Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $ 1.06 billion. The country collected $ 1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance
Answers
Answer:
The formula to calculate the Budget Balance is
Government Income - Government Expenditure
in this case
$1.05 billion - $1.06 billion = - 0.01 billion or - $100 million
Explanation:
A budget balance is reached when a government expenditures are equal to it's income.
In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.
Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.
Related Questions
Of the following statements, which are true for the corporate form of organization?A. Directors oversee its business affairs.B. Stockholders do not have the power to bind the corporation to contracts. C. It has a continuous life. D. Transfer of ownership rights among owners generally does not impact equity. E. Compared to other forms of organization- capital (financing) is more difficult to accumulate. F. Generally there is no double taxation on corporate income that is distributed to owners. G. It is not a separate legal entity from its owners.
The purpose of sobriety checkpoints that are set up by community and state police is to deter drunk driving and ultimately save lives.While not mandated,the makers of Blackberry™ have complied with the public request of several legislators and have obediently removed apps that permit smartphone users to navigate around the checkpoints.Google™ and Apple™ have elected not to honor such requests.Google said the apps do not violate the company's content policy.After studying about ethics and social responsibility,which of the following statements applies to this situation? A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance. B) Google and Apple are showing corporate social responsibility because they demonstrate concern for their investors,which is exactly where their focus should be. C) Blackberry is acting philanthropically toward government. D) Google and Apple are showing their distrust for big government,and their avoidance of contributing toward philanthropic causes.
Workplace technology is relied upon by businesses to increase _____________. Employee turnover Philanthropy Efficiency and effectiveness Malfunction and futility
A company began its fiscal year with inventory of $186,000. Purchases and cost of goods sold for the year were $945,000 and $982,000, respectively. What was the amount of ending inventory?
Answers
Answer:
$78,443.29
Explanation:
we need to use the present value of an annuity formula:
the formula used to determine the present value factor of an annuity is:
present value annuity factor = [1 - 1/(1 + i)ⁿ ] / i
we must divide this into 2 parts:
the first part will deal with the $2,000 monthly payment
the second part deals with the $1,000 monthly payment
i = 9.75% / 12 = 0.8125%
n (first part) = 36
n (second part) = 24
the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)³⁶ ] / 0.8125% = 31.1043
the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)²⁴ ] / 0.8125% = 21.7251
loan = ($2,000 x 31.1043) + ($1,000 x 21.7251)//(1 + 0.8125%)³⁶ = $62,208.60 + $16,234.69 = $78,443.29
= [1 - 1/(1 + 0.0069942)240 ] / 0.0069942 = 116.135183
Final answer:
The bank would calculate the present value of the loan payments to determine how much to lend the small business owner.
Explanation:
The bank would be willing to lend the business owner an amount that corresponds to the present value of the loan payments. To calculate the present value, we need to discount each of the future cash flows to the present time using the bank's annual percentage rate (APR). The formula to calculate the present value of an annuity is:
Present Value = A x [(1 - (1 + r) ^ -n) / r]
Where A is the monthly payment, r is the monthly interest rate, and n is the number of months.
Using this formula, we can calculate the present value of the loan payments and determine how much the bank would be willing to lend the business owner.
Learn more about Bank Loans here:
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Answers
Answer:
the income is $1,330
Explanation:
The computation of the income is shown below;
Given that
U(x, y) = min{x, y2}
Price of x is $25
ANd, the prcie of Y is $15
So,
25X + 15Y = M
if Y = 7,
So,
At eqm, X = Y^2 = 49
Then ,
M = 25 × 49 + 15 × 7
= 1225 + 105
= 1330
Hence, the income is $1,330
The same should be relevant and considered too
For utility maximization, Elmer's income should be $1330, considering his consumption of 7 units of y at $15 each and a maximum of 49 units of x at $25 each.
To find Elmer's income for utility maximization, we need to consider his utility function, the prices of the goods (x and y), and the quantity of y he chooses to consume.
Elmer's utility function is U(x, y) = min{x, y^2}, which means his utility depends on the minimum of x and y^2. In this case, he chooses to consume 7 units of y at a price of $15 each, so his expenditure on y is 7 * $15 = $105.
Now, we need to find out how much he is willing to spend on x to maximize his utility. Since the utility function takes the minimum of x and y^2, we want to make x as small as possible to keep utility high. Let's assume he consumes x units of x.
For utility maximization, x must be the minimum between x and y^2. In this case, x <= y^2, so x <= 7^2 = 49.
Now, we need to find the price of x, which is $25 per unit.
To maximize utility, he should spend his remaining income on x, so his income (I) should satisfy:
I = expenditure on x + expenditure on y
I = (x * $25) + ($105)
We know that x <= 49, so let's assume he consumes the maximum possible x, which is 49. Therefore,
I = (49 * $25) + ($105)
I = $1225 + $105
I = $1330
So, Elmer's income for utility maximization should be $1330.
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Complete question below :
If Elmer's utility function is U(x, y) = min{x, y^2}, and he chooses to consume 7 units of y at a price of $15 each, what must his income be for utility maximization?
Answers
Answer:
Journal entries:
cash 493,574.88 debit
bonds payable 435,000.00 credit
premium on bp 58,574.88 credit
--to record issuance--
Interest expense 19743
Amortization 6357
cash 26100
--to record Dec 31st, 2020--
Interest expense 19488.72
Amortization 6611.28
cash 26100
--to record June 30th, 2021--
bonds payable 130,500.00 debit
premium on bp 13,681.98 debit
interest expense 17,400.00 debit
gain on redemption 25,081.98 credit
cash 136,500.00 credit
--to record redemption--
premium on BP 4,813.04 debit
interest expense 13,456.96 debit
cash 18,270 credit
-- to record December 31st, 2021--
Explanation:
First, we solve for the proceeds from the bonds payable:
C 26,100 (435,000 x 12% / 2)
time 8 ( 4 years x 2)
yield to maturity 0.04 ( 8% / 2)
PV $175,724.6412
Maturity 435,000.00
time 8.00
rate 0.04
PV 317,850.24
PV c $175,724.6412
PV m $317,850.2392
Total $493,574.8804
We now build the amortization schedule.
