Answer:
The loan's effective annual rate (EAR) is 8.30%.
Explanation:
Effective Annual Rate (EAR) can be described as an interest rate which been adjusted for compounding over particular period.
EAR therefore simply refers to the interest rate paid to an investor in a year after taking compounding into consideration.
The EAR can be computed using the following formula:
EAR = ((1 + (i / n))^n) - 1 .............................(1)
Where;
i = Annual percentage rate (APR) = 8%, or 0.08
n = Number of compounding periods or months in a year = 12
Substituting the values into equation (1), we have:
EAR = ((1 + (0.08 / 12))^12) - 1
EAR = ((1 + 0.00666666666666667)^12) - 1
EAR = 1.00666666666666667^12 - 1
EAR = 1.08299950680751 - 1
EAR = 0.08299950680751, or 8.299950680751%
Approximating to 2 decimal places, we have:
EAR = 8.30%
Therefore, the loan's effective annual rate (EAR) is 8.30%.
For each of the following situations, identify (1) the case as either (a) a present or a future value and (b) a single amount or an annuity, (2) the table you would use in your computations (but do not solve the problem), and (3) the interest rate and time periods you would use. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) a. You need to accumulate $10,000 for a trip you wish to take in four years. You are able to earn 8% compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for four years. How would you determine the amount of the one-time deposit? b. Assume the same facts as in part (a) except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit? (Round your answer to 2 decimal places.) c-1. You want to retire after working 40 years with savings in excess of $1,000,000. You expect to save $4,000 a year for 40 years and earn an annual rate of interest of 8%. Will you be able to retire with more than $1,000,000 in 40 years?
Answer:
a. The present value of a future value of $10,000 is $7,310.
b. The present value of an annuity for a future value of $10,000 is $1,043.54.
c. Yes, you will retire with $1,036,226.07 .
Explanation:
a) Data and Calculations:
Future value = $10,000
Interest - 8% compounded semiannually
Period of investment = 4 years
Using the present value table, the discount factor of 0.731, the future value of $10,000 is $7,310
b) You will need to contribute $1,043.54 at the beginning of each period to reach the future value of $10,000.00.
FV (Future Value) $10,000
PV (Present Value) $7,306.90
N (Number of Periods) 8.000
I/Y (Interest Rate) 4.000%
PMT (Periodic Payment) $1,043.54
Starting Investment $0.00
Total Principal $8,348.30
Total Interest $1,651.70
c) $1,000,000 in 40 years:
FV (Future Value) $1,036,226.07
PV (Present Value) $47,698.45
N (Number of Periods) 40.000
I/Y (Interest Rate) 8.000%
PMT (Periodic Payment) $4,000.00
Starting Investment $0.00
Total Principal $160,000.00
Total Interest $876,226.07
A share of common just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 13.9%, what is the stock price?
a) $11.04
b) $12.40
c) $13.76
d) $15.00
e) $9.42
Answer:
The correct option is b) $12.40.
Explanation:
The stock price can be calculated using the Gordon growth model (GGM) formula that assumes that dividend growth rate will be stable in the long run. The formula is given as follows:
P = d / (r - g) ……………………………………… (1)
Where;
P = Stock price = ?
d = next year dividend = Dividend just paid * (1 + Dividend growth rate) = $1.00 * (1 + 0.054) = $1.00 * 1.054 = $1.054
r = required rate of return = 13.9% = 0.139
g = dividend constant growth forever = 5.4%, or 0.054
Substituting the values into equation (1), we have:
P = $1.054 / (0.139 - 0.054)
P = $1.054 / 0.085
P = $12.40
Therefore, the stock price $12.40. That is, the correct option is b) $12.40.
Year Cash Flow 0 –$5,500 1 1,300 2 1,500 3 1,900 4 1,400 What is the payback period for the set of cash flows given above?
Answer: 3.57 years
Explanation:
Payback period is the amount of time it would take for a project to pay back its initial investment.
Investment = $5,500
Year 1 + 2 + 3 = 1,300 + 1,500 + 1,900 = $4,700
With cash flow of $1,400 coming in fourth year and $800 remaining for payback, investment will be paid back in fourth year.
