Answer:
b
Explanation:
because that's the true answer
Todd has a $100,000 25-year mortgage with a 12% nominal interest rate convertible monthly. The first payment is due one month after the mortgage is taken out. Twelve years after taking out the mortgage (after making his 144th payment), he refinances with a new nominal interest rate of 8%, again convertible monthly. The new mortgage will be paid off on the same date as the original one. Calculate the difference in the monthly mortgage payment after refinancing.
Answer:
The right solution is "$178.86".
Explanation:
The given values are:
Interest rate,
= 10%
New nominal interest rate,
= 8%
Years,
= 24
As per the question,
On the original loan, the annul installments will be:
= [tex]100000\times 0.01\times 1.01^{\frac{300}{1.01^{300-1}}}[/tex]
= [tex]1053.22[/tex] ($)
As we know,
The remaining 156 instalments are charged throughout the PV after the 144th deposit,
= [tex]1053.22\times \frac{(1.01^{156-1})}{(0.01\times 1.01^{156}})[/tex]
= [tex]83,017.90[/tex] ($)
On the refinanced loan, the annul installments will be:
= [tex]83017.90\times 0.01\times \frac{1.01^{300}}{(1.01^{300-1})}[/tex]
= [tex]874.36[/tex] ($)
hence,
After refinancing, the difference in mortgage will be:
= [tex]Annual \ installment \ on \ original \ loan-Annual \ installment \ on \ refinanced \ loan[/tex]
= [tex]1053.22-874.36[/tex]
= [tex]178.86[/tex] ($)
What is three ways eBay helps support small businesses? Full sentences please :)
Answer:
1. Gets you customers fast
2. There is a 95% chance you will make a profit
3. eBay is a big platform with multiple users
5
Select the correct answer.
Which type of investment offers both capital gains and interest income?
ОА.
property
OB.
CDs
Ос.
stocks
OD
bonds
Plato
Answer:
stocks
Explanation:
stocks have both a postitiveand negitive pole its the only one that makes sence.
Answer:
Stocks
Explanation:
Stocks is the type of investment offers both capital gains and interest income.
Carradine Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on machine-hours. The company based its predetermined overhead rate for
the current year on total fixed manufacturing overhead cost of $105,000, variable manufacturing
overhead of $3.00 per machine-hour, and 70,000 machine-hours. The company recently
completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job
P233 is closest to:
A) $90
B) $270
C) $450
D) $180
Answer:
Answer:
Amount of overhead applied is $270
correct option is (a) $270
Explanation:
given data
overhead cost = $105,000
overheat rate = $3 per machine hour
manufacturing overhead = 70000 machine hour
required = 60 machine hours
to find out
The amount of overhead applied to Job P 233 is closest to
solution
we find manufacturing overhead rate here that is
manufacturing overhead rate =
put here value
manufacturing overhead rate =
manufacturing overhead rate = 1.5 per machine hour
and
Total manufacturing overhead rate will be for overheat rate $3
Total manufacturing overhead rate = (3 + 1.5) = $4.5 per machine hour
so we can say that Amount of overhead is job P 233 is
Amount of overhead applied = 60 × $4.5 = 270
so here correct option is (a) $270
Explanation:
The cost-plus approach: Multiple Choice uses an assumed reasonable profit margin to determine the stand-alone price. refers to contracts where the contractor is not expected to recover all costs incurred in completing the project. is not allowed under ASC Topic 606 guidance for revenue recognition. refers to contracts that are modified from their original terms during the course of the contract.
Answer:
Uses an assumed reasonable profit margin to determine the stand-alone price.
Explanation:
Is the pricing method in which a resonable profit margin is added to the total product cost to determine the sale price of a product.
For Example
Product A Incurred a total cost of $20 to produce one unit. The company XYZ wants to earn 20% profit margin on the cost of the product, hence the price will be $24 ( $20 x ( 1 + 20% ).
The properly formatted question is as follow
The cost-plus approach:
Uses an assumed reasonable profit margin to determine the stand-alone price.
refers to contracts where the contractor is not expected to recover all costs incurred in completing the project.
is not allowed under ASC Topic 606 guidance for revenue recognition.
refers to contracts that are modified from their original terms during the course of the contract.
