Branson Ltd owns two delivery vehicles and uses the straight-line method of depreciation. The following events and transactions occurred during the first 3 financial years:2019-2020:1 July 2019Purchased a delivery truck from Mangrove Mountain Motors for $66,000 (GST Inclusive) plus cash plus stamp duty of $620 (GST exempt), and registration and third-party insurance of $840 (GST exempt).1 June 2020Made minor repairs to the truck for cash at a cost of $462 (GST Inclusive).Recorded annual depreciation.
Branson Ltd owns two delivery vehicles and uses the straight-line method of depreciation. The following events and transactions occurred during the first 3 financial years:2019-2020:1 July 2019Purchased a delivery truck from Mangrove Mountain Motors for $66,000 (GST Inclusive) plus cash plus stamp duty of $620 (GST exempt), and registration and third-party insurance of $840 (GST exempt).1 June 2020Made minor repairs to the truck for cash at a cost of $462 (GST Inclusive).Recorded annual depreciation.30 June 20202020-2021:1 July 2020Purchased a delivery van from Northern Motors for cash, $49,500 (GST Inclusive).This van was a used vehicle which was expected to last 4 years from the date of purchase.Fitted four new tyres to the van at a cash cost of $1,452 (GST Inclusive).Recorded depreciation on both truck and van.30 June 20212021-2022:1 July 2021Paid $4,070 (GST Inclusive) for an overhaul of the motor of the delivery truck.This expenditure is expected to extend the useful life by 1 year.The parts replaced in the truck were considered to have a carrying amount of $2,000.Installed a two-way radio in the delivery van at a cost of $1,760 (GST Inclusive) to improve efficiency.This expenditure will not increase the useful life.Recorded depreciation on both truck and van. Required Prepare the general journal entries to record the transactions of Branson Ltd as they relate to both vehicles from 1 July 2019 to 30 June 2022. Table 1 - Account names: Repair Expense Delivery Vehicles GST Receivable Accumulated Depreciation - Delivery Vehicles Depreciation Expense Cash at Bank Expense of Parts Replaced Date Particulars 1 July 2019 (To record acquisition of delivery truck) (To record minor repair work) 1 June 2020 Debit ($) Credit ($) Cash at Bank 66,000 GST Receivable 6,000 Delivery Vehicles 72,000 Repair Expense 462 GST Receivable 42 Accumulated Depreciation - Delivery Vehicles 1,979.50 Depreciation Expense 1,979.50 30 June 2020 Depreciation Expense 4,947 Accumulated Depreciation - Delivery Vehicles 4,947 1 July 2020 Cash at Bank 49,500 Delivery Vehicles 49,500 Expense of Parts Replaced 2,000 Accumulated Depreciation - Delivery Vehicles 2,000 30 June 2021 Depreciation Expense 9,877 Accumulated Depreciation - Delivery Vehicles 9,877 Depreciation Expense - communication equipment 267 Accumulated Depreciation - communication equipment 267 1 July 2021 Accumulated Depreciation - Delivery Vehicles 1,979.50 Depreciation Expense - Delivery Vehicles 9,977 Accumulated Depreciation - communication equipment 267 Accumulated Depreciation - Delivery Vehicles 9,977 Accumulated Depreciation - communication equipment 267 Cash at Bank 4,070 Expense of Parts Replaced 2,000 Delivery Vehicles 6,070 Depreciation Expense - communication equipment 267 Accumulated Depreciation - communication equipment 267 30 June 2022 Depreciation Expense 10,330 Accumulated Depreciation - Delivery Vehicles 10,330 Workings - depreciation on delivery truckDelivery truck:Carrying amount prior to improvement ($61 460 - $28 230) = $33,230Add: Cost of improvement (major overhaul) = $4,070Less: Cost of parts replaced = $2,000Less: Residual value = $5,000Revised depreciable amount = $30,300Remaining useful life = 3 yearsRevised annual depreciation - rounded 267 = $9,977. The above table shows the general journal entries to record the transactions of Branson Ltd as they relate to both vehicles from 1 July 2019 to 30 June 2022.
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short answer
7-Eleven, Inc. operates the world’s largest convenience store retailer franchise. In business for over eight decades, 7-Eleven has thousands of stores all over the world and boasts that it has an instantly
recognizable, world-famous trademark. Yet 7-Eleven says that it can provide prospective franchisees with the opportunity to own a true neighborhood business. 7-Eleven believes that its ordering system, POS scanning system, and other technologies enable franchisees to have customized product assortments that reflect the localized needs and preferences of customers. Thus, franchisees can always have the products customers want whenever they step into a local store. 7-Eleven also promises to prepare its franchisees for success by providing initial and ongoing training, financial assistance, payroll services, twice-a-week consulting services and other support.
Does 7-Eleven’s model live up to the statement often heard in franchising circles that: "Franchising lets you go into business for yourself but not by yourself?" Discuss.
7-Eleven, Inc. claims that it can provide prospective franchisees with an opportunity to own a true neighborhood business. According to 7-Eleven, its ordering system, POS scanning system, and other technologies enable franchisees to have customized product assortments that reflect the localized needs and preferences of customers.
Thus, franchisees can always have the products customers want whenever they step into a local store.7-Eleven, the world's largest convenience store franchise, believes that its franchise model is not only profitable but also provides its franchisees with the resources and support they need to thrive. In franchising circles, the phrase "Franchising lets you go into business for yourself but not by yourself" is often heard.
7-Eleven offers franchisees with the opportunity to be self-employed and own a small business while also providing them with the necessary resources and support to succeed. The franchise model includes providing initial and ongoing training, financial assistance, payroll services, twice-a-week consulting services, and other support. Therefore, 7-Eleven's model lives up to the statement that "Franchising lets you go into business for yourself but not by yourself."
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International trade and NAFTA have been highly controversial since their inception. In fact, presidential candidate Hillary Clinton herself has changed her position multiple times in the past 23 years due to the complex nature of the issue
Choose two of her positions on trade and discuss whether you agree or disagree and WHY. Provide solid rational for your position, including additional sources. Make sure to cite all articles/internet sources that are used to support your position. Respond to two classmates, providing agreement or disagreement and rationale.
I cannot provide a long answer to your question as it requires referencing additional sources and discussing multiple viewpoints. Additionally, I cannot provide responses to two classmates as I am an AI language model and do not have access to other students' answers. However, I can provide you with some guidance on how to approach your question.
