Answer:
$15,850
Explanation:
Particulars Amount
Sales revenues, each year $40,000
Less : Depreciation $10,000
Less : Other operating costs <u>$17,000</u>
EBIT $13,000
Less : Interest expense <u>$4,000</u>
EBT/PBT $9,000
Less: Tax at 35% <u>$3,150 </u> ($9,000*35%)
PAT $5,850
Add: Depreciation <u>$10,000</u>
Cash flow after taxes <u>$15,850</u>
Answer:
1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.
2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.
Explanation:
Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.
In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.
Answer:
d. Revenue recognition
Explanation:
The principle of revenue recognition occurs when the revenue is recognized or earned whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here implies that the customer receives the product but the payment was made afterward.
Since the given scenario reflects the violation of the revenue recognition principle.
Answer:
Co-operatives throughout the world share a set of values that give them their distinctive character.
Self-help
In co-operatives, people help each other whilst helping themselves by working together for mutual benefit.
Self-responsibility
Individuals within co-operatives act responsibly and play a full part in the organisation.
Democracy
A co-operative will be structured so that members have control over the organisation – one member, one vote.
Equality
Each member will have equal rights and benefits (according to their contribution).
Equity
Members will be treated justly and fairly.
Solidarity
Members will support each other and other co-operatives.
This is called Full Employment or sometimes referred to as “economic peak”.
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