Here are some instances of market-based policies that don't rely on command-and-control.
Depending on the market
1. Each company is subject to an emissions tax levied by the state.
2. The federal government provides fishermen with compensation in order to protect wild salmon
3. Domestic automakers are required by the federal government to reduce vehicle emissions.
These are the market- based policies rather than command-and-control policies
Some market-based policies, like the earned-income tax credit or housing or education vouchers, essentially function as government subsidies to people or businesses. Other market-based regulations, like taxes on alcohol or gasoline, call for payments to be given to the government.
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a corporation has the following account balances: common stock, $1 par value, $30,000; paid-in capital in excess of par, $650,000. based on this information, the group of answer choices legal capital is $680,000. number of shares issued is 30,000. number of shares outstanding is 680,000. average price per share issued is $11.25.
60,000 shares have been issued by a corporation, according to its account balances. $30,000 for $1 par value.
How do you calculate average price of shares issued?To determine the average cost per share, divide the total cost of the acquisition by the number of shares purchased. The phrase "average share price" refers to the average of the closing prices of a Share, a Share, or any other equity unit of every other relevant firm on each trading day during the 20 trading days that included the applicable date of determination.
The price at which shares are initially made accessible to the public is known as the issue price. On the first day of trade, the company's shares decreased from its issue price. Take the following instance: Consider buying 100 shares of stock for $70 each ($7,000 total).
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Everyday you take the morning train to get to work 15 minutes before your shift begin today the train broke down and they think it will take an hour to get fixed Define the problem in the situation?
You'll be an hour late for your shift will be the problem in the situation. Thus option A is correct.
What is broken down?Broke down can be defined as something when the process was running and suddenly stopped performing. This will be because of some kind of problem.
Because you have to get to work on time, the fact that you will be an hour late for your shift made you consider the issue. You may believe that one will eventually be an hour late for a shift if the train broke down and one learns that it will be an hour late as a result.
Therefore, option A is the correct option.
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The question is incomplete, the complete question will be :
Every day you take the morning train to get to work 15 minutes before your shift begins. Today the train broke down and they think it will take an hour to get it fixed. Define the problem for the situation above by selecting the best answer,
A. You'll be an hour late for your shift
B. The train broke down
C. You take the morning train to work
D. You need to be at work 15 minutes before your shift begins
consider a country facing a constant opportunity cost ppf. this country makes two goods, s and t. the maximum amount of s that this country could produce is 86, and the maximum amount of t that this country could produce is 54. the relative price of s (in terms of t) is t given up. round to two decimal places.
Consider a country facing a constant opportunity cost ppf. The relative price of s (in terms of t) is t given up is 0.65
Calculating:Relative amount of T in terms of S = 86/54
The relative price of T (in term of S) is 54/86 = 0.65
What does relative price imply?
The ratio of the price of a particular product in one period to the price of the same product in another period is known as a price relative. Significant information about the scarcity of particular goods and services can be gleaned from relative price movements. While a falling relative price indicates the exact opposite, a rising relative price indicates that demand is exceeding supply (or that supply is falling behind demand).
How is the relative price determined?You are already aware that a product's relative price is the price of another product. The ratio of the prices of two goods or services is how it is expressed. Divide the price of one product by the price of another to get a product's relative price.
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When Stephanie took out a one-year fixed-rate loan, she expected to pay a real interest rate of 3 percent. At the end of the year, the real interest rate had fallen to 2 percent. Which of the following could have caused the decrease in the real interest rate? (A) There was an increase in the nominal interest rate. (B) There was a decrease in the nominal interest rate. (C) There was a decrease in the money supply. (D) The actual inflation rate was greater than the expected inflation rate. (E) The actual inflation rate was less than the expected inflation rate.
The actual inflation rate was greater than expected inflation rate could have caused the decrease in the real interest rate.
What is inflation?In the field of economics, inflation is the general rise in the cost of goods and services throughout a country's economy. A decrease in the purchasing power of money results from an increase in the general price level, which makes each unit of currency buy less in goods and services. This is why inflation is a result of rising prices generally.
The opposite of inflation is deflation, which is a persistent drop in the general level of prices for goods and services. The annualised percentage change in an index of general prices, or the inflation rate, is the most widely used indicator of inflation.
The consumer price index (CPI) is frequently used for this reason because prices don't rise uniformly. American wages are calculated using the employment cost index.
