Answer:
$10,000 increase in stockholder equity
Explanation:
The buying of treasury stock reduces the balance of stockholder equity but when the treasury stock is reissued or we can say after purchase, the sale of treasury stock is done for $10,000. So, it increases the balance of stockholder equity
It means that the purchase of treasury stock has an adverse impact on stockholder equity whereas reissued shares have a positive impact on stockholder equity
Answer:
Severe Inflation
Above $2.34
Explanation:
If this economy has encountered a Recovery from Point "R" to Point "X" (as viewed by the Keynesian Model), then one Risk is a movement toward Point "P" with severe inflation. The corresponding AS/AD Model would move from a Price Level of $2.00 to above $2.34.
Answer:
B. False
Explanation:
Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).
Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.
Return on investment can be used to determine
1. Profitability of a stock investment,
2. Profitability of the purchase of a business investment
3. Profitability of a real estate business
ROI = Net return / cost of investment × 100
Net return= Final value of investment - initial value of the investment
Answer:
The shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B would be greater than $50 billion.
Explanation:
Basically, aggregate demand can suffer two types of movements: displacements or changes in the slope. We are assuming a straight slope, but we could well analyze the case of an aggregate demand that is not straight.
DISPLACEMENTS
They are produced by changes in autonomous consumption. Changes in autonomous consumption may be due to changes in:
- Income distribution
- Access to credit
- Expectations
- Population changes
- Changes in relative prices between goods that belong to autonomous consumption (some foods) and goods that do not belong to autonomous consumption
CHANGES IN THE PENDING
They are produced by changes in the marginal rate to be consumed. Changes in the marginal rate to be consumed may occur due to:
- Changes in the utility function: they can change the preference for savings.
- Changes in income distribution
- Changes in the interest rate
Answer:
The company needs to borrow $25000 and option B is the correct answer.
Explanation:
If the ending amount of cash for the year is less than the desired ending balance, then the company will need to borrow to maintain the desired level of cash balance.
To calculate the amount needed to be borrowed, we first compute the ending cash balance for December. The ending cash balance will be,
Closing Balance = Opening Balance + Receipts - Payments
Closing Balance - December = 14000 + 127000 - 126000
Closing Balance - December = $15000
The difference between the closing cash balance and the desired closing cash balance is the amount that the firm will need to borrow.
Amount need to be borrowed = 40000 - 15000 = $25000
