Answer:
0.0176
0.0946
0.0328
0.0235
0.1049
Explanation:
The formular that is used to calculate the real rate of return is
(1+return)/(1+inflation) -1
The real rate of return for U.S. Government T-bills 3.80% can be calculated as follows
Inflation rate = 2%
Return= 3.80%
Real rate of return= (1+3.80/100) / (1+2/100)
= (1+0.038)/(1+0.02) -1
= 1.038/1.02 -1
= 1.0176 -1
= 0.0176
The real rate of return for large cap common stock 11.65% can be calculated as follows
Inflation rate= 2%
Return= 11.65%
Real rate of return= (1+11.65/100)/(1+2/100)-1
= (1+0.1165)/(1+0.02)-1
= 1.1165/1.02 -1
= 1.0946 -1
= 0.0946
The real rate of return for long term corporate bond 5.35% can be calculated as follows
Inflation rate= 2%
Return= 5.35%
Real rate of return= (1+5.35/100)/(1+2/100) -1
(1+0.0535)/(1+0.02) -1
1.0535/1.02 -1
= 1.0328 -1
= 0.0328
The real rate of return for long term government bond 4.40%
Inflation= 2%
Return= 4.40%
Real rate of return= (1+4.40/100)/(1+2/100) -1
= (1+0.044)/(1+0.02) -1
= 1.044/1.02 -1
= 1.0235-1
= 0.0235
The real rate of return for small capitalization common stock 12.70% can be calculated as follows
Inflation rate= 2%
Return= 12.70%
Real rate of return= (1+12.70/100)/(1+2/100) -1
= (1+0.127)/(1+0.02) -1
= 1.127/1.02 -1
= 1.1049-1
= 0.1049
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.
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.
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.
Erkkila Inc. reports that at an activity level of 7,100 machine-hours in a month, its total variable inspection cost is $424,730 and its total fixed inspection cost is $183,446. What would be the average fixed inspection cost per activity unit at an activity level of 7,400 machine-hours in a month
Answer:
Average fixed cost per unit= $24.79
Explanation:
Giving the following information:
The total fixed inspection cost is $183,446.
Activity units= 7,400 machine-hours
To calculate the average fixed inspection cost, we have to divide the total fixed inspection cost by the actual number of activity units.
Average fixed cost per unit= 183,446/7,400
Average fixed cost per unit= $24.79
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
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.
Henrique Correa's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive. Day-old cakes are virtually always sold, but at a 50% discount off the regular $ price. The cost of baking a cake is $, and demand is estimated to be normally distributed, with a mean of and a standard deviation of . What is the optimal stocking level? Refer to the standard normal tableLOADING... for z-values. The optimal stocking level for the bakery is nothing cakes (round your response to the nearest whole number).
Answer:
27
Explanation:
The computation of the optimal stocking level for the bakery is shown below:
Given that
Cost = c = $7
Selling price = p = $ 10
salvage value = s = $ 5
Mean = 25
Standard deviation = [tex]\sigma[/tex]= 8
Now based on the above information
underage cost = Cu = p-c = $10 - $7 = $3
And,
overage cost = Co = c-s = $7 - $5 = $2
So,
[tex]\frac{P\leq C_{u}}{(C_{u}+C_{o})}\\\\\frac{P\leq3}{(3+2)}[/tex]
= 0.6
Now use normsinv() function in excel
So,
The Z value for the probability 0.6 is 0.2533
Now finally
The optimal stocking level is
[tex]=\mu +z\sigma[/tex]
= 25 + 0.2533 × 8
= 27.02
= 27
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
You are considering investing in a security that matures in 10 years with a par value of $1,000. During the first five years, the security has an 8 percent coupon with quarterly payments (i.e., you receive $20 a quarter for the first 20 quarters). During the remaining five years the security has a 10 percent coupon with quarterly payments (i.e., you receive $25 a quarter for the second 20 quarters). After 10 years (40 quarters) you receive the par value. Another 10-year bond has an 8 percent semiannual coupon (i.e., the coupon payment is $40 every six months). This bond is selling at its par value, $1,000. This bond has the same risk as the security you are thinking of purchasing. Given this information, what should be the price of the security you are considering purchasing
Answer:
$1,060.75
Explanation:
the yield to maturity of the second bond is to 4% semiannual or 8.16% effective annual rate.