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which of the following best describes an automatic stabilizer that will help lincolnland recover from a recession?
The simplest way to define an automatic stabilizer that will aid Lincolnland in recovering from a recession is through government transfer programs, such as unemployment compensation.
What do we mean by unemployment benefits?The simplest way to describe an automatic stabilizer that will help Lincolnland bounce back from a recession is through transfer programs offered by the government, such as unemployment benefits.
In Illinois, your weekly benefit amount is calculated by aggregating your earnings from the two base period quarters when you made the most money, subtracting 47% of that sum, and dividing the result by 26.
In Illinois, there are various ways to lose your eligibility for unemployment benefits: You left your employment abruptly and without cause.
You lost your job as a result of wrongdoing related to your job.
You either did not accept a suitable job that was given to you or did not have a good reason for applying for Illinois unemployment.
Therefore, the simplest way to define an automatic stabilizer that will aid Lincolnland in recovering from a recession is through government transfer programs, such as unemployment compensation.
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Correct question:
What best describes an automatic stabilizer that will help lincoln land recover from a recession?
A stock quote indicates a stock price of $100 and a dividend yield of 3%. The latest quarterly dividend received by stock investors must have been _____ per share.
a. $2.25
b. $0.75
c. $1.50
d. $3.00
A correct answer is an option (b), i.e., $0.75. A cash tip can be defined as the portion of profit distributed among the common shareholders by the company.
The company can also issue fresh stock rather than cash tips. The tip yield is a fiscal rate that shows how much a company pays out in tips each time relative to its stock price. The formula to calculate tip yield is fairly simple. You do not need special calculation or fiscal training to be suitable for any tip stocks you enjoy as shareholders. All you have to do is divide the periodic tip by the current stock price, and you will get the tip yield.
So, to calculate the quantum you'll admit each quarter, you'll have to take the quoted tip quantum and divide it by four. For illustration, if you enjoy Cory's Tequila Corporation( CTC), which pays a$ 1 monthly tip daily, you would admit$0.25 every three months.
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venus was a low-cost airline that operated in the 1990s. industry analysts state that although venus was able to provide all the services the customers wanted, it was thrown out of business because of aggressive pricing from larger airline firms. which of the following aspects of the competitive environment does this scenario illustrate?
Rivals aspects of the competitive environment does this scenario illustrate because of aggressive pricing from larger airline firms.
The process of estimating a product's or service's worth is called pricing. Pricing establishes the price that a client must pay, but it may or may not be linked to the price that the company must pay to provide the good or service. Depending on the sector and business model at hand, models including value-based, competition-based, cost-plus, and dynamic pricing are all often employed. Pricing is the process of determining the value that a producer will get in return for services and commodities. The producer uses a pricing strategy to make the cost of its products appropriate for both the manufacturer and the consumer. In the world of trade, one of the most crucial elements is pricing. Adding value to a thing implies setting a price for it to be a commodity.
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amy austin established an insurance agency on march 1 of the current year and completed the following transactions during march: opened a business bank account with a deposit of $50,000 in exchange for common stock. purchased supplies on account, $4,000. paid creditors on account, $2,300. received cash from fees earned on insurance commissions, $13,800. paid rent on office and equipment for the month, $5,000. paid automobile expenses for month, $1,150, and miscellaneous expenses, $300. paid office salaries, $2,500. determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300. billed insurance companies for for fees earned for commissions, $12,500. Withdrew cash for personal use, $3,900.
Required:
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign.
Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers.
During the month of March, she carried out the following transactions: opened a company bank account and put $50,000 of personal money into it. $4000 worth of materials were negative on credit. $2,300 was paid to debtors on account. An insurance agency, often known as an transaction insurance agent, is a person or business that has been granted permission by a carrier to market the insurer's goods in exchange for payment. The laws of the state where an agent works govern them. An insurance balances agent's duties include recommending various insurance products to clients and assisting them in making needs-based insurance policy selections.
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a rural property owner acquired ownership of land that was deposited by a river running through her property by
Accretion.
Who owns land beneath a navigable river?The river in question is deemed a public easement if it is navigable. In this scenario, the owner’s property extends to the water’s edge rather than the waterway’s middle. The land under the sea is owned by the state.
The main characteristic of this form of easement is that it is owned by the owner in his or her capacity as dominating tenement. When the dominating tenement is transferred or sold, the easement is automatically transferred with it. Real estate is immovable. It consists of the land, everything permanently linked to it, and the rights that “run with” the property. Personal property, on the other hand, is easily moved.
