Answer:
if real GDP remains the same, an increase in the population actually means a lower average standard of living
Explanation:
Economic Growth is a increase in productive capabilities of an economy over a given period of time, usually a year. the economy is able to satisfy more of it's consumers wants and need.
GDP is said to be is total value of all finale goods and services produced within an economy in a given period of time, usually a year.nominal or price GDP is a GDP with no adjustment for price.
Suppose total disposable income in Country X rises by $500 billion while total consumption rises by $50 billion. What would be the slope of the consumption function for this nation
Answer:
b. 0.1
Explanation:
Options include "a. 0.5 b. 0.1 c. 1 d. 0.25 e. 0.4"
Consumption = C+Mpc * Yd
When C is autonomous consumption
Yd is disposable income.
Hence, if Yd increases by 500, consumption will increases by 500*Mpc =50 So, Mpc =50/500
Mpc = 0.1
suppose big d inc just paid a dividend of .50 per share it is expected dto increase its dividend by 2 per year if the market requires a return of 10 on assets of this risk how much wshould the stock be selling for
The question is incorrect, the correct question is stated below.
Suppose Big D, inc., just paid a dividend of $0.50 per share. It is expected to increase its dividend by 2% per year. If the market requires a return of 10% on assets of this risk, how much should the stock be selling for?
Answer:
The stock should be selling for P0 = $6.375 rounded off to $6.38
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is dividend expected for the next period g is the growth rate r is the required rate of return
P0 = 0.5 * (1+0.02) / (0.10 - 0.02)
P0 = $6.375 rounded off to $6.38
Companies and institutions using computers to perform extraordinarily large calculations that would be unsuitable for most computers would employ a(n) ____. a. application server b. office workstation c. supercomputer d. scientific/engineering workstation
Answer:
c. supercomputer
Explanation:
To achieve the goals of companies and institutions that use computers to perform large calculations, the use of supercomputers would be more appropriate.
Unlike traditional computers easily used in businesses and homes, supercomputers are machines designed for processing large volumes of data and information, with high hardware performance and high potential. Supercomputers are generally used for scientific purposes, being very useful for the development of scientific research in mathematics, biology, military, etc.
Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2020 profit of $300,000, assuming a single sole proprietor with no other earned income. (Round your intermediate calculations to the nearest whole dollar amount.)
Answer:
The answer is "$ 25,207.45".
Explanation:
Type = single property ownership
Year= 2020
Revenue = $ 300,000
calculating the tax on social security when it's up to 132,900 USD, i.e. the basis cap on earned earnings.
[tex]\to 132,900 \times 12.40 \% \\\\\to 132,900 \times 0.1240 \\\\\to \$ \ 16,479.6\ \ \ \ or \ \ \ \ \$ \ 16,480\\\\[/tex]
Calculating the Medicare levy, subject to a deduction of 7.65% from sole ownership, for every revenue received without any cap.
[tex]\to (300,000 \times 0.9235) \times 2.9 \% \\\\ \to 277,050 \times 0.029 \\\\\to \$ \ 8034.45 \\[/tex]
Where income exceeds 200,000, and 0.9% of exceeding income exceeds additional medicare tax.
[tex]\to [(300,000 \times 0.9235) - 200,000] \times 0.9 \% \\\\\to [(277,050) - 200,000] \times 0.009 \\\\\to 277,050\times 0.009 \\\\\to 693.45[/tex]
Medicare tax and social insurance total:
[tex]\to 16,480 + 8,034 + 693.45 \\\\\to 25,207.45[/tex]
Exxon-Mobil is planning to sell a number of producing oil wells. The wells are expected to produce 100,000 barrels of oil per year for 8 more years at a selling price of $28 per barrel for the next 2 years, increasing by $1 per barrel through year 8. How much should an independent refiner be willing to pay for the wells now, if the interest rate is 10% per year?
Answer:
$15,297,732.26 or $16,098,076.98
Explanation:
An independent refiner will be willing to pay the discounted value of the total proceeds from oil sales from the oil wells.
The question is ambiguous regarding the rate of increase in the price of oil after year 2, so two solutions are provided for the increase.
Solution 1: oil price is $28 for years 1 and 2, then increases by $1 to $29 for years 3 to 8.