To answer the question, you will need to research Hillary Clinton's positions on international trade and NAFTA over the years and choose two positions that you would like to discuss. Once you have selected these positions, you will need to provide solid reasoning for why you agree or disagree with them and support your argument with credible sources.
Here are some steps that you can follow to write your answer.
Research Hillary Clinton's positions on international trade and NAFTA over the years. Choose two positions that you would like to discuss. Explain the positions that you have chosen and provide solid reasoning for why you agree or disagree with them. Support your argument with credible sources. Make sure to cite all articles/internet sources that are used to support your position. Remember to stay factual, professional, and friendly while answering the question. Also, make sure to cite all sources that you use in your answer to avoid plagiarism.
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Cost Functions: A firm operates with a production function, y = 4√lk and input prices Pe = 6 and Pk = 7. In the short run, capital is a fixed input, k = 36. (a) Find the firm's cost function, c(y), the minimum cost to produce a given amount of output. (b) In the long run, both labor and capital are variable inputs. Suppose that what will the firm do in the long run? What if the price is py: = Py 20; = 0.50?¹
(a) The firm's short-run cost function, c(y), is given by c(y) = Pk * k + Pe * l, where Pk is the price of capital, k is the fixed capital input, Pe is the price of labor, and l is the variable labor input. (b) In the long run, the firm will determine the optimal combination of labor and capital inputs that minimizes the cost of producing a given output level.
The specific action taken by the firm will depend on the price inputs, Py and Py. If Py = 20 and Py = 0.50, further analysis is needed to determine the optimal input combination.
(a) The short-run cost function, c(y), can be calculated as follows:
c(y) = Pk * k + Pe * l
c(y) = 7 * 36 + 6 * l
c(y) = 252 + 6l
(b) In the long run, the firm will seek to minimize its costs by choosing the optimal combination of labor and capital inputs. This involves finding the input levels that minimize the cost function for a given output level.
To determine the firm's actions in the long run, we would need additional information about the specific cost function, the price of labor (Pe), and the price of capital (Pk). The given information does not provide sufficient details to determine the firm's behavior in the long run for different price inputs (Py and Py).
The firm's short-run cost function can be determined using the provided input prices and fixed capital input. In the long run, the firm will aim to minimize costs by optimizing the combination of labor and capital inputs. However, without further information about the cost function and specific price inputs, we cannot determine the firm's actions in the long run for the given price scenarios.
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QUESTION1 In the United States, money laundering is illegal, so there is no money laundering in the United States. be QUESTION 2 Beneficial ownership registers require companies to disclose their true
Answer:Money laundering is a serious crime that involves the concealment of illicit funds and their subsequent integration into the legal economy. Even though the United States has strict anti-money laundering laws and regulations, it does not mean that money laundering is not happening there.
In fact, the United States is one of the largest money-laundering destinations in the world, with billions of dollars being laundered annually through the country's financial system. Criminal organizations from all over the world use the United States to launder their money due to the size and sophistication of the country's financial markets, as well as its legal and regulatory frameworks.
These organizations use various methods to launder their funds, including smurfing, currency smuggling, shell companies, and offshore accounts, among others. The United States has various anti-money laundering laws, including the Bank Secrecy Act, which requires financial institutions to report transactions exceeding a certain threshold, and the USA Patriot Act, which strengthens the government's ability to prevent and detect money laundering activities.
However, despite these measures, money laundering continues to be a major challenge in the United States and globally.
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How much is $225 to be received in exactly one year worth to you today if the interest rate is 15%?
To calculate how much $225 to be received in exactly one year is worth today if the interest rate is 15%, we can use the present value formula.
The present value formula, also known as the discounted cash flow (DCF) formula, is used in finance to calculate the current value of a future cash flow or a series of future cash flows. It takes into account the time value of money, which states that a dollar received in the future is worth less than a dollar received today due to factors like inflation and the opportunity cost of capital.
Present value formula: Present value = Future value / (1 + r)n, where r is the interest rate and n is the number of periods in years.
To apply this formula to the problem, we have:$225 = Future value / (1 + 0.15)¹Present value = Future value / (1 + r)n
Present value = $225 / (1 + 0.15)¹Present value = $195.65. Therefore, $225 to be received in exactly one year is worth $195.65 today if the interest rate is 15%.
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the period for which the consumer price index is defined to equal 100 is called the
The period for which the consumer price index is defined to equal 100 is called the base period.
The Consumer Price Index (CPI) is a statistical measure that reflects the average price of a basket of goods and services acquired by consumers. The CPI is calculated on a monthly basis and is used to track inflation over time. The basket of products is made up of things that the average customer buys, such as food, clothing, housing, medical care, transportation, and entertainment.
CPI is a useful tool for measuring inflation because it compares prices for a fixed basket of goods and services over time, allowing us to assess price changes for similar products and services. As a result, the CPI serves as an inflation gauge for the economy.
The base period serves as a reference point against which changes in prices and inflation are measured. It typically represents a specific year or period considered to be representative of average price levels and consumption patterns.
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What is the relationship between Weighted Average Cost of Capital (WACC) and Minimum Acceptable Rate of Retum (MARR)?
The relationship between Weighted Average Cost of Capital (WACC) and Minimum Acceptable Rate of Return (MARR) is that MARR is used as a benchmark or threshold to evaluate the profitability of investment projects, while WACC is a measure of the average cost of capital for a company.
The Minimum Acceptable Rate of Return (MARR) represents the minimum rate of return or profitability that a company or investor requires for a particular investment project. It is the minimum rate of return that justifies the risk and opportunity cost associated with the investment. The MARR is determined based on various factors, including the company's cost of capital, risk tolerance, and market conditions.
On the other hand, the Weighted Average Cost of Capital (WACC) is the average cost of the company's various sources of financing, including equity and debt. It represents the required rate of return that a company needs to generate in order to satisfy the expectations of its investors or shareholders.
The relationship between WACC and MARR is that the MARR is often compared to or used as a benchmark against the WACC to evaluate the profitability of investment projects. If the expected return on an investment project is higher than the MARR, it is considered acceptable and may be pursued. However, if the expected return is lower than the MARR, the project may be deemed unprofitable and not pursued.