In which career is an employee least likely to work for a private company?
Insurance Sales
Personal Financial Advising
Investment Fund Management
Tax Preparation
Answer:
personal financial advising
Answer: B
Explanation:
The Michael Miller Corporation has a sales budget for next month of $200,000. Cost of goods sold is expected to be $125,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $8,000, and an ending inventory of $6,000 is desired. Beginning accounts payable is $26,000. How much merchandise inventory will The Michael Miller Corporation need to purchase next month
Answer:
the inventory to be purchased next month is $123,000
Explanation:
The computation of the inventory to be purchased next month is shown below:
= Cost of goods sold + closing inventory - opening inventory
= $125,000 + $6,000 - $8,000
= $123,000
hence, the inventory to be purchased next month is $123,000
We simply applied the above formula so that the purchase value of the inventory could come
Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Units Work-in-process, April 1 (25% complete) 50,000 Total units in process during April 290,000 Work-in-process, April 30 (60% complete) 30,000 Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method
Answer:
Equivalent units of production= 278,000
Explanation:
Giving the following information:
Total units in process during April 290,000
Work-in-process, April 30 (60% complete) 30,000
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
To calculate the equivalent units, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= (290,000 - 30,000) + 30,000*0.6
Equivalent units of production= 278,000
Albert purchased a tract of land for $140,000 in 2017 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2020 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2020
Answer:
The amount of loss that Albert can claim in 2020 is limited to:
= $3,000.
Explanation:
a) Data and Calculations:
2017 Purchase cost of the tract of land = $140,000
Speculated price of the land = $200,000
Highway engineers-determined value = $180,000
2020 Value of the land after the project was abandoned = $100,000
The total amount of capital loss = $40,000 ($140,000 - $100,000)
The total amount of capital loss that Albert can claim in any tax year is limited to $3,000. The remaining amount of the capitalloss that he incurred in 2020 will be carried forward.
Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015. a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015. a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.
Answer:
a1: January 31, 2016 Current ratio 1.357
February 1, 2015 1.358
a2: Quick ratio January 31, 2016 0.414
February 1, 2015 0.375
a3: Working capital January 31, 2016 4,467
February 1, 2015 4,033.
a4: % change in working capital in 2016 10.76%
% change in working capital in 2015 -10.97%
a5: % change in cash and cash equivalents in 2016 28.61%
% change in cash and cash equivalents in 2015 -10.68%
Explanation:
a1. Computation for Current ratio using this formula
Current ratio = current assets/current liabilities.
Let plug in the formula
Ratio for fiscal year ending January 31, 2016 = 16993/12526
Ratio for fiscal year ending January 31, 2016 = = 1.357
Ratio for the fiscal year ending February 1, 2015 = 15302/11269
Ratio for the fiscal year ending February 1, 2015 = 1.358
a2. Computation for Quick ratio using this formula
Quick ratio = (Total current assets – inventory – prepaid expenses)/current liabilities.
Let plug in the formula
Ratio for fiscal year ending January 31, 2016 = (16993-11809)/12526
Ratio for fiscal year ending January 31, 2016= 0.414
Ratio for the fiscal year ending February 1, 2015 = (15302-11079)/11269
Ratio for the fiscal year ending February 1, 2015 = 0.375
a3. Computation for Working capital using this formula
Working capital = current assets – current liabilities
Let plug in the formula
Working capital for fiscal year ending January 31, 2016 = 16993-12526
Working capital for fiscal year ending January 31, 2016= 4,467.
Working capital for the fiscal year ending February 1, 2015 = 15302-11269
Working capital for the fiscal year ending February 1, 2015= 4,033.
a4. Computation for % change in working capital in 2016 from prior year
% change in working capital in 2016 from prior year = (4467-4033)/4033
% change in working capital in 2016 from prior year = 10.76%
% change in working capital in 2015 from prior year = (4033-4530)/4530
% change in working capital in 2015 from prior year = -10.97%
a5. Computation for % change in cash and cash equivalents in 2016 from prior year
% change in cash and cash equivalents in 2016 from prior year= (2216-1723)/1723
% change in cash and cash equivalents in 2016 from prior year= 28.61%
% change in cash and cash equivalents in 2015 from prior year = (1723-1929)/1929
% change in cash and cash equivalents in 2015 from prior year= -10.68%
According to Adam Smith, specialization results in higher levels of output for all of the following reasons except: Select the correct answer below: Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage. Specialization allows businesses to take advantage of economies of scale. Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work. Workers who specialize in certain tasks often learn to produce more quickly and with higher quality.
