Answer:
$140,000
Explanation:
Computation of the company’s net income for 2014.
Using this formula
Net income=Revenue – Expenses
Let plug in the formula
Net income=$200,000 - $40,000+$20,000
Net income= $140,000
Therefore the company’s net income for 2014 will be $140,000
Given:
ΔY = $5,000, the change in income
ΔS = 50,000 - 54,000 = - 4,000, the change in savings.
By definition,
MPS (Marginal Propensity to Spend) is
MPS = ΔS/ΔY = -4000/5000 = -0.8
The relation between MPS and MPC (Marginal Propensity to Consume) is
MPS + MPC = 1.
Therefore
MPC - 0.8 = 1
MPC = 1.8
Answer:
MPS = 0.8
MPC = 1.8
Answer:
Dr work-in process $ 25,430.00
Cr wages payable $ 25,430.00
Explanation:
The total labor cost on jobs is the total hours spent on each job multiplied by direct labor cost per hour as shown thus:
Job 200=570*$20=$11,400.00
Job 305=610*$23=$14,030.00
Total direct labor cost on both jobs=$11,400.00 +$14,030.00 =$ 25,430.00
The journal entries in respect of labor cost of $25,430.00 is to debit work-in process and again a credit goes to wages payable
Answer:
Stock prices follow a random walk with a trend because:__________
d. stock prices are based on both future profits and expectations about future profits and gradually rise over time.
Explanation:
The random walk theory of the stock price movement states that there is no observable pattern or trend to the movement of a stock price. It is, therefore, impossible to use the past movement or trend of a stock price to predict its future movement. This means that the wise investor should invest in the market portfolio to reflect more closely the movement of stock prices in the market instead of investing in a single stock or market security.
The answer is false. The role of entrepreneurs is accounted by economic models. They are directly connected with the consumers and have firsthand information about the things that they would like. Entrepreneurs play a big role to ensure that businesses circulate.