1. Suppose the federal government observes a decrease in net exports. Examine this event in terms of the aggregate demand and aggregate supply model.
A. The increase in gross investment will cause____.
B. This will lead to_____in the price level and____in real GDP.
C. ____fiscal policy will be used to_____.
D. The fiscal policy actions may include_____in taxes and/or____in government purchases.
E. The goal of fiscal policy is to_____.
2. Suppose the federal government observes an increase in gross investment. Examine this event in terms of the aggregate demand and aggregate supply model.
A. The decrease in net exports will cause_____.
B. This will lead to_____in the price level and_____in real GDP.
C. _____fiscal policy will be used to_____.
D. The fiscal policy actions may include_____in taxes and/or_____in government purchases.
3. In which instance would "crowding out" likely become a concern?
A. A balanced budget law prevents the government from taking fiscal action during a recession.
B. Prior-year budget surpluses allow the government to use saved funds to reduce taxes.
C. In order to increase spending on infrastructure, the federal government decides to borrow funds.
4. What becomes more difficult if "crowding out" occurs due to fiscal action?
A. Purchasing stocks and other financial investments.
B. Making economic investments.
C. Saving income for future purchases.
Answers
Answer:
1. a. The decrease in net exports will cause a decrease in aggregate demand.
b. This will lead to a decrease in the price level and a decrease in real GDP.
c. Expansionary fiscal policy will be used to reduce unemployment.
d. The fiscal policy actions may include a decrease in taxes and/or an increase in government purchases.
e. The goal of fiscal policy is to smooth out business cycles.
__________________________________________________________
2. a. The increase in gross investment will cause an increase in aggregate demand.
b. This will lead to an increase in the price level an increase in real GDP.
c. Contractionary fiscal policy will be used to reduce inflation..
d. The fiscal policy actions may include an increase in taxes and/or a decrease in government purchases.
e. The goal of fiscal policy is to smooth out business cycles.
__________________________________________________________
3. C. In order to increase spending on infrastructure, the federal government decides to borrow funds.
Crowding out occurs when the government borrows a significant amount of loanable funds such that interest rates rise and private firms are unable to afford the new rates so borrow less.
__________________________________________________________
4. B. Making economic investments.
With private firms unable to borrow much in a crowding out scenario, they will be unable to use those funds to invest in the economy.
Related Questions
Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $13,016 and crediting cash for $12,000. What is the annual stated interest rate for the debenture bonds
Answers
Answer: 12%
Explanation:
Stated interest rate is used in the calculation of the annual interest payment.
Interest payment = Face value of bonds * Stated interest rate
Annual Interest payment = Semi annual interest payment * 2
= 12,000 * 2
= $24,000
24,000 = 200,000 * Stated interest
Stated interest = 24,000 / 200,000
= 0.12
= 12%
1. Cash balance per bank, July 31, $7,308.
2. July bank service charge not recorded by the depositor $42.
3. Cash balance per books, July 31, $7,392.
4. Deposits in transit, July 31, $2,982.
5. $1,680 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company.
6. Outstanding checks, July 31, $1,260.
(a) Prepare a bank reconciliation at July 31, 2010
(b) Journalize the adjusting entries at July 31 on the books
Answers
Answer:
Part a
Bank reconciliation at July 31, 2010
Balance as per Bank Statement $ 7,308
Add Outstanding Lodgments $2,982
Less Unpresented Checks ($1,260)
Balance as per Cash Book $9,030
Part b
Adjusting entries at July 31 on the books
Item 2
Debt : Bank service charge $42
Credit : Cash $42
To record the Bank service charge
Item 5
Debt : Cash $1,680
Credit : EFT Payment - Account Receivable $1,680
To record the amount collected on behalf of Cullumber Company
Explanation:
The Bank Reconciliation Statement is used to determine the true Cash Balance at the end of the month.
