With fixed incomes, because they will find that the money that they have, when inflation occurs, won't be as worth as much before. The people with rising incomes will rise along with the inflation rates, so they will not feel the effect.
To answer this item, we assume that the interest rate is simple, such that the yearly rate was only divided by 12 months in order to determine the rate per month. Hence, to answer this item, we simply have to multiply the given percent by 12.
rate of interest/year = (12)(0.85%) = 10.2%
Therefore, the answer is 10.2%.
Answer:
Effect of Transaction on Cash Flows
Effects Amount
1. Cash Payment $239,000
2. Cash Receipt $252,000 (12000*$21)
3. Cash Receipt $91,400
4. Cash Payment $491,000
5. Cash Payment $86,000
6. Cash Receipt $188,100 (190,000*0.99)
7. Cash Payment $353,400 (6,200*$57)
8. Cash Payment $36,100 [1.90*(23,000-4,000)]
Answer:
$208
Explanation:
Using the FIFO Inventory method, inventory items are assumed to be sold in the order in which they were purchased from the earliest to the latest.
The order of purchase of the inventory items are.
Jun. 1, DVD Player 1012, $113
Nov. 1, DVD Player 1045, $95
Nov. 31, DVD Player 1056, $88
Therefore, if two of the three items are sold, the cost of goods sold is the cost of the first two items purchased
= 113 + 95 = $208.
