Answer:
$5,000
Explanation:
The return on investment is 20%
= 20/100
=0.2
The average operating assets is $100,000
The minimum required rate of return is 15%
= 15/100
= 0.15
The first step is to calculate the net operating assets
= ROI× average operating assets
= 0.2×100,000
= $20,000
Therefore, the residual income can be calculated as follows
= Net operating income-(minimum required rate of return×average operating assets)
= $20,000-($100,000-0.15)
= $20,000-15,000
= $5,000
Hence the residual income for the year was closest to $5,000
Answer:
Exports
Explanation:
In the Great Depression, spending on U.S. exports was reduced by foreign countries as well as U.S. spending on their products which made the downward spiral even worse on a global basis.
The Great Depression caused consumer spending to decline and investment fell drastically which led to steep industrial output declines.
Answer:
The cash balance per books at April 31, 2013 is $28,200.
Explanation:
It is required to compute the Balance per bank on 30, April:
Balance per bank on 30 April = Balance per bank statement + Deposits - Disbursement
= $37,200 + $46,700 - $49,700
= $83,900 - $49,700
= $34,200
The Cash balance per books on April 30, 2013 is computed as:
Cash balance per books on April 30, 2013 = Balance per bank on 30 April - Cleared the outstanding checks
= $34,200 - $6,000
= $28,200.
Answer:
The company's net operating income for the year was: $60,000
Explanation:
Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment
Net Income = ROI x Total investment
Investment Turnover Ratio = Net Sales/(Stockholders' Equity + Debt)
or
Investment Turnover Ratio = Net Sales/Total investment
Total investment = Net Sales/Investment Turnover Ratio
The company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%.
Net Income = ROI x Total investment = ROI x Net Sales/Investment Turnover Ratio = 36% x $400,000/2.4 = $60,000
Answer:
When Roosevelt cut spending in 1937, the U.S. economy returned to the abysmal economic status of 1932–1933
Explanation:
Economists believe that the recession during 1937 was the result of government's decision to curb government spending as this idea was immature. Even after Roosevelt's decision there was recession and political atmosphere heated up due to this.
Roosevelt and his advisors made a decision to curb government spending thinking it would take the country of recession. It is also believed that there was contraction in the money supply caused by 'Federal Reserve and Treasury Department' policies which may have contributed to the Recession. Unemployment grew worsening the situation.
The economist John Maynard Keynes supported the idea that government should increase the spending to increase demand.
