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Anton [14]
3 years ago
13

Assume that you live in a simple economy in which only three goods are produced and​ traded: cashews,​ pecans, and almonds. supp

ose that on january​ 1, 2015, cashews sold for ​$12.50 per​ pound, pecans were ​$5.00 per​ pound, and almonds were ​$5.00 per pound. at the end of the​ year, you discover that the cashew crop was lower than expected and that cashew prices had increased to ​$13.00 per​ pound, but pecan prices stayed at ​$5.00 and almond prices had actually fallen to ​$4.75.
Business
1 answer:
svetlana [45]3 years ago
6 0

Answer: The overall price level increased.

Explanation: The rise in the overall price level is termed as inflation. From the information we can see that the average price of the three goods in 2015 was $7.50. A year later, the average price changed to $7.58.

Therefore, the overall price level rose as the average price level increased from $7.50 to $7.58.

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Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne
VladimirAG [237]

Answer:

$1,269.46

Explanation:

Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.

To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)

Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)

= $75 + $418 = $493 - This represents a partial net income

The next step is to calculate the taxable income as follows:

The net income is $493, and the Tax rate is 35%

Taxable Income = $493/ (1-0.35) = $758.46

Earnings before interest and tax therefore =

Interest paid + Taxable Income

= $511 + $758.46 = $1,269.46

7 0
3 years ago
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $34,000 (
MrRissso [65]

Answer:

1. $51,000

2.$11,000 Gain

Explanation:

(1) Calculation to determine At what amount will Calaveras value the pickup trucks

Using this formula

Trucks value =Fair value + Cash paid

Let plug in the formula

Trucks value=$45,000+$6,000

Trucks value=$51,000

Therefore Calaveras value the pickup trucks at $51,000

(2) Calculation to determine How much gain or loss will the company recognize on the exchange

Using this formula

Gain or loss on exchange =Fair value - Book value

Let plug in the formula

Gain or loss on exchange=$45,000-$34,000

Gain or loss on exchange=$11,000 Gain

Therefore the company will $11,000 GAIN recognize on the exchange

6 0
2 years ago
Why was it sometimes difficult to balance a checking account to a statement?
Juliette [100K]
Because sometimes the check written after the statement closing dates.

Lets say a company do a closing statement on December 26.

 A check written between that date until the end of period ( December 26 - December 31), that transaction simply won't appear on the book because the company already closed the statement on December 26
6 0
3 years ago
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 5,000 shares of $
asambeis [7]

Answer and Explanation:

1. Cash Dr, $120,000

         To Common Stock $100,000    (5,000 × $20)

         To Additional Paid - in - Capital in Excess of Par $20,000

(Being issue of common stock is recorded)

2. Cash Dr, $28,000

         To Common Stock Dr, $2,500   (2,500 × $1)

         To Additional Paid - in - Capital in Excess of Stated $31,500

(To record issue of common stock to promoters)

3. Organization Expenses Dr, $28,000

          To Common Stock Dr, $28,000

(Being issue of common stock in exchange of organization expenses is recorded)

4. Cash Dr, $121,750

          To Preferred Stock $93,750  (1,250 × $75)

          To Additional Paid - in - Capital in Excess of Par (Preferred) $28,000

(Being issue of Preferred stock is recorded)

8 0
3 years ago
Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of amountain bike. MBI, a merchant who deals in goods of t
elena-s [515]

Answer:

B) making warranties easier to understand.

Explanation:

The Magnuson Moss Warranty Act of 1975 governs consumer product warranties. Manufacturers are not required to offer product warranties, but when they do, they are required to provide clear and detailed information about warranty coverage. This law applies only to products, it doesn't apply to services.

3 0
3 years ago
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