Answer:
Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work
Explanation:
Specialization is when labour concentrates on only a particular job function. For example, let say you work in an office and the only task you are assigned to do is to type because you are good at it. This is an example of specialisation.
Advantages
It increases economies of scaleit increases the efficiency of labour. less time is wasted in changing job functions It increases the skill of labour . by performing the same task repeatedly labor skills improvesDisadvantages
it increases drudgery and boredom
ohn Baker, a cash basis calendar year taxpayer, paid the following during the year:Social security tax (withheld from wages) $4,500Real estate taxes $3,200State income tax $3,400Special assessment for installation of sidewalks $1,140Penalty on tax underpayment $300Flat fee for automobile registration $90What itemized deduction may John claim for taxes on his return
Answer:
$6,600
Explanation:
Calculation to determine the itemized deduction that John may claim for taxes on his return
Real estate taxes $3,200
Add State income tax $3,400
Itemized deduction $6,600
($3,200+$3,400)
Therefore the itemized deduction that John may claim for taxes on his return is $6,600
You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland.
Required:
a. Calculate your expected dollar cost of buying $F5,000 if you choose to hedge by a call option on SF.
b. Calculate the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract.
c. At what future spot exchange rate will you be indifferent between the forward and option market hedges?
d. Illustrate the future dollar cost of meeting the SF payable against the future spot exchange rate under both the options and forward market hedges.
Answer:
A. 3403.75 dollars
B. 3150
C. 0.579
D. Is an attachment
Explanation:
A. We first find the premium cost
= 0.05x5000 x 1+0.06/4
= 250x1.015
= 253.75
From here we find expected dollar cost
= Exchange rate x units + premium
= 0.63x5000+253.75
= 3,403.75 dollars
B. Forward rate = 0.63
Total cost of dollar
= 0.63x5000
= 3150
C. The investor would be indifferent at 0.579
Forward rate = unit * future + premium
3150 = 5000 * future + 253.75
3150-253.75 = 5000*future
We solve and divide through by 5000
Future = 0.579
D is in the attachment
The expected dollar cost of buying $F5,000 through the call option is $3403.75.
The first thing to do is to calculate the premium cost. This will be:
= (5% × 5000) × (1 + 6%/4)
= (0.05 × 5000) × (1 + 0.06/4)
= 250 × 1.015
= 253.75
The expected dollar cost will be:
= Exchange rate × Number of units + Call premium cost
= 0.63 × 5000 + 253.75
= 3403.75
The future dollar cost of meeting this SF obligation will be calculated thus:
= Forward rate × Number of units
= 0.63 × 5000
= $3150
The future spot exchange rate that the person will be indifferent will be:
= (3150 - 253.75) / 5000
= $0.579
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LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $290 per month. rev: 09_23_2020_QC_CS-230013a. If LaMont receives one pass (worth $290) each month, how much of this benefit must he include in his gross income each year
Answer:
The IRS sets the limit on transportation benefits provided by an employer, for 2021, this limit is $270 per month, or $3,240 per year.
The total benefit received by LaMont should = 12 x $290 = $3,480
This means that he must include $3,480 - $3,240 = $240 as part of his annual gross income.
Heidi is having trouble understanding the Black Lives Matter (BLM) movement and why her workplace sent out an email affirming the company's commitment to diversity and inclusion. This is probably because as a white woman from a small town with little exposure to diversity efforts, Heidi has not had much education about what BLM is trying to accomplish. She is wrestling with this new information about systemic racism and ultimately dismisses it as unfounded because it is contrary to her past experiences. This is an illustration of which of the following?
a. Stereotyping
b. An entrenched mental model
c. Leader-Member Exchange Theory
d. Ethnocentrism
e. Social Identity Theory
Answer:
e. Social Identity Theory
Explanation:
It is correct to state that the scenario in the question above refers to the theory of social identity, which is a theory that seeks to explain how the categorization of groups such as those based on culture, social class, race, age, directly impact the life of an individual and their perception of the world. Psychology seeks to analyze how important it is for an individual to belong to a group and to form an identity based on the collective of that group, that is, to form a society.
