Answer:
Engineering Enterprises P.C.
At the end of the month, Cash would equal:
C) $43,000.
Explanation:
a) Data and Calculations:
Cash Account:
Lori investment in Engineering Enterprises P.C. = $30,000
Payment of salaries to the receptionist = (1,000)
Cash received from a customer on account = 6,000
Cash borrowed from the bank = 8,000
At the end of the month, Cash would equal $43,000
b) The cash balance at the end of the month is made up of the investment by Lori for common stock in Engineering Enterprises P.C. and the cash received respectively from a customer and the bank, minus the cash payment made to the receptionist as salaries.
Answer:
Money owing to bank, Motor Van, Stock of goods
Explanation:
Answer:
1. Determine the effects of this transaction on
a. Exports - There will be no effect on the export of the USA;
b. Imports - The initial amount spent on the importation of the toys and the videogame plus $10,000.00 spent on the importation of PlayNation Perfect Video game console to increase the inventory will put the Japanese economy on a favourable BalanceBalance of Payment (BOP) because money came into the economy and left the USA economy simultaneously.
c. Net exports in the U.S. economy will be<em> low.</em>
Explanation:
a. Exports - There will be no effect on the export of the USA because the store did not export anything rather it imported the PlayNation Perfect video game console from a Japanese company and spent an additional $10,000.00 to increase his inventory. Simply put, money left the US economy without a complementary import to strike a balance in Balance of Payment.
b. Imports -<em> </em>The initial money spent in the importation of the consignment and $10,000.00 spent to increase his inventory will put the Japanese economy on a favourable Balance of Payment (BOP) because money came into the economy and left the US economy;
c. Net exports in the U.S. economy will be<em> low because there were importations of goods into the economy without corresponding export to have a favourable Balance of Payment in the International Trade. It is when the Exports in USA is greater that that of the import that you have a favourable Balance of Paymet and it translates to improve GDP.</em>
Answer:
If the Cobb Douglas production funtion is
This function is homogeneous of degree 3: To understand that, we first must know that a function f(K,L) is homogeneous of degree "m" if . Intuitively, this means that, when you increase your productive factors (in this case, we are talking about a production function), by a factor "", your output increases by . Depending on the value of m, the function will exhibit increasing returns to scale (m>1), decreasing returns to scale (m<1) or returns to scale equal to 1 (when m=1).
- In this case, . Applying distributive power's property, we get .
- Because of power property, we can associate terms and get (remember that .
- Finally, . In this case the function is homogeneous of degree 3 because when multiplying K and L by , the function as a whole is multiplied by .
Euler's Theorem: this theorem states that, if a function is homogeneous of degree "m", the following must hold: .
- To prove it, we should then calculate the partial derivative of Q with respect to L and K respectively, and apply the previous definition to see if the statement holds.
- Applying Euler's Theorem then means should be equal to (remember that in this case, m=3, see previous exercise).
- Solving
- Then the Euler's Theorem is verified!
Answer:
Cost of goods sold.
Explanation:
GOMEZ CORPORATION
Comparative Income Statements
Particulars amount (2015) % amount (2014) %
Sales $750,000 100 $695,000 100
Cost of goods sold (568,100) (75.75) (288,800) (41.55)
Gross profit 181,900 24.25 406,200 58.45
Operating expenses (128,000) (17) (272,000) (39)
Net income $53,900 7.25 $134,200 19.45
From the above calculation, we can say that the cost of goods sold decreases the net income. In this math, due to the increase in the cost of goods sold, net income declines.