Answer:
a) real GDP =$20,000,000
b)velocity of money is 2.50
Explanation:
Nominal GDP is normal spending carried out in terms of dollars.
Nominal GDP is the product of real GDP and price level
Nominal GDP= real GDP*Price level
Given the nominal GDP=$25 million and the price level =1.25 then,
$25000000=real GDP *1.25
$25000000/1.25 = real GDP
$20000000= real GDP
Apply the quantity equation in economics which is;
money supply*velocity of money =price level * real GDP
Given the money supply is=$10,000,000 then,
velocity of money = (price level*real GDP)/money supply
velocity of money = (1.25*20,000,000)/10,000,000
velocity of money =2.50
Answer:
c. $146,400 and 206,560.
Explanation:
Monthly Purchases are as follows;
April =$156,800
May= $195,200
June= $217,600
Since Admin expenses are paid every month,
April =$28,800
May = $28,800
June =$28,800
75% of April purchases will be paid in April . Use these to calculate the payments;
Pmts
April = 75%* $156,800 = $117,600
add Admin expenses to find total cash payments;
APRIL = $117,600+ $28,800 = $146,400
In May,20% of April purchases will be paid , 75% of May purchases will also be paid plus admin expenses. Use these to calculate the payments;
May= (20%* $156,800) + (75% * $195,200) + $28,800
MAY = 31360 +146400 +28800 = $206,560
Answer:
C. Depreciation is a current expense of a cash outflow in the current period.
FALSE depreciation is a deferral expense it do not related t oa cash flow
Explanation:
A. The income statement is put together at a specific point in time (end of a business quarter, or business year) and so the sale could be in one period and the cash received in another period.
CORRECT income statement end at a certain date and include transaction under accrual accounting which doesn't relate to cash disbursements or collection
B. The income statement contains the set of expenses associated with the products or services sold during the current operating period, with those expenses not associated with current cash flow labeled as nonminuscash expense items
CORRECT It works with accrual accounting
D. Companies depreciate fixed assets (such as office furniture, equipment, machinery, and buildings) over an assigned time period, but the initial cash outlay for the fixed asset typically occurs at the time the asset is acquired by the firm.
CORRECT the cash disbursements occurs at time zero. Then, the accounting distributes this over several period to decrease the impact in the first period
The answer is Regular and Moderate to High Physical Activity
While generally accepted as good for health, medical professionals have conducted extensive research and recommended that the best way to promote health is to regularly exercising, especially at a moderate and high level physical activity.
This means, simple walking is not going to be enough.
We need to exert our bodies to some extent regular to optimal fitness.
Regular exercise is said to reduce to risk of diabetes, heart problems, various types of cancers etc.
The income elasticity of demand for pasta is -0.4 based on the data from the question above. The answer to this problem can be solved using the elasticity formula which stated as ED = Q percent change / I percentage change where ED is the elasticity of demand, Q is the quantity of the product, and I is the consumer's income<span>. (Calculation: -4%/10%=-0.4)</span>