Therefore, the theory of social identity suggests that there is an inclination for individuals to overestimate the characteristics of the group to which they belong and to minimize the characteristics of other groups, which can generate prejudice, racism and apathy, which is what happened with Heidi, who considered information about systemic racism unfounded by the fact that they are contrary to their previous experiences.
Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next two months, and the steel inventory is expected to increase 5 units in each of the next two months.
How many units of steel are expected in the material inventory at the end of the second month?
Answer: 40 units of steel.
Explanation:
The steel inventory is expected to increase by 5 units every month for two months.
Steel inventory in two months = Beginning inventory + 5 + 5
= 30 + 5 + 5
= 40 units of steel.
Using the information below compute the M1 money supply. Category Amount Currency and coin held by the public $ Checking account balances $ Traveler's checks $10 Savings account balances $ Small denomination time deposits $5,000 Money market deposit accounts in banks $1,000 Noninstitutional money market fund shares $2,000 The M1 money supply is equal to: $ nothing
Answer: $2610
Explanation:
Money supply simply means the total amount of money that is in a particular economy at a point in time. Based on the information given, the M1 money supply will be:l the addition of the currency and coin held by the public, the checking account balance and the traveler's checks. This will be:
= $800 + $1800 + $10
= $2610
Therefore, the M1 money supply is $2610.
Canoe Company's manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods inventories. Canoe Company's manufacturing costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. The plant-wide overhead application rate was:
Answer:
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
Explanation:
Giving the following information:
Direct labor, $30,000
Factory overhead applied $6,000.
To calculate the predetermined overhead rate, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
6,000= Estimated manufacturing overhead rate*30,000
6,000 / 30,000 = Estimated manufacturing overhead rate
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
At the beginning of the current tax year, Amy's capital account has a balance of $300,000, and the LLC has debts of $200,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.
Ordinary income $400,000
Interest income 4,000
Short-term capital loss 6,000
Long-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Year-end LLC debt payable to unrelated parties is $140,000. If all transactions are reflected in her beginning capital and basis in the same manner.
Required:
Prepare Amy's capital account rollforward from the beginning to the end of the tax year.
Answer:
$477,000
Explanation:
Preparation of Amy's capital account rollforward from the beginning to the end of the tax year.
Capital account balance, beginning of year $300,000
Add Amy's share of:
Taxable income $200,000
($400,000*50%)
Interest income $2,000
($4,000*50%)
Net short-term capital Loss ($3,000)
($12,000-$6,000*50%)
$499,000
Less:
Charitable contribution $2,000
($4,000*59%)
Cash distribution to Amy $20,000
($22,000)
Amy's capital account end of year $477,000
($499,000-$22,000)
Therefore Amy's capital account rollforward from the beginning to the end of the tax year will be $477,000
What form do some schools, especially private schools, use in addition to the FAFSA to determine how to award aid? A) FAFSA II B) Core Residency Form C) CSS/Financial Aid PROFILE D) College Access Loan (CAL) Form
Answer:
C.) CSS/ Financial aid profile
Explanation:
I took the USA Test Prep quiz.
Early deadlines are imposed by many schools and universities that use the FAFSA to calculate financial aid. To decide how to distribute their own funds, certain institutions—mostly private colleges—use an additional form called the College Scholarship Service Profile, or CSS Profile. Therefore, choice (C) is the best one.
What is CSS Profile?College students can apply for non-federal financial aid through the CSS Profile, also known as the College Scholarship Service Profile, an online application developed and administered by the College Board, a company based in the United States.
Its main purpose is to provide College Board member institutions with a thorough assessment of students and their families financially and family circumstances for use in determining their eligibility for organizational financial aid. Compared to the Free Application for Federal Student Aid, or FAFSA, it is more comprehensive.
Hence, option (C) is the most accurate.
