Answer:
A. $800
B. $1,000
C. a. The quantity of money demanded decreases as the interest rate rises
Explanation:
A. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 8%
Opportunity Cost for 8% interest rate=$8%*$10,000
Opportunity Cost for 8% interest rate= $800
Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 8% will be $800
B. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 10%
Opportunity Cost for 10% interest rate =10%*$10,000
Opportunity Cost for 10% interest rate = $1,000
Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 10% will be $1,000
C. Based on the information given the previous analysis suggest about for money: THE QUANTITY OF MONEY DEMANDED DECREASES AS THE INTEREST RATE RISES.
Answer:
Under classified balance sheet, common stock and retained earnings are reported separately
Explanation:
Under equity section of balance sheet, common stock and retained earnings are line items i.e they are reported under equity section of balance sheet separately.
The total of these two should also be separated i.e the total is a line item also. And this forms the total equity provided there are no other line items for the for the period again.
Answer:
$19,713 unfavorable
Explanation:
Direct labor efficiency variance tells us that how the direct labor is used to product the standard numbers of share. It is calculate by multiplying the difference of actual labor hours and standard labor hours with standard rate.
Formula for the efficiency variance
Direct labor efficiency variance = (Actual Hours - Standard Hours ) x Standard Rate
Direct labor efficiency variance = (3,500 - (0.25x5,700 ) x $9.5
Direct labor efficiency variance = (3500 - 1425 ) x $9.5
Direct labor efficiency variance = $19,713 unfavorable
As the actual Labor hours spent is higher than the estimated so, the efficiency variance id unfavorable.
Answer:
1. Y = 3730
2. Consumption function
Explanation:
1. Given that,
C = 140 + 0.9 (Yd)
T = 0.3Y
Yd=Y-T
I = 400, G = 800, X = 600, M = 0.15Y
Y = C + I + G + (X - M)
Y = 140 + 0.9 (Y - 0.3Y) + 400 + 800 + (600 - 0.15Y)
Y = 140 + 0.9 Y - 0.27Y + 1,800 - 0.15Y
Y = 1,940 + 0.48Y
Y - 0.48Y = 1,940
0.52Y = 1,940
Y = 3,730.76 or 3,730
2. C = 210 + 0.8 (Yd) is a consumption function.
Answer:
$162,520
Explanation:
As per the given question the solution of retained earnings is provided below:-
To reach at retained earning first we need to find out the total expenses and net income which are as follows:-
Total Expenses = Advertising Expense + Income Tax Expense + Rent Expense + Supplies Expense
= $40,000 + $26,000 + $23,400 + $33,800
= $123,200
now,
Net income = Revenue - Expenses
= $200,000 - $123,200
= $76,800
So, the Retained Earnings as of December 31, 2019 = Retained Earnings of January 1, 2019 + Net Income - Dividend
= $115,720 + $76,800 - $30,000
= $192,520 - $30,000
= $162,520
