Answer: U.S Treasury bonds
One of the main risks of investing is the risk of not getting back the amount invested. This risk is called default risk.
Income bonds, preferred stocks and subordinated debentures have default risk since there is no guarantee by the issuing companies that they will repay the principal, and interest or preferred dividends, as the case may be.
However, if an investor holds a U.S treasury bonds until maturity, the government gives a guarantee on the interest payment and principal amount. Hence the U.S treasury bonds are traditionally considered to have the least risk.
However, even U.S. treasury bonds are sensitive to inflation and interest rates.
Answer: $3,708
Explanation:
Using FIFO means that the earlier goods are sold before the later ones so the closing inventory would have the latest goods purchased.
If there are 180 units on hand, the cost would be:
- 54 units purchased at $22
- (180 - 54) units purchased at $20
Closing inventory is:
= (54 * 22) + ( (180 - 54) * 20)
= (54 * 22) + ( 126 * 20)
= $3,708
Answer:
$62, 000
Explanation:
Operating Cash Flow = Operating Income (revenue – cost of sales) + Depreciation
Answer:
c. firms want to spend less on investment goods
Explanation:
According to the law of supply, as prices increase, firms will be willing to supply more quantities in the market. The gig prices act as a motivation to make profits. Firms will invest in increasing production to take advantage of high prices.
Should the prices fall, firms will not be encouraged to increase their supplies. They will not be interested in expanding their production capacities. As a result, they will spend less on investment goods. Low prices imply reduced profits; firms find it more risk to borrow to finance growth in when profitability is low.
Answer:
$27,500
Explanation:
Data provided in the question:
Wages earned by the Lee = $40,000
Dividend income from separate property = $5,000
Interest income from community property = $10,000
Now,
The amount of income that must be included on Lee's separate tax return
= 50% of [Wages earned + Dividend income + Interest income ]
= 0.50 × [ $40,000 + $5,000 + $10,000 ]
= 0.50 × $55,000
= $27,500
