Answer:
The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, the effect of an expansionary monetary policy on unemployment can be tested
Normative economics is based value judgements, opinions and perspectives. For example, the statement - The local government ought to spend more on recreational facilities - is an opinion.
The description, measurement, and explanation of economic processes, expectations, and related phenomena are the main goals of the field of Positive Macroeconomics.
Thus, the statement, "The central bank should increase the money supply" is considered a positive statement. Option (a) is the correct answer to this question.
Positive economics is the study of economics through an objective analytical lens. Most economists base their future projections on what has already happened and what is happening in a particular economy.
Positive economics is an objective branch of economics that bases its conclusions on reality or current events.Positive economics analyses can be used to develop conclusions that can be tested and supported by evidence.Positive economic theory doesn't offer suggestions or directions.Therefore, the statement, "The central bank should increase the money supply" is considered a positive statement. Option (a) is the correct answer to this question.
Learn more about Positive Macroeconomics here,
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The following transactions occurred during July: Received $1,600 cash for services performed during July. Received $7,800 cash from the issuance of common stock to owners. Received $800 from a customer as payment for services performed during June. Billed $4,700 to customers for services performed on account in July. Borrowed $3,300 from the bank and signed a promissory note. Received $2,200 from a customer for services to be performed during August. What is the amount of revenue that will be reported on the income statement for the month ended July 31
Answer:
the amount of revenue that should be reported is $6,300
Explanation:
The computation of the amount of revenue that should be reported is shown below;
= Cash received + service revenue earned on the account
= $1,600 + $4,700
= $6,300
hence, the amount of revenue that should be reported is $6,300
Basically we add the two items so that the correct value could arrive
DS Unlimited has the following transactions during August.
August 6 Purchases 54 handheld game devices on account from GameGirl, Inc., for $120 each, terms 1/10, n/60.
August 7 Pays $320 to Sure Shipping for freight charges associated with the August 6 purchase.
August 10 Returns to GamerGirl four game devices that were defective.
August 14 Pays the full amount due to GameGirl.
August 23 Sells 34 game devices purchased on August 6 for $140 each to customers on account. The total cost of the 34 game devices sold is $4,257.00. 2.
Required:
Record the period-end adjustment to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,003.
Answer:
August 6
Debit: Inventory: (54 * $120) = $6480.00
Credit: Accounts Payable: $6,480.00
August 7 - shipping
Debit: Inventory $320.00
Credit: Cash $320.00
August 10
Debit: Accounts Payable :(4 * $120) = $480.00
Credit: Inventory $480.00
August 14
Debit: Accounts Payable : $(6480 - 480) = $6000.00
Credit: Inventory $60.00
Cash : $(6000 - 60) = $5940.00
(August 14th Inventory: $6000 × 1% = $60)
August 23
Debit: Accounts Receivable ($140*34) = $4760
Credit: sales Revenue $4760
August 23
Debit: Cost of Goods Sold $4,257.00
Credit: Inventory $4,257.00
Explanation:
INVENTORY:
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On January 15, 2020, Vern purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the recoverable units would be 500,000. During the year, 40,000 units were mined and 25,000 units were sold for $800,000. Vern incurred expenses during 2020 of $500,000. The percentage depletion rate is 22%. Determine Vern's depletion deduction for 202
Answer: $175,000
Explanation:
Vern's depletion deduction for 2020 will be calculated thus:
= (Cost - Salvage value) / (Estimated Number of units × Number of units extracted
= 3500000/500000 × 25000
= 7 × 25000
= $175000
Therefore, Vern's depletion deduction for 2020 is $175000
A factory worker makes $17.50 per hour. Next month, she will receive a 1.5% increase in her hourly rate. What will her new hourly rate be?
