answer the following questions about diversified v.s. specialized cities. a. what kind of agglomerations are mostly provided by diversified cities? by specialized cities? b. urban economists duranton and puga present evidence that in france over 7 out of 10 firms relocate from diversified to specialized cities. what makes firms start their lifecycle in diversified cities and relocate to specialized cities? c. auto industry emerged in detroit which was a diversified city at the beginning of the 20th cen- tury. but major firms like ford and general motors did not leave detroit. is this consistent with your answers to a previous question? why yes or no?

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Answer 1

Agglomerations provided by specialized cities are: Low cost labor, easier availability of raw materials, development of associated services like transport, recreation etc, better framing of city plan as per industries need.

Agglomerations provided by diversified cities: city can deal with economic fluctuations better, diversity can reduce dependence on one industry, all kinds of associated businesses develop from hotels to hospitals and from schools to recreation.

Businesses relocate to specialized cities to take advantage of the plentiful labor supply. It might be able to take advantage of the transportation and infrastructure network that has already been established. Also, the government might designate a city as a special economic zone where there are lenient labor regulations and possible tax breaks for businesses that export. Businesses might also want to benefit from lax environmental restrictions.

This may have happened due to following factors:

1. Overspecialization of all factors of production for GM and Ford in Detroit

2. The internal and external economies of scale.

3. Detroit's ability to attract best workers.

4. Development of all ancillary industries nearby.

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Related Questions

how will the supply of clothing change if the forecast is that clothing prices will rise in the next few months? the supply of clothing will increase in the market today. suppliers will stop producing clothing and switch to an alternate item. the supply of clothing will decrease in the market today. the supply of clothing will remain unchanged today.

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The availability of clothing on the market today will most likely decline if it is predicted that clothing costs will increase in the coming months.

This is because as prices rise, manufacturers could be less inclined to create and market their clothes inventory right away since they anticipate receiving a greater price in the future. They might decide to keep their stock until prices do go up, which would reduce the amount of clothing available on the market right now. The supply and demand of a product are generally impacted by price changes, and this relationship can have a substantial impact on both the amount and price of a product in the market.

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New Zealand's economy has received recent boosts from _____.

tourism
foreign investors
agriculture
trade with China
natural gas

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Answer:

AVEEEEEEEEEEEEEEE MARIAAAAAAAAAAAAAAAAA

Explanation:

suppose that the monthly marginal cost for a usfs approved wildfire water pump is and the production of 13 units results in a total cost of $12680. a) find the total cost function. b) find the cost of producing 31 units

Answers

the total cost function: C(q) = FC + q * MC(q)

the cost of producing 31 units : C(31) ≈ $12,680 + 5/13 * (C(13)

We know that when q = 13, the total cost is $12,680. We can use this information to find the fixed costs. At q = 13, the total cost consists of the fixed costs plus the variable costs (i.e., the cost of producing 13 units at the marginal cost rate):

C(13) = FC + 13 * MC(13) = $12,680

We can solve for the fixed costs:

FC = $12,680 - 13 * MC(13)

Now we can write the total cost function:

C(q) = FC + q * MC(q)

We know MC(q), so we can substitute it in:

C(q) = ($12,680 - 13 * MC(13)) + q * MC(q)

b) To find the cost of producing 31 units, we can use the total cost function we just found and substitute q = 31:

C(31) = ($12,680 - 13 * MC(13)) + 31 * MC(31)

We don't know MC(31), so we can't evaluate this expression yet. But we can make use of the fact that MC(q) is the derivative of the total cost function with respect to q. This means that if we integrate MC(q) with respect to q, we get the total cost function.

Let's integrate MC(q):

∫ MC(q) dq = C(q)

Since we don't know the functional form of MC(q), we can't integrate it exactly. However, we can make an approximation by assuming that MC(q) is roughly constant over the range of interest (i.e., between q = 13 and q = 31). This is a reasonable assumption if the marginal cost function is relatively flat.

