I think c is the correct answer
Answer:
D) the AD curve will shift out, causing an increase in the Japanese price level, but not change in output.
Explanation:
If the government starts to increase spending, the total income will increase, shifting the AD curve outwards. Generally this situation would increase both the general price level (inflation) and total output (AS curve). But since the economy is already at full employment, real output will increase minimally (if any increase at all). The largest effect will be felt in the rise of inflation.
Answer:
The answer is C.
Explanation:
A decrease in inventory means customers are buying inventories (goods) from the business. It is an inflow because money comes in.
Option A is incorrect because a decrease in common stock means shareholders are withdrawing their shareholding from the business and the business will pay them. This is an outflow.
Option B is incorrect because a decrease in long term debt means the business is paying its debt or redcuing its liability and this is an outflow.
Option D is also incorrect because an increase in fixed assets means the business is buying this asset with cash and this is an outflow
Answer:
Cost of Goods Sold is = $697213.44
Explanation:
given data
depreciation expenses = $28,900
sales = $755,000
retained earnings = $10,200
paid interest = $6,200
dividends = $5,000
tax rate = 33 percent
solution
first we get here EBIT that is express as here
EBIT = Earnings for equity holders + Tax + Interest ...............1
Earnings for equity holders = Dividend Paid + retained earnings
Earnings for equity holders = $5,000 + $10,200 = $15200
here Tax is = 
× 33 = 7486.56
so here EBIT = $15200 + $7486.56 + $6,200
EBIT = $28886.56
so Cost of Goods Sold is = sales - depreciation - EBIT ..................2
Cost of Goods Sold is = $755,000 - $28,900 - $28886.56
Cost of Goods Sold is = $697213.44
<span>Implicit Cost Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer $452,000
The salary Darnell could earn if he worked as an accountant $48,000
The wages and utility bills that Darnell pays $301,000
The rental income Darnell could receive if he chose to rent out his showroom $38,000
B.
Profit ($)
Accounting Profit 842,000 - 452,000 - 301,000 = 89,000
Economic Profit 842,000 - 452,000 - 301,000 - 48,000 - 38,000 = 3,000
C. Economic Profit as an accountant = 48,000 + 38,000 - 89,000 = -$3,000. Thus, Darnell should stay in the Piano business to maximize the Economic Profit.</span>
