Answer:
the cash inflow from the sale of securities is $7,000
Explanation:
The computation of the cash inflow from the sale of securities is shown below:
= Opening balance + purchase marketable securities + gain on the sale of marketable securities - ending balance
= $86,000 + $10,000 + $1,000 - $90,000
= $97,000 - $90,000
= $7,000
hence, the cash inflow from the sale of securities is $7,000
Answer:
AD shifts left and price level would decrease.
Explanation:
If consumer wealth decreases due to a plunge in the stock market, the AD curve will shift to the left. This is because shifts to the left of the AD curve represent a reduction in demand, and if consumers are poorer, they will naturally decrease their demand.
This will in turn reduce the price level, because in a market system, prices will fall until they meet the new, lower demand, meaning that a new equilibrium price is reached.
Answer: $471,324.61
Explanation:
Price of a bond = Present value of coupon payments + Present value of face value at maturity
Coupon payments = 500,000 * 11% * 1/2 years = $27,500
Periodic yield = 12%/ 2 = 6% per semi annual period
Periods = 10 * 2 = 20 semi annual periods
Coupon payment is constant so it is an annuity.
Price of bond = Present value of annuity + Present value of face value at maturity
= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods
= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰
= $471,324.61
Answer:
the inventory should be recorded at $8,500
Explanation:
As we know that according to GAAP, the inventory should be recorded at a cost or net realizable value whichever is lower
So as per the question
Historical cost is $12,000
And, the net realizable value is
= Expected selling price - expected selling cost
= $9,000 - $500
= $8,500
So, the lower cost is $8,500
Hence, the inventory should be recorded at $8,500
Risk evaluation involves rating the risks that may happen based on the likelihood of them happening. Risk evaluation also involves rating these potential happenings based on the impact they could have on the business. Evaluating risk is a step in the creative process of risk management.