Inflow for years 1 and 2 = 28 * 100,000 = 2,800,000
Inflows for years 3 to 8 = 29 * 100,000 = 2,900,000
Therefore, the present value of all inflows with a discount rate of 10% =
[tex]\frac{2,800,000}{1.1} +\frac{2,800,000}{1.1^{2}} +\frac{2,900,000}{1.1^{3}}+\frac{2,900,000}{1.1^{4}}+\frac{2,900,000}{1.1^{5}}+\frac{2,900,000}{1.1^{6}}+\frac{2,900,000}{1.1^{7}}+\frac{2,900,000}{1.1^{8}}[/tex]
= $15,297,732.26.
Solution 2: oil price is $28 for years 1 and 2, then increases by $1 every year from years 3 to 8.
Inflow for years 1 and 2 = 28 * 100,000 = 2,800,000
Inflows for years 3 = 29 * 100,000 = 2,900,000
Inflows for years 4 = 30 * 100,000 = 3,000,000
Inflows for years 5 = 31 * 100,000 = 3,100,000
Inflows for years 6 = 32 * 100,000 = 3,200,000
Inflows for years 7 = 33 * 100,000 = 3,300,000
Inflows for years 8 = 34 * 100,000 = 3,400,000
Therefore, the present value of all inflows with a discount rate of 10% =
[tex]\frac{2,800,000}{1.1} +\frac{2,800,000}{1.1^{2}} +\frac{2,900,000}{1.1^{3}}+\frac{3,000,000}{1.1^{4}}+\frac{3,100,000}{1.1^{5}}+\frac{3,200,000}{1.1^{6}}+\frac{3,300,000}{1.1^{7}}+\frac{3,400,000}{1.1^{8}}[/tex]
= $16,098,076.98.
Jen Rogers withdrew a total of $26,000 from her business during the current year. The entry needed to close the withdrawals account is:________
a. Debit Income Summary and credit Dividends for $20,000.
b. Debit Retained Earnings and credit Dividends for $20,000.
c. Debit Dividends and credit Cash for $20,000.
d. Debit Dividends and credit Retained Earnings for $20,000.
e. Debit Income Summary and credit Cash for $20,000.
Answer:
b. Debit Retained Earnings and credit Dividends for $20,000.
Explanation:
The journal entry to record the withdrawals or dividends is:
Dr Dividends 20,000
Cr Cash 20,000
at the end of the year, you close the dividends account against retained earnings:
Dr Retained earnings 20,000
Cr Dividends 20,000
this entry reduces the company's equity since retained earnings has a normal credit balance.
A company paid an annual dividend of $2.50 per share yesterday. The dividend is expected to remain constant for three years. At year three, after receiving the dividend, the stock can be sold for $47 a share. If the appropriate discount rate for the stock is 9.4 percent, what is the price of the stock today
Answer:
$42.18
Explanation:
The price of the stock = Dividend in year 1 / (1 + discount rate)^1 + Dividend in year 2 / (1 + discount rate)^2 + Dividend in year 3 / (1 + discount rate)^3 + Price in year 3 / (1 + discount rate)3^
The price = $2.5 / 1.094 + $2.5 / 1.0942 + $2.5 / 1.0943 + $47 / 1.0943
The price = $2.5 / 1.094 + $2.5 / 1.0942 + $49.5 / 1.0943
The Price = $42.18
The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income 2. Financial data for Greene Company follows: Sales $825,000 Accounts receivable: Beginning of year 75,000 End of year 87,000 Net income 1,500,000 What is Greene Company's accounts receivable turnover
Answer and Explanation:
The computation is shown below:
As we know that
Account receivable turnover is
= Sales ÷ average account receivable
So, sales; average accounts receivable is considered
2. Now the account receivable turnover ratio is
Average receivable is
= ($75,000 + $87,000) ÷ 2
= $81,000
So,
Account receivable turnover ratio is
= $825,000 ÷ $81,000
= 10.20 times
Selected accounts with some amounts omitted are as follows: Work in Process Oct. 1 Balance 20,200 Oct. 31 Goods finished X 31 Direct materials 90,300 31 Direct labor 152,300 31 Factory overhead X Finished Goods Oct. 1 Balance 13,700 31 Goods finished 348,800 If the balance of Work in Process on October 31 is $199,100, what was the amount of factory overhead applied in October
Answer:
allocated manufacturing overhead= $285,100
Explanation:
Giving the following information:
Work in Process Oct. 1 Balance 20,200
Direct materials 90,300
Direct labor 152,300
Factory overhead X
Goods finished 348,800
Work in Process on October 31 is $199,100
To calculate the factory overhead applied, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
348,800 = 20,200 + 90,300 + 152,300 + allocated manufacturing overhead - 199,100
allocated manufacturing overhead= 348,800 - 20,200 - 90,300 - 152,300 + 199,100
allocated manufacturing overhead= $285,100
Zhang Industries sells a product for $840. Unit sales for May were 600 and each month's sales are expected to exceed the prior month's results by 4%. Compute the total budgeted sales dollars for the month ended June 30.