so we have to calculate the quarterly interest rate that yields an effective annual rate of 8.16%:
0.0816 = (1 + i)⁴ - 1
1.0816 = (1 + i)⁴
⁴√1.0816 = ⁴√(1 + i)⁴
1.0198 = 1 + i
i = 0.019804 = 1.9804%
now we must discount the first bond using that effective interest rate:
PV of face value = $1,000 / (1 + 4%)²⁰ = $456.39
PV of first 20 coupon payments = $20 x 16.38304 (PV annuity factor, 1.9804%, 20 periods) = $327.66
now we must find the value of the last 20 coupon payments but at the end of year 5 = $25 x 16.38304 = $409.58. Then we calculate the PV = $409.58 / (1 + 4%)¹⁰ = $276.70
the bond's current market value = $456.39 + $327.66 + $276.70 = $1,060.75
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.
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
You are the manager of a firm that receives revenues of $50,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -3, and the cross-price elasticity of demand between product Y and X is 1.6. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent
Answer:
$-120
Explanation:
Own Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
-3 = percentage change in quantity demanded / 2%
percentage change in quantity demanded = --3 x 2% = -6%
The quantity demanded of good X would fall by 6%
Revenue would change by -0.06 x $50,000 = -$3000
Cross price elasticity of demand measures the responsiveness of quantity demanded of good Y to changes in price of good X.
1.6 = percentage change in quantity demanded of good Y / 2%
percentage change in quantity demanded of good Y = 1.6 x 2% = 3.2%
The quantity demanded of good Y would increase by 3.2%
Revenue would change by 0.032 x $90,000 = $2880
Total change = -$3000 + $2880 =-$120
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
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.
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.
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.
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.
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy- Days Electrical Costs January 3,030 $ 9,044 February 3,080 $ 9,234 March 3,980 $ 11,913 April 1,630 $ 6,194 May 1,270 $ 4,826 June 2,110 $ 8,018 July 650 $ 2,470 August 3,690 $ 11,552 September 1,960 $ 7,448 October 4,410 $ 12,998 November 1,600 $ 6,080 December 2,230 $ 8,474 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount) 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month
Answer:
1.Occupancy days $3,760
Electrical costs $10,528
Variable cost=2.80
Fixed cost=$650
2. Seasonal factors
Systematic factors
Number of days
Explanation:
1.Calculation using high and low method for both Occupancy days and Electricity cost
Occupancy Electrical
Days Costs
High activity level 4,410 12,998
Low activity level 650 2,470
Change 3,760 10,528
Calculation for Variable cost of electricity per occupancy-day.
Using this formula
Variable cost= Electricity cost/Occupancy days
Let plug in the formula
Variable cost=10,528/3,760
Variable cost=2.80
Calculation for Fixed cost of electricity per month
Fixed cost=2,470-(650*2.80)
Fixed cost=2,470-1,820
Fixed cost=$650
2. Factors that are likely to affect the variation in electrical costs from month to month will include the following:
Seasonal factors
Systematic factors
Number of days
Seasonal factors can either be winter or summer.
Systematic factors include either having guests, To switch off fans as well as lights.
Number of days are days that are present in a month.
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.
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%
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
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.
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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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.
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
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.
Match the below sentences to describes a relationship between two variables that has been interpreted incorrectly. a. People become tired when they wear athletic clothes. b. People who visit the dentist are more likely to get a cavity. c. Drinking a lot of water leads to sunburn. d. Cars that mechanics work on regularly are more likely to break down. 1. Omitted variable+ 2. Reverse causation+
Answer:
a. People become tired when they wear athletic clothes - No relationship
b. People who visit dentist are likely to get cavity - Reverse causation
c. Drinking lot of water causes sunburn - No relationship
d. Cars that mechanics work on are more likely to break down - Reverse causation
Note: The No relationship represents Omited Variable.
The following information was drawn from Gore, Inc.’s statement of cash flows. (1) $2,000 net cash outflow from investing activities. (2) $3,000 net cash inflow from financing activities. (3) $6,000 net increase in the cash balance.Based on this information, the amount of cash flow from operating activities appearing on the statement of cash flows must be a
Answer:
$5,000 net cash inflow
Explanation:
The computation of the cash flow from operating activities is shown below:
As we know that
Increase in cash = Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities
$6,000 = Cash flow from operating activities - $2,000 + $3,000
So, the cash flow from operating activities is
= $6,000 - $1,000
= $5,000 net cash inflow
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
