ME
Mandy Estrada
Answers (4)
ME
Answered
In the 1980s,tax rates were cut,government revenues fell below expectations,and there was a then-historic peacetime deficit.
On May 12, 2024
True
ME
Answered
A maximum price, set by the government, that sellers may charge for a good is known as
A) a price floor.
B) a price rationing mechanism.
C) a price ceiling.
D) a subsidy.
A) a price floor.
B) a price rationing mechanism.
C) a price ceiling.
D) a subsidy.
On May 12, 2024
C
ME
Answered
ABC Inc. has a single wholly-owned American subsidiary called US1 based in Los Angeles, California, which was acquired January 1, 2020. US1 submitted its financial statements for 2020 to ABC. Selected exchange rates in effect throughout 2020 are shown below: Tanuary 1,2020: US $1= CDN $0.815 December 31,2020: US $1= CDN $0.8175 Average for 2020: US $1= CDN $0.825 Date of Purchase of Inventory on Hand: US $1= CDN $0.83 Date Dividends were declared: US $1= CDN $0.8125\begin{array}{|l|r|r|}\hline \text { Tanuary } 1,2020: & \text { US } \$ 1= & \text { CDN } \$ 0.815 \\\hline \text { December } 31,2020: & \text { US } \$ 1= & \text { CDN } \$ 0.8175 \\\hline \text { Average for } 2020: & \text { US } \$ 1= & \text { CDN } \$ 0.825 \\\hline \begin{array}{l}\text { Date of Purchase of Inventory on } \\\text { Hand: }\end{array} & \text { US } \$ 1= & \text { CDN } \$ 0.83 \\\hline \text { Date Dividends were declared: } & \text { US } \$ 1= & \text { CDN } \$ 0.8125\\\hline\end{array} Tanuary 1,2020: December 31,2020: Average for 2020: Date of Purchase of Inventory on Hand: Date Dividends were declared: US $1= US $1= US $1= US $1= US $1= CDN $0.815 CDN $0.8175 CDN $0.825 CDN $0.83 CDN $0.8125 US1 financial results for 2020 were as follows:
US1 Financial Statements
At December 31, 2020
(in U.S. dollars)
Income Statement: Sales $5,000,000 Cost of Sales $3,500,000 Depreciation Expense $150,000 Bond Interest Expense $100,000 Other Expense $750,000 Net Income $500,000 Statement of Retained Earnings: January 1, 2020: $400,000 Net Income $500,000 Dividends $100,000) December 31,2020:$800,000 Balance Sheet Cash $1,200,000 Accounts Receivable $1,900,000 Inventory $700,000($500,000 January 1, 2020) Plant and Equipment (net) $400,000 Current Liabilities $4,200,000 Bonds Payable $2,000,000 Common Shares $1,000,000 Retained Earnings $800,000$4,200,000\begin{array}{|l|r|}\hline \text { Income Statement: } & \\\hline \text { Sales } & \$ 5,000,000 \\\hline \text { Cost of Sales } & \$ 3,500,000 \\\hline \text { Depreciation Expense } & \$ 150,000 \\\hline \text { Bond Interest Expense } & \$ 100,000 \\\hline \text { Other Expense } & \$ 750,000 \\\hline \text { Net Income } & \$ 500,000 \\\hline \text { Statement of Retained Earnings: } & \\\hline \text { January 1, 2020: } & \$ 400,000 \\\hline \text { Net Income } &\$ 500,000 \\\hline \text { Dividends } & \$ 100,000) \\\hline \text { December } 31,2020: & \$ 800,000 \\\hline \text { Balance Sheet } & \\\hline \text { Cash } &\$ 1,200,000 \\\hline \text { Accounts Receivable } & \$ 1,900,000 \\\hline \text { Inventory } & \$ 700,000(\$ 500,000 \text { January 1, 2020) } \\\hline \text { Plant and Equipment (net) } & \$ 400,000 \\\hline \text { Current Liabilities } & \$ 4,200,000 \\\hline \text { Bonds Payable } & \$ 2,000,000 \\\hline \text { Common Shares } & \$ 1,000,000 \\\hline \text { Retained Earnings } & \$ 800,000 \\\hline & \$ 4,200,000 \\\hline\end{array} Income Statement: Sales Cost of Sales Depreciation Expense Bond Interest Expense Other Expense Net Income Statement of Retained Earnings: January 1, 2020: Net Income Dividends December 31,2020: Balance Sheet Cash Accounts Receivable Inventory Plant and Equipment (net) Current Liabilities Bonds Payable Common Shares Retained Earnings $5,000,000$3,500,000$150,000$100,000$750,000$500,000$400,000$500,000$100,000) $800,000$1,200,000$1,900,000$700,000($500,000 January 1, 2020) $400,000$4,200,000$2,000,000$1,000,000$800,000$4,200,000 Sales, purchases, bond interest, and other expenses occurred evenly throughout the year.
