The fundamental differences between static and flexible budgets<span> are that a </span>static budget<span> does not change as volume changes whereas a </span>flexible budget changes line values to reflect the level of activity.<span> In a </span>flexible budget<span> the percentage remains the same while the values change to reflect changes in output.</span>
Answer:
The total amount of account receivable it's $246.400
Explanation:
At the beginning the company had $270.000 in the account receivable and $38.600 of allowance for bad debt, when the company wrote off bad debt, it entry a credit in the Account Receivable and a Debit in hte Allowance for bad debt.
The new balance are $244.400 in the accounts receivables and $12.600 as credit in the allowance for bad debt, with the new sales the company generate an extra account receivable of $15.000, so the net value of Accounts Receivable it's $246.400.
Answer:
$24,220
Explanation:
After tax cashflow formula as follows;
AT cashflow = Income before taxes(1- tax) + annual depreciation amount
Depreciation amount is added back because even though it is an expense deducted to arrive at the income before tax, it is not an actual cash outflow.
Annual depreciation amount = $200,000/ 20 = $10,000
AT cashflow = 18,000*(1-0.21) + 10,000
= 14,220 + 10,000
= 24,220
Therefore, Mariposa’s expected cash flow after taxes per year is $24,220
Answer:
b. there are no gains from specialization and trade between the two countries.
Explanation:
If the two countries are producing goods with the same opportunity cost, then there is no need or advantage gained from the trade of goods between these two countries.
Usually, countries trade with each other if one has a comparative advantage of producing one good over the other trading country. Then in this case is can specialize in making that good and trade the excess to the other country.
However, in the case when two countries are producing apples and oranges. And opportunity cost producing orange for country 1 is one apple and same for country 2
Opportunity cost for Country 1 : 1 Apple = 1 Orange
Opportunity cost for Country 2 : 1 Apple = 1 Orange
Then countries will gain no additional benefit from specializing in one good.
Answer:
Double coincidence of wants
Explanation:
In a barter system, there has to be double coincidence of wants. This means that both parties to a trade who have something the other party wishes.
For example, if I have fish and I want cereals which i don't have. you want fish but you don't have it but you have cereals. I could give you my fish and you can give me your cereals
