Answer:
Private savings = $360 trillion
Explanation:
Private savings is a summation of household and business savings. When there is economic growth there is stimulation of private savings, people have more money to save.
Private savings also drives economic growth because people have more money to invest in businesses that will have a higher output.
In a closed economy the formula for private savings is
Private savings = Y + TR - C - T
Private savings= 1414 trillion + 0 - 1010 trillion - 44 trillion
Private savings = $360 trillion
Answer:
$43,745
Explanation:
Calculation for what the Capital account reported on the Statement of Owner's Equity at the end of the month would be
Using this formula
Ending Capital Balance = Cash (1)+ Photography equipment (2) +Cash for services provided (4)+Services to customers on account (6)- Monthly rent(7)- Utility (9)
Let plug in the formula
Ending Capital Balance = $13,800 + $23,000 + $6,000 + $3,050 - $1,800 - $305
Ending Capital Balance= $43,745
Therefore the balance in the Capital account reported on the Statement of Owner's Equity at the end of the month would be: $43,745
Answer:
A.The impact on the balance sheet after the payment of the dividends is a reduction in current asset-cash by $8580 as well as a drop in equity-specifically retained earnings by the same amount.
B.Total assets (book and market values) will decrease by $8580 and equity and liabilities on the other hand will also reduce by $8580.
A.The accounting entries in respect of the dividend payment will be :
Debit Retained earnings $8580
Credit Cash $8580
Explanation:
The dividends of $1.43 gives $8580 in total i.e $1.43*6000 shares
The impact of the dividend payment will be in terms of reduction in cash available for daily operations and reduction in funds attributable to shareholders.
Answer:
b. investing activities
Explanation:
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.
Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.
<em>Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.</em>
Answer:
No
Explanation:
An investment that "promises" a 44 percent annual return is most likely a scam, because even the riskiest stocks rarely yield annual returns higher than 10% of the initial investment.
Besides, the option is described as very complicated, and you as a potential investor do not understand it well, which is a very difficult position to be in because it could even lead you to being scammed without realizing.
