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4 years ago

Essay of circular flow

1 answer:

5 0

Circular flow is a model of economy in which major exchanges are showed as flow of money, food, goods, services and etc between economic agents. In circular flow, the flows of money and goods exchanges in a closed circuit but runs oppositely. Circular flow analysis is the basis of national accounts.

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Assume that a financial asset gives its owner the following cash flows which are invested using the compound interest method: ye

VMariaS [17]

Answer:

$114,218.

Explanation:

Year 0, cash outflow = $15,041

Year 1, cash inflow = $44,780

Year 2, cash inflow = $15,784

Year 3, cash inflow = $52,390

Year 4, cash inflow = $13,458

R = 6%

Value of the asset in year 3 = -15,041*(1+6%)^3 + 44,780*(1+6%)^2 + 15,784*(1+6%) + 52,390 + 13,458/(1+6%)

Value of the asset in year 3 = -15,041*1.191016 + 44,780*1.1236 + 15,784*1.06 + 52,390 + 13,458/1.06

Value of the asset in year 3 = -17,914.07 + 50,314.81 + 16,731.04 + 52,390 + 12,696.23

Value of the asset in year 3 = $114,218.01

5 0

3 years ago

"publicity": 1. is generally less effective than advertising for promoting a really new product. 2. is mass selling that avoids

Monica [59]

Publicity is mass selling that avoids paying media costs. Publicity is attention give to something or someone from the media. The media will advertise things that are going on, positive or negative, for ratings. When they do this, they are driving attention towards a topic that wasn't asking or paying to have their information on air. Publicity serves as mass selling and advertising that is free to the person or organization gaining it.

6 0

3 years ago

Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit

Likurg_2 [28]

Answer: $ 70,500

Explanation:

Given, Number of units = 1800

Per unit selling price = $85

Total Sales price = (Number of units ) x (Per unit selling price)

= 1800 x $ 85

= $153,000

Variable cost per unit = $68

Total variable cost = 1800 x $68 = $122,400

Contribution Margin = (Sales price ) - (Variable cost)

= $ (153000-122400)

= $30,600

Fixed cost = $16,500 per month

Profit = (Contribution Margin) - (Fixed cost)

= $(30,600-16,500)

= $14,100

PV ratio = (Contribution Margin) ÷ (Total sales) x 100%

= $ (30,600÷153,000)x 100%

=20%

Margin of Safety = (profit) ÷ (PV ratio)

= ($14,100) ÷ (20%)

= ($14,100) ÷ (0.20)

= $ 70,500

Hence, the monthly margin of safety = $ 70,500

8 0

3 years ago

Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax

Ad libitum [116K]

Answer:

The Income Statement is-

Sales = $435,000

Costs = 216,000

Depreciation = 40,000

EBIT= $179,000

Interest = 21,000

EBT = $158,000

Taxes = 55,300

Net income = $102,700

I have done this question before in my "Money Management" Dual enrolled class.

4 0

4 years ago

A _________ is the distribution of cash to its owners. This is determined by the board of directors. Multiple choice question. w

Arisa [49]

Answer:

Common stock dividend

Explanation:

Owners have stock as proof of part ownership of the company. The dividend is designed to share the company's profits with it's owners. You may onmly own a trashcan, but it still earns a dividend.

8 0

3 years ago