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3 years ago

Which of the followinThe IS-LM can be viewed as a special case of the AS-AD model where:

Business

1 answer:

CaHeK987 [17]3 years ago

7 0

Answer:

Short run aggregate supply curve is flat ( A )

Explanation:

The special case of the AS-AD following the IS-LM is that the short run aggregate supply curve is flat

This is because in an AS-AD model the price level is constant and AD represents an equilibrium point along IS-LM model, hence the price been constant, shows that in short run aggregate supply curve will be flat.

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Dream, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equity

Deffense [45]

Answer:

$650,000

Explanation:

For computing the decrease in the expected bankruptcy costs, first we have to determine the total firm value in each case which is shown below:

Total firm value = Equity + Debt × corporate tax rate

= $17,850,000 + $6,000,000 × 0.35

= $17,850,000 + $2,100,000

= $19,950,000

Now the total firm value based on market share

= Equity + Debt

= 350,000 shares × $38 + $6,000,000

= $13,300,000 + $6,000,000

= $19,300,000

The difference would be

= $19,950,000 million - $19,300,000

= $650,000

5 0

3 years ago

Charlotte is trying to measure her salon's productivity during the first quarter. For this period, she should divide ________ by

IRISSAK [1]

Answer:

the total salon services and products sold

Explanation:

Productivity can be regarded as ratio of output volume to that of the volume of inputs. It give the measurements of

production inputs efficiency, these input could be labour, capital. Productivity helps to know how these inputs are been used in production of given level of output in economy.

7 0

2 years ago

Camille's Café is considering a project that will not produce any sales but will decrease cash expenses by $12,000. If the proje

Nadya [2.5K]

Answer:

Answer is $10,500.

Refer below.

Explanation:

Camille's Café is considering a project that will not produce any sales but will decrease cash expenses by $12,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. The amount of the operating cash flow using the top-down approach is:

$10,500

3 0

3 years ago

Exercise 2-10 Applying Overhead Cost to a Job [LO2-2] Sigma Corporation applies overhead cost to jobs on the basis of direct lab

OlgaM077 [116]

Answer:

See explanations below.

Explanation:

1. Yes. Overhead should be applied to job W at year-end. Overhead is applied to every jobs whether or not they are completed at year end.

b. To calculate the amount of overhead to be applied to job W, we need to calculate first the overhead application rate based on direct labor cost through job V.

Direct labor cost. $8,000

Overhead applied $6,000

Overhead rate = [ Overhead applied / Direct labor cost ] × 100

= [6,000/8,000] × 100

= 75%

Overhead to be applied to job W

Direct labor cost $4,000

Overhead rate 75%

Overhead to be applied = $3,000

It therefore means that $3,000 should be applied to job W.

2. Because job W was not completed at the year end, it would then be included in the work in process inventory in the financial statements of Sigma Corporation at year end.

6 0

3 years ago

The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of:_____

OlgaM077 [116]

The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality. In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.

According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.

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3 0

1 year ago