Economics Answers

STATEMENT OF CHANGES IN EQUITY  

PRACTICE SET 29 

1. The Retrieval Company has the following changes in equity items in year-end 2020.  
2. Kindly prepare the SCE of the company which is owned by Ms. Charlott 

Balance on January 1, 2020= ₱ 550,000 

March 31: The entity earned a total of ₱ 250,000 for its first quarter of operations 

June 30: The owner withdraws money worth ₱ 300,000 

July 28: Ms. Charlott, the owner, invests a total of ₱ 920,000 worth of equipment in the entity. 

September 22: The entity earned a total of ₱ 450,000  

December 31: Total expenses paid at year-end amounts to ₱ 380,000 

The owner withdraws 500,000 from the business 

Balance on December 31, 2020= ? 

What is a variable cost to a firm producing cakes?

A. The ingredients of its cakes

B. The invest on money borrowed

C. The monthly rent of its factory

D. The salaries of its managers

A. Perform Horizontal SCI Analysis for 2020 uaing 2019 as base year.

1. What is the Peso Change and % Change if in 2020 the net sales is 1,687,500 while in 2019, the net sales is 1,350,000?

2. What is the Peso Change and % Change if in 2020 the Cost of Sales is 1,046,250 while in 2019, the Cost of Sales is 877,500?

3. What is the Peso Change and % Change if in 2020 the Selling Expenses is 270,000 while in 2019, the Selling Expenses is 162,000?

4. What is the Peso Change and % Change if in 2020 the Administrative Expenses is 135,000 while in 2019, the Administrative Expenses is 121,500?

5. What is the Peso Change and % Change if in 2020 the Interest Expense is 74,250 while in 2019, the Interest Expense is 54,000?

6. What is the Peso Change and % Change if in 2020 the Net Income is 162,000 while in 2019, the Net Income is 135,000?

A. Choose the letter that corresponds to the correct answer. (Refer to the information below)

(Murayta Enterprises

Statement of Comprehensive Income

For the period ended, December 31, 2020

-Sales - 52,352.50

-Cost of Goods Sold - 16,137.50

-Gross Profit - 36,215.00

-Selling Expenses - 17,662.50

-General and Admin Expenses - 6,407.50

-Operating Income - 12,145.00

-Interest Expense - 525.00

-Net Income - 11,620.00)

1.) Using the vertical analysis, the company's cost of sales is:

A. 31%

B. 22%

C. 1%

D. 100%

2.) Using the vertical analysis, the company's:

A. Operating Expenses is 46%

B. Operating Profit is 23%

C. Other Expense is 1%

D. All are correct

3.) Common-size SCI of Murayta Enterprises provides:

A. 70% gross profit

B. 30% cost of goods sold

C. 22% net income

D. 13% general and andministrative expenses

(i) Imagine that the wage rate (w) = 10 and cost of capital (r) = 0.1. Given this information, answer the following questions: (a) Find the slope of the isocost line. (b) What is the slope of the isoquant where it is tangent to this isocost line? (c) If the marginal product of labour used in production at this point is 50 pencils per hour, what is the marginal product of capital used

An average worker in Canada can produce 40 cars or fix 32 computer bugs. With the same resources, an average worker in India can produce 12 cars or fix 30 computer bugs.

_____ has an absolute advantage in producing cars, _____ has an absolute advantage in fixing computer bugs.

Which of the following statements is incorrect?

A. There are many examples of oligopolistic industries in South Africa.

B. Oligopolistic operate completely independent each other.

C. One of the key features of oligopoly is uncertainty.

D. In an oligopolistic industry each firm must act strategically.

E. One of the possible strategies that oligopolistic have, is to collude.

Although not explicitly mentioned in Chapter 20, John Maynard Keynes is considered a foundational source in the understanding of macroeconomics. After performing research outside the textbook, please explain in three well-structured paragraphs the basic principles of the New Keynesian Economics and how it addresses perceived limitations to classic Keynesian theory.