Answer and Explanation:
The computation is shown below;
a. For Warranty Expense
= Sales × Estimated Warranty Percentage%
= $4,144,400 × 0.87%%
= $36,056.28
b)
The amount that should be reported is
Opening Balance of Estimated Warranty Liability Jan. 1, 2019 $42,635
Less: Actual warranty costs in 2019 ($26,750)
Add: Warranty expense accrued in 2019 $35,056
Closing Balance of Estimated Warranty Liability Dec. 31, 2019 $50,941
"... there is excess supply of bonds... interest rate will fall."
When the interest rate is above equilibrium, Qd (Quantity demanded) will be less than Qs (Quantity supplied) of bonds, since people are less willing to purchase when price is too high, and producers are more willing to sell their bonds when price is higher (since they earn more per unit sold). This results in surplus of bonds in the market, where Qs > Qd, which leads to a downward pressure being applied on price (in this case, the interest rate) so that Qs eventually equals to Qd.
Hope this helps!
Answer:
54.9%
Explanation:
To calculate your debt to income ratio, you must add all your monthly debt payments and divide that number by your monthly gross income:
Timothy's total monthly debt payments = auto loan ($750) + student loan ($390) + mortgage ($1,700) + credit card ($125) = $2,965
Timothy's debt to income ratio = $2,965 / $5,400 = 54.9%
Timothy has too many debts, a good debt to income ratio shouldn't exceed 36-40%.
The questions about risk that should someone ask before making economic choices are :
- What problem are most likely to happen ?
- What could go wrong ?
- What problem that could be most damaging ?
Hope this helps
