Answer:
a. Enterprise Funds are used when a governmental entity sells products or services primarily to external parties (such as the general public) for a fee or user charge.
True
b. An Enterprise Fund may not be used if the entity, such as a provider of mass transit services, receives subsidies from the General Fund.
True
c. To ascertain the amount of capital assets acquired by an Enterprise Fund during the year, you should read the statement of revenue, expenses, and changes in net position.
True
d. When Enterprise Funds are used, expenses are accrued only if they are expected to be paid within 60 days after the end of the year.
True
e. When Enterprise Funds are used, revenues are recognized in the period they are earned, even if cash has not been received.
True
Explanation:
Goods that are still in the production process would be in which account?
A. Raw Materials Inventory.
B. Work in Process Inventory.
C. Finished Goods Inventory.
D. Cost of Goods Sold.
Answer:
b
Explanation:
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Last year, Jackson borrowed $20,000 to buy a preowned boat. He repaid the principal of the loan plus $2750 interest after only 1 year. This year, his brother Henri borrowed $15,000 to buy a car and expects to pay it off in only 1 year plus interest of $2295. The rate that each brother paid for his loan is ___ %
Answer:
Jackson 13.75%
Henri 15.3%
Explanation:
Interest = principal x rate x year
Jackson
$2750 = $20,000 x rate x 1
divide both sides by $20,000
rate = 0.1375 = 13.75%
Henri
$2295 = $15,000 x rate x 1
divide both sides by $15,000
Rate = 0.153 = 15.3%
Q2. A firm is currently using 12 machines, each machine is capable of producing 100 units of output. It anticipates that by the end of the year, 3 of its machines will wear out. - If it expects to sell 1600 units next year, how many machines will it buy?
Answer:
it should be 7 units
Explanation:
if 3 machines will wear out, they have 9 machines instead of 12, 9×100 each is 900
they still need 700 to get to 1600, so 700 divided by 100 per machine is 7 machines that they need to buy
At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four-year, noninterest-bearing note in the face amount of $12 million. The note is payable in four annual installments of $3 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in the agreement? 2. to 4. Prepare the necessary journal entry. 5. Suppose the market value of the equipment was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 11%. Prepare the journal entry to record the purchase of the equipment.
Answer:
1) we can use the present value of an ordinary annuity formula to calculate the effective interest rate:
present value = annual payment x PV annuity factor (%, 4 periods)
9,112,050 = 3,000,000 x PV annuity factor (%, 4 periods)
PV annuity factor (%, 4 periods) = 9,112,050 / 3,000,000 = 3.03735
using a present value table, the % for 4 periods = 12%
2 to 4) January 2, 2018, equipment purchased by issuing non-interest-bearing note
Dr Equipment 9,112,050
Dr Discount on notes payable 2,887,950
Cr Notes payable 12,000,000
December 31, 2018, first installment paid on notes payable
Dr Notes payable 3,000,000
Dr Interest expense 1,093,446
Cr Cash 3,000,000
Cr Discount on notes payable 1,093,446
interest expense = 9,112,050 x 12% = 1,093,446
December 31, 2019, second installment paid on notes payable
Dr Notes payable 3,000,000
Dr Interest expense 864,660
Cr Cash 3,000,000
Cr Discount on notes payable 864,660
interest expense = 7,205,496 x 12% = 864,659.52 ≈ 864,660
December 31, 2020, third installment paid on notes payable
Dr Notes payable 3,000,000
Dr Interest expense 608,419
Cr Cash 3,000,000
Cr Discount on notes payable 608,419
interest expense = 5,070,156 x 12% = 608,418.72 ≈ 608,419
December 31, 2021, fourth installment paid on notes payable
Dr Notes payable 3,000,000
Dr Interest expense 321,425
Cr Cash 3,000,000
Cr Discount on notes payable 321,425
5) present value of equipment = 3,000,000 x 3.1024 (PV annuity factor, 115, 4 periods) = 9,307,200
Dr Equipment 9,307,200
Dr Discount on notes payable 2,692,800
Cr Notes payable 12,000,000
The possibility of incurring a loss is called?
