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2 years ago

How will the increase in government spending financed by borrowing affect national savings?.

Business

1 answer:

Whitepunk [10]2 years ago

8 0

Increament in government spending which is financed by borrowing will most likely affect national savings.

This is because borrowing money means you are spending from your future income.

The negative effect of spending borrowed money will most likely be felt when the money is not used for money yielding ventures.

This means that when borrowed money is not used to boost the economy of a country, it will most likely lead to the depletion of the national savings or reserve.

<h3>Viable areas to utilizing borrowed money</h3>

Infrastructure development
power
Education
Health
Transportation
Research

Learn more about National Savings at brainly.com/question/15109837

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How should an organization design its structure and culture to obtain a core competence in manufacturing and in research and dev

nekit [7.7K]

Answer and Explanation:

core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.

For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:

create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first

For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered

the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.

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3 years ago

I am conducting a survey as a project. I need ur help Which one you like 1. Ferrari 2. Lamborghini 3. Mclaren and why?? ( If you

Ne4ueva [31]

Answer:

Explanation:

Compared to the McLaren, the Lamborghini has less power, a heavier engine, and less active aerodynamic designs. This allows the Huracán Performante to be an excellent supercar with extreme sounds, feels, and the excitement of a Lamborghini, but in performance the McLaren is superior.

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3 years ago

Nash Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds

garri49 [273]

Answer:

$\left[\begin{array}{ccccccc}\\ &&$Carrying Value&$Cash&$Int. exp&$Amortization&$E.Carrying\\& 1&493574.88&26100&19743&6357&487217.88\\& 2&487217.88&26100&19488.72&6611.28&480606.6\\& 3&480606.6&26100&19224.26&6875.74&473730.86\\& 4&473730.86&26100&18949.23&7150.77&466580.09\\& 5&466580.09&26100&18663.2&7436.8&459143.29\\& 6&459143.29&26100&18365.73&7734.27&451409.02\\& 7&451409.02&26100&18056.36&8043.64&443365.38\\& 8&443365.38&26100&17734.62&8365.38&435000\\\end{array}\right]$

Journal entries:

cash 493,574.88 debit

bonds payable 435,000.00 credit

premium on bp 58,574.88 credit

--to record issuance--

Interest expense 19743

Amortization 6357

cash 26100

--to record Dec 31st, 2020--

Interest expense 19488.72

Amortization 6611.28

cash 26100

--to record June 30th, 2021--

bonds payable 130,500.00 debit

premium on bp 13,681.98 debit

interest expense 17,400.00 debit

gain on redemption 25,081.98 credit

cash 136,500.00 credit

--to record redemption--

premium on BP 4,813.04 debit

interest expense 13,456.96 debit

cash 18,270 credit

-- to record December 31st, 2021--

Explanation:

First, we solve for the proceeds from the bonds payable:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 26,100 (435,000 x 12% / 2)

time 8 ( 4 years x 2)

yield to maturity 0.04 ( 8% / 2)

$26100 \times \frac{1-(1+0.04)^{-8} }{0.04} = PV\\$

PV $175,724.6412

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 435,000.00

time 8.00

rate 0.04

$\frac{435000}{(1 + 0.04)^{8} } = PV$

PV 317,850.24

PV c $175,724.6412

PV m $317,850.2392

Total $493,574.8804

We now build the amortization schedule.

We take this value, we multiply by the interest rate and then, solve for amortization and ending carrying value.

To record the redemption:

accrued interest:

435,000 x 0.12 x 4/12 (months from June to oct) = 17,400

premium:

480,606.6 - 435,000 = 45,606.6

proportional of premium:

45,606 / 435,000 x 130,500 = 13.681,98

we now solve for the gain/loss on redemption:

130,500 + 13,681.98 + 17,400 = 161.581,9 value redeem

for cash 136,500

gain on redemption 25.081,98

bonds payable 130,500.00 debit

premium on bp 13,681.98 debit

interest expense 17,400.00 debit

gain on redemption 25,081.98 credit

cash 136,500.00 credit

Now, we solve for Dec 31st, 2021 entry.

bonds payable: 435,000 - 130,500 = 304,500

premium: 45,606 - 13,681.98 = 31.924,02

interest expense:

(304,500 + 31,924.02) x 0.04 = 13,456.96

cash outlay:

304,500 x 0.06 = 18,270

amortization 18,270 - 13,456.96 = 4,813.04

6 0

3 years ago

Consider the following financial statement for Heir Jordan Corporation. HEIR JORDAN CORPORATION Income Statement Sales $ 48,500

sp2606 [1]

Answer:

HEIR JORDAN CORPORATION

Income Statement

Sales $ 48,500 * 120%....................58,200

Costs 34,500 * 120%........................41,400

Taxable income $ 14,000...............16,800

Taxes (35%) 4,900 ...........................5,880

Net income $ 9,100 ........................10,920

Dividends $ 2,900 ..(31.87%)..........3,480

Former Addition to retained earnings 6,200

New Addition to retained earnings 7,440

Explanation:

Consider the following financial statement for Heir Jordan Corporation.

HEIR JORDAN CORPORATION

Income Statement

Sales $ 48,500 * 120%....................58,200

Costs 34,500 * 120%........................41,400

Taxable income $ 14,000...............16,800

Taxes (35%) 4,900 ...........................5,880

Net income $ 9,100 ........................10,920

Dividends $ 2,900 ..(31.87%)..........3,480

Former Addition to retained earnings 6,200

New Addition to retained earnings 7,440

Pay out ratio is 31.87% of Net income which is derived by Dividends/Net Income

4 0

3 years ago

Very urgent, i need this answered asap

inn [45]

Answer:

Yes they offer no fee but then they want payed for a small fee....... Aaaa business this days

8 0

3 years ago