What are the characteristics of a mixed economy?

Other things the same, if the interest rate falls, then a. firms will want to borrow more, which increases the quantity of loana

Svet_ta [14]

Answer: (a).

Annexure: <u>Since a part of the information was found missing in the question, a similar question has been provided as an attachment for reference. </u>

If the interest rate falls with other things remaining constant, a firm would like to raise more money via debt instruments.

This will lead to an increase in the quantity of loanable funds demanded.

This would further lead to increase in the level of invested funds by the public as it would get cheaper for the corporates to avail loans.

7 0

3 years ago

recent monthly contribution format income statement: Sales$1,652,000 Variable expenses 628,880 Contribution margin 1,023,120 Fix

kati45 [8]

Answer:

Gatty Corporation

1. Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $580,000 $1,652,000

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $348,000 $1,023,120

Traceable fixed expenses $268,000 $320,000 $191,000 779,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $157,000 $(101,880)

2. Assuming these estimates are accurate and implemented, the company's net operating loss of $101,880 will decrease by $69,600 to $32,280.

Explanation:

a) Data and Calculations:

GATTY Corporation

Recent monthly contribution format income statement:

Sales $1,652,000

Variable expenses 628,880

Contribution margin 1,023,120

Fixed expenses 1,125,000

Net operating income (loss) $(101,880)

Segmented Income Statement for the most recent month

Division East Central West

Sales $422,000 $650,000 $580,000

Variable expenses as a percentage of sales 54% 26% 40%

Traceable fixed expenses $268,000 $320,000 $191,000

1. Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $580,000 $1,652,000

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $348,000 $1,023,120

Traceable fixed expenses $268,000 $320,000 $191,000 779,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $157,000 $(101,880)

Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $678,600 $1,750,600

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $446,600 $1,121,720

Traceable fixed expenses $268,000 $320,000 $220,000 808,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $226,600 $(32,280)

$(101,880)

$(32,280)

$69,600

4 0

3 years ago

Dakota Corporation decided to issue three-year bonds denominated in 5 million Russian rubles at par. The bonds have a coupon rat

sertanlavr [38]

Answer:

23.39%

Explanation:

From the given information, the amount was raised in rubies, Hence, we will convert them to dollars to be able to pay back the needed obligations.

However, according to the exchange rates, the IRR of dollar cash flow is the actual cost of financing that the company will address.

By applying the EXCEL FORMULA to compute the actual cost of financing, we get;

A B C D E

Coupon 17%

Year 0 1 2 3

Cashflow in

rubles 5,000,000 5000000*17% 5000000*17% 5000000+850

= 850000 = 850000 000

= 5850000

Exchange $0.30 $0.032 $0.034 $0.035

rate

(per rubles) 5,000,000 5,000,000 5,000,000 5,000,000

Cash flow × 0.03 × 0.032 × 0.034 × 0.035

in dollars = $150000.00 27200.00 28900.00 204750.00

IRR 23.39%

8 0

3 years ago

Morris company applies overhead based on direct labor costs. For the current year, morris company estimated total overhead costs

spin [16.1K]

Answer:

At year-end, factory overhead is $21,000

Explanation:

Predetermined overhead rate = (Estimated overhead costs/Estimated direct labor costs)

Predetermined overhead rate = ($404000 / $2020000) = 20%*Direct labor costs

Hence, Applied overhead costs= (20% * $1,810,000)

Applied overhead costs=$362000.

Hence balance in factory overhead account at year end = $383,000 - $362,000

=$21,000.

8 0

3 years ago

Identify the accounting assumption or principle that is described below. (a) Belief that a company will remain in operation for

Leviafan [203]

Answer:

(a) Belief that a company will remain in operation for the foreseeable future.

Accounting assumption or principle: Going concern assumption

(b) Indicates that personal and business record-keeping should be separately maintained.

Accounting assumption or principle: Economic entity assumption

(c) Only those items that can be expressed in money are included in the accounting records.

Accounting assumption or principle: Monetary unit assumption

(d) Separates financial information into time periods for reporting purposes.

Accounting assumption or principle: Periodicity assumption

(e) Measurement basis used when a reliable estimate of fair value is not available.

Accounting assumption or principle: Historical cost principle

(f) Dictates that companies should report all circumstances and events that make a difference to financial statement users.

Accounting assumption or principle: Full disclosure principle

4 0

3 years ago