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5. Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that make up GDP. National income (YY) equals total expenditure on the economy's output of goods and services. Thus, where CC = consumption, II = investment, GG = government purchases, XX = exports, MM = imports, and NXNX = net exports:
Also, national saving is the income of the nation that is left after paying for . Therefore, national saving (SS) is defined as:
Rearranging the previous equation and solving for YY yields YY = . Plugging this into the original equation showing the various components of GDP results in the following relationship:
This is equivalent to SS = , since net exports must equal net capital outflow (NCONCO, also known as net foreign investment). Now suppose that a country is experiencing a trade surplus. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).
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In: Economics
Questions 4 through 10 that follow are based on the following December 31, 20X6 year-end account balances for XYZ Co. after adjusting entries had been prepared but before the books were closed for the year. Using the attached information, prepare the adjusted trial balance on December 31, 20X6, prepare the income statement for the year ended December 31, 20X6, Prepare the statement of retained earnings for the year ended December 31, 20X6, Prepare the statement of financial position as of December 31, 20X6, Determine the working capital on December 31, 20X6,Determine the current ratio on December 31, 20X6,Determine the acid-test (quick) ratio on December 31, 20X6.
Cash……………..…………………………….250,000
Accounts receivable…………………….……..680,000
Marketable securities…………………………...60,000
Prepaid insurance……………………………….35,000
Prepaid rent….………………………………….30,000
Office equipment…………………………….....620,000
Accumulated depreciation: equipment………...200,000
Land……………………………………………750,000
Accounts payable………………………………306,000
Dividends payable……………………………… 50,000
Interest payable…………………………………... 8,750
Income tax payable……………………………...30,000
Unearned client service revenue………………..180,000
Notes payable (long-term).……………………..350,000
Common stock………………………………….750,000
Retained earnings….…………………………....315,200
Dividends…………………………………….......75,000
Client service revenue………………………...1,200,000
Travel expense………………………………..…..28,000
Office supplies expense…………………………..20,000
Advertising expense………………………………45,000
Salary expense…………………………………...400,000
Utility expense………………………………….....40,000
Depreciation expense: equipment…………………25,000
Interest expense……………………………….…...17,500
Insurance expense……………………………….....52,000
Rent expense……………………………………..175,000
Income tax expense………………………………..87,450
In: Accounting
Argonne National Laboratory, a government institution, discovers a cure for COVID19. Show the effect of this discovery on a production possibilities curve.
Draw the before and after tables of comparative advantage.
In: Economics
discuss the evolution of money in Jordan (developed\ developing) : (1200 words needed)
-what they use before money and after they create money
- evaluation of money
- the history of money
In: Economics
In: Economics
Review how hurricane Harvey influenced Port of Houston in terms of scale of damage to ports and transport infrastructures and the decision-making process before, during, and after the disaster.
In: Economics
Java
. Implement a method that meets the following requirements: (a) Calls mergesort to sort an array/list of at least 5 integers (b) Prints the list before and after sorting.
In: Computer Science
The following information (in $000) has been obtained from
Sheridan Limited’s financial statements for the fiscal years ended
December 31.
| 2020 | 2019 | 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|
|
Total assets |
$742 | $598 | $512 | ||||||
|
Current liabilities |
96 | 90 | 92 | ||||||
|
Total liabilities |
247 | 162 | 161 | ||||||
|
Total shareholders’ equity |
501 | 433 | 403 | ||||||
|
Income before taxes |
88 | 60 | 52 | ||||||
|
Interest expense |
10 | 6 | 5 | ||||||
|
Net cash provided by operating activities |
124 | 103 | 107 | ||||||
|
Net income |
73 | 49 | 43 | ||||||
|
Capital expenditures for the year |
30 | 20 | 15 | ||||||
|
Number of common shares outstanding |
81 | 81 | 79 | ||||||
|
Taken from stock market at Dec. 31 |
$16.60 | $12.39 | $12.20 | ||||||
There were no preferred shares issued by Sheridan nor were there
any dividends paid in any of the three years.
what is price earnings ratio for fiscal years 2019 and 2020?
x times? Round answer to 2 decimal places
In: Accounting
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2018 through 2021 except for differences in depreciation on an operational asset. The asset is purchased in 2018 at a cost of $120,000 and is depreciated fully for income tax purposes in 2018. The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Pretax accounting income amounts for each of the four years were as follows: 2018 2019 2020 2021 Pretax accounting income $90,000 80,000 70,000 70,000 Assume the average and marginal income tax rate for 2018 and 2019 was 30%; however, during 2019, tax legislation was passed to raise the tax rate to 40% beginning in 2020.
1. Prepare the year-end journal entries to record income taxes for 2018.
2. Prepare the year-end journal entries to record income taxes for 2019.
In: Accounting
On December 31, 2020, Crane Corporation had the following shareholders’ equity accounts:
CRANE CORPORATION
Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
Common shares (unlimited number of shares
authorized, 92,000 issued) $1,033,000
Retained earnings 520,000
Total shareholders’ equity
$1,553,000
During the year, the following transactions occurred:
Jan. 15 Declared a $1 per share cash dividend to
shareholders of record on January 31, payable February 15.
July 1 Announced a 2-for-1 stock split. The market price per share
on the date of the announcement was $18.
Dec. 15 Declared a 10% stock dividend to shareholders of record on
December 30, distributable on January 15. On December 15, the
market price of each share was $9; on December 30, $12; and on
January 15, $11.
31 Determined that profit before income tax for the year was
$456,000. The company has a 30% income tax rate.
part
(a)
Journalize the transactions and closing entries for 2021
In: Accounting