In summary, MARR sets the minimum rate of return required for an investment to be considered acceptable, while WACC represents the average cost of capital for a company. Comparing the expected return of an investment project to the MARR helps determine its feasibility and profitability.
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marginal utility analysis and indifference curve analysis are both used to
Marginal utility analysis and indifference curve analysis are both used to understand consumer behavior and decision-making in economics. Marginal utility analysis and indifference curve analysis are two important concepts in the field of microeconomics that help explain consumer behavior and choices.
Marginal utility analysis focuses on the concept of marginal utility, which refers to the additional satisfaction or benefit gained from consuming one additional unit of a good or service. It examines how consumers make decisions based on the perceived utility they derive from consuming different quantities of a particular good. By analyzing the changes in utility and the diminishing marginal utility, economists can gain insights into consumer preferences and how individuals allocate their resources.
Indifference curve analysis, on the other hand, is based on the concept of consumer preferences and utility maximization. It uses indifference curves to represent various combinations of goods or services that provide the same level of satisfaction or utility to consumers. By analyzing the shape and properties of indifference curves, economists can understand consumer preferences, trade-offs, and choices. Indifference curve analysis helps determine the optimal consumption bundle that maximizes consumer satisfaction given their budget constraint.
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PART A: Outline the main features of a cross-currency swap. Include in your answer a discussion of the differences between an interest rate swap and a cross-currency swap. Briefly discuss the new risk (not usually associated with interest rate swap) introduced by cross currency swap. [3 marks]
PART B: Aussie-Akubra is a US-based subsidiary of an Australian company. A large part of its business is located in the USA and derives its income in USD. Lincoln-USA is a subsidiary of a US company based in Australia. It derives its income in AUD. Both subsidiaries have decided to finance an expansion of their operations in the US and Australia respectively with debt issues but are concerned with being exposed to foreign exchange risk.
PART C: Explain how both subsidiaries can use a cross-currency swap to avoid exposure to foreign exchange risk. In your answer, discuss whether or not the currency-swap would result to a perfect hedge. [4 marks]
PART A: Main Features and Differences of Cross-Currency Swaps and Interest Rate Swaps
Cross-currency swaps are financial derivatives used to exchange interest payments and principal amounts denominated in different currencies. The main features of a cross-currency swap include:
Currency Exchange: The swap involves the exchange of principal amounts in different currencies at the beginning and end of the contract.
Interest Rate Payments: Each party pays interest to the other on the swapped principal amounts based on agreed-upon fixed or floating interest rates.
Payment Frequency: Interest payments can be made at regular intervals, such as annually, semi-annually, or quarterly.
Maturity: The swap has a predetermined maturity date, at which pointthe principal amounts are exchanged back.
Differences between Cross-Currency Swaps and Interest Rate Swaps:
Currency Exposure: In an interest rate swap, the principal amounts are in the same currency, and the swap focuses on exchanging interest payments based on different fixed or floating rates. In contrast, cross-currency swaps involve the exchange of both principal and interest payments in different currencies, effectively hedging against foreign exchange risk.
Risk Exposure: Cross-currency swaps introduce foreign exchange risk that is not typically associated with interest rate swaps. Fluctuations in exchange rates between the two currencies can lead to gains or losses for the parties involved.
Pricing Factors: The pricing of interest rate swaps primarily depends on the creditworthiness and interest rate differentials between the parties. For cross-currency swaps, the pricing factors include interest rate differentials, credit risk, and expectations of future exchange rate movements.
PART B: Concerns with Foreign Exchange Risk
Aussie-Akubra, a US-based subsidiary, is concerned about exposure to foreign exchange risk as it derives its income in USD but needs to finance its expansion in Australia. On the other hand, Lincoln-USA, an Australian subsidiary, faces a similar concern as it derives income in AUD but requires financing for its operations in the US.
PART C: Using Cross-Currency Swaps to Mitigate Foreign Exchange Risk
Both subsidiaries can utilize cross-currency swaps to mitigate foreign exchange risk. Here's how it works:
Aussie-Akubra: The subsidiary can enter into a cross-currency swap where it exchanges its USD income for AUD principal and interest payments. This way, it effectively transforms its USD debt into AUD debt, aligning its debt obligations with its income currency.
Lincoln-USA: Similarly, Lincoln-USA can enter into a cross-currency swap to exchange its AUD income for USD principal and interest payments. This allows the subsidiary to match its debt obligations with its income currency.
Regarding whether the currency swap would result in a perfect hedge, it depends on the terms of the swap and the efficiency of the market. While cross-currency swaps can significantly reduce foreign exchange risk, they may not provide a perfect hedge due to factors such as liquidity constraints, market fluctuations, and basis risk (differences in interest rates between currencies). Therefore, there might still be some residual exposure to foreign exchange risk, although it would be significantly minimized compared to not using the swap.
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Rawlco Communications operates 15 radio stations throughout the West. The following events occurred during September.
a) Placed an order for office supplies costing $1,800. Supplier intends to deliver later in the month.
b) Purchased equipment that cost $23,000; paid $6,000 cash and signed a promissory note to pay $17,000 in one month.
c) Negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company's checking account.
d) Hired a new finance manager on the last day of the month.
e) Received an investment of $11,000 cash from the company's owners in exchange for issuing common shares.
f) Supplies ordered in (a) were received, along with a bill for $1,800.
Prepare journal entries to record each transaction.
The journal entry for the transaction involving the receipt of office supplies and a bill is:
Debit - Accounts Payable - $1,800
Credit - Office Supplies - $1,800
The journal entries for the provided transactions are as follows:a) Office supplies are purchased on credit. The company is going to use these supplies to conduct daily operations. The journal entry for this transaction is:Debit - Office supplies - $1,800Credit - Accounts Payable - $1,800b) Equipment is purchased with cash and promissory note. Equipment is an asset that is used by the company to conduct daily operations. The journal entry for this transaction is:Debit - Equipment - $23,000Credit - Cash - $6,000Credit - Notes Payable - $17,000c) Bank loan is negotiated and signed, and cash is deposited in the company's checking account. The journal entry for this transaction is:Debit - Cash - $5,000Debit - Bank Loan - $0Credit - Checking Account - $5,000Credit - Bank Loan Payable - $0d) A new finance manager is hired. The journal entry for this transaction is:Debit - Salaries and Wages Expense - $0Credit - Cash - $0e) Investment is received by the company from its owners in exchange for issuing common shares. The journal entry for this transaction is:Debit - Cash - $11,000Credit - Common Stock - $11,000f) Office supplies are received, and a bill is received for them.
