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3 years ago

8

Which equation is used in the textbook to illustrate the sources of new ideas that will be important for the future of economic

growth?

1 answer:

Nataly_w [17]3 years ago

5 0

Answer:

A(ideas) = physical capital × human capital × labor

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Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the be

Naddika [18.5K]

Answer:

Event 1:

Debit Warranty expense for $8.416.

Credit Warranty liability $8,416.

Event 2:

Debit Warranty liability for $8,416.

Debit Warranty expenses for $11,484.

Credit Cash for $19,900.

Explanation:

Estimated warranty liability = $4,208,000 * 0.2% = $8,416.

Excess of actual and over extimated warranty liability = $19,900 - $8,416 = $11,484

The journal entries will look as follows:

<u>Details Dr ($) Cr ($) </u>

Warranty expense 8.416

Warranty liability 8,416

<em><u>(To record the estimated warranty liability). </u></em>

Warranty liability 8,416

Warranty expenses 11,484

Cash 19,900

<em><u>(To record actual warranty cost). </u></em>

8 0

3 years ago

An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is

Andrej [43]

Here's the complete question:

An insurance company is analyzing the following three bonds, each with five years to maturity, and is using duration as its measure of interest rate risk:

a. $10,000 par value, coupon rate = 8%, rb = 0.10

b. $10,000 par value, coupon rate = 10%, rb = 0.10

c. $10,000 par value, coupon rate = 12%, rb = 0.10

What is the duration of each of the three bonds?

a. Duration on 8% coupon bond = 4.28 years

Year 1 ,2,3,4,5

CFs 800,800,800,800,10800

DCFs 727.27, 661.2, 601.05, 546.41 6705.95

PV=9241.84

Duration = <DCFs/PV

(7271+661.22+601.053+546.414+6705.95*5)/9241.84

=39568.1/9241.84

=4.2814

b. Duration on 10% coupon bond = 4.17 yearsc.

c. Duration on 12% coupon bond = 4.07 years

7 0

3 years ago

Read 2 more answers

1. What are interest groups, and what roles (good and bad ) do they play in the political process?

MaRussiya [10]

Answer:

Interest groups are formed to promote the interests or concerns of their members. They are primarily concerned with influencing public policy. Because a key function is to exert pressure on political decision-makers, interest groups are sometimes referred to as 'pressure' or 'lobby' groups.

6 0

2 years ago

Ricardian equivalence means that:

kati45 [8]

Answer:

changes in private savings offset any changes in the government deficit

Explanation:

Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.

In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.

6 0

3 years ago

Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 909

ElenaW [278]

Answer:

Equivalent units of production= 98,700

Explanation:

Giving the following information:

Physical Units Work in process, beginning 0

Completed and transferred out 90,900

Work in process, ending 7,800

Materials are added at the beginning of the process.

<u>To calculate the equivalent units, we need to use the following formula:</u>

<u></u>

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 0 + 90,900 + 7,800*1

Equivalent units of production= 98,700

Because the materials are added at the beginning of the process, the percentage of completion is 100%.

4 0

3 years ago