Answers
Answer:
The correct solution is "$241,356".
Explanation:
The given values are:
Share price,
P0 = 140.50
Acquisition premium,
p = 20%
Diluted shares outstanding,
N = 2,863 MM
Now,
For Amazon, the purchase price every share will be:
⇒ [tex]P=P0\times (1 + p)[/tex]
On putting the values, we get
⇒ [tex]=140.50\times (1 + 20 \ percent)[/tex]
⇒ [tex]=168.60[/tex]
The purchase consideration will be:
= [tex]P\times N[/tex]
= [tex]168.60\times 2,863[/tex]
= [tex]482,702 \ MM[/tex]
So that,
The total equity financing expected will be:
= [tex]Purchase \ consideration\times Percentage \ of \ equity \ financing[/tex]
= [tex]482,702\times 50 \ percent[/tex]
= [tex]241,351 \ MM[/tex] ($)
Thus the above is the correct answer.
Related Questions
Imagine that you are looking for the latest news about a national disaster such as a hurricane. List the pros and cons of getting your news from a) an independent blogger and b) a mainstream daily newspaper. Then choose which you would prefer and explain why.
WRITER
Answers
a mainstream daily newspaper because they have more information and resources about what's happening but some bloggers dont tell the truth and make people confused
Select the correct answer.
Which of the following is most the suitable time management tool?
A. working after-hours
B. listing tasks
C. doing unplanned tasks
D. starting the day's work later than one's colleagues
Answers
Answer:
B. listing tasks
Explanation:
Time management tools help reduce time wastage and helps accomplish planned activities. Listing of tasks to be accomplished in a given time is one way of time management. tasks are listed in the order of priority. Each task is assigned its estimated completion time.
When listing tasks, it is important to indicate the person assigned to undertake each activity. Where possible, remainders should be set to assist in tracking progress.
How much can Jeff claim as an itemized deduction for taxes paid if he paid the following in 2019: (state income tax withheld of $5000; real estate taxes of $3500; personal property taxes based on value of his car of $1000, state income tax owned for 2016 of $450; and gas tax of $675)
Choose one answer.
a. None of these
b. $10,625
c. $10,000
d. $9,625
e. $9,950
Answers
Answer: $10,000
Explanation:
First and foremost, we need to calculate the total amount of itemized deductions which will be:
= $5,000 + $3,500 + $1,000 + $450 + $675
= $10625
We should note that taxpayers can deduct taxes for up to $10,000. Therefore, in this scenario, the amount that Jeff can claim as an itemized deduction for taxes paid will be $10000
B. If as the price of good Y rises from $1.25 to $1.35, the quantities demanded of good X become those shown in column 4, it can be concluded that X and Y are (substitute, complementary) ____________________ goods.
Answers
Answer:
If the fall in price of good Y causes demand for good X to fall as well, the goods Y and X are complementary.
Explanation:
Complementary goods are those goods that people tend to buy together, since, as the word implies, they fulfill complementary purposes.
An example of two complementary goods are BBQ Sauce and Meat.
Meat is often used to grill/roast, and it is accompanied with BBQ Sauce. If BBQ Sauce price goes down, it is likely that more of it will be bought as well as more meat. The opposite occurs if the price of either good goes up. Hence, both goods are complementary.
Using the Three-Step Ethics Model (Blanchard-Peale) analyze the following case:
A student knows that two other students who sit next to each other in class are cheating on exams because they talk about it after class. Is this an ethical dilemma? What, if anything, should the student do?
a. _______________________________________________________________________________________
b. _______________________________________________________________________________________
c. _______________________________________________________________________________________
Answers
Answer:
I. Yes, it is an ethical dilemma. There are two lines of action that are morally correct but conflict with one another. That is, individually, both lines of action seem correct or right but once a choice is made to go with one the other becomes wrongful. The student is probably torn between reporting and not reporting. If they report, the students will be punished and probably asked to repeat the exam. If they don't, the results for the examinations be a true example of the capacities of the student in the class.
An example would be a staff in a car dealership business who discovers that her boss always bribes the regional sales manager from the car company so that the company can get more vehicles allotted to them.
If she keeps quiet about it, she benefits because more cars mean more potential sales. More sales mean more profit for the business. More profit for the business means a guaranteed salary for the staff.
