Erik has a five-dollar bill. He uses it to pay for a soda and a hamburger. What form of financial exchange is this?

Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that

Vanyuwa [196]

Answer:

Deposited amount will decrease by 1% and $2,000

Explanation:

Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.

We will use following formula to calculate the impact

Nominal rate = Real interest rate + Inflation rate

5% = Real interest rate + 6%

Real interest rate = 5% - 6% = -1%

The deposited amount will be decreased by 1%.

Deposit value = $200,000 x ( 1 - 1% ) = $198,000

Decrease in value = $200,000 - $198,000 = $2,000

6 0

3 years ago

Provide the summary journal entry which shows the cash flow for each of the following for Mike Roe Computers during the reportin

IrinaK [193]

Answer:

a. DR Cash CR Customer

b. DR Suppliers (Liability) CR Cash

c. DR Employees (Salaries) CR Cash

d. DR Interest Expense CR Cash

e. DR Insurance Expense CR Cash

f. DR Income Taxes CR Cash

Explanation:

This is an accounting question that attempts to test your understanding of Journal entries.

The logic behind journal entries rests on the understanding of double entry principle in accounting that states that for every debit entry, there must be a corresponding credit entry.

Furthermore, you credit the giver and debit the receiver for any transaction.

There is a simpler way to understand this though.

I will make a little assumption that you understand what assets, expenses, losses and liabilities are;

Based on this assumption;

whenever assets, expenses and losses go up or increase, you Debit (DR) them but when they go down or reduce, you Credit (CR) them

Also, whenever Capital, incomes, and Liabilities go up or increase, you Credit (CR) them and whenever they go down or decrease, you Debit (DR) them.

Please feel free to ask me further questions on this, I am sure the little explanation I have given above will help you with any journal entry question.

Thank you.

3 0

3 years ago

The distribution of income for Dismal is as follows: Number of Families Income 1,000 less than $10,000 2,000 between $10,000 and

RUDIKE [14]

Answer:

The correct answer is:

$20,000 (b.)

Explanation:

In order order to calculate the poverty line for Dismal, we will first of all calculate the total number of families in Dismal as follows:

from lowest to high income = 1,000 + 2,000 + 2,000 + 800 + 200 = 6,000

Next, we are told that the poverty rate = 50% = 0.05

Since the Total families = 6000

Therefore, number of poor families = 50% of 6,000 = 0.05 × 6000 = 3,000

Therefore 3,000 families are poor in Dismal

To determine the poverty line, we will count from the lowest earning families upwards until the 3,000th family. The highest income of the 3,000 families counted forms the poverty line. This is done as follows:

1,000 families = $10,000

2,000 families = $10,000 to $20,000

These two groups make up the first 3000 families, and the highest income in the group is $20,000.

Hence the poverty line of Dismal = $20,000

5 0

3 years ago

You are considering a project which will provide annual cash inflows of $7,500, $3,000, $9,000, and $12,430 at the end of each y

Blababa [14]

Answer:

$25,161.15

Explanation:

The computation of the present value of the cash flows is presented below:

Years Cash flows Discount factor Present value

1 $7,500.00 0.9174311927 $6,880.73

2 $3,000.00 0.8416799933 $2,525.04

3 $9,000.00 0.7721834801 $6,949.65

4 $12,430.00 0.7084252111 $8,805.73

Present value $25,161.15

The discount factor should be computed below

= 1 ÷ (1 + rate)^years

3 0

3 years ago

Ryan’s shoe store sells a variety of shoes. his “active shoes” campaign is reaching the daily budget cap by the early afternoon.

irina1246 [14]

What should Ryan do in order to get more traffic for his products is to increase the budget cap of the campaign, this will have a benefit towards their goal because if there is enough budget cap, they may gain advantages in terms of having their products to be as much and to be sold to wide variety of consumers, increasing order for their product.

8 0

3 years ago