Explanation:
1. Working "off of books involves working within the underground economy, in which government economic activities are hidden to avoid taxation or laws, or in which products and services are sold illegally.
2. As the government is shielded from activities within the informal economy, they would not be included in GDP figures.
3. If GDP is calculated accurately, the government will find it difficult to set strategies to accomplish macroeconomic objectives. Normally, the government does not receive tax revenue from illegal sales. This could result the government to raise taxes on non-underground company individuals and companies, thus prohibiting their jobs, saving and investment.
Pretty sure it’s product line
Answer:
Gross profit = $4,305
Explanation:
<em>The average cost per unit is the total cost of the goods available for sale divided by the total units of goods available</em>
Average cost per unit=
= (250× 6) + (490 × 6) + (740 at $7 )/ (250 +490 + 740)
=$6.5
Cost of golds sold = 1,230 ×6.5 = 7995
Gross profit = Sales Revenue - Cost of goods sold
= (1230 × 10) - 7,995
= $4,305
Answer:
$5,000
Explanation:
Since the payments are due semi-annually and the bond were issued on January 1, 2016 at 100, we will have to calculate the interest cash payments for the two semi-annuals in 2016. Therefore, the interest rate to use is the full annual 5% stated rate. Therefore, we have:
Interest cash payment = Bond face value × Interest rate
= 100,000 × 5%
Interest cash payment = $5,000.
Therefore, the cash interest payments in 2016 is $5,000.
