All categories

2 years ago

During a time of inflation, what happens to the value of the dollar?

Business

1 answer:

sleet_krkn [62]2 years ago

4 0

Answer:

The impact inflation has on the time value of money is that it decreases the value of a dollar over time. ... Inflation increases the price of goods and services over time, effectively decreasing the number of goods and services you can buy with a dollar in the future as opposed to a dollar today.

Explanation:

Hope it helps! Correct me if I am wrong!

I'm sure about my answer!

If you dont mind can you please mark me as brainlest?

Its ok if you don't want to!

But hopefully it helps you!

You might be interested in

Government is typically a ________.

xxTIMURxx [149]

Answer: D. net demander of funds because it borrows more than it saves

The government incurs more debts than gain profits as shown by most financial reports. The government is viewed similarly to that of business firms being net demanders by loaning huge amounts to financial institutions indirectly. The indirect borrowing done by government is done through debt security selling.

8 0

2 years ago

At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a nine-year operating lease agre

ziro4ka [17]

Answer:

a.Lakeside's earnings will reduce by $156,000

b. Lakeside's earnings will increase by $20,000.

Explanation:

The rental fee payment per quarter =$39,000.

The rental fee payment per year = $39,000 x 4 = $156,000

In this case, none of the classification criteria of a capital lease is met. Hence, the lease will be recorded as an operating lease and all the four quarterly payments will be recorded as rent expense by LLT. This will reduce LTT's earnings by $156,000.

Lakeside will record all the payments received from LTT as rent revenue since it is an operating lease. Also, because Lakeside is the owner of the asset, she will record depreciation on the asset too.

Thus,

Increase in lakeside's earnings = Rent revenue - Depreciation expense.

Rent revenue = $156,000

Depreciation expense = $3,400,000 / 25 = $136,000

Thus,

Lakeside's earnings will increase by $20,000 (that is , $156,000 - $136,000).

4 0

2 years ago

Finch Company began its operations on March 31 of the current year. Finch Co. has the following projected costs: April May June

sergeinik [125]

Answer:

The cash payments for Finch Company in the month of June is $185,600.

Explanation:

Cash payment : Cash payment is that payment which is deals only in cash or the payment is only paid in cash.

So,

To compute the cash payment for June month, the following things is need to be considered.

1. Manufacturing cost of April and May

All other cost like - insurance cost, property tax is not need to be considered because it is not related to may month.

So,

= 3÷4 of May month + 1÷4 of April month

= 3÷4 × $195,200 + 1÷4 × $156,800

= $146,400 + $39,200

= $185,600

Hence, The cash payments for Finch Company in the month of June is $185,600.

3 0

2 years ago

Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a curren

Mazyrski [523]

Answer:

yield to maturity YTM = 35%

Explanation:

given data

purchase price = $8,000

face value = $10,000

current yield = 10%

solution

we get here yield to maturity YTM

so first we get Annual Coupon by current yield that is express as

Current yield = annual coupon ÷ current price ..............1

put here value we get

Annual Coupon = 10 % × 8,000

Annual Coupon = $800

now we get YTM by purchase price that is

purchase price = Annual Coupon ÷ ( 1+YTM ) + face value ÷ ( 1+YTM ) .......2

put here value we get

8,000 = $\frac{800}{1+YTM} +\frac{10000}{1+YTM}$

solve it we get

yield to maturity YTM = 35%

5 0

3 years ago

Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $63,000

ICE Princess25 [194]

Answer:

$235,000

Explanation:

Under the accrual accounting system, expenses are recognized in the period incurred and not necessarily in the period cash is paid.

Revenue is also recognized in the period earned and not necessarily when cash is collected.

Total revenue in 2018 = $200,000 + $150,000

= $350,000

Net income is the difference between the revenue and expense

Net income in 2018 = $350,000 - $115,000

= $235,000

8 0

3 years ago