Payback period = Year before payback + Amount left/ Cashflow in year of payback
= 3 + (5,500 - 4,700) / 1,400
= 3.57 years
Mike Finley wishes to become a millionaire. His money market fund has a balance of $403,884 and has a guaranteed interest rate of 12%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?
Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $209,004. At what interest rate must Sallyâs investment compound annually? (Round answer to 0 decimal places, e.g. 5%.)
Answer:
Mike Finley
t = 7.999983133 years rounded off to 8 years
Sally Williams
r = 0.110000123 or 11.0000123% rounded off to 11.00%
Explanation:
Mike Finley
To calculate the time period it will take Mike Finley to become a millionaire, we will use the formula of future value of cash flow. The formula for future value of cash flow is as follows,
Future value = Present value * (1+r)^t
Where,
r is the interest rate or rate of returnt is the time period in yearsPlugging in the values for Future value, present value and r in the formula, we can calculate the t to be,
1000000 = 403884 * (1+0.12)^t
1000000 / 403884 = 1.12^t
2.475958444 = 1.12^t
Taking log on both sides.
ln(2.475958444) / ln(1.12) = t
t = 7.999983133 years rounded off to 8 years
Sally Williams
We will use the same formula for future value of cash flows as we used above to calculate the rate at which investment should be compounded annually to grow to $1 million.
1000000 = 209004 * (1+r)^15
1000000 / 209004 = (1+r)^15
4.784597424 = (1+r)^15
Taking root of 1 on both sides.
(4.784597424)^1/15 = (1+r)^15 * 1/15
1.110000123 = 1+r
1.110000123 - 1 = r
r = 0.110000123 or 11.0000123% rounded off to 11.00%
Match each balance sheet item to its correct category.
Categories: Assets, Liabilities, Equity
Balance sheet items: Cash, Rent, Loan, wages payable, retained earnings, computers, furniture, owners personal investment
Answer:
See below
Explanation:
Assets, Liabilities, and Equity form the basis for preparing the balance sheet. They make the accounting equation of Assets= Liabilities + Equity.
Assets are the valuables a business owns. They can be in the form of cash, money in the banks, financial instruments, properties, machines, or motor vehicles.
Assets will be
Cashcomputers,furnitureLiabilities are what the business owes to third parties and supplies. Liabilities are usually in the monetary form, such as loans, rent, and accounts payable.
Liabilities
Rent, Loanwages payable,Equity is the owner's contribution to the business. They include capital and retained earnings.
Equity
retained owners personal investment earnings,The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production CostsQuantity of Ear Buds MC ATC ($) ($)5 - 80 2 515 2.45 4.1520 3.55 425 4 430 5.5 4.2535 6 4.540 8.5 5A. If Buddies wants to maximize its profits, how many pairs of ear buds should it produce?B. At the profit-maximizing quantity, what is the total cost of producing ear buds?C. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what is Buddies weekly profit?D. If the market price is $5.50 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what is Buddies weekly profit?E. Buddies earns a normal profit whena. marginal cost equals average cost at the minimum of average cost.b. marginal cost equals average cost.c. marginal cost equals marginal revenue at the minimum of marginal cost.d. average cost equals average revenue at the minimum of average cost.
Answer and Explanation:
The computation is shown below:
a. The number of pairs of ear buds that should be produced for maximizing the profits is
As we know that
MR = MC
Q = 35
And also the price is equal to the MC
Hence, the quantity that should be produced would be 35
b). The total cost of producing ear buds for maximizing the profit is
As we know that
TC = ATC × Q
= 4.5 × 35
= $157.5
c. The weekly profit is
As we know that
Profit = TR - TC
= (P - ATC) × Q
= (6 - 4.5) × 35
= $52.5
d) The weekly profit is
Profit= (5.5 - 4.25) × 30
= $37.5
e. The normal profit could be earned at the time when the marginal cost is equivalent to the average cost that contains the minimum
Hence, the option a is correct
Use the information for the question(s) below. Rosewood Industries has EBIT of $450 million, interest expense of $175 million, and a corporate tax rate of 35% If Rosewood had no interest expense, its net income would be closest to:___________ a. $430 million b. $160 million c. $290 million d. $405 million
Answer:
$180 million
Explanation:
Net income is calculated as;
= (EBIT - Interest expense)(1 - tax)
Given that;
EBIT = $450 million
Interest expense = $175 million
Tax = 35%
Net income = (450 - 175)(1 - 0.35)
Net income = (275)(0.65)
Net income = $178.75
Net income = $180 million approximated.
