Classify each type of income as earned or unearned: gifts

M8-1 Evaluating the Decision to Extend Credit [LO 8-1 Nutty Productions Inc. generated service revenue of $48,000 and income fro

emmasim [6.3K]

Answer:

Yes

Explanation:

In this question, we have to compare the total income based on credit extended The computation is shown below:

If credit is not extended, then the total income would be

= Service revenue + income from operations

= $48,000 + $19,000

= $67,000

If credit is extended, then the total income would be

= Service revenue + income from operations - additional expenses for wages and bad debts

= $87,000 + $19,000 - $34,000

= $72,000

Yes the company extend credit as the total income is increased by $5,000

7 0

3 years ago

In silicon valley, california, it is not unusual for highly skilled employees to stay at one company for about three years. thes

Anuta_ua [19.1K]

Answer:

Type A

Explanation:

William Ouchi developed the Japanese management Theory Z which served as a reference for understanding the great economic boom in Asian countries.

Type A organizations focus on individual performance and accountability, they generally rely on short term evaluation periods and rapid promotions of high achievers and encourages personal efficiency.

5 0

3 years ago

A store asked 250 of its customers how much they spend on groceries each week. the responses were also classified according to t

denis-greek [22]

Yes, I think there is a relationship between amount spent on groceries and gender because boys tend to eat more than the girls.

5 0

3 years ago

In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe

vaieri [72.5K]

Answer:

(a) 8%

(b) 5%

(c) 4%

Explanation:

According to the classical quantity theory of money,

Money supply × Velocity = Price Level × Real GDP

Money supply denoted by M

Velocity is denoted by V

Price level is denoted by P

Real GDP is denoted by Y

Therefore,

Change in M + Change in V = Change in P + Change in Y

Since, we know that V is constant, so V = 0

∴ Change in M = Change in P + Change in Y

(a) Nominal GDP = Price × Real GDP

Change in P + Change in Y = Change in Nominal GDP = Change in M

Change in M = 8%, it is given in the question.

Therefore, Change in Nominal GDP = 8%

(b) Change in M = Change in P + Change in Y

8% = Change in P + 3%

Change in P = 8% - 3%

= 5%

We know that change in price level is the inflation rate. Hence, the inflation rate is equal to the 5%.

(c) Real interest rate is the difference between the nominal interest rate and the inflation rate.

Real interest rate = Nominal interest rate - Inflation rate

= 9% - 5%

= 4%

6 0

3 years ago

Cost of Preferred Stock Marme, Inc., has preferred stock selling for 96 percent of par that pays an 11 percent annual coupon. Wh

nataly862011 [7]

Answer:

Component cost of preferred stock is 11.4583 %

Explanation:

Given Data:

Preferred stock selling=96 percent of par.

Annual Coupon =11 percent

Required:

What would be Marme’s component cost of preferred stock?

Solution:

The formula we are going to use is:

$i_{stock}=\frac{D_o}{P_o}$

Where:

$D_o$ is 11 percent annual coupon

$P_o$ preferred stock selling for 96 percent of par

If we convert the above percentage to dollar using the scale $1=1% then:

$D_o$ =$11

$P_o$ =$96

$i_{stock}=\frac{\$11}{\$96}\\ i_{stock}=0.114583$

Component cost of preferred stock is 11.4583 %

7 0

3 years ago