Answer:
The Journal entries are as follows:
(i) On August 1,
Cash A/c Dr. $6,500
photography equipment A/c Dr. $33,500
To common stock $40,000
(To record the issuance of common stock for cash and photography equipment)
(ii) On August 2,
Prepaid insurance A/c Dr. $2,100
To cash $2,100
(To record the cash paid in advance for insurance)
(iii) On August 5,
Office supplies A/c Dr. $880
To cash $880
(To record the cash paid for office supplies)
(iv) On August 20,
Cash A/c Dr. $3,331
To photography fees earned $3,331
(To record the photography fees earned)
(v) On August 31,
Utilities A/c Dr. $675
To cash A/c $675
(To record the cash paid for utilities)
The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.
<h3>What is GDP?</h3>
The gross domestic product stands as a monetary measurement of the market value of all the final goods and services produced in a distinctive period by countries. Due to its complex and subjective nature, this measure exists often revised before being deemed a reliable indicator.
Gross domestic product (GDP) stands for the total monetary or market value of all the finished goods and services constructed within a country's borders in a typical period. GDP measures the worth of the final goods and services produced in the United States (without double counting the middle goods and services used up to produce them).
The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.
To learn more about GDP refers to:
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Answer:
This is an example of multiple pricing.
Explanation:
Sometimes if you add all the extra charges, like shipping and handling, you might realize that the product being offered by the infomercial is actually more expensive than similar products that you can buy on retail stores or websites.
Infomercials do this on purpose, they use low selling prices as bait, but then they charge very high fees for processing your order and shipping it.
In economics, if a good is inelastic, then <u>its supply or demand is not sensitive to price changes.
</u>
Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.
<h2>Further Explanation;
</h2>
- Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
- When the price of an inelastic good changes, its supply and demand is unaffected.
- Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.
<h3>Demand and supply in determination of market price
</h3>
- Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.
- One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
- Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.
- This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
- However, for <u>inelastic goods</u> such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.
Keywords; Inelastic goods, demand and supply, market price.
<h2>Learn more about:
</h2>
- Demand and supply; brainly.com/question/6749722
- Effect of supply and demand on market price: brainly.com/question/3522474
Level; High school
Subject: Business
Topic: Demand and supply
Sub-topic: Types of goods
Answer:
NPV = (53,222.44)
Explanation:
Net fixed asset 345,000
Working capital
160,000 inventory + 35,000 Ar = 195,000
short term deb (110,000)
net working capital 85,000
Total investment 430,000
salvage value 345,00 x 25% = 86,250
release of the working capital 85,000
Cash flow at end of project 171,250
annual cash flow
sales 550,000
cost (430,000)
depreciation 69,000
EBT 51,000
tax expense 35%
(17,850)
net income 33,150
+ dep 69,000
cash flow 102,150
Now we calculate the present value of the net cash flow and the present alue fothe end of the project
C 102150
time 4
rate 0.15
PV $291,636.04
Principla (sum of salvage and released Working capital 171,250.00
time 5.00
rate 0.15
PV 85,141.52
NPV = 291,636.04 + 85,141.52 - 430,000 = (53,222.44)
