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3 years ago

Explain the chain of cause and effect reactions since the mid-1990s that led to lower book prices for American consumers.

1 answer:

3 0

Answer:
The free enterprise system created many smaller booksellers who competed with the giant booksellers such as Borders and Barnes & Noble.
Competiton from smaller booksellers in the mid-1990s is the cause that created an effect.

To remain competitive and profitable, the giant booksellers used their purchasing power to buy books in large volumes. Doing so enabled them to enjoy huge discounts and to pass on the savings to the customer.
The effect was to lower book prices for American consumers.

To summarize, competition in a free-enterprise system is the cause, and the lowering of book prices is the effect.

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Exercise 2-6 Analyzing account entries and balances LO A1 Use the information in each of the following separate cases to calcula

VARVARA [1.3K]

Answer:

a) Corentine Co.

Cash paid to suppliers:

Beginning balance, September 30 $152,000

Purchases $281,000

Ending balance, October 31 $132,500

Cash paid $300,500

b) Valerian Co.

Sales to customers on account:

Ending balance, October 31 $89,000

Cash collected $102,890

Beginning balance, September 30 $102,500

Sales $89,390

c) Alameda Company

Cash balance on September 30:

Cash disbursements $103,150

Balance, October 31 $18,600

Cash receipts $102,500

Balance, Sept. 30 $19,200

Explanation:

The unknown amount for each case is the difference between the opening balance, the transactions for the month of October and closing balance.

5 0

3 years ago

The term inflation is used to describe a situation in which

photoshop1234 [79]

Answer:

The correct answer is option b.

Explanation:

Inflation refers to the continuous and sustained growth in the general price level. As the price level rises, it reduces the purchasing power or value of cash balances held by the consumers to reduce. This causes real income to decline.

A certain level of inflation is desirable in an economy to promote growth but a high rate of inflation is harmful. Inflation can be of several types such as

Demand-pull inflation
Cost-push inflation

There are several measures used to calculate inflation, for instance, the consumer price index. To correct inflationary pressures, a government uses contractionary fiscal and monetary policy.

6 0

3 years ago

yeloe corporation sells 400 shares of common stock being held as an investment. The shares were acquired six months ago at a cos

Keith_Richards [23]

Answer:

Entry is given below

Explanation:

Bought shares 6 months ago = 400shares x $60/share

Bought shares 6 months ago = $24,000

Sold shares = 400shares x $40/share

Sold shares = $16,000

Loss on sales proceeds = $24,000 - $16,000

Loss on sales proceeds = $8,000

Entry:

DEBIT CREDIT

Cash $16,000

Loss on sale $8,000

Shares $24,000

8 0

3 years ago

Days sales outstanding. Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivab

marishachu [46]

Answer:

$230,000

Explanation:

Given that,

Days sales outstanding, DSO = 23 days

Annual sales = $3,650,000

Assume that it uses a 365 day year

Accounts receivable = (Annual sales × Days sales outstanding) ÷ 365 days

= ($3,650,000 × 23) ÷ 365 days

= $83,950,000 ÷ 365 days

= $230,000

Therefore, the Baxley Brothers has $230,000 balance in its accounts receivable.

4 0

3 years ago

Suppose you earned a $275,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each

olga nikolaevna [1]

Answer:

withdraw = 28532.45

so correct option is a. $28,532

Explanation:

given data

earned = $275,000 bonus

interest rate = 8.25% per year

time = 20 year

to find out

How much could you withdraw at the end of each of the next 20 years

solution

first we find here Cumulative discount factor that is express as

Cumulative discount factor = $\frac{(1-(1+r)^{-t}}{r}$ .............1

put here value r is rate and t is time

Cumulative discount factor = $\frac{(1-(1+0.0825)^{-20}}{0.0825}$

Cumulative discount factor = 9.638148

so here

withdraw = Present amount ÷ cumulative discount factor .......2

put here value we get

withdraw = $\frac{275000}{9.638148}$

withdraw = 28532.45

so correct option is a. $28,532

3 0

3 years ago