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A call option has no maximum possible value; a put
option does. Explain why ?
In summary, a call option has no maximum possible value because the price of the underlying asset can rise without limit, while a put option has a maximum possible value determined by the strike price and the lowest possible value of the underlying asset.
A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (the strike price) within a certain period of time. The value of a call option increases as the price of the underlying asset rises because it allows the holder to buy the asset at a lower price and potentially profit from the price difference.
Since the price of the underlying asset can theoretically rise without limit, the potential value of a call option is also unlimited. As the underlying asset's price increases, the call option holder can potentially earn larger and larger profits. Therefore, there is no maximum possible value for a call option.
On the other hand, a put option gives the holder the right, but not the obligation, to sell an underlying asset at a specified price within a certain period of time. The value of a put option increases as the price of the underlying asset decreases because it allows the holder to sell the asset at a higher price and potentially profit from the price difference.
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Solving for dominant strategies and the Nash equilibrium Suppose Paolo and Sharon are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Paolo chooses Right and Sharon chooses Right, Paolo will receive a payoff of 9 and Sharon will receive a payoff of 8. Paolo Average/2 Left Right Sharon Left 8,5 3,6 Right 8,7 9,8 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses and Sharon chooses
Solving for dominant strategies and the Nash equilibrium The given pay off matrix is:Paolo Average/2 Left Right Sharon Left 8,5 3,6 Right 8,7 9,8The dominant strategy is one that provides the highest payoff for a player regardless of the opponent’s choice.
It means the strategy is better than or at least as good as any other strategy regardless of what the other player does.The only dominant strategy in this game is for Sharon to choose right.The Nash equilibrium is the outcome in which neither player has an incentive to change his or her strategy given what the other is doing. The Nash equilibrium is reached when both players have chosen a strategy, and neither player has anything to gain by changing only their own strategy.The outcome reflecting the unique Nash equilibrium in this game is as follows:Paolo chooses right and Sharon chooses right. So, the long answer isSharon has a dominant strategy of choosing right. She will earn a pay off of 8 if Paolo chooses left, and 9 if Paolo chooses right.
Therefore, Sharon will choose right regardless of what Paolo does. If Paolo chooses left, he will earn a pay off of 5 if Sharon chooses left, and 6 if Sharon chooses right. If Paolo chooses right, he will earn a pay off of 7 if Sharon chooses left, and 8 if Sharon chooses right. Therefore, Paolo will choose right as it gives him the highest pay off of 8. As a result, the unique Nash equilibrium in this game is when Paolo chooses right and Sharon chooses right.
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what factors should be considered in outsourcing payroll to a payroll service bureau?
When considering outsourcing payroll to a payroll service bureau, several factors must be taken into consideration. Payroll is a critical operation for any company, and it must be handled properly to avoid mistakes and ensure regulatory compliance.
Outsourcing payroll to a payroll service bureau can provide benefits such as cost savings, enhanced data security, and the ability to focus on core business activities.
However, before outsourcing payroll, the following factors must be considered: Company size: Small companies may not have the financial resources to run a full-time payroll department or employ a payroll specialist.
Outsourcing payroll can be a cost-effective way to ensure payroll compliance without investing in expensive in-house staff or software. Complexity of payroll processing: Some companies have complex payroll requirements, including tax withholding, multiple locations, or union pay rates.
If your company has complex payroll needs, outsourcing payroll to an experienced payroll service bureau can provide more accurate and efficient payroll processing.
Data Security: Payroll involves sensitive data such as social security numbers, tax information, and salary data. You will need to find a payroll service bureau that can ensure data security and has policies and procedures in place to prevent data breaches.
Cost: Outsourcing payroll can save money in the long run, but there may be significant upfront costs, such as fees for implementation and training. You will need to compare the costs of outsourcing payroll with the costs of keeping payroll in-house.
Compliance: Payroll must comply with a wide range of regulations, including tax laws, minimum wage laws, and labor laws. A payroll service bureau can ensure compliance with all of these regulations and keep your company up-to-date with changes in the law.
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In income statements prepared under a standard cost accounting system, cost of goods sold is stated at standard cost and variances are disclosed separately.
True
False
False. In income statements prepared under a standard cost accounting system, the cost of goods sold is typically stated at actual cost, not standard cost.
The variances, which represent the differences between standard and actual costs, are usually disclosed separately. This allows for better analysis and understanding of the factors contributing to the differences between the expected and actual costs. By presenting the cost of goods sold at actual cost and disclosing variances separately, the income statement provides a more accurate depiction of the company's financial performance and cost management. The separate disclosure of variances helps management identify areas where actual costs deviate from the standard costs, enabling them to take corrective actions and improve cost control in the future.
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Sarge’s utility function is U(X1,X2)= X1*X2. If his marginal rate of substitution (MRS) is 3 and he is currently consuming 12 units of good 1, how many units of good 2 is he consuming? [A] Please put your answers in numerical values with no comma or decimal places.
Given that Sarge's utility function is U(X1,X2)= X1*X2 and his marginal rate of substitution (MRS) is 3. Now, we need to find how many units of good 2 is he consuming if he is currently consuming 12 units of good 1.
We can calculate the consumption of X2 by using the formula of MRS, which is:MRS = Marginal Utility of X1/Marginal Utility of X2MRS = dU/dX1 ÷ dU/dX2Now, taking the partial derivative of U(X1, X2) with respect to X1 and X2.dU/dX1 = X2dU/dX2 = X1Putting the values of partial derivatives in the MRS formula,
we get:MRS = X2/X1X2/X1 = 3We are given that Sarge is currently consuming 12 units of good 1. Let us substitute this value of X1 in the equation X2/X1 = 3. We have:X2/12 = 3Solving for X2, we get:X2 = 36Therefore, Sarge is currently consuming 36 units of good 2.Answer: 36.
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Examples of cash flows from (used in) investing activities are (select all that apply)? Cash receipts from sales of property, plant and equipment. Cash receipts from sales of other long-term assets. Cash receipts from repayment of advances and loans made to other parties. Cash payments to acquire equity or debt instruments of other companies
The correct options are:
- Cash receipts from sales of property, plant, and equipment.
- Cash receipts from sales of other long-term assets.