Answer:
$19.00
Explanation:
ABC Company has the following trial balances on 12/31/20x1 and 12/31/20x0: December 31 20x120x0 Cash35,00032,000 Accounts Receivable22,00018,000 Inventory31,00040,000 Property10,00010,000 Plant and equipment100,00082,000 Accumulated depreciation, plant assets(20,000)(14,000) Accounts Payable(25,000)(15,000) Other current liabilities(6,000)(5,000) Bonds Payable(50,000)(50,000) Common Stock(10,000)(10,000) Retained Earnings(40,000)(30,000) Dividends declared2,0002,000 Sales revenue(200,000)(184,000) Cost of Goods Sold120,000100,000 Selling expenses20,00015,000 General and administrative expenses10,0008,000 Interest Expense10001000 What is the cash outflow for merchandise
Answer and Explanation:
The computation of the cash outflow for merchandise is shown below:
Cost of Goods Sold $120,000
Less: Decrease in Inventory -$9,000
Purchases $111,000
Less: Increase in Accounts Payable -$10,000
Cash paid for Merchandise Inventory $121000
Hence, the cash outflow for merchandise is $121,000
The above format should be applied
Saginaw Steel Corporation has a precredit U.S. tax of $105,000 on $500,000 of taxable income in 2018. Saginaw has $200,000 of foreign source taxable income and paid $60,000 of income taxes to the German government on this income. All of the foreign source income is treated as foreign branch income for foreign tax credit purposes. Saginaw's foreign tax credit on its 2018 tax return will be:
Answer: $42000
Explanation:
Saginaw's foreign tax credit on its 2018 tax return will be calculated thus:
= Foreign source taxable income × precredit U.S tax/Taxable income
= 200000 × 105000/500000
= 200000 × 0.21
= 42000
Therefore, the foreign tax credit will be the least between $60,000 paid to the German government or $42000. In this case, the answer is $42000
Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue - $47.10
Personnel expenses $22,700 $16.90
Medical supplies 1,600 6.50
Occupancy expenses 6,900 1.50
Administrative expenses 3,400 0.40
Total expenses $34,600 $25.30
Actual results for July:
Revenue $101,491
Personnel expenses 55,699
Medical supplies 15,895
Occupancy expenses 9,785
Administrative expenses 4,424
The revenue variance for July would be closest to: __________
a. $2,581 F
b. $2,110 U
c. $2,110 F
d. $2,581 U
Answer:
Burget Clinic
The revenue variance for July would be closest to: __________
a. $2,581 F
Explanation:
a) Data and Calculations:
Budgeted client-visits for July = 2,100
Actual client-visits for July = 2,110
Fixed element Variable element
per month per client-visit
Revenue - $47.10
Personnel expenses $22,700 $16.90
Medical supplies 1,600 6.50
Occupancy expenses 6,900 1.50
Administrative expenses 3,400 0.40
Total expenses $34,600 $25.30
Actual results for July:
Revenue $101,491
Personnel expenses 55,699
Medical supplies 15,895
Occupancy expenses 9,785
Administrative expenses 4,424
Budgeted Revenue = $98,910 ($47.10 * 2,100)
If the demand for labor falls from D to D' and wages are sticky on the downward side, there will be unemployment of ________ million. a. 75 b. 100 c. 25 d. None of the above
Answer:
There will be unemployment of 100 million. The correct option is b. 100.
Explanation:
Note: This question is not complete because the graph is not attached. The graph is therefore provided before answering the question. See the attached photo for the graph.
From the attached graph, we have:
Equilibrium units of labor at D = 300 million
Equilibrium units of labor at D’ = 200 million
Employment If the demand for labor falls from D to D' = Equilibrium units of labor at D’ - Equilibrium units of labor at D = 300 million - 200 million = 100 million
Therefore, there will be unemployment of 100 million. The correct option is b. 100.
A company is considering issuing long-term debt. The debt would have a thirty-year maturity and a ten percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of five percent of face value. In addition, the company would have to pay flotation costs of five percent of face value. The firm's tax rate is 21 percent. Given this information, the annualized after-tax cost of debt for the company would be ________.
Answer:
Find detailed explanations below
Explanation:
First and foremost, the issue price of the bond is the face value minus adjustments for discount and flotation costs
issue price=$1000*(1-5%-5%)
issue price=$900
semiannual coupon=face value*coupon rate/2
semiannual coupon=$1000*10%/2
semiannual coupon=$50
number of semiannual coupons in 30 years=30*2=60
Using a financial calculator, pretax cost of debt is computed thus:
N=60(number of semiannual coupons)
PMT=50(semiannual coupon)
PV=-900(price)
FV=1000(face value)
CPT
I/Y=5.58%(semiannual yield)
annual yield=5.58%*2=11.16%
after-tax cost of debt=annual yield*(1-tax rate)
tax rate=21%
after-tax cost of debt=11.16%*(1-21%)
after-tax cost of debt=8.82%
Alternative approach
Yield to Maturity [YTM] = Coupon Amount + [(Par Value – Bond Price) / Maturity Years] / [(Par Value + Bond Price)/2]
semiannual YTM=50+(1000-900)/30/(1000+900)/2
semiannual YTM=(50+3.33)/950
semiannual YTM=5.61%
annual YTM=5.61%*2=11.22%
after-tax cost of debt=11.22%*(1-21%)
after-tax cost of debt=8.86%
Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 90900 Work in process, ending 7800 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
Answer:
Equivalent units of production= 98,700
Explanation:
Giving the following information:
Physical Units Work in process, beginning 0
Completed and transferred out 90,900
Work in process, ending 7,800
Materials are added at the beginning of the process.
