A. You have already paid taxes on the money, so it will grow tax free.
Answer: $17,000
Explanation:
Given that,
Budgeted beginning cash balance = $16,000
Budgeted cash receipts total = $188,000
Budgeted cash disbursements total = $187,000
Desired ending cash balance = $40,000
The excess (deficiency) of cash available over disbursements for June will be:
= Beginning cash balance + Cash receipts - Cash disbursements
= $16,000 + $188,000 - $187,000
= $17,000
Answer: $74,000
Explanation:
The Average Investment refers to the average cash invested into a particular project and is useful in calculating the rate of return. The simple formula is to add the beginning value of the asset to its ending value and divide this by 2.
The ending value in this case would be the salvage value;
Average Investment = ![\frac{Beginning Cost of Machine + Salvage Value}{2}](https://tex.z-dn.net/?f=%5Cfrac%7BBeginning%20Cost%20of%20Machine%20%2B%20Salvage%20Value%7D%7B2%7D)
= ![\frac{144,000 + 4,000}{2}](https://tex.z-dn.net/?f=%5Cfrac%7B144%2C000%20%2B%204%2C000%7D%7B2%7D)
= $74,000
Answer:
a. 120, and this indicates that the price level has increased by 20 percent since the base year.
Explanation:
Nominal GDP is the amount of goods and services produced by a country taking inflation and deflation into account. Real GDP is the amount of goods and services produced in a country based on prices of a base year. a base year is a chosen year that is used as a reference.
GDP deflator is calculated as follows:
Nominal GDP ÷ Real GDP × 100
( 12 trillion ÷ 10 trillion ) x 100
= 120
the change ∴ is an increase in 20% from the base year