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3 years ago

What type of activity is the purchase of equipment for cash?

1 answer:

6 0

<span>Acquisition or Procurement is the means on how equipment is bought for businesses and the military. However for peoples own personal use, shopping is the more common everyday word.</span>

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Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18

sineoko [7]

Answer:

a. Output gap for 2017 = –0.66%

b. Output gap for 2018 = 0.27%

c. From 2017 to 2018, the output gap became more positive.

Explanation:

The following are given in the question:

Year Potential GDP Real GDP

2017 $18.17 trillion $18.05 trillion

2018 $18.51 trillion $18.56 trillion

To calculate output gap in percentage form, the following formula is used:

Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)

Therefore, we have:

a. Calculate the output gap for 2017. %

Using equation (1), we have:

Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%

b. Calculate the output gap for 2018. %

Using equation (1), we have:

Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%

c. From 2017 to 2018, the output gap became more .

Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.

8 0

3 years ago

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer

laila [671]

Explanation:

The Journal entry is shown below:-

On Jan 31

Allowance for doubtful accounts $2,800

To Accounts receivable - C. Green $2,800

(Being the uncollectible amount is recorded)

Mar 09

Accounts receivable - C. Green $2,300

To Allowance for doubtful accounts $2,300

(Being the written off amount is recorded

Mar 09

Cash $2,300

To Accounts receivable - C. Green $2,300

(Being the payment is received is recorded)

7 0

3 years ago

Read 2 more answers

Industrial Machines needs to purchase a new machine costing $1.25 million. Management is estimating the machine will generate ca

max2010maxim [7]

Answer:

The firm shouldn't purchase the machine because the IRR is less than the required minimum

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a financial calcuator

Cash flow in year 0 = $-1.25 million.

Cash flow in year 1 = $210,000

Cash flow in year 2 to 5 = $350,000

IRR = 8.51%

The firm shouldn't purchase the machine because the IRR is less than the required minimum

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

8 0

3 years ago

True Furniture Co., Ltd. produces desks and cabinets for computers. The production process is largely divided into woodworking a

Tanya [424]

Answer:

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Explanation:

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4 0

3 years ago

_____ are expense items that do not become part of a final product. select one:

yarga [219]

Business services are expense items that do not become part of a final product.

Business services are intangible items such as IT, finance, management, shipping and more. These services support each other but do not become part of the final product. Installations and supplies are both part of the final product. Supplies to build and installations to put together.

4 0

3 years ago