Answer:
The depreciation expense for the second year would be $60,352.
Explanation:
Double-declining-balance can be described as a method of depreciation method that depreciates an assets at twice the rate of the straight line depreciation method.
The depreciation expense for the second year can then be calculated as follows:
Straight line depreciation rate = 1 / Number expected useful life = 1 / 25 = 0.04, or 4%
Double-declining depreciation rate = Straight line depreciation rate * 2
= 4% * 2 = 8%
Year 1 depreciation expense = Building cost * Double-declining depreciation rate = $820,000 * 8% = $65,600
Year 2 depreciation expense = (Building cost - Year 1 depreciation expense) * Double-declining depreciation rate = ($820,000 - $65,600) * 8% = $754,400 * 8% = $60,352
Therefore, the depreciation expense for the second year would be $60,352.
At the beginning of the current year, Trenton Company's total assets were $274,000 and its total liabilities were $188,000. During the year, the company reported total revenues of $119,000, total expenses of $89,000 and owner withdrawals of $18,000. There were no other changes in owner's capital during the year and total assets at the end of the year were $286,000. Trenton Company's debt ratio at the end of the current year is:
Answer:
The correct answer is 65.7%
Explanation:
According to the given scenario, the calculation of the debt ratio is as follows;
But prior to that the following calculations are needed
Ending total assets $286,000
Less: Ending stockholders equity
opening stockholders equity($274,000 - $188,000) $86,000
Add: Revenue $119,000
Less: Expenses $89,000
Less: Dividends $18,000
Ending stockholders equity $98,000
ending liabilities $188,000
Now
debt ratio = Total liabilities ÷ total assets
= $188,000 ÷ $286,000
= 65.7%
hence, the debt ratio is 65.7%
True or false: Customers rely on the internet for many reasons, including product research, purchases, bill payments, and social networking, but they rarely use it to communicate questions and concerns to CSWs.
Answer:
True
Explanation:
Without internet we couldn't do what we do today in our jobs. We rely on the internet for many reasons. Hope this helps:)!
Before going on a business trip, Gina leaves the key to her apartment with Harry. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina Group of answer choices delivers the key to Harry. checks her suitcase. all of the choices. boards the plane.
Answer:
A bailment is created when Gina:
delivers the key to Harry.
Explanation:
Bailment refers to the temporary handing over of the physical possession of a property by the bailor to another person, called the bailee. As an agreement, it establishes a contractual relationship between the bailor and the bailee over the bailed property without the transfer of ownership. It may be for the mutual benefit of both parties or for the exclusive benefit of either party.
Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and interest expense of $1,200. If the tax rate is 35 percent, what is the operating cash flow, or OCF
Answer:
OCF = $18,505
Explanation:
To calculate OCF, we first need the income statement:
Income Statement
Sales $ 48,000
Costs 21,200
Depreciation 1,900
EBIT $ 24,900
Interest 1,200
Taxable income $ 23,700
Taxes (35%) 8295
Net income $ 15,405
OCF = EBIT + Depreciation - Taxes
OCF = $24,900 + 1,900 - 8,295
OCF = $18,505
Exercise 183 Wayne Company reported net income of $265,000 for 2020. Wayne also reported depreciation expense of $45,000 and a loss of $8,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $6,000 decrease in prepaid expenses.Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.
Answer:
Net cash flow of the operating activities is $356,000
Explanation:
Wayne Company
Partial statement of Cash flow
For the year Ended December 31, 2021
Cash flow from operating activities:
Net Income $265,000
Adjustment to reconcile net income to net
cash provided by operating activities
Depreciation expenses $45,000
Loss on sale of equipment $8,000
Decrease in accounts receivable $15,000
Decrease in prepaid expenses $6,000
Increase in accounts payable $17,000 $91,000
Net cash provided by operating activities $356,000
Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer to live with rich people and are willing to pay a premium for living with a fraction of rich people that is larger than 50%. Poor people’s premium curve is given as �!""# = 2�$, where x is the percentage of rich above 50% (e.g., if there are 52% rich, x will be 2). Rich people’s premium curve is given by �%&'( = 60� − 0.4�$. a) What is the equilibrium outcome (i.e., what is the share of rich and poor people, respectively). Explain.
