Answer:
The Porter Diamond model explains the factors that can drive competitive advantage for one national market or economy over another. It can be used both to describe the sources of a nation's competitive advantage and the path to obtaining such an advantage.
They function as consumers and producers because while they work, they are creating goods/ providing services that contribute to the economy. When they get paid, they become consumers who buy goods/pay for services.
Answer:
Credit balance of $12,000
Explanation:
To calculate the balance of the allowance for doubtful accounts we need to multiply the total accounts receivable times the percentage of estimated bad debts:
$160,000 x 7.5% = $12,000
Since allowance for doubtful accounts is a contra asset account, when it increases it should be credited.
Answer:
The liability reported is closest to $107,105.21.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the the liability reported =?
P = Annuity payment = $22,000
r = Student's desired return rate = 10%, or 0.10
n = number of years = 7
Substitute the values into equation (1) to have:
PV = $22,000 * ((1 - (1 / (1 + 0.10))^7) / 0.10)
PV = $22,000 * 4.86841881769293
PV = $107,105.21
Therefore, the liability reported is closest to $107,105.21.