We take this value, we multiply by the interest rate and then, solve for amortization and ending carrying value.
To record the redemption:
accrued interest:
435,000 x 0.12 x 4/12 (months from June to oct) = 17,400
premium:
480,606.6 - 435,000 = 45,606.6
proportional of premium:
45,606 / 435,000 x 130,500 = 13.681,98
we now solve for the gain/loss on redemption:
130,500 + 13,681.98 + 17,400 = 161.581,9 value redeem
for cash 136,500
gain on redemption 25.081,98
bonds payable 130,500.00 debit
premium on bp 13,681.98 debit
interest expense 17,400.00 debit
gain on redemption 25,081.98 credit
cash 136,500.00 credit
Now, we solve for Dec 31st, 2021 entry.
bonds payable: 435,000 - 130,500 = 304,500
premium: 45,606 - 13,681.98 = 31.924,02
interest expense:
(304,500 + 31,924.02) x 0.04 = 13,456.96
cash outlay:
304,500 x 0.06 = 18,270
amortization 18,270 - 13,456.96 = 4,813.04
Answers
Answer:
Transfer payment
Explanation:
Transfer payment in finance can be as well regarded as " government transfer" it is income and wealth redistribution which occur when payment is made by government without exchange of goods or services in return. It should be noted that Transfer payment is a form of government spending that is not made in exchange for a currently produced good or service. Some of the common transfer payment type is social insurance programs, as well as business subsidies.
Answers
Answer:
Procedural
Explanation:
-Procedural justice refers to having a fair and transparent process that is used to make decisions.
-Interpersonal justice refers to treating people affected by a procedure in a respectful way.
-informational justice refers to letting people know why certain decisions were made.
-Distributive justice refers to a fair distribution of resources among people.
According to this, the answer is that their complaints were related to procedural justice because when they complaint about the form used for evaluating employee effectiveness they are talking about the process that is used to make the evaluations.
The other options are not right because the situation doesn't refer to how people is treated, the information of the process or the distribution of resources.
2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon.
3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.
4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction.
5. Note about later borrowing financials will show loan from parents repaid and use of bank financing.
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Unadjusted trial balance Adjusting entries Adjusted trial balance
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 67,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70
Merchandise Inventory 1,238.07 1,238.07
Consignment Inventory Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 14,000.00
Accumulated Depreciation 1,606.44 1,606.44
Customer Deposit - Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods Sold - Baked 105,834.29 105,834.29
Cost of Goods Sold - Merchandise 859.77 859.77
Rent Expense 24,549.19 24,549.19
Wages Expense 10,670.72 10,670.72
Misc. Supplies Expense 3,000.46 3,000.46
Business License Expense 2,045.77 2,045.77
Misc. Expense 1,363.84 1,363.84
Depreciation Expense 677.86 677.86
Insurance Expense 1,091.08 1,091.08
Advertising Expense 1,549.74 1,549.74
Interest Expense 818.31 818.31
Telephone Expense 490.98 490.98
Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32
Answers
Answer:
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Unadjusted Adjusting Adjusted
Trial balance Entries Trial balance
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 3 1,000 68,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable -
Insurance Baking
Supplies 15,506.70 15,506.70
Merchandise
Inventory 1,238.07 1 3,175 1 4,413.07
Consignment
Inventory 2 200 2 200
Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 4 2,000 4 12,000.00
Accumulated Depreciation 1,606.44 4 4 406.44
Customer Deposit
- Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained
earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods
Sold - Baked 105,834.29 105,834.29
Cost of Goods
Sold -
Merchandise 859.77 859.77
Rent Exp. 24,549.19 24,549.19
Wages Exp. 10,670.72 10,670.72
Misc. Supplies
Expense 3,000.46 3,000.46
Business
License
Expense 2,045.77 2,045.77
Misc.
Expense 1,363.84 1,363.84
Depreciation
Expense 677.86 677.86
Insurance
Expense 1,091.08 1,091.08
Advertising
Expense 1,549.74 1,549.74
Interest
Expense 818.31 818.31
Telephone
Expense 490.98 490.98
Gain/Loss on
disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32
Explanation:
a) Data and Calculations:
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Unadjusted trial balance Adjusting entries Adjusted trial balance
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 67,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70
Merchandise Inventory 1,238.07 1,238.07
Consignment Inventory Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 14,000.00
Accumulated Depreciation 1,606.44 1,606.44
Customer Deposit - Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods Sold - Baked 105,834.29 105,834.29
Cost of Goods Sold - Merchandise 859.77 859.77
Rent Expense 24,549.19 24,549.19
Wages Expense 10,670.72 10,670.72
Misc. Supplies Expense 3,000.46 3,000.46
Business License Expense 2,045.77 2,045.77
Misc. Expense 1,363.84 1,363.84
Depreciation Expense 677.86 677.86
Insurance Expense 1,091.08 1,091.08
Advertising Expense 1,549.74 1,549.74
Interest Expense 818.31 818.31
Telephone Expense 490.98 490.98
Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32
b) The adjustments are made in the Adjusting entries column and referenced accordingly, while the effect is reflected in the adjusted trial balance column.