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Scenario 2:
The price of gas rises by $1 per gallon the last month. As you travel through southern california you notice an increase in oil drilling operations. In previous trips you noticed a handful of operations, this trip you're seeing hundreds and hundreds of oil manufacturing centers.
Does this scenario relate to the law of supply, demand, or neither? Justify why you believe this to be true.
Answer:
both
Explanation:
there is not enough supply to fit the demand meaning said oil is more valuable so it is a good time to drill for more because it is more expensive and you know you can charge more because people will have no choice but to purchase it at your price until supply exceeds demand which will make it less valuable until the demand once again is higher than supply which will make it more valuable again.
The PPP theory fails in reality for all of the following reasons EXCEPT Group of answer choices monopolistic or oligopolistic practices in goods markets. restrictions on trade. inflation rates are unrelated to money supply growth. transport costs. the inflation data reported in different countries are based on different commodity baskets.
Answer:
inflation rates are unrelated to money supply growth.
Explanation:
purchasing power parity which is regarded as (PPP) is a macroeconomic analysis metric which gives comparison between economic productivity aas well as standards of living existing between countries. It can be regarded as economic theory which gives comparison of currencies of different countries using an approach of "basket of goods". The PPP theory can hold in reality for instance, when inflation rates are unrelated to money supply growth.
EXCEPT Group of answer choices monopolistic or oligopolistic practices in goods markets. restrictions on trade. the inflation data reported in different countries are based on different commodity baskets.
Daniel, age 38, is single and has the following income and expenses in 2020:
Salary income $87,000
Net rent income 2,500
Dividend income 1,300
Payment of alimony (divorce finalized in March 2019) 26,000
Mortgage interest on residence 5,700
Property tax on residence 2,600
Contribution to traditional IRA (assume the amount is fully deductible) 2,400
Contribution to United Church 2,700
Loss on the sale of real estate (held for investment) 825
Medical expenses 4,600
State income tax 2,100
Federal income tax 7,100
Required:
What is Daniel's gross income and his AGI?
Answer:
A. $90,800
B. $87,575
Explanation:
Calculation to determine Daniel's gross income and his AGI
A. Calculation for the Gross income using this formula
Gross income=Salary income + Net rent income + Dividend income
Let plug in the formula
Gross income= $87,000 + 2,500 + 1,300
Gross income=$90,800
Therefore her Gross income is $90,800
B. Calculation to determine the AGI using this formula
AGI=Gross income - (Contribution to traditional IRA + Loss on sale of real estate)
Let plug in the formula
AGI= $90,800 - ($2,400 + $825)
AGI=$90,800-$3,225
AGI=$87,575
Therefore her AGI is $87,575
what are tresholds in auditing?
Answer:
:)
Explanation:
The materiality threshold in audits refers to the benchmark used to obtain reasonable assurance that an audit does not detect any material misstatement that can significantly impact the usability of financial statements.
Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit. Actual Budgeted Units sold 45,000 units 31,000 units Variable costs $161,000 $150,000 Fixed costs $44,000 $50,000 What is the static-budget variance of variable cost
Answer:
See below
Explanation:
g The comparative balance sheets for Pharoah Company show these changes in noncash current accounts: Accounts Receivable increased $29,800, Prepaid Expenses decreased $10,800, and Inventory decreased $18,900. Accounts payable increased $13,400. Calculate net cash provided by operating activities using the indirect method assuming that profit is $252,000 for the year ended June 30, 2021. Depreciation expense for the year was $26,900 and the company incurred a gain on sale of equipment of $21,000.
Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.65. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 2.25. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
0.7125
Explanation:
Calculation to determine your portfolio's new beta.
First step is to calculate the Increase in beta as a result of net sales
Increase in beta as a result of net sales=2.25-1
Increase in beta as a result of net sales=1.25
Hence:
increase/stock=1.25/20=0.0625
Now let calculate the new beta
New beta=0.65+0.0625
New beta=0.7125
Therefore your portfolio's new beta will be 0.7125
Suppose the United States decides to reduce export subsidies on U.S. agricultural products, but it does not decrease taxes or increase any other government spending.
