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3 years ago

The value of U.S. imports is Multiple Choice

Business

1 answer:

Salsk061 [2.6K]3 years ago

6 0

Answer:

Option (1) is correct.

Explanation:

The value of imports refers to the amount of goods that are purchased by the residents of the home country from the foreign country. While calculating the gross domestic product (GDP) of a particular nation the value of imports is subtracted from the value of exports of that nation.

The value of imports doesn't contribute towards the domestic production of United States because these goods are produced in the foreign country.

GDP = Consumption + Investment + Government spending + Net Exports

= Consumption + Investment + Government spending + (Exports - Imports)

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A Japanese steel firm sells steel in the United States and in Japan. Since the United States buys steel from a number of differe

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Answer:

Charge a lower price in the United States and a higher price in Japan.

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3 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

max2010maxim [7]

Answer:

Market Price $985.01

Explanation:

We have to convert the US semiannually rate to annually.

$(1 + 0.078/2)^{2} -1 = 0.079521$

Now this is the annual rate spected for a similar US Bonds

So we are going to calculate the present value using this rate.

Present value of an annuity of 78 for 20 years at 7.9521%

$C * \frac{1-(1+r)^{-time} }{rate} = PV\\$

$78 * \frac{1-(1+0.079521)^{-20} }{0.079521} = PV\\$

PV = 768.55

And we need to add the present value ofthe 1,000 euros at this rate

$\frac{Principal}{(1 + rate)^{time} = Present Value}$

$\frac{1,000}{(1 + 0.079521)^{20} = Present Value }$

Present Value = 216.4602211

Adding those two values together

$985.01

The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.

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3 years ago

The statement of owner's equity begins with the beginning balance followed by a.adding net income less withdrawals b.adding inve

ddd [48]

Answer:

D. Adding investments plus net income less withdrawals.

Explanation:

This statement is generally used to show the owners capital at the beginning of an investment period which is seen or said to affect or changes in balance sheet at a section termed to be the equity section. It is said to reveal and let a shareholder know the additional and subtractional changes that happens/happened in the shareholders account.

In some certain business kind which ranges from a sole proprietorship type of business to the others, movement in capital occurs as a result of some elements.

Therefore it is seen that net income less withdrawals and also investment adding is been seen after an investors equity statement in the beginning of account balancing.

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3 years ago

On September 1, 2021, Southwest Airlines borrows $40.3 million, of which $8.6 million is due next year. Show how Southwest Airli

alexandr402 [8]

Answer and Explanation:

The presentation of the liabilities side of the balance sheet is presented below:

Southwest Airlines

Liabilities side

Balance sheet

Current liability

Current portion of the long term debt $8,600,000

Long term liability

Notes payable $31,700,000 ($40,300,000 - $8,600,000)

Total liabilities $40,300,000

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3 years ago

Exercise 14-8 Presented below are three independent situations. (a) Oriole Co. sold $1,970,000 of 12%, 10-year bonds at 102 on J

bearhunter [10]

Answer:

$116,230

Explanation:

Calculation to determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017.

First step is to find the Cash interest on the Bond calculated as:

Cash interest on the Bond = 1,970,000*12%*6/12 = $118,200

Second step is to find the Premium on Bonds Payable calculated as :

Note that (102%-100%)=2%

Hence,

Premium on Bonds Payable = 1,970,000*0.02 = 39,400

The third step is to find the Semiannual bond Premium Amorixed for both July 1, 2017, and December 31 calculated as :

Semiannual bond Premium Amorixed = 39,400/(10*2)

Semiannual bond Premium Amorixed = 39,400/20

Semiannual bond Premium Amorixed = 1,970

The last step is to calculate Interest expenses for the both July 1, 2017, and July 1, 2017, and December 31 using this formula

Interest Expenses = Cash interest - Premium amortized

Let plug in the formula

Interest expenses = 118,200-1,970 = $116,230

Therefore the amount of interest expense to be reported on July 1, 2017, and December 31, 2017 will be $116,230

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3 years ago