Answer:
Initial outlay = $60,000
Annual net income before tax = $7,200 per annum
Depreciation = <u>Cost - Residual value</u>
Estimated useful life
= <u>$60,000 - 0</u>
12 years
= $5,000 per annum
Annual net cashflow before tax
= Annual net income before tax + Depreciation
= $7,200 + $5,000
= $12,200
Explanation:
In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.
Answer:
Imports is 50.
Current account balance is -30.
Total savings is 30.
After tax reduction total savings is 10.
Explanation:
GNP is given as 100.
The consumption expenditure is 70.
The investment expenditure is 40.
The government spending is 20.
The exports are given as 20.
GNP = C + I + G + EX - IM
100 = 70 + 40 + 20 + 20 - IM
100 = 150 - IM
IM = 50
The current account balance is the difference between exports and imports.
Current account balance
= EX - IM
= 20 - 50
= -30
Total savings in the economy is the difference between disposable income and consumption.
Total savings
= Y - C
= 100 - 70
= 30
In case government reduces taxes, the private saving will increase while the public saving will decrease.
Private saving
= Y - T - C
= 100 - 10 - 70
=20
Public saving
= T - G
= 10-20
= -10
Total saving
= Private saving + Public saving
= 20 + (-10)
= 20 - 10
= 10
Incomplete question. Here's the remaining question;
A. It is a two-party instrument.
B. It necessitates that the seller has to be both the drawer and the payee.
C. It is always payable on demand.
D. It requires that the drawer is holding the drawee's money.
Answer:
C
Explanation:
Note that, to be always paid on demand implies that any time a request is made (demanded) to the bank will be fulfilled.
Therefore, an individual has a sense of security using checks to receive payments.
Answer:
A reduced time in debt
Explanation:
Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.
A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.
Decrease assets, decrease liabilities. Accounts payable are what the business owes (liabilities). By paying off accounts payable, the liabilities are decreasing (they owe less) and the assets are also decreasing (because they use assets/cash to pay off the liabilities, so they have less now).
Hope that helps