Assuming MC(q) is constant at MC(13), we can write:

∫ MC(q) dq ≈ MC(13) * (q - 13)

Substituting this into the total cost function, we get:

C(q) ≈ ($12,680 - 13 * MC(13)) + MC(13) * (q - 13)

Now we can evaluate this expression for q = 31:

C(31) ≈ ($12,680 - 13 * MC(13)) + MC(13) * (31 - 13)

C(31) ≈ ($12,680 - 13 * MC(13)) + 18 * MC(13)

C(31) ≈ $12,680 + 5 * MC(13)

We still need to know MC(13) to compute the cost of producing 31 units. However, we can use the fact that we know the total cost at q = 13 to find MC(13):

C(13) = ($12,680 - 13 * MC(13)) + 13 * MC(13)

Solving for MC(13):

MC(13) = (C(13) - $12,680) / 13

Now we can substitute this into the expression we derived for C(31):

C(31) ≈ $12,680 + 5 * [(C(13) - $12,680) / 13]

Simplifying:

C(31) ≈ $12,680 + 5/13 * (C(13)

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national saving refers to: 1. income minus investment. 2. income minus consumption minus government spending. 3. disposable income minus consumption. 4. taxes minus government spending.

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Income minus consumption minus government spending is referred to as national saving.

A country's economy is said to be developing if its citizens' living standards rise while seeing consistent growth. Today, we'll talk briefly about the ideas of consumption, savings, and investment while also outlining how these three variables relate to one another using the traditional approach. Keynes' central claim was that our level of real consumption is influenced by our disposable income, which is determined by deducting tax obligations from gross income. C = f (Y), where Y refers for disposable income and C stands for consumption, provides additional insight into this.

Keynes also believed that when disposable income rises, individuals tend to increase their spending levels.

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If average labor productivity in two countries is the same, average living standards will be lower in the country with:
A) the larger population. B) the smaller population.
C) the higher share of population employed D) the lower share of population employed.

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Real economic output for each working hour is what is referred to as labour productivity, also known as workforce productivity. The change in economic production per work hour over a predetermined period is used to calculate the growth in labour productivity.

Employee productivity, a measurement of a worker's output, should not be confused with labour productivity. Divide the total output by the total labour hours to find the labour productivity of a nation. Consider a scenario in which the real GDP of an economy is $10 trillion and the total number of hours worked in the nation is 300 billion. $10 trillion divided by 300 billion would result in a labour productivity of roughly $33 per hour. The economy's rise in labour productivity would be 72% if its real GDP increased to $20 trillion the next year and its labour hours to 350 billion.

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an open-end fund has a net asset value of $15.90 per share. it is sold with a front-end load of 5%. what is the offering price? (round your answer to 2 decimal places.)

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To find the offering price of the fund, we need to add the front-end load to the net asset value per share. The offering price of the fund is $16.74 per share.

The front-end load is a one-time fee charged at the time of purchase, typically as a percentage of the investment amount. In this case, the front-end load is 5%, which means that for every $100 invested, $5 will be deducted as a fee and only $95 will be invested in the fund.

To calculate the offering price, we can use the following formula:

Offering price = Net asset value / (1 - Front-end load)

Substituting the given values, we get:

Offering price = $15.90 / (1 - 0.05)

Offering price = $15.90 / 0.95

Offering price = $16.74 (rounded to 2 decimal places)

Therefore, the offering price of the fund is $16.74 per share.

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mark granovetter has argued that the people you know best are likely to possess only information you already have. this is why he believed that when looking for employment, it is advantageous to have

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Mark Granovetter has argued that the people you know best are likely to possess only information you already have, it is advantageous to have: more casual acquaintances who are connected to different social networks.

Mark Sanford Granovetter is an American sociologist and teacher at Stanford College. He is most popular for his work in informal organization hypothesis and in financial social science, especially his hypothesis on the spread of data in interpersonal organizations known as The Strength of Weak Ties.