Answer: $734,160
Explanation:
Sales in June are to be 4% higher than May.
Sales in June = 840 * ( 1 + 4%)
= 873.6 units
= 874 units rounded up
Budgeted sales dollars;
= 874 * 840
= $734,160
Firm A acquires firm B when firm B has a book value of assets of $255 million and a book value of liabilities of $85 million. Firm A actually pays $275 million for firm B. This purchase would result in goodwill for firm A equal to _____.
Answer:
$105 million
Explanation:
The computation of the goodwill for the Firm A is shown below;
Goodwill = Acquiring Price - (Assets - Liabilities)
= $275 million - ($255 million - $85 million)
= $275 million - $170 million
= $105 million
Hence, the goodwill for the Firm A is $105 million
We simply applied the above formula and the same is to be considered
Meric Mining Inc. recently reported $17,500 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income after taxes
Answer:
$6,295.31
Explanation:
Net income=earnings before tax *(1-tax rate)
earnings before tax=sales-operating costs- depreciation-interest expense
sales=$17,500
operating costs=$7,500
depreciation=$1,200
interest expense=bonds value*interest rate=$6,500*6.25%=$406.25
earnings before tax=$17,500-$7,500-$1,200-$406.25=$8,393.75
tax rate=25%
net income after taxes=$8,393.75*(1-25%)
net income after taxes=$6,295.31
On January 1, 2021, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 million in cash and signed a 6% note requiring the company to pay the remaining $5 million plus interest on December 31, 2022. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should Laramie record the purchase of land
Answer:
$6.2 Million
Explanation:
The purchase of land will be recorded as the amount paid for purchasing it. In this case the note which bears interest rate of 6% will be as per its face value plus the cash paid for purchasing of the land.
Note (at interest rate of 6%) + Cash Paid = Purchase of Land
5,000,000 + 1,200,000 = 6,200,000 or 6.2 Million
Hence, the amount of purchase of land is to be recorded as $6.2 Million.
Answer:
6.2 mil dollars
Explanation:
For a production budget, the ______ is the beginning inventory for the year. beginning inventory for the first quarter beginning inventory for the last quarter ending inventory for the last quarter sum of beginning inventories for the four quarters
Answer:
Beginning inventory for the first quarter.
Explanation:
The beginning inventory is book important or record that provides the accounting and management of products within the companies business. And during this case where the primary quarter is been discussed, the whole needs are determined by adding together the budgeted sales of 10,000 cases for the quarter and therefore the desired ending inventory of 6,000 cases. The ending inventory is meant to supply some cushion just in case problems develop in production or sales increase unexpectedly.
It uses goods in production and people that are on the point of be sold.
An advertisement announces that the price of wine will drastically increase next month. Therefore, this month we would expect a. the price to decrease and the quantity of wine sold to increase. b. both the price and quantity of wine sold to increase. c. the price to increase and the quantity of wine sold to decrease. d. both the price and quantity of wine sold to decrease
Answer:
b. both the price and quantity of wine sold to increase
Explanation:
In the context, it is given that the price of the wine will increase in a drastic manner as announced by an advertisement the next month. So, this month we could expect an increase in the price as well as the quantity of the wine that is being sold.
As per market policy, when the demand of an item increases, both the price as well as the quantity sold will increase. Accordingly, this month the demand of wine would increase as from next month the price of wine would much much more than this month. SO this month people would buy more wine.
Which of the following are the two basic categories of primary research? a. Consumer marketing research and business marketing research b. Qualitative research and quantitative research c. Observation research and survey research d. People marketing research and idea marketing research 4 points g
Answer:
c. Observation research and survey research
Explanation:
The primary research is the first-hand information with an experiment and events. The primary research is more complex and needs depth exploration. Focuses on surveys, interviews, observations, and experiences with the key disadvantages of the cost involved. Such as observing and interacting with the situation and making notes.According to the Census Bureau, in October 2016, the average house price in the United States was $28,658. 6 years earlier, the average price was $21,608. What was the annual increase in the price of the average house sold
Answer:
4.7%
Explanation:
Calculation for the annual increase in the price of the average house sold
Using this formula
A=P(1+r/100)^n
R = (FV / PV)1/6– 1
where,
A represent future value
P represent present value
r represent rate of interest
n represent time period.
