Answer:
e. A positive economic statement can be proved; a normative statement cannot.
Explanation:
A positive economic statement are objective statement that can be tested, amended or rejected by referring to available evidence.
this means in essence that a positive economic statement is prone to improvement when proven. it is not rigid
a normative statement is subjective that cannot be changed. it is rigid.
The arbitrage profit implied by these prices is $5.24.
<h3>Arbitrage profit</h3>
Given:
Future contract= 1645
Sport gold price = 1592
Risk-free rate (rf) = .03
Hence:
Arbitrage profit=1645-[1592(1+1.03)¹]
Arbitrage profit=1645- 1639.76
Arbitrage profit=1645 =$5.24
Therefore the arbitrage profit implied by these prices is $5.24.
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Answer: net exports
Explanation:
Balance of payment simply shows the estimation of the inflows and outflow of a nation's money for a certain year. It should be noted that current account of the balance of payment consists of three main components which are the trade in Goods, the trade in services, and the transfer payments.
The trade in goods is segregated into imports and export. This therefore makes the net exports volatile and vital because it has higher share in a current account.
Answer:
The cost recorded will be $53,400
Explanation:
In this question, we are to give the value of the amount recorded as the cost of the new equipment.
By simply doing some additions, we will be okay.
mathematically, this would be
Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400
Answer: Cost of Goods sold
Explanation:
Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.
Current Year Prior Year
Sales 100% 100%
Cost of Goods sold 75.7% 46.5%
Gross Profit 24.3% 53.5%
Operating expenses 17.3% 35%
Net Income 7.0% 18.5%
<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>
<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>