A farmer who owns the means to produce wealth (farm equipment, land, cattle, etc.) and employs individuals to work on the farm but has also experienced the hardship that comes with farming can be said to be experiencing a ____________ (three word term).

Answer:

Sustainable agriculture farming.

Explanation:

In Agriculture, there are various farming techniques adopted by farmers for the growth and development of their crops. An effective and efficient agricultural technique would have a significant impact on the level of productivity attained by the farmers and as such meeting the unending requirements or needs (demands) of the consumers.

Basically, there are various agricultural techniques used in farming and these includes;

I. Mixed farming.

II. Arable farming.

III. Pastoral farming.

IV. Bush fallowing.

V. Shifting cultivation.

VI. Nomadic herding.

VII. Subsistence farming.

Sustainable agriculture farming can be defined as a farming model that is typically aimed at providing basic human needs such as food, fiber, textiles, etc., without compromising or jeopardizing the ability of future generations to create agricultural solutions to their own basic needs.

This ultimately implies that, when the production of textiles, fiber and food to meet the present human needs deplete the natural base, there is a direct decrease in the ability of future generations to produce to meet their own basic needs regardless of having the means to produce wealth such as farm equipment, land, cattle, labor, etc.

Exercise 9-15A (Static) Using the current ratio to make comparisons LO 9-7 The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills

The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hashey, Inc. a leading manufacturer of games, toys, and interactive entertainment software for children and families:

Accounts Receivable $1,119 Equipment $496
Accumulated Amortization 751 Goodwill 601
Accumulated Depreciation 506 Inventories 356
Allowance for Doubtful Accounts 35 Land 10
Buildings 246 Licensing Rights 1,841
Cash and Cash Equivalents 686 Prepaid Rent 361

Required:
Prepare the asset section of a classified balance sheet for Hashey, Inc.

describe the term marginal cost?​

Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,000 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,000 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $600 + $0.35 per mile.
Required:
1. Determine how many miles Russell needs to drive to break even k-Even Miles Miles.
2. Assume Russell drove 1,800 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.
3. Determine how many miles Russell must drive to earn $1,000 in profit.

Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $34,000 (original cost of $86,000 less accumulated depreciation of $52,000) and $45,000, respectively. Assume Calaveras paid $6,000 in cash and the exchange lacks commercial substance. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange?

Interest rate​ (with changing​ years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces. a.  Invest ​$360.00 and receive ​$788.17 in 11 years. b.  Invest ​$3 comma 000.00 and receive ​$11 comma 499.87 in 17 years. c.  Invest ​$31 comma 542.31 and receive ​$140 comma 000.00 in 22 years. d.  Invest ​$32 comma 895.12 and receive ​$1 comma 100 comma 000.00 in 40 years.

Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per share. In the current year, Julio received a payment of $135,000 from Gray Corporation in exchange for 4,500 of his shares in Gray. Gray has E & P of $1,000,000. What income tax liabil-ity would Julio incur on the $150,000 payment in each of the following situations? Assume that Julio has no capital losses.

a. The stock redemption qualifies for sale or exchange treatment.
b. The stock redemption does not qualify for sale or exchange treatment.
c. How would your answer to parts (a) and (b) of Problem 49 differ if Julio were a corporate shareholder rather than an individual shareholder and the stock ownership in Gray Corporation represented a 25% interest?

On December 31, 2020, Marin Company borrowed $67,653 from Paris Bank, signing a 5-year, $114,000 zero-interest-bearing note. The note was issued to yield 11% interest. Unfortunately, during 2022, Marin began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would receive back only $85,500 at maturity. The market rate of interest on loans of this nature is now 12%.
Prepare the entry, if any, to record the impairment of the loan on December 31, 2022, by Paris Bank.

Suppose that Musashi, an economist from an AM talk radio program, and Rina, an economist from a university in Massachusetts, are arguing over health insurance. The following dialogue shows an excerpt from their debate:

Rina: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.
Musashi: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.
Rina: I disagree. I think government funding of health insurance is useful to ensure basic fairness.

The disagreement between these economists is most likely due to:

a. Differences in scientific judgments
b. Differences in Values
c. Differences between perception VS. reality

Despite their differences, with which proposition are two economists chosen at random most likely to agree?

a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.

Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.

This year, Sigma Inc. generated $639,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months:

Initial Basis Acc. Depr Sale Price
Marketable securities $144,000 0 $64,000
Production equipment 93,000 $76,000 30,000
Business realty:
Land 165,000 0 180,000
Building 200,000 58,300 210,000

Required:
a. Compute Sigma’s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured.
b. Recompute taxable income assuming that Sigma sold the securities for $150,000 rather than $64,000.

Consider a $6500 piece of machinery, with a 5-year depreciable life and an estimated $1200 salvage value. The projected utilization of the machinery when it was purchased, and its actual production to date, are as follows:

Year Projected Production (Tons) Actual Production (Tons)
1 3500 3000
2 4000 5000
3 4500 [Not]
4 5000 Yet
5 5500 [Known]

Compute the depreciation using :
a. straight line
b. sum of years digits
c. double declining balance
d. Unit of production (for the first 2 years only)
e. Modified accelerated cost recovery system

Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,000 per unit, of which $680 is product cost and $320 is selling and administrative expenses. In addition, the total cost of $1,000 is made up of $570 variable cost and $430 fixed cost. The desired profit is $200 per unit.

Required:
Determine the markup percentage on total cost.

