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3 years ago

What is the difference between monetary policy and fiscal policy

Business

1 answer:

Tju [1.3M]3 years ago

5 0

Answer: Stabilisation policies can be implemented with the aid of either monetary or fiscal policy.

Explanation:

Monetary policy involves changing the interest rate and influencing the money supply while Fiscal policy involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy.

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Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

Softa [21]

Answer:

1. $31,100

2. $104,000

Explanation:

1. Cost of goods available for sale:

= Cost of beginning inventory + Net purchase + Freight on purchase

= $60,200 + ($127,000 - $7,000) + $4,700

= $184,900

Estimated cost of goods sold:

= Sales - Gross profit

= ($265,000 - $22,000) - [40% × ($265,000 - $22,000)]

= $243,000 - $97,200

= $145,800

Estimated cost of ending inventory:

= Cost of goods available for sale - Estimated cost of goods sold - Inventory stolen

= $184,900 - $145,800 - $8,000

= $31,100

2. Cost of goods sold = Sales × (60/200)

= $243,000 × (60/200)

= $72,900

Estimated cost of ending inventory:

= Cost of goods available for sale - Estimated cost of goods sold - Inventory stolen

= $184,900 - $72,900 - $8,000

= $104,000

4 0

4 years ago

The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31

Dmitry [639]

Answer:

The cash flows to investors from operating activity is $402,126.25

Explanation:

For computing the cash flow from operating activity, first, we have to compute the net income which is shown below:

= Sales - cost of goods sold - depreciation expense - interest expense - income tax expense

where,

The income tax expense equals to

= (Sales - cost of goods sold - depreciation expense - interest expense) × income tax rate

= $1,430,000 - $816,000 - $175,000 - $89,575) × 35%

= $122,298.75

The other items values would remain the same

Now put these values to the above formula

So, the value would equal to

= $1,430,000 - $816,000 - $175,000 - $89,575 - $122,298.75

= $227,126.25

Now the cash flow from operating activity equals to

= Net income + depreciation expense

= $227,126.25 + $175,000

= $402,126.25

3 0

3 years ago

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

lara [203]

Answer:

The correct answer is $13.900.

Explanation:

To carry out the verification balance, the nature of the accounts presented in the normal balance of the organization must be taken into account. We have that the assets and income have a debit nature, so it is necessary that the corresponding to that premise are:

Accounts receivable $ 1,800 - Active

Insurance expenses $ 1,300 - Expenses

Prepaid insurance $ 2,000 - Expenses

Land $ 3,000 - Active

Cash $ 3,200 - Assets

Salary Expenses $ 1,400 - Expenses

On the other hand there are accounts that despite being of a credit nature, have credit movements as a result of ordinary activities, which would be:

Dividends: $ 1,200 - Debit nature liability

TOTAL DEBITS: $ 13,900

8 0

3 years ago

delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of it

ollegr [7]

Answer:

Annual depreciation for the first year = $15,500

Annual depreciation for the second year = $7,500

Explanation:

Data provided in the question;

Cost of the delivery truck = $31,000

Salvage value = $4,000

Useful life = 4 years

Now,

The Rate of depreciation under declining-balance = 2 × straight-line rate

= 2 × $\frac{1}{4}$

= 0.5

= 0.5 × 100% = 50%

Therefore,

Annual depreciation for the first year = cost of truck × Rate of depreciation

= $31,000 × 0.5

= $15,500

Annual depreciation for the second year

= Book value at the end of first year of truck × Rate of depreciation

= $15,500 × 0.5

= $7,500

5 0

3 years ago

Last year’s sales were $9,815,000 and are projected to increase by 4.5% for next year. Last year’s expenses were 41% of last yea

Nutka1998 [239]

Answer:

t oadvertize there is 1,435,164.80 dollars available.

Explanation:

Sales: 9,815,000 x (1 + 4.5%) = 10,256,675.00

general expenses are 41% of sales but will decay by 1.5%

10,256,675 x (0.41) x (1 - 0.015) = 4,142,158.20

Profit will increase by 2%

4,587,600 x (1 + 2%) = 4,679,352

The amount available for advertizing spending is the difference between sales and the cost and profit:

sales - expenses - advertizing = profit

sales - expenses - profit = advertizing

advertizing = 10,256,675.00 - 4,142,158.20 - 4,679,352

advertizing = 1,435,164.80

7 0

3 years ago