Aggregate demand is the sum of five different sectors of economy namely consumption of consumer spending, investment, government spending, imports, and exports. For an increase of imports of foreign automobiles, the determinant that causes the change is the consumption or consumer spending.
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The LIFO method is used to calculate the precent of retail and Current cost to retail % is 67 percent.
<u>Explanation:</u>
Ending inventory at retail as on 12/31/2022 converted to cost = 50600 by1.1 = 46000
Inventory as on 12/31/2021 converted to cost = 42400 by 1.06 = 40000
Inventory added during 2021 = 40,000 minus 30,000 = 10,000
Inventory added during 2022 = 46000 minus 40000= 6000
Inventory layers at base year retail prices:
Beginning inventory = 30000 into 1 into 70% = 21000
Layers added during 2021 = 10000 into 1.06 into 80% = 8480
Layers added during 2022 =6000 into 1.1 into 67% = 4422
Inventory as on 31/12/2022 at cost = 21000 plus 8480 plus 4422 = 33902
Therefore, Current cost to retail % = 66330 by 99000 = 67%
Answer:
Capital asset
Explanation:
Capital asset are classified as the property which are expected to generate some value over the duration of time.
Capital assets includes,
Buildings
Computer equipment
Jewelry
Machinery, and vehicles etc.
The capital assets has an expected useful life of more than one year
It can be sold as a normal part of business operations.
Answer: is highly dependent upon a company's tax rate.
Explanation:
The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt
equals the pre-tax cost of debt which is then multiplied by (1 – tax rate).
The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.