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3 years ago

What characteristic of economic theory makes it scientific?

1 answer:

7 0

Predictability is characteristic of economic theory makes it scientific.

The production, distribution, and consumption of commodities. In Gonzales v Raich a majority of the Supreme Court of the United States, under the penmanship of Justice Stevens, wrote that economics and economic activity means: "... the production, distribution, and consumption of commodities."

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A company had average total assets of $955,000. Its gross sales were $1,108,000 and its net sales were $940,000. The company's t

Natali5045456 [20]

Answer:

It is 0.98

Explanation:

Total Assets Turnover Ratio(TATR) = Net Sales

Average Total Assets

Net Assets =Gross Sales-Trade discounts-Sales tax-Sales return

TATR = 940,000/955,000 = 0.98 times

It is the ratio of a company's net sales to its average assets employed.

It is a ratio that tells how efficient the company is using its assets to generate its revenue.

The drawback of this ratio is that, if the divisional manager performance is based on this, it may sometimes leads to short-term view of performance. This may then encourage dysfunctional behaviour which may include refusal to replace an old assets with lower based value which when replace may reduce this ratio because of the higher based value of the new assets while sales still remain the same

6 0

3 years ago

a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only

weqwewe [10]

Answer:

Trial Balance : Debit 15558 = 15558 Credit

Explanation:

b.) Noncollectable amount = $5300 * 35% = 1855

Entry: Dr bad debts expense 1855

Cr Allowance for bad debts 1855

(To record bad debts expense).

5300-1855= 3445 * 3% = $103 will not be collected.

Entry: Dr Bad debts expense 103

Cr Allowance for bad debts 103

( To record bad debts expense)

d.) Entry:

Dr Income tax expense 13600

Cr Income tax payable 13600

(To record accrued income tax expense).

Ledgers :

Bad debt expense = 1855+103 = 1958

Allowance for bad debts = 1855+103 = 1958

Income tax expense = 13600

income tax payable = 13600.

Trial balance:

_Dr__________________________________________________Cr____

Bad debt expense 1958 ----- 1958 Allowance for bad debts

Income tax expense 13600 ----- 13600 Allowance for bad debts

Total = 15558 ------- Total = 15558

5 0

3 years ago

For the scenario below, determine the legality of the company's actions.

IgorLugansk [536]

Answer:

Option C because it is impossible to determine the legality based on the facts given.

Explanation:

5 0

3 years ago

When an electrical circuit is capable of conducting current.

mario62 [17]

Answer: When the switch is closed.

Explanation: The current is the flow of charges, the current can only flow when the switch is closed

3 0

3 years ago

Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yield

zheka24 [161]

Answer:

WACC 10.42614%

Explanation:

First we use CAPM to solve for the cost of equity

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.04

market rate

premium market (market rate - risk free) 0.08

beta(non diversifiable risk) 1.1

$Ke= 0.04 + 1.1 (0.08)$

Ke 0.12800

Then we calculate the WACC (weighted average cost of capital)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

D 80,000 bonsd x 1,000 = 80,000,000

E 4,000,000 shares x 40 = 160,000,000

E+ D 80,000,000 + 160,000,000 = 240,000,000

equity weight: 2/3

liability weight: 1/3

Ke 0.128

Equity weight 0.6667

Kd 0.086

Debt Weight 0.3334

t 0.34

$WACC = 0.128(0.6667) + 0.086(1-0.34)(0.3334)$

WACC 10.42614%

6 0

2 years ago