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velikii [3]
3 years ago
7

John has decided to start his own lawn-mowing business. To purchase the mowers and the trailer to transport the mowers, John wit

hdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is John's annual opportunity cost of the financial capital that has been invested in the business?
a. $30b. $140c. $170d. $300
Business
1 answer:
katovenus [111]3 years ago
4 0

Answer:

$ 170

Explanation:

Opportunity cost in the value of the missed alternative. It is the foregone benefit as a result of choosing one item over another. In the case of John, the opportunity cost is the interest receivable forfeited as a result of engaging in the lawn moving business.

The interest missed include :

     1. 3 percent  interest on $ 1000 savings

= 3/100 x 1000= $ 30

7 percent interest on $ 2000 on loan

= 7/100 x 2000=  $ 140

Total opportunity cost = $30 + $ 140

    = $ 170

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When the government finances a shovel-ready project through taxes or borrowing, this will result in?
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Higher taxes or loan fees, which will reduce private sector employment. 
 The term is utilized when alluding to ventures that, if given boost of cash, will have the most quick effect on business and the economy. While boost spending on scoop prepared ventures is intended to help the economy. Also, we can see these as larger-scale infrastructure where planning and engineering is advanced enough that with sufficient funding, construction can begin within a very short time.
6 0
3 years ago
Morgan Company's budgeted income statement reflects the following amounts: sales Purchases Expenses January $121,000 $79,000 24,
lana66690 [7]

Answer:

$115,250

Explanation:

The computation of the budgeted cash receipts in February month is shown below:

= Sales collected in February month + sales collected in January month - balance in accounts receivable

where,

Sales collected in February month equals to

= $111,000 × 50%

= $55,500

Sales collected in January month equals to

= $121,000 × 25%

= $30,250

And, the balance of accounts receivable

= $59,000 - $29,500

= $29,500

Now put these values to the above formula  

So, the value would equal to

= $55,500 + $30,250 + $29,500

= $115,250

3 0
3 years ago
Complete the following sentence: If people think that the price of televisions will decrease in the near future, that belief may
Artemon [7]

Answer:

b. decrease in the demand for televisions today.

Explanation:

Since it is generally believed that, consumers buy more quantity of a particular commodity or product when the price of such commodity is lower and that they buy less, when the price is higher, which is a simple illustration of the law of demand.

Therefore, if people think that the price of televisions will decrease in the near future, that belief may cause a "decrease in the demand for televisions today."

6 0
3 years ago
Fact Pattern: Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales tot
sasho [114]

Answer: <u><em>The accounting for customer food checks by the supervisor. </em></u>

An unfitting classification of responsibilities existed because the supervisor was accountable for accounting for customer food checks and depositing acknowledgment and had the quality to set POS totals .

<u><em>Therefore, the correct option is (a)</em></u>

3 0
3 years ago
Chuck has AGI of $71,600 and has made the following payments
kodGreya [7K]

Answer: $4,690

Explanation:

From the above, Chuck can include the following with his itemized deductions,

County Real Estate Tax,

School District Tax on Realty,

State Income Tax estimated Payments and

State income tax withholding.

Calculating the above,

= 950 + 670 + 1,010 + 2,060

= $4,690

the amount of taxes that Chuck can include with his itemized deductions is $4,690.

7 0
3 years ago
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