Notes, summaries, assignments, exams, and problems for Economy

Tema 2: Financial Statement Analysis

Section 1: Merchandise and Bank Transactions

Merchandise and VAT

• Merchandise: $2,500,000
• VAT Credit: $475,000
• Total: $2,975,000 (1.5 points)

Bank and Receivables

• Bank: $2,499,000 ( ($4,200,000 + $798,000) / 2 )
• Accounts Receivable: $2,648,940
• Cost of Sales: $3,290,000 ( ($261,800 / 1.19) x 7 + $250,000 x 7 ) (3 points)

Revenue and Expenses

• Merchandise: $3,290,000
• Revenue from Sales: $4,200,000 ($300,000 x 14)
• VAT Debit: $798,000 ($4,200,000 x 0.19)
• Interest Earned: $149,940 ($2,499,000 x 0.02 x 3)

Section 2: Additional Transactions

Merchandise and Sales

• Merchandise: $220,000
• Revenue from Sales: $300,000
• VAT Debit: $57,000
• Total: $357,000 (2 points)
• Cost of Sales: $220,000

Repair Expenses

• Repair Expense: $10,000 (1.5 points)
• Units:

Market Types

Companies market their products on the market.

Market: Consists of a set of buyers and sellers of a product. There are different types of markets. Each of these conditions in a particular way the work of the Commercial Department.

Main Forms of Market

• Features Buyers:
  • Consumer Market: Products purchased by individual buyers or families. Distinguish between immediate consumption, when consumed frequently; lasting, if consumed in different periods of time; and services, if they are immaterial.
  • Industrial Market: Products purchased by companies for incorporation into the production process or for sale. Examples: Wood for furniture factories.
• Number and Types of Competitors:
  • Monopoly: There is only one company operating in the market. Example:

Market Rates and Competitive Structures

Understanding Market Competition

Perfectly Competitive Markets

In perfectly competitive markets, all goods and services are voluntarily exchanged for cash at a price fixed by the market. All firms compete on equal terms.

Imperfectly Competitive Markets

In imperfectly competitive markets, one or more companies can influence the price. The fewer firms there are, the more able they are to influence the price. These markets are classified depending on the number of participating companies.

Key Types of Imperfect Markets:

• Monopoly: An extreme case of imperfect competition characterized by a lack of competition, where a single company produces the entire output for a good or service.
• Oligopoly: A market where a few

Concept and Classification of Banking Operations

Banking operations are credit operations carried out by a financial institution in a professional manner. They are classified as:

• Passive Operations
• Active Operations
• Service Operations

Types of Banking Products

Common banking products include current accounts, savings accounts, fixed-term deposits, and certificates of deposit.

Characteristics of Opening Bank Accounts

Bank accounts can be opened by individuals or corporations and can be in domestic or foreign currency. Only individuals with the capacity to act can open an account. Those lacking capacity must do so through their legal representatives.

Who Can Open a Bank Account?

People with legal capacity can open a bank account.

Steps in the Process of

Accounting and Public Accounting Basics

What is Public Accounting (Contaduría)?

It is the professional discipline of a scientific nature that, based on a specific theory and through a process, obtains and verifies information on financial transactions conducted by economic entities.

What is Accounting?

The art of recording, classifying, and summarizing in a significant way, and in terms of money, transactions and events that are at least partly financial, and interpreting their results.

Purpose of Accounting

The purpose of accounting is to provide financial information at specific points in time or through technical records, based on classifications established by an institution. Accounts should adhere to established principles.

Stages of the Accounting

Definition of Technology

Technology is the body of knowledge and information specific to an activity that can be used systematically for the design, development, manufacture, and marketing of products or services, including the appropriate application of techniques associated with overall management.

Invention vs. Innovation

Invention is the act of creating something that does not exist. Innovation refers to the process by which new ideas are conceived, subsequently developed, and finally introduced to the market as new goods and services.

Technology Classifications

Technologies can be classified into three main types:

• Fundamental Technologies: Closest to scientific principles.
• Generic Technologies: Intermediate in nature.
• Application Technologies:

The salary structure encompasses various concepts a worker receives monthly. This includes the base salary, the principal amount for work performed. Bonuses are also part of the compensation, often based on personal characteristics such as age or years of service. Job characteristics also influence rewards and goals. In Spain, workers are entitled to two extra payments annually: one in summer and one at Christmas. The summer bonus, paid in July, covers the first six months, while the Christmas bonus, paid in December, covers the second half of the year. Each extra payment equals 30 days of salary. All of this is regulated by the collective agreement of each sector. These agreements, between employee representatives, unions, and business representatives,... Continue reading "Understanding Salary Structure, Social Security, and Payroll in Spain" »

Key Factors in Forecasting Models

1. Variables in a Competitive Model Forecast

Variables considered for forecasting in a competitive model:

• Marketing
• Production
• Finance
• Human Resources
• Strategic Planning

2. Defining a Forecast

A forecast is an early estimate of the value of a variable, such as the demand for a product.

3. Main Factors to Predict in a Company

Key variables to forecast in a company include:

• Raw material cost
• Labor cost
• Feedstock availability
• Manpower availability
• Capacity
• Maintenance requirements

4. Characteristics of Forecasting Variables

I. Time Dependence: All forecasting situations deal with the future, and time is directly involved. Forecasts are made for specific points in time, and changes to that point generally alter the prognosis.

II.

Microeconomics: Supply and Demand

Market Fundamentals

Supply and demand are fundamental concepts in economics, driving market dynamics. Modern microeconomics focuses on these forces and their impact on market equilibrium.

Markets

A market consists of buyers and sellers interacting to exchange goods or services. Buyer behavior determines demand, while seller behavior determines supply.

Types of Markets

Competitive Market

A competitive market involves numerous buyers and sellers, preventing any single entity from controlling the price. Prices fluctuate within a narrow range, balancing the interests of buyers and sellers.

Perfect and Imperfect Competition

Perfect Competition

Characterized by identical products, numerous buyers and sellers, and no individual... Continue reading "Microeconomics: Supply, Demand, and Market Equilibrium" »

Production Functions: Key Concepts

Production Function: The relationship between the quantity of inputs used and the amount of product produced per period, given a state of technology.

Total Product: The total output produced with the combination of fixed and variable factors in a given period.

Average Product: The product value is taken individually. This value arises between the production volume and the quantity of factors employed.

• When the average product grows, the marginal product is greater than the average product.
• When the average product decreases, the marginal product is less than the average product.
• When the average product is at its maximum, the marginal product equals the average product.

Linear Homogeneous Production Functions

Linear