Option C. Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts: the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information
<h3>What is demand?</h3>
This is the term that is used to refer to the number of people that are willing to buy a product at a given wage rate.
When there is a rise in the demand of cars, there would be a rise in rhe equilibrium price of the cars.
Complete question
Suppose there is an increase in the number of buyers of cars and an increase in the cost of manufacturing cars. The basic graphing model of supply and demand predicts:
A. The equilibrium, quantity of cars will decrease, but the impact on the equilibrium price of cars cannot be determined without additional information
B. The equilibrium quantity of cars will increase, but the impact on the equilibrium price of cars cannot be determined without additional information.
C. the equilibrium price of cars will increase, but the impact on the equilibrium quantity of cars cannot be determined without additional information
D. the equilibrium price of cars will decrease, but the impact on the equilibrium quantity of cars cannot be determined without additional information
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Answer:
S/n Account Title and Explanation Debit Credit
a. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
b. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
Answer:
e) $37.05
Explanation:
Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.
So we discount the year 3 dividend using the dividend growth model formula
P = D (1+g)/r-g
r- rate of return, g = growth rate
Present value of the future dividends:
PV of Year 1 = 1.55(1.015)m × 1.12^(-1)
= 1.4047
PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)
= 1.27
PV of Year 3 (this will be done in two steps)
Step 1; PV (in yr 2) of year 3 dividend
= (1.55)(1.015)^2×(1.08)/(0.12-0.08)
=43.114
Step 2 : PV (in yr 2) of year 3 dividend
=43.114 × (1.12^(-2))
= 34.37
Best estimate of stock = 1.40 + 1.27 +34.37
= $37.05
Note
To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0
Explanation:
strengths:
1. He or she enjoys all the profit
2. easy to start up
3. decision making is quick
4.he or she can vary the hours of work
weakness:
1.there is lack of finance
2. lack of specialised staff
3.the owner bears all the risk
4.there is unlimited liability
who might start a sole proprietor business
1. a person that wants to be their own boss.
2.extra income.
3.the entrepreneur might think he will make more money working for his self than others.
Answer and Explanation:
The Journal entry is shown below:-
a. Cash Dr, $20,811,010
To Bonds payable $20,000,000
To Premium on Bonds payable $811,010
(Being issuance of the bond is recorded)
For recording this we debited the cash as it increased the assets and at the same time it also increased the liabilities so the bond payable and premium is credited
b. Interest expenses Dr, $818,899
Premium on Bonds payable $81,101 ($811,010 ÷ 5 × 6 ÷ 12 )
To Cash $900,000 ($20,000,000 × 9% × 6 ÷ 12)
(Being interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it reduced the assets plus the remaining balance is debited to premium on bond payable
c.The contract rate of interest is higher than market rate of interest.
