Select the correct answer. A manager at a coffee shop gives an ""Employee of the Month"" award to her employees for exceptional
1 answer:
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Answer:
Year Nominal wage Real wage Price level Inflation rate
1 $7 $5 140 Nil
2 $9 $6 150 7.14 %
3 $12 $7.5 160 6.67 %
Explanation:
Note: The table for the question is attached as picture
Price level in Year 1 = (Nominal wage in year 1/Real wage in year 1) * 100
Price level in Year 1 = ($7.00 / $5.00) * 100
Price level in Year 1 = 1.4 * 100
Price level in Year 1 = 140
Real wage in Year 2 = (Nominal wage in year 2 / Price level in year 2) * 100.
Real wage in Year 2 = ($9.00 / 150.00) * 100
Real wage in Year 2 = $6
Nominal wage in Year 3 = (Real wage in Year 3 * Price level in Year 3) / 100.
Nominal wage in Year 3 = ($7.50 * 160) / 100
Nominal wage in Year 3 = $1,200 / 100
Nominal wage in Year 3 = $12
Inflation rate in Year 2 = (Price level in Year 2 - Price level in Year 1) / Price level in Year 1.
Inflation rate in Year 2 = (150 - 140) / 140
Inflation rate in Year 2 = 10 / 140
Inflation rate in Year 2 = 0.0714
Inflation rate in Year 2 = 7.14 %
Inflation rate in Year 3 = (Price level in Year 3 - Price level in Year 2) / Price level in Year 2.
Inflation rate in Year 3 = (160 - 150) / 150
Inflation rate in Year 3 = 10 / 150
Inflation rate in Year 3 = 0.0667
Inflation rate in Year 3 = 6.67%.
Answer:
The events have been explained below while the Horizontal Statement is attached for Expert Computers as of 2018.
Explanation:
Expert Computers
Horizontal statements model
For the year ending 2018
2. It means that if Expert Computers opt to pay for merchandise inventory within 10 days than they can avail the discount of 2%, otherwise they will be paying net amount in 30 days.
3. A/C Payable Balance = $70,000
Paid 1 Half = $70,000 x 1/2 = $35,000
Discount = $35,000 x 2% = $700
Cash Decrease by = $35,000 - $700 = $34,300
4. It means that if the buyer pays the amount within 20 days of the purchase than Expert Computers will give 1% discount, otherwise full amount needs to be paid within 30 days.
5. This is the cost of goods sold.
6. Account Receivables = $56,900
Discount Allowed = $56,900 x 1% = $569
Cash = $56,900 - $569 = $56,331
8. Since the discount is not availed as payment to vendor made within 30 days. Hence, the remaining amount of current liability will balance out with $35,000.