If she speaks up, the bribery which in a way puts other dealers at a disadvantage will probably stop. But she most likely will lose her job.
In the example above, there is no foreseeable repercussion for the student if he or she reports the matter of cheating to the relevant authority.
It is important to resolve the question of whether or not reporting such matter should rest on whether or not the subject would be exposed to a repercussion. This is what the 3 steps ethics model seeks to resolve.
2. In order to decide what to do, the student who observed the cheating must carry out the following excercise.
The 3-step Ethics asks the following questions:
1. Is it legal? the answer is No. That's why the word "cheat" is used to describe the action of the students during the examinations.
2. Is it fair? Cheating is not fair. It means that the subjects involved are not really being examined but would most likely have results that say "haveing being tested during the examinations, they had a better result than others."
3. How does it make me feel? Putting oneself in the observer's shoes, it is impossible to feel good knowing that others would be recognized and probably celebrated for doing the wrong thing.
Analyzing all the answers above, we see that they are all in the negative. Therefore, the matter should be reported to the examiners by the student who is doing the observing.
Explanation:
As can be seen from the answer above, the Three-Step Ethics Model (Blanchard-Peale) is best utilized for the resolution of an ethical dilemma. used when evaluating an ethical dilemma
Cheers
Simone has a concave utility of wealth function, u(x). She is contemplating two prospects, Y and Z. EV(Z) > EV(Y). Which of the following statements is true?
a. Simone will necessarily prefer Z to Y.
b. Simone’s ranking of Y and Z cannot be determined without knowing the distribution of the outcomes that result in EV(Y) and EV(Z).
c. Simone will necessarily prefer Y to Z.
d. Because EV(Z) > EV(Y), EU(Z) > EU(Y), but that is not sufficient information to determine her preference ranking.
Answers
Answer:
b. Simone ranking of Y and Z cannot be determined without knowing the distribution of outcomes that result in EV(Y) and EV(Z).
Explanation:
The utility wealth function describes the satisfaction of a consumer by the consumption of real goods and services. The utility function of Simone cannot be determined without knowing the opportunity cost between Y and Z.
Work attitudes can be reflected in
an organization through
Select one:
a. All of these
b. Job satisfaction
Organisational Citizenship
Behaviour
d. Organizational commitment
= All of these
Answers
Answer:
Indeed it is A
Explanation:
Consider a two-good world: good x and good y. The ICC (income consumption curve) between good x and good y has a negative slope and the Engle curve of good x has a positive slope. Which of the following statements is false?
a. Good x is a normal good.
b. Goody is an inferior good.
c. The Engle curve for good y has a negative slope.
d. The income elasticity for good y is negative.
e. none of the above.
Answers
Answer: none of the above.
Explanation:
The Engle curve shows the relationship that takes place between the income of a consumer and the quantity of a particular good purchased.
From the question we are informed that the income consumption curve between good x and good y has a negative slope, this implies that good Y is an inferior good and that it has a negative income elasticity.
Also, since the Engle curve of good X has a positive slope, it implies that good X is a normal good.
Therefore, the answer to the question is "none of the above" as all options are true.
While managing political
behaviours
in organization, the manager
requires discouraging:
Select one:
a. Dialogue
b. Negotiation
c. Relationships
d. Self interest
= Self interest
Answers
Answer:
You are right it is D
Explanation:
Having Self Intrest will cause selfishnes while doing political things.
Is $1970.00 rental income debit or credit
Answers
The Warren Group’s pension expense is $67 million. This amount includes a $70 million service cost, a $50 million interest cost, a $55 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost.
1. Determine the components of pension expenses that affects the net pension liability.
Service cost
amortization of prior service cost
interest cost
expected return on plan assets
2. Prepare the journal entry to record the pension expense.
Answers
Answer:
1. Service cost
Interest cost
2. Dr Pension expense $67
Dr Plan assets $55
Cr Amortization of prior service cost—OCI $2
Cr PBO $120
Explanation:
1. The components of pension expenses that tend to affects the net pension liability are:
SERVICE COST and INTEREST COST reason will be that both SERVICE COST and INTEREST COST help to increase net pension liability while
Amortization of prior service cost on the other hand does not affect PBO or plan assets which simply means that it does not in any way change the net pension liability.
2. Preparation of the journal entry to record the pension expense.
Based on the information given the journal entry to record the pension expense will be :
Dr Pension expense $67
Dr Plan assets $55
Cr Amortization of prior service cost—OCI $2
Cr PBO $120
($70+$50=120)
Hamby Inc. has sales of $2,076,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $779,000 $614,000
Selling expenses 96,700 63,500
Administrative expenses 81,600 70,800
Required:
Prepare a CVP income statement for the quarter ended March 31, 2017.
Answers
Answer:
Net income= $370,301
Explanation:
First, we need to calculate the total variable costs and the total fixed costs:
Total variable cost= 779,000 + 96,700 + 81,600
Total variable cost= $957,399
Total fixed cost= 614,000 + 63,500 + 70,800
Total fixed cost= $748,300
Now, we make the CVP income statement:
Sales= 2,076,000
Total variable cost= (957,399)
Total contribution margin= 1,118,601
Total fixed cost= (748,300)
Net income= $370,301
According to Interland (2009), the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists of tracing the consequences of that policy not merely for one group but for all groups. Discuss
Answers
Answer:
The economy is a human activity whose purpose is to ensure the production, exchange, distribution and consumption of the goods and services that people need. The goal of the national economy is to ensure the livelihood and development of the country's population, therefore the national economy includes activities such as the procurement of food and clothing, the construction and heating of housing, education, and the care of health and cultural needs. The economy includes enterprises and institutions that produce goods and services. Companies that produce similar goods and provide similar services form an industry. These are, for example, energy, machinery, plant growing, education, tourism, etc.
Thus, the economy seeks not only to guarantee the general welfare of citizens in the immediate future, but also in the long term, through the creation of consistent and solid economic policies that allow achieving high development for society.
Which one of the following is a leakage from circular flow of income?
Select one:
a. Money invested by firms in
purchasing capital stock.
b. None
c. Money collected by the government, through income tax and value-added tax (VAT).
d. Government welfare benefits; and spending on infrastructure.
= Money collected by the government, through income tax and value-added tax (VAT).
Answers
A leakage from the circular flow of income in the economy is c. Money collected by the government, through income tax and value-added tax (VAT).
What are leakages in the circular flow of income?The circular flow of income shows how households and businesses interact. Businesses pay households for working, and households buy goods from businesses.
Leakages are those things that do not go to either the businesses or the households including taxes and funds collected by the government.
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Vicky Torres and Juanita Alva were the first in line at Best Buy during a Black Friday sale so that they could secure a large-screen TV, which was normally $499 and was advertised on sale at $199. Because they arrived three weeks early, they ended up waiting in line for a total of 500 hours! The authors of your textbook found their choice puzzling because of the high opportunity cost in this scenario. The authors say: "Saving $300 by spending 500 hours makes Vicky and Juanita's time worth 60 cents an hour. They could have spent 30 hours working an extra job at $10 an hour and each earned enough money to purchase the TV at full price-and still had 470 hours to do other things. In short, they don't seem to have been aware of the opportunity cost of waiting in line." But this is not the only conclusion one can draw from Vicky and Juanita's behavior. Choose the conclusion below that would be consistent with the idea that Vicky and Juanita were aware of the opportunity costs yet still found the three-week-wait to be worthwhile.
a. "However, they might have enjoyed the experience of camping out in line, meeting other customers, and gaining a degree of fame for their commitment to getting a good deal."
b. "Vicky and Juanita really enjoy their high paying jobs and don't like camping at all."
c. "If they are able to camp out for three weeks, they probably do not have full-time jobs, so earning 60 cents an hour is a good decision for the shoppers."
Answers
Answer:
a. "However, they might have enjoyed the experience of camping out in line, meeting other customers, and gaining a degree of fame for their commitment to getting a good deal."
Explanation:
Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every activity that you carry out includes the opportunity cost of not doing something else. Vicky and Juanita obtained more than just the $300 discount, they also met new people and a little bit of fame.
This question examines the market for mangos. You will use a demand function to construct the demand schedule, calculate the price elasticity of demand at different points along a linear demand curve, and identify the likely effects of price changes on total revenue.
Below, you are provided with the demand function for mangos. If you plug any price into the formula for the demand function, you get the quantity demanded at that price.
Q = 150 – 25P
Task 1. Use the table below to find the quantity of mangos demanded at each price.
Price Quantity of Mangos Demanded
$1
2
3
4
5
Task 2. Calculate the price elasticity of demand when the price falls from $5 to $4.
Task 3. When the price of a mango falls from $5 to $4, does total revenue fall or rise? How do you know?
Task 4. When the price of a mango falls from $3 to $2, does total revenue fall or rise?
Answers
Answer:
Task 1. Use the table below to find the quantity of mangos demanded at each price.
For a price of $1, the quantity demanded of mangos is:
Q = 150 - 25 ($1)
Q = 125
For $2:
Q = 150 - 25 ($2)
Q = 150 - 50
Q = 100
For $3
Q = 150 - 25 ($3)
Q = 150 - 75
Q = 75
For $4
Q = 150 - 25 ($4)
Q = 150 - 100
Q = 50
For $5
Q = 150 - 25 ($5)
Q = 150 - 125
Q = 25
Task 2. Calculate the price elasticity of demand when the price falls from $5 to $4.
The formula is
Price Elasiticy of Demand (PED) = ((Q2 - Q1) / (Q2 + Q1) / 2 ) / ((P2 - P1) / ((P2 + P1) / 2)
Now, we plug the amounts into the formula
PED = ((50 - 25) / (50 + 25) / 2) / ((4 - 5) / (4 + 5) / 2)
PED = 0.1666 / -0.0556
PED = -3
We take the absolute value, 3, which is a PED higher than 1, meaning that demand is elastic: the quantity demanded in this case increased more than the price.
Task 3. When the price of a mango falls from $5 to $4, does total revenue fall or rise? How do you know?
Revenue = Price x Quantity
Under the first scenario, revenue = $5 x 25 = $125
Under the second scenario, revenue = $4 x 50 = $200
So revenue increased by $75.
Task 4. When the price of a mango falls from $3 to $2, does total revenue fall or rise?
First scenario = $3 x 75 = $225
Second scenario = $2 x 100 = 200
So revenue actually falls by $25.
Beth, a recent college graduate, recognizes that she has lots of nice "stuff," largely thanks to her family buying it for her. Beth also recognizes that she has a lot of debt, thanks to her student loans. When Beth considers the difference between the monetary value of her possessions and other financial assets and her debt, she is best described as pondering her:______
a. income.
b. class position.
c. prestige.
d. wealth
Answers
Answer:
D
Explanation:
Wealth is the value of all the assets a person owns
Beth is pondering on the value of all her assets less her debt. So, she is pondering on her wealth
Tax principles Smoking cigarettes is a leading cause of many diseases. Suppose the government has opened several public clinics that treat smoking-related diseases and is trying to decide how to fund these clinics. One suggestion is to raise the funds for the public clinics with a cigarette tax. This tax follows:______
Answers
Answer: The ability to pay principle.
Explanation:
The ability to pay can be defined as one of the principles of taxation. According to this principle people who earn more income are expected to pay more tax as compared to those who earn less income.
Smoking can be defined as the leading cause of many chronic diseases, one of them is hypertension, chronic heart diseases, and others. The ability to pay principle can be imposed on smokers as cigarette tax to obtain the tax for develop the clinics that can help in smoking related diseases. This will result in deduction of tax from smokers which get good income.
For each of the following transactions, identify it as a financial capital inflow or financial capital outflow in the United States Balance of Payments. Also, determine if the transaction is in the Current or Financial Account.
a. The U.S. exports cars to be sold in Canada.
b. Pepsi buys a factory in Mexico.
c. A Brazilian company buys an apartment building in Boston.
d. The central bank of China purchases a U.S. Treasury Bond.
f. A businessman is paid dividends on the stock from a foreign corporation that he owns.
Answers
Answer: See explanation
Explanation:
The balance of payment show tge transactions that occur between a country and another country.
a. The U.S. exports cars to be sold in Canada.
This is a financial capital inflow and the transaction is in the current account.
b. Pepsi buys a factory in Mexico.
This is a financial capital outflow and the transaction is in the financial account.
c. A Brazilian company buys an apartment building in Boston.
This is a financial capital inflow and the transaction is in the current account.
d. The central bank of China purchases a U.S. Treasury Bond.
This is a financial capital inflow and the transaction is in the financial account.
e. A businessman is paid dividends on the stock from a foreign corporation that he owns.
This is a financial capital inflow and the transaction is in the financial account.
Which of the following is punctuated correctly?
1) I need to know whether you are able to perform the following functions of the job, revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
2) I need to know whether you are able to perform the following functions of the job; revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
Answers
Answer:
The correctly punctuated is:
3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
Explanation:
It has the colon at the right place, and the commas observe the standard Oxford Comma convention for making a list. Both colon and comma are punctuation marks that can be used in making a list. Usually, the colon is put after stating "the following," while commas separate one item from the other and are used when the items are three or more, with the last item started with a comma.
Identify the importance of accounting by selecting the statement that is correct below. Multiple choice question. Accounting information helps users make business and financial decisions. Accounting is a system that identifies, records and communicates an organization's business activities. Accounting information is primarily used only at the end of a year when tax returns and financial statements are prepared.
Answers
Answer:
Accounting information helps users make business and financial decisions.
Explanation:
Users of accounting information are divided into :
Internal users External usersInternal users include : owners, managers, employees
External users include : shareholders, tax authority, regulatory bodies
Based on the information contained in the financial information a shareholder can decide if to invest in a company or not to.
Also, mangers can decide to invest in new ventures based on the information on profitability contained in the financial statements.
The importance of accounting from the statements is A. Accounting information helps users make business and financial decisions.
Why is accounting important ?Accounting plays a crucial role in providing relevant and reliable information to users for making informed business and financial decisions. It involves the identification, recording, and communication of an organization's business activities, which helps users understand the financial health and performance of the entity.
Accounting information is used not only at the end of the year for tax returns and financial statements but also on an ongoing basis to support decision-making, budgeting, forecasting, strategic planning, and evaluating the financial position and performance of the organization.
In conclusion, option A is correct.
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Suppose that the California legislature passes a law that severely restricts carbon dioxide emissions from automobiles in that
state. A group of automobile manufacturers files suit against the state of California to prevent the enforcement of the law. The
essentially the same as carbon dioxide emission standards. According to the automobile manufacturers, it is unfair to allow
ralifornia to impose more stringent regulation
automakers claim that a federal law already sets fuel economy standards nationwide and that fuel economy standards are
s than those set by the federal law. Using the information presented in the chapter,
answer the following questions. Are the plaintiffs seeking a legal remedy or an equitable remedy?
Answers
Answer:
The plaintiffs are seeking an equitable remedy.
Explanation:
Legal remedies basically involve monetary compensations, in other words, the non-breaching party (in this case case manufacturers) sue in order to receive money.
While equitable remedies do not involve monetary compensations, instead they seek other types of solutions.
Sally received $78,300 of compensation from her employer and she received $540 of interest from a corporate bond. What is the amount of Sally's gross income from these items?
Answers
Answer: The amount of sally's gross income from these items is $78,300
Explanation:
Information provided from the question;
Amount received from employer as compensation = $78,300
Amount received as interest from a corporate bond = $540
Gross income is defined as the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. However, the interest income earned from municipal bonds is exempted from all federal income taxes regardless of one's tax bracket. Therefore, the amount of Sally's gross income from these items is $78,300
The Least used communication
channel in an organization is usually
Select one:
a. Horizontal
b. Downward
c. Diagonal
d. Upward
= Horizontal
Answers
If your expenses total $21000 in Year 1 and you expect inflation rate to be 2 percent, how much more will you have to spend to buy the same goods and services in Year 2, assuming that all your expenses increase at the same rate as inflation?
Answers
Answer:
$21,420
Explanation:
The total expense in year 1 was $21000
the inflation rate is 2 percent. it means prices will increase by 2 percent.
The amount to be spent in year 2 will be more by 2% than year 1
If year expenses are 100%, year 2 expenses will be 102%
Actual year 2 expense will be 102% of $21,000
=102/100 x $21,000
=1.02 x $21,000
=$21,420
You have already purchased (non-refundable and unsellable) tickets to a concert on Friday night. A friend also invites you to her birthday party on Friday. While you like your friend, you politely decline because you really want to go to the concert.
A) You learn that your friend is serving flank steak at her party, all-you-can eat and at no charge. Flank steak is your favorite food. Should this affect your decision to go to the concert? Explain by using the term "opportunity cost."
B) Suppose instead that you notice that the non-refundable concert ticket (that you already purchased) cost you $10; previously you had mistakenly believed the price was $100. Should learning this information affect your decision to go to the concert?
Answers
Answer:
a) Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every activity that you carry out includes the opportunity cost of not doing something else.
If you decide to go to the concert, your opportunity cost has increased. it is not only your friend's party, but it is also your favorite meal. This last part might make you change your mind.
b) Of course it would, since $10 is not that much considering a delicious meal and time with your friends.
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the standard factor tables.)
Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record their issuance by National on January 1, 2018.
3. Prepare the journal entry to record interest on June 30, 2018.
4. Prepare the appropriate journal entries at maturity on December 31, 2021.
Table Values Based On:
n=
i=
Cash Flow Amount Present Value
Interest
Principal
Price of Bonds
Answers
Answer:
1. Determine the price of the bonds at January 1, 2018.
PV of face value = $900,000 / (1 + 5%)⁸ = $612,525
PV of coupon payments = $40,500 x 6.4632 (PV annuity factor, 5%, 8 periods) = $261,760
market price of bonds = $874,285
2. Prepare the journal entry to record their issuance by National on January 1, 2018.
January 1, 2018, bonds issued at a discount
Dr Cash 874,285
Dr Discount on bonds payable 25,715
Cr Bonds payable 900,000
3. Prepare the journal entry to record interest on June 30, 2018.
Dr Interest expense 43,714
Cr Cash 40,500
Cr Discount on bonds payable 3,214
4. Prepare the appropriate journal entries at maturity on December 31, 2021.
Dr Bonds payable 900,000
Dr Interest expense 43,714
Cr Cash 940,500
Cr Discount on bonds payable 3,214
Assume an investor purchases the net assets of an investee for the cash purchase price is $75,600. The investor is willing to purchase the investee's business for this amount because the fair value of PPE is $70,560 and the fair value of a (previously unrecognized) customer list is $15,120 (the fair values of all other assets and liabilities are equal to their book values). The investee company reports the following balance sheet on the acquisition date:
Cash $2,800 Accounts payable $5,600
Accounts receivable 5,600 Accrued liabilities 8,400
Inventories 11,200 -
Current assets 19,600 Current liabilities 14,000
Long-term liabilities 11,200
PPE, net 28,000 Stockholdersâ equity 22,400
Total assets $47,600 Total liabilities and equity $47,600
Required:
Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company (assume that the fair value of the assets is equal to their book values).
Answers
Answer and Explanation:
The journal entry is given below;
Cash $2,800
Account receivable $5,600
Inventories $11,200
PPE $28,000
To Account payable $5,600
To Accrued liabilities $8,400
To Long term liabilities $11,200
To Cash $22,400
(Being the cash is paid is recorded)
Here all the assets are debited as it increased the assets and credited all the liabilities except cash as it increased the liabilities and the remaining balance left would be credited to cash account
A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases, which of the following will occur?
A. The demand curve for the product will shift to the left.
B. The firm's demand curve for plastic will shift to the left.
C. The firm will increase the number of units offered for sale.
D. The firm will definitely go out of business, since competitive firms earn zero economic profits in equilibrium.
E. The firm's marginal costs will increase at each level of output.
Answers
Answer:
B
Explanation:
Option (e), which states that the firm's marginal costs will rise at each output level, is the right choice.
Does the marginal cost of a production increase?The marginal cost of production often increases as output volume increases. The manufacturer can decide how to divide resources among the production units in order to maximize output by using marginal cost.
What occurs when a company's marginal cost increases?They make the unit and supply it if the sale price exceeds the marginal cost. It would not be economically feasible to make it if the marginal cost was higher than the price. Therefore, manufacturing will continue until the sale price equals the marginal cost.
Why eventually does marginal cost increase with output?As output grows, the marginal cost eventually rises as a result of the declining marginal product of labor.
When output declines, what happens to the marginal cost?At this point, marginal cost decreases until it reaches a minimum due to economies of scale and the Law of Diminishing Returns. The marginal cost then grows as output rises.
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Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?
a. The costs of over-fishing and other overly intensive uses of resources
b. The quality of goods available to consumers
c. Federal government paychecks to soldiers
d. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
e. All the above
Answers
Answer:
E
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Externalities