Updated Cash Book
Debit :
Balance $7,392
Credit Transfer $1,680
Total $9,072
Credit
Bank service charge $42
Balance (Balancing amount) $9,030
Total $9,072
Discuss the benefits of businesses that are involved in the macro environment
Answers
A person managing a dry-cleaning store for $30,000 per year decides to open a dry-cleaning store. The revenues of the store during the first year of operation are $100,000 and the expenses are $35,000 for salaries, $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. Calculate (a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the economic profit, and (e) indicate whether the person should open the dry-cleaning store.
Answers
Answer:
$60,000
$40,000
$30,000
$10,000
he can open the store
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Explicit cost = $35,000 + $10,000 + $8,000 + $2,000 + $5,000 = $60,000
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. If he didn't open the dry cleaning stores he could be earning $30,000 as a manager. $30,000 is his implicit cost
Accounting profit or business profit = total revenue - explicit cost
$100,000 - $60,000 = $40,000
Economic profit = accounting profit - implicit cost
$40,000 - $30,000 = $10,000
Since his economic and accounting profit are positive, he can open the store
what is a bond? in your own words. economics.
Answers
Answer:
A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.
Explanation:
Answer:
A bond is a fixed income Instrument that represents a loan made by investors to a borrower ( typically corporate or governmental).
what is capital? in your own words. economics.
Answers
Answer:
In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answers
Answer:
Underapplied overhead= $1,640
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 497,040 / 21,800
Predetermined manufacturing overhead rate= $22.8 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.8*21,500
Allocated MOH= $490,200
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 492,040 - 490,200
Underapplied overhead= $1,640
You and your partner have become very interested in cross-country motorcycle racing and wish to purchase entry-level equipment. You have identified two alternative sets of equipment and gear. Package K has a first cost of $200,000, an operating cost of $6,000 per quarter, and a salvage value of $30,000 after its 2-year life. Package L has a first cost of $280,000 with a lower operating cost of $2,200 per quarter and an estimated $30,000 salvage value after its 4-year life. Which package offers the lower present worth analysis at an interest rate of 20% per year, compounded quarterly
Answers
Answer:
Package K offers the lower present worth analysis.
Explanation:
This can be determined using the following 3 steps.
Step 1: Calculations of present worth of Package K
First cost = $200,000
Present value of quarterly operating cost = quarterly operating cost * ((1- (1/(1 + r))^n)/r) ....... (1)
Where;
r = quarterly interest rate = interest rate per year / Number of quarters in a year = 20% / 4 = 5%, or 0.05
n = number of quarters = Number of years * Number of quarters in a year = 2 * 4 = 8
Substituting the values into equation (1), we have:
Present value of quarterly operating cost = $6,000 * ((1- (1/(1 + 0.05))^8)/0.05) = $38,779.28
Present value of salvage value = Salvage value / (1 + quarterly interest rate)^Number of quarters = $30,000 / (1 + 0.05)^8 = $20,305.18
Present worth of package K = First cost + Present value of quarterly operating cost - Present value of salvage value = $200,000 + $38,779.28 - $20,305.18 = $218,474.10
Step 2: Calculations of present worth of Package L
First cost = $280,000
Present value of quarterly operating cost = quarterly operating cost * ((1- (1/(1 + r))^n)/r) ....... (1)
Where;
r = quarterly interest rate = interest rate per year / Number of quarters in a year = 20% / 4 = 5%, or 0.05
n = number of quarters = Number of years * Number of quarters in a year = 4 * 4 = 16
Substituting the values into equation (1), we have:
Present value of quarterly operating cost = $2,200 * ((1- (1/(1 + 0.05))^16)/0.05) = $23,843.09
Present value of salvage value = Salvage value / (1 + quarterly interest rate)^Number of quarters = $30,000 / (1 + 0.05)^16 = $13,743.35
Present worth of package L = First cost + Present value of quarterly operating cost - Present value of salvage value = $280,000 + $23,843.09 - $13,743.35 = $218,474.10 = $269,900.25
Step 3: Comparison of present worth
Present worth of package K = $218,474.10
Present worth of package L = $269,900.25
Therefore, Package K offers the lower present worth analysis.
Book Co. is an online book store which sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing its current and predicted sales, Book Co. decides to move away from non-fictions and target only the fiction market which is expected to have a 20% growth in sales. This is an example of __________ strategy.
