For the answer to the question above, i<span>n macroeconomics, the guns versus butter model is a simple example of the production possibility frontier. It models the relationship between a nation's investment in defense and civilian goods.
I hope my answer helped you.</span>
Answer:
Real wage rate can be calculated by:
= Nominal wage rate /CPI * 100
2018 real wage rate:
= 7 / 252 * 100
= $2.78
2019 real wage rate:
= 10 / 257 * 100
= $3.89
Did these workers really get a pay raise between 2018 and 2019?
YES THEY DID:
= 2019 real wage - 2018 wage rate
= 3.89 - 2.78
= $1.11
<span>A command or planned economy occurs when the government controls all major aspects of the economy and economic production. In a command economy, it is the government that decides what to produce, how to produce goods and how to distribute goods and services within the economy</span>
Answer:
$328000
Explanation:
Given: Cost of machine= $880000
Residual value= 60000
Estimated life= 10 years
Company use straight line depreciation method.
∴ Depreciation = 
⇒ Depreciation= 
∴ Depreciation= 
per year.
Now, lets find the value of depreciation.
∵ Machine is sold on December 31, 2019, which is 6 years after it is installed.
∴ Depreciation value after 6 years= 
Depreciation value after 6 years= 
Next, finding the value of machine after 6 years of depreciation.
Value of machine after 6 years= 
∴ Disposal value of machine after 6 years of usage is 
, however, machine was sold at $225000.
Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
<u>Recommendation</u>
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
