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galben [10]
2 years ago
7

the commercial banking system borrows from the federal reserve banks. as a result, the checkable deposits

Business
1 answer:
musickatia [10]2 years ago
3 0
Increases the deposit?
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Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in
Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0
2 years ago
Compute the payback period for each of these two separate investments:
musickatia [10]

Answer:

1.89 years and 2.91 years

Explanation:

The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

For first case

The initial investment is $260,000

And, the net cash flow is shown below:

= Depreciation + incremental after tax income

where,

Depreciation equals to

= (Original cost - residual value) ÷ (useful life)

= ($260,000 - $10,000) ÷ (4 years)

= ($20,000) ÷ (4 years)  

= $62,500

And the incremental after tax income is $75,000

So, the net cash flow would equal to

= $62,500 + $75,000

= $137,500

So, the payback period would be

= $260,000 ÷ $137,500

= 1.89 years

For second case

The initial investment is $170,000

And, the net cash flow is shown below:

= Depreciation + incremental after tax income

where,

Depreciation equals to

= (Original cost - residual value) ÷ (useful life)

= ($170,000 - $14,000) ÷ (9 years)

= ($156,000) ÷ (9 years)  

= $17,333

And the incremental after tax income is $41,000

So, the net cash flow would equal to

= $17,333 + $41,000

= $58,333

So, the payback period would be

= $170,000 ÷ $58,333

= 2.91 years

5 0
3 years ago
Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion in govern
Svetlanka [38]

Answer:

The correct answer is $19 trillion

Explanation:

Gross Domestic Product (GDP) is the total market or monetary value of all the goods and services produced by a country within its borders over a given period of time. It is used as a measure of a country's economic health, due to its broad coverage.

The formula for calculating GDP is: GD P  =  C  +  I  +  G  +  ( X  −  M )

where :

C = private consumption (consumer goods)

I = gross investments (investment goods)

G = government investments or government spending (govt. services)

X = export

M = import

Therefore:

GDP (in trillion) = 10 + 4 + 6 + (4 - 6) = 10 + 10 - 1 = $19 trillion dollars.

Please note that there is the nominal GDP and real GDP.

Nominal GDP is the total value of all the final goods and services a country produces within a year, while real GDP is the value of the goods and services produced within a year, putting inflation effects into account.

5 0
3 years ago
You just won $30,000 and deposited your winnings into an account that pays 3.9 percent interest, compounded annually. how long w
ruslelena [56]
For this case we have an equation of the form:
 y = A * (b) ^ x

 Where,
 A: initial amount
 b: growth rate
 x: number of years
 Substituting values we have:
 y = 30000 * (1,039) ^ x

 By the time the earnings increase to 75000 we have:
 75000 = 30000 * (1,039) ^ x

 From here, we clear x:
 (1,039) ^ x = (75000/30000)

log1.039 ((1.039) ^ x) = log1.039 ((75000/30000))


 x = log1.039 ((75000/30000))

x = 23.95 years
 Answer:
 
you will have to wait until 23.95 years your winnings are worth $ 75,000
7 0
3 years ago
Match each situation with the method of government intervention used to rectify it.
Natali5045456 [20]
1:People have too much money, and there is a danger of inflation. - <span>B contractionary fiscal policy
</span><span>
2:The GDP has fallen to an all-time low, and there is low demand for most goods. - </span><span>D:expansionary fiscal policy
</span><span>
3:Few farmers produce cotton because profits are at the equilibrium price. - </span><span>A:price floor
</span><span>
4:Prices of staple foods have shot up because of shortages after an earthquake. - </span>C:price ceiling
5 0
3 years ago
Read 2 more answers
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