Answers
Answer:
A corporate-level strategy
Explanation:
Book Co. is an online book store that sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing it's current and predicted sales, Book Co. decides to move away from non-fiction and target only the fiction market which is expected to have a 20% growth in sales. This is an example of a corporate-level strategy.
What are corporate-level strategies?That destination influences all the techniques and decisions in each other as a part of your enterprise. So, for instance, in case your commercial enterprise has reached market saturation and also you want to diversify to continue to exist, your company-degree method might be to unfold to new markets.
What are the 3 corporate strategies?To expand the business and increase profits.To maintain current business operations.To revive an ailing business.Learn more about corporate strategies here: https://brainly.com/question/17151786
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The balance sheet of Sheffield Company at December 31, 2019, includes the following.
Notes receivable $51,200
Accounts receivable 195,600
Less: Allowance for doubtful accounts 24,600 $222,200
Transactions in 2020 include the following.
1. Accounts receivable of $151,300 were collected including accounts of $67,500 on which 4% sales discounts were allowed.
2. $5,670 was received in payment of an account which was written off the books as worthless in 2019.
3. Customer accounts of $24,800 were written off during the year.
4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,900. This estimate is based on an analysis of aged accounts receivable.
Required:
Prepare all journal entries necessary to reflect the transaction above.
Answers
Answer:
S/n Accounts titles Debit Credit
1. Cash[$151,300 - ($67,500*4%)] $148,600
Sales Discounts ($67,500*4%) $2,700
Accounts Receivable $151,300
2. Accounts Receivable $5,670
Allowance for Doubtful Accounts $5,670
Cash $5,670
Accounts Receivable $5,670
3. Allowance for Doubtful Accounts $24,800
Accounts Receivable $24,800
4. Bad Debt Expense $15,430
Allowance for Doubtful Accounts $15,430
Workings:
$24,600 + $5,670 - $24,800 = $5,470
$20,900 - $5,470 =
CalMark is a privately held company, so there is no information about beta available. However, a company in the same business with a debt to equity ratio the same as that of CalMark is publicly traded and has a beta which is two times that of the market. If the risk free rate is 4%, and the market risk premium is 5%, what is the estimated cost of existing equity for CalMark
Answers
Answer:
r - Calmark = 14%
Explanation:
Based on the comparative company analysis and using the CAPM we can calculate the required rate of return for CalMark. The comparative company analysis means to use the companies similar to the subject company to assume various ratios and factor about the subject company.
The formula to calculate the cost of equity which is also known as the required rate of return (r) is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the market risk premiumThe beta for market is always equal to 1. So a beta twice of the market will be 2.
r - Calmark = 4% + 2 * 5%
r - Calmark = 14%
Petty Cash Fund Entries Journalize the entries to record the following: Check is issued to establish a petty cash fund of $1,200. The amount of cash in the petty cash fund is now $396. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $466; miscellaneous selling expense, $193; miscellaneous administrative expense, $121. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,200, record the discrepancy in the cash short and over account.) a. Journalize the entry to establish the petty cash fund. fill in the blank a41770059faa020_2 fill in the blank a41770059faa020_4 b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank. fill in the blank e53a56fc003ffc3_2 fill in the blank e53a56fc003ffc3_3 fill in the blank e53a56fc003ffc3_5 fill in the blank e53a56fc003ffc3_6 fill in the blank e53a56fc003ffc3_8 fill in the blank e53a56fc003ffc3_9 fill in the blank e53a56fc003ffc3_11 fill in the blank e53a56fc003ffc3_12 fill in the blank e53a56fc003ffc3_14 fill in the blank e53a56fc003ffc3_15 Check My Work
Answers
Answer:
