Answer: money supply curve to the left.
Explanation:
The sale of Treasury Bills by the Fed is part of its contractionary monetary policy and is used to reduce the amount of money in the economy. By selling the bills, people pay money to the Fed which then takes the money out of circulation thereby reducing the amount of money in the economy.
The effect of this would be a leftward shift in the money supply curve to indicate that there is now less money in the economy. The Fed does this when it feels that the economy is overheated and so economic growth needs to be reduced to a more sustainable level.
Answer:
$45,000
Explanation:
Data provided in the question:
Selling cost of the furniture on May 1, 2015 = $300,000
Original cost of the machine on January 1, 2008 = $750,000
Depreciable Life of the furniture = 10 years
Salvage value = $75,000
Now,
Annual depreciation =
or
Annual depreciation =
or
Annual depreciation = $67,500 per year
The total duration from the date of purchase to date of selling
= 7 years 4 months
or
= 7 × 12 + 4 months
= 88 months
= years
therefore,
The total accumulated depreciation till the date of sale
= Annual depreciation × Duration
= $67,500 ×
= $495,000
Thus,
The book value on May 1, 2015
= Purchasing cost - Accumulated depreciation
= $750,000 - $495,000
= $255,000
Hence,
The gain recognized = Selling cost - Book value
= $300,000 - $255,000
= $45,000
Answer and Explanation:
The preparation of the stockholders' equity section of the balance sheet for the company is shown below:
Common stock $410,000
Add: Preferred stock $1,700,000
Add: Retained earnings $1,250,000
Add: Additional paid in capital $6,900,000
Less: treasury stock -$660,000
Total amount $9,600,000
We simply added the all the items except the treasury stock as it is to be deducted and the same is shown above
Answer:
The inventory turnover is 0.5
Explanation:
Inventory turnover ratio or stock turnover ratio is ratio which tells about how much of inventory company has sold and how much of it is left. This ratio helps management in making right decisions regarding pricing and marketing strategy, manufacturing etc.
FORMULA FOR CALCULATING INVENTORY TURNOVER RATIO =
Here we will take cost of goods sold not sales because by taking cost of goods sold we will get better accuracy , as sales will include a mark up over cost.
Average inventory will include raw material inventory, finished goods and work in progress
Therefore the average turnover ratio is 0.5
Answer:
a write-off using the allowance method will not change the net receivables.
Explanation:
accounts receivable 2,500
Allowance for Uncollectible Accounts (500)
net receivable 2,000
a write-off using the allowance method will not change the net receivables.
after the write-off both, Ar and the allowance decrease by 80
<u>so the net receivable keeps at the same value</u>
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accounts receivable 2,420
Allowance for Uncollectible Accounts (420)
net receivable 2,000