Answer:give me Brainliest
Explanation:
A hypothetical futures contract on a nondividend-paying stock with a current spot price of $60 has a maturity of 1 year. If the T-bill rate is 5%, what should the futures price be
Answer:
$63
Explanation:
Calculation for what should the futures price be
Using this formula
Future price=Current spot price (1 + r)
Let plug in the formula
Future price= $60*(1+0.05)
Future price= $60* (1.05)
Future price= $63
Therefore what should the futures price be is $63
a landscape archetiect is hired to build a garden which is of the shape of a right traingle. suppose the architech wants to use a brick wall on the side of AC costing $9/ft and a metal fence on the side costing $3/ft suppose the architect has $1620 budget. what is the maxmum area the architect can build with he budget
Answer:
Maximum Ares architect can build is 36,450 [tex]ft^{2}[/tex]
Explanation:
Suppose
The Perpendicular of the triangle = l
The Base of the triangle = b
The hypotenuse of the triangle = h
The hypotenuse of the triangle can be calculated as follow
h = [tex]\sqrt{l^{2} b^{2} }[/tex]
Total Budget = $1,620
As the architect does not want to build anything on the hypotenuse of the triangle area.
So as per given condition
( $9 x l ) + ( $3 x b ) = $1,620
$3 ( 3l + b ) = $1,620
3l + b = $1,620 / $3
3l + b = 540
b = 540 - 3l ...........(1)
Area = 1/2 x l x b
using (1) we will have
Area = 1/2 x l x ($540 - 3l)
Now differentiating w.r.t l
[tex]\frac{d(area)}{dl}[/tex] = [tex]\frac{\frac{1}{2} [ 540l - 3l^{2}] }{dl}[/tex]
0 = [tex]\frac{1}{2} [ 540 - 6l] }[/tex]
0 = 540 - 6l
6l = 540
l = 540/6
l = 90 ft
Placing value of l in (1)
b = 540 - 3(90)
b = 540 - 270
b = 270
So, Maximum area will be calculated as follow
Maximum Ares = [tex]\frac{1}{2}[/tex] x 270 x 270
Maximum Ares = 36,450 [tex]ft^{2}[/tex]
Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. One way for both Todd and Jorge to avoid this risk would be to organize their firm as a(n):
Answer:
corporation
Explanation:
From the question, we are informed about Todd and Jorge who have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. N this case, One way for both Todd and Jorge to avoid this risk would be to organize their firm as corporation. Corporation can be regarded as legal entity which could be set up by shareholder or individuals so that profit can be made. It gives room for contracts entering, remition of taxes by federal and state, own asset , ability to sue and be sued.
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is Group of answer choices a quota. a dumping duty. an antidumping duty. a tariff.
Answer:
a quota
Explanation:
The quota is the type of the restriction made in the trade where the physical limit is set on the quantity of the products or goods that could be imported in a country under a prescribed period of time. It benefits the producers of goods
Therefore as per the given situation, since the Japan government sets a limit for the rice amount that can be imported from the United states so this represents the quota
Therefore the first option is correct
By addressing customer complaints as quickly as possible, even in the middle of a model year, is demonstrating ____.
a. assurance
b. empathy
c. responsiveness
d. serviceability
e. tangibles
Answer:
c. responsiveness
Explanation:
When customer's complains are quickly attended to as and when required, this is the demonstration of a quality known as responsiveness. Responsiveness is the ability to attend to requests on time when the occasion demands.
It shows and gives an assurance to customers that their request or complaints would be attended to through the channel. Thus, majority of them would prefer to use the channel instead of visiting one of the offices of the company.
