Answer:
Simple rate of return on Investment = 6.34%
Explanation:
As per the data given in the question,
Initial investment = $804,600
Realisable value = $22,400
Net cash flow = $804,600 - $22,400
= $782,200
Annual income:
Net income = Cash savings - Depreciation
= $139,000 - $89,400
= $49,600
Simple rate of return on Investment = Net income ÷ Net cash flow
= $49,600 ÷ $782,200
= 0.0634
= 6.34%
Answer:
d. I, II and III.
Explanation:
Under the direct written off method, there is no allowance to be made so the journal entry is as follows
Bad debt expense XXXXX
To Account receivable XXXXX
(Being the bad debt expense is recorded)
When it seems that the account is determined to be uncollectible that it would be recorded as a bad debt expense plus it results into overstated of account receivable i.e to be shown on the balance sheet. And, neither it is to be consistent with GAAP and the accrual accounting
Y=30 because adding 3 on to 8 gets you 11 and you have to do the same for both x and y
Answer:
Income elasticity of demand = - 0.56
Explanation:
Given,
P=10, Pc=100, Pd=2, A=5, and I=50.
So,
Q=200-5(10)-.1(100)-.5(2)+.2(5)-(50).
Q=90 (level of income)
Computation:
Given , I = 50, Q = 90.
ΔQ / ΔI = -1
Income elasticity of demand = (ΔQ / ΔI) x (I / Q)
Income elasticity of demand = - 1 x (50 / 90)
Income elasticity of demand = - 0.56
Answer:
If increasing the level of capital from $8 million to $12 million increases real GDP from $4 to $6 million, then a further increase of the level of capital from $12 to $16 million should increase the real GDP but not in the same proportion, i.e. it will not increase the real GDP from $6 million to $8 million.
An increase in the level of capital will increase investment in the economy, but unless productivity or technological progress increases, then the gains will tend to be smaller every time.
Investment is the greatest driver of economic growth, but it cannot do it all by itself. Productivity must increase, and generally when investment increases, productivity increases due to technological progress. E.g. You deliver packages on a bicycle and are able to deliver 10 packages per day. If the company gives you a delivery truck (increase in investment and technology) then you will be able to deliver 30 packages per day and your productivity will have increased by 200%.