Initially, a reduction in export subsidies decreases net exports at any given real exchange rate, causing the demand for dollars in the foreign exchange market to decrease. This leads to a decrease in the real exchange rate, which, in turn, decreases imports to negate any decrease in exports, leaving the equilibrium quantity of net exports and the trade deficit unchanged at this point.
1. However, the reduction in expenditure on export subsidies ___________ the fiscal deficit, thereby ___________ public saving.
2. Indicate the effect this has on the U.S. market for loanable funds. (Supply and demand shift?)
3. Given the change in the real interest rate, show the effect this has on net capital outflow.
4. This causes the supply of dollars in the foreign exchange market to ______________, the real exchange rate to ______________, and the equilibrium level of net exports to _____________.
Answer:
1. Decrease, increase
2. Supply curve shifts to the right
3. NCO will rise
4. Real exchange rate falls and net exports rises
Explanation:
Fiscal deficit occurs when government spending's exceed government revenue. When the government lowers its export subsidies while keeping other spending's and taxes unchanged, it leads to a fall in the fiscal deficit.
1. However, the reduction in expenditure on export subsidies decreases the fiscal deficit, thereby increases public savings.
2. As public savings increase it leads to an increase in funds available to be loaned out. So the supply curve for loanable funds will shift to the right from S1 to S2. This will lead to a fall in the interest rate.
3. As we know that net capital outflow is inversely related to the interest rate. A fall in the interest rate above will lead to a rise in net capital outflow.
4. When net capital outflow increases, people move funds out of the country. Thus, supply of dollars will increase. While demand for dollars has remained unchanged, it leads to a fall in the real exchange rate. As exchange rate falls, the equilibrium level of net exports will rise.
1. Decrease, increase; 2. Supply curve shifts to the right; 3. NCO will rise;
and last 4. The real exchange rate falls and net exports rises
What is the Supply Curve?
A fiscal deficit happens when government spending surpasses government revenue.
When the government diminishes its export subsidies while maintaining different spending and taxes unchanged, it leads to a decline in the fiscal deficit.
1. However, the reduction in expense on export sponsorships decreases the fiscal deficit, thereby increasing general savings.
2. As public savings increase it rules to an increase in funds known to be loaned out. So the supply curve for loanable funds will shift to the right from S1 to S2. This will direct to a fall in the interest rate.
3. As we comprehend that net capital outflow is inversely correlated to the interest rate. A fall in the interest rate overhead will lead to a rise in the net capital outflow.
4. When net capital outflow increases, individuals transfer funds out of the country. Therefore, the supply of dollars will increase. While demand for dollars has stayed unchanged, it directs to a fall in the real exchange rate. As the conversation rate falls, the equilibrium grade of net exports will rise.
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Hernandez Company has 350,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by:_______.
a. $1,242,500.
b. $525,000.
c. $192,500.
d. $175,000.
Answer:
b. $525,000.
Explanation:
Dividends distributions are always made out of the distributable profits found in the Retained Earnings.
The first step thus is to calculate the amount of dividends distributed.
1st Declaration :
Dividends = 350,000 shares x $10 x 10% = $350,000
2nd Declaration :
Dividends = 350,000 shares x $0.50 = $175,000
Therefore,
Total Dividends = $350,000 + $175,000 = $525,000
Conclusion :
As a results of the dividends distribution, retained earnings decreased by $525,000.
Fairfield Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of employees. Space occupancy and employee data are as follows: Building Personnel Dept. P1 Dept. P2 Space occupied 2,000 ft. 10,000 ft. 120,000 ft. 70,000 ft. Employees 6 10 80 50 If Fairfield Company uses the direct allocation method, the ratio representing the portion of building costs allocated to Department P1 is a.120,000/202,000. b.190,000/202,000. c.2,000/120,000. d.120,000/190,000.
Answer:
d.120,000/190,000
Explanation:
It is given that Fairfield Company is constructing building department (P1 and P2) in the space provided and it allocates the common Personnel Department cost that is based on number of employees.
From the table given in the question, we can find
The ratio representing the portion of the building cost allocated to the department P1 = [tex]$\frac{120,000}{(120,000+70,000)}$[/tex]
The ratio representing the portion of the building cost allocated to the department P1 = [tex]$\frac{120,000}{190,000}$[/tex]