A machine costing $91,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $5,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar.
Answer:
(a) straight-line
deprecation expense per year = ($91,800 - $5,400) / 3 years = $86,400 / 3 years = $28,800 per year
(b) double-declining balance
depreciation expense year 1 = 2 x 1/3 x $91,800 = $61,200
depreciation expense year 2 = 2 x 1/3 x $30,600 = $20,400
depreciation expense year 3 = $20,400 - $5,400 = $15,000
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 23 units at $205 17 units February: 33 units at $210 17 units May: 28 units at $215 21 units September: 25 units at $220 20 units November: 23 units at $225 25 units On December 31, there were 32 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory
Answer:
$6,755
Explanation:
The computation of the cost of the ending inventory using the perpetual LIFO method is as follows:
For January:
Total value = Units remaining in inventory × cost per unit
= (23 - 17) × $205
= $1,230
For February:
Total value = Units remaining in inventory × cost per unit
= (33 - 17) × $210
= $3,360
For May:
Total value = Units remaining in inventory × cost per unit
= (28 - $21) × $215
= $1,505
For September:
Total value = Units remaining in inventory × cost per unit
= (25 - 20) × $220
= $1,100
For November:
Total value = Units remaining in inventory × cost per unit
= (25 - 23) × $220
= $660
Cost of the ending inventory:
= $1,230 + $3,360 + $1,505 + $660
= $6,755
Depreciation--Jerry Company purchased machinery for $315,000 on May 1,2020 . It is estimated that it will have an useful life of 5 years, and a salvage value of $15,000. the machine is expected to last 100,000 hours. The machine was used for 25,000 hours the first year. What is the depreciation for the first year assuming working hours method (activity method) is expected to be used
Answer:
The depreciation for the first year is $75,000
Explanation:
In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.
First, we need to calculate the Depreciable value
Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000
Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000
Inventory is often reported as a miscellaneous expense on the income statement. reported as a current asset on the balance sheet. generally valued at the price for which the goods can be sold. reported under the classification of Property, Plant, and Equipment on the balance sheet.
Answer:
reported as a current asset on the balance sheet.
Explanation:
According to US GAAP, inventory must be reported at lower of cost or market value. ⇒ Therefore, "generally valued at the price for which the goods can be sold." is wrong.
Inventory is included under current assets since it is considered relatively liquid. ⇒ Therefore, "reported under the classification of Property, Plant, and Equipment on the balance sheet." is wrong.
Inventory is not an expense, cost of goods sold is an expense account. ⇒ Therefore, "reported as a miscellaneous expense on the income statement." is wrong.
A telephone company is considering building a new automated switching distribution substation with a useful life of 20 years to support new suburban developments. The substation is located in a state in which the combined tax rate is 40%, and the telephone company uses a 15% real interest MARR to assess capital investment projects. Estimated real dollar revenues and costs are as follows:Category Amount Building initial cost $1,157,000 Building salvage cost $250,000 Equipment initial cost $775,000 Equipment cost year 2 $150,000 Equipment salvage value $36,500 Annual revenues $650,000 year 1Revenue arithmetic gradient $20,000 year 2 to 5Annual revenues $750,000 year 6 to 20Annual operating expenses $185,000 first 10 years $230,000 year 11 to 15 $275,000 year 16 to 20The substation will be put into service on the first day of the telephone company’s fiscal year. Using MACRS depreciation, what will be the telephone company’s after tax equivalent uniform annual worth for the substation?
Answer: you jhuu uhuh nbu
Explanation:
You are bullish on Telecom stock. The current market price is $48 per share, and you have $9,600 of your own to invest. You borrow an additional $9,600 from your broker at an interest rate of 3.0% per year and invest $19,200 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 5% during the next year
Answer: 7%
Explanation:
The following can be deduced.from the question:
Loan amount = $9,600
Equity = $9,600
Market price = $48 per share
Total investment = $19,200
Growth of Investment = 5%.
