What is the best example of a supply shock?

Viral marketing is consistently successful. True False

shutvik [7]

Answer:
Based on what we know, Viral Marking is so successful because it creates curiosity and desire needed to generate the demand for a product or a service.

In conclusion:
Yes, viral marketing is consistently successful.

8 0

3 years ago

Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory usin

stira [4]

Answer:

Ending Inventory Net Realisable Value or LCM is $ 14,000

Net Income Net Realisable Value or LCM is $ 11,900

Explanation:

Purchase Cost Replacement Cost per

Item Quantity Per Unit Total Unit Total Cost NRV

A 1,500 $ 3 4,500 $ 4 $ 4500 $4500

B 750 4 3,000 2 $1500 $ 1500

C 3,500 2 7,000 1 $3500 $ 3500

D 1,500 5 7,500 3 $ 4500  $ 4500 

$ 14000

Ending Inventory $ 22,000

Income Statement

Sales Revenue $ 140,000

Cost of Goods Sold

Beginning Inventory $ 15,000

Purchases 91,000 Goods

Available for Sale 106,000

Ending Inventory 14,000 Applying LCM/NRV

Cost of Goods Sold 92,000

Gross Profit 48,000

Operating Expenses 31,000

Income from Operations 17,000

Income Tax Expense (30%) 5,100

Net Income $ 11,900

4 0

3 years ago

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate

alisha [4.7K]

Answer:

$9.7408

Explanation:

For computing the current stock price, first we have to determine the cost of equity which is shown below:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.5% + 1.70 × (10.50% - 4.5%)

= 4.5% + 1.70 × 6%

= 4.5% + 10.2%

= 14.7%

Now the current stock price would be

Cost of equity = Next year dividend ÷ current stock price + growth rate

14.7% = $0.79875 ÷ current stock price + 6.5%

14.7% - 6.5% = $0.79875 ÷ current stock price

8.2% = $0.79875 ÷ current stock price

So, the current stock price would be

= $9.7408

8 0

4 years ago

Using both the supply and demand for bonds and liquidity preference framework, show how interest rate are affected when the risk

nignag [31]

Answer:

Yes, the results are the same in both frameworks. Please see below for explanation.

Explanation:

With regards to the bond supply and demand framework, people will look to buy more bonds since they are more wealthy now. Hence, the supply of bonds will increase. The supply curve and the demand curve will both move to the right, with the former shifting more than the latter. The equilibrium interest rate will increase.

With regards to the liquidity preference framework, once the economy experiences a positive shift, there will also be an increase in the demand for money. People will make an increased number of transactions as well and hence, the demand curve will move towards the right. The equilibrium interest rate will rise too.

4 0

3 years ago

Suppose that the balance of a company's Allowance for Uncollectible Accounts was $6,200 (credit) at the end of 2015, prior to an

Margaret [11]

Answer:

bad debt expense 38,100

Explanation:

We will adjust the allowance to match the estimated incollectible accounts, this adjustment will done against the bad debt expense account which, will be disclusure on the income statement.

allowance for uncollectble accounts 44,300

current balance (6,200)

adjustment for allowance 38,100

Then, the company will do the adjusting entry:

bad debt expense 38,100 debit

allowance for uncollectible account 38,100 credit

This will be the bad dent expense in the income statement.

7 0

4 years ago