Answer:
a. purchases journal; expenditure cycle
Explanation:
When a business recieves inventory from a vendor they already have a credit line with, it will be recorded in the purchases journal. A purchases journal is a prime book of entry or day book which is used to keep track of items that are accounts payable.
The cycle involved in this scenario is the expenditure cycle which involves the activities that a business goes through in the acquisition and payment for goods and services.
The reciept of inventory from the vendor is in the expenditure cycle.
Answer:
(a) 15.46%
(b) $11,904.11
(c) 6.15%
Explanation:
(a) Sustainable growth rate:
= 29.32%
Retention Ratio = 1 - Dividend Payout
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= 45.66%
= 0.15446
= 15.46%
(b) Additional borrowing:
New Total Asset = (Total debt + Total equity) × (1 + Sustainable growth rate)
= (77,000+59,000) × (1 + 15.46%)
= 157025.4
= $88904.11
Increase in Borrowing = New debt - old debt
= $88,904.11 - $77,000
= $11,904.11
(c) Internal growth rate:
= 12.72%
= 0.0615
= 6.15%
Answer:
- <u><em>d. a reduction in output and employment in domestic industries that utilize steel as a resource</em></u>
Explanation:
The first impact of a <em>quota that limits the importation of steel into the United States </em>is that the domestic market will experience a decrease on the number of suppliers.
As a consequence, the domestic manufacturers will have less competition and they will be able to increase the prices of the steel in the domestic market, instead of struggling to decrease the costs, or improve the quality, or increase the productivity, or enhance the service.
Thus, the domestic indutries that utilize the steel will face an increase on the prices of their main raw material, becoming less competitive. Then, <em>most likely</em>, their price should increase and their sales and production should decrease; thus, <em>they will face a reduction in output and employment.</em>
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