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3 years ago

Which of the following concerns about the national debt are substantive? Check all that apply.

1 answer:

3 0

Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

Explanation:

When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.

A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.

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Borchardt Corporation has provided the following data concerning last month’s operations. Direct materials $ 29,000 Direct labor

skad [1K]

Answer: $178,000

Explanation:

The following information can be derived from the question:

We have to first calculate the total manufacturing cost. This will be:

Direct material 29000

Add: Direct labor 58000

Add: manufacturing overhead 82000

Then the manufacturing cost will be:

= 29000 + 58000 + 82000

= 169000

We then add the beginning work in progress and then subtract the ending work in progress. This will be:

Manufacturing cost = 169000

Add: Beginning WIP = 66000

Less: Ending WIP = 57000

= 169000 + 66000 - 57000

= $178,000

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3 years ago

Golden Harvest is a restaurant located inside a five-star hotel. It caters mainly to customers who are concerned about quality d

Nikolay [14]

D. A premium rooftop restaurant in the same city will be a part of Golden Harvest's strategic group.

Explanation:

A 5 Star Hotel is a hotel that provides a luxury service to its customers through its operation. It is operated to serve their guest at high level. The materials, tables and each and everything used in the five-star hotel are set with high quality. They provide utmost care to their guest.

In the above scenario, Golden Harvest is the restaurant that is operated inside a five-star hotel. They provide quality dining to their customers. The customers visiting the restaurant expect only the quality and they don’t bother about the prices.

This shows that a premium rooftop restaurant in the same city will be a part of Golden Harvest’s strategic group.

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3 years ago

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

k0ka [10]

Answer:

Wingate Company

1. Contribution format income statement segmented by divisions:

Company East Central West

Sales $ 1,500,000 $350,000 $620,000 $530,000

Variable expenses 655,500 154,000 241,800 259,700

Contribution margin 844,500 $196,000 $378,200 $270,300

Traceable fixed expenses 819,000 294,000 329,000 196,000

Non-traceable fixed expenses 110,000

Net operating income (loss) $ (84,500) $(98,000) $49,200 $74,300

2. Decrease in net operating loss = $45,200

Explanation:

a) Data and Calculations:

Wingate's most recent monthly contribution format income statement:

Sales $ 1,500,000

Variable expenses 655,500

Contribution margin 844,500

Fixed expenses 929,000

Net operating income (loss) $ (84,500)

Additional data:

Division East Central West

Sales $ 350,000 $ 620,000 $ 530,000

Variable expenses as

a percentage of sales 44 % 39 % 49 %

Traceable fixed expenses $ 294,000 $ 329,000 $ 196,000

Implementation of the proposal:

Sales for West = $604,200 ($530,000 * 1.14)

Traceable fixed expenses for West = $225,000 ($196,000 + 29,000)

Contribution format income statement segmented by divisions:

Company East Central West

Sales $ 1,574,200 $350,000 $620,000 $604,200

Variable expenses 655,500 154,000 241,800 259,700

Contribution margin 918,700 $196,000 $378,200 $344,500

Traceable fixed expenses 848,000 294,000 329,000 225,000

Non-traceable fixed expenses 110,000

Net operating income (loss) $ (39,300) $(98,000) $49,200 $119,500

Decrease in net operating loss = $45,200 ($84,500 - 39,300)

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3 years ago

Kier Company issued $660,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to mat

yuradex [85]

Answer:

Interest Expense $39,600

Cash Flow from Operating Activities $39,600

Explanation:

Payment of Interest Expense is the cash expense paid during the year which is deducted from the operating profit in the calculation of net income which is used to determine the cash flow from operating activities.

Interest on the Bond = $660,000 x 6% = $39,600

At the time of payment Journal Entry will be as follow

Dr. Interest Expense $39,600

Cr. Cash $39,600

As the cash is paid against the operating activities.

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3 years ago

What type of bank account is best for everyday transactions?

Ilia_Sergeevich [38]

Answer:

money market account?

Explanation:

I'm not positive but you could try if nobody else has an answer haha

6 0

3 years ago

Read 2 more answers