On April 2, Rolex SA sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 of sales was received on April 8 and the remaining payment on $16,000 of sales was received on April 27. Assuming Rolex uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a:_____.
a. Debit to cash for $15,840.
b. Debit to revenue for $40,000.
c. Credit to sales discounts forfeited for $160.
d. Debit to accounts receivable for $400.

Analyzing the Impact of Selected Transactions on the Current Ratio [LO 13-4, LO 13-5]
In its most recent annual report, Sunrise Enterprises reported current assets of $1,090,000 and current liabilities of $602,000.
Required:
Determine for each of the following transactions whether the current ratio, and each of its two components, for Sunrise will increase, decrease, or have no change: (1) sold long-term assets for cash, (2) accrued severance pay for terminated employees, (3) wrote down the carrying value of certain inventory items that were deemed to be obsolete, and (4) acquired new inventory by signing an 18-month promissory note (the supplier was not willing to provide normal credit terms).

Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond currently sells for 108 percent of its face value. The company’s tax rate is 22 percent.

Regardless of his income and regardless of prices, Smedley always spends 25% of his income on housing, 10% on clothing, 30% on food, 15% on transportation, and 20% on recreation. This behavior is consistent with which of the following?
a. All goods are perfect substitutes.
b. Smedley's demands for commodities do not change when their prices change.
c. Smedley consumes all goods in fixed proportions.
d. Smedley has a Cobb-Douglas utility function.
e. More than one of the above.

Checking accounts at a local bank carry an average balance of $3000. The bank turns over its balance 3 times a year. On average, how many dollars flow through the bank each month?

Item7 Item 7 Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful life of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow: Annual sales $ 88,000 Labor costs (72,000 ) Depreciation of equipment (6,000 ) Operating income $ 10,000 Income taxes (4,000 ) Net income $ 6,000 The estimated accounting rate of return is:

The Pizza Company is considering a new three-year expansion project. The key data are shown below:
The company hired a consulting firm to help evaluate the project and paid the consulting fee of $60,000. The company owns the space. If company did not invest in the project, it can receive after-tax rental fee for $300,000 per year for 3 years. However, if the
company invested in the project, it will use the space for the project.
 The fixed cost to produce pizza is required at $150,000 per year.
 It is estimated that 50,000 units will be sold in the first year and that 40,000 units and 30,000 units will be sold in the second and third years respectively.
 Each pizza is expected to sell for $25 and the production cost will be $15 per unit.
 The sales price and variable cost should increase with inflation. Expected inflation rate per year is 5%.
 The project requires an initial investment in working capital of $500,000, which will be required in each year at 10% of revenue in the following year.
 The purchase of the machinery at the start of the project is $1,000,000. The shipping and installation cost are $200,000. The machinery will be depreciated straight-line to zero. It is estimated that the machinery can be sold at the end of the project for $250,000.
 To finance the project, the company would need to take a one-million dollar loan at 8% interest rate p.a. from HSBC over the life of the project. Annual interest expense is $80,000.
 The corporate tax rate is 34%.
 The Pizza Company is evaluating its cost of capital under alternative financing arrangements. In consultation with the consulting firm, the Pizza Company expects to be able to issue new Debt at Par with a coupon rate of 8% (coupons paid annually) and to issue new preferred stock with a $4 per share dividend at $32 a share. The common stock of the Pizza Company is currently selling for $22 a share while its book value is $6. The Pizza Company expects to pay a total
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate the NPV of the project using the cost of capital calculated in part (a).
Should the project be accepted?

In a newsvendor model where the demand has normal distribution, if Co < Cu, i.e., the overage cost is lower than the underage cost, then the optimal ordering quantity (i.e., the Newsvendor ordering quantity) will be:_______.

A company's beginning Work in Process inventory consisted of units that were 90 % complete with respect to direct labor A total of were finished during the period and remaining in Work in Process inventory were 40 % complete with respect to direct labor at the end of the period . Using the weighted average method the equivalent units of production with regard to direct labor were :

The typical horizontal flows of information in an accounts payable/cash disbursements process might include all of the following except:

a. an invoice is received from a vendor
b. the paid voucher is returned to the accounts payable department
c. an approved disbursement voucher is sent to the cashier
d. a copy of a receiving report is sent to the cashier

______contains journal vouchers of past periods for audit trail

Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $54. Ortega would like a profit of $14 per drive. What target cost Ortega should set to accomplish this objective

The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation is called

A south sea island produces only coconuts. In​ 2015, the price of a coconut is ​$1.00 and the quantity produced is 250 . In 2019 ​, the price of a coconut is ​$0.50 and the quantity produced is 200 . 2015 is the base year. What is real GDP in 2019 ​?

4. Social responsibility is an area of business with issues that
A. are easy to resolve.
B. change constantly in response to society's demands.
C. stay constant due to consistent societal demands.
D. change occasionally in response to society's demands.

GHI Corporation, a California corporation, has a six-person board. At a regular board meeting, only two directors attend. No notice was sent to any of the directors. The two attending call directors Alice and Bob and put them on a conference call. The four talk about the corporation buying Blackacre and then all agree to a resolution for GHI to buy Blackacre from Third Party. The Bylaws of GHI state that an action of the board requires the consent of a majority of the directors present at a meeting, and that a quorum is a majority of the authorized directors.
Select one:
a. the purchase is authorized because a quorum was present and a majority of those present approved the action.
b. the purchase is not authorized, since all real estate transactions require shareholder approval
c. the purchase is not authorized because prior written notice must be sent to each director
d. the purchase is not authorized because a quorum was not present at the board meeting
e. Two of the above are correct.

The difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the:_________.
a. labor price variance.
b. total labor variance.
c. labor efficiency variance.
d. labor quantity variance.