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lana66690 [7]
4 years ago
11

During 2009, a particular country's inflation rate averaged 1.3% a day. This means that on average, prices went up by about 1.3%

from one day to the next. Round your answer to the nearest whole number.. . (a) By what percentage did this country's prices increase in April of 2009 (from April 1 through April 30)?.
Business
1 answer:
horrorfan [7]4 years ago
4 0
<span>29 days of 1.3% inflation. Convert to relative increase: (1+0.013) = 1.013. (1.013)^29 -1 = 45.43% (the effect of compounding) 45%.</span>
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3 0
3 years ago
On March 1, 2018, Rose Company invests $12,000 in Sprouts, Inc. stock. Sprouts pays Rose a $350 dividend on October 1, 2018. Ros
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Answer:

1. Journalize the transactions for Rose's investment in Sprouts' stock:

<u>March 1 2018</u>

Dr Trading securities - Sprouts's stock                12,000

Cr Cash                                                                  12,000

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<u>October 1 2018</u>

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Cr Dividend Income     350

(to record the dividend receipt from Sprout's stock)

<u>October 31 2018</u>

Dr Cash                                                                      12,250

Cr Gain on disposal of short-term investment            250

Cr Trading securities - Sprouts's stock                   12,000

(to record disposal of Sprout's stock)

2.  Net effect of the investment on Rose's net income for the year ended December 31, 2018: $600.

Explanation:

1. As this investment is short-term investment and is held for sell, fair value methodology should be applied to record this transaction. The detailed journal entries are as in answer part.

2. As fair value methodology is applied, the net income of Rose will include: dividend income + gain on disposal of short-term investment = $350 + $250 = $600.

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4 years ago
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3 years ago
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Answer:

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