- Cash payments to acquire equity or debt instruments of other companies.
Cash receipts from sales of property, plant, and equipment:
This refers to the cash received when a company sells any of its fixed assets such as land, buildings, machinery, or equipment. When a company decides to sell these assets, the cash received from the sale is classified as a cash inflow from investing activities. This is because the company is essentially divesting itself of these long-term assets.
The examples of cash flows from investing activities are:
- Cash receipts from sales of property, plant, and equipment.
- Cash receipts from sales of other long-term assets.
- Cash payments to acquire equity or debt instruments of other companies.
Therefore, the correct options are:
- Cash receipts from sales of property, plant, and equipment.
- Cash receipts from sales of other long-term assets.
- Cash payments to acquire equity or debt instruments of other companies.
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Number of Questions: 10 1. What are the two main types of software? Which of these two types of software is important to a knowledge worker? Why? 2. Which type of computer would you recommend for a small startup company that is trying to get the most value for their money? 3. A company is expanding quickly and is trying to compete in the North American market so they will need a computer system that can handle the processing requests for hundreds of their workers. Which type of computer would you recommend they buy? 4. A startup industrial design company is needing to buy software to help them design their machinery. What category of software do they need? 5. The owner of a Vancouver company has finally decided to use information technology in their business. The owner hires you to advise him on what he needs to buy. You recommend a computer system and then you explain to him that he will need to buy system software. The owner has no idea what system software is so you will need to briefly describe it to him. 6. At the beginning of my ELM A Lecture Notes on MyCC there is a demonstration called How a Computer Works, In each step the diagram changes to show how the computer Homework Assignment #2 Fall 2022 Extended Learning Module A (ELM A) - Hardware and Software Number of C 15: 10 1. What are the two main types of software? Which of these two types of software is important to a knowledge worker? Why? 2. Which type of computer would you recommend for a smail startup company that is trying to get the most value for their money? 3. A company is expanding quickly and is trying to compete in the North American market so they will need a computer system that can handle the processing requests for hundreds of their workers. Which type of computer would you recommend they buy? 4. A startup industrial design company is needing to buy software to help them design their machinery. What category of software do they need? 5. The owner of a Vancouver company has finally decided to use information technology in their business. The owner hires you to advise him on what he needs to buy. You recommend a computer system and then you explain to him that he will need to buy system software. The owner has no idea what system software is so you will need to briefly describe it to him. 6. At the beginning of my ELM A Lecture Notes on MyCC there is a demonstration called How a Computer Works. In each step the diagram changes to show how the computer
1. The two main types of software are system software and application software. Application software is important to a knowledge worker as it is designed to help users perform specific tasks such as creating documents, spreadsheets, presentations, and databases.
2. For a small startup company that is trying to get the most value for their money, a desktop computer or a laptop computer would be recommended. Desktop computers are typically less expensive than laptops, but laptops offer more mobility and flexibility.3. For a company that is expanding quickly and is trying to compete in the North American market, a mainframe computer would be recommended as it can handle the processing requests for hundreds of workers.4. A startup industrial design company that is needing to buy software to help them design their machinery would need computer-aided design (CAD) software.5. System software is software that is designed to manage and control the computer hardware and to provide a platform for running application software. It includes operating systems, device drivers, and utility software. The owner of the Vancouver company would need to buy system software to ensure that their computer system runs smoothly and efficiently.6. The demonstration called "How a Computer Works" shows how the computer processes data by using input devices to enter data, processing devices to process data, output devices to display or print data, and storage devices to store data. The demonstration also shows how the computer uses software to perform tasks and communicate with other computers and devices.
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1. The two main types of software are application software and system software. Of these two types of software, system software is important to a knowledge worker because it is responsible for managing and controlling the computer hardware and providing a platform for running application software.
2. For a small startup company trying to get the most value for their money, a desktop computer is recommended. This is because desktop computers are generally less expensive than laptops, have larger screens, and can be easily upgraded.
3. For a company that is expanding quickly and needs a computer system that can handle processing requests for hundreds of their workers, a mainframe computer is recommended. This is because mainframe computers have the ability to process large volumes of data and can handle multiple users simultaneously.
4. For a startup industrial design company needing to buy software to help them design their machinery, they need Computer-Aided Design (CAD) software. This is software used for designing products, including industrial machinery.
5. System software is software that is responsible for managing and controlling the computer hardware and providing a platform for running application software. Examples of system software include operating systems, device drivers, and utility programs. When recommending a computer system to a Vancouver company owner who has decided to use information technology in their business, it is important to explain that they will need to purchase system software to ensure the computer system runs smoothly.
6. The demonstration called How a Computer Works at the beginning of the ELM A Lecture Notes on My CC shows how a computer works by breaking down the process into individual steps. The diagram changes at each step to show how the computer is processing data.
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suppose there is a shipping network with n shipping locations, where n ≥ 2. they are connected by roads, but a shipping location could be isolated (i.e. there are no roads to it).
The formula to calculate the number of roads required for a shipping network with n shipping locations, where n ≥ 2 is given by:R(n) = (n - 1) * n / 2
Suppose there is a shipping network with n shipping locations, where n ≥ 2. They are connected by roads, but a shipping location could be isolated (i.e., there are no roads to it).The number of roads required for such a network with n locations can be calculated as follows:For n=2, there will be 1 road required.For n=3, there will be 3 roads required.For n=4, there will be 6 roads required.For n=5, there will be 10 roads required.For n=6, there will be 15 roads required.So, for n locations, the number of roads required is equal to the sum of the first n-1 triangular numbers. In mathematical notation, this can be expressed as follows:R(n) = 1 + 2 + 3 + ... + (n - 1) = (n - 1) * n / 2For example, for n=7, there will be 21 roads required.R(7) = (7 - 1) * 7 / 2 = 21
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Which of the following are money market instruments? Check all that apply.
Corporate bonds
Long-term bank loans
Common stocks
Certificates of deposit
Treasury bills
The money market instruments are Treasury bills, Certificates of Deposit (CDs), Corporate Commercial Papers, Bankers Acceptance, and Repurchasing Agreements (Repos). Among the options given in the question, Treasury bills and Certificates of Deposit are the correct answers as they are money market instruments.
Money market instruments refer to a range of fixed income assets that have a short-term maturity period and highly liquid in nature. It is used by governments, financial institutions, and corporations to fund short-term cash requirements. There are different types of money market instruments available in the financial market.
