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3 years ago

Consider the circular flow model to answer the questions that follow.

Business

1 answer:

Zarrin [17]3 years ago

6 0

Answer:

The answer is :

A. Resource market - income

B. Expenditure - product market.

Explanation:

A. Resource market - income

B. Expenditure - product market

The circular flow model shows how money moves through the economy in exchange for goods, services, and resources.

In circular flow of income, households provide inputs to firms through the resource market(matket where households supply land, labor, capital, and entrepreneurship) in exchange for money(income or wages).

Also in circular flow of income, firms receives expenditure from household and this type of market is called product market(which refers to a place where goods and services are bought and sold)

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Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash p

andrew11 [14]

Answer:

a. Ending Cash Balance:

January = 50,000

February = 61,555

March = 50,000

b. Loan Balance End of Month:

January = 44,500

February = $0

March = $44,445

Explanation:

Note: The merged data given in the question are sorted before answering the question as follows:

Cash Receipts Cash payments

January $ 518,000 $ 461,500

February 403,000 346,500

March 467,000 523,000

Explanation of the answer is now given as follows:

Note: See the attached excel file for the cash budget.

In the attached excel file, the following calculations are made:

January loan repayment = January Preliminary cash balance - Minimum required cash balance = $105,500 - $50,000 = $55,500

March Additional loan = Minimum required cash balance - March Preliminary cash balance = $50,000 - $5,555 = $44,445

From the attached excel file, we have:

a. Ending Cash Balance:

January = 50,000

February = 61,555

March = 50,000

b. Loan Balance End of Month:

January = 44,500

February = $0

March = $44,445

Download xlsx

7 0

3 years ago

Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu

Kamila [148]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

3 0

3 years ago

On january 1, 2015, providence, inc., issues $1,000,000 of 10 percent, 5-year bonds at par value. complete the necessary journal

Shkiper50 [21]

On January 1, 2015, the date of issuance, the entry is:

2015

Jan 1

Cash 1,000,000

Bonds Payable 1,000,000

On each January 1 for 5 years, beginning 2015 January 1 (ending 2020 January 1), the entry would be (Remember, calculate interest as Principal x Interest x Time):

Jan 1

Bond Interest Expense ($1,000,000 x 10% x 1) 100,000

Cash 100,000

On January 1 (5 years later), the maturity date, the entry would include the last interest payment and the amount of the bond:

Jan 1

Bond Interest Expense ($1,000,000 x 10% x 1) 100,000

Bonds Payable 1,000,000

Cash 1,100,000

5 0

3 years ago

You work as a salesperson for a chemical manufacturer, which keeps you very busy. Your customers are photographers who use your

jeka94

I think the answer is B

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3 years ago

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.47 percent paid semiannually and sell for $1,923.74. The bonds hav

REY [17]

Answer:

Current Yield= 5.68%

Explanation:

Current Yield = Coupon Paid/Price

= (2000*0.0547)/1923.74

= 5.68%

8 0

3 years ago