The basic purpose of a performance appraisal system is to ________.
Answer:
To evaluate the overall performance of an employee.
Explanation:
Given that the Performance Appraisal is a systematic analysis and assessment of both the single employee or the group of employees as a whole
Hence, the basic purpose of a performance appraisal system is to evaluate and assess the overall performances of employee(s), or team, specifically in the area of work responsibilities, assignments, workplace affair, leadership skills, and potentials.
Individuals performing in professional jobs are compensated initially for their ________.
a) productivity.b) goal achievement.c) knowledge.d) extensive experience.
Answer:
A
Explanation:
When the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds dated January 1, 2017, that mature on December 31, 2026, and pay interest semiannually for a selling price of $60,000. When the bonds mature, the issuer records its payment of principal with a (debit/credit)
Answer:
Bonds payable Dr $50,000
To cash Cr $50,000
Explanation:
Debit to bonds payable in the amount of $50,000. Upon maturity, bonds payable will be debited by their face value of $50,000.
The premium received on bonds will be written off in phased manner over the life of the bonds. i.e $60,000 -50,000 = $10,000,
The Journal entry will be:
Date Account Title Debit Credit
Bonds payable $50,000
Cash $50,000
1. You have been working at Saxet Consulting for the past year and are expected to complete three client reviews per week. You have been very productive and have been completing two extra reviews per week. At a recent team meeting, you expected to receive praise from the President for this extra work; however, your manager took credit for the extra work and received the praise from the President. What has your manager violated and what is your likely reaction?
Explanation:
Analyzing the situation exposed in the question above, it is correct to state that the manager was malicious in assuming the credits for his subordinate's extra work and acted in an unethical manner.
These situations can happen due to the fact that many employees are afraid to confront their manager for bad behavior due to their hierarchical position and the fear of being warned or losing their jobs, so these situations can be common in companies.
The ideal in this situation would be an assertive reaction, using an ethical and professional approach to know the manager's motivation to act in that way.
It is also valid for other employees to know that their work is being carried out, so that this type of manager behavior is minimized, as there may be a fear of being exposed by the team.
The relationship between manager and subordinate must be based on trust and mutual respect, so that the work is carried out efficiently and each one can do their best to achieve the team's goals.
Instead of reporting the $80,000 as revenue, how else might you report this amount?
Answer: Unearned Revenue
Explanation:
The $80,000 should be recorded as Unearned Revenue because under the Accrual Principle of Accounting, revenue should only be recognized when the services that were paid for her been given.
If the services have not been given and revenue is accrued, the company should not recognize this as revenue but rather as Unearned revenue. They will only recognize it when they have delivered the rent service. Until then, the unearned revenue will be considered a liability.
Washington Inc. issued $846,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $9,840 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 102 (after making the interest payment on that date). What is the gain or loss that Washington Inc. would report for the retirement of this bond
Answer:
Bond discount at the issuance of bond = $846,000 - ($846,000/100 *98)
Bond discount at the issuance of bond = $846,000- $829,080
Bond discount at the issuance of bond = $16920
Bond Payable = $846,000
Un-amortized bond discount = $16,920 - $9,840
Un-amortized bond discount = $7,080
Redemption Value of Bond = 102/100 * $846,000
Redemption Value of Bond = $ 862,920
Loss on retirement on Bond = Redemption Value of Bond - (Bond Payable - Un-amortized bond discount)
Loss on retirement on Bond = $862,920 - ($846,000 - $7,080)
Loss on retirement on Bond = $862,920 - $838,920
Loss on retirement on Bond = $24,000
Stuart Company had Net Income for 2019 of $8,100,000. The firm invested $1,000,000 in manufacturing equipment during 2018 but made no additional capital investments in 2019. The equipment is being depreciated over five years using straight-line depreciation, starting in 2018. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2019 with amounts in thousands. What is the Net Cash Flow in 2019
Answer:
.....................................................Stuart Company.......................................
