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Charra [1.4K]
3 years ago
5

As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $940,000 and liabilities of $300

,000. During Year 2, stockholders invested an additional $73,000 and received $33,000 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000 and liabilities were $270,000?
Business
1 answer:
Anvisha [2.4K]3 years ago
4 0

Answer:

Th answer is: net income for year 2 is $45,000

Explanation:

We must first determine the equity for both years (equity= assets - liabilities)

  • Equity year 1 = $940,000 - $300,000 = $640,000
  • Equity year 2 = $995,000 - $270,000 = $725,000

Then we calculate the change in equity:

  • change in equity = $725,000 - $640,000 = $85,000

Finally to determine the net income or year 2 we use the following formula:

Net income (Y2)= change in equity - additional investments + dividends paid

net income (Y2) = $85,000 -$73,000 + $33,000 = $45,000

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the answer is C

Explanation:

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3 years ago
Assume MU_c and Mu_d represent the marginal utility that a consumer gets from products C and D, the respective prices of which a
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Answer:

<h2>The correct answer in this case is option C. or MU(c)/P(c)>MU(d)/P(d).</h2>

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Under consumer equilibrium theory for two commodity model,a rational consumer maximizes his or her utility when the marginal utility(MU) obtained from consuming one good is equal to the same of the other.This is the fundamental essence of the Law of Equimarginal Utility in Economics.Now,in this case,the consumer will purchase more of good C than good D if the Marginal utility obtained from one unit of good C or MU(c)  for the money spend on consumption of good C or price of C,P(c) is greater than the marginal utility obtained from consuming 1 more unit of good D or MU(d) for money spend on purchase of good D or price of that particular unit of D or P(d).Therefore,since the marginal satisfaction compared to the amount of money spend for the consumer is higher for good C compared to the other or good D,it will increase the total utility level of the consumer from that particular consumption bundle or pattern.Hence,he or she will spend more on the consumption of good C than good D.

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3 years ago
The news division of WEXS Channel 10 wanted to hire a new morning news anchor. As part of the interview process, candidates were
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Your older and wiser sibling has offered to loan you some much needed money to help cover textbook expenses this semester. Since
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80 years

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Data provided in the question:

Simple interest rate charged = 1.25% = 0.0125

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Let principal amount be '$x'

we know,  Simple interest = Principal × Interest Rate × Time

Since the debt is doubled this means the interest  is equal to the principal amount

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1 = 0.0125 × Time

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3 0
3 years ago
Suppose Saron has 7 Birr to be spent on two goods: banana and bread. The unit price of banana is 1 Birr and the unit price of a
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Answer:

Solution:

A.

p_x=3, G_x=\frac {100}{3}=33\frac{1}{3}p

x

=3,G

x

=

3

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3

1

p_y=5, G_y=\frac{100}{5}=20p

y

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y

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B.

100-0.25\times 100=75100−0.25×100=75

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x

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x

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y

=5,G

y

=

5

75

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C.

p_x=6, G_x=\frac {100}{6}=16\frac{2}{3}p

x

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x

=

6

100

=16

3

2

D.

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y

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2.

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p

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y

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