Dr Petty cash fund 1,200
Cr Cash 1,200
Dr Office supplies expenses 466
Dr Miscellaneous selling expenses 193
Dr Miscellaneous administrative expenses 121
Dr Cash short and over 24
Cr Petty cash fund 804
Dr Petty cash fund 804
Cr Cash 804
the balance in the petty cash fund is $1,2000 again
The rationale behind PPP is that: ________
1. Inflation and interest rate have positive relation.
2. Interest rate increases make local currency stronger in the future
3. Interest rate increases make local currency weaker in the future
4. Interest rate increases make local currency weaker in forward market
5. Interest rate increases make local currency stronger in forward market
6. Higher inflation makes local currency weaker in the future
7. Higher inflation makes local currency stronger in the future
8. Higher inflation makes local currency weaker in forward market
9. Inflation makes local currency stronger in forward market
Answers
Answer:
9. Inflation makes local currency stronger in forward market
Explanation:
The PPP consists of a measure of prices, in various nations that are used for the process of specific goods. In order to compare the absolute purchasing power of the nations. PPP makes an inflation rate and its equal to the price for a basket of goods. The PPP exchange rates may differ from those of market rates due to the tariffs and translation coats.Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.
Answers
Answer:
Economic motive.
Explanation:
An economic motive can be defined as the tendency of an investor or government to advocate and choose economic models, resources and factors of production that would positively and significantly impacts its economy.
In this scenario, Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its economic motive because it would ensure that the jobs within the country is protected while creating opportunities for the company.
Of the following, the most important cause of the Great Depression was soaring energy costs soaring energy costs:________
A. serious dislocation in international trade serious dislocation in international trade
B. European abandonment of the gold standard European abandonment of the gold standard
C. confiscatory social security taxes confiscatory social security taxes
D. excessive government spending
Answers
Answer:
The correct answer is the option A: Serious dislocation in international trade.
Explanation:
To begin with, the Great Depression is the famous name that receives the financial crisis that started in the United States with the breakdown of the New York's stock exchange market and that quickly spread throught out the whole world ended up shooking the entire global economy for about a complete decade.
The major causes of it where a couple of various things and situation that finally tended to the explosion of the stock market. The context was that the United States after winning the First War became the most powerful nation in the world and with that also the country with more gold reserves so it obligate the european nations to pay the debts of the war as well as difficult them to trade in the international market by elevating the taxes to their imports and pushing its own exports to every other country. So thats basically how the whole international trade suffered from a dislocation.
The most important cause of the Great Depression was A. serious dislocation in international trade.
What was the Great Depression?The Great Depression was the global economic meltdown that was experienced by many nations following the end of the first world war.
After the defeat of Germany, many reparation sanctions were imposed on it for civilian damages caused by aggressive Germany.
Many nations who participated in the war also experienced economic stagnation and uncertainty with war debts suffocating economic activities.
Thus, the most important cause of the Great Depression was Option A.
Learn more about the Great Depression at https://brainly.com/question/441267
Clarisa, an engineering manager, wants to purchase a resort accommodation to rent to skiers. She is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in the area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If Clarisa spends an average of $500 per month for utilities and the investment increases at a rate of 2% per month, how long would it be before she could sell the property for $100,000 more than she has in
Answers
Answer:
18.5 months approximately
Explanation:
initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($500 x n)
$250,000 x (1 + 2%)ⁿ = $350,000 + $500n
1.02ⁿ = $350,000/$250,000 + $500n/$250,000
1.02ⁿ = 1.4 + 0.002n
I tried to solve it by trial and error:
50 months:
2.69 ≠ 1.5
40 months:
2.21 ≠ 1.48
30 months:
1.81 ≠ 1.46
20 months:
1.49 ≈ 1.44 ⇒ getting closer
18 months:
1.43 ≈ 1.44 ⇒ almost
18.5 months:
1.44 = 1.44 ✓
Determinants of Interest Rate for Individual Securities The Wall Street Journal reports that the rate on 3-year Treasury securities is 8.30 percent, and the 6-year Treasury rate is 8.45 percent. From discussions with your broker, you have determined that expected inflation premium is 3.70 percent next year, 3.95 percent in Year 2, and 4.15 percent in Year 3 and beyond. Further, you expect that real interest rates will be 4.10 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security
Answers
Answer:
20%
Explanation:
Calculation for What is the maturity risk premium on the 6-year Treasury security
Maturity risk premium=
8.45% = 4.15% + 4.10% + MP
MP = 8.45% − (4.15% + 4.10%)
MP=8.45%-8.25%
MP=0.20*100
MP=20%
Therefore the maturity risk premium on the 6-year Treasury security will be 20%
Roberta is the supervisor of a fund-raising project. She notices that her team members are not able to meet the targets and they have deviated from the planned schedule. To understand the situation and the challenges that the team members are facing, Roberta wants to reach out to all the team members and establish an open communication culture. To convey her message clearly, the most appropriate way for Roberta would be to:
Answers
Answer: organize a face-to-face discussion with the team.
