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1 year ago

The aggregate demand curve slopes downward indicating that

Business

1 answer:

Likurg_2 [28]1 year ago

4 0

Answer: Diminishing marginal utility.

Explanation: The demand curve tends to slopes downward because of diminishing marginal utility and it also slopes downwards because of the substitution and income effects.

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On December 31, 2021, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu

Liono4ka [1.6K]

Answer:

there are no options, but the journal entry should be:

Dr Cash 2,500

Dr Investment in bonds 350

Cr interest revenue 2,850

Explanation:

Since the bonds' carrying value is less than the face value, it means that Gardner Company purchased them at a discount. When the bonds were purchased, the investment in bonds account's balance was not $100,000 (the par value), instead it was recorded at the lower amount at which they were purchased. As coupon payments are received, the discount on the bonds is amortized and their carrying value should increase until it reaches par value on maturity date.

4 0

2 years ago

The Walden Manufacturing Corp. has office support salaries of $4,000, factory supplies of $1,000, indirect labor of $6,000, dire

Sedbober [7]

Answer: Total Period Cost = $20,500

Explanation:

Given :

Salary = $4000

Factory supply = $1000

Indirect labor = $6000

Direct material = $16000

Advertising expense = $2500

Office expense = $14000

Direct labor = $20000

Period costs are the costs incurring that do not tend to be a section of manufacturing process. Therefore, we compute the Period Cost using the following formula:

Period costs = Salary + Advertising expense + Office expense

= $4,000 + $2,500 + $14,000

= $20,500

7 0

2 years ago

Hannah and Ellen rely on consistent messages received via word of mouth and are older and more conservative than other customers

Aleks04 [339]

Answer:

they fall into early majority

5 0

2 years ago

Dobson Contractors is considering buying equipment at a cost of $75,000. The equipment is expected to generate cash flows of $15

Alex787 [66]

Answer: d. $1,534 positive net present value of the cash flows. Based on present value considerations, Dobson Construction should buy the machine.

Explanation:

To calculate the Net Present Value, we take the present values of all the future cashflows and subtract the initial cost from this amount.

Now, the cashflows are stable and this means that we can use the Present Value of an Annuity factor to find out the present value of the cashflows. We can then use a simple present value formula to find out the PV of the sale price.

I have attached a table that shows the PVIFA factors to make our calculations easier.

With interest rates at 12% and the year being 8 years, the PVIFA factors is 4.9676

Calculating therefore we have,

= 15,000 * 4.9676

= $74,514

This is the present value of 8 years of $15,000 cash flows.

In the same year, the machine can be sold for $5,000 so the present value of that is,

= 5000 / ( 1 + 12%)^8

= $2,020

Adding those together we get,

= 74,514 + 2,020

= 76,534

= $76,534

Subtracting the original cost we have,

= 76,534 - 75,000

= $1,534 in positive cashflow.

Net Present Value = $1,534

This means that Based on present value considerations, Dobson Construction should buy the machine due to a $1,534 positive net present value.

7 0

1 year ago

A business owner makes 50 items a day. She spends 8 hours in producing those items. If hired elsewhere she could have earned $10

ElenaW [278]

Answer:

Option (a) is correct.

Explanation:

Given that,

Explicit costs = $10,000

Here, the implicit cost is the cost of sacrificing money income from job:

= $10 per hour × 8 hours a day × 30 days

= $2,400

Revenues:

= Items produced in a day × Selling price of each × 30 days

= 50 × $10 × 30

= $15,000

Therefore,

Economic profit for the month:

= Revenues - Explicit costs - Implicit cost

= $15,000 - $10,000 - $2,400

= $2,600

8 0

1 year ago