Answer:
$265 billion
Explanation:
The computation of the GDP in year 2 is shown below:
= GDP in year 1 + increase in the business inventories
= $250 billion + $15 billion
= $265 billion
We simply added the GDP in year 1 with the increase in the business inventories so that the GDP in year 2 could come
Answer:
The needed cycle time must be 1.4 min
Explanation:
Given:
Production time per day 
min
Desired unit of output per day 
Total activity 
For finding cycle time,
From the formula of cycle time,
min
Therefore, the needed cycle time must be 1.4 min
<span>The economic resources that are owned by a business are called stockholders' equity.
False</span>
Answer:
False
Explanation:
Instead the reverse is the case. A high times-interest-earned ratio and a low debt-to-equity ratio is viewed by an investor as favorable signs of a company's ability to meet its long-term obligations. When the two measures are combined and they look favorable, investors are attracted to invest in the said company. So companies should work to ensure that the times-interest-earned ratio is high enough to be attractive to investors.
Solution :
The following journal entry will be prepared to record the transactions
Date General Journal Debt($) Credit($)
Jan 1 Investment in Cheyenne Co. 2,418,000
(465,000 x 40% x $13)
Cash 2,418,000
Oct. 25 Cash (465,000 x 40% x $0.4) 74,400
Investment in Cheyenne Co. 74,400
Dec 31 Investment in Cheyenne Co. 373,600
($934,000 x 40%)
Equity income in Cheyenne Co. 373,600