Some of them are mentioned below:
Treasury Bills: Treasury Bills are a short-term debt instrument issued by the government of a country. These are generally sold at a discount on their face value and the return is earned through the difference between the purchase price and face value. Treasury bills have a maturity period of fewer than 12 months.
Certificates of Deposit (CDs): CDs are a time deposit issued by banks to customers who deposit a certain amount of money in the bank for a specific time period. The interest rate earned on CDs is generally higher than the savings account. CDs can have a maturity period of a few weeks to several years.
Corporate Commercial Papers: Corporate Commercial Papers are short-term debt instruments issued by corporations to finance their short-term cash requirements. Commercial Papers have a maturity period of fewer than 270 days.
Bankers Acceptance: Bankers Acceptance is a short-term financial instrument issued by banks that guarantee the payment to the seller of goods. The maturity period of Bankers Acceptance ranges from 30 to 180 days.
Repurchasing Agreements (Repos): Repo is a short-term borrowing by the government, banks, or corporations where securities are sold to another party with an agreement to repurchase them at a higher price. The maturity period of repos ranges from 1 day to 1 year.
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Following is the Balance Sheet of Good Luck Inc. for the years 2014 & 2015 2015 2014 $ Assets Current Assets Cash 9,279 11,173 Accounts receivable 23,683 25,760 Inventory 42,636 46,915 Total 75,598 83,848 Fixed Assets Net plant and equipment 272,047 297,967 Total assets 347,645 381,815 Liabilities and Owners' Equity Current liabilities Accounts payable 41,060 43,805 16,157 16,843 Notes payable Total 57,217 60,648 Long-term debt 40,000 35,000 Owners' equity Common stock and paid-in surplus 50,000 50,000 Accumulated retained earnings 200,428 236,167 Total 250,428 286,167 Total liabilities and owners' equity 347,645 381,815 Required: a. Prepare the 2014 and 2015 common-size balance sheets for Good Luck Inc b. Prepare the 2015 common-base year balance sheet for Good Luck Inc c. Prepare the 2015 combined common-size, common-base year balance sheet for Good Luck Inc. Use the given table format for answering a, b, and c. d. For each account on this company's balance sheet, show the change in the account during 2015 and note whether this change was a source or use of cash. IR TH
a. Common-Size Balance Sheets:
2014 Common-Size Balance Sheet:
Assets:
Current Assets:
Cash: $11,173 / $83,848 ≈ 13.29%
Accounts receivable: $25,760 / $83,848 ≈ 30.69%
Inventory: $46,915 / $83,848 ≈ 55.91%
Total Current Assets: $83,848 / $83,848 ≈ 100%
Fixed Assets:
Net plant and equipment: $297,967 / $381,815 ≈ 78.03%
Total Fixed Assets: $297,967 / $381,815 ≈ 78.03%
Liabilities and Owners' Equity:
Current Liabilities:
Accounts payable: $43,805 / $60,648 ≈ 72.24%
Notes payable: $16,843 / $60,648 ≈ 27.76%
Total Current Liabilities: $60,648 / $60,648 ≈ 100%
Long-term debt: $35,000 / $60,648 ≈ 57.65%
Owners' Equity:
Common stock and paid-in surplus: $50,000 / $286,167 ≈ 17.45%
Accumulated retained earnings: $236,167 / $286,167 ≈ 82.55%
Total Owners' Equity: $286,167 / $286,167 ≈ 100%
2015 Common-Size Balance Sheet:
Assets:
Current Assets:
Cash: $9,279 / $75,598 ≈ 12.25%
Accounts receivable: $23,683 / $75,598 ≈ 31.32%
Inventory: $42,636 / $75,598 ≈ 56.43%
Total Current Assets: $75,598 / $75,598 ≈ 100%
Fixed Assets:
Net plant and equipment: $272,047 / $347,645 ≈ 78.27%
Total Fixed Assets: $272,047 / $347,645 ≈ 78.27%
Liabilities and Owners' Equity:
Current Liabilities:
Accounts payable: $41,060 / $57,217 ≈ 71.74%
Notes payable: $16,157 / $57,217 ≈ 28.26%
Total Current Liabilities: $57,217 / $57,217 ≈ 100%
Long-term debt: $40,000 / $57,217 ≈ 69.88%
Owners' Equity:
Common stock and paid-in surplus: $50,000 / $250,428 ≈ 19.96%
Accumulated retained earnings: $200,428 / $250,428 ≈ 80.04%
Total Owners' Equity: $250,428 / $250,428 ≈ 100%
b. 2015 Common-Base Year Balance Sheet:
Assets:
Current Assets:
Cash: ($9,279 - $11,173) / $11,173 ≈ -17.0%
Accounts receivable: ($23,683 - $25,760) / $25,760 ≈ -8.1%
Inventory: ($42,636 - $46,915) / $46,915 ≈ -9.1%
Total Current Assets: ($75,598 - $83,848) / $83,848 ≈ -9.8%
Fixed Assets:
Net plant and equipment: ($272,047 - $297,967) / $297,967 ≈ -8.7%
Total Fixed Assets: ($272,047 - $297,967) / $297,967 ≈ -8.7%
Liabilities and Owners' Equity:
Current Liabilities:
Accounts payable: ($41,060 - $43,805) / $43,805 ≈ -6.3%
Notes payable: ($16,157 - $16,843) / $16,843 ≈ -4.1%
Total Current Liabilities: ($57,217 - $60,648) / $60,648 ≈ -5.7%
Long-term debt: ($40,000 - $35,000) / $35,000 ≈ 14.3%
Owners' Equity:
Common stock and paid-in surplus: ($50,000 - $50,000) / $50,000 ≈ 0.0%
Accumulated retained earnings: ($200,428 - $236,167) / $236,167 ≈ -15.1%
Total Owners' Equity: ($250,428 - $286,167) / $286,167 ≈ -12.5%
c. 2015 Combined Common-Size, Common-Base Year Balance Sheet:
Assets:
Current Assets:
Cash: 12.25% - 13.29% = -1.04%
Accounts receivable: 31.32% - 30.69% = 0.63%
Inventory: 56.43% - 55.91% = 0.52%
Total Current Assets: 100% - 100% = 0%
Fixed Assets:
Net plant and equipment: 78.27% - 78.03% = 0.24%
Total Fixed Assets: 78.27% - 78.03% = 0.24
Liabilities and Owners' Equity:
Current Liabilities:
Accounts payable: 71.74% - 72.24% = -0.50%
Notes payable: 28.26% - 27.76% = 0.50%
Total Current Liabilities: 100% - 100% = 0%
Long-term debt: 69.88% - 57.65% = 12.23%
Owners' Equity:
Common stock and paid-in surplus: 19.96% - 17.45% = 2.51%
Accumulated retained earnings: 80.04% - 82.55% = -2.51%
Total Owners' Equity: 100% - 100% = 0%
d. Change in Accounts during 2015:
Cash: Decreased by $1,893 ($11,173 - $9,279). It was a use of cash.
