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andre [41]
3 years ago
8

2. Consumption and saving definitions Suppose Ana gets a sales bonus at her place of work that gives her an extra $600 of dispos

able income. She chooses to spend $480 and save the remaining $120. From this, you can tell that Ana's marginal propensity to consume (MPC) is , and her marginal propensity to save (MPS) is . Mathematically, it must always be true that: Consumption = Therefore, it must also be true that: MPC =
Business
1 answer:
miskamm [114]3 years ago
5 0

Answer:

From this, you can tell that Ana's marginal propensity to consume (MPC) is <u>0.80</u>, and her marginal propensity to save (MPS) is <u>0.20</u>. Mathematically, it must always be true that: Consumption = Therefore, it must also be true that: MPC = <u>1 - MPS.</u>

Explanation:

Marginal propensity to consume refers to amount that a household decides to spend of every extra dollar that they earn. Since you either spend or save money, the marginal propensity to save is the portion that you decided not to spend, and therefore, save.

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Exercise 5-66 Bad Debt Expense: Percentage of Credit Sales Method Gilmore Electronics had the following data for a recent year:
Stels [109]

Answer:  Debit Bad debt expense $11,264, Credit Allowance for bad debt $11,264; Debit Allowance for bad debt $9,650, Credit Accounts receivable $9,650.

Explanation: Percentage of credit sales method means bad debt expense expressed as a percentage of sales.

The estimated bad debts rate is 2.2%, which translates to 2.2% of $512,000 (credit sales) = $11,264. The firm has to record this, being the estimated bad debts rate, as Debit to bad debt expense and Credit to allowance for bad debt. However, accounts receivable that was deemed uncollectible is $9,650. This amount would be taken out from the buffer in allowance account by debiting allowance for bad debt and crediting accounts receivable.

5 0
3 years ago
Your client, Vinces Veggies, wants to increase downloads of their popular recipe printouts. You suggest they create ad groups ba
GrogVix [38]

Answer:

Default bid amount  and keyword list.

Explanation:

Veggies' keyword list should include all the words and phrases that describe his recipes and himself (or his business). Keywords are used by Google to decide where an ad will appear and to whom should they show them to.

Your ad's default bids will apply to all the keywords (included in your previous list) that don't have individual bids. This bid amount is how much you will pay per click of your google ad.

6 0
3 years ago
The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summ
marishachu [46]

Answer and Explanation:

The computation is shown below:-

Incorrect

ROA = Net Income ÷ Average assets

= $101,900 ÷ (($550,000 + $573,000) ÷ 2)

= $101,900 ÷ $561,500

= 0.18

ROE = Net Income ÷ Average equity

= $101,900 ÷ (($340,000 + 356,000) ÷ 2)

= $101,900 ÷ $348,000

= 0.29

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000) ÷ 2)

= $217,000 ÷ $561,500

= 0.39

EPS = Net Income ÷ Number of Common Shares

= $101,900 ÷ 22,000

= $4.63

Correct

ROA = Net Income ÷ Average assets

= ($101,900 - $8,500) ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $93,400 ÷ $557,250

= 0.17

ROE = Net Income ÷ Average equity

= ($101,900 - $8,500) ÷ (($340,000 + 356,000 - $8,500) ÷ 2)

= $93,400 ÷ $343,750

= 0.27

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $217,000 ÷ $276,500

= 0.78

EPS = Net Income ÷ Number of Common Shares

= ($101,900 - $8,500) ÷ 22,000

= $4.25

5 0
3 years ago
The _______ transport of auxin establishes the orientation of growth; the _______ redistribution of auxin causes a growth respon
Novosadov [1.4K]
This is the complete sentence: the polar transport of auxin establishes the orientation of growth, the lateral redistribution of auxin causes a growth response to an enviromental stimulus  that is called morphogenesis.<span />
5 0
3 years ago
Given the following data for Harder Company, compute cost of goods manufactured: Direct materials used $120,000 Beginning work i
il63 [147K]

Answer:

c. $480,000

Explanation:

Cost of goods manufactured        $

Direct materials used               120,000

Direct labor                               200,000

Manufacturing overhead         150,000

Beginning work in process      20,000

Ending work in process          <u> 10,000  </u>

Cost of goods manufactured <u> 480,000 </u>

So, Correct option is c. $480,000

4 0
3 years ago
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