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3 years ago

If there is a shortage of loanable funds, then:

Business

1 answer:

lana66690 [7]3 years ago

7 0

Answer: The correct answer is "d. there will be no shifts of the curves, but the real interest rate rises.".

Explanation: If there is a shortage of loanable funds, then: there will be no shifts of the curves, but the real interest rate rises.

this causes as the interest rate rises to equilibrium the amount offered of loanable funds increases and the quantity demanded of loanable funds decreases

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The charter of Vista West Corporation specifies that it is authorized to issue 300,000 shares of common stock. Since the company

Romashka-Z-Leto [24]

Answer:

1. Authorized shares = 300,000 shares

2. Issued shares = 160,000 shares

3. Outstanding shares

= Issued shares- Shares repurchased

= 160,000 - 25,000

= 135,000 shares

Explanation:

Authorized shares are shares that a firm is allowed by law to issue to the public.

Issued shares are shares that a company offers to the public for subscription.

Outstanding shares are shares remaining after the share repurchase.

6 0

3 years ago

Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the di

Shkiper50 [21]

Answer:

Present value = $35.00326585 rounded off to $35.00

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,

Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +

[(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

r is the required rate of return

g is the constant growth rate in dividends
n is the number of years

Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +

3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]

Present value = $35.00326585 rounded off to $35.00

3 0

3 years ago

Au Sable Corporation reported taxable income of $760,000 in year 2 and paid federal income taxes of $176,500. Not included in th

butalik [34]

Answer:

$726,500

Explanation:

The computation of current earnings and profits for year 2 is shown below:-

current earnings and profits for year 2 = Profit as per Income Tax - Penalty disallowed + Life insurance proceed - Tax Expenses

= $760,000 - $42,000 + $185,000 - $176,500

= $945,000 - $42,000 - $176,500

= $726,500

Therefore we have applied the above formula to reach out the current earnings and profits for year 2.

5 0

2 years ago

Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 100 per direct manufact

katen-ka-za [31]

Answer:

total product costs = $101750

Explanation:

given data

overhead costs = $ 100

Direct materials of $41,000

direct manufacturing labor = 450

per hour = $35

markup rate = 30 %

solution

we get here total product costs that is express as

total product costs = Direct materials + DML + MOH ..........1

total product costs = $41,000 + ( 450 × $35 ) + ( 450 × $100 )

total product costs = $41,000 + $15750 + $45000

total product costs = $101750

4 0

3 years ago

Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $7,000. Terms 1/15, n/EOM, FOB shipping point.

myrzilka [38]

Answer:

Sep. 3

Dr Merchandise Inventory $7,000

Cr Accounts Payable—Shallin Wholesalers $7,000

Sep. 4

Dr Merchandise Inventory $55

Cr Cash $55

Sep. 4

Dr Merchandise Inventory $2,100

Cr Cash $2,100

Sep. 6

Dr Accounts Payable—Shallin Wholesalers $1,000

Cr Inventory $1,000

Sep. 8

Dr Accounts Receivable— Herenda Company $5,445

Cr Sales Revenue $5,445

Sep. 8

Dr Cost of Goods Sold $2,255

Cr Merchandise Inventory $2,255

Sep. 9

Dr Merchandise Inventory $10,000

Cr Accounts Payable—Tripp Wholesalers $10,000

Sep. 10

Dr Accounts Payable—Shallin Wholesalers $6,000

Cr Merchandise Inventory $60

Cr Cash $5,940

Sep. 12

Dr Cash $5,445

Accounts Receivable—Herenda Company $5,445

Sep. 13

Dr Accounts Payable—Tristan Wholesalers $100

Cr Merchandise Inventory $100

Sep. 15

Dr Accounts Receivable—Jesper Company $3,500

Cr Sales Revenue $3,500

Sep. 15

Dr Cost of Goods Sold $1,610

Cr Merchandise Inventory $1,610

Sep. 22

Dr Accounts Payable—Tristan Wholesalers $9,900

Cr Cash $9,900

Sep. 23

Dr Refunds Payable $800

Cr Accounts Receivable—Jesper Company $800

Sep. 23

Dr Merchandise Inventory $368

Cr Estimated Returns Inventory $368

Sep. 25

Dr Accounts Receivable—Smithson $1,995

Cr Sales Revenue $1,940

Cr Cash $55

Sep. 25

Dr Cost of Goods Sold $780

Cr Merchandise Inventory $780

Sep. 29

Dr Cash $1,995

Cr Accounts Receivable— Smithson $1,995

Sep. 30

Dr Cash $2,100

Cr Accounts Receivable—Jesper Company $2,100

Explanation:

Preparation of the journal entries

Sep. 3

Dr Merchandise Inventory $7,000

Cr Accounts Payable—Shallin Wholesalers $7,000

Sep. 4

Dr Merchandise Inventory $55

Cr Cash $55

Sep. 4

Dr Merchandise Inventory $2,100

Cr Cash $2,100

Sep. 6

Dr Accounts Payable—Shallin Wholesalers $1,000

Cr Inventory $1,000

Sep. 8

Dr Accounts Receivable— Herenda Company $5,445

Cr Sales Revenue $5,445

[$5,500-(1%*$5,500)]

Sep. 8

Dr Cost of Goods Sold $2,255

Cr Merchandise Inventory $2,255

Sep. 9

Dr Merchandise Inventory $10,000

Cr Accounts Payable—Tripp Wholesalers $10,000

Sep. 10

Dr Accounts Payable—Shallin Wholesalers $6,000

($7,000-$1,000)

Cr Merchandise Inventory $60

(1%*$6,000)

Cr Cash $5,940

($6,000-$60)

Sep. 12

Dr Cash $5,445

[$5,500-(1%*$5,500)]

Accounts Receivable—Herenda Company $5,445

Sep. 13

Dr Accounts Payable—Tristan Wholesalers $100

Cr Merchandise Inventory $100

Sep. 15

Dr Accounts Receivable—Jesper Company $3,500

Cr Sales Revenue $3,500

Sep. 15

Dr Cost of Goods Sold $1,610

Cr Merchandise Inventory $1,610

Sep. 22

Dr Accounts Payable—Tristan Wholesalers $9,900

Cr Cash $9,900

($10,000-$100)

Sep. 23

Dr Refunds Payable $800

Cr Accounts Receivable—Jesper Company $800

Sep. 23

Dr Merchandise Inventory $368

Cr Estimated Returns Inventory $368

Sep. 25

Dr Accounts Receivable—Smithson $1,995

($1,940+$55)

Cr Sales Revenue $1,940

[$2,000-(3%*$2,000)]

Cr Cash $55

Sep. 25

Dr Cost of Goods Sold $780

Cr Merchandise Inventory $780

Sep. 29

Dr Cash $1,995

($1,940+$55)

Cr Accounts Receivable— Smithson $1,995

Sep. 30

Dr Cash $2,100

Cr Accounts Receivable—Jesper Company $2,100

5 0

2 years ago