Actual Profit (P) is equal to Actual Sales (S) minus Total
Expenses (E). Given that the Margin of Safety percentage (M) of Total Sales is 25%,
we can establish an equation relating the Total Sales, Break-even point and M.
It would be S - $300,000 = 0.25S, since Margin of Safety is equal to Total
Sales minus Break-even point. Solving for S would result to $400,000. Given
that E is equal to 45% of S, E would then be equal to $180,000. Solving for P,
P = $400,000 - $180,000. Therefore, P is equal to $220,000.
Answer:
The ending retained earning would be $2,400
Explanation:
For computing the ending retained earnings balance, we have to use the formula which is shown below:
Even in the question, the formula is given so we use it
Ending retained earnings = Beginning retained earnings + net income - dividend
Ending retained earnings = 0 + $6,000 - $3,600
In the question, the beginning retained earnings balance is not given so we assume zero balance
So, the ending retained earnings would be $2,400
Answer:
Green book.
Explanation:
The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
The following are functions of the Federal Reserve;
1. Maintaining federal government checking accounts and gold.
2. Maintaining and circulating currency.
3. Being the lender of last resort for banks.
The Federal Reserve System comprises of twelve (12) Federal Reserve Bank regionally across the United States of America and seven (7) board of governors.
A green book can be defined as a book used by the Federal Reserve Board of Governors to project economic indices and factors with respect to the economy of the United States of America. The Federal Reserve Board of Governors produces it before each meeting organized by the Federal Open Market Committee (FOMC).
Hence, the national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the green book.
Answer:
The GDP in this economy is $6,230 billion.
Explanation:
The GDP can be calculated using the following formula:
Y = C + I + G + (X - M) ....................................... (1)
Where:
Y = GDP of the economy
C = Personal Consumption Expenditures = $4,500
I = Gross Private Domestic Investment = $800
G = Government Purchases = $950
X = Exports = $65
M = Imports = $85
Substituting the values into equation (1), we have:
Y = $4,500 + $800 + $950 + ($65 - $85)
Y = $6,250 - $20
Y = $6,230
Since the figures are in billions of dollars, the GDP in this economy is therefore $6,230 billion.
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