Answer:
The budgeted selling expenses for the month of July is $220,000
Explanation:
The computation of the budgeted selling expenses are shown below:
= Sales commission + sales manager's salary + shipping expenses + miscellaneous selling expenses
where,
Sales commission = Sales × commission percentage
= $400,000 × 4%
= $16,000
Shipping expenses = Sales × expenses percentage
= $400,000 × 1%
= $4,000
The other expenses amount would remain the same
Now put these values to the above formula
So, the value would equal to
= $16,000 + $190,000 + $4,000 + $10,000
= $220,000
Answer:
FIFO ending inventory 300 dollars
LIFO ending ivnentory 200 dollars
Explanation:
May-1 Inventory 30 units at $8 $ 240
15 Purchases 25 units at $11 $ 275
24 Purchases 35 units at $12 $ 420
Total good available 90 units for a value of $935
We sale 65 units therefore, 25 units remains in our ending inventory.
FIFO will sale the first units leading the newest for inventory
So May 24th would be our ending inventory:
25 units x $12 = $300
LIFO will sale the newest and leave the oldest as inventory.
May 1st units are still at inventory according to LIFO
25 units x $8 = $200
Answer:
25%
Explanation:
Accounting rate of return =( Net income from investment ÷ Cost of investment ) × 100
Net income from investment = $100,000
Cost of investment = $400,000
Required rate of return = ($100,000 / $400,000 ) × 100
= 0.25 × 100
= 25%
Answer:
The correct answer is: firms are unlikely to undertake investment.
Explanation:
The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.
The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.
The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.
