The key idea of the aggregate expenditure model is that in any particular year, the level of gdp is determined mainly by.

For each of the following accounts, identify whether that item is an asset, liability, or equity account. Account Classificati

Ulleksa [173]

Answer:

a. Bonds payable Liability account

b. Equipment Asset account

c. Accounts payable Liability account

d. Salaries payable Liability account

e. Common stock Equity account

f. Retained earnings Equity account

g. Cash Asset account

h. Accounts receivable Asset account

i. Sales revenue Equity account

j. Inventory Asset account

Explanation:

All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.

All the account with credit nature is either classified as Liability or Equity accounts. Equity accounts are common stock, retained earning and sales revenue. Liabilities accounts are bond payable, account payable and salaries payable.

8 0

3 years ago

The potential gross income of a warehouse is $4,200 a month and the vacancy rate is 2 1/2%. The taxes are $3750, the monthly mai

Marrrta [24]

Answer:

$238,320

Explanation:

First we should determine the total yearly revenue:

$4,200 (monthly income) x 12 = $50,400 - 2.5% (vacancy rate) = $49,140

Now we must determine the expenses:

monthly maintenance costs = $350 x 12 = $4,200 per year

taxes = $3,750 per year

monthly reserves for replacement = $250 x 12 = $3,000 per year

management fees = $500 x 12 = $6,000 per year

quarterly landscaping fees = $600 x 4 = $2,400 per year

Total revenues $49,140

maintenance costs ($4,200)

taxes ($3,750)

reserves for replacement ($3,000)

management fees ($6,000)

<u>landscaping fees ($2,400) </u>

net profit per year $29,790

warehouse value = $29,790 / cap rate = $29,790 / 12.5% = $238,320

5 0

3 years ago

Pl lumber stock is expected to return 22 percent in a booming economy, 15 percent in a normal economy, and lose 2 percent in a r

LekaFEV [45]

Expected rate of return Probabilities
Booming 22% 5%
Normal 15% 92%
Recession 2% 3%

The expected rate of return on this stock is solved by multiply each expected rate of return to its corresponding probability and getting the sum of all products.

Booming: 0.22 x 0.05 = 0.011
Normal: 0.15 x 0.92 = 0.138
Recession 0.02 x 0.03 =<u> 0.0006</u>
Sum total 0.1496 or 14.96% is the expected rate of return on this stock

3 0

3 years ago

When qualifying a buyer using the Fannie Mae guidelines, what is the ratio allowed for the amount of money for housing expense c

vfiekz [6]

Answer:

28%

Explanation:

Most mortgage lenders, including Fannie Mae, use the 28/36 rule. That rule states that a family should spend no more than 28% of the gross monthly income (GMI) on housing expenses, and pay no more than 36% of GMI to cover debts (mortgage payments are included in this 36%).

Statistics show that households that do not comply with the 28/36 rule, tend to have difficulty paying back loans.

8 0

3 years ago

On July 1, Dichter Company obtained a $2,000,000, 180-day bank loan at an annual rate of 12%. The loan agreement requires Dichte

belka [17]

Answer: 12.67%

Explanation:

The effective interest rate on a borrowing is the net annual interest cost divided by the net available proceeds from the borrowing. Dichter gross annual interest cost is $240,000 ($2,000,000 x 12%). Dichter is required to maintain a compensating balance of $400,000, which is $200,000 more than their normal balance of $200,000. Therefore, Dichter earns incremental annual interest revenue of $12,000 ($200,000 x 6%) on the excess compensating balance. The net annual interest cost is $228,000 ($240,000 - $12,000). The net available proceeds from the borrowing is $1,800,000 ($2,000,000 loan less $200,000 excess compensating balance). Therefore, the effective annual interest rate is 12.67%

6 0

3 years ago

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