Rosewood's net income is closest to $180 million.
What will happen to the market value of a bond if interest rates decrease?
a. The market value will decrease
b. The market value will increase
c. The market value will increase or decrease, depending on the general economic climate
d. The market value should remain level
Answer:
b. The market value will increase
Explanation:
In the case when the rate of the interest decrease so the market value of the bond would be increased. As the market value of the bond and the rate of interest has an inverse relationship between them. In the case when the rate of interest increased than the market value of the bond decreased and vice versa
Therefore option b is correct
A country has nominal GDP equal to $204.31 billion in 2018. The GDP deflator in 2018 has a value of 112.64. What was the value of real GDP, in billions of dollars. Round to two decimal places. If your answer is 3.2 billion then just enter 3.2.
Answer:
$181.38 billion
Explanation:
The computation of the value of the real GDP is shown below:
As we know that
Real GDP = (Nominal GDP ÷ GDP Deflator) × 100
= ($204.31 billion ÷ 112.64) × 100
= $181.38 billion
Hence, the value of real GDP is $181.38 billion
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Jammer Company uses a perpetual weighted average inventory system and reports the following: August 2 Purchase 17 units at $15.00 per unit. August 18 Purchase 19 units at $13.00 per unit. August 29 Sale 34 units. August 31 Purchase 22 units at $18.00 per unit. What is the per-unit value of ending inventory on August 31?
Answer:
Weighted-average ending inventory cost= $17.75
Explanation:
First, we need to calculate the total cost of ending inventory:
August 2= 17*15= 255
August 18= 19*13= 247
August 29= (19*13 + 15*15)= (472)
August 31= 22*18= 396
Total ending inventory= $426
Now, the weighted average cost per unit of ending inventory:
Ending inventory in units= 24
Weighted-average ending inventory cost= (426/24)
Weighted-average ending inventory cost= $17.75
If there is an excess supply of money in the economy, A. there is also an excess demand for money B. there is also an excess demand for bonds C. there is also an excess supply of bonds D. the interest rate will rise E. the Fed must intervene to restore equilibrium
Answer: B. there is also an excess demand for bonds
Explanation:
When there is an excess supply of money in the economy, there is also an excess demand for bonds.
This is because in his case, rather than holding money, individuals will want to increase their being holdings and therefore, this will lead to the reduction in their holding of money. Equilibrium will further be restored as there'll be reduction in interest rate.
Identify and explain the dimensions of Iqra University’s culture, ranging from high level to low level for each dimension of culture.
The correct answer to this open question is the following,
The dimensions of Iqra University’s culture are the following.
Iqra University is a private university in Pakistan, and one of the most prominent colleges in the Pakistan education system.
The most important dimension of its culture is to provide high-quality education to its students. This university tries to match the graduates with the always-changing market necessities in Pakistan.
Another important aspect is that school teachers instill critical thinking abilities in each of their students because as part of its culture, they want to help students think wisely in a complicated world in order to choose the best decision and action.
One key aspect of its culture is ethics. The University put emphasis on moral values as a way to make good decisions, not only in business but in life.
Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $5,000 per year if alternatively invested. He has been offered $23,000 per year to work as a potter for a competitor. He estimates he could use his talents to earn an additional $6,000 per year in consulting fees if he were working full time as a potter. Total annual revenue from pottery sales is $86,000.
Instructions:
A. Calculate the accounting profit for Gomez’s pottery firm.
B. Now calculate Gomez's economic profit.
Answer:
Gomez
Accounting Vs. Economic Profit
Accounting profit:
Sales revenue $86,000
Business cost 40,000
Profit $46,000
Economic profit:
Accounting profit $46,000
Opportunity cost 34,000
Profit $ 12,000
Explanation:
a) Data and Calculations:
Annual Wages for helper = $14,500
Annual Rent = $7,500
Annual Direct materials = $18,000
Business cost = $40,000
Funds investment = $40,000
Opportunity cost (alternative option)
Interest on funds = $5,000
Wages 23,000
Consulting fees 6,000
Total opportunity costs = $34,000
Total annual sales revenue = $86,000
b) Gomez's economic profit equals the accounting profit minus the expenses incurred for lost opportunities (alternative uses) of resources. This means that the economic profit is always less than the accounting profit, which does not consider opportunity costs.
