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4 years ago

Which of the following would not be considered leakage in the circular flow model? A imports

Business

2 answers:

NeX [460]4 years ago

6 0

Answer: B: transfer payments

Transfer payments would not be considered leakage in the circular flow model.

Explanation:

Transfer payments are payments or money made to an individual that has not performed any current service. It is also referred to as money given to a person who has not rendered any good for it. It is used by local, state and federal governments as a way of redistributing money to those in need such as the unemployed, aged, disabled people and so on.

eduard4 years ago

3 0

The answer is

C. savings

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During 2017, Sheridan Company expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Sheri

vovangra [49]

Answer:

The $885,000 was transferred to Finished Goods

Explanation:

The computation of the transferred amount to finished good is shown below:

= Material used + labor cost + overhead cost

where,

Overhead cost = (Expected overhead ÷ estimated labor) × actual labor cost

= ($300,000 ÷ $200,000) × $150,000

= 1.5 × $150,000

= $225,000

The other items values would remain the same

Now put these values to the above formula

So, the value would equal to

= $510,000 + $150,000 + $225,000

= $885,000

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3 years ago

Murphy's, Inc., has 85,000 shares of stock outstanding with a par value of $1 per share. The market value is $12 per share. The

nexus9112 [7]

Answer:

The correct answer is $177,955.

Explanation:

According to the scenario, the computation of the given data are as follows:

Capital in excess of par account = $74,500

Common stock = $85,000

Retained earning = $141,500

So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:

Capital after Dividend = Balance sheet amount of Capital + ( Issued additional share × Capital in excess of par per share )

Where,

Issued additional share = 11% × $85,500 = 9,405

And Capital in excess of par per share = $12 - $1 = $11

By putting the value, we get

Capital after dividend = $74,500 + ( 9,405 × $11)

= $74,500 + $103,455

= $177,955

8 0

3 years ago

Westside Manufacturing Co.'s budget at 6,000 units of production includes $36,000 for direct labor and $3,000 for electric power

hoa [83]

Answer:

variable costs of $45,500 and $33,000 of fixed costs

Explanation:

The computation of the variable cost and the fixed cost is shown below:

The fixed cost is $33,000

And, the variable cost is

= 39,000 ÷ 6,000 units × 7,000 units

= $45,500

Therefore variable costs of $45,500 and $33,000 of fixed costs

Hence, the same is to be considered and relevant

3 0

3 years ago

7. Kraft Company expects to give a dividend of $2 next year. Dvidend increases by 4 per cent require a 12% return. What will be

Nat2105 [25]

Answer:

$28.125

Explanation:

Dividend D1= $2

(Dividend is given at the end of 1 year)

Growth g= 4% or 0.04

Required Return r = 12% or 0.12

Step1- Share price of company A today

As per Dividend Growth Model

Share price =Expected dividend/(required return - growth rate)

S0 = Do(1+g) / (r-g)

S0 = D1/(r-g)

S0 = 2/(0.12-0.04)

S0 = $25

Therefore share price of company A today for given details will be $25

Step2 - Expected dividend at the end of 3 years

D4=D0(1+g)^4

( as we already have D1 which is one time growth multiplied, therefore to find dividend at the end of 3rd year we will multiply 1 Less growth multiplier to D1)

D4= D1(1+g)^3

D4 = 2(1+0.04)^3

D4 = $2.25

Step3 - Share price of company A in 3 year

Share price =Expected dividend/(required return - growth rate)

S3 = D4/(r-g)

S3 = 2.25/(0.12-0.04)

S3 = $28.125

Therefore share price of company A in 3 years for given details will be $28.125

7 0

3 years ago

Mountain High Ice Cream Company transferred $65,000 of accounts receivable to the Prudential Bank. The transfer was made with re

Liono4ka [1.6K]

Answer:

Dr Cash 56,550

Dr Receivable from factor 5,500

Dr Loss on sale of receivables 6,450

Cr Accounts receivables 65,000

Cr Recourse liability 3,500

Explanation:

cash = ($65,000 x 90%) - factoring fees = $58,500 - $1,950 = $56,550

factoring fees = $65,000 x 3% = $1,950

loss on sale of receivables (includes factoring fees) = (accounts receivables + recourse liability) - (cash + receivable from factor) = ($65,000 + $3,500) - ($56,550 + $5,500) = $68,500 - $62,050 = $6,450

3 0

3 years ago