Answer: A. $53,300,000
Explanation:
Year 2019 balance for Investment
= Cash + Net income - amortization
Net income = Beginning retained earnings 2020 - Beginning retained earnings 2019
= 11 - 8
= 3 million
Balance 2019 = 50 + 3 - 1
= $52 million
Year 2020 balance
= Opening balance + Net income - amortization
= 52 + 1.8 - 0.5
= $53.3 million
= $53,300,000
Answer:
1) Export Competitiveness
2) Moral hazard means lack of incentive to guard against risk where one is protected from its consequences.
3) Government guarantees
Explanation:
1) The appreciation of the U.S. dollar and depreciation of the yuan worked as a catalyst to speed up the Asian currency crisis as the exports were slowed down causing a decline in growth which also gives the motivation to the central bank to devalue their currency more in order to achieve export competitiveness to boost up the exports and economy.
2) The moral hazard in this case was the government guarantees, both implicit and explicit.
3) The moral hazard of government guarantees motivates the investors to invest taking risky adventures since regulations were also lenient, and finance was available. We see over investments backed by the inflated land prices. After that it was the final nail in the coffin when the local investors dump their local currencies in order to buy foreign currencies whereas foreign loans were no longer competitive.
The answer is 40%, in which the following are given: the Variable expense is equal to 20 dollars per unit and Sales is equal to 50 dollars per unit. Use the formula Variable Expense Ratio = Variable Expenses / Sales to get the answer.
Variable Expense Ratio = Variable Expenses / Sales
Variable Expense Ratio = 20 dollars per unit / 50 dollars per unit
Variable Expense Ratio = 40 %
The variable expense ratio is an expression of variable production costs of the company as a percentage of sales, calculated as variable expense divided by total sales. It compares a cost that alters with levels of production to the number of revenues generated by production.