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= 0 + 90,900 + 7,800*1
Equivalent units of production= 98,700
Because the materials are added at the beginning of the process, the percentage of completion is 100%.
Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has outstanding 20,000 shares of $50 par value, 6% cumulative preferred stock, and 80,000 shares of $10 par value common stock. The company declares and pays cash dividends amounting to $160,000. a. If no arrearage on the preferred stock exists, how much in total dividends, and in dividends per share, is paid to each class of stock
Answer:
Preferred Stock = $60,000 and $3.00
Common Stock = $100,000 and $1.25
Explanation:
Dividends
Preferred Stock has preference when it comes to dividends payments. The remaining dividends are then paid to Common Stockholders.
Preferred Stock dividend = 20,000 x $50 x 6% = $60,000
Common Stock dividend = $160,000 - $60,000 = $100,000
Dividends per share
Preferred Stock dividend = $60,000 ÷ 20,000 shares = $3.00
Common Stock dividend = $100,000 ÷ 80,000 shares = $1.25
Angie relocated for her job and is looking for a new fitness facility to attend an aerobics class. She should make sure that these facilities follow the guidelines for health and fitness facilities established by the _____.
a. The National Center for Complementary and Alternative Medicine
b. The Better Business Bureau
c. The National Strength and Conditioning Association
d. The American Council on Exercise
e. The American College of Sports Medicine
Answer:
c
Explanation:
On December 1, a six-month liability insurance policy was purchased for $1,134. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.)
Answer and Explanation:
As the insurance policy would be for 6 months
So per month it is
= $1,134 ÷ 6 months
= $189
Now the T account is
Prepaid insurance
Opening balance $1,134 Insurance expense $189
balance $945
Income statement
Adjustment $189
Journal entry
Insurance expense $189
To Prepaid insurance $189
(Being insurance expense is recorded)
Carmel Corporation is considering the purchase of a machine costing $52,000 with a 4-year useful life and no salvage value. Carmel uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average inv
Answer:
$26,000
Explanation:
Average investment = (Initial investment + Salvage value) / 2
Average investment = ($52,000 + $0) / 2
Average investment = $52,000 / 2
Average investment = $26,000
So, Carmel's average investment is $26,000.
Intermediate targets are Group of answer choices financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals. interim goals set on the way to fully achieving policy goals. targets the Fed hopes to achieve by June of each year. targets for policy goals that are of secondary importance.
Answer:
financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Intermediate targets can be defined as financial and economic variables which aren't directly under the control of the Federal Reserve (central bank) but they try to use them to influence policy actions or goals within a specific period of time.
Hence, intermediate targets are financial or economic variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.
what are the Computer Design problems and their solutions?
Under its executive stock option plan, W Corporation granted options on January 1, 2018, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options are exercised on April 2, 2021, when the market price is $21 per share. By what amount will W's shareholder's equity be increased when the options are exercised? Group of answer choices $315 million. $60 million. $270 million. $330 million.
Answer:
$315 million
Explanation:
Calculation to determine what amount will W's shareholder's equity be increased when the options are exercised
(millions)
Cash $270
($18 exercise price x 15 million shares)
Paid-in capital – stock options (account balance)$60
(4*$15million shares)
Less Common stock $15
(15 million shares at $1 par per share)
Paid-in capital—excess of par (remainder)$315
Therefore The amount that W's shareholder's equity will be increased when the options are exercised is $315 million
Southern Alliance Company needs to raise $120 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent common stock, 15 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 8 percent, for new preferred stock, 5 percent, and for new debt, 3 percent.
What is the true initial cost figure the company should use when evaluating its project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answer:
$127,727,515
Explanation:
Calculation to determine the true initial cost figure Southern should use when evaluating its project
First step is to find the weighted average flotation cost.
Weighted average flotation cost= .55(.08) + .15(.05) + .30(.03)
Weighted average flotation cost= .044+.0075+.009
Weighted average flotation cost= .0605*100
Weighted average flotation cost=6.05%
Now let determine the true initial cost figure
True initial cost figure=(1 – .0605) = $120,000,000
True initial cost figure = $120,000,000 / (1 – .0605)
True initial cost figure = $120,000,000 / .9395
= $127,727,515
Therefore the true initial cost figure Southern should use when evaluating its project is $127,727,515
On January 1, 2019, Agree Company issued $85,000 offive-year, 8% bonds when the market interest rate was 12%. The issue price of the bonds was $62,401. Agree uses theeffective-interest method of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round all amounts to the nearest whole dollar.)
