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Assoli18 [71]
2 years ago
12

A young couple living in rural west-central Missouri heard about the closing of a local grocery store. Although a small operatio

n, it served a small community that would now have to travel another 20 miles to the nearest grocery store. With help from a local realtor and banker, the couple purchased the store, remodeled it, and reopened it. As new store owners, they had to carefully watch cash flow. As their customer base began to grow, they began offering hot food, and hired others to help with the operation. The economic benefit created in this story is called _______
Business
1 answer:
Vlad [161]2 years ago
5 0

As new store owners, they had to carefully watch cash flow. As their customer base began to grow, they began offering hot food, and hired others to help with the operation. The economic benefit created in this story is called <u>An Invisible Hand</u>

Explanation:

Invisible hand refers to an economic term that is  used to describe the unexpected benefits of a business venture which was started with the sole purpose of self benefit but later on that benefit is also enjoyed by the community as a whole

This  clearly states the economic  benefit which was unexpected in the business.

In the given Scenario  also, the couple occupied the business but, the benefits were completely unexpected and the growth rate was  also high as related to   investment made.

Thus, the correct phrase for such situation is:<u>Invisible Hand</u>

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Paddy has lots of cousins. With a family reunion in the near future, Paddy decides to collect income information for himself and
Trava [24]

Answer:

37.9%, lower

Explanation:

Paddy has lots of cousins. With a family reunion in the near future, Paddy decides to collect income information for himself and all his cousins. He obtains the following data points: $52,000, $22,000, $92,000, $8,000, $118,000, $62,000, $38,000, $14,000, $132,000, $46,000, $26,000, $96,000, $54,000, $110,000, $80,000. The share of income received by the highest quintile of this income distribution is <u>37.9%</u>, which is <u>lower</u> than that for the highest quintile of the U.S. income distribution in 2005.

8 0
2 years ago
The before-tax income for Lonnie Holdiman Co. for 2020 was $101,000 and $77,400 for 2021. However, the accountant noted that the
lozanna [386]

Answer:

Lonnie Holdiman Co.

A Schedule showing the determination of the corrected income before taxes for 2020 and 2021:

                                                                             2020         2021

Before-tax income                                           $101,000    $77,400

1. Excess Sales revenue                                    (38,200)    38,200

2. December 31, 2020 Inventory understated   8,640      (8,640)

3. Amortized bonds discount not expensed      (1,776)       (1,901)

4. Equipment repairs not expensed                  (8,500)     (9,400)

5. Overstated depreciation from capitalized

   Equipment repairs                                             850           940

Corrected income before taxes                    $62,014   $96,599

Explanation:

a) Data and Calculations:

Before-tax income for 2020 = $101,000

Before-tax income for 2021 = $77,400

1. 2020 Sales Revenue $38,200; 2021 Sales Revenue $38,200

2. 2020 Understated inventory $8,640; 2021 Understated inventory $8,640

3. 2020 Unstated bonds interest expense $1,776

2021 Unstated bonds interest expense $1,901

4. 2020 Unstated equipment repairs $8,500 Overstated Equipment account $8,500

2021 Unstated equipment repairs $9,400 Overstated Equipment account $9,400

2020 Overstated Depreciation expense $850

2021 Overstated Depreciation expense $940.

Bonds Calculations:

Bonds outstanding value:

Bond's face value =        $250,000

Discount =                            15,000

Proceeds from bonds = $235,000

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,450 ($235,000 * 7%)

Amortized discount = $1,450

December 31, 2017:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,450 ($235,000 * 7%)

Amortized discount =          $1,450 ($16,450 - $15,000)

Outstanding value = $236,450 ($235,000 + 1,450)

December 31, 2018:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,552 ($236,450 * 7%)

Amortized discount =          $1,552 ($16,552 - $15,000)

Outstanding value = $238,002 ($236,450 + 1,552)

December 31, 2019:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,660 ($238,002 * 7%)

Amortized discount =          $1,660 ($16,660 - $15,000)

Outstanding value = $239,662 ($238,002 + 1,660)

December 31, 2020:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,776 ($239,662 * 7%)

Amortized discount =          $1,776 ($16,776 - $15,000)

Outstanding value = $241,438 ($239,662 + 1,776)

December 31, 2021:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,901 ($241,438 * 7%)

Amortized discount =           $1,901 ($16,901 - $15,000)

Outstanding value = $243,339 ($241,438 + 1,901)

Depreciation on Capitalized Equipment Repairs:  

Excess depreciation expense:

2020 = $850 ($8,500 * 10%)

2021 = $940 ($9,400 * 10%)          

6 0
2 years ago
A recall has been issued for specific brand of orange juice the store manager his match the information from the recall notice t
brilliants [131]

The first step is to investigate why the product recall was required. Then the manager should ask for details of the incident, follow up and report. Following these first steps will be essential in analyzing what was the problem with the product, whether it was any breach of the quality standard required by regulatory bodies or some other relevant factor.

4 0
2 years ago
You have won the lottery. You will receive $5,500,000 today, and then receive 40 payments of $1,900,000. These payments will sta
san4es73 [151]

Answer:

no, you shouldn't take the offer because the present value of your prize is higher than $35 million.

Explanation:

we must first calculate the present value of the annuity in 6 months. The effective interest rate per year = (1 + 9%/365)³⁶⁵ - 1 = 1.094162145 - 1 = 0.094162145 = 9.4162145

the discount rate for every 6 months:

0.094162145 = (1 + r)² - 1

1.094162145 = (1 + r)²

√1.094162145 = √(1 + r)²

1.046022058 = 1 + r

r = 0.046022058 = 4.6%

now the present value of the annuity in 6 years = $1,900,000 x (annuity factor, 4.6%, 40 periods) = $1,900,000 x 18.14185 = $34,469,515

then we must find the present value = $34,469,515 / 1.046 = $32,953,647.23

the total value of your prize = $32,953,647.23 + $5,500,000 = $38,453,647.23

6 0
2 years ago
Due to recent budget shortfalls, Muna is being forced to lay off 50 employees at her firm. She plans to offer a severance packag
kicyunya [14]

Answer:

She should have the laid off employees sign a non-disparagement agreement

Explanation:

5 0
2 years ago
Read 2 more answers
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