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PtichkaEL [24]
3 years ago
5

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected

as the base year. In 2002, the basket's cost was $600; in 2004, the basket's cost was $650; and in 2006, the basket's cost was $700. The value of the CPI in 2004 was:___________
a. 92.3.
b. 106.3.
c. 108.3.
d. 152.0.
e. more than 155.0.
Business
1 answer:
olchik [2.2K]3 years ago
5 0

Answer:

c. 108.3

Explanation:

Calculation to determine what The value of the CPI in 2004 was:

Using this formula

Consumer Price Index (CPI) 2004 = (2004 Basket cost / Base year basket cost) x 100

Let plug in the formula

Consumer Price Index (CPI) 2004 = (650 / 600) x 100

Consumer Price Index (CPI) 2004 = 108.3

Therefore The value of the CPI in 2004 was:108.3

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Choose and describe a business that you would expect to have highly liquid assets and share a photo of that business (or company
Slav-nsk [51]

Answer:

I have chosen Apple Inc.

Explanation:

Apple Inc is a tech giant and manufactures innovative and most differentiated telecommunication products, music products, computer products, application services, etc which is highly valued among its customers. That's the reason why Apple is one of the most highly valued company in the world with almost $137 billion cash balance. This cash balance has been increased by $20 billion in the last three years which shows its higher profitability and that its inventory is highly liquid asset because it is quickly converted into cash. Furthermore, the greater demand of product and customer loyalty has strengthen its position all because of unmatched innovation introduced in each of its product every year. The greater cash balance shows that the company has greater sales and has higher profit margin on its unmatched product.

The picture of Apple headquarter and of its logo are given below:

6 0
3 years ago
Serotta Corporation is planning to issue bonds with a face value of $450,000 and a coupon rate of 16 percent. The bonds mature i
Brrunno [24]

Answer:

1. Dr Cash 481,588.61

    Cr Bonds payable 450,000

    Cr Premium on bonds payable 31,588.61

2. March 31

Dr Interest expense 14,447.66

Dr Premium on bonds payable 3,552.34

    Cr Cash 18,000

June 30

Dr Interest expense 14,341.09

Dr Premium on bonds payable 3,658.91

    Cr Cash 18,000

September 30

Dr Interest expense 14,231.32

Dr Premium on bonds payable 3,768.68

    Cr Cash 18,000

December 31

Dr Interest expense 14,118.26

Dr Premium on bonds payable 3,881.74

    Cr Cash 18,000

3. carrying value = $466,726.94

Explanation:

face value = $450,000

maturity = 2 years x 4 = 8 periods

coupon rate = 16% / 4 = 4%

coupon = $18,000

YTM = 12% / 4 = 3%

using a financial calculator, the PV of the bonds = $481,588.61

amortization first coupon = ($481,588.61 x 3%) - $18,000 = $3,552.34

Dr Interest expense 14,447.66

Dr Premium on bonds payable 3,552.34

    Cr Cash 18,000

   

amortization second coupon = ($478,036.27 x 3%) - $18,000 = $3,658.91

Dr Interest expense 14,341.09

Dr Premium on bonds payable 3,658.91

    Cr Cash 18,000

amortization third coupon = ($474,377.36 x 3%) - $18,000 = $3,768.68

Dr Interest expense 14,231.32

Dr Premium on bonds payable 3,768.68

    Cr Cash 18,000

amortization fourth coupon = ($470,608.68 x 3%) - $18,000 = $3,881.74

Dr Interest expense 14,118.26

Dr Premium on bonds payable 3,881.74

    Cr Cash 18,000

5 0
3 years ago
PB4.
EleoNora [17]

Answer:

Explanation:

Cost of advertising the product  - Selling & Administrative Cost

Fabric used to make the umbrellas  -Direct Materials Cost

Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame  -Manufacturing overhead Cost

Wages of workers who assemble the product  - Direct labour Cost

President's salary  - Selling & Administrative Cost

The salary of the supervisor of the people who assemble the product  - Selling & Administrative Cost

Wages of the product tester who stands in a shower to make sure the umbrellas do not leak  - Direct labour Cost

Cost of market research survey  - Selling & Administrative Cost

Salary of the company's sales managers  - Selling & Administrative Cost

Depreciation of administrative office building - Selling & Administrative Cost

4 0
3 years ago
Doug is filing singly. his net taxable income is $80,575. every week, $304 is withheld from his earnings for income tax. based o
mariarad [96]

Basing it on the information given, he will owe an additional $731.

<span>Since your taxable income has been identified, you just look up your income, find the column with your filing status, and then find the amount of tax you owe.</span>

6 0
3 years ago
Read 2 more answers
Darian expects to get 7,500 in grants each year. What is the minimum amount he should expect to contribute for four years at the
Mamont248 [21]
The answer is B. $91,500.
8 0
3 years ago
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