Answer: Option (b) is correct.
Explanation:
Given that,
Revenues = $300,000
Merchandise it purchased = $75,000
Salaries paid = $14,000
Owners invested = $23,000
Borrowed on a five-year note = $23,000
Interest paid = $3,000
Paid for a two-year insurance policy = $6,800
Income tax rate = 9%
Gross Margin = Revenues - Cost of Goods Sold
= $300,000 - $75,000
= $225,000
Profit before tax = Gross Margin - Salaries - Insurance payment - Interest
= $225,000 - 14,000 - 3,400 - 3,000
= $204,600
Net Income = Profit before tax - Tax at 9%
= $204,600 - 18,414
= $186,186
Answer:
0.60
Explanation:
The midpoint formula is used to calculate elasticity by using average percentage in both price and quantity.
The formula is given below:
Percentage change in quantity =<u> (Q2 -Q1) </u> x 100
(Q2 + Q1) / 2
Percentage change in price = <u> (P2 -P1) </u> x 100
(P2 + P1) / 2
Elasticity =<u> Percentage change in price__</u>
Percentage change in quantity
Inserting the data:
Percentage change in quantity =<u> (30 -20) </u> x 100 = <u>10</u> x 100 = 40%
(30 + 20) /2 25
Percentage change in price = <u>($20 - $10)</u> x 100 = <u>10</u> x 100 = 66.6%
($20 + $10) /2 15
Elasticity of supply = <u>40%</u>
66.6%
= 0.60
Answer:
c. 1.6 percent.
Explanation:
GDP Deflator = Nominal GDP / Real GDP * 100
year 1
Real GDP = $2250 billion/72*100
= $ 3125.
year 2
Real GDP = $2508 billion/79*100
= $3175
Real GDP rose by = Real GDP (2nd year) - Real GDP (1st year)
= $3175 - $3125
= $ 50
% increase = $50/$2,250*100
= 1.6%
Therefore, The Real GDP rose by 1.6%.
Answer:
Solvency
Explanation:
Solvency is defined as the ability of a company to meet it's long term financial obligations like having the ability to pay off debts as they mature. Solvency measures if a company is able to pay off it's debt in long term.
Although solvency and liquidity are similar, difference is liquidity is more concerned with paying off short term debts.
A company or firm is said to be solvent when the current assets exceeds current liabilities.
Answer: 10.81%
Explanation:
The annual percentage rate is the percentage cost of credit on yearly basis.
APR will be calculated
= [(2 x n x I) /( P x ( N + 1)]
where,
n = number of months = 12
I = Finance cost = Interest + service charge = $70 + $12 = $82
P = Borrowed amount = $1,400
N= Loan period = 12
We'll then slot the values into the annual percentage rate (APR) formula and this will be:
= ( 2 x n x I) /( P x ( N + 1))
= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))
= 0.1081
=10.81 %