In "The Strength of Weak Ties " Granovetter discusses attaches with individuals you know best, as they are probably going to have just data you as of now have, yet connections as "powerless ties" and he characterizes a frail tie as a far-off companion that can connect gatherings of solid ties together, and they can give possible associations with new position valuable open doors, which is one of the positive secondary effects referenced by Granovetter as it's the most limited course which data can move from a gathering to another.

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Sort the following scenarios according to whether they would cause a shift in the demand curve or movement along a demand curve.

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The movement along the demand curve represents a change in the quantity demanded of a good, while a shift in the demand curve represents a change in the overall demand for the good at any given price level.

Explain scenarios that cause a shift in the demand curve?

Shifts in the demand curve:

A change in consumer tastes and preferences.A change in the price of a substitute good.A change in the price of a complementary good.Changes in income or wealth.

Movement along the demand curve:

A change in the price of the good itself.A change in the quantity of the good supplied by producers.Changes in taxes or subsidies.Changes in production costs, such as wages or raw materials.

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review the risk management policy in appendix b. what other types of policies can you describe to manage risks?

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Equipment precautions, such as safety training, inspection, and usage seminars, are only a few examples of the various corporate rules and regulations for risk management.

How is a policy on risk management reviewed?

Reviewing a framework for risk management can be done in a variety of ways, some of which are: • carrying out a thorough analysis of the main elements of the structure for risk management. demanding that internal audit analyze the framework for risk management • comparing performance to that of other organizations. records that are specific about when the tools used to execute tasks were last examined, repaired, or maintained. hiring and screening candidates.

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If a ceo makes a bad decision what will the shareholders do

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The shareholders can sue, get angry, or they might sell all there stocks who knows.

T/F. Sand found in commercial sand and gravel deposits is typically composed of silicate minerals.

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True, Sand found in commercial sand and gravel deposits is typically composed of silicate minerals.

What is a mineral?

A mineral or mineral type is, generally speaking, a pure, naturally occurring solid chemical compound with a very well-defined chemical makeup. Compounds that are found only in living organisms are typically not included in the geologic definition of a mineral.

What features does a mineral have?

By definition, minerals have three characteristics: they are solid, they have an orderly atomic arrangement, and they have a chemical formula that is constant or nearly constant. Oil is a mixture of organic molecules that is liquid and does not have a consistent chemical formula or clearly defined atomic structure.

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marketing organizations’ decisions to offer ______________________ often attracts competitive entry; whereas decisions to offer ________________ generally discourage market entry by new competitors.

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Marketing organizations' decisions to offer low prices often attract competitive entry; whereas decisions to offer unique products generally discourage market entry by new competitors.

The competitive entry is low because low prices can be easily matched by competitors, but unique products are more difficult to replicate.

Low price put the risk on a firm because the firm has to decrease its production cost to keep earning profit from the lower selling price. Without lower production cost, it is impossible for the firm to earn profit. However, this strategy will be effective especially on a price sensitive market. The sudden increase on demand will attract more competitors who will try to sell their products at even lower price. This move will decrease the firm's demand and push the firm to lower its selling price to keep its customers.

Therefore, offering unique products can provide a competitive advantage and discourage new competitors from entering the market. Offering unique products can be discouraging the new competitors because they need further research and design about the new products. These research and design process consume both time and cost.

Moreover, since the product is new in the market, there is no success guarantee for it. The new competitors tend to hold themselves and see the market responses towards the new products before entering the market and competing with the current producers.

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prezas company's balance sheet showed total current assets of $4,500, all of which were required in operations. its current liabilities consisted of $945 of accounts payable, $600 of 6% short-term notes payable to the bank, and $245 of accrued wages and taxes. what was its net operating working capital?

Answers

The information from Preza's balance sheet indicates that the net working capital could be $3,025.