According to the video, what do Financial Analysts analyze? Check all that apply.
financial records
travel distances
insurance claims
a company's competitors
fraud
A-D
-financial records
-a company’s competitors
Answer:
Financial Records
A Company’s Competitors
Explanation:
I got it right on edge 2020 hope this helps!
Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:_______. Cash $70,200 Short-term investments 12,800 Accounts receivable 49,500 Inventory 242,000 Prepaid expenses 18,000 Accounts payable 100,500 Other current payables 28,000a. 3.05 and 1.03. b. 2.91 and .97. c. 1.17 and 3.91. d. .97 and 3.05.
Answer:
a. 3.05 and 1.03
Explanation:
The formula for current ratio is
= Current assets/Current liabilities
= (Cash + Short term investment + Accounts receivable + Inventory + Prepaid expenses) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500 + 242,000 + 18,000) / (100,500 + 28,000)
= 392,500 / 128,500
= 3.05
The formula for Acid test ratio is
= Quick Assets / Current liabilities
= (Cash + Short term investment + Accounts receivable) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500) / (100,500 + 28,000)
= 132,500 / 128,500
= 1.03
A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):
Answer:
The appropriate response is "Progressive tax".
Explanation:
Progressive taxation appears to mean that the tax rate is higher for increased organizations as well as lower for low-income communities. Whenever the taxable income leads to higher, the above tax rate tends to increase. The approximately equal tax rate would be taxation that is set regardless including its up or down in tax liability.So that above is the correct answer.
In an appearance on Shark Tank, the owner of a wedding runner company wanted to pursue a strategy of _____ and make her runners affordable to the public. The sharks suggested she should pursue a strategy of ______, focusing on quality and uniqueness.a. differentiation; cost leadershipb. unrelated diversification; related diversificationc. cost leadership; differentiationd. focused retrenchment; growthe. related diversification; unrelated diversification
Answer:
c. cost leadership; differentiation
Explanation:
Remember, we are told that the owner wants to make her runners affordable to the public, and we agree that affordability is only possible when there is cost leadership. Cost leadership strategy simply implies that the company's products/services are positioned to be the cheapest in comparison with other competitors.
To specifically focus on quality and uniqueness, the sharks were asking the owner to pursue the differentiation strategy. Differentiation strategy requires having features that set your product or service apart from others such as quality and uniqueness.
What is the rate of return on an investment of $124,090 if the company expects to receive $10,000 per year for the next 30 years? A. 5.5 percent B. 4 percent C. 7 percent D. 6 percent
Answer:
C. 7 percent
Explanation:
The computation of the rate of return on the investment is shown below:
Given that
PV = $124,090
FV = $0
PMT = $10,000
NPER = 30
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 7%
Hence, the rate of return on the investment is 7%
The correct option is c. 7%
Steve Colburn's portable sawmill used 100% for business, was completely destroyed by fire. The sawmill had an adjusted basis of $35,000 and a fair market value of $50,000 before the fire. The sawmill was uninsured. Steve's casualty loss is:________.1) $49,900.
2) $50,000.
3) $35,000.
4) $34,900.
Answer: $35,000
Explanation:
A casualty loss is simply a loss that an individual or business incurs when a property is damaged, or destroyed due to an unexpected or sudden event like fire, volcanic eruption, flood etc.
Here, Steve's casualty loss will be gotten when we compare both his adjusted basis and the fair market value and then we choose the lesser one. Since $35000 is lesser than $50000, therefore the answer will be $35000.
The estimate an organization makes regarding the number and quality of its current employees and the availability of workers externally is called a(n):________
Answer:
Labor supply forecast
Explanation:
The estimate an organization makes regarding the number and quality of its current employees and the availability of workers externally is called a labor supply forecast. This information is very important when determining the number of workers required to meet the labor demands of an organization.
Some examples of the economic and qualitative factors that affects the external supply of labor includes transportation, availability of housing, quality of life, number of training institutes or facilities, wages, demographic trends, immigration etc.
