Answer:
The accrued interest at December 31, 2022 amounts to $3,540
Explanation:
Accrued Interest = Amount borrowed × rate × Number of months/ 12
where
amount borrowed is $88,500
rate is 12%
= $88,500 × 12% × 4/12
= $3,540
The accrued interest for one year note is $3,540
Note: Number of months from September to December will be 4 months that is September, October, November and December.
Answer:
marginal product of labor = 5 widgets per hour
Explanation:
In order to maximize profits, the firm must produce the output quantity where marginal revenue = marginal cost. In this case, the marginal revenue is $2, so the marginal cost must also be $2.
If hiring the last widget maker costs $10 per hour, and the marginal cost per widget is $2, then the worker must be able to produce 5 widgets.
Answer:
Tiger Trade
Cash Flow Statement
Cash flows from operating activities:
- Cash received from sale of products to customers $35,000
- Cash received for sale of services to customers $25,000
- Cash paid to merchandise suppliers ($11,000)
- Cash paid to workers ($23,000)
- Cash paid for advertisement ($3,000)
<u>Total cash flow from operating activities $23,000</u>
Cash flows from investing activities:
- Cash received from the bank for long-term loan $40,000
- Cash paid to purchase factory equipment ($45,000)
- Cash received from the sale of an unused warehouse $12,000
<u>Total cash flow from investing activities $7,000</u>
Cash flows from financing activities:
- Cash paid for dividends to stockholders ($5,000)
<u>Total cash flow from financing activities ($5,000)</u>
Net cash increase $25,000
Cash balance at the beginning of the period $4,000
<u>Cash balance at the end of the period $29,000</u>
Answer:
(A) 22,222.22
(B) 57,142.86
Explanation:
we will divide the deposit by the reserve requirement to know how much will expand the money supply.
4,000/0.18 = 22,222.22
4,000/0.07 = 57,142.86
The reasoning behind this multiplier effect is the following:
you deposit 4,000
the bank leave 18% = 920
And lend the remaninder: 3,080
Then, when this are deposit, again takes the minimun reserve and lend the remainder:
3,080 x 18% = 554.4
3,080 - 554.4 = 2,525.6
This process is repeated giving diminished amount to money available to lend. Thus, finding a limit on the division between fund and reserve requirement.
4,000/0.18 = 22,222.22
