Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Assets = Liabilities + Equity
cash (18,000) NA Retained earnigns (18,000)
cash (88,000) NA Retained earnigns (88,000)
Retained earnings is an equity account and any cash dividends paid either to preferred or common stock will decrease cash and retained earnings, remember that both sides must balance.
Answer:
17.64%
Explanation:
Precision aviation has a profit margin of 7%
The total assets turnover is 1.4
The equity multiplier is 1.8
Therefore the ROE can be calculated as follows
= Total assets turnover × equity multiplier × profit margin
= 1.4 × 1.8 × 7
= 17.64%
Hence the ROE is 17.64%
I would say that the last answer is the most likely to occur
Answer:
1. The mandatory retirement age in Wonkaland is abolished.
- INCREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: greater use of labor
2. Wonkaland's main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy.
- NO CHANGE IN THE LONG RUN AGGREGATE SUPPLY CURVE
3. Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines.
- INCREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: greater use of capital investments
4. The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world.
- DECREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: lower use of capital investments
Explanation:
The long run aggregate supply curve is only affected by changes in capital, labor and technology. If the use of these factors increases, the LRAS curve will increase, if their use decreases, then the LRAS curve decreases.