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3 years ago

If the consumption function is defined as C = 5,500 + 0.9Y, what is the

Business

1 answer:

Nimfa-mama [501]3 years ago

8 0

Answer:

Option B ($5,500) is the appropriate choice.

Explanation:

The given expression is:

⇒ $C = 5,500 + 0.9Y$

At the zero (0) level of income, the consumption would be the Autonomous consumption.

then,

Y = 0

On substituting the value of "Y" in the given expression, we get

⇒ $C=5,500+0.9(0)$

⇒ $=5,500+0$

⇒ $=5,500$ (%)

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Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 15,000 parts in stock

Kryger [21]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Beginning inventory (parts)= 15,000 parts

Sales June= 13,600

Sales July= 10,500

Sales August= 12,700

Parts are purchased at a wholesale price of $30.

Purchasing arrangement:

60 percent on the month of the purchase.

40 percent in the following month.

Lakeside purchased 14,000 parts in May.

A) To calculate the purchase for June and July, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

June= 13,600 - 15,000= -1,400

July= 10,500 - 1,400= 9,100

B) Cash Required:

Purchase from the month

Purchase from the month before

Purchase from the month= 0

Purchase from the month before= (14,000*30)*0.4= 168,000

Purchase from the month= (9,100*30)*0.6= 163,800

Purchase from the month before= 0

3 0

3 years ago

Why is the savings account better than a checking’s account for saving money?

Lisa [10]

Because it pays a higher rate of interest.

A savings account is better than a checking account for saving money because they normally pay a higher interest rate than a checking account. Quite often, a checking account will not pay any interest at all.

7 0

3 years ago

Given the following information, calculate the savings ratio:

inessss [21]

Answer:

$21.71%

Explanation:

Given that

Monthly saving = $760

Gross income = $3500

The computation of the savings ratio is shown below:-

Savings Ratio = (Monthly savings ÷ Gross Income) × 100

= ($760 ÷ $3,500) × 100

= $0.21 × 100

= $21.71%

Therefore for computing the saving ratio we simply divide gross profit by monthly saving and after a result we multiply by 100.

3 0

3 years ago

A scope limitation sufficient to preclude an unqualified opinion always will result when management:__________

vovikov84 [41]

Answer:

The answer is D.

Explanation:

A scope limitation in audit means circumstances hindering an auditor from carrying out his duties according to the audit procedure. A scope limitation can make an auditor issue a qualified opinion or a disclaimer of opinion depending on the materiality of the issue.

Back to the question, a scope limitation sufficient to preclude an unqualified opinion always will result when management refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with General Accepted Accounting Principle (GAAP)

4 0

2 years ago

At the beginning of fiscal 2017, Wooster Company acquired a small savings and loan association for $102 million. The book value

bija089 [108]

Answer:

C. $17.25 million

Explanation:

In case of an acquisition, the assets are valued at their fair value and we will also include all unrecorded liabilities. Goodwill will be the excess payment over the net assets of the company. Excess fair value of land means that assets would increase by that amount to arrive at their fair value. Also, We have to include unrecorded liabilities in the total liabilities

Net Assets = Fair value of assets - Total liabilities

Or, Net Assets = (Book value of assets + Excess Fair value of land) - (Book value of liabilities + unrecorded liabilities)

Or, Net Assets = ($261 million + $3 million) - ($172.50 million + $6.75 million) = $84.75 million

Amount paid to acquire = $102 million

Goodwill = $102 million - $84.75 million = $17.25 million

4 0

3 years ago