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2 years ago

When the mpc = 0.75, the desired tax cut for achieving a $300 billion fiscal stimulus is _____.

1 answer:

6 0

Based on the marginal propensity to consume, the required tax cut to get a $300 billion stimulus is $400 billion.

<h3 /><h3>How much of a tax cut is needed?</h3>

This can be found by the formula:

= Required fiscal stimulus / Marginal propensity to consume

Solving gives:

= 300 / 0.75

= $400 billion

In conclusion $400 billion of tax cuts are needed.

Find out more on marginal propensity to consume at brainly.com/question/17930875.

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Fiber-optic cable most likely would be used in a business network when (1 point) saving money is more important than speed. the

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When electrical or magnetic interference is present

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3 years ago

Near the end of 2010, the ledger of Stivers Company included the following accounts and balances: Allowance for Doubtful Account

Minchanka [31]

Answer and Explanation:

The computation of the balances of the Allowance for Doubtful Accounts, Bad Debt Expense and Accounts Receivable is shown below;

For Accounts receivable

a) Opening balance $200,000 Debit balance

b) Current year credit sales (75% of $800,000) $600,000 Debit balance

c) (-) Current collection from accounts receivables -$450,000 Credit balance

d) (-) Bad debt expenses -$11,000 Credit balance

e) Closing balance of accounts receivables $339,000 Debit balance

for Allowance for Doubtful Accounts

Allowance required as per Current year analysis (2% of (75% of $800,000) $12,000 Credit balance

(-) Opening balance $1,000 Credit balance

$11,000 Credit balance

The journal entry is

Bad debt expense a/c …Dr 11000

To Allowance for Doubtful Accounts 11000

The Closing balance of Allowance for Doubtful Accounts 12000 Credit balance

For Bad debt expenses

The journal entry is

Bad debt expense a/c …Dr 11000

To Allowance for Doubtful Accounts 11000

The Closing balance of Bad debt expense account 0

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3 years ago

Here are the comparative income statements of Ayayai Corp..

Georgia [21]

Answer:

Ayayai Corp.

Horizontal Analysis:

2020 Increase 2019

Net sales $632,600 $110,700 21.2% $521,900

Cost of goods sold 463,600 53,200 13.0% 410,400

Gross Profit 169,000 57,500 51.6% 111,500

Operating expenses 79,300 32,100 68.0% 47,200

Net income $ 89,700 25,400 39.5% $64,300

Explanation:

a) Data and Calculations:

AYAYAI CORP.

Comparative Income Statement For the Years Ended December 31

2020 2019

Net sales $632,600 $521,900

Cost of goods sold 463,600 410,400

Gross Profit 169,000 111,500

Operating expenses 79,300 47,200

Net income $ 89,700 $64,300

Percentage increase or decrease = (Increase/Decrease)/Base Year's Value

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3 years ago

Which of the following is correct with respect to Debt Service Funds?

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Answer:

C. Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

Explanation:

Debt service funds are used to pay for principal and interest on certain types of debts. This reduced the risk of debt security that investors face and also reduces the effective rate at which the offering can be sold.

However debt service funds cannot be used for proprietary funds like 400 and 500.

Instead we use Enterprise funds for 400. That is operations similar to corporate enterprise. For example water and sewage utilities.

Internal service funds for 500 used by other funds or departments bin a government in a cost reimbursement basis. For example a food supplier that takes orders and is reimbursed for each order.

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3 years ago

Read 2 more answers

Page 81 3.2. What determines demand? Consider the market for caramel and butterscotch ice cream toppings. For each price change,

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Answer:

The price of ice cream increases - The demand for caramel topping will decrease

The price of caramel topping decreases - The demand curve for caramel topping will remain the same.

The price of butterscotch topping increases - The demand for caramel topping will increase.

Explanation:

If the price of icecream increases , it would become expensive to make them. So producers would reduce quantity supplied of ice cream. As a result of the reduced supply, there would be less demand for caramel toppings.

Caramel and butterscotch toppings are subsituites. If the price of butterscotch toppings increase, the demand for caramel toppings would increase.

If the price of caramel toppings reduce, the quantity supplied would fall. This would lead to a movement along the demand curve and not a shift of the demand curve.

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3 years ago