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3 years ago

Business taxes increase. what is the impact on aggregate expenditures and income?

1 answer:

4 0

If corporate tax increases then businesses would make up for the loss of profit due to this raise in taxes by charging consumers a higher price, therefore reducing Aggregate expenditure as fewer people buy the product at the higher price, probably because some would rather buy cheaper imports or because some cannot afford it at all now due to the higher price.

Another thing the business might do to make up for the loss in profit due to the raise in taxes is they might lay off some employees thereby making those fired employees incomes fall to zero, they may also reduce the remaining employees wages or salaries so that business costs fall and a good profit level is reached for the business.

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Cochran's Furniture Outlet is issuing 25-year, 9 percent callable bonds. These bonds are callable in 4 years with a call premium

SVEN [57.7K]

Answer:

a. Nper = 30

Explanation:

PMT = 45

FV = `1000

Price Pv = -1180

Rate (YTM) = ?

Using the MsExcel Rate function to derive YTM

Nominal annual yield to maturity = Rate(Nper, Pmt, -Pv, Fv) * 2

Nominal annual yield to maturity = Rate(30, 45, -1180, 1000) * 2

Nominal annual yield to maturity = 7.04%

b. Nper = 10

PMT = 45

Call Price = 1090

Price Pv = -1180

Rate (YTC) = ?

Using the MsExcel Rate function to derive YTM

Nominal annual yield to call = Rate(Nper, Pmt, -Pv, Fv) * 2

Nominal annual yield to call = Rate(10, 45, -1180, 1090) * 2

Nominal annual yield to call = 6.31%

C. Yes, the bond issue should call because the YTC is less than the YTM.

7 0

3 years ago

Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of

sukhopar [10]

Answer:

$10,500 units

Explanation:

Calculation of equivalent units of production for conversion cost

First step is to find the Units started and completed during the period using this formula

Units started and completed during the period = Units transferred to the next processing department- Beginning inventory in the mixing department units

Let plug in the formula

Units started and completed during the period = = 12,000 - 6,000

Units started and completed during the period = = 6,000

Second step is to find the Equivalent units of production

Equivalent units of production=6,000 * 25% + 6,000*100% + 5,000*60%

Equivalent units of production=1,500+6,000+3,000

Equivalent units of production=10,500 units

Therefore the equivalent units of production for conversion cost will be $10,500 units

4 0

3 years ago

Explain why having a good accountant is important for a large business. What does an accountant do? Do some research to find out

Setler79 [48]

Answer:

Having a good accountant if you own a large business is important because any mistakes could be detrimental in the long run and upset clients.An accountant takes care of all finances, If a business did not have an accountant it would most likely take a turn for the worst.

-Hope i helped :D

7 0

3 years ago

Monica received an inheritance of $70,000. She invested part at 11% and deposited the remainder in tax-free bonds at 10%. Her to

erica [24]

Answer:

The correct answer is $50,000.

Explanation:

According to the scenario, the given data are as follows:

Amount = $70,000

Invested at rate = 11%

Tax free investment = 10%

Total income from investments = $7,500

So , we can calculate the invested at 11% by using following formula:

Let the amount invested at 11% = X

So,

= 11% × X + (70,000 - X) × 10% = $7,500

= 0.11 × X + (70,000 - X) × 0.1 = $7,500

= 0.11X + 7,000 - 0.1X = $7,500

= 0.11X -0.1X = $7,500 - $7,000

= 0.01X = $500

X = $500 / 0.01

= $50,000

Hence, the amount invested at 11% is $50,000.

5 0

4 years ago

A manager realizes halfway through the month that he or she is behind in sales. He or she needs to take corrective action in ord

yuradex [85]

Answer:

Controlling

Explanation:

Controlling is the one of the management function, which is described as the function that helps the business to seek the planned results or consequence from the managers, subordinates and at the all levels of the organization.

This function of management helps the business in evaluating the progress towards the goals of the firm and if there is any deviations, then the corrective measures or action could be taken.

3 0

4 years ago