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A homeowner acquired the ownership of land that was deposited by a river running through a property. The additional land was acquired by accretion
What is the land's ownership status?To put it another way, a landowner is simply the person who owns the most rights out of all the others because land ownership is nothing more than the ownership of one or more rights. This opens up numerous possibilities; Rights can conflict with one another or overlap without causing problems.
What exactly is ownership?The state or fact of having legal possession and control over property—any tangible or intangible asset—is called ownership. Multiple rights, collectively referred to as title, can be divided up and held by different parties in ownership.
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in the context of the history of american business, which of the following statements is true of the marketing era?
Businesses began to create brands to assist the client in understanding the distinctions between various products. This assertion is correct.
Nonprofits are private sector organizations that employ thousands of people and create products and services with both the primary objective of benefiting the congregation but instead of financial gains.
Natural resources, capital, human resources, and enterprise development are four primary sources of information on and that both commercial enterprises and charitable organizations depended.
The standard of living refers to the level and quantity of services and goods obtainable to a workforce.
Commercial enterprises that place a high priority on customer satisfaction tend to convert their customer loyalty into ardent supporters of their products and services.
Experts frequently advise graduate from high school pupils to choose a career those who enjoy since it will be more exciting.
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Seaquestor Nautical Inc. is about to issue 2 million shares of new common stock. Its investment banker will charge an underwriters' commission of $6.20 per share. The current and offering price is expected to be $75.00 per share. Analysts expect the company will pay a dividend this year of $7.20 per share, and that the company will continue to grow its dividend by 5.0% per year for the foreseeable future. The company's marginal statutory income tax rate is 25%. How could the company's management estimate the cost of this new equity capital? O 15.47% Pre-Tax 11.60% After-Tax O 17.58% Pre-Tax 13.19% After-Tax O 17.58% Pre-Tax: 17.58% After Tax O 15.47% Pre-Tax 15.47% After-Tax
Investment bankers are the ones that would be contacted in order to raise significant sums of money in order to purchase another firm.
This person assists in raising funds for significant businesses and organizations. The explanation for this question's answer is best matched to the fact that the banker is assisting in the fund raising for the potential acquisition of a company. Investment bankers are the ones that would be contacted in order to raise significant sums of money in order to purchase another firm. Bankers are employees of commercial and investment banks. Commercial banks are financial institutions that come in a variety of sizes, from little community banks to massive institutions with numerous offices throughout an area or the nation. A person or business that helps in the following areas is known as an investment banker.
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advertising, personal selling, public relations, sales promotion, and direct marketing are the five elements of the
The five elements given in the given question is about communication tools.
Tools for Basic Communication. Both internal and external communication utilize a wide range of communication techniques. These tools include communication channels like mail, email, phones, cell phones, and smartphones, as well as computing devices like PCs, video and web conferencing tools, social media, and online collaboration and productivity applications. Apps, programs, and online portals that enable distributed and remote teams to interact and communicate with one another wherever they are are collectively referred to as communication tools. The exchange of information, opinions, and ideas that results in a group of people organized to accomplish a certain goal having a shared interest, a clear sense of purpose, and an integrated effort is known as communication tools as a management (administration) tool.
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the participant will organize and deliver a sales presentation or consultation for one or more products/services/customers. the participant will research an actual company that he/she represents and real product(s)/services(s) to be presented. the participant will also research the target customer that the product/service will be presented to. then the participant will present the product(s)/service(s) using the steps in the selling/consulting process to meet the needs of the customer (prospect). for 2022-2023 you will assume the role of a financial consultant to a local bank or credit union. the bank or credit union is looking to close some of its brick-and-mortar locations and transition more of its services to an online/virtual platform. the bank or credit union is seeking your recommendation on what services could be transitioned to an online-only banking platform without compromising customer service to its customers
These financial instruments are debt securities that non-federal government bodies issue to pay for their capital expenditures.
State and government bonds often provide regular interest payments and are secure investments. By the indicated maturity date, they pay back face value. The goal of these bonds is to raise money for government investments. These bonds are typically regarded as secure because of the government's backing. A well-known financial institution product called certificates of deposit incentivizes customers to keep their deposits in place. Although these interests are often low, they are almost risk-free. The specifics of the CD offer must be decided by each bank or company because they might conflict with those of other financial products. Mutual funds that specialize in investing in highly liquid financial products, such as cash and cash equivalents, are known as money market funds.