.......................................Statement of Cash Flows ....................................
........................................For the year ended 2019...................................
Cash Flow from Operating Activities:
Net Income........................................................................$8,100,000
Add Depreciation Expense.................................................$200,000
Net Cash provided (used) by operating activities: ......$8,300,000
Cash Flow from Investing Activities:
Purchase of manufacturing equipment ...........................-$1,000,000
Net Cash provided (used) in Investing activities.............-$1,000,000
Cash Flow from Financing Activities:....................................$0.00
Net cash flow in 2019 ...........................................................$7,300,000
Depreciation of equipment;
= Cost / Useful term
= 1,000,000 / 5
= $200,000
A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs. Both loans are for $100,000 and have a 7% interest rate. Loan 1 is fully amortizing, where as Loan 2 has negative amortization with a $120,000 balloon payment due at the end of the life of the loan. How much higher is the monthly payment on loan 1 versus loan 2? (Hint: calculate both payments and take the difference. Only the future values of the loans are different. Round your answer to two decimal places.)
Answer: $98.36
Explanation:
Based on the information that has already been given in the question, the following can be analysed:
For Loan 1:
Interest Rate = 7%
Nper = 30
Present value = $100000
With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:
= pmt(rate, nper, pv,fv)
= pmt(7%/12,30×12,-100000,0)
= pmt(0.07/12,360,-100000,0)
= $665.30
For Loan 2:
Interest Rate = 7%
Nper = 30
Present value = $100000
Future value = $120000
With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:
= pmt(rate, nper, pv,fv)
= pmt(7%/12,30×12,-100000,120000)
= pmt(0.07/12,360,-100000,120000)
= $566.94
The difference in the monthly payments will be:
= $665.3 - $566.94
= $98.36
XYZ has an investment worth $56,000. The investment will make a special, extra payment of X to XYZ in 3 years from today. The investment also will make regular, fixed annual payments of $12,000 to XYZ with the first of these payments made to XYZ in 1 year from today and the last of these annual payments made to XYZ in 5 years from today. The expected return for the investment is 12.3 percent per year. What is X, the amount of the special payment that will be made to XYZ in 3 years
Answer:
The special return will be for 23,330.11 at year 3
Explanation:
we know that the expected return AKA internal rate of return is 12.30 per year
we set up the time-line for the investment:
F0 -56,000 investment
constant return of 12,000 for 5 years.
additional return at F3
F0 + PV of the F3 return + PV of the 12,000 annuity = 0
present value of the annuity:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 12,000.00
time 5
rate 0.123
[tex]12000 \times \frac{1-(1+0.123)^{-5} }{0.123} = PV\\[/tex]
PV $42,937.7486
Present value of the additional return:
56,000 - 42,937.75 = 13,062.25
Now, we know that this is the discounted amount of the nominal return at 12.30% during 3 years:
[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{Nominal}{(1 + 0.1230)^{5} } = 13,062.25[/tex]
Nominal = 23,330.11
The operating cost for a pulverized coal cyclone furnace is expected to be $80,000 per year. The steam produced will be needed for only 6 years beginning now (i.e., years 0 through 5). What is the equivalent annual worth in years 1 through 5 of the operating cost at an interest rate of 10% per year
Answer:
$101,104
Explanation:
Calculation for the equivalent annual worth
Using this formula
Equivalent annual worth=Operating cost(A/P,i,n)+ Operating cost
Let plug in the formula
Equivalent annual worth=80,000(A/P,10%,5) + 80,000
Using financial calculator (A/P,10%,5) will give us (0.26380)
Hence,
Equivalent annual worth=80,000(0.26380) + 80,000
Equivalent annual worth=$21,104+$80,000
Equivalent annual worth== $101,104
Therefore the Equivalent annual worth will be $101,104
Effective teams translate their common purpose into ______ goals. a. universal. b. generic. c. vast. d. specific. e. diverse.
