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3 years ago

When the economy is experiencing a recession automatic stabilizers will cause?

1 answer:

8 0

If the economy is experiencing or will be having a recession automatic stabilizers, it will cause the following: The economy will have an increase towards the transfer payments, while the tax revenues will be decreased because of the recession of automatic stabilizers.

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Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,656, would have a useful life of 7 ye

poizon [28]

Answer:

19%

Explanation:

Calculation for what The internal rate of return on the investment in the tractor-trailer is closest to

First step is to calculate Factor of the internal rate of return (IRR)

using this formula

Factor of the internal rate of return(IRR)= Cost ÷ Additional Net annual cash inflow

Let plug in the formula

Factor of the internal rate of return(IRR)= $281,656 ÷ $76,000

Factor of the internal rate of return(IRR)= 3.706

Now let determine The internal rate of return on the investment

Based on the above calculation since Factor of the internal rate of return(IRR) for 7 years is 3.706 which means that the internal rate of return (IRR) will be 19%.

The internal rate of return on the investment can also be calculated using below Excel formula

=RATE(7,$76,000,-$281,656)

IRR=19%

The internal rate of return on the investment in the tractor-trailer is closest to 19%

4 0

3 years ago

Fred is required to pay Wilma $12,000 of alimony each year until their child turns 18. At that time, the payment will be reduced

Elan Coil [88]

Answer:

c. $12,000

Explanation:

In this question, we assume the Fred and Wilma divorced in year i.e before 2019. Since in the question, it is given that the Fred paid $6,000 Wilma and $6,000 directly to the Law school Wilma is attending i.e not related to the child

Both payments are related to Wilma so we consider these payments and reflects the received payment which equals to

= $6,000 + $6,000

= $12,000

All other information which is given is not relevant. Hence, ignored it

4 0

3 years ago

At the beginning of July, CD City has a balance in inventory of $2,550. The following transactions occur during the month of Jul

Gemiola [76]

Answer:

Inventory 1450 debit

Accounts Payable 1450 crdit

--to record purchase--

Inventory 120 debit

Cash 120 credit

--to record payment of freights--

Accounts Payable 400 debit

Inventory 400 credit

--to record returned goods--

Accounts Payable 1050 debit

Inventory 21 credit

Cash 1029 credit

--to record payment within discount--

Accounts Receivables 4100 debit

Sales Revenues 4100 credit

--to record sale--

COGS 2150 debit

Inventory 2150 credit

--to record COGS of the previous sale--

Cash 4,100

Accounts Receivables 4100

--to record collection--

Explanation:

For the purchase we must adjust teh invoice nominal as we are paying within the discount windows and also, there was returned goods.

Balance of the account payable:

1450 - 400 return = 1050

Then 2% discount: 1,050 x 0.02 = 21

Cash payement: 1,050 - 21 = 1,029

The sale do not have credit terms for discount neither a return thus, we don't have to make any adjustment to the invoice nominal the customer pay that amount.

3 0

4 years ago

Read 2 more answers

Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw mate

Ket [755]

Answer:

Dr Raw materials inventory 84,000

Cr Accounts payable 84,000

Dr Work in process inventory 38,000

Cr Raw materials inventory 38,000

Dr Factory overhead 13,500

Cr Raw materials inventory 13,500

Dr Work in process inventory 31,000

Dr Factory overhead 14,000

Cr Cash 45,000

Dr Factory overhead 7,250

Cr Cash 7,250

Dr Work in process inventory 37.200

Cr Factory overhead 37,200

Dr Finished goods inventory 58,500

Cr Work in process inventory 58,500

Dr Cost of goods sold 58,500

Cr Finished goods inventory 58,500

Dr Accounts receivable 84,000

Cr Sales revenue 84,000

4 0

3 years ago

The Fed buys $10 million of securities from AIG. AIG has a desired reserve ratio of 0.05, and there is no currency drain.

Andreyy89

Answer:

$200,000,000

Explanation:

Given that:

Amount of securities purchased = $10 million

Desired reserve ratio = 0.05

The bank's excess reserve :

Money multiplier * amount of securities purchased

Money multiplier = 1 / reserve ratio

Money multiplier = 1 / 0.05 = 20

Excess reserve = 20 * $10,000,000

Excess reserve = $200,000,000

3 0

3 years ago