Answer:
$4,000
Explanation:
Implicit cost is the cost which is an income foregone internally, that is not the exact opportunity cost, here opportunity cost is salary foregone, that is $60,000.
But implicit cost would be $4,000 if the financial assets are now used in business, and are not left as they are.
Implicit cost is internally generated opportunity cost.
Since here he outlays, $8,000 let us say these were used earlier as financial assets to generate revenue, now $4,000 would be considered as implicit cost, that is earlier generated revenue from internal funds.
Final Answer
$4,000
In an independent marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members.
<h3>What is marketing channel ?</h3>
A marketing channel can be described as the channel that consist people, organizations, and activities necessary to transfer the ownership of goods from the point of production to consumption.
It shoul;d be noted that this can be seen as the way products get to the end-user, the consumer; and is also known as a distribution channel.
Therefore, option B is correct.
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Answer:
See explanation for the answer.
Explanation:
1.
Balances of bonds payable, bond investment, interest income and interest expense are to be considered
Proceeds from for bonds (1400000*50%*0.95) 665000
Carrying value of bonds
Face value (1400000*50%) 700000
Unamortized premium (8/10*(1400000*50%*0.09)) 50400
Carrying value 750400
Gain on retirement of bonds 85400
2.
General journal Debit Credit
Bonds payable 700000
Premium on bonds payable 44100
Interest income 74375
Investment in bonds (665000+4375) 669375
Interest expense 63700
Gain on retirement 85400
Answer:
The correct answer is option (e).
Explanation:
According to the scenario, the computation of the given data are as follows:
Capital budget = $1,000,000
Debt = 60%
Equity = 40%
Net income = $550,000
So, we can calculate the total dividend by using following formula:
Total dividend = net income - ( Equity × Capital budget )
= $550,000 - ( 40% × $1,000,000 )
= $550,000 - $400,000
= $150,000
Answer: The answer is central bank
Explanation:
Budget deficit : This is when government total proposed expenditure for a period is more than the total estimated revenue. When this happens, government get the money to finance the deficit in the budget from the central bank or ask the central bank to print more currency or get aid and grant from foreign aid donors to finance the deficit.
Loan fund to the banking system: This is a function of central bank when they act as lenders of last resort to the commercial bank. If people begins to withdraw their money from commercial banks, the banks may be placed in such a position that they will not have enough cash to pay their customers. They will run to the central bank to borrow money or to rediscount bills and the central bank must not refuse to come to the aid of commercial banks in order to prevent banking crisis which may shake a country's economy.
Sells newly issued government bond : This is when central bank wants to reduce the volume of money in circulation, the central bank sells bond or securities in the open market .people buy with cheque drawn on their deposits in the commercial banks. The central bank then presents the cheque to the commercial bank and draw on their cash reserves by this the cash reserve of commercial banks is reduced and reduce the supply of money in the economy.
Create money out of thin air: This is the central bank function of issuing notes, it is the legal authority to issue notes. When new notes are to be put into circulation, this is done by the central bank .but the new notes are set into circulation through the commercial banks.
Control the money supply : This is the function of central bank to regulate the volume of money in circulation or to mop up excess liquidity in the economy by selling treasury bill through the open market to the members of the public .It collect money from the commercial banks this will reduce the cash reserves of commercial banks and reduce their loan given capacity.
Government bonds, the money supply : The central bank is the legal authority to sell government bonds in order to mop up the excess liquidity in the economy. When their is too much money in circulation, the central bank make use of monetary policy instruments such as the open market operation to reduce the supply of money in circulation.