Expression of the net working capital as follows:

Net working capital = Current assets - Current liabilities

Thus, Net working capital = $4,250-($975+$250)

                              NWC = $4,250-$1,225

                              NWC = $3,025

Therefore, the net working capital is $3,025.

The difference between a company's current assets, such as cash, accounts receivable/unpaid bills from customers, stockpiles of raw materials, and finished items, and its current obligations, such as loans and accounts payable, is known as working capital, sometimes known as net working capital (NWC). It is a commonly used indicator to gauge the organization's current state of health.

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why is communication with another person or group described as an action chain? give an example of an action chain that might occur when you meet (1) a friend, (2) your new boss, and (3) a young child. gg

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Communication is referred to as a "action chain" because one word or action might result in the creation of another, like a link in a chain.

What do you mean by an action chain in communication?

Action chains are sets of steps where the activity or benefit of one step serves as the signal for the following step. Therefore, the sequence is: Cue --> Action --> Reward --> Cue --> Action --> Reward.

A talker and a listener are connected through an electric, visual, or aural channel in a communication chain.

The wheel network, chain network, circle network, and all-channel network, which are each of four different varieties.

Therefore, Communication is referred to as a "action chain" because one word or action might result in the creation of another, like a link in a chain.

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ttes is about 0.4. if a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 20 percent, by how much should it increase the price?

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Percentage change in price = percentage change in quantity demanded/price elasticity of demand = (0.2/0.4)*100% = 50%

What makes smoking less beneficial?

Raises quality of life while improving health. may increase life expectancy by up to 10 years while lowering the danger of dying too soon. decreases the chance of a wide range of harmful health impacts, including as cancer, poor reproductive results, cardiovascular disease, and chronic obstructive pulmonary disease (COPD).

How does quitting smoking affect you?

It is clear from the evidence that smokers who cut back on their daily cigarette intake are more likely to try and succeed in quitting. Furthermore, studies have demonstrated the advantages of replacement therapy for both reducing and quitting smoking.

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Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.4.

If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 20%, how much should they increase the price by?

aguilar manufacturing company packages a product for shipping by wrapping tape around the package as shown in the diagram. an additional 10% length of tape per package is needed for overlap. what is the total length of tape needed per package?

Answers

So the total length of tape needed per package is 2.1 times the sum of the length, width, and height of the box.

If we call the length of the box "L", the width "W", and the height "H", then the length of tape needed to go around the box once (without overlap) would be: L + W + H

To add the 10% overlap, we need to add an additional 10% of this length to the total. This can be done by multiplying the length by 1.1:

[tex]1.1 * (L + W + H)[/tex]

So the total length of tape needed per package would be:

[tex]L + W + H + 1.1 * (L + W + H)[/tex]

Simplifying this expression, we can factor out (L + W + H) to get:

[tex](L + W + H) * 2.1[/tex]

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what are the two functions that enable management to go through the process of continually planning and evaluating

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Planning and control are two crucial responsibilities that give management the ability to continuously foresee the future and evaluate how well implementation is going.

What is a deployment evaluation?

Whether process of teaching have been carried out as intended is determined by process/implementation evaluation.

How does it quantify program effects inside the target population?

Instead than only focusing on outcomes, evaluating implementation gives evaluation results insights into how programs function and why they succeed or fail.

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each quarter lisa's company asks her to name 3 people in her department that would make good managers in the future. this is an example of .

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The practice of Lisa's company to ask her to name 3 people in her department that would make good managers in the future is an example of talent identification or succession planning.

One example of talent identification or succession planning is the company Lisa works for asking her to name three members of her department who would make good managers in the future.

Identification and development of staff members with the potential to hold important leadership positions within the organization is the process of succession planning. It entails determining the expertise, competencies, and aptitudes needed for particular roles before identifying and fostering the growth of employees with the aptitude to fill those roles.