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The buyers do not have enough money saved for a down payment. However, they do have excellent incomes. They really want to buy a certain home right now. If the owner is willing, they could enter into a A. wraparound mortgage.B. sale-leaseback.C. open-ended mortgage.D. lease-option
The buyers do not have enough money saved for a down payment. If the owner is willing, they could enter into a wraparound mortgage.
Option A is correct.
What is a "wraparound mortgage"?A type of financing called a "wraparound mortgage" lets a borrower combine two mortgages into one loan. A lender takes over a property's existing mortgage and extends the loan to include more money for the borrower.
After that, the lender issues a brand-new mortgage that is equal to the amount of the previous loan plus an additional amount. The wraparound lender collects payments on both loans, with the existing loan remaining as a subordinate loan. The borrower can get more money without taking out a new loan or refinancing the one they already have because the wraparound loan is secured by the same property as the original loan.
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The tables show the spending and revenue for littleland in 2010. use the tables and other information to answer the questions that follow.
How much money (in millons) did Littleland need to borrow in 2010 to finance its government spending?
At the end of 2010 what was Littleland's debt to GDP ratio? (give your answer to the nearest whole percentage point)
What was Littleland's deficit to GDP ratio in 2010? (give your answer to the nearest whole percentage point) *Incorrect. To calculate how much Littleland needs to borrow you should compare its total spending against its total revenue.
In 2010, the Littleland need to borrow $300 million to finance its government spending. At the give up of 2010 what was Littleland's debt to GDP ratio is 52%.
The tax-to-GDP ratio is the ratio of the tax revenue of a usa compared to the country's gross home product (GDP). This ratio is used as a measure of how properly the government controls a country's monetary resources.
Tax-to-GDP ratio is calculated by dividing the tax income of a specific time duration by means of the GDP.
How is GDP ratio calculated?The debt-to-GDP ratio is a components that compares a country's complete debt to its financial productivity. To get the debt-to-GDP ratio, divide a nation's debt via its gross home product.
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https://brainly.com/question/1383956#SPJ4economic well-being and the quality of life improve when businesses create more jobs because blank .
Economic well-being and the quality of life improve when businesses create more jobs because people can purchase more goods and services.
Three indicators of a country's financial health?GDP per person, inflation, and employment trends are examples of economic well-being indicators. such is real GDP growth by industry, real personal income per capita by state, and the distribution of personal income across families.
What economic aspects of well-being are there?Social and economic variables like money, education, work, neighborhood safety, and social supports can have a big impact on how well and how long we live. Our capacity to make healthy decisions, pay for housing and other necessities, control our stress, and other things are all impacted by these elements.
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An order that becomes a market order when it sells at or below (or at or above) a particular price is called a stop order. A customer opens a new margin account and her initial transaction is a short sale of 100 shares of XYZ at $16.
After a round-lot trades at or through a particular price, a particular type of stop order becomes a market order. ---- True
When a round-lot trades at or through a particular price, a stop-limit order, which is a variant of a stop order and requires that the limit price be met, is activated.
What's a stop order?A stop order is an instruction to buy or sell stock at the going rate (the "stop price") when a stock trades at or through a certain price. If the stock reaches the stop price, the order becomes a market order and is filled at the next available market price.
After a round-lot trades at or through a particular price, a particular type of stop order becomes a market order. When a round-lot trades at or through a particular price, a stop-limit order, which is a variant of a stop order and requires that the limit price be met, is activated.
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Which of the following actions by the Fed would cause interest rates to fall? O A. Raising the discount rate O B. Raising the reserve requirement O C. Purchasing bonds from commercial banks O D. None of the above
The Fed's open market acquisition of sovereign bonds openness and transparency for bonds, having caused bond prices to rise and short-term interest rates to fall (D).Is the right option.
The Fed's international market sale of government securities has a propensity to The supply curve for bonds transitions out to the right as the Fed sells securities, implying an increase in bond supply. Bond prices will fall as a result of this.
However, because bond prices are inversely proportionate to bond interest rates, as bond prices fall, bond interest rates go up.
The Fed could indeed decrease interest rates by purchasing debt securities in the open market in exchange for newly created financial institutions.
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gains that are unusual and infrequent should be reported as a direct increase to which of the following?