Explanation:
For Roberta to convey her message clearly, the most appropriate way will be for her to organize a face-to-face discussion with the team.
Since she wants to establish an open communication culture, having a face to face discussion is essential. In this case, the team shares their ideas and are more engaged. The team then understands what is required of them and works towards achieving company goals.
a. Which of the following items might you include in the basket of goods and services for the average student? The basket should include:______
a. cafeteria meals.
b. washing machines.
c. textbooks.
d. pens.
b. One of the primary expenses in a student’s basket is tuition, which is also included in the BLS calculation of the CPI. Consider the portion of total expenditure tuition accounts for in a student's budget versus a typical household's budget. Given that difference, the value of the student's basket over time has likely changed ________than the CPI.
Answers
Answer:
A. a. cafeteria meals.
c. textbooks.
d. pens.
B. More
Explanation:
Students use textbooks and pens at school to study and take down notes. They also go to the cafeteria at meal times to eat. A student does not directly need a washing machine to be a student so the options are cafeteria meals, textbooks and pens.
Overtime, tuition fees have ballooned and are now much higher than they used to be. Students therefore spend a significant amount of their budget on tuition as opposed to Households. It can therefore be said that student's basket overtime has likely changes more than the CPI.
People who agreed with the argument made in the speech would most likely have recommended which of the following solutions? Separate but equal segregated facilities to increase job opportunities for white workers Separate but equal segregated facilities to increase job opportunities for white workers A Continuation of the gold standard as the basis for money Continuation of the gold standard as the basis for money B Reduced government involvement in the economy in order to create more competition Reduced government involvement in the economy in order to create more competition C A stronger government role in the economic system A stronger government role in the economic system D
Answers
Answer:
A stronger government role in the economic system.
Explanation:
A stronger government role in the economic system will enable the increase of job opportunities for white workers. The government will intervene in the organizations and persuade them to hire and provide work to white workers perhaps a quota can be established or a general advice to all the organizations to increase the job opportunities for the white workers.
A loss contingency can be accrued when it is certain that funds are available to settle the disputed amount. the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred. it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated. an asset may have been impaired.
Answers
Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash, an investment with a fair value of $20,000 (inside basis of $10,000), and a parcel of land with a fair value of $10,000 (inside basis of $5,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $48,000. What is Randolph's basis in the distributed investment and land
Answers
Answer:
Randolph's basis in the distributed investment and land are as follows:
Investment = $10,000
Land = $23,000
Explanation:
The first step is that Randolph's basis in his RD Partnership interest of $48,000 is allocated to the distributed assets in an amount equal to the basis RD Partnership.
After this, Randolph will allocate remaining basis to assets which are not cash, hot assets and investment with unrealized appreciation.
Based on the above explanation, Randolph's basis in the distributed are as follows:
Cash = $15,000
Investment = Investment's Inside basis = $10,000
Land = Randolph's basis in his RD Partnership interest - Cash - Investment = $48,000 - $15,000 - $10,000 = $23,000
vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied
Answers
Answer:
$317,000
Explanation:
Calculation for the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied
Investment in Roberts Co. balance = $276,000 + $50,000 - $ 12,000 - $21,000 + $ 57,000 - $12,000 - $ 21,000
Investment in Roberts Co. balance = $317,000
Therefore the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied is $317,000
Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2020, Spindler acquires 400 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 640,000.00. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows:
Date U.S. Dollar per Brazilian Real (BRL)
1-Sep-20 $0.24
1-Dec-20 0.23
31-Dec-20 0.25
1-Mar-21 0.235
Required:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
Answers
Answer:
a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.
b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.
b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.
c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
Explanation:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800
b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400
c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's: A. desire to increase prices throughout the economy. B. inability to conduct open-market operations. C. need to generate revenue to pay for spending. D. responsibility to increase nominal interest rates by increasing expected inflation.
