Answer:
True
"GDP": Example
One city(City A) harvests 10 tomatoes produced from a local garden that are worth 3 dollars each to sell. Another city(City B) noticed city A's great farming skills, and decided to come to city A, and sell 6 of their freshly made toast for 4 dollars. The sum of city A and city B would be 54 dollars, which is regarding their economic activity and production. Therefore, the statement is true.
Answer:
ROE = 16.98%
Explanation:
The question is to determine Amer Company's Return on Equity
The following steps are taken:
1) The Total Debt ÷ Total Assets = 35%
It means Total Debt ÷ 1000= 0.35
Meaning 0.35 x $1,000 = $350 and this is the total debt
2) Calculate Interest on debt
Interest on debt = Interest rate on total debt x total debt
= 4.57% x $350 = $16
3) Now calculate the Net Income from Earnings before Interest and Tax
Earnings before Interest and tax = $200
less interest $16
Earnings Before Tax $184
Subtract tax (40% of EBT) $73.6
Net income $110.4
4) Calculate the Return on Equity
= Net income/ Shareholders' Equity
= $110.4/ ($1,000-$300)
= 16.98%
Answer and Explanation:
As per the data given in the question,
3 of the above items will appear as a cash inflow from investing activities.
These are as follows :
1. Collection of loan receivable.
2. Cash sale of delivery truck at book value.
3. Sale of a security held as an available-for-sale investment.
Any gain or loss on sale of long term asset is an operating activity although any purchase or sale of a long term asset is come under the investing activities.
Loan receivable is an asset too therefore, it will be shown under investing activities.
Answer:
The PED is -0.4 and the demand for Reena's gloves is inelastic.
Explanation:
The price elasticity of demand(PED) measures the responsiveness of demand to changes in price of the product. If the PED is more than 1 than the demand is said to be elastic while if it is less than 1 than demand is inelastic.
PED = % change in Quantity demanded / % change in Price
PED = [(8 - 10) / 10] / [(6 - 4) / 4]
PED = -0.4
The demand for Reena's gloves is inelastic as PED is less than 1. The minus sign represents that it is a normal good.
Answer: Dr Cash $3,304,790
Cr Bonds payable $2,700,000
Cr Premium on bond issued $604,790
Explanation:
The journal entry to record the bonds’ issuance will be illustrated below:
January 1, 2019
Debit Cash $3,304,790
Credit Bonds payable $2,700,000
Credit Premium on bond issued $604,790