Gains that are unusual and infrequent should be reported as a direct increase in Other Comprehensive Income (OCI) in the financial statements.
Other Comprehensive Income (OCI) is a category of income that appears on the balance sheet, but is separate from net income. It represents certain changes in equity that are not included in net income such as foreign currency translation adjustments and unrealized gains or losses on investments. Gains that are unusual and infrequent, meaning that they are not expected to occur regularly and are not a part of the company's normal operations, should be reported separately in the OCI section of the balance sheet rather than being included in the net income. This is done to provide more accurate and informative financial statements and to enable the users of these statements to understand the nature of the company's financial performance and position.
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an unlevered dcf valuation will derive the implied enterprise value of a business, but many times we want to know the equity value per share. please select the appropriate steps in calculating the equity value per share from an unlevered dcf.
EV = NPV(r, an array of FCFs for years 1–n) + TV/(1+r)n. Calculate the EV for a variety of terminal multiples and perpetuity growth rates to demonstrate the DCF analysis's sensitivity to these critical inputs.
What is DCF valuation?Discounted cash flow (DCF) valuation is a type of financial model that uses future cash flows to determine whether an investment is worthwhile. A DCF model is based on the idea that a company's value is determined by how well it can generate future cash flows for its investors.
A discounted cash flow valuation is used to determine whether a long-term investment is worthwhile. In investment banking, for example, a DCF valuation is used to determine whether a potential merger or acquisition is worthwhile. DCF valuation is also used in real estate and private equity.
Discounted cash flow (DCF) is a valuation method that uses expected future cash flows to estimate the value of an investment.
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When a manufacturer produces several products that are substitutes for one another and others that compliment these products, it should use:A. Price LiningB. Product-line pricingC. Dynamic PricingD. Yield Management
The correct answer to the given question about manufacturer produces substitutes is option b) Product Line Pricing.
To create different perceived quality levels in consumers' eyes, product line pricing entails dividing goods and services into cost groups. Price lining and product line pricing are both terms that relate to the same procedure. Product line pricing aims to optimize revenues by positioning new items at the highest price point with the greatest number of features or the most cutting-edge individual characteristics. You'll also continue to offer a base item on sale as a less expensive substitute. A product line is, in its most basic sense, a collection of linked items that differ from one another in terms of features and cost.
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identify the type of accounting associated with each type of report: managerial, financial, tax, combination as needed. a) budget for internal use by management
b) tax return for state income taxes
c) audited financial statements
d) special reports for regulators of a public utility
a) budget for internal use by management
b) tax return for state income taxes
c) audited financial statements
d) special reports for regulators of a public utility Combination as needed.
What is the straightforward definition of budget?A budget is a stimulus package based on income and expenses. In other words, it's a projection of how much money you'll earn and spent over a specific time frame, like such a month or a year. (Or, if you're keeping track of the money coming inside and going out of your entire household, that's a household budget.)
What does it mean to have a budget?Budget is derived from the Old French bougette, which means "small sack." The British chancellor of the Exchequer is referred to as "opening" his budget, or container of documents and accounts, when he makes his yearly financial statement.
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A bucket in consumer decision making is ________.
A bucket in consumer decision making is cognitive, habitual, and affective. So all are correct.
What exactly is a consumer?A consumer is a person who uses a good or service. The terms customer and consumer are frequently used synonymously. This is not totally true. A client is a person or business that makes purchases of goods or services. They may or may not eat them. Any individual or group who uses a product or service for the last time is referred to be a consumer. Here are a few illustrations: a client who pays a hairstylist to trim and style their hair. a business that purchases a printer for business purposes.
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True/FalseThe Full Disclosure accounting concept is applied when a company always prepares financial statements at the end of each monthly fiscal period.
The Full Disclosure accounting concept is applied when a company always prepares financial statements at the end of each monthly fiscal period.--- False.
What is the principle of full disclosure?The idea that a company should include all relevant information in its financial statements is known as the "full disclosure principle." This is done so that people who read the statements are better prepared to make important decisions about the company.
The full disclosure principle must be adhered to in order to minimize information asymmetry between the company's management and its current shareholders, debtors, or other third parties. ensures that any information gaps do not deceive those who read and use a company's financial information.
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i am custodian for my sons reneficiary traditional ira who is liable for the taxes and when shoud taxes be paid
I am custodian for my son's beneficiary traditional IRA is liable for the taxes and taxes should be paid when amount exceeds $4000.
