Basically examining the promblem
Answer:
a. $200 decrease in net income.
Explanation:
When insurance is paid in advance, the entries required are;
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Given that the Adjustments columns show expired insurance of $200, this will be recorded as an expense and will thus decrease the net income.
Answer:
The demand curve would be a downward straight line graph.
Explanation:
This type of curve is referred to as inelastic demand curve because the decrease in price would not result to an increase in quantity purchased as explained by the question. Majority of the reservation, precisely 25 people from the question are willing to pay reservation proce of 500 as compared to one person whose reservation is different.
Answer:
The GDP in this economy is $6,230 billion.
Explanation:
The GDP can be calculated using the following formula:
Y = C + I + G + (X - M) ....................................... (1)
Where:
Y = GDP of the economy
C = Personal Consumption Expenditures = $4,500
I = Gross Private Domestic Investment = $800
G = Government Purchases = $950
X = Exports = $65
M = Imports = $85
Substituting the values into equation (1), we have:
Y = $4,500 + $800 + $950 + ($65 - $85)
Y = $6,250 - $20
Y = $6,230
Since the figures are in billions of dollars, the GDP in this economy is therefore $6,230 billion.
Answer:
This question requires us to calculate net income and return on assets for the year.
Net income
As sales and profit margin on sales is given so net income can be calculated as follow.
Net income = sales * profit margin
Net income = 837,900 * 8% = $ 71,832
Return on investment
To calculate return on asset we first have to find total asset. Total assets can be calculated as follow.
Asset turnover ratio= Sales/ Asset
Asset = 837,900/1.9 = $ 441,000
Return on asset = 71,832/441,000 = 16.29%
