Answer and Explanation:
a. The computation of the cost of goods sold is shown below:
Beginning inventory $32,800
Add: Net purchase
Purchase $248,000
Less: Purchase discount -$6,800
Less: Purchase returns -$10,800
Add: Freight in $18,600
Total net purchased $249,000
Less: ending inventory -$40,800
Cost of goods sold $241,000
2. The year end adjusting entry is
Cost of goods sold Dr $241,000
Ending inventory Dr $40,800
Purchase discount Dr $6,800
Purchase returns Dr $10,800
To Beginning inventory $32,800
To Purchase $248,000
To freight in $18,600
(Being the cost of goods sold is recorded)
b. protective effect plus revenue effect.
c. consumption effect plus redistribution effect.
d. production distortion effect plus consumption distortion effect.
e. None of the above.
Answer:
Option e. is correct
Explanation:
The Terms of Trade is equal to the average price of exports / by the average price of imports. The terms-of-trade refers to the relative price of exports in terms of imports.
Protective effect refers to the wasted resources due to production of good at a higher cost. Consumption effect refers to the loss to consumer due to higher price that leads to less consumption.
Should the home country be "large" relative to the world, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the protective effect plus consumption effect
Answer:
Explanation:
In this scenerio we have to use compound interest formula to find the investmen amount:
FV=PV(1+i)^{n}
FV: Future Value (Ferrari price)
PV: Present Value (Investment amount)
i: interest rate (0.11) (11%)
n: time (8 years)
191,000=PV(1+0.11)^{8}⇒ 191,000=PV×2,3045377697175681
PV= $82,879.96=Investment amount
B. the account that includes transactions like imports and exports, income earned by Americans abroad, and net transfers to other countries.
C. the national income account that tracks all purchases made by businesses within the last six months.
Answer:
The account that includes transactions like imports and exports, income earned by Americans abroad, and net transfers to other countries.
Explanation:
A current account can be defined as an account that record the different transactions a country carries out with another country. A current account comprises of net primary income, earnings from foreign investors that have occurred within a particular period of time.
Almost all countries are involved in trading of goods and services with another country, a current account helps to evaluate the manner in which a particular country traded their different goods with foreign markets.There tends to be a postive balance of a country exports more goods than it imports.
Answer:
A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation:
Debt contracts are formed when a borrower agrees to repay a lender. Convenants are usually used to settle disputes between the borrower and the lender. Convenants limits the the extent to which debtors take risks, dividend payouts, claim dilution, and other activities that can cause the lender to lose money.
Debt contracts are obtained by businesses to finance short term operations activities or long term expansion plans.
Answer: A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation: A debt contract is an agreement in which a borrower agrees to repay funds borrowed to a lender. Usually classes into a short-term and long-term debt contracts, they are used in raising money for working capital or capital expenditures and in return for lending the money, the individuals or institutions become creditors and receive a promise that the capital and interest on the debt will be repaid (usually in fixed amounts over a period of time) in accordance with the terms of the contract. Debt contracts include detailed provisions on collateral involved, interest rate, the schedule for interest payments, and the timeframe to maturity if applicable.
Answer:
$10.49
Explanation:
The computation of the net asset value of the fund is shown below:
= (Market value of the assets - market value of the liabilities) ÷ number of oustanding shares
where,
Market value of assets is
= (200,000 × $35) + (300,000 × $40) + (400,000 × 20) + (600,000 × 25)
= $42,000,000
So, the net asset value of the fund is
= ($42,000,000 - $30,000) ÷ (4,000,000)
= $10.49
Answer:
The company's residual operating income (ROPI) for 2017 is $9,960. The right answer is D.
Explanation:
In order to calculate the company's residual operating income (ROPI) for 2017 we would have to use the following formula:
Company's Residual operating Income = NOPAT - [ WACC x NOA at beginning ]
Where, NOPAT = Net operating profit after tax for 2017 = $10,200, WACC = weighted average cost of capital = 6%
NOA at beginning = Net operating assets at beginning of the year (NOA of 2016 closing) = $18,800 - $14,800 = $4000
Therefore, Company's residual operating income = $10,200 - [ 6% x $4000 ] = $9,960