trough
Suppose an economy has historically grown at a rate of 1.25%. economic activity decreased every quarter over the past year, but the decline stopped this quarter. the economy is expected to grow at a rate of 1.4% in the near future, but monetary authorities are concerned that inflation may increase. this economy is probably in the _____ stage of the business cycle.
Answer:
$275,000
Explanation:
Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result
<u>Workings</u>
Purchase consideration = 250,000*15 =3,750,000
Percentage acquired = 100%
Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000
Goodwill = 3,750,000=3,475,000 =275,000
Answer:
Increase, Decrease
Explanation:
A decrease in the supply results in many buyers competing for very few goods. If the demand is constant, the quantity supplied and price have an indirect relationship. A decrease in the volume of supplied results in an increase in price. Many buyers will be competing for a few products causing the equilibrium price to increase.
A decrease in supply will cause the quantity available for buyers to buy to decline. Consequently, the volume purchased will be fewer. Equilibrium quantity will, therefore, decrease.
Answer:
The company's net operating income is b. $4,700
Explanation:
The contribution margin ratio is calculated by using following formula:
Contribution margin ratio = (Sales - Total Variable cost)/Sales
Total Variable cost = Sales x (1 - Contribution margin ratio)
Maack Corporation's contribution margin ratio is 18% and the company's sales for a month are $315,000.
Total Variable cost = $315,000 x (1 - 18%) = $258,300
The company's net operating income = Sales - Total Variable cost - Fixed expenses = $315,000 - $258,300 - $52,000 = $4,700