Accounts receivable: Decreased by $2,077 ($25,760 - $23,683). It was a source of cash.
Inventory: Decreased by $4,279 ($46,915 - $42,636). It was a source of cash.
Accounts payable: Decreased by $2,745 ($43,805 - $41,060). It was a source of cash.
Notes payable: Decreased by $686 ($16,843 - $16,157). It was a source of cash.
Long-term debt: Increased by $5,000 ($35,000 - $40,000). It was a source of cash.
Common stock and paid-in surplus: No change ($50,000 - $50,000). No impact on cash.
Accumulated retained earnings: Decreased by $35,739 ($236,167 - $200,428). It was a source of cash.
Note: The changes in the accounts reflect their impact on cash flow, whether they were a source or use of cash.
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kindzi company has preferred stock outstanding that is expected to pay an annual dividend of $4.60 every year in perpetuity. if the required return is 4.49 percent, what is the current stock price?
The solution to the given question is as follows: Given data: Annual dividend payment = $4.60Required return = 4.49%
Step 1: To calculate the current stock price, we need to use the constant growth model which is used to calculate the price of the stock if the dividends are expected to grow at a constant rate.i.e.
Current Stock Price = Dividend payment / (Required Return - Growth rate of dividend)In this case, the dividend is expected to grow at a constant rate of 0%.
Step 2: Now, put the given values in the formula,Current Stock Price = $4.60 / (0.0449 - 0)Current Stock Price = $102.449
Thus, the current stock price of Kindzi Company is $102.449 which is rounded off to $102.45.
Therefore, the answer is 102.45.
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Taxation and savings. Suppose there are two periods. An individual has a fixed income equal to Y0 in the first period and Y1 in the second period. He can save or borrow during the first period. The interest rate is equal to r. The utility of the individual is a function of his consumption in each of the two periods U(C1,C2).
a) Graph the consumption profile of the individual during the two periods assuming that his level of savings in the first period is strictly positive.
b) Suppose the government imposes a tax at rate t on interest income. Analyze graphically the effect of this tax on the level of savings assuming that the income effect dominates the substitution effect.
a) Consumption profile graph: Given that, an individual has a fixed income equal to Y0 in the first period and Y1 in the second period. He can save or borrow during the first period. The interest rate is equal to r.
The utility of the individual is a function of his consumption in each of the two periods U(C1,C2).In the first period, the individual saves s0 and consumes C0. Then his consumption in the first period is C0 = Y0 - s0. The amount that he saves earns interest and accumulates to s0(1+r) at the beginning of the second period.
So, his total resources in the second period are Y1+s0(1+r).Consumption in the second period is given as C1=Y1 + s0(1+r) -s1, where s1 is savings in the second period. If we assume that s0 > 0, then the budget constraint of the individual in the first period is: C0 + s0 = Y0. And his budget constraint in the second period is: C1 + s1/(1+r) = Y1 + s0. (Dividing by (1+r) transforms the future value of s1 into present value terms.)We can draw the graph by plotting consumption in period 1 on the vertical axis and consumption in period 2 on the horizontal axis.
The slope of the budget constraint in the first period is -1. If the interest rate is positive, the slope of the budget constraint in the second period is steeper than -1 and equals: -1/(1+r). We can connect the two budget constraints by a straight line.b) The imposition of a tax on interest income changes the net return to saving. It reduces the amount of savings that the individual wants to undertake at a given level of income in the first period.
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Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,800 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years.
Lease
Payment Cash
Payment Effective
Interest Decrease in
Balance Outstanding
Balance
43,020
1 9,900 ?? ?? 33,120
2 9,900 3,312 6,588 26,532
3 9,900 2,653 7,247 19,285
4 9,900 1,929 7,971 11,314
5 9,900 ?? ?? ??
6 2,800 255 2,545 0
What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Round your answer to the nearest whole dollar.)
Multiple Choice
O $4,140.
O $6,538.
O $5,378.
O $6,615.
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,800 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years.
Lease
Payment Cash
Payment Effective
Interest Decrease in
Balance Outstanding
Balance
43,020
1 9,900 ?? ?? 33,120
2 9,900 3,312 6,588 26,532
3 9,900 2,653 7,247 19,285
4 9,900 1,929 7,971 11,314
5 9,900 ?? ?? ??
6 2,800 255 2,545 0
What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Round your answer to the nearest whole dollar.)
Multiple Choice
O $4,140.
O $6,538.
O $5,378.
O $6,615.
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freight charges to ship goods to customers is recorded as a debit to delivery expense.
False. Freight charges to ship goods to customers are recorded as a debit to a Freight-in account or Delivery-in account.
Freight charges are incurred by a company when it delivers products to customers. These charges are often related to transportation and handling costs. Freight expenses can be recorded in different accounts, depending on the nature of the transaction.
A company records freight charges in a Delivery-in account or a Freight-in account, which is an inventory account. These accounts keep track of all the charges related to getting the goods to the company's warehouse or store. Freight-in expenses are an increase in the cost of goods, which increases the cost of inventory. Freight-in is a debit account and is used when calculating the cost of goods sold and gross profit.
Delivery expenses are a different account altogether. It is an operating expense account that records all the costs associated with delivering goods to the customer. These expenses are not related to the cost of goods and are often associated with administrative expenses. If the company chooses to debit the delivery expenses account, it will record the charges as an operating expense and not as an inventory cost.
Therefore, it can be concluded that freight charges to ship goods to customers are recorded as a debit to a Freight-in account or Delivery-in account but not as a debit to delivery expense.
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what new skills will trainers need to be successful in the future?
