Answer:
Cullumber Company
Balance Sheet
As at 2022
Explanation: Amount in $
Current Assets
Accounts Receivable 12,500
Cash 13,000
Prepaid Insurance 6,600
Supplies 4,600
Total Current Assets 36,700
Non-Current Assets
Equipment (225,000-36,900) 188,100
Total Assets <u> </u><u>224,800</u>
Liabilities & Shareholders' Equity
Current Liabilities
Accounts Payable 10,600
Notes Payable 65,000
Salaries Payable 3,900
Total Current Liabilities 79,500
Equity
Common Stocks 97,000
Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700) 64,300
Dividends (16,000)
Total Equity 145,300
Total Liabilities & shareholders' equity <u>224,800</u>
Answer:
V = 3.5 (1 dollar circulates 3.5 times in a year)
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Explanation:
Equation of monetisation =
Total money in circulation = Total money demanded/total output
Money Supply * Money Velocity = Price Level * GDP
V = PY/M
Substituting the given values, we get –
V = 336/96
V = 3.5
This indicates 1 dollar circulates 3.5 times in a year
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
If their father Dave allows them to trade chores to achieve gains from trade then "Henry will clean bath tubs; Rose will wash the windows".
<u>Option: C</u>
<u>Explanation:</u>
In this scenario Henry is washing 20 windows or 2 bath tabs in an hour, which showcase his average washing of 10 windows over 1 bath tab in half hour. While here Rose is washing 30 windows or 1 bath tab in an hour by giving average of 15 windows over half bath tab in half hour, which is less than Henry's average of washing.
Thus on considering the above average of work performed by Henry and Rose in equal amount of given time for work, Henry is more prominent to be specialized in cleaning bath tubs while Rose will more expert in washing windows because she is cleaning more windows than Henry in same on hour of time.
Answer:
b. Your portfolio has a beta equal to 1.6, and its expected return is 15%
Explanation:
when a portfolio is given, there exist the posibility to agregate the different calculations made, this is possible using the weights of the different assets whose are part of the portfolio, so in this specifinx example the beta portfolios is calculated as 1.6*50%+1.6*50%=1.6 and the expected return is calculated using the same logic 15%*50%+15%*50%. it does not apply for deviation of the portfolio, at this point is important to see that as there is not correlation coeficient, so there will no be calculated the covariance, so at the end the standar deviation aggregated is 0%
Answer:
$1,125.98
Explanation:
market price of the bonds = present value of face value + present value of coupons
PV of face value = $1,000 / (1 + 0.0599)⁴ = $792.39
PV of coupons = coupon x {1 - [1/(1 + r)ⁿ]} / r = 96.25 x {1 - [1/(1 + 0.0599)⁴]} / 0.0599 = 96.25 x 3.34659 = $333.59
market value = $792.39 + $333.59 = $1,125.98
