Sheridan Company shows the following balances in selected accounts of its adjusted trial balance.

Calculate the values for each of the questions. Assume that in each country there are no taxes, international trade, or inflatio

Inessa [10]

Explanation:

a. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

1.5 = 1 ÷ 1 - MPC

So, MPC is 0.3333

Now the real GDP is

= Multiplier × Government spending

= 0.3333 × $70 billion

= $105 million

So the change in real GDP is

= $105 million - $70 million

= $35 million

b. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

Multiplier = 1 ÷ 1 - 0.6

So, multiplier is 2.5

Now the real GDP is

= Multiplier × Government spending

= 2.5 × $16 billion

= -$40 million

c. As we know that

Real GDP = Multiplier × Government spending

$280 billion = Multiplier × $70 billion

So, the multiplier is 4

Now the MPC is

Multiplier = 1 ÷ 1 - MPC

4 = 1 ÷ 1 - MPC

So, the multiplier is 0.75

3 0

3 years ago

The ________ takes into account such costs as deteriorated customer relations and lost sales

Sergio039 [100]

The Full cost view of maintenance takes into account such costs as deteriorated customer relations and lost sales.

a cost that an employer has when they employ someone, in addition to the cost of paying the person's salary or wages. cost is the amount or equivalent paid or charged for something .

Examples of costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

Direct, indirect, fixed, and variable are the 4 main kinds of cost.

learn more about cost here

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7 0

1 year ago

Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house

aev [14]

Answer:

$532,500

Explanation:

The question is to compute the Statement of Cost of Services Sold for Happy Home Helpers Inc.

To compute this statement, the approach is to sum all direct costs associated with the service provided by the firm.

Particulars Amount Amount

Opening Inventory Of Materials $4,000

Add: The Purchase of Direct Materials $25,600

Direct Material available $29,600

Subtract: Closing Inventory of materials ($2600)

The Direct Material Used for the year $27,000

Add:

Direct Labour Cost $472,500

Variable Overhead Cost $15,000

Fixed Overhead cost $18,000

$505,500

The Cost of Services of HHH Inc $532,500

7 0

3 years ago

Which statement below best describes the accounting equation? Multiple Choice The change in retained earnings equals net income

8_murik_8 [283]

Answer:

The correct answer is Resources of the company equal creditors' and owners' claims to those resources.

Explanation:

It can be used to determine that the income or income of the consumer is exactly equal to the expense (purchase) of goods, for the determined period of consumption. In other words, by adding the value spent on the acquisition of goods "x" and goods "y". To have such values it is enough to multiply the number of possible units to acquire - in each of the points - by their respective price and then add them; This can be done at any point in the price line.

4 0

3 years ago

The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and

olga_2 [115]

Answer:

Explanation:

incorrect answer

a credit balance of $7500

correct answer

a debit balance of $7500.

6 0

3 years ago

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