Answer:
d. If the manager invests in the additional project, residual income of the division will increase.
Explanation:
RI = Operating Income - (Operating Assets x Minimum Required Rate of Return)
with adding the additional project
Operating Income: $60000 +6000 =$66000
Operating Assets: $375000+$40000 =$415000
Residual income =$66000-14%*$415000 =$7900
Consider the attached information.
Answer:
3.05%
Explanation:
According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.
Mathematically,
(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1
Here,
r2,0 is the rate of interest for 2 year treasury security from today
r1,0 is the rate of the interest for 1 year treasury security from today
r1,1 is the rate of the interest for 2 year treasury security from Year 1
By Putting Values, we have:
(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1
(1 + r2,0)^2 = 1.06184
By taking square-root on both sides, we have:
(1 + r2,0) = 1.0305
r2,0 = 3.05%
Answer:
Supplies Expense 1625 Dr
Supplies Account 1625 Cr
Explanation:
First, we need to determine the supplies expense for the period. The supplies expense can be calculated by deducting the year end supplies balance from the supplies account balance.
The supplies expense = 2600 - 975 = $1625
The adjusting entry that will be made at the end of the period is,
Supplies Expense 1625 Dr
Supplies Account 1625 Cr
Larger vehicles with larger motors because they use oil whereas electric cars run on electricity,biofuels refers to oils if people invest to extract it they can earn money,solar energy is free and doesn’t require anything. Hence, people tend to spend less on larger machines with larger motors.
Answer: Has increased.
Explanation: Income per person has increased over the years because the cost of living and expenses have also increased. As the cost of items go up, income increases to help consumers be able to afford living and purchasing goods and services.