Answers
Answer:
C. need to generate revenue to pay for spending.
Explanation:
Inflation can be defined as the persistent rise in the price of goods and services in an economy.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation
Hence, hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's need to generate (tax) revenue to pay for spending.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
Analyze Johnson Stores’ staffing budget for holidaysJohnson Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $12,000 in daily sales. The average daily sales is anticipated to increase by $96,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work an eight-hour shift and will be paid $14 per hour.a. Determine the amount to budget for additional sales clerks for the holiday season.Holiday staff budget for additional clerks $b. If Johnson Stores has an average 40% gross profit on sales. What is the additional profit generated if a staff is added for the increased sale?Additional profit $
Answers
Answer:
Johnson Stores
Staffing Budget for Holidays:
a. The amount to budget for additional sales clerks for the holiday season is:
= $24,192.
b. The additional profit generated if a staff is added for the increased sale is:
= $1,209.60.
Explanation:
a) Data and Analysis:
Number of sales clerk required for each $12,000 in daily sales = 1
Average sales increase = $96,000
Number of sales clerk required for the $96,000 sales increase = 8 ($96,000/$12,000)
Number of shopping days from Black Friday to Christmas Eve = 27
Sales clerk works a shift per day = 8 hours
Wages per hour = $14
Total hours to be worked by the additional sales clerk = 8 * 27 * 8 = 1,728
Total wages = 1,728 * $14 = $24,192
Average gross profit on sales = 40%
Total gross profit on sales = $24,192 * 40% = $9,676.80
Additional gross profit generated by adding a staff = $1,209.60 ($9,676.80/8)
A registered representative at a member firm only deals in stocks and other equity investments. The registered representative helps an associate at that firm negotiate an underwriting of municipal bonds with a municipal issuer official that he knows very well from other business dealings. He does this as a 1-time event and is paid a finder's fee for his help. Which statement is TRUE?
a. the registered representative is considered to be a municipal finance professional and is subject to the political contribution rule.
b. an "mfp" - a municipal finance professional - is an associated person who solicits business from municipal issuers, renders financial advisory services to municipal issuers, or who performs research or writes reports on municipal issues.
c. because the representative was paid a finder's fee for get the municipal underwriting business from the issuer, that registered representative is defined as an mfp and comes under the $250 political contribution limit.
Answers
Answer: a. the registered representative is considered to be a municipal finance professional and is subject to the political contribution rule.
Explanation:
Municipal Finance Professionals are people who offer financial services to municipal issuers by soliciting business for them, advising them on financial matters and even performing research for them for which the MFP will be paid.
As the registered representative was paid a fee for helping negotiate an underwriting of municipal bonds, it can be said that he offered financial services to the municipal issuer and so is an MFP. As such, he is under the $250 political contribution limit that an MFP is subject to.
What suggestion does the author make about her main characters' future at
the end of the story?
A. They will spend the final years of their lives terrified, haunted by
their father's ghost.
B. They will gradually learn to take control over their own lives, but it
will be slow and difficult.
C. They will burn all their father's possessions to remove his hated
influence from their lives.
VO D. They have more freedom now that their father is dead, but they are
not strong enough to act on it.
Answers
Answer:
D
Explanation:
They have more freedom now that their father is dead, but they are
not strong enough to act on it.
E7.5 (LO 2) (Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Instructions a. Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases. 1. Sales and receivables are entered at gross selling price. 2. Sales and receivables are entered at net of cash discounts. b. Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.
Answers
Which of the following is the type of notice provided by recording?
Select one:
a reasonable
b. constructive
c. protective d. actual
Answers
Answer:
b
Explanation: