wildhorse co. borrows $21600 at 5% annual interest for six months on october 1st, 2017. which is the appropriate entry to accrue interest if baden employs a december 31st, 2017, fiscal year? select answer from the options below a) interest expense $270 interest payable $270 b) notes payable $1080 interest payable $1080 c) interest expense $270 notes payable $270 d) interest expense $1080 interest payable $1080

Answers

Answer 1

The appropriate entry to accrue interest if Baden employs a December 31st, 2017, fiscal year would be:

d) Interest expense $1080

Interest payable $1080

Since the loan was taken for six months at a 5% annual interest rate, the interest expense can be calculated as follows:

Interest expense = Principal amount * Interest rate * Time

= $21600 * 0.05 * (3/12) [As it is only for three months from October 1st to December 31st]

= $1080

The interest expense is debited to recognize the expense incurred, and the interest payable is credited to reflect the amount owed to the lender.


Related Questions

suppose that the natural rate of unemployment in this economy is 5 percent. in the year 2009, the unemployment rate is

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In the inflationary hole, an financial system produces a higher quantity than its potential output, and the unemployment price decreases than the natural fee.

The joblessness rate estimates the portion of representatives in the efforts force who don't as of now have an errand but are effectively searching for works of art. People who've as of now not looking for work throughout recent weeks are not canvassed in this action.

The joblessness charge addresses the range of jobless individuals as a level of difficult work pressure (the workforce is the amount of the utilized and jobless). The joblessness charge is determined as (Jobless ÷ difficult work pressure) x 100.

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This question is not complete, Here I am attaching the complete question:

suppose that the natural rate of unemployment in this economy is 5 percent. in the year 2009, the unemployment rate is. Define.

FILL IN THE BLANK. Practice all cards
The money market is a subsector of the debt market consisting of very ______ - term debt securities that are highly marketable.

Answers

The money market is a vital component of the overall financial market, providing a platform for short-term borrowing and lending by various entities.

It comprises a diverse range of financial instruments, such as Treasury bills, commercial paper, certificates of deposit, and repurchase agreements, among others.

These instruments have maturities ranging from overnight to one year and are considered highly marketable due to their low credit risk and high liquidity.
In particular, the debt securities traded in the money market are typically issued by governments, financial institutions, and large corporations, which have a need for short-term funding to meet their operational or investment needs.

Investors, on the other hand, include individuals, institutional investors, and other entities that have surplus cash and seek a safe and profitable place to invest it.

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If the British subsidiary of a European firm has net exposed assets of £125,000, and the pound increases in value from €1.40/£ to €1.44/£, the European firm has a translation:loss of €5,000.gain of €5,000.gain of £5,000.loss of £5,000.

Answers

Answer: The European firm has a translation gain of £5,000.

When the pound increases in value from €1.40/£ to €1.44/£, it means that the pound has strengthened against the euro. Since the British subsidiary of the European firm has net exposed assets of £125,000, the increase in the value of the pound leads to a gain when translating those assets back to euros.

To calculate the gain, we can determine the difference in the value of the net exposed assets in euros before and after the change in exchange rate:

Gain = Net exposed assets in euros after - Net exposed assets in euros before

Net exposed assets in euros before = £125,000 * €1.40/£ = €175,000

Net exposed assets in euros after = £125,000 * €1.44/£ = €180,000

Gain = €180,000 - €175,000 = €5,000

Therefore, the European firm has a translation gain of €5,000, which is equivalent to £5,000.

Explanation:

In a professional service company, the recruiting process requires that only Asian applicants take a pre-employment assessment test while other non-Asian American candidates do not need to take such a test. Which of the following best describes this situation?
A. Adverse impact (or disparate impact).
B. Disparate treatment.
C. Validity Check.
D. 80% Rule (the Four-Fifths Rule).

Answers

In the given statement, the best answer to this question is B. Disparate treatment.

This is because the professional service company is treating Asian applicants differently than non-Asian American candidates by requiring only Asians to take a pre-employment assessment test. Disparate treatment is a form of discrimination that occurs when an employer treats employees or job applicants differently because of their race, ethnicity, or national origin. The use of pre-employment assessments can be a valid way to screen candidates, but it must be done fairly and consistently for all applicants. If only one group is being singled out for the assessment, it can be considered discriminatory. It is important for companies to ensure that their hiring practices are fair and do not discriminate against any particular group.  it is important for companies to regularly review their hiring practices to ensure that they are in compliance with laws and regulations related to equal employment opportunity.

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Which of the following is NOT a reason to enforce norms?A. To clarify role expectationsB. To create a written document of behavioral guidelines for new employeesC. To help the group surviveD. To emphasize the group's important valuesE. To help individuals avoid embarrassing situations

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Out of the options listed, the answer to the question is B. To create a written document of behavioral guidelines for new emloyees is not a reason to enforce norms.

Norms are enforced to maintain social order, promote group cohesion, and ensure that individuals understand their role expectations. Norms can also be used to emphasize the group's important values and help the group survive. Additionally, norms can be used to help individuals avoid embarrassing situations by providing clear guidelines on what is expected of them. However, creating a written document of behavioral guidelines is not a reason to enforce norms as norms are typically unwritten rules that are communicated through socialization and interaction with others in the group.

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if you saw a coworker steal a quarter from a register, what would you do?

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Ethical conduct would require you to report the incident to your supervisor or manager, or the appropriate authority in your workplace.

While it might be tempting to overlook the theft of such a small amount, it is important to remember that all forms of theft are unacceptable in the workplace. Failing to report such incidents could result in a breakdown of trust and integrity in the workplace, which could lead to more serious ethical violations. Furthermore, not reporting the incident could leave you open to potential legal and ethical repercussions, especially if it is discovered later that you were aware of the theft but failed to take appropriate action.
In summary, it is essential to maintain high ethical standards in the workplace by reporting any incidents of theft or misconduct, regardless of how small or inconsequential they may seem. This will not only ensure that the workplace remains a fair and honest environment, but also protect you and your colleagues from potential legal and ethical issues down the line.

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on november 1, 2024, the company received $12,000 in cash from a customer requesting a custom design for six identical bikes ($2,000 each). deferred revenue was credited for the entire amount on november 1. by the end of the year, four of the bikes have been completed.

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On November 1, 2024, the company received $12,000 in cash from a customer for a custom bike design. The company credited deferred revenue for the entire amount received. By the end of the year, four out of the six bikes have been completed. This scenario raises questions about recognizing revenue and how to account for the work in progress.

When the company received $12,000 in cash from the customer on November 1, it created a liability known as deferred revenue. This liability indicates that the company has an obligation to provide the custom bike design service in the future. The entire amount was credited to deferred revenue because no revenue can be recognized until the work is completed.

As of the end of the year, four out of the six bikes have been completed. At this point, the company needs to assess how much revenue can be recognized. One common approach is the percentage of completion method, which recognizes revenue based on the percentage of work completed. In this case, since four out of six bikes have been completed, approximately two-thirds of the work has been done.

Using the percentage of completion method, the company can recognize revenue for the work completed on the four bikes by debiting deferred revenue and crediting a revenue account. The remaining work on the two incomplete bikes is still considered work in progress and should not be recognized as revenue until they are completed. It's important for the company to assess the progress of the project and adjust revenue recognition accordingly to accurately reflect the services provided and the financial position of the company.

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the process of subjectively evaluating the quality of an employee's work is known as _____.

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The process of subjectively evaluating the quality of an employee's work is known as performance appraisal.

This process involves assessing an employee's job performance, skills, strengths, weaknesses, achievements, and areas for improvement. Performance appraisals are typically conducted by managers or supervisors, and they may use a variety of methods such as rating scales, critical incidents, self-assessments, and feedback from colleagues or customers. The goal of performance appraisal is to provide constructive feedback to employees and to identify areas where they can develop their skills and improve their performance. It is an important tool for managers to ensure that employees are meeting expectations and contributing to the success of the organization.

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Which of the following principles of competitive advantage is related to process implementations?create new servicesraise the barriers to market entrycreate new productsdifferentiate servicesenhance services

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Option (b), The principle of competitive advantage related to process implementations is "raise the barriers to market entry."

By improving process implementations, a company can increase efficiency, reduce costs, and ultimately make it more difficult for new competitors to enter the market. This raises the barriers to market entry, providing a competitive advantage for the company.

This means that a company can gain a competitive advantage by improving its existing services through efficient and effective process implementations. By improving the process of delivering services, a company can provide better quality services to customers, reduce costs, and increase customer satisfaction, all of which can help the company gain a competitive advantage in the market.

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direct materials purchased during the year amount to $518,500, and the cost of goods sold for the year was $1,855,000. required:

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This means that direct materials accounted for approximately 28% of the cost of goods sold for the year.

Based on the information provided, we can calculate the direct materials cost percentage for the year by dividing the direct materials purchased by the cost of goods sold and multiplying by 100.

Direct materials cost percentage = (Direct materials purchased / Cost of goods sold) x 100
Direct materials cost percentage = ($518,500 / $1,855,000) x 100
Direct materials cost percentage = 27.97%

This means that direct materials accounted for approximately 28% of the cost of goods sold for the year. It's important to keep track of this percentage as it can help identify any significant changes in direct materials costs and allow for adjustments to be made accordingly.

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The market price of a bond is $805.96, it has 15 yelrs to maturity, a 51000 tace value, and pays an annual coupon of 5150 . What is the yield to maturity? Selected anwer will be autamatically steded. For krybosrd narigation, prew undown arrow heys to select an answet- a 15% b 16% c 17% d 18\% e 19%

Answers

The yield to maturity for the bond with a market price of $805.96, 15 years to maturity, a face value of $51,000, and an annual coupon of $5,150 is approximately 17%.

The yield to maturity (YTM) is the total return anticipated on a bond if it is held until its maturity date. To calculate the YTM, we can use the bond pricing formula and solve for the yield rate that makes the present value of the bond's future cash flows equal to its market price.

Given that the bond has a face value (FV) of $51,000, an annual coupon payment (C) of $5,150, and a market price (P) of $805.96, we can plug these values into the bond pricing formula:

P = (C / (1 + r)) + (C / (1 + r)^2) + ... + (C + FV / (1 + r)^n),

where r is the yield to maturity and n is the number of periods (years to maturity).

By solving this equation for r using the given values, the approximate yield to maturity for the bond is around 17%.

Therefore, the correct answer is c) 17%.

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Suppose the annual rate of inflation in Brazil (BRL) is 8.50%, and the annual rate of inflation in Argentina (ARS)is 15.91%. If the ARS appreciates relative to the BRL by 4.32% in real terms, then which of the following would be correct? O a. Nominal exchange rate appreciation by 11.44%. O b. Nominal exchange rate depreciation by 2.35%. O c. Nominal exchange rate appreciation by 12.82%. O d. Nominal exchange rate depreciation by 4.18%. O e. None of the options in this question are correct

Answers

the correct answer is option A, "Nominal exchange rate appreciation by 11.44%."

Which business structure exposes the owner to unlimited personal liability?

Answers

The business structure that exposes the owner to unlimited personal liability is a general partnership.

In a general partnership, two or more individuals come together to carry out a business venture. Each partner shares the profits, losses, and management responsibilities of the business. However, unlike other business structures such as limited partnerships or corporations, a general partnership does not provide limited liability protection to its partners.

Unlimited personal liability means that each partner is personally responsible for the partnership's debts, obligations, and legal liabilities. If the partnership cannot meet its financial obligations, creditors can pursue the partners' personal assets, including their homes, bank accounts, or other possessions, to satisfy the partnership's debts.

This means that if one partner makes a poor business decision, commits a wrongdoing, or incurs significant debts, all partners can be held personally liable for the consequences. Each partner's personal assets are at risk, regardless of whether they were directly involved in the actions leading to the liability.

It's worth noting that while general partnerships expose partners to unlimited personal liability, limited partnerships and limited liability partnerships (LLPs) offer some level of liability protection. In these structures, there are general partners who bear unlimited liability and limited partners or members who have limited liability, subject to their investment or involvement in the partnership.

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which one of these will increase a firm's cash balance: A) An increase in inventory, B) A decrease in accounts payable, C) An issue of common stock, D) Purchase of new equipment

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The  that directly increases a firm's cash balance is c) an issue of common stock.

the  that will increase a firm's cash balance is c) an issue of common stock.

when a firm issues common stock, it sells shares of its ownership to investors in exchange for cash. this infusion of cash increases the firm's cash balance as it receives funds from the shareholders. the proceeds from issuing common stock can be used by the firm for various purposes such as funding operations, investing in growth opportunities, or paying off debts.

let's evaluate the other s:

a) an increase in inventory: an increase in inventory does not directly increase a firm's cash balance. it represents an increase in the value of goods held for sale, which can tie up cash but doesn't immediately impact the cash balance.

b) a decrease in accounts payable: a decrease in accounts payable means the firm is paying off its outstanding debts to suppliers. while it affects liabilities, it does not directly impact the cash balance.

d) purchase of new equipment: the purchase of new equipment typically reduces the firm's cash balance as cash is used to acquire the equipment.

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Leaders use different types of power to get others to follow them. Some forms of power result from a formalized position in the organization, while others derive from personal characteristics or knowledge. This activity is important because influencing others as a manager or leader depends upon your ability to use power appropriately. points The goal of this exercise is to challenge your knowledge of the five sources of power References First, hover over each name to read a short description. Then, click and drag cach name to the type of power its description best represents. There's something charismatic about Zoe that makes others want to work with her and follow her guidance Zoe Reward power Julian Coercive power Jiro Legitimate power Lina Expert power Samantha Referent power Chapter 14: Five Sources of Power 6 1 Five Sources of Power Leaders use different types of power to get others to follow them. Some forms of power result from a formalized position in the organization, while others derive from personal characteristics or knowledge. This activity is important because influencing others as a manager or leader depends upon your ability to use power appropriately points The goal of this exercise is to challenge your knowledge of the five sources of power rences First, hover over each name to read a short description. Then, click and drag cach name to the type of power it's description best represents Everyone voted for Julian to lead the team because of his edensive knowledge of the processes they would be using to complete their upcoming project Zoe Reward power Julian Coercive power Jiro Legitimate power Lina Expert power Referent power Samantha

Answers

Zoe represents referent power as others are drawn to her charismatic personality and want to work with her.

Julian represents expert power as he was voted to lead the team because of his extensive knowledge. Jiro represents coercive power as he may use punishment or negative consequences to get others to comply. Lina represents legitimate power as her position in the organization gives her the power to make decisions and give orders.

Samantha represents reward power as she may use incentives or positive consequences to motivate others. It is important for managers and leaders to understand these different sources of power and use them appropriately to effectively influence others.

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south korea's emergence as a global competitor by building on imported technologies and targeting technical education to become both a competitive and technical leader is largely due to its adoption of trade policy.

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South Korea's emergence as a global competitor is largely due to its adoption of trade policy, leveraging imported technologies and prioritizing technical education to become a competitive and technical leader.

South Korea's success as a global competitor can be attributed to its strategic trade policies. The country recognized the importance of embracing imported technologies and integrating them into its domestic industries. By actively seeking and acquiring advanced technologies from around the world, South Korea was able to enhance its industrial capabilities and achieve rapid economic growth.

Additionally, South Korea placed a strong emphasis on technical education and training programs. The government invested heavily in building a skilled workforce, focusing on science, technology, engineering, and mathematics (STEM) disciplines. This commitment to technical education ensured a steady supply of highly qualified professionals who could effectively utilize imported technologies and drive innovation.

The combination of adopting trade policies that encouraged the import of advanced technologies and nurturing a skilled workforce through targeted technical education enabled South Korea to become a competitive and technical leader on the global stage. The country's thriving industries, such as electronics, automotive, shipbuilding, and semiconductor manufacturing, are a testament to its successful approach. South Korea's experience serves as an example of how a deliberate trade policy and a focus on technical education can propel a nation to become a formidable player in the global marketplace.

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An investment project provides cash inflows of $835 per year for eight years. a.What is the project payback period if the initial cost is $1,900? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b.What is the project payback period if the initial cost is $3,600? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the project payback period if the initial cost is $7,400? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Payback period ____ years. b. Payback period ____ years. c. Payback period ____ years.

Answers

a) The payback period - 2.275 years

b) Payback period: 4.31 years

c) . Payback period: The project never pays back.

a. Payback period: To calculate the payback period, divide the initial cost by the annual cash inflows. For an initial cost of $1,900 and annual cash inflows of $835, the payback period is:

$1,900 / $835 = 2.275 years (rounded to 2 decimal places)

b. Payback period: For an initial cost of $3,600 and annual cash inflows of $835, the payback period is:

$3,600 / $835 = 4.31 years (rounded to 2 decimal places)

c. Payback period: For an initial cost of $7,400 and annual cash inflows of $835, the project never pays back within the eight years since the total cash inflows during that period would be:

$835 x 8 = $6,680

As $6,680 is less than the initial cost of $7,400, the project never pays back. Therefore, enter O for the payback period.

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Capacity Requirements Planning (CRP)is a Capacity planning activity.At which resource levels does CRP operate?
1)All Work Centers
2)Individual Machine
3)Company
4)Plants
A) (1)
B) (2) and (4)
C) (1) and (3)
D) None of the

Answers

The correct answer is A) (1) All Work Centers.

Capacity Requirements Planning (CRP) is a capacity planning activity that operates at the level of all work centers. It involves analyzing the production requirements and the available capacity at each work center to ensure that there is sufficient capacity to meet the production demand. By considering the workload and capacity constraints of all work centers, CRP helps in identifying any potential capacity bottlenecks and making appropriate adjustments to meet the production requirements efficiently.

Federal student loans. The first and biggest decision you'll have to make about going to college the right way financially is to ____.

Answers

The first and biggest decision you'll have to make about going to college the right way financially is to determine the most appropriate funding options for your education, particularly whether to rely on federal student loans, private loans, or a combination of both.

To make this decision, you should consider the following steps:
1. Research different types of federal student loans, such as Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans, and their respective eligibility criteria, interest rates, and repayment options.
2. Evaluate your financial needs and potential eligibility for grants, scholarships, and work-study programs to supplement your federal student loans.
3. Compare the benefits and drawbacks of federal student loans with private loans, including interest rates, repayment terms, and borrower protections.
4. Fill out the Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal financial aid, including loans.
5. Carefully review your financial aid award letter and discuss your options with a financial aid counselor at your chosen college or university.
By carefully considering these steps, you can make an informed decision about utilizing federal student loans to finance your college education in a financially responsible manner.

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Economists have identified many concerns about inflation. Yet inflation isn't always bad. Which of the following are concerns you might see an economist cite?
costs of changing prices on menus
costs people incur to avoid holding cash when there is inflation
money illusion
wealth redistribution
decreased tax collection with inflation

Answers

Economists may cite the following concerns about inflation: Costs of changing prices on menus: Inflation can lead to increased costs for businesses to adjust and change prices.

Costs people incur to avoid holding cash when there is inflation: Inflation erodes the purchasing power of money over time. As a result, people may incur costs to avoid holding cash and seek alternative assets or investments that can better preserve value, such as buying real estate, stocks, or other financial instruments.

Money illusion: Inflation can lead to the phenomenon of money illusion, where individuals may mistakenly focus on nominal changes in wages or prices rather than considering the real purchasing power of their income or savings. This can distort economic decision-making and lead to suboptimal choices.

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.Which of the following ratios would most interest a banker who is thinking about making a long-term loan to a company?
THE CORRECT ANSWER
a. Debt-to-equity
b. Dividend yield
c. Return on assets
d. Return on equity

Answers

The ratio that would most interest a banker considering a long-term loan to a company is the "Debt-to-equity" ratio. This ratio provides insight into the financial leverage of a company and helps the banker assess the company's ability to meet its long-term debt obligations.

The Debt-to-equity ratio compares a company's total debt to its shareholders' equity. It is calculated by dividing the total debt of the company by its shareholders' equity. This ratio is crucial for a banker because it helps them understand the company's capital structure and financial risk. A high debt-to-equity ratio indicates that the company has a significant amount of debt relative to its equity, which suggests higher financial risk. On the other hand, a low ratio indicates a more conservative capital structure with less reliance on debt financing. The banker will be interested in this ratio to assess the company's ability to repay the long-term loan and manage its financial obligations effectively.

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how does the entry of new coffeehouses affect the profits of existing coffeehouses?

Answers

The entry of new coffeehouses into a market can have a negative impact on the profits of existing coffeehouses.

What is the reason?

With more competition, customers have more options to choose from, leading to a potential loss of customers for existing coffeehouses. This can lead to a decrease in revenue and profits.

However, the impact of new coffeehouses on existing ones depends on factors such as location, pricing, and quality of products and services. If an existing coffeehouse has a strong brand, loyal customer base, and competitive pricing, it may be able to withstand the competition and maintain its profits.

Ultimately, the success of existing coffeehouses in the face of new competition depends on their ability to differentiate themselves and offer unique value to customers.

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Which of the following tends to make the size of a shift in aggregate demand resulting from an increase in government purchases smaller than it otherwise would be? a. The multiplier effect b. The crowding-out effectc. The interest rate effect

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When the government increases its purchases, it directly increases aggregate demand. However, the size of the shift in aggregate demand resulting from this increase in government purchases can be smaller than it would be if there were no other effects.

One of the effects that tend to make the size of this shift smaller is the crowding-out effect.
The crowding-out effect occurs when the government's increase in purchases leads to higher interest rates.

When the government purchases increase, it also needs to finance these purchases. It may do so by borrowing from the private sector.

This increases the demand for loanable funds, which puts upward pressure on interest rates. When interest rates increase, this reduces the amount of private investment that takes place in the economy.

This decrease in private investment reduces aggregate demand, which partially offsets the increase in government purchases.

As a result, the overall shift in aggregate demand is smaller than it would be if there were no crowding-out effect.

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an investment of $129712 is expected to generate an after-tax cash flow of $84500 in one year and another $106000 in two years. the cost of capital is 10 percent. what is the internal rate of return?

Answers

The internal rate of return (IRR) for the given investment is approximately 22.66%.

To calculate the internal rate of return (IRR) for the given investment, we need to find the discount rate that makes the present value of the cash inflows equal to the initial investment. In this case, the initial investment is $129,712, and the cash flows are $84,500 in one year and $106,000 in two years.

Using the formula for calculating the present value of cash flows:

PV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2

Where PV is the present value, CF1 is the cash flow in year 1, CF2 is the cash flow in year 2, and r is the discount rate.

We can rearrange the formula to set PV equal to the initial investment and solve for r:

$129,712 = $84,500 / (1 + r)^1 + $106,000 / (1 + r)^2

To find the IRR, we need to find the discount rate (r) that satisfies the above equation. This involves trial and error or using numerical methods, such as a financial calculator or spreadsheet software.

Using a financial calculator or spreadsheet software, we can find that the internal rate of return for this investment is approximately 22.66%.

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long-term assets are typically classified in one of these two categories:

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Long-term assets are typically classified into one of these two categories: tangible and intangible assets. Tangible assets are physical assets that have a finite useful life and can be seen or touched, such as property, plant, equipment (PP&E), machinery, vehicles, and furniture.

Intangible assets, on the other hand, are non-physical assets that lack physical substance but have value to the company, such as patents, trademarks, copyrights, and goodwill. Tangible assets are usually depreciated over their useful lives, which can range from a few years to several decades. This means that the cost of the asset is gradually allocated as an expense on the income statement over the asset's useful life.

Intangible assets are also amortized over their useful lives, which can range from a few years to several decades. Amortization is similar to depreciation, but instead of allocating the cost of a tangible asset, it allocates the cost of an intangible asset. For example, a company may purchase a patent for $100,000 and estimate that it will have a useful life of 10 years. In this case, the company would amortize the patent by $10,000 per year ($100,000/10 years).

Overall, classifying long-term assets as either tangible or intangible is important for accounting purposes, as it helps companies track the value of their assets over time and properly allocate their costs as expenses on the income statement.

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is marketing messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices.

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Mobile marketing involves delivering marketing messages, promotions, and other content directly to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices.

With the increasing prevalence of mobile devices and the changing consumer behavior of being constantly connected, mobile marketing has become a crucial strategy for businesses. It enables brands to engage with consumers anytime and anywhere, leveraging the capabilities of mobile technology.

Mobile marketing tactics include mobile advertising, mobile apps, SMS marketing, location-based marketing, and mobile-responsive websites. By leveraging mobile devices, marketers can reach their target audience in a personalized and targeted manner, driving brand awareness, customer engagement, and ultimately, business growth.

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A grocery chain recently reported annual sales of $89 billion, inventory of $5.8 billion, and annual cost of goods sold of $64 billion. What are the firm's annual inventory turns?

Answers

The grocery chain has an annual inventory turnover of 22.07 times per year.

The formula for calculating annual inventory turns is to divide the cost of goods sold by the average inventory balance.

To find the average inventory balance, we can add the beginning and ending inventory balances and divide by two.

However, we do not have the beginning inventory balance, so we will assume it is roughly equal to the ending inventory balance.

Using this assumption, we can calculate the average inventory balance by dividing the reported inventory balance by two:
Average inventory balance = $5.8 billion / 2 = $2.9 billion

Next, we can calculate the annual inventory turns using the formula:

Annual inventory turns = Cost of goods sold / Average inventory balance
Annual inventory turns = $64 billion / $2.9 billion
Annual inventory turns = 22.07

Therefore, the grocery chain has an annual inventory turnover of 22.07 times per year.

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Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?

A) Potential GDP is forecasted to be higher than equilibrium GDP.

B) Aggregate demand is growing too slowly and the economy is in danger of producing GDP above full employment.

C) Aggregate demand is growing too fast to keep the economy at full employment.

D) Potential GDP is forecasted to be lower than equilibrium GDP.

Answers

Answer:C) Aggregate demand is growing too fast to keep the economy at full employment.

Explanation:

Expansionary monetary policy is typically pursued by the central bank (such as the Fed) when the goal is to stimulate economic growth and increase aggregate demand. This is done by implementing measures to lower interest rates, increase the money supply, and encourage borrowing and spending. In the given options, when aggregate demand is growing too fast and there is a risk of the economy exceeding full employment, the Fed may pursue an expansionary monetary policy to moderate the growth and maintain stability.

In an open economy a decrease in the money supply? A) raises U.S. interest rates which lowers the value of the dollar which increases our imports. B) lowers U.S. interest rates which lowers the value of the dollar which decreases our exports. C) raises U.S. interest rates which raises the value of the dollar which decreases our exports. D) lowers U.S. interest rates which raises the value of the dollar which increases our imports.

Answers

In an open economy, a decrease in the money supply will affect various aspects of the economy. The correct answer to the question is D. A decrease in the money supply will result in lower U.S. interest rates, which will make borrowing cheaper for consumers and businesses.

This, in turn, will raise the value of the dollar, making imports more expensive and exports cheaper. As a result, the demand for imports will decrease, while the demand for exports will increase. This can have a negative impact on the trade balance, as exports may decrease while imports increase. As a result, the current account deficit may increase.

A decrease in the money supply can also lead to a contraction in economic activity, as less money is available for investment and consumption. This can result in a recession. In summary, a decrease in the money supply in an open economy can have various impacts, including lower interest rates, increased demand for exports, decreased demand for imports, and a potential negative impact on the trade balance and economic activity. The correct option is D.

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In which of the following situations would the Fed conduct contractionary monetary policy? A. The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP. B. The Fed fears that unemployment is climbing above the natural rate. C. The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP D. The Fed is worried that deflation will become a problem

Answers

The Fed would conduct contractionary monetary policy in the situation where aggregate demand would continue to exceed the growth in potential GDP. This means that the economy is operating above its capacity, which can lead to inflationary pressures.

In this scenario, the Fed would use contractionary monetary policy tools such as increasing the interest rates, reducing the money supply or selling government securities to decrease the amount of money in circulation and slow down the economic growth. By doing this, it aims to reduce aggregate demand and bring it closer to the growth rate of potential GDP.
In the other situations, the Fed would use expansionary monetary policy to achieve its objectives. In case A, if the Fed believes that aggregate demand is growing too slowly to keep up with potential GDP, it would use expansionary monetary policy tools such as lowering the interest rates, increasing the money supply or buying government securities to stimulate economic growth. In case B, if the Fed fears that unemployment is climbing above the natural rate, it would use expansionary monetary policy to increase economic activity and reduce unemployment. In case D, if the Fed is worried that deflation will become a problem, it would use expansionary monetary policy to increase the money supply and stimulate economic growth to prevent deflation.

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