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3 years ago

In the Romer model, the inputs to production are:

Business

1 answer:

frosja888 [35]3 years ago

6 0

Answer:

c. labor and ideas.

Explanation:

The Romer model is a type of economical model that breaks down the world into objects and ideas such as capital, labor

In the Romer model, the inputs to production are labor and ideas.

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A company uses a perpetual inventory system. The company began its fiscal year with inventory of $998,000. Purchases of merchand

Kitty [74]

Answer:

Date Account Titles and Explanation Debit Credit

Inventory $3,124,089

Account payable $3,124,089

(To record purchase of merchandise inventory)

Account receivables $6,909,879

Sales revenues $6,909,879

(To record sales on account)

Cost of goods sold $3,456,980

Inventory $3,456,980

(To record the cost of sales)

7 0

3 years ago

Life, Inc. experienced the following events in Year 1, its first year of operation: Performed counseling services for $31,600 ca

nikitadnepr [17]

Answer:

The accounting equation states that "Assets=Capital Liabilities"

As a result, the equation here gives $11250 on both sides of the question.

The profit or loss statement gives net income of $11250 as well ,while the balance sheet has $11250 total as assets, the same as equity plus liabilities.

Finally,the statement of cash flow showed increase in cash and cash equivalent in the year as $9400.

The rent expense applicable to year 2 is the balance of prepaid rent which currently stood at $1850

Explanation:

Please find attached spreadsheet showing details regarding all the financial statements prepared in respect of Life Inc.

Download xlsx

7 0

3 years ago

Why is it a problem if the country produces 2 million cars and 75 million tons of iron ores one year

TiliK225 [7]

Lots of exports but low products being produced. 2 million cars is extremely small number for cars it is unbalanced and must rely heavily on those car imports

8 0

4 years ago

Suppose a bond with a 10% coupon rate and annual coupons, has a face value of $1,000, 5 years to maturity and is selling for $1,

Taya2010 [7]

<u>Solution and Explanation:</u>

1. the Yield to maturity

FV = 1,000

PMT = FV multiply with Coupon rate , PMT = 1,000 multiply with 0.1 = 100

N = 5 , PV = -1,197.93

CPT I/Y

I/Y = 5.380166647

Therefore, the Yield to maturity = 5.380166647%

Where: FV – fair value, PV – Present value

2. Current yield = Coupon payment divided by Price

Current yield = 100 divided by 1,197.93

By solving we get,

Current yield = 0.08347733173

Therefore, the Current yield = 8.347733173%

7 0

3 years ago

Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts

Tanya [424]

Answer:

A. Term Value

Horizon Value $18.69

Current Intrinsic value $13.61

B. Dividend yield 0%

Capital gains yield 11.20%

Explanation:

A. Calculation to determine Horizon Value

Using this formula

Horizon Value = Dividend in Year 6/(Required Return – Growth Rate)

Let plug in the formula

Horizon Value = 1.25(1.0650)^2 (1.0336)/(11.20%-3.36%)

Horizon Value = $18.69

Calculation to determine the Current Intrinsic value Using this formula

Current intrinsic value = 1.25/(1.1120)^3 + 1.25(1.0650)/(1.1120)^4 + 1.25(1.0650)^2/(1.1120)^5 + 18.69/(1.1120)^5

Current intrinsic value = $13.61

B. Calculation to determine Dividend yield

Using this formula

Dividend yield = Expected Dividend next year/Current price

Let plug in the formula

Dividend yield= 0/13.61

Dividend yield= 0%

Calculation to determine Expected Capital Gains Yield using this formula

Expected Capital Gains Yield = Required return - Expected Current Dividend Yield

Let plug in the formula

Expected Capital Gains Yield= 11.20%- 0%

Expected Capital Gains Yield= 11.20%

Therefore:

Term Value

Horizon Value $18.69

Current Intrinsic value $13.61

Therefore Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is 0% and Goodwin's capital gains yield is 11.20%

3 0

3 years ago