US1 is considered to be a foreign subsidiary that has the same functional currency as ABC Inc.'s functional currency.
Which of the following rates would be used to translate the company's common shares?
A) US$1 = CDN$0.815
B) US$1 = CDN$0.8175
C) US$1 = CDN$0.825
D) US$1 = CDN$0.83
US1 Financial Statements
At December 31, 2020
(in U.S. dollars)
Income Statement: Sales $5,000,000 Cost of Sales $3,500,000 Depreciation Expense $150,000 Bond Interest Expense $100,000 Other Expense $750,000 Net Income $500,000 Statement of Retained Earnings: January 1, 2020: $400,000 Net Income $500,000 Dividends $100,000) December 31,2020:$800,000 Balance Sheet Cash $1,200,000 Accounts Receivable $1,900,000 Inventory $700,000($500,000 January 1, 2020) Plant and Equipment (net) $400,000 Current Liabilities $4,200,000 Bonds Payable $2,000,000 Common Shares $1,000,000 Retained Earnings $800,000$4,200,000\begin{array}{|l|r|}\hline \text { Income Statement: } & \\\hline \text { Sales } & \$ 5,000,000 \\\hline \text { Cost of Sales } & \$ 3,500,000 \\\hline \text { Depreciation Expense } & \$ 150,000 \\\hline \text { Bond Interest Expense } & \$ 100,000 \\\hline \text { Other Expense } & \$ 750,000 \\\hline \text { Net Income } & \$ 500,000 \\\hline \text { Statement of Retained Earnings: } & \\\hline \text { January 1, 2020: } & \$ 400,000 \\\hline \text { Net Income } &\$ 500,000 \\\hline \text { Dividends } & \$ 100,000) \\\hline \text { December } 31,2020: & \$ 800,000 \\\hline \text { Balance Sheet } & \\\hline \text { Cash } &\$ 1,200,000 \\\hline \text { Accounts Receivable } & \$ 1,900,000 \\\hline \text { Inventory } & \$ 700,000(\$ 500,000 \text { January 1, 2020) } \\\hline \text { Plant and Equipment (net) } & \$ 400,000 \\\hline \text { Current Liabilities } & \$ 4,200,000 \\\hline \text { Bonds Payable } & \$ 2,000,000 \\\hline \text { Common Shares } & \$ 1,000,000 \\\hline \text { Retained Earnings } & \$ 800,000 \\\hline & \$ 4,200,000 \\\hline\end{array} Income Statement: Sales Cost of Sales Depreciation Expense Bond Interest Expense Other Expense Net Income Statement of Retained Earnings: January 1, 2020: Net Income Dividends December 31,2020: Balance Sheet Cash Accounts Receivable Inventory Plant and Equipment (net) Current Liabilities Bonds Payable Common Shares Retained Earnings $5,000,000$3,500,000$150,000$100,000$750,000$500,000$400,000$500,000$100,000) $800,000$1,200,000$1,900,000$700,000($500,000 January 1, 2020) $400,000$4,200,000$2,000,000$1,000,000$800,000$4,200,000 Sales, purchases, bond interest, and other expenses occurred evenly throughout the year.
US1 is considered to be a foreign subsidiary that has the same functional currency as ABC Inc.'s functional currency.
Which of the following rates would be used to translate the company's common shares?
A) US$1 = CDN$0.815
B) US$1 = CDN$0.8175
C) US$1 = CDN$0.825
D) US$1 = CDN$0.83
On May 12, 2024
A
ME
Answered
What are the economic effects of an appreciation of the dollar relative to foreign currencies?
On May 11, 2024
Appreciation of the dollar means that it takes fewer dollars to obtain foreign currencies. This means that foreign goods become less expensive to Americans and import spending should rise as Americans shift from buying U.S. products to buying the now cheaper, foreign products. It also means that it takes more foreign currency to obtain U.S. dollars, and therefore, U.S. exports abroad should fall.