A. Interest Expense 3,400 Discount on Bonds Payable 1,700 Cash 5,100
B. Interest Expense 5,100 Cash 5,100
C. Interest Expense 3,744 Discount on Bonds Payable 344 Cash 3,400
D. Interest Expense 5,100 Discount on Bonds Payable3,400 Cash 1,700
Answer:
c. Interest Expenses $ 3,744 Discount on Bonds Payable 344 Cash 3,400
Explanation:
Date General Journal Debit Credit
Interest Expenses $3,744
($62,401*12%*6/12)
Discount on Bonds Payable $344
Cash $3,400
($85,000*8%*6/12)
So, the correct journal entry to record the first interest payment is Interest Expenses $3,744, Discount on Bonds Payable $344, Cash $3,400
Define the six sources of business law
Answer:
Explanation:
Sources of law are the origins of laws, the binding rules that enable any state to govern its territory. The term "source of law" may sometimes refer to the sovereign or to thUS Constitution. Constitutional law governs the interpretation of the US Constitution and its statutes.
Federal Statutes. Statutory law is the body of written laws that have been passed by the US Congress.
Common Law. US common law is also called case law. ...
Regulations of Federal Agencies. ...
International Treaties. ...e seat of power from which the law derives its validity.
Which options are available when exporting a table definition and data? Check all that apply
Answer: 1. appending data to an existing table
4. creating a new table and inserting data
Explanation:
An economy starts in a long-run equilibrium, but then a severe drought kills crops and dramatically increases the price of food. If the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would Group of answer choices decrease the money supply, which would restore the original price level increase the money supply, but prices would forever be higher decrease the money supply, but prices would forever be lower increase the money supply, which would restore the original price level
Answer:
increase the money supply, but prices would forever be higher.
Explanation:
In this scenario, an economy starts in a long-run equilibrium, however a natural disaster such as drought kills crops and dramatically increases the price of food in the market. Thus, if the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would increase the money supply, but prices would forever be higher.
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
What is e- marketing
Answer:
marketing online pretty much
A business owned and run by one person is called a(n)
a business owned and run by one person is called a(n)
sole proprietorship
On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jamie was laid off from her job. On February 1, year 2, Jamie sold the home at a $45,500 gain. She sold the home because she found a new job in a different state. How much of the gain, if any, may Jamie exclude from her gross income in year 2
Answer: $31,250
Explanation:
The amount from the gain that Jamie may exclude from her gross income in year 2 will be calculated thus:
= $250,000 × 3/24
= $31,250.
Therefore, Jamie may exclude $31,250 from the gross income in year 2.
Thanks
What is the purpose of a W-2 form and how is it used to file taxes?
Coordination refers to ________. a. identifying the span of control within an organization b. portioning the performance of specific tasks c. assigning tasks to qualified managers d. linking various value activities within an organization
Answer:
d. linking various value activities within an organization.
Explanation:
A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.
These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.
The employees in companies engaged in a single line of business are generally referred to as silos because they work independently, collaborate and communicate with their colleagues in a vertical style i.e exclusively with each other.
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
Coordination refers to linking various value activities within an organization.
Answer:
d. linking various value activities within an organization.
Explanation:
Coordination refers to linking various value activities within an organization.
Given the following information, calculate the debt coverage ratio for this investment. Potential gross income: $120,000, Vacancy rate: 9%, Net operating income: $57,900, Operating expenses: $51,300, Acquisition Price: $520,000, Debt service: $40,000.
Answer:
the debt coverage ratio is 1.4475 times
Explanation:
The computation of the debt coverage ratio is shown below;
The Debt coverage ratio for investment is
= net operating income ÷ Total debt
= $57,900 ÷ $40,000
= 1.4475 times
BY dividing the net operating income by the total debt we can get the debt coverage ratio
hence, the debt coverage ratio is 1.4475 times
An unfinished desk is produced for $35.65 and sold for $64.20. A finished desk can be sold for $76.00. The additional processing cost to complete the finished desk is $6.15. Provide a differential analysis for further processing. Round your answers to two decimal places, if necessary. Differential revenue from further processing:
Revenue per unfinished desk $___________
Revenue per finished desk _______________
Differential revenue $____________
Differential cost per desk:
Additional cost for producing ___________
Differential from further processing __________
Answer:
Differential revenue from further processing:
= $11.80.
Explanation:
a) Data and Calculations:
Cost of production of an unfinished desk = $35.65
Selling price of an unfinished desk = $64.20
Selling price of a finished desk = $76.00
Additional processing cost = $6.15
Revenue per finished desk $76.00
Revenue per unfinished desk 64.20
Differential revenue $11.80
Differential cost per desk:
Cost of unfinished desk $35.65
Additional cost for producing 6.15
Differential from further processing $41.80
Unfinished Finished Differential
Revenue $64.20 $76.00 $11.80
Cost of production (35.65) (41.80) (6.15)
Net income $28.55 $34.20 $5.65