Answer:
$101,000
Explanation:
Computation of the net cash provided by investing activities
Sale of land and building
$191,000
Purchase of land
($37,000)
Purchase of equipment
($53,000)
Net cash flow from investing activities
$101,000
Answer:
12%
Explanation:
The computation of the accounting rate of return is shown below:
Accounting rate of return = Average profit ÷ Average investment
where
Average profit is
= $1,500 × 5 years ÷ 5 years
= $1,500
And, the average investment is
= $25,000 ÷ 2
= $12,500
So, the accounting rate of return is
= $1,500 ÷ $12,500
= 12%
We simply applied the applied formula
Answer:
Wealth is often evenly distributed throughout a population
Explanation:
In a free-market economy, the government does not interfere with economic activities in the country. The private sector manufacture and distributes goods and services. The products produced are available for purchase by customers at a profit. Only those with resources will acquire any goods and services including, the basic goods or capital goods.
In the free market economy, wealth is not evenly distributed. Owners of capital goods produce goods and services for profits. They grow more wealthy as they generate more profits. Those without sufficient resources are likely to remain poor as all their income is spent on consumption. The gap between the rich and poor is wide and continues to increase.