Answer:
Option “D” Specific.
Explanation:
Option “D” Specific is the correct answer because the specific goal is the success goal and this goal encompasses the actions and plans that exhibit the way to achieve the goal. Moreover, the performance of the actions tells whether the goal will be achieved or not. If teamwork for a common goal then it is the technique to increase chances to achieve success by setting their goals as the specific goals.
This statement: Accounts receivable on ABC Company's at Dec. 31, 2019 represents 25 % of the Company's total assets is an example of what type of analysis?
A) Vertical Analysis.
B) Horizontal Analysis.
C) Ratio Analysis.
D) None of the above.
Answer: A) Vertical Analysis.
Explanation:
Vertical Analysis is a method used to analyse the financial statement and it works by converting every entry in a statement to a percentage of the base figure in the statement.
In the Balance Sheet, the base figure will be the total amount of Assets so when any other entry is made a percentage of assets such as was done to the Accounts Receivables of ABC company, this is a Vertical Analysis.
GDP is the market value of: Multiple Choice all expenditures on natural resources, labor, and capital goods in an economy in a given year. all expenditures on consumption, investment, and net exports in an economy in a given year. all intermediate goods and services produced in an economy in a given year. all final goods and services produced in an economy in a given year.
Answer:
The correct answer is the last option: All final goods and services produced in an economy in a given year.
Explanation:
To begin with, the "Gross Domestic Product" or GDP, is known as an macro economic variable which tends to be one of the most important ones that reflects the value market of all the final goods and services that are produced in an economy in a particular amount of time. Moreover, this variable is an important factor to consider when it comes to comparing nations living standards and more. It is quite helpful for the economists to use this variable as a way of knowing how is the economy of the country going and under what subvariable is everything going.
Late in the current year, Jolsen Company signed a four-year contract with an advertising agency. Under the contract, Jolsen must pay $375,000 annually for the agency's services. After Jolsen signed the contract, Congress enacted legislation disallowing any deduction for advertising expense for future tax years. Jolsen underestimated the after-tax cost of the contract because of:
Answer:
Tax law uncertainty.
Explanation:
The “Tax law uncertainty” is the correct answer because it can be seen in the question that Congress has disallowed the deductions for advertisement in the future tax years. Since the decisions that the government takes are confidential and only a few people are aware of the decisions before its formal announcement. So the same case is here, Jolsen had a contract of $375000 annually and it will estimate that after obtaining the tax deduction, the advertisement cost will be lower. But the changes in the tax laws result in underestimated after-tax cost by Jolsen.
A machine purchased on 1/1/21 for $24,000 and on which $14,400 of Accumulated Depreciation has been recorded through 12/31/23 was sold on 4/1/24. Straight-line depreciation was used. Salvage Value was zero. Asset life was 5 years. If the machine was sold for $16,000 cash, the journal entry to record this event would include a gain of:
Answer:
Gain on disposal = $7600
Explanation:
As the machine is sold on 1 April 2024, we first need to update the depreciation expense and charge the depreciation to the date. The depreciation has been charged till 1 December 2023. So, we need to charge the depreciation for three more months.
The formula for depreciation expense under straight line method is,
Depreciation expense per year = (Cost - Salvage value) / Estimated useful life
Depreciation expense per year = (24000 - 0) / 5
Depreciation expense per year = $4800 per year
Depreciation expense for three months = 4800 * 3/12 = $1200
Accumulated depreciation 1 April 2024 = 14400 + 1200 = $15600
To calculate the gain or loss on disposal, we first need to determine the net book value of asset and deduct it from the cash received on disposal.