The business is engaging in succession planning by identifying and developing staff members who have the potential to hold leadership positions in the future by asking Lisa to identify potential managers within her department. This procedure ensures that the business has a pipeline of capable

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according to mary parker follett, which conflict resolution would result in the most optimal outcome for the organization and result in a solution where everyone benefits. a. domination based resolution b. integrative conflict resolution c. compromise d. win-win resolution

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According to Mary Parker Follett, the most optimal conflict resolution approach for organizations is the integrative conflict resolution .option b is correct.

This approach involves the identification and acknowledgement of the underlying interests and needs of all parties involved, and seeking a solution that addresses these interests and needs in a way that benefits everyone. It involves collaboration, communication, and problem-solving that leads to a win-win solution. On the other hand, domination-based resolution involves one party exerting power over the other, which can result in a solution that may not be fair or sustainable in the long run. Compromise, although it may seem like a fair solution, can still result in some parties feeling unsatisfied or having to give up more than they would like. In contrast, win-win resolution, which is similar to integrative conflict resolution, also aims to find a solution that benefits all parties. However, it often involves a more structured and formalized approach to negotiation and may not be as flexible as the integrative approach. Overall, Mary Parker Follett believed that integrative conflict resolution is the most effective approach for resolving conflicts in organizations because it leads to a solution that benefits all parties involved, promotes collaboration, and leads to a sustainable and lasting resolution.

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caleb, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. caleb later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies

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Caleb is happy with his success, but he wants to stay small because if he decides to add new products, small companies can move more quickly and start more readily.

What do you mean by products?

The thing that is being sold is called a product. An object or a service can both be considered products. It could appear in the form of anything physical, digital, or cybernetic. Every good has a price, and every good has costs attached to it. The price that can be paid is influenced by the market, the quality, the marketing, and the target market.

What does "product" signify in terms of commerce?

In business, a product is an item or service that you might offer to clients. These products could be material (like clothing or furniture) or immaterial (like computer software). A business is referred to as a product business if product sales account for the majority of its revenue.

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abc had the following final balances after the first year of operations: assets, $55,000; stockholders' equity, $25,000; dividends, $3,000; net income, $10,000. what is the amount of abc's liabilities? (just type numbers)

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the first year of operations: assets, $55,000; stockholders' equity, $25,000; dividends, $3,000; net income, $10,000. the amount of ABC's liabilities is $30,000.

To find the amount of ABC's liabilities, we can use the accounting equation:

Assets = Liabilities + Stockholders' Equity

We are given that ABC's assets are $55,000 and its stockholders' equity is $25,000. We also know that ABC paid $3,000 in dividends and had net income of $10,000. We can use this information to solve for liabilities:

Assets = Liabilities + Stockholders' Equity

$55,000 = Liabilities + $25,000

Liabilities = $55,000 - $25,000

Liabilities = $30,000

Therefore, the amount of ABC's liabilities is $30,000.

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What is business?In this project, we use a thorough examination and selection of the performers. To get more tasks and earn more money, please be attentive and patient.

Answers

Business is the activity of making, buying, or selling goods or providing services in exchange for money.

Businesses are organizations that use resources to produce goods and services that are sold to customers for profit. In the context of your project, it sounds like you are selecting performers to be a part of a business venture. It is important for these performers to be attentive and patient in order to complete tasks and earn money.

By doing so, they can contribute to the success of the business and potentially earn more money in the long run.

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when the demand for a product is and the price is reduced, total revenue will fall?

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If a product's demand is price elastic and the price rises, total revenue will fall. Total revenue will fall if a product's demand is price inelastic and the price falls.

When demand is inelastic and the price is lowered total revenue will rise?

If the price of an inelastic good is reduced, demand does not increase, resulting in less overall income because of the lower cost and no change in demand. This would imply that the company should not lower the price of its goods because there is no benefit to doing so.

As a result, an increase in price increases totals revenue, while a decrease in price decreases total revenue. Finally, demand is said to be unit elastic if the percentage change in quantity demanded equals the percentage change in price.