Trainers in the future will require a combination of technical proficiency, adaptability, and interpersonal skills to be successful in their profession.
As the training landscape evolves, trainers will need to acquire new skills to stay relevant and effective. Firstly, technical proficiency will become increasingly important as technology continues to shape the training industry. Trainers will need to be adept at utilizing various digital tools, learning management systems, and virtual platforms to deliver engaging and interactive training experiences. Additionally, trainers will need to possess strong adaptability skills to keep up with the rapidly changing learning needs and preferences of diverse audiences. They should be able to quickly adapt their training methods, content, and delivery approaches to cater to different learning styles and accommodate emerging trends in training. Lastly, interpersonal skills such as communication, empathy, and collaboration will remain crucial for trainers to build rapport with learners, foster a positive learning environment, and effectively facilitate knowledge transfer. By developing these new skills, trainers can ensure their success in the dynamic and evolving field of training.
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Question 18.
What is the advantage to a particular firm of cheating on an otherwise effective cartel? The industry can then act like a monopoly. It decreases risk. It enhances credibility.
Cartels are formed when businesses in a particular industry come together and agree to collaborate and regulate their behavior so that they can control the market.
It is done to protect businesses from external competition and to increase their profit margins. However, one company in the cartel may find it advantageous to cheat on the cartel, which could lead to the company acting as if it were a monopoly. A cartel's success depends on the ability of the member businesses to trust one another and comply with the rules of the cartel. If one company in the cartel cheats, it is no longer necessary for the other companies to follow the rules of the cartel, and they could form a new cartel without the cheating company. If the cheating company is found out, it may face legal action and damage to its reputation, which is why most firms avoid cheating.
The primary advantage of cheating for a particular firm is that it can act as a monopoly in the industry. This is because, with the cartel, prices are usually kept at a certain level, but with cheating, the company can lower prices and increase sales, leading to an increased market share. By lowering prices, the cheating firm can attract more customers and create a competitive advantage over other companies in the cartel. This strategy can lead to a considerable increase in profits, although it is not without risks.
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Suppose the total cost of producing T-shirts can be represented as TC = 90 + 3q. The marginal cost of the 14th T-shirt is
The marginal cost of the 14th T-shirt is simply the derivative of the constant term, which is zero.
To find the marginal cost of the 14th T-shirt, we need to calculate the derivative of the total cost (TC) function with respect to quantity (q).
Given:
TC = 90 + 3q
To find the marginal cost, we take the derivative of TC with respect to q:
MC = dTC/dq
Taking the derivative of TC with respect to q:
MC = d(90 + 3q)/dq
The derivative of a constant (90) with respect to q is zero, and the derivative of 3q with respect to q is 3.
Therefore, the marginal cost of the 14th T-shirt is simply the derivative of the constant term, which is zero.
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Irwin roes that to understand what the impact of a tax cut will be you also need to look at its impacto et spending for example on workers infrastructure which can increase the productive capacity of a country, True / False
The statement that Irwin argues that to understand the impact of a tax cut, you also need to look at its effect on spending, for example, on workers' infrastructure, which can increase the productive capacity of a country is True.
It is vital to understand the relationship between taxes and the spending capacity of the government. If taxes are decreased, the revenue of the government will decrease as well. This decrease in revenue can negatively impact the economy of the country, leading to a decrease in the budget.
However, the decrease in tax may also have a positive effect on the economy.For example, if the tax cut is managed correctly, it can lead to an increase in spending and investment in the infrastructure of the country. This increase in infrastructure spending can increase the productive capacity of a country, which can be beneficial for the economy. The increase in productive capacity will mean that there is a higher level of output for the same level of input.
It can also mean that the cost of production decreases, which leads to lower prices for goods and services.The government should, therefore, understand the relationship between taxes and spending to maintain an optimal balance between revenue and the economy.
It is vital to note that this can be a delicate balance, and if not managed correctly, it can negatively impact the economy.
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Suppose that a discount bond has a face value of $100,000 and matures in one year. What is the yield to maturity when its price is $95,000? What is the yield to maturity when its price is $99,000?
The yield to maturity is 5% when the price is $95,000 and 1% when the price is $99,000.
To calculate the yield to maturity (YTM) of a discount bond, we need to use the formula:
YTM = (Face Value - Price) / Face Value * (1 / Time to Maturity), Where:
Face Value is the nominal value of the bond ($100,000 in this case)
Price is the current price of the bond
Time to Maturity is the remaining time until the bond matures (1 year in this case)
Let's calculate the YTM for the given prices:
When the price is $95,000:
YTM = ($100,000 - $95,000) / $100,000 * (1 / 1)
= $5,000 / $100,000
= 0.05 or 5%
When the price is $99,000:
YTM = ($100,000 - $99,000) / $100,000 * (1 / 1)
= $1,000 / $100,000
= 0.01 or 1%
Therefore, the yield to maturity is 5% when the price is $95,000 and 1% when the price is $99,000.
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Technology:
O Labour market whose distinct segments function as separate labour markets with limited mobility of workers from one segment to the other (including for reasons of racial, language, or other forms of discrimination).
O A group of people who, because of their differing endowments engage in asymmetric economic interactions with members of other groups, for example as owners and employees, landlords and tenants, borrowers and lenders.
O The laws and social customs governing the process of production and distribution (who gets what) of goods and services, and how these change over time
O A process taking a set of materials and other inputs, including the work of people and machines, to produce an output.
The first description refers to segmented labor markets, where different segments operate as separate labor markets with limited mobility of workers between them. This can be due to factors such as discrimination based on race, language, or other characteristics. In segmented labor markets, individuals may face different opportunities and barriers based on the segment they belong to.
The second description pertains to economic interactions between groups with differing endowments. This can include various relationships such as employer-employee, landlord-tenant, or borrower-lender interactions. Asymmetric economic interactions occur when one group has more power or advantages over the other, leading to imbalances in the outcomes of these interactions.
The third description relates to the economic system's framework, including laws and social customs that govern the production and distribution of goods and services. These rules and customs determine how resources are allocated, who receives what, and how this distribution changes over time. This aspect encompasses the broader socio-economic structure and its impact on economic activities.
The fourth description refers to the process of production, where inputs such as materials, labor, and machinery are utilized to create outputs. This process involves transforming inputs into goods or services through various production methods and techniques. It highlights the physical aspect of converting inputs into valuable outputs.
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