Answer:
As a result of the price floor, price would increase. As a result, quantity demanded will decrease and the quantity supplied would increase.
Supply would exceed demand and as a result there would be an excess supply of fish.
As an alternative to the price floor, the government can subsidise the cost of fishing. This would reduce the cost of producing fish
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Answer:
$4,000
Explanation:
The asset's recovery period is 5 years and the half-year convention applies.
Therefore :
$20,000 ×0.20 = $4,000.
Answer:
Lucia's cash flows from operating activities would be:
$132,000.
Explanation:
Accounts Receivable End: $30,000 Beginning: $29,000 = -$1,000
Accounts Payable End: $24,000 Beginning: $26,000 = -$2,000
Net Income : $ 135,000
To calculate the total cash flow from operating activities it's necessary to deduct of the Net Income the variance of these accounts which indicates a negative variance during the year, -$2,000 on accounts payable because the company paid more bills these year than before, and -$1,000 because the company expand their credit line to customers.
Cash Flow: $135,000 - $1,000 - $2,000 = $132,000.
Answer:
Debit Credit
Interest Expense 5,157
Long term Bonds 5,157
Explanation:
The 7%bond is issued by the Whispering Corporation on November 1, 2017 and the Whispering Corporation is using effective interest method with an interest rate of 6%, therefore the adjusting entry shall be recorded as at December 31,2017 in respect of interest accrued for two months i.e. November and December 2017 by following amount:
515,707*6%*2/12=5,157
The following adjusting entry shall be recorded in accounts of Whispering Corporation in respect of interest accrued as at December 31, 2017:
Debit Credit
Interest Expense 5,157
Long term Bonds 5,157
Answer:
see below
Explanation:
1. Personal Savings
The sole trader can invest his savings into his business for expansion. A sole trader who is confident about his business's prospects will be prepared to invest additional savings into the business for growth. The use of savings relieves them from the strain of interest payments and enables them to retain full control over the business.
2. Sale of Assets
Should a sole trader require funds to expand their business, they opt to dispose of some of their assets. If the trader does not have savings or retained earnings and have a property registered in their name, they may decide to sell it to raise capital.