Discuss the relationship between competition and consumer expectations.
Answer:
The relationship between competition and consumer expectations is by what the compitition is creating in terms of product and functionability. And the consumer expectation is what will help the by buying into this product.
Explanation:
Question 7 of 10
How does fractional reserve banking increase the money supply?
O A. By automatically converting foreign currencies into U.S. dollars on
deposit
O B. By guaranteeing that all deposits are held in reserve as cash at all
times
O C. By using deposited money to make loans without reducing the
value of the deposits
O D. By giving banks the authority to print their own money in an
economic emergency
SUBMIT
Answer: C. By Using deposited money to make loans without reducing the value of the deposits
Explanation:
A.P.E.X
Answer:
c
Explanation:
In a SWOT analysis, what are strengths?
Answer:
A SWOT analysis is an evaluation of your company's strengths, weaknesses, opportunities, and threats.
Explanation:
The SWOT approach is a useful tool to support various brainstorming sessions due to its benefits, such as its ability to address a variety of business difficulties.
What is SWOT analysis?Strengths, Weaknesses, Opportunities, and Threats is referred to as SWOT. Your company's internal strengths and weaknesses are factors over which you have some control and which you can make changes. Examples include your team members, your intellectual property and patents, and your location.
A SWOT analysis is a strategic planning tool that assists businesses in gaining a comprehensive understanding of their key difficulties and in choosing actions that will actually support their success.
The acronym stands for the four principles of strengths, weaknesses, opportunities, and threats in English.
An organization or project's strengths, weaknesses, opportunities, and threats are identified using a SWOT analysis, a planning technique.
With this approach, you concentrate your analysis on the three Cs, or strategic triangle, which are the company, the competitors, and the customers.
Finding the key success factor (KSF) and developing a workable marketing strategy can both be accomplished by carefully examining these three components.
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can yall plz help me with this science qustion the choses are masses,shapes,and sizes ....also ill give brainlest
Answer:
the answer is the mass.
Answer:
the answer is the mass
the answer is the mass
If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability. A. True B. False
Answer:
B. False
Explanation:
The portion of a long term liability that is due within one year is called current portion of long-term debt (CPLTD). The name basically explains everything. E.g. you owe a note receivable worth $100,000 and every year you must pay an installment of $10,000 plus interest. The CPLTD (current liability) = $10,000, and the long term debt = $90,000.
Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 6.2% coupon rate and pays the $62 coupon once per year. The third has a 7.2% coupon rate and pays the $72 coupon once per year.
a. If all three bonds are now priced to yield 7% to maturity, what are their prices?
b. If you expect their yields to maturity to be 7% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
c. If you expect their yields to maturity to be 6% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
Answer:
a. If all three bonds are now priced to yield 7% to maturity, what are their prices?
zero coupon bond = $1,000 / (1 + 7%)¹⁰ = $508.35
6.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)¹⁰ = $508.35
PV of coupon payments = $62 x 7.0236 (PV annuity factor, 7%, 10 periods) = $435.46
market price = $943.81
7.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)¹⁰ = $508.35
PV of coupon payments = $72 x 7.0236 (PV annuity factor, 7%, 10 periods) = $505.70
market price = $1,014.05
b. If you expect their yields to maturity to be 7% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
zero coupon bond = $1,000 / (1 + 7%)⁹ = $543.93
before tax holding period return = ($543.93 - $508.35) / $508.35 = 7%
after tax HPR = 7% x 0.8 = 5.6%
6.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)⁹ = $543.93
PV of coupon payments = $62 x 6.5152 (PV annuity factor, 7%, 10 periods) = $403.94
market price = $947.87
before tax holding period return = ($947.87 - $943.81 + $62) / $943.81 = 7%
after tax HPR:
