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Paha777 [63]
2 years ago
6

A country finds itself in the following situation: a government budget surplus of $900; total domestic savings of $200, and tota

l domestic physical capital investment of $1300. According to the national saving and investment identity, if investment decreases by $300 while the government budget deficit and savings remain the same, what will happen to the current account balance?
Business
1 answer:
sweet [91]2 years ago
5 0

Answer:

The current account balance goes from a $200 deficit, to a $100 surplus.

Explanation:

There are several ways to write the national saving and investment identity. We can choose to write it in this way:

(X - M) = S + (T - G) - I

Because the equation is an identity, we know that the left side of it (X - M) will always be equal to the right side (S + (T - G) - I), on which we wil be focusing.

With the initial values provided by the question, we have the following situation:

(X - M) = $200 + $900 - $1,300

(X - M) = $1,100 - $1,300

(X - M) = -$200

Thus, we have a deficit of $200

If investment decreases by $300, while the government budget, and savings remain the same, the situation changes:

(X - M) = $200 + $900 - $1,000

(X - M) = $1,100 - $1,000

(X - M) = $100

So now we have a surplus of $100

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anygoal [31]

Answer: Option (D)

Explanation:

<em>ILO</em> is abbreviated as <em>International Labour Organization</em> is known as the UN body whose decree is to provide advancement in the social justice and thus also promote the respectable and appropriate work thereby setting and developing the international labour specifications. It is considered as the first specialised body of the United Nations.

ILO does not uses Lawsuits in order to encourage compliance with the labour standards.

8 0
2 years ago
The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2
puteri [66]

Answer:

a. Net profit margin for 2019 = 35.93%

b. Asset turnover for 2019 = 0.29 times

c. Return on assets = 10.24%

Explanation:

Note: This question is not complete. The complete question is thereore provided before answering the question as follows:

The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2019:

                                                 2019                2018

Sales revenues                     $590,000       $574,000

Net income                               212,000          184,000

Total assets                            2,142,000      1,998,000

Total stockholders’ equity        712,000        690,000

Compute the following ratios for 2019:

Net profit margin

Asset turnover

Return on assets

The answers are now explained as follows:

a. Net profit margin for 2019

This can be calculated as follows:

Net profit margin for 2019 = Net income in 2019 / Sales revenues in 2019 = $212,000 / $590,000 = 0.3593, or 35.93%

b. Asset turnover for 2019

This can be calculated as follows:

Asset turnover for 2019 = Sales revenues / Average total assets = Sales revenues in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $590,000 / (($2,142,000 + $1,998,000) / 2) = 0.29 times

c. Return on assets for 2019

This can be calculated as follows:

Return on assets = Net income / Average total assets = Net income in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $212,000 / (($2,142,000 + $1,998,000) / 2) = 0.1024, or 10.24%

4 0
3 years ago
A German toy company manufactures its products within U.S. borders. If the
shutvik [7]

Answer:

a

Explanation:

3 0
3 years ago
Read 2 more answers
Break Even Analysis 1. A USB thumb drive production line will have $240,000 fixed costs variable costs per unit of $1.97. Each u
melomori [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $240,000

Unitary variable cost= $1.97

Selling price per unit= $4.97.

First, we need to calculate the break-even point in units:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 240,000 / (4.97 - 1.97)

Break-even point in units= 80,000 units

<u>The break-even point analysis provides information regarding the number of units to be sold to cover for the fixed and variable costs.</u>

If the forecasted sales are 120,000, this means that the company will cover costs and make a profit. The margin of safety is 40,000 units.

3 0
2 years ago
Job 101 was completed and sold for $60,000. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead cos
castortr0y [4]

Answer:

Required 1

Debit : Finished Goods  $53,600

Credit : Work In Process $53,600

Required 2

Debit : Cash $60,000

Debit : Cost of Goods Sold $55,000

Credit : Sales $60,000

Credit : Finished Goods $55,000

Required 3

Debit : Overheads $4,000

Credit : Cost of Sales $4,000

Explanation :

Hi, I have attached the full question as a pdf below

<u>Manufacturing Costs Calculations :</u>

Job 101  = $19,200 + $28,800 + ($420,000/60,000 x1,000) = $55,000

Job 102  = $14,400 + $11,200 + ($420,000/60,000 x4,000) = $53,600

<u>Closing Overheads :</u>

Actual Overheads = $45,000

Applied Overheads = $420,000/60,000 x 7,000 hours = $49,000

Therefore,

Overheads are over-applied ( by $4,000) and must be deducted from cost of sales

Download pdf
7 0
3 years ago
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