NBV = Cost - Accumulated depreciation
NBV = 24000 - 15600
NBV = $8400
Gain on disposal = 16000 - 8400
Gain on disposal = $7600
1. Sony has 12 core segments in its business. Is this too many or not enough? Are today’s companies diversified like they used to be a few decades ago? Can Sony’s 12-segment business model be sustainable?
2.The Future Lab Program, which is a part of Sony’s investment in R&D, embraces an approach to technological R&D that emphasizes an open creative environment and direct lines of communication with society, with the end goal being to co-create new lifestyles and customer value. Does Sony create significant customer value? Does Sony create new lifestyles?
Answer:
1) This question is about whether diversification is good or bad for a large corporation. Whether diversification can be considered good or bad depends on the corporation itself, there is no one answer fits all. In this case, Sony is divided into 12 segments or divisions and each of them generates their own cash flows and offers their own products or services.
High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.
When we think about Sony we probably think about consumer electronics, the Playstation or even movies, but in order to be profitable, Sony had to expand and diversify. Sony's revenues are shifting from consumer electronics to services (including financial, gaming, network, music and movies), so that means that their diversification model actually worked.
2) Sony's goal with Future Lab is to create customer value and new lifestyles, whether they are able to do so depends on how well they work it out. Future Labs is based on San Francisco, and it should serve as a place where innovative prototypes should be tested by real users. The goal is that Sony can learn from actual real life user experiences in order to improve their products and services. The real life customers and users that want to participate in Sony's program must pay a fee for doing so, but they can also experience prototypes before anyone else.
Bob deposits the amount of $115 in his bank account today, and plans to deposit the amount of $150 in the same account one year from today, and finally plans to deposit the amount of $225 in the same account two years from now. If the interest rate is 7.65%, how much will Bob have accumulated in his account three years from today
Answer:$559.50
Explanation:
Using the formula
PV x (1 + r) ^ n = FV
where PV= Present value
r= rate
n=number of years
FV= Future value
a) Future value to earn in 3 yrs for amount of $115
115 x (1+7.65%) ^3 = $143.463
b) Future value to earn in 2 yrs for amount of $150
150 x (1+7.65%) ^2= $173.8278
c)Future value to earn in 1 year for amount of $225
225 x (1+7.65%) ^1= $242.2125
Total Amount Accumulated in three years = $143.463 + $173.8278+ $242.2125 =$559.5033 = $559.50
a. What will the operating profit be? b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?
Answer:
a. Operating Profit will be;
= Sales - Costs
= (270 - 120 ) * 5,000 - 300,000
= $450,000
b. Sales price increases by 20% = 270 * ( 1 + 20%)
= $324
Sales price decreases by 10% = 270 * ( 1 - 10%)
= $243
Operating profit if price decreases;
= (243 - 120 ) * 5,000 - 300,000
= $315,000
Operating profit if price increases;
= ( 324 - 120) * 5,000 - 300,000
= $720,000
c. Variable cost increases by 20% = 120 * ( 1 + 20%)
= $144
Variable Cost decreases by 10% = 120 * ( 1 - 10%)
= $108
Operating profit if variable cost decreases;
= (270 - 108 ) * 5,000 - 300,000
= $510,000
Operating profit if variable cost increases;
= ( 270 - 144 ) * 5,000 - 300,000
= $330,000
d. Fixed costs lower by 10% = 300,000 8 ( 1 - 10%)
= $270,000
Variable costs increase higher by 10% = 120 * ( 1 + 10%)
= $132
= (270 - 132) * 5,000 - 270,000
= $420,000
Operating profit will be down by $30,000 as a result of a 10% increase in variable costs and a 10% decrease fixed costs.
Define communism. What is the difference between communism and a command economy?
Answer:
In a true communist economy, the community makes decisions. In most communist countries, the government makes those decisions on their behalf. This system is called a command economy.
