Answer:
$0
Explanation:
Based on the information given what the STOCKHOLDERS RECEIVE if they currently have 2million shares with a par value of $1 each will be $0 reason been that the Stockholder claims have the LOWEST PRIORITY in a bankruptcy based on the fact that the debts amount has exceeded the firm's value which means that there is $0 amount left for current shareholders.
Answer:
The correct answer is D
Explanation:
The formula to compute the EBIT (Earnings before Interest and Tax) is as:
EBIT (Earnings before Interest and Tax) = Revenue - Provision for income tax - amortization and depreciation - Interest expense - income from continuing operation
where
Revenue is $2,462
Depreciation and amortization is $216
Provision for income tax is $40
Income from continuing operation is $53
Interest expense is $230
Putting the values above:
EBIT = $2,462 - $216 - $230 - $53 - $40
EBIT = $1,923
Answer:
A) Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small.
Explanation:
First of all, the larger amount of money would increase the inflation rate since aggregate supply hasn't increased. The number of goods and services offered do not vary, then only thing that varies is the amount of disposable money.
The larger the multiplier, the larger the positive effect. The multiplier formula = 1 / MPS (marginal propensity to save). Even though inflation increases, still the economy is going to grow. That unless the local residents decide to purchase many imported goods. The larger the amount of imported goods purchased, the lower the positive effects.
This type of policy can be very effective under conditions where deflation or inflation rates are near 0 or even negative. Although high inflation is very bad for the economy, a small amount of inflation is always needed to boost economic growth. The healthy inflation is around 1.5 - 2% per year. This way salaries and wages can grow, pushing aggregate demand and supply.
Answer:
When the U.S. economy goes into a recession,
D. Mexico's exports to the United States decrease, Mexico's aggregate demand decreases, and Mexico's AD curve shifts leftward
When Mexico decreases the quantity of money, Mexico's aggregate demand
B. decreases and its AD curve shifts leftward
When the price level in Mexico falls,
D. the quantity of real GDP demanded in Mexico increases
Explanation:
Reasoning:
If US goes into a recession their GDP decreases thus, the quantity they import from mexico also decreases.
This makes the AD curve in Mexico to decrease as well as exports are a variable in the AD curve
If money supply decreases the AD demand which can also be determinate as money supply times velocity will decrease
If price level decrease the real GDP demanded in mexico increases as it is cheaper for US to import thus export in mexico increases.
Answer:
a write-off using the allowance method will not change the net receivables.
Explanation:
accounts receivable 2,500
Allowance for Uncollectible Accounts (500)
net receivable 2,000
a write-off using the allowance method will not change the net receivables.
after the write-off both, Ar and the allowance decrease by 80
<u>so the net receivable keeps at the same value</u>
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accounts receivable 2,420
Allowance for Uncollectible Accounts (420)
net receivable 2,000