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Akimi4 [234]
3 years ago
11

Assume a small nation has the following statistics: its consumption expenditure is $15 million, investment is $2 million, govern

ment expenditure on goods and services is $1 million, exports of goods and services to foreigners is $1 million, and imports of goods and services from foreigners is $1.5 million. Calculate this nation's GDP
Business
1 answer:
trasher [3.6K]3 years ago
5 0

Answer:

GDP= $17,500,000

Explanation:

Giving the following information:

(C) Consumption expenditure is $15 million

(I) Investment is $2 million

(G) Government expenditure on goods and services is $1 million

(X) Exports of goods and services to foreigners is $1 million

(N) Imports of goods and services from foreigners is $1.5 million

To calculate the GDP, we need to use the following formula:

GDP= C + I + G + (X - N)

GDP= 15 + 2 + 1 + 1 - 1.5

GDP= $17,500,000

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4 0
3 years ago
Assume metro corporation had a net income of $ 2 comma 400 for the year ending december 2018. its beginning and ending total ass
dedylja [7]

We have:

Net Income = 2,400

Beginning total assets = 30,500

Ending total assets = 20,000

Return on asset is net income divided by average total assets.

Average total assets = ( beginning total assets + ending total assets)/2

         = (30500 +20000)/2

         = 25,250

Return on asset = net income/ average total assets

 = 2400 /25250

 =9.50%

Therefore, Return on asset would be 9.50%.


7 0
3 years ago
Give four items of information you would expect to find on a statement of account
spayn [35]

Answer:

An overall balance. This might be positive (if the customer owes you money), negative (if you own them money), or at 0 (if all payments have been settled).

A date range. You might create an account statement that covers a specific month, year, or quarter – or you might want to show every single transaction between you and your customer. Either way, the dates should be clear.

Every transaction made within the specified date range, including sales (paid upfront or on credit), payments, and refunds. You should list the date and value of each transaction.

Document numbers to support each transaction. This might include the numbers from invoices, credit notes, or payment receipts.

Contact details for you and your customer – including company name, address, phone number, or email address.

A currency. This is particularly important if you have customers abroad. Even if you have transactions in multiple currencies, an account statement should only be in one.

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5 0
3 years ago
Investor owns 30% of Investee and applies the equity method. In 2020, Investor sells merchandise costing $240,000 to Investee fo
Ira Lisetskai [31]

Answer:

We should eliminate 3,000 revenue for this sale as is considered intra-entity therefore, there is no gain realized.

Explanation:

The transactions intra-entity should be eliminated.

We should eliminate the revenue from the goods that are still in the inventory of the investee.

inventory sold:            300,000

remaining inventory:     50,000

remaining goods 50,000/300,000 = 1/6

Then, total revenue: 300,000 - 240,000 = 60,000

1/6 of this revenue is still in the investee 60,000 x 1/6 = 10,000

then we should eliminate the percentage of ownership we got on the investee

30% of this belong to the investor so it should be eliminated while the other 70% is kept.

10,000 x 30% = 3,000

5 0
3 years ago
Your investment club has only two stocks in its portfolio. $20,000 is invested in a stock with a beta of 0.7, and $35,000 is inv
Aleonysh [2.5K]

Answer:

Beta of the portfolio will be 1.08

Explanation:

We have given investment in stock 1 = $20000

And investment in stock 2 is = $35000

So total investment = $20000+$35000 = $55000

Weight of stock 1 =\frac{20000}{55000}=0.3636

Weight of stock 2 =\frac{35000}{55000}=0.6363

Beta of stock 1 = 0.7

Beta of stock 2 = 1.3

We have to find the portfolio's beta

Portfolio's beta will be equal to = Weight of stock 1×beta of stock 1 +Weight of stock 2×beta of stock 2 = 0.3636×0.7+0.6363×1.3 = 1.08

So beta of the portfolio will be 1.08

4 0
3 years ago
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