Tyler Apiaries sells bees and beekeeping supplies. Bees (including a queen) are shipped in special packages according to weight. Suppose Tyler changes its processes so that the average package weight is 1.9kg, with a new standard deviation of0.14 kg. Tyler markets the packages of bees as weighing 1.8 kg, and the lower and upper tolerance limits are 1.1 kg and 2.5 kg, respectively. Calculate the process capability index for the weight of the bee packages. Is Tyler able to meet the tolerance limits?
Answer: 0.143
Explanation:
Given the following :
Average package weight(m) = 1.9kg
Standard deviation(sd) = 1.4kg
Upper Tolerance Limit (UTL) = 2.5kg
Lower Tolerance limit (LTL) = 1.1kg
Cpk = min[( average weight -Lower Tolerance Limit / 3 (standard deviation) , (UTL- average weight / 3(Standard Deviation)]
Cpk = min[( 1.9 - 1.1 / 3 (1.4)) , (2.5 - 1.9 / 3(1.4))]
Cpk = min[(0.8 / 4.2), (0.6 / 4.2)]
Cpk = min[0.190, 0.143])
Hence,
Process capability index = 0.143
Acme LLC has already paid $10,000,000 in Research & Development costs. Unfortunately, times have changed. Since they started R&D, the market for their new product, "the fancy machine," has shrunk. Acme’s accountants have determined that if they were to still produce the fancy machines, the quantity that would produce the highest revenue would be is 1,000,000 fancy machines. Each machine costs $4 to make and would be sold for $12. What should Acme do?
Answer:
he best course of action for Acme to take would be to produce the 1,000,000 products as the accountants have stated
Explanation:
Based on the information provided, the best course of action for Acme to take would be to produce the 1,000,000 products as the accountants have stated. From solely taking into account the fixed costs of producing the products, if the company were to produce the desired amount and sell them they would recover a total of 8,000,000 from the costs that they have incurred in Research & Development. This is not taking into account the variable costs that may be incurred, still, they recover much of what they have already spent.
Companies usually buy (Click to select) assets. These include both tangible assets such as (Click to select) and intangible assets such as (Click to select) . To pay for these assets, they sell (Click to select) assets such as (Click to select) . The decision about which assets to buy is usually termed the (Click to select) or (Click to select) decision. The decision about how to raise the money is usually termed the (Click to select) decision.
Answer:
Now fit each of following terms into the most appropriate space: Financing, real, bonds, investment, executive airplanes, financial, capital budgeting, brand names.
Companies usually buy real assets. These include both tangible assets such as executive airplanes and intangible assets such as brand names. To pay for these assets, they sell financial assets such as bonds . The decision about which assets to buy is usually termed the investment or capital budgeting decision. The decision about how to raise the money is usually termed the financing decision.
Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing). In one year they produced $15 million worth of hay, with $11 million consumed domestically and the other $4 million sold to neighboring countries. They provided $7 million worth of banjo-playing services, $5 million in Heehaw, and $2 million in neighboring countries. They purchased $6 million worth of soda pop from neighboring countries. Calculate the magnitudes of GNP, GDP, net factor payments from abroad, net exports, and the current account balance.
Answer:
GNP can be taken as the total output produced by the citizens.
GNP = Worth of hay + worth of harp music service
GNP = $15 million + $7 million
GNP = $22 million.
GDP can be seen as the total output produced in the country.
GDP = Worth of hay + worth of harp music service in the country
GDP = $15 million + $5 million
GDP = $20 million
Net factor payment from abroad is the difference between GNP and GDP.
Net factor payment from abroad= GNP - GDP
= $22 million - $20 million
= $2 million
Net exports = Hay sold abroad - Imports of soda pop
Net exports = $4 million - $6 million
Net exports = -$2 million
As the harp music played in abroad will not be included in GDP and thus it is not included in net exports
Current Account balance = Net exports + Net factor payments
Current Account balance = -$2 million +$2 million
Current Account balance = $0
Gross Domestic Product (GDP) measures the amount of goods and services that the final product — that is, those purchased by the end-user — produced in the country over a period of time (that is quarter or year).
