Answer:
1.Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Georgeland has an absolute advantange, because with the factors of production that it has available (the question does not specify the amount), it can produce either more food, or more clothing than Alland.
But Georgeland does not have comparative advantage in producing clothing, because the cost of opportunity of doing so is higher than Alland's, as can be seen in this comparison:
If Alland produces 16 units of clothing, it gives up on 32 units of food.
If Georgeland produces 18 units of clothing, it gives up on 36 units of food.
Answer:
Investing cash flow from current year = -$250,750. This means that the company invested $250,750 in purchasing new equipment and land during the year.
Explanation:
cash flow from investing activities = money received from the sale of assets - money spent purchasing new assets
- money received from the sale of assets = $175,000
- money spent purchasing new equipment = plant & equipment year 20x1 - plant & equipment year 20x2 + cost of old equipment = $1,000,000 - $1,025,000 + $225,000 = $200,000
- money spent purchasing new land = land 20x2 - land 20x1 = $725,750 - $500,000 = $225,750
Cash flow from investing activities = $175,000 - $200,000 - $225,750 = -$250,750
Answer:
$1,000
Explanation:
The above means that for every $1 increase in the market value in a long margin account, the SMA increases by $0.50
If the market value rises to $22,000, the account will show
Long market value - Debit = Equity % SMA
$22,000 - $10,000 = $12,000
Against $22,00 of market value, 50% can be borrowed or $11,000. Since the debit is $10,000, an additional $1,000 can be borrowed . This is the SMA
Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $14,000
To Capital owner $14,000
(being cash received)
On Jan 2
Cash $9,500
To Account service revenue $9,500
(being cash received)
On Jan 3
Account receivable $4,200
To Service revenue $4,200
(being service provided on account)
On Jan 4
Advertising expense $700
To Cash $700
(being cash paid is recorded)
On Jan 5
Cash $2,500
To Account receivable $2,500
(being cash received)
On Jan 6
Owner drawings $1,010
To cash $1,010
(being cash paid is recorded)
On jan7
Telephone expense $900
To Account payable $900
(Being telephone bill received)
On Jan 8
Account payable $900
To cash
(being cash paid is recorded)