Let plug in the formula
$28,458=$21,608*(1+r/100)^6
($28,458/$21,608)^(1/6)=(1+r/100)
(1+r/100)=1.04696
r=1.04696-1
=4.7% Approximately
Therefore the annual increase in the price of the average house sold will be 4.7%
Many firms offer substantial rebates by mail or coupons for discounts at the point of sale. The people who use the rebates or coupons have ______ than the people who don't use them.
Answer:
greater price sensitivity
Explanation:
Here are the options of this question :
greater price sensitivity
less price sensitivity
inverted price sensitivity
the same price sensitivity
People who use the coupons or rebates are more price sensitive. They would probably not purchase the good or purchase less of the good if there was no rebate. It can be said that this people have an elastic demand
Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $92,500 and equipment depreciation of $41,000 for 3,700 hours of production. The department actually completed 4,400 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Answer:
$151,000
Explanation:
Fabricating department budgeted direct labor = $92,500
Budgeted labor rate = Budgeted direct labor ÷ Hours of production
= $92,500 ÷ 3,700
= $25 per hour
Direct labor = Completed hours of production × Budgeted labor rate
= 4,400 × $25
= $110,000
Budget for the fabricating department at 4,400 hours of production
Budgeted cost = Direct labor cost + Equipment depreciation
= $110,000 + $41,000
= $151,000
Chiodini Incorporated has an $900,000 investment opportunity that involves sales of $2,430,000, fixed expenses of $1,044,900, and a contribution margin ratio of 50% of sales. The return on investment (ROI) for this year's investment opportunity considered alone is closest to:
Answer: 18.9%
Explanation:
Return on Investment = Net Income/ Average Investment
Net Income = Contribution Margin - Fixed Expenses
= (2,430,000 * 50%) - 1,044,900
= $170,100
Return on Investment therefore is;
= 170,100/900,000
= 18.9%
In the long run: Group of answer choices production is always greater than zero. the firm considers all factors as fixed. the firm considers all factors as variable. production choices are more limited than in t
Answer:
the firm considers all factors as variable
Explanation:
The long run period is the period where all factors of production are fixed. This is usually referred to as the planning period of the firm.
The short run period is the period where some factors of production are variable and other factors are fixed
What salvage value of the Touchet Industries drill press will make the two alternatives equivalent, assuming an interest rate of 10%
Answer:
the numbers are missing, so I looked for a similar question and found the attached image:
Wallula machine
cash flow year 0 = -$30,000
cash flow year 1 = -$1,500
cash flow year 2 = -$1,500
cash flow year 3 = -$1,500
cash flow year 4 = -$1,500
cash flow year 5 = -$1,500
cash flow year 6 = $3,500
the NPV = -$33,710.52
Touchet machine
cash flow year 0 = -$36,000
cash flow year 1 = -$2,000
cash flow year 2 = -$2,000
cash flow year 3 = -$2,000
cash flow year 4 = -$2,000
cash flow year 5 = -$2,000
cash flow year 6 = -$2,000 + ?
NPV must equal -$35,605.91
the present value of the initial outlay and the first 5 cash flows is -$43,581.57
-$35,605.91 = -$43,581.57 - $2,000/1.1⁶ + ?/1.1⁶
-$35,605.91 = -$44,710.52 + ?/1.1⁶
$9,104.61 = ?/1.1⁶
$9,104.61 x /1.1⁶ = ?
? = $16,129.37
the salvage value of Touchet's machine must be $16,129.37 ≈ $16,129
If the Trump government decides to take an aggressive action by imposing harsh tariffs on Chinese imports, what is the motivation behind
Answer:
Even though most Economists are against tariffs, they are usually imposed for several reasons such as;
To increase Net Exports - The Trump Government might be aiming to reduce the imports that the US gets from China which will enable the country's net exports to grow because net exports are calculated by subtracting imports from exports. To protect local industries - The Trump Government has frequently accused China of selling goods at such low prices that American firms cannot compete. Tariffs would increase the prices of Chinese goods to enable that competition. To improve the Current Account - The current account of the US records both imports and exports. If tariffs reduce imports, the current account would be better off.A company currently spends $4,295 on operating and maintenance costs per year. They expect these cost to increase by $1,111 for the next 5 years. What is the equivalent annual cost of these O & M costs if the MARR is 8.1%?