What is the difference between GNP and GDP?GDP measures the amount of goods and services produced within national borders, by citizens and non-citizens alike. The GNP measures the amount of goods and services produced by citizens both domestically and abroad.
As per the given information:
Calculation of GNP:
[tex]\rm\,GNP = Worth \;of \;hay + Worth \;of \;harp \;music \;service\\\\GNP = \$15 million + \$7 million\\\\GNP = \$22 million.[/tex]
Calculation of GDP:
[tex]\rm\, GDP = Worth\; of \;hay + Worth \;of \;harp\; music\; service\; in \;the\; country\\\\GDP = \$15 million + \$5 million\\\\GDP = \$20 million[/tex]
Net factor payment from abroad is the difference between GNP and GDP:
[tex]\rm\,Net \;factor \;payment \;from\; abroad = GNP - GDP\\\\\rm\,Net \;factor \;payment \;from\; abroad = \$22 million - \$20 million\\\\\rm\,Net \;factor \;payment \;from\; abroad = \$2 \;million[/tex]
Calculation of net exports:
[tex]\rm\,Net\; exports = Hay\; sold \;abroad - Imports \;of \;soda\; pop\\\\Net\; exports = \$4\; million - \$6 \;million\\\\Net \;exports = -\$2\; million[/tex]
Harp music played abroad will not be included in GDP and therefore it is not included in net exports.
[tex]\rm\,Current \;Account\; balance = \;Net \;exports + Net\; factor \;payments\\\\Current \;Account \;balance \;= -\$2 \;million +\$2\; million\\\\Current\; Account\; balance = \$0[/tex]
Hence, with the given information we have calculated GNP, GDP. net factor payment, net exports, and current account balance.
To learn more about GDP, refer:
https://brainly.com/question/1383956
Landmark Corp. buys $300,000 of Schroeter Company's 8% five-year bonds payable at par value on September 1. Interest payments are made semiannually.
Landmark plans to hold the bonds for the five year life.
The journal entry to record the purchase should include:__________.
A) A debit to Long-Term Investments-AFS $300,000.
B) A debit to Short-Term Investments-Trading $300,000.
C) A debit to Long-Term Investments-HTM $300,000.
D) A debit to Short-Term Investments-AFS $300,000.
E) A debit to Cash $300,000.
Answer: A debit to Long-Term Investments-HTM $300,000
Explanation:
A journal entry is the act of making records of the transactions that takes place and such transactions typically shows the debit and credit balance of the company.
From the question, we are informed that Landmark Corp. buys $300,000 of Schroeter Company's 8% five-year bonds payable at par value on September 1. Interest payments are made semiannually and that Landmark plans to hold the bonds for the five year life.
The journal entry to record the purchase should include a debit to Long-Term Investments-HTM $300,000.
There are two firms, Joe's bakery and Jenny's tire shop. Joe sees his P* greater than AVC but less than ATC, Jenny sees her P* greater than AVC and greater than ATC. What will they do? radio_button_unchecked Jenny will shut down in the short run, stay in the long run, Joe will stay in the long and short run. radio_button_unchecked Jenny will stay in the short and long run and Joe will stay in the short run and exit in the long run. radio_button_unchecked Joe will exit in the long run but stay in the short run and Jenny will shut down in the short run and exit in the long run. radio_button_unchecked Joe will stay in the long and short run and Jenny will stay in the long and short run. SUBMIT
Answer:
Jenny will stay in the short and long run and Joe will stay in the short run and exit in the long run.
Explanation:
Joe's price is > average variable cost but < than average total cost. This means that he can continue to operate in the short run as long a the AVC is lower than the price, but on the long run he will close. He will not be able to make a profit in the long run, but his business can "survive" in the short run.
Jenny's price is > average variable cost and > than average total cost. She can continue to operate in the short and long run.
