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iren [92.7K]
3 years ago
5

If a Starbucks tall latte cost $3.20 in the United States and 3 euros in the Euro area, then purchasing-power parity implies the

nominal exchange rate is how many euros per dollar?
a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
b. .938 If the exchange rate is less than this, it costs fewer dollars to buy a tall latte in the U.S. then in the Euro area.
c. 1.067 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
d. 1.067 If the exchange rate is less than this, it costs fewer dollars to buy a tall latte in the U.S. than in the Euro area.
Business
1 answer:
Nataliya [291]3 years ago
5 0

Answer:

a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.

Explanation:

We can see in the example that the Euro is cheaper than the dollar in purchasing-power parity. More specifically, the exchange rate is .938 euros per dollar.

This is why it is more expensive to buy a tall latte in the U.S. than in Europe. The Euro is cheaper.

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Jump Corporation has $2,500,000 of short-term debt it expects to retire with proceedsfrom the sale of 85,000 shares of common st
emmasim [6.3K]

Answer:

$1,700,000

Explanation:

Current liabilities is defined as the obligations a business owes to various parties that is due in less than a year.

Jump Corporation has $2,500,000 of short-term debt this is a current liability that can be reduced by issuing shares.

The shares are issued before the balance sheet is released, so the amount of short term debt that will be exude from current liabilities is the value of shares sold.

Value of shares = price of shares* number of shares

Value of shares= 20* 85,000

Value of shares = $1,700,000

3 0
3 years ago
Which of the following is an important principle for effectively interacting with the audience during presentations? Multiple Ch
n200080 [17]

Answer: Give short responses, as they are more effective.

i really wouldn't try to use any of these choices though. I would really like to get the audience's attention so I would answer there questions but I would also ask the audience what they think I should do to improve via presentation to the audience to peak their interest.

Explanation: None of these are really a good strategy for interacting with the audience in an effective way, but if this is the only thing provided for you, I would go for giving short responses.

4 0
3 years ago
Carducci corporation reported net sales of $3.6 million, average total assets of $1.1 million, and net income of $847,000. The t
Marrrta [24]

CALCULATE TOTAL ASSETS TURNOVER :

TOTAL ASSETS TURNOVER = NET SALES/AVERAGE TOTAL ASSETS

                                            = 3.6/1.1

TOTAL ASSETS TURNOVER = 3.27 TIMES

In financial accounting, an asset is a resource owned or controlled by a company or entity. It is anything that can be used to create positive economic value. Assets represent the value of an asset that can be converted into cash.

An asset is a resource of economic value owned or controlled by an individual, business, or state with the expectation of providing future benefits. Assets are reported on the company's balance sheet. They are classified as short-term, fixed, financial, and intangible.

Despite all this, a car is an asset even for less than what you paid for it because it can be quickly turned into cash on the market. That alone, by definition, makes it an asset. It's these additional costs and constant depreciation that make a car worthless.

Learn more about ASSETS here

brainly.com/question/11209470

#SPJ4

4 0
11 months ago
The demand for one of X Company’s products has declined in recent years. The product is manufactured using designated equipment
djverab [1.8K]

Answer:

$230,000

Revised Question:

The demand for one of X Company's products has declined in recent years. The product is manufactured using designated equipment that originally cost $1,300,000 and has a carrying value of $720,000. As of the current date, December 31, 2012, it is expected that only an additional 400,000 units are likely to be sold over the remaining life of the equipment. Each unit sells for $3 and has a manufacturing cost of $1.50. Relevant information as of December 31, 2018:

The undiscounted future cash inflows from the sale of products over the life of the equipment is expected to be $600,000.

The present value of the future cash inflows from the sale of products over the life of the equipment, calculated at the company's cost of capital, is $475,000.

The equipment has a fair value of $490,000 on the date of evaluation.

How much of an impairment loss will X Company recognize in 2018?

Explanation:

IAS 36 Impairment of Assets states that company's or entity's assets can not be carried at more than their Recoverable Amount

<em>Recoverable Amount</em> equals to higher of Fair Value less cost of disposal and Value in Use

<em>Value in Use</em> is net present value (NPV) of future cashflows generated by an asset.

Lets calculate the Recoverable amount of the equipment of Company X:

Fair Value less Cost of disposal = $490,000 - 0 = $490,000

Value in Use = discounted future cashflows from equipment =  $475,000

<em>So Recoverable Amount is higher of Fair Value less cost of disposal and Value in Use i.e $490,000</em>

<h3>Impairment Loss = Carrying Value - Recoverable Amount </h3><h3>                              = $720,000 - $490,000</h3><h3>                              = $230,000</h3>
5 0
2 years ago
Using an end-of-period spreadsheet, the flow of accounting information moves from the a.financial statements to the adjusted tri
ololo11 [35]

Answer:

C. adjusted trial balance to the financial statements.

Explanation:

The end-of-period spreadsheet can be regarded as accounting tools used in summarizing the movement of transactions that has been carried out throughout an accounting period. It is a tools that give representation of the end of the current accounting period.

permanent accounts that been found

the balance sheet, which are not not closed are been consisted by The post-closing trial balance.

It should be noted that Using an end-of-period spreadsheet, the flow of accounting information moves from the

adjusted trial balance to the financial statements.

3 0
2 years ago
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