How Are IRA Withdrawals Taxed?
Depending on the IRA type, there are different tax rules for withdrawals from individual retirement accounts (IRAs). For instance, withdrawals from a regular IRA will always be taxed. However, if you fulfil certain qualifications, there is no tax owed when you take contributions or gains from a Roth IRA.
Traditional IRAs provide for tax-deductible contributions, tax-free growth of profits, and taxable withdrawals. Qualified withdrawals from a Roth IRA are tax-free, profits grow tax-free, and contributions are not deductible.Because Roth IRA contributions are made using after-tax funds, withdrawals from them are tax and penalty-free at any time and for any reason.To learn more about IRA Withdrawals
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which of the following divisions would you invest in cautiously? railroad loading shipping freight forwarding cargo inspection
It is important to be cautious when investing in any of the divisions related to rail loading, forwarding and cargo control. These industries are highly regulated and require a lot of knowledge and experience to be successful.
Rail loading and ship forwarding involve the movement of goods, which can be unpredictable and have their own risks. Cargo inspection is important to ensure goods are in good condition and safe for transport, but is also highly regulated and requires a certain level of expertise. All of these industries can be profitable, but they require a lot of due diligence and research to make sure the investment is a good one. It is important to understand the risks associated with these types of investments and have a solid plan to address them.
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simply divide the interest rate by the number of ____ per year to find the interest rate per period.
simply divide the interest rate by the number of annual percentage rate (APR) per year to find the interest rate per period. So answer is annual percentage rate (APR) .
What is the annual percentage rate (APR)?An annual percentage rate, or APR, is a figure that expresses the entire cost of borrowing money each year as a percentage of the loan's principle. The APR on a loan or credit card seeks to provide a comprehensive picture of how much borrowing money will cost.
The current average APR for credit cards is around 16%, which is considered to be a respectable APR. Only credit cards with higher APRs might be available to those with poor credit. Some consumers with good credit may be able to obtain cards with APRs as low as 12%.
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FILL IN THE BLANK Entrepreneurs take on the challenges and risks of starting a business because it offers the freedom to make their own ______ , opportunities, and wealth.
Answer:
DECISIONS /CHOICES
Explanation:
Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management. Which of the following is NOT something he is likely to have learned at that seminar?
A. Some aspects of quality are difficult to measure because they depend on customers' judgments.
B. Quality is primarily the responsibility of operations management.
C. Quality results from design as well as operations and delivery.
D. Cross-functional teams are important in TQM decision making.
E. He is likely to have learned all of these things.
As Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management, thing which he had not learned at seminar is that Quality is primarily the responsibility of operations management.
Total quality management (TQM) is a method to management that focuses on long-term success through client satisfaction. In a TQM initiative, every employee of a firm takes part in enhancing their workplace's processes, goods, and services. TQM can be summed up as a management framework for a client-centered business that incorporates all staff members in ongoing development. To incorporate the discipline into the organization's culture and activities, it makes use of plan, data, and effective communications. TQM can have a significant and positive impact on organizational and personnel development. Companies can create and preserve cultural norms that produce long-term success for both clients and the firm by having all workers concentrate on quality assurance and continual improvement. The quality-centered approach of TQM makes it easier to spot employee skill gaps and provide the appropriate coaching, training, or education to fill them.
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the following balance sheet data are for better plumbing contractors, inc., a corporation, at may 31: accounts payable $9,900 common stock $101,000 cash 15,700 retained earnings ? equipment, net 100,000 notes payable 31,000 supplies 28,500 accounts receivable 9,200 land 31,000
42,500 is the retained earnings. Retained earnings can be calculated with the help of following formula:
Retained earnings = Total Assets - Total Liabilities & Equity
Total Assets = Cash + Equipment, net + Supplies + Accounts Receivable + Land
= 15,700 + 100,000 + 28,500 + 9,200 + 31,000
= 184,400
Total Liabilities & Equity = Accounts Payable + Common Stock + Notes Payable
= 9,900 + 101,000 + 31,000
= 141,900
Therefore, Retained Earnings = 184,400 - 141,900
= 42,500
The amount of profit a business keeps after paying all of its direct and indirect expenses, income taxes, and dividends to shareholders is known as retained profits. This is the percentage of the company's equity that may be utilised, for example, to fund the purchase of new machinery, research and development, and marketing.
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