We then calculate value of the investment in a year. This.will be:
= 19,200 × 1.05
= $20,160
Interest on the loan would be:
= $9,600 * 0.03
= $288
Therefore, rate of return will be:
= (20,160 - 9,600 - 288)/9,600 - 1
= 0.07 = 7%
20. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are: a. $125,000 fixed and $123,000 variable. b. $102,500 fixed and $150,000 variable. c. $125,000 fixed and $102,500 variable. d. $150,000 fixed and $123,000 variable. e. $150,000 fixed and $102,500 variable.
Answer:
e. $150,000 fixed and $102,500 variable.
Explanation:
fixed costs do not vary with output, so the fixed costs must be the same for both budgets = $150,000 (doesn't matter if production is 12,000 or 10,000 or 8,000, or 15,000 units)
variable costs per unit = $123,000 / 12,000 = $10.25
variable costs for flexible budget (10,000 units) = $10.25 x 10,000 = $102,500
Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whether the demand curve or the supply curve increases by dragging the item to the appropriate category.
Answer:
see below
From online search the situations as a below:
a. The government gives consumers a subsidy to buy hybrid cars.
b. More automobile producers start producing hybrids.
c. The price of non-hybrid cars falls.
d. The price of batteries for hybrid cars rises.
e. Gasoline prices rise.
Explanation:
A) A subsidy would result in consumers paying less than they would ordinarily pay. A government subsidy is equivalent to a reduction in price for consumers. A decline in prices increases demand. The demand curve increase.
b). should more producers start manufacturing hybrid vehicles, it will increase the number of vehicles available for customers to buy. More producers result in more output, which is an increase in supply. The supply curve increases.
c). Non-hybrid cars are substitutes goods for hybrid vehicles. If the price of non-hybrid cars falls, their demand will increases. Consequently, the demand for hybrid cars reduces. Both The demand curve and supply curve will not increase.
d). An increase in battery price will increase the overall cost of producing hybrid cars. An increase in production cost results in a price rise. Consequently, it reduces the demand for hybrid cars.
Both the demand and curve curves will not increase.
e). Hybrid cars consume less gasoline compared to non-hybrid cars. An increase in gasoline price will make non-hybrid cars less desirable but will increase the demand for hybrid cars. The demand curve for hybrid cars increases.
Private investment during a year includes Group of answer choices spending on plant and equipment plus capital formation the value of inventories plus the values of stocks and bonds spending on plant and equipment plus government spending plus household spending on stocks and bonds stocks and bonds purchased by firms spending on plant and equipment, new housing construction, and changes in inventories
Answer:
spending on plant and equipment, new housing construction, and changes in inventories
Explanation:
A private investment can be defined as funds used by business firms to purchase capital assets such as plants and equipments, new office building and inventories required for the smooth running of the business and are typically expected to generate revenues in the future (cash-flow) and appreciate in value.
Private investment during a year includes spending on plant and equipment, new housing construction, and changes in inventories.
Some business owners may decide to make more investment in their business on an annual (yearly) basis or perennially depending on the type of business and their level of capital expenditure.
In 2013, the IRS published a famous study that showed that the top 10 percent of households that earned the most money paid 70 percent of all federal taxes. The top 25 percent of households paid 87 percent of all federal taxes. Meanwhile, the entire bottom 50 percent of households only paid 3 percent of all federal taxes. It also showed that the bottom 50 percent of households received about half of all the taxes paid by the top 50 percent of households in the form of financial assistance such as college grants, food stamps, Section 8 housing subsidies, and other entitlement programs. What can we conclude
Solution :
From the context provided in the question, we can conclude that :
1. The study shows that there is a major redistribution of the wealth from a lead earning United States's households to the bottom half of the United States's household as it shows the top earners in the US pay more taxes that are distributed among the poor.
