Answer:
The asset’s anticipated percentage rate of return is 5%
Explanation:
Rate of return is the annual return that an investor earns on an Initial investment in an asset.
RatReturn on Asset = Expected selling price - Initial Purchase price
Return on Asset = $1,050 - $1,000
Return on Asset = $50
Rate of return = Return on Asset / Initial Purchase price = $50 / $1,000 = 0.05 = 5%
Answer:
D) try to get together and limit the quantity supplied.
Explanation:
Elasticity of demand is defined as a measure of the responsiveness of changes in quantity demanded with change in price.
When price increases the quantity demanded falls.
If a good is inelastic it means that the price increase will not result in a big drop in quantity demanded.
So if suppliers notice a good is inelastic they will most likely come together to reduce supply while increasing prices. This will result in higher revenues for them as quantity demanded does not fall with increase in price.
Answer: If the price of bagels is reduced "a.The demand curve for doughnuts will shift to the left."
Explanation: Being substitute goods The decrease in the price of bagels causes consumers to prefer to consume bagets before donating, therefore the demand for donuts will shift to the left (decrease).
Answer:
Option (D) is correct.
Explanation:
Given that,
Began July with a finished-goods inventory = $48,000
Finished-goods inventory at the end of July = $56,000
Cost of goods sold during the month = $125,000
Cost of goods manufactured during July:
= Ending finished goods inventory + Cost of goods sold - Beginning finished goods inventory
= $56,000 + $125,000 - $48,000
= $133,000
Answer:
a. Journal entry to record the issue of notes
Date Account Title & Explanation Debit $ Credit $
Jan 1 Cash 350,000
Notes Payable 350,000
(To record the issue of notes payable)
b. Calculation of Interest Expenses
Particulars Amount $
Beginning balance of loan payment 350,000
Annual interest rate 4%
Interest expenses 14,000
Hence the interest expenses = $14,000
Principal amount is calculated as the difference between the annual payment and the interest expenses as seen below
Particulars Amount $
Annual payment 96,590
Less: Interest expenses 14,000
Principal Payment 82,590
Hence, the principal payment =$82,590