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the following data refer to jacket company's ending inventory: item code quantity unit cost unit market small 100 $114 $116 medium 420 76 88 large 600 84 88 extra-large 220 134 128 how much is the inventory if the lower of cost or market rule is applied to each item of inventory?

Answers

$121,880 will be the inventory if the lower of cost or market rule is applied to each item of inventory.

given data:

Quantity of small unit = 100

Lower of cost of small unit = 114

Inventory Value of small unit = 100 x 114

                                                = 11400

Quantity of medium unit = 420

Lower of cost of medium unit = 76

Inventory Value of medium unit = 420 x 76

                                                     = 31,920

Quantity of large unit = 600

Lower of cost of large unit = 84

Inventory Value of large unit = 600 x 84

                                                = 50,400

Quantity of extra large unit = 220

Lower of cost of extra large unit = 128

Inventory Value of extra large unit = 220 x 128

                                                         = 28,160

Total inventory value = 11400 + 31,920 + 50,400 + 28,160

                                   = 121,880

Inventory refers to the goods or products that a business holds for sale or production. Proper inventory management is essential for ensuring the availability of products, controlling costs, and maintaining efficient operations. Overstocking or understocking inventory can lead to lost sales, lower profits, and other operational problems.

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what is satisfaction or usefulness obtained from acquiring one more unit of a product?

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The satisfaction or usefulness obtained from acquiring one more unit of a product is known as marginal utility.

Marginal utility refers to the additional benefit or satisfaction a consumer gets from consuming an additional unit of a good or service.

As a consumer acquires more units of a good, the marginal utility typically decreases. This is because the consumer's needs or desires for the product are gradually satisfied, and the additional units provide less and less additional satisfaction. Eventually, the marginal utility may become negative, meaning that the consumer actually experiences a decrease in satisfaction or usefulness from consuming an additional unit of the product.

Understanding marginal utility is important in economics because it helps to explain consumer behavior and the relationship between supply and demand. It also helps businesses to determine the optimal level of production and pricing for their products.

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he accompanying histogram shows the life expectancies at birth for 190 countries as collected by an international health agency.
​a) Which would you expect to be​ larger: the median or the​ mean? Explain briefly.
​b) Which would you​ report: the median or the​ mean? Explain briefly.

Answers

This is because there are likely to be some nations with really high life expectancies, which would raise the value of the mean because the transfer of life expectancies seems to be likely to be biassed to the right.

Is there a normal distribution for life expectancy?

The normal distribution of life expectancy on average has a mean of seven years and a standard error of 10 years. Worldwide, were there 56.5 million fatalities in 2017.

What does life expectancy mean?

The phrase "life expectancy" refers to how many years one can anticipate living. By definition, average lifespan is based on an estimation of the typical age at death for members of a given population group.

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suppose the consumer price index is 143.6. what does that number mean ? a. on average, goods cost $243.60. b. prices rose 143.6% over the reference base period, on average. c. on average, goods cost $143.60. d. prices rose 43.6% over the reference base period, on average.

Answers

The correct answer is option c: on average, goods cost $143.60. That number means on average, goods cost $143.60.

The consumer price index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI is often used as an indicator of inflation or price level changes.

The CPI is expressed as an index number, with a reference base period set to 100.

The current CPI value of 143.6 means that the cost of the market basket of goods and services used to calculate the index is, on average, 43.6% higher than the cost of the same basket of goods and services during the reference base period.

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rita owns a sole proprietorship in which she works as a management consultant. she maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. her business expenses, other than home office expenses, total $5,720. the following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. real property taxes $ 1,660 interest on home mortgage 5,190 operating expenses of home 830 depreciation 1,636 also, assume that, not counting the sole proprietorship, rita's agi is $61,200. rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. assume rita's consulting business generated $15,300 in gross income. note: leave no answer blank. enter zero if applicable. required: what is rita's home office deduction for the current year? what would rita's home office deduction be if her business generated $10,300 of gross income instead of $15,300? (answer for both the actual expense method and the simplified method.) given the original facts, what is rita's agi for the year? given the original facts, what types and amounts of expenses will she carry over to next year?

