Answer:
The inflation rate is different using the two methods as the rate of inflation calculated by the CPI holds basket of goods and services constant while the GDP deflator allows it to change.
Explanation:
i. Value of market basket of the good in 2020 = ($50*2) + ($5*6) = $130
Value of market basket of the good in 2021 = ($70*2) + ($6*6) = $176
CPI in 2020 = ($130 / $130) * 100 = 100
CPI in 2021 = ($176 / $130) * 100 = 135.38
Thus, The percentage change in overall price level is = [(135.38 - 100) / 100) * 100 = 35.38%
ii. Nominal GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Nominal GDP in 2021 = ($70 * 21) + ($6 * 80) = $1950
Real GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Real GDP in 2021 = ($50 * 21) + ($5 * 80) = $1450
GDP deflator in 2020 = (Nominal GDP in 2107 / Nominal GDP in 2107) * 100 = ($1300 / $1300) * 100 = 100
GDP deflator in 2021 = (Nominal GDP in 2108 / Nominal GDP in 2108) * 100 = ($1950 / $1450) * 100 = 134.48
Thus, the percentage change in overall price level is = [(134.48 - 100) / 100) * 100 = 34.48%
Answer:
Explanation:
Terminal or horizon date is a point in time where a company's dividend experiences a constant growth rate.
In this case, it is mentioned that non-constant growth rate of 20% will happen for first two years and thereafter, a constant rate of 5%; this means that
D1= 1.25(1.20) =1.5
D2 = 1.5 (1.20)= 1.8
Then starting at D3, there's a constant growth rate = 5% so,
D3 = 1.8 (1.05)= 1.89
D4 = 1.89(1.05)= 1.9845
D5 = 1.9845 (1.05) = 2.0837
.....and so on
Therefore, the horizon date would be at the end of the second year i.e. End of Year 2.
Answer:
The correct answer is letter "C": use the indirect strategy.
Explanation:
While giving messages there are two main approaches: <em>the direct </em>and <em>indirect strategy</em>. The direct strategy is used when the main idea of the message is given at the beginning of the speechy to impact or shock the audience. Details of the idea are provided subsequently. The indirect strategy, instead, starts by providing the details to the audience to finally come up with a conclusion.
Thus, <em>while providing refusals, it is more appropriate to use the indirect strategy so customers will know the reason for the non-approval to confirm the negative news at the end.</em>
Answer:
Explanation:
(A) The preparation of the bank reconciliation statement on July 31, 2017 is presented in the spreadsheet. Kindly find the attachment below:
(B) The journal entries are shown below:
Cash A/c Dr $2,576
To Accounts receivable $,2576
(Being cash is collected)
Bank service charges expense A/c Dr $51
To Cash A/c $51
(Being bank service charges paid)
Answer:
$ 13.17
Explanation:
Data provided :
Material cost in the beginning = $ 126,000
Additional material cost = $ 32,000
thus,
the total material cost = $ 126,000 + $ 32,000 = $ 158,000
Units in the work in progress = 12,000 units
Therefore, the material cost per unit for July = (Total material cost) / (Units being produced)
on substituting the values in the above relation, we get
he material cost per unit for July = ( $ 158,000 ) / ( 12,000 units )
= $ 13.1667 ≈ $ 13.17