2. It will be a normative economic statement if someone says that it is not fair if the wealthy rich people are not paying more taxes. It makes a value judgement.
3. There are statistical studies hat are performed and then we say these findings are based on the positive economics.
What is the most likely explanation for a +20.0% return on a stock with a beta of 1.0 in a month when the market returned +10.0%?
a. The stock is aggressive.
b. The market is undervalued.
c. Favorable firm-specific news was reported.
d. The beta is really less than 1.0.
Answer:
c. Favorable firm-specific news was reported.
Explanation:
Some specific event must have affected the stock's price. E.g. Blackberry and Amazon announced a few days that they would work together and that immediately made Blackberry's stock increase 50% in one single day. These types of events are isolated and do not affect the market as a whole, e.g. Amazon's stock was not affected.
(a) Based on the information provided, describe the ways in which Volkswagen did not fulfill the requirements of effective corporate governance.
(b) In what ways did the Board of Directors sidestep its obligations to protect shareholder interests?
(c) How could Volkswagen better select its Board of Directors to avoid mistakes such as the emissions
scandal in 2015?
Answer:
I believe Volkswagen did not fulfill the requirements of effective corporate governance mainly because the board didn’t have enough independent directors present.
The essential driver is the nonappearance of a solid gathering of independent directors. In view of German Corporate law, administration is given by a Management Board and a Supervisory Board, with representatives making up half of the Supervisory Board. This ought to have took into consideration in any event half of the Supervisory Board to be completely independent. While remaining inside the 'letter of the law,' they evaded the 'spirit of the law' by cycling recent former senior executives through the Supervisory Board Chairmanship position and other board positions. This had the impact of expelling genuinely independent oversight.
To select the next board members and avoid any future issues Volkswagen can keep in mind the following things about the board that it is :
Is well informed about the company’s performance.
Guides and judges the CEO and other top executives.
Has the courage to curb management actions the board believes are inappropriate or unduly risky.
Certifies to shareholders that the CEO is doing what the board expects.
Provides insight and advice to management.
Is intensely involved in debating the pros and cons of key decisions and actions
Explanation:
Uniform Supply accepted a $8,400, 90-day, 8% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid
Answer:
Cash $8,568, credit Interest Revenue $28, credt Interest Receivable $140, credit Notes Receivable $8.400
Explanation:
The journal entry in the case when the note is paid is as follows:
Cash $8,568
To Interest revenue $28 ($8,400 × 8% × 15 ÷ 360)
To Interest receivable $140 ($8,400 × 8% × 75 ÷ 360)
To Notes receivable $8,400
(To record the note receivable)
Here the cash is debited as it increased the assets while on the other hand the interest revenue, interest receivable and note receivable is credited as it increased the revenue and decreased the assets
Information $6,000 coffee equipment - 5 year expected useful life (it depreciates 1/60 every month) Adjusting entries for the month end for a $6,000 coffee equipment. What is the entry for depreciate expense?
a. $60 depreciate expense - debit
b. $60 depreciate expense - credit
c. $100 depreciate expense - debit
e. $100 depreciate expense - credit
Answer:
c. $100 depreciate expense - debit
Explanation:
Depreciation Expenses Per Month = 1/60*6000
Depreciation Expenses Per Month = $100/month
Adjustment Entry
Account Title Debit Credit
Depreciation expenses $100
Accumulated Depreciation $100
10. Ahron Company makes 8,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: An outside supplier has offered to sell the company all of the units it needs. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $161,600 per year. If the part were purchased from the outside supplier, $7.50 of the fixed manufacturing overhead cost being applied to the part would be eliminated. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 8,000 units required each year
Answer:
$62
Explanation:
The computation of the maximum amount that should be willing to pay per unit is as follows:
The Relevant costs for decision making is
= Avoidable Costs + Opportunity Costs
where,
Total Avoidable Cost = Total Units Needed × ( Direct Materials + Direct Labor + Variable Manufacturing Overhead + Avoidable Fixed Manufacturing Overhead )
= 8,000 × ($14.90 + $17.50 + $1.90 + $7.50)
= $334,400.
