Distinguished scholars are usually attracted to teaching at a

Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = 0.6, how much will

grin007 [14]

Answer:

option (D) $50 billion.

Explanation:

Data provided in the question:

Additional investment spending = $20 billion

MPC = 0.6

Now,

Increase in aggregate demand = [1 ÷ (1 - mpc) ] × Investment

or

Increase in aggregate demand = [1 ÷ (1 - 0.4) ] × $20 billion

or

Increase in aggregate demand = (1 ÷ 0.4) × $20 billion

or

Increase in aggregate demand = 2.5 × $20 billion

or

Increase in aggregate demand = $50 billion

Hence.

the correct answer is option (D) $50 billion.

5 0

3 years ago

The following information is available for Windsor Inc. for the year ended December 31, 2017:_______.

Lapatulllka [165]

Answer:

Requirement

Prepare Income statement

Calculate the per share of common stock

Windsor Inc.

Income statement for the year ended December 31, 2017

Sales $3,775,000

Less: Cost of goods sold $1,648,000

Gross profit $2,127,000

Operating expenses

Selling expenses $876,000

Administrative expenses $507000

Total operative expenses $1,383,000

Operative income $744,000

Other revenues and (expenses):

Rent revenue $98000

Gain on sale of equipment $31000

Interest expenses ($57,000) $72,000

Income before income taxes $816,000

Income tax applicable to continuing $297,000

operations

income from continuing operations $519,000

Discontinued operations:

Loss on discontinued operations ($66000)

Income tax applicable to loss on ($23,000)

discontinued operations

Total discontinued operations $89,000

Income before extraordinary item $430,000

Extraordinary item:

Loss on write-down of inventory ($37000)

Income after extraordinary item $393,000

Other comprehensive income:

Unrealized gain on available-for-sale securities $27,000

Comprehensive Income $420,000

EPS = Net Income of a company / Outstanding Shares

EPS = $420,000/200,000

EPS = $2.1 per share

4 0

4 years ago

Need help!

Romashka [77]

Answer:

1. Journal entries are quicker and more comfortable in the manual accounting

2. Posting is easier in computer software-based accounting

3. Trial balance adjustment in manual accounting is tricky. However, a lengthy process may pose a challenge for computerized accounting.

4. Financial statements are more straightforward in software-based accounting than manual accounting

Explanation:

The introduction of accounting software such as QuickBooks has transformed the working for accounting professionals. The conventional accounting system replacement has made the job more comfortable. However, there are new challenges added, such as learning the software, making error-free inputs, and pace of computer-related entries. However, considering that once these skills are learned, the overall job is easier than before.

1. Journal entries in manual are made quicker, and errors can be rectified. However, entries are linked automatically to their respective ledgers that solve the challenges with compound entries

2. Posting is simpler in software as the general ledger is created on a single click. Manual posting requires time and efforts

3. Adjusted entries need to manual input in conventional method to create the adjusted trial balance whereas, in software, its added through adjusting journal entries.

4. Financial statements are much more straightforward in software as they are available on one click, whereas in manual accounting, they are required to be calculated.

4 0

3 years ago

Which of the following describes the infant industry argument for protectionism?

Alchen [17]

Answer:

a. Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.

Explanation:

According to the infant-industry theory, new industries in emerging and developing economies need protection for unfair competition from industries in advanced economies. The new industries need time to grow and develop economies of scale that can match those from more developed economies.

Economists describe infant industries as those in their early stages of development and, as such, cannot compete favorably with established rivals. Proponents of Infant-economies protection argue that infant industries need protection from international competitors capable of flooding domestic markets with cheaper goods. Protection assist infant industries to mature and develop economies of scale.

4 0

3 years ago

Drake operates a trucking business, and one of his trucks was damaged in a traffic accident. The truck was purchased for $52,000

maw [93]

Answer:

The amount of Drake’s casualty loss deduction is $3,000

Explanation:

The deduction amount would be less of the adjusted basis or net cost of the truck

where,

Adjusted basis = $22,000

And, the net cost would be equal to

= Repair cost - reimbursement cost of insurance

= $5,000 - $2,000

= $3,000

So, by comparing both the amounts, the $3000 would show a lesser amount than adjusted basis ($22,000)

And, the purchase cost of the truck would be ignored. Thus, it is not considered in the computation part.

7 0

3 years ago