Answer:
equivalent annual cost = $7,455.39
Explanation:
current costs $4,295
costs in 1 year = $5,406
costs in 2 years = $6,517
costs in 3 years = $7,628
costs in 4 years = $8,739
costs in 5 years = $9,850
first we must calculate the PV of operating and maintenance costs for years 1 through 5 = $29,688.92
equivalent annual cost = PV / PV annuity factor
PV annuity factor, 8.1%, 5 periods = 3.98221
equivalent annual cost = $29,688.92 / 3.98221 = $7,455.39
Queensryche Pharmaceutical Company is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of
Answer:
Administrative law
Explanation:
Administrative law is a set of laws the that regulates activities of various administrative government agencies.
Such activities include rule making adjudication, and enforcement of various regulatory functions.
Administrative law is a part of public law that is used by government agencies that regulate social, economic, and political entities.
In the given scenario the Food and Drug Administration regulates pharmaceutical companies like Queensryche Pharmaceutical Company
Morgan Manufacturing Company has the following account balances at year end: Office supplies $ 4,000 Raw materials 27,000 Work-in-process 59,000 Finished goods 97,000 Prepaid insurance 6,000 What amount should Morgan report as inventories in its balance sheet
Answer:
$183,000
Explanation:
Morgan's inventory account should include:
Raw materials for $27,000
Work in process for $59,000
Finished goods for $97,000
total value = $183,000
Prepaid insurance is a current asset account, but it doesn't include any type of goods. Office supplies are generally either expensed directly or reported under a separate account, not under inventory.
If the tax on gasoline is increased to provide incentives to curb air pollution, then the tax serves as
Answer:
A user fee.
Explanation:
These are general fees that are known to be paid by some countries indigenous occupants which tends to commence its reading from the first of January till the 31st of December. They particularly known to be renewable in most cases. User fees confer with a financing mechanism that has two main characteristics: payment is created at the purpose of service use and there's no risk sharing. User fees can entail any combination of drug costs, supply and medical material costs, entrance fees or consultation fees. they're typically obtained each visit to a health service provider, although in some cases follow-up visits for the identical episode of illness is covered by the initial payment.
A company borrowed $29,000 by signing a 90-day promissory note at 12%. The total interest due on the maturity date is: (Use 360 days a year.) Multiple Choice $72.50 $435.00 $870.00 $1,305.00 $3,480.00
Answer:
c. $870.00
Explanation:
Interest up to maturity date = $29,000 * 12% * 90/360
Interest up to maturity date = $29,000 * 0.12 * 90/360
Interest up to maturity date = $870
Now suppose that the school Durbin attended closed down before he could finish his education. In court, Durbin argues that this resulted in a failure of consideration: he did not get something of value in exchange for his promise to pay. Assuming that the government is a holder of the promissory note, will this argument likely be successful against it? Why or why not?
Answer:
No, Durbin owes the government. Durbin signed a promissory note with his bank and then defaulted, so the bank collected the money from the government and it became the holder in due course. Durbin did receive consideration, he received money that he paid to the school.
The document signed by Durbin complies with all the requirements necessary for a valid negotiable instrument:
It is an unconditional order to payIt involves an specific amount of moneyIt is written and signedThe note is made to the bearerThe facts are simple, Durbin signed a valid negotiable instrument and is liable for it. Probably Durbin's best shot is to sue the school and try to recover damages form it. Even if the school closed or declared bankruptcy, Durbin can still try to collect money form them.
You are evaluating a stock return. You are expecting the stock return to change based on economy status. You are expecting that the probability of recession is 20%, normal is 30% and boom is 50%, and returns are -5%, 10%, and 13% respectively. What is the expected rate of return on this stock
Answer:
The expected rate of return on this stock is 8.5%
Explanation:
The expected rate of return is shown below:
= Recession probability × return + normal probability × return + boom probability × return
= 20% × -5% + 30% × 10% + 50% × 13%
= -1% + 3% + 6.5%
= 8.5%
Hence, the expected rate of return on this stock is 8.5%
We simply applied the above formula
The same is to be considered