beginning and end balances are 45,000.00 and 20,000.00 respectively. Merchandise Inventory is valued at 100,000.00 on January 1 and 115,000.00 on Devember 31. Answer the questions that follow:

1. What is the company's gross profit margin? How did you compute for such?

2. How many days can you collect the receivables of the company in 2020? How were you able to solve for it?

1. A bank check was prepared by Lucas San Jose in the amount of Seventy Seven Thousand Pesos only to be paid by PBL Bank to Lena Sanchez. This however can only be encashed upon deposit to the latter's account from November 28, 2021. Identify the kind of check written above and the different parties involved therein.

1. You are to open a bank account. What will the financial institution require you to present to be honored as an account holder? What options will be made available to you upon opening a savings account?

5.Which of the following items must be deducted from the bank statement balance in preparing a bank reconciliation which ends with adjusted cash balance?

A. Deposit in transit

B. Outstanding check

C. reduction of loan charged to the account of the depositor

D. certified check

6.Provide 1-2 sentence/s to explain your answer in item number 5.

7.In preparing a monthly bank reconciliation, which of the following items would be added to the balance per bank statement to arrive at the correct cash balance?

A. Outstanding checks

B. Bank service charge

C. Deposit in transit

D. A customer’s note collected by the bank on behalf of the depositor

8.Provide 1-2 sentence/s to explain your answer in item number 7.

9.When preparing a bank reconciliation, bank credits are

A. Added to the bank statement balance

B. Deducted from the bank statement balance

C. Added to the balance per book

D. Deducted from the balance per book

10.Provide 1-2 sentence/s to explain your answer in item number 9.

Directions: Answer the questions which follow.

1.A bank reconciliation is

A. a formal statement that lists all of the bank account balances of an entity.

B. a merger of two banks that previously were competitors.

C. a statement sent by the bank to depositor on a monthly basis.

D. a schedule that accounts for the differences between an entity’s cash balance as shown on its bank statement and the cash balance shown in its general ledger.

2.Provide 1-2 sentence/s to explain your answer in item number 1.

3.Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adjusted cash balance?

A. note receivable collected by the bank in favor of depositor and credited to the account of the depositor

B. NSF customer check

C. service charge

D. erroneous bank debit

4.Provide 1-2 sentence/s to explain your answer in item number 3.

Directions: Prepare a bank reconciliation using the Adjusted Balance Method for the following given transaction.

Rancor Company provided the following information for the month of December:

      Balance per bank statement          ₱ 4,000,000

      Balance per cash book                  2,700,000

      Outstanding checks                     600,000

      Deposit in transit                        475,000

      Service charge                           10,000

      Proceeds of bank loan                    940,000

      Defective check (Debit memo)        50,000

      Credit memo                            435,000

Example of Adjusted Balance Method:

Adjusted Balance Method

In this method, both the records of the depositor and the bank should be brought to the corrected balance. Both balances are not correct; hence, the accounts must be adjusted to the correct balance. The pro-forma bank reconciliation statement appears as follows:

Unadjusted book balance xxxx

Add: Items credited by the bank but not recorded by the books xxxx

Total xxxx

Less: Items deducted by the bank but not recorded by the book (xxxx)

Adjusted book balance xxxx

With the help of graphs, show how the following changes are going to affect the market

equilibrium. Considering the shifting factors of Gul Ahmed Clothing demand;

(a) The consumer is promoted, now earning better salary than before;

(b) J. clothing brand announces the 70% offsale on their entire stock for unlimited time period;

(c) A news channel announces that Eid is expected to be on Thursday in coming week;

(d) With an increase in global connectivity, now consumers are more inclined towards western

clothing.