Answers

The actual expenditure incurred will indeed be allowed to deduct into Tier 1, Tier 2 and Tier 3 however the sum will be restricted to $10,000.

The following is how the home office deduction is calculated:

(a) Simplified approach:

[tex]Standard Deduction of Office+Propety Tax+Interest OnMortage\\ =300sq.ft ×$5 +$1.600+$5,100 \\ =$8,200[/tex]

(b) Method of actual expense:

The actual expenditure incurred will indeed be allowed to deduct into Tier 1, Tier 2 and Tier 3 however the sum will be restricted to $10,000.

Particulars                                                     Tier 1            Tier 2   Tier3

                 

Opening Balance ;$10,00(Gross Total Income)  $4,400 ($2,300($2,300)

Less: Actual Expenses  ;($5,600)                      N.A.           N.A.        N.A.

Real Property Taxes ; N.A.                             $1,600       N.A.   N.A.

Interest on Home Mortgage; N.A.                 $5,100     N.A         N.A.

Closing Balance ;   $4,400                      ($2,300)   ($2,300) ($2,300

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find the following values using the equations and then a financial calculator. compounding/discounting occurs annually. do not round intermediate calculations. round your answers to the nearest cent. an initial $400 compounded for 1 year at 6%. $ an initial $400 compounded for 2 years at 6%. $ the present value of $400 due in 1 year at a discount rate of 6%. $ the present value of $400 due in 2 years at a discount rate of 6%.

Answers

The face values are $424.00 and $449.44 for 1st and 2nd years respectively. The present values due in 1 and 2 years are  $377.36 and $355.09 respectively.

Using the formula for compound interest, we can calculate the values as follows:

An initial $400 compounded for 1 year at 6%:
FV = PV×(1 + r)ⁿ
FV = 400×(1 + 0.06)¹
FV = $424.00An initial $400 compounded for 2 years at 6%:
FV = PV×(1 + r)ⁿ
FV = 400×(1 + 0.06)²
FV = $449.44The present value of $400 is due in 1 year at a discount rate of 6%:
PV = FV÷(1 + r)ⁿ
PV = 400÷(1 + 0.06)²
PV = $377.36The present value of $400 is due in 2 years at a discount rate of 6%:
PV = FV÷(1 + r)ⁿ
PV = 400÷(1 + 0.06)²
PV = $355.09

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on may 1, shilling company sold merchandise in the amount of $5,800 to anders, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. shilling uses the perpetual inventory system and the gross method. the journal entry or entries that shilling will make on may 1 is (are): multiple choice account title debit credit sales 5,800 accounts receivable 5,800 account title debit credit sales 5,800 accounts receivable 5,800 cost of goods sold 4,000 merchandise inventory 4,000 account title debit credit accounts receivable 5,800 sales 5,800 account title debit credit accounts receivable 5,800 sales 5,800 cost of goods sold 4,000 merchandise inventory 4,000 account title debit credit accounts receivable 4,000 sales 4,000

Answers

the entry(s) to be made in the journal on May 1: Account title Debit Credit Sales 5,800 Accounts Receivable 5,800 Account Title Sales 5,800 Accounts Receivable As a result, choices (A) and (B) are correct.

What is meant by sold merchandise?

Both total revenues and total assets will rise on the day the product is sold as a result of the sold goods on account. Moreover, using the perpetual inventory method will cause the asset, which is the merchandise inventory on the balance sheet, to decline on the same day as the cost of goods sold increases on the income statement.

On the other hand, if we utilize the periodic inventory method, the cost of products sold won't be computed and recorded until the end of accounting, after we've carried out a physical count of the inventory to ascertain the actual balance.

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