($4.06 x 0.8) / $943.81 = 0.34%
($62 x 0.7) / $943.81 = 4.60%
total = 4.94%
7.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)⁹ = $543.93
PV of coupon payments = $72 x 6.5152 (PV annuity factor, 7%, 10 periods) = $469.09
market price = $1,013.02
before tax holding period return = ($1,013.02 - $1,014.05 + $72) / $1,014.05 = 7%
after tax HPR:
(-$1.03 x 0.8) / $1,014.05 = -0.08%
($72 x 0.7) / $1,014.05 = 4.97%
total = 4.89%
c. If you expect their yields to maturity to be 6% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
zero coupon bond = $1,000 / (1 + 6%)⁹ = $591.90
before tax holding period return = ($591.90 - $508.35) / $508.35 = 16.44%
after tax HPR = 16.44% x 0.8 = 13.15%
6.2% coupon bond:
PV of face value = $1,000 / (1 + 6%)⁹ = $591.90
PV of coupon payments = $62 x 6.8017 (PV annuity factor, 6%, 10 periods) = $421.71
market price = $1,013.61
before tax holding period return = ($1,013.61 - $943.81 + $62) / $943.81 = 13.96%
after tax HPR:
($69.80 x 0.8) / $943.81 = 5.92%
($62 x 0.7) / $943.81 = 4.60%
total = 10.52%
7.2% coupon bond:
PV of face value = $1,000 / (1 + 6%)⁹ = $591.90
PV of coupon payments = $72 x 6.8017 (PV annuity factor, 6%, 10 periods) = $489.72
market price = $1,081.62
before tax holding period return = ($1,081.62 - $1,014.05 + $72) / $1,014.05 = 13.76%
after tax HPR:
($67.57 x 0.8) / $1,014.05 = 5.33%
($72 x 0.7) / $1,014.05 = 4.97%
total = 10.30%
Leia just read that the national debt owed by the federal government is at an all-time high. (Explain any possible impact on the federal government from unexpected inflation.)
Answer:
If the government of the country where Leia is from has a national debt at an all-time high, and at the same time, unexpected high inflation hits, the situation for the government can become extremely dire.
This is because high inflation will lower the value of the domestic currency, which is probably not the currency in which most of of the debt is owed. The proportion of the national debt that is owed in foreign currency will then become more expensive, because more units of domestic currency will be needed to exchange for the foreign currency, rendering the cost of the national debt a lot higher.
On February 1, Tory began a service proprietorship with an initial cash investment of $2,000. The proprietorship provided $5,000 of services in February and received full payment in March. The proprietorship incurred expenses of $3,000 in February, which were paid in April. During March, Tory drew $1,000 against the capital account. In the proprietorship's financial statements for the two months ended March 31, prepared under the cash basis method of accounting, what amount should be reported as capital
The amount that should be reported as the capital is $6,000
Calculation of the capital amount:The following formula should be used.
= Initial cash investment + Investments made + Income received - Drawings
= $2,000 + $0 + $5,000 - $1,000
= $6,000
As per the cash basis accounting method, the cash revenues is more than the cash expenses so the same should be considered as an income
Hence, the amount reported as capital is $6,000.
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Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020Accounts receivable (net) $22 $33 Net sales $132 $117 Cost of goods sold $77 $72 Net income $22 $34 Inventory turnover 6.05 Return on assets 12.3 % Equity multiplier 2.53 Dowling's return on equity for 2021 is: (Round your answer to 1 decimal places.)Multiple Choicea) 7.7%.b) 16.7%.c) 31.1%.d) 24.1%.
Answer:
The answer is "12.7"
Explanation:
In the question the correct choice is missing so, its correct solution can be defined as follows:
Following are the formula for calculating the "Average Inventory":
Formula:
[tex]\therefore \text{Inventory Turnover} = \frac{ \text{Cost of Goods Sold}} { \text{Average Inventory}}\\\\\\\because \text{Average Inventory} = \frac{ \text{Cost of Goods Sold}} {\text{Inventory Turnover}}[/tex]
[tex]=\frac{\$ \ 77}{ 6.05}\\\\=12.7\\[/tex]
Stepsis is doing laundry today, but the machine is not working, she crawls in and sees whats wrong, she fixes it but shes stuck, she calls StepBro.
What should StepBro do?
A. Call Jamal
B. Pull her out
C. Dice Roll Dance And Bunny Hop Dance
D. I like ya cut G her
Answer:
b or d
Explanation:
because pulling her out might get the problem done faster , but I like ya cut g her could resolve in even more action . um I go with d
Answer:
B
Explanation:
Be a decent human being boys