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Rick always likes to consume a cup of tea with a serving of noodles at any given time of the day. He earns a monthly allowance of 150. A cup of tea cost him Rs5 and serving of noodles cost Rs 10. Given this what will be Rick’s optimal consumption bundle? (1.5 marks) 2) Next, the price of a serving oof noodles has fallen to Rs9 while the price of tea has gone up to Rs6. How will it impact the choice of Rick? (1.5 marks) 3) Finally, consider instead, that the price of Noodles has fallen to Rs8 while the price of a cup of tea is constant at Rs 5, how will the choice be impacted in this case? Discuss the income and substitution effect in this case. (2 marks) Use diagrams to support your answers
There are three basic types of non-use value. Name and explain them
3.1 The balance in the bank statement on 28 February 2020 was R41 212 (CR). 3.2 Cheque no. 746 for R1 600, in favor of Umzinto Tennis Club for a donation, was reported lost by the club and must be cancelled. 3.3 Cheque no.795 for R4 800 appeared as outstanding in the Bank Reconciliation Statement on 31 January 2020. The cheque is still outstanding on 28 February 2020. 3.4 Cheque no. 820 for R5 280 and cheque no. 830 for R30 072, issued on 27 February 2013, have not been presented to the bank for payment: 3.5 A deposit of R28 000 made on 28 February 2020 was not reflected on the bank statement. 3.6 A deposit of R3 480 appeared in the bank statement and not in the firm’s books. This amount was deposited directly by the tenant, JK Cellular, for rent. 3.7 A cheque for R1 980, received from a debtor, L. Marcello, was deposited on 23 February 2020. The cheque was returned by the bank marked “Refer to drawer – account closed”.
REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the profit or loss on the disposal of the equipment. (5) 5.2 Prepare the following note to the financial statements as at 28 February 2020: * Property, plant and equipment (15) INFORMATION The following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year:
Vehicles 300 000 Accumulated depreciation on vehicles 140 000 Equipment 130 000 Accumulated depreciation on equipment 75 000 Additional information 1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019. 2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019. 3) Depreciation is calculated on equipment at 10% per annum on cost. 4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance
The following information was taken from the accounting records of Fantasia Traders.
REQUIRED
3.1 Complete the Cash Receipts Journal and Cash Payments Journal of Fantasia Traders for February
Journals. Use the following format: (10)
3.2 Post to the Bank account in the General ledger. Balance the account. (4)
3.3 Prepare the Bank Reconciliation Statement as at 28 February 2020. (6)
INFORMATION
1. The balance in the bank account in the ledger of Fantasia Traders on 01 February 2020 was R21
960 (favorable).
2. The total of the bank columns of the cash journals on 28 February 2020 were as follows:
Cash receipts journal R216 000
Cash payments journal R209 840
Assume that you are an entrepreneur of a hotel what are the pics and variable costs to carried out in that business
How would the purchase of bonds by the central bank from local banks be likely to affect
interest rates? How about the effect on interest rates of the sale of bonds? Explain.
Suppose the price ratio of two goods is 3/4 and Shubman, another student in college has a budget of $100. If the price of good X increases from 6 to 12, what is the new price
ratio? Show your work
The GOP deflator in Econoland is 200 on January 1, 2005. The deflator rises to 242 by January 1, 2007, and to 266.2 by January 1, 2008. n. What is the annual rate of inflation over the two-year period between January 1, 2005, and January 1, 2007?In other words, what constant yearly rate of infla- tion would lead to the price rise observed over those two years? b. What is the annual rate of inflation over the three- year period from January 1, 2005, to January 1, 2008? c. In general, if Po is the price level at the beginning of an n-year period, and P" is the price level at the end of that period, show that the annual rate of inflation It over that period satisfies the equation (1 + It)'' = P,/Po.
A new office building was constructed 5 years ago by a consulting engineering firm. At that time the firm obtained a bank loan for $100,000 with a 12% annual interest rate, compounded quarterly. The terms of the loan call for equal quarterly payments to repay the loan in 10 years. The loan also allows for its prepayment at any time without penalty. As a result of internal changes in the firm, it is now proposed to refinance the loan through an insurance company. The new loan would be for a 20-year term with an interest rate of 8% per year, compounded quarterly. The new equal quarterly payments would repay the loan in the 20-year period~ The insurance company requires the payment of a 5% loan initiation charge (often described as a "5-point loan fee"), - which will be added to the new loan.
(b) What is the difference between the equal quar terly payments on the present bank loan and the proposed insurance company loan?
