All categories

3 years ago

7. How micro and macro economics are interdependentto each other?

Business

1 answer:

fiasKO [112]3 years ago

6 0

Explanation:

Actually micro and macroeconomics are interdependent. The theories regarding the behaviour of some macroeconomic aggregates (but not all) are derived from theories of individual behaviour. ... Similarly, the theory of aggregate consumption function is based upon the behaviour patterns of individual consumers.

You might be interested in

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

AVprozaik [17]

Answer:

a. What is the after-tax cost if she pays the $20,000 bill in December?

= $20,000 x (1 - 32%) = $13,600

b. What is the after-tax cost if she pays the $20,000 bill in January?

total after tax cost (including investment revenue):

= $20,000 x (1 - 35%) = $13,000

= -$20,000 x 12% x 1/12 x (1 - 35%) = -$130

= $12,870

c. Should Reese pay the $20,000 bill in December or January?

January, since the after tax cost is lower

d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January?

= $20,000 x (1 - 24%) = $15,200

= -$20,000 x 12% x 1/12 x (1 - 24%) = -$152

= $15,048

e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?

December, since the after tax cost is lower

5 0

3 years ago

Your boss leaves you a note, asking you to determine the present value of a $1,200,000 payment to be made in six years assuming

shtirl [24]

Answer:

so value of the mistake is $311685.71

Explanation:

given data

present value = $1,200,000

time = 6 year

discount rate = 18%

discount rate = 8%

to find out

What is the dollar value of the mistake

solution

we get here present value that is express as for both rate that is

present value = $\frac{FV}{(1+r)^t}$

put here value

present value = $\frac{1200000}{(1+0.18)^6}$

present value 1 = $444517.85

and

present value = $\frac{1200000}{(1+0.08)^6}$

present value 2 = $756203.55

difference is $756203.55 - $444517.85

difference is = $311685.71

so value of the mistake is $311685.71

7 0

3 years ago

Cooke Company incurs $4 per unit of variable selling and administrative expense and $50,000 per month in fixed selling and admin

Lynna [10]

Answer:

Selling and administrative expense = $242000

so correct option is c. $242,000

Explanation:

given data

variable selling and administrative expense = $4 per unit

fixed selling and administrative expense = $50,000 per month

depreciation = $12,000

Cooke produced = 50,000 units

sold = 48,000 units

to find out

What amount would Cooke include for selling and administrative expense

solution

we get here variable selling and administrative expense will be here as

Variable selling and administrative expense = variable selling and administrative expense × sold ...................1

put here value we get

Variable selling and administrative expense = $48000 × $4

Variable selling and administrative expense = $192000

and Fixed selling and administrative expense is = 50000

Selling and administrative expense income statement is

Selling and administrative expense = $192000 + $50000

Selling and administrative expense = $242000

so correct option is c. $242,000

8 0

3 years ago

Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year. $1,0

Oksi-84 [34.3K]

Answer:

FCFF = $335.50

Explanation:

Formula of Free Cash Flow to the firm ( FCFF) :

FCFF= Net Income+ Interest(1- tax rate)+ Depreciation+ working capital changes- capital investment

Now let us note some critical points and assumptions which are necessary to solve the question.

As the question says that the company will maintain its existing after tax return on capital invested next year, hence that means that the net income for the next year remains the same, which is $140.

It is also that the company expects it's Operating Income(EBIT) to increase by 6% every year, hence it's operating income(EBIT) for the next year will be $250*(1.06)= $265

Tax rate remains the same, that is, (60/200*100)= 30%

As there is no details with respect to working capital changes and any capital investment made, hence it is assumed to zero changes and no additional investment.

It is assumed that the depreciation method being followed is straight line method, hence depreciation value next year would be the same, that is, 150

Now let's finalise our income statement:

EBIT = $265 given in the question

Interest = ( $65) backward calculation

Taxable Income = $200

Taxes (30%) = ($60)

Net income = $140 given in question.

Hence our FCFF will be :

$ 140 + $65*(1-0.30) + $150 = $335.50

8 0

3 years ago

Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $

nikitadnepr [17]

Answer: Sell before assembly, the company will be better off by $1 per unit.

Explanation:

To solve the above question, we need to calculate the incremental profit or loss first. This will be:

= After assembling sales value - Unassembled unit sales value - Coat if further processing

= $87 - $62 - $26

= -$1

Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".

7 0

3 years ago

7. How micro and macro economics are interdependentto each other?​

7. How micro and macro economics are interdependentto each other?