And, the Total Opportunity Costs of Making is $161,600.
Now
Total Relevant Costs is
= $334,400 + $161,600
= $496,000.
So, the maximum per unit would be
= $496,000 ÷ 8,000
= $62
Supervisor: "He is going to rue missing today's training session." Why would he need to make up for missing today's training session? Why would he be mad about missing today's training session? Why would he regret missing today's training session? Why would he love missing today's training session? Why would he try missing today's training session?
Answer:
He would need to make up for missing today's training session because it is going to be a very important session that will help him a lot to improve his skills.
He would be mad about missing it because he would lose that valuable opportunity to improve his skills, as well as because he would have to make up for missing it.
He would regret missing the session for the same reason.
He tried missing today's session because he had other things on mind, more pressing tasks, the session is valuable but boring, etc.
The reason he would regret missing today's training session since it will be a crucial session that will greatly assist him in improving his talents.
What are training sessions?Training programs are seen as an important aspect of human resource development. It's a well-organized instrument for bringing certain abilities up to the target level using knowledge, training, coaching, and practice.
Thus, The reason he regret missing today's training session is the right as the training program is significant for him.
Learn more about training sessions here:
https://brainly.com/question/880788
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $35 per share and the building's book value on the books of the seller was $250,000. Which of the following journal entries is correct for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for the building?A. Building Db 270,000 Cash Cr 20,000 Common stock Cr 100,000 Additional paid-in capital Cr 150,000 B. Building Db 370,000 Cash Cr 20,000 Common stock Cr 350,000 C. Building Db 370,000 Cash Cr 20,000
Answer:
Smith Company
The correct journal entries for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for the building is:
A. Building Db 270,000
Cash Cr 20,000
Common stock Cr 100,000
Additional paid-in capital Cr 150,000
Explanation:
a) Data and Calculations:
Market price of stock = $35 per share
Building's book value = $250,000
Issue of 10,000 shares of $10 par value:
Common Stock $100,000 (10,000 * $10)
Additional paid-in capital $250,000 (at market price)
Cash $20,000
b) While the market price is $35 per share, the price at which the assets were exchanged will be reduced to $25 per share, since there was no receipt of cash from the seller of the building.
Drag the tiles to the correct boxes to complete the pairs.
Match the instances to the marketing utilities that they satisfy toward value proposition.
Cassey has her ice-cream shop just outside
the school.
Cassey’s ice cream blends with the richest
ingredients to make it tasty as well as healthy.
Cassey also offers credit to school kids
by maintaining a book of accounts.
Casey lists the nutritional value of each
flavor on a sign at the bottom of the
ice cream cartons.
form
place
Answer:
picture?
Explanation:
you cant put this here without a picture
Morgan Handley and Tricia Holbrook are discussing the new leasing standard. Morgan believes the standard requires that the lessee use the implicit rate of the lessor in computing the present value of its lease liability. Tricia is not sure if Morgan is correct. Explain the discount rate that the lessee should use to compute its lease liability.
Answer:
The description according to the circumstance has been presented in the paragraph following.
Explanation:
The lessee may necessitate a rate throughout determining the present value about individuals depreciation expense. The lessee would be expected that calculate his or her contingent liability by considering the implied rate throughout the lease unless that amount is conveniently calculated and whether the implied rate isn't appropriate, the lessee may be using the cumulative borrowing costs. The implied frequency including its lease would be the purchase price of the ongoing loan repayments, any asset-backed cost of its asset, or some additional financial labor including its lender.The leaseholder may be using the implied rate that measures his lease liability whether it is immediately calculated and whether the implicit value is not understood to them, he will be using the proportional money supply.