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3 years ago

A negative balance in the current account means that

1 answer:

6 0

Answer: There are two categories in the BOP: the current account (CA) and the capital and financial account (CFA). If a transaction creates a liability, like selling a bond to another country, that gets counted in the capital and financial account. But if a transaction doesn’t create a liability (like the fancy red cars), the transaction gets counted in the current account.

Anything that occurs in one account is offset by the opposite happening in the other account. For example, if the current account increases by \$100$100dollar sign, 100, the capital and financial account must decrease by \$100$100dollar sign, 100. The fact that an entry in the current account is offset by an entry in the capital and financial account creates the mathematical identity:

Explanation:

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Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.65 at the end of the year. Its div

Anastaziya [24]

Answer:

14.90%

Explanation:

We know,

Current stock price, $P_{0}$ = $\frac{D_{1}}{r_{s} - g}$

Given,

Current stock price, $P_{0}$ = $12.00

growth rate, g = 9.50% = 0.095

Expected annual dividend, $D_{1}$ = $0.65

We have to determine the expected rate of return ( $r_{s}$ ).

Putting the values into the above formula, we can get,

Current stock price, $P_{0}$ = $\frac{D_{1}}{r_{s} - g}$

or, $12.00 = $0.65 ÷ ( $r_{s}$ - 0.095)

or, $12.00 × ( $r_{s}$ - 0.095) = $0.65

or, $r_{s}$ - 0.095 = $0.65 ÷ $12.00

or, $r_{s}$ - 0.095 = 0.0542

or, $r_{s}$ = 0.054 + 0.095

Therefore, $r_{s}$ = 0.149

The expected rate of return = 0.149 or 14.90%

7 0

3 years ago

Coverall, Inc., an insurance company, recently moved into the motorcycle insurance market. Coverall was concerned that the most

Naily [24]

Answer:

It is a result of adverse selection

Explanation:

The economic problem in this story is adverse selection. As in this the person who take the insurance drive uselessly and carelessly . In Coverall, Inc., an insurance company's case insurance company increases premium amount in order to cover this type of customer. It is a result of adverse selection.

4 0

4 years ago

Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Ja

GenaCL600 [577]

Answer:

Results are below.

Explanation:

Giving the following information:

Miles Driven Total Cost

January 10,000 $17,000

February 8,000 13,500

March 9,000 14,400

April 7,000 12,500

<u>To calculate the variable cost per unit and the total fixed cost, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)

Variable cost per unit= $1.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 17,000 - (1.5*10,000)

Fixed costs= $2,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 12,500 - (1.5*7,000)

Fixed costs= $2,000

3 0

3 years ago

Carr Corporation has provided the following information for its most recent month of operation: sales $8,200; beginning inventor

Novay_Z [31]

Answer:

$3,900

Explanation:

The computation of the inventory purchase is shown below:

As we know that

Sales - gross profit = Cost of goods sold

$8,200 - $5,300 = Cost of goods sold

So, the cost of goods sold is $2,900

Now the cost of goods sold is

Cost of goods sold = Opening stock + purchase made - ending stock

$2,900 = $1,100 + purchase made - $2,100

$2,900 = -$1,000 + purchase made

So, the purchase made is

= $2,900 + $1,000

= $3,900

8 0

3 years ago

Crane Company has outstanding accounts receivable totaling $6.40 million as of December 31 and sales on credit during the year o

atroni [7]

Answer:

$320,000 or $0.32 million

Explanation:

In accounting, the percentage of bad debt expenses is applied to the outstanding accounts receivable at the end of a particular accounting period.

In the question, the end of the accounting period is given as December 31 and the outstanding accounts receivable as at that December 31 is a total of $6.40 million. Therefore, we will disregard other values and simply apply 5% to the the outstanding accounts receivable of $6.40 million as at that December 31 as follows:

Bad debt = Outstanding accounts receivable × 5%

= $6.40 million × 5%

= $6,400,000 × 5%

= $320,000

Therefore, the amount of bad debt expense to recognized for the year is $320,000 or $0.32 million.

5 0

3 years ago