GDP is designed to assess the production of goods in a market economy by output. However, it is not efficient in accounting for public and private services that without output that are easily countable by the number of units produced. GDP is not also well suited in measuring improvements in the diversity and quality of goods and services. It is also poor in estimating the depletion of resources. Finally, it doesn't also reflect the degradation of the environment involved in the production process.

3 0

3 years ago

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $420,000; Allowance for Doub

Fiesta28 [93]

Answer and Explanation:

The computation is shown below:

a. Amount of adjusting entry for uncollectible accounts

= Estimated balance of Allowance for Doubtful Accounts + debit balance

= $16,400 + $4,000

= $20,400

b. Adjusted balances

For account receivable

= account receivable

= $420,000

For allowance for doubtful debts

= Estimated amount

= $16,400

For bad debts

= AMount of adjusting entry

= $20,400

c. Net realizable value

= Account receivable balance - estimated balance of Allowance for Doubtful Accounts

= $420,000 - $16,400

= $403,600

8 0

3 years ago

Lee Airlines plans to issue 12-year bonds with a par value of $1,000 that will pay $70 every six months. The bonds have a market

Zielflug [23.3K]

Answer:

After tax cost of debt = 10.43%

Explanation:

Market price = 960

Flotation cost = 0.07

Market price after Flotation cost = 960*(1-0.07) = 960*0.93 = 892.8

Face value = 1,000

Interest payment (PMT) = 1000*0.07 = 70

Term of payment = 12*2 = 24

Cost of debt before tax = Rate(24, 70, -892.8, 1000, 0)*2

Cost of debt before tax = 0.080198497*2

Cost of debt before tax = 0.160396994

Cost of debt before tax = 16.04%

Tax rate = 35%

After tax cost of debt = 16.04% * (1-35%)

After tax cost of debt = 0.1604*0.65

After tax cost of debt = 0.10426

After tax cost of debt = 10.43%

6 0

3 years ago

Which of the following can have their shares trade on the stock exchange​

Which of the following can have their shares trade on the stock exchange