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1 year ago

Why do governments have to provide public goods and services in a free market economy?

1 answer:

4 0

The government provides goods and services in a free market economy in order to facilitate private trade and transactions.

<h3>What is the role of the government in the free market?</h3>

Even thought the economy is controlled by the private sector in the free market economy, this cannot function without government help.

The government would have to provide public goods and services such as the police in order to enable the transactions in the private sector.

In conclusion, governments have to provide public goods and services in a free market economy to facilitate economic activities.

Find out more on government in the free market at brainly.com/question/10410132

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The following selected account balances are provided for Delray Mfg.

Marina CMI [18]

Answer:

DELRAY MFG.

Income Statement

For the year ended December 31, 2017

Sales $1,250,000

Cost of goods sold 623,840

Gross profit 626,160

General and

Administrative expenses 129,300

Net Income $496,860

DELRAY MFG.

Statement of Cost of Goods Sold

For the year December 31, 2017

Raw Material

Raw material, beginning $37,000

Add: Purchases 175,600

Raw materials available $212,600

Less: Raw material, end 42,700

Cost of raw material used 169,900

Add: Direct labor 225,000

Prime Cost 394,900

Add: Manufacturing overhead 221,090

Manufacturing cost 615,990

Add: Work in process, beginning 53,900

Less: Work in process, Ending 41,500

Cost of Goods Manufactured 628,390

Add: Finished goods, beginning 62,750

Cost of goods available for sale 691,140

Less: Finished goods, ending 67,300

Cost of goods sold $623,840

Explanation:

Income statement is computed by deducting cost of goods sold from the sales of the period to get the gross profit, then deduct the general and administrative expenses to get the net income for the period.

To compute cost of goods sold it started from the raw materials beginning inventory then add the purchases of the raw materials including the handling cost to get the raw materials available. Then deduct the raw materials end to get the cost of raw material used for the period. Add direct labor to get the prime cost and then add manufacturing overhead to the prime cost to get the manufacturing cost. Lastly, add work in process beginning and deduct the work in process end to get the cost of goods manufactured then add the finished goods beginning to get the cost of goods available for sale. And from there we deduct the finished goods ending inventory to get the cost of goods sold for the period.

6 0

3 years ago

Paul splits an investment of $20000 , a portion earning simple interest at a rate of 3.8 % per year and the rest earning at a ra

koban [17]

Answer:

$9,000 (amount invested at 3.8%)

$11,000 (amount invested at 8.1%)

Explanation:

Let us calculate the total interest earned by both investments

Interest earned= 0.06165* 20,000= $ 1,233

Let principal invested at 3.8% be X

Use formula Interest= principal* rate*time in years

Interest= X*0.038*1= 0.038X

Principal invested at 8.1% be (20,000-X)

So Interest = (20,000-X)*0.081*1= 1,620-0.081X

Total interest earned = Interest at 3.8% + Interest at 8.1%

1,233= 0.038X + 1,620 -0.081X

Rearranging

0.043X= 387

X= 387/0.043

X= $9,000 (amount invested at 3.8%)

Substitute in equation

Principal invested at 8.1%= 20,000-X

= 20,000- 9,000

= $11,000 (amount invested at 8.1%)

8 0

3 years ago

The formula for the cross-price elasticity of demand is percentage change in rev: Multiple Choice quantity demanded of B/percent

seropon [69]

Answer:

Quantity demanded of B/percentage change in price of A.

Explanation:

Cross price elasticity of demand is calculated as follows:

= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A

Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.

For Substitute goods:

It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.

For complimentary goods:

It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.

3 0

3 years ago

ABC Company leased equipment to Best Corporation under a lease agreement that qualifies as a finance lease. The cost of the asse

alexandr402 [8]

$12120 is the annual amortization expense

Explanation:

The following formula is used to calculate the annual depreciation expense that will be recorded in the books of accounts

Depreciation = ( cost of the asset minus salvage value) divide by number of years.

Given data in the question: number of years = 10, cost of the asset = $124000, salvage value = $28000

Putting the figures in the formula,

Depreciation expense = ($124000 minus $28000) divide by 10

After solving, we get = $12120

Thus, annual depreciation expense = $12120

7 0

3 years ago

Net sales$688,500 $450,000 Cost of goods sold 337,364 133,200 Determine the 2016 and 2017 trend percents for net sales using 201

alisha [4.7K]

Answer:

Trend- % change in sales = 34.64%

Explanation:

Trend analysis entails determining the performance of a business over time by comparing its performance data from one period to another. The aim of trend analysis is to identify the behavior of a set of ratios over a period of time by comparing them across different years.

To determine the trend for a particular data, we use the formula below

% Change in variable =

(Current year figure - Previous year figure)/Previous year figure × 100

DATA

Current year figure for sales (2017) - 450,000

Previous year figure for sale (2016) - 688,500

% change in sales = (450,000 -688,500)/688,500 × 100 = 34.64%

% change in sales = 34.64%

This implies that the company made sales in 2017 which is 34.64% less than that made in 2016

5 0

3 years ago