Rose Project is a nongovernmental not-for-profit entity established to help runaway children. Every year, Rose holds a charity benefit at which participants are asked to make pledges. This year, Rose received the following pledges: Unrestricted $500,000 Restricted for counseling programs 200,000 The pledges are legally binding and are expected to be received within the next 12 months. Rose estimates that 5% of the pledges will be uncollectible. At what amount should the pledges be reported on Rose’s balance sheet as pledges receivable? A. $665,000
B. $475,000
C. $190,000
D. $700,000

A. $665,000

Explanation:

Rose received the following

Unrestricted $500,000

Restricted for counseling programs $200,000

Hence, Total Outstanding Pledge = $500,000 + $200,000 = $700,000

The Amount of Provision to be reported = $700,000 x 5% = $35,000

Amount should the pledges be reported