Free market economy is a system that is solely based on the supply and demand and that there is very little or no governmental control at all. This type of government is able to grow because of its flexibility depending on the needs of the consumers and not on the imposed law by authorities.
Answer:
B. 10%
Explanation:
Given that
Tax rate = 40%
Net tax rate = 6%
Recall that
Gross interest = Net of tax rate / ( 1 - tax rate)
Therefore,
= 0.06 ÷ ( 1 - 0.40)
= 0.06 ÷ 0.60
= 0.1
= 10%
Answer:
$15,400
Explanation:
Given
70% of sales are collected in the month of the sale, and the remainder are collected in the following month.
Considering the month of July with Accounts receivable balance (July 1, 2018) $20,000
Sales = $24,000
Cash collected = 20000 + (70% × 24000)
= 20000 + 16800
= $36,800
Account receivable balance (1 August, 2018)
= 30% × 24000
= $7,200
For the month of August
Sales = $14,000
Cash collected = 7200 + (70% × 14000)
= 7200 + 9800
= $17,000
Account receivable balance (1 September, 2018)
= 30% × 14000
= $4,200
For the month of September,
Sales = $16,000
Cash collected = 4200 + (70% × 16000)
= 4200 + 11200
= $15,400
The total cash collected from Sales which is made of 30% from the previous month's sales and 70% of September sales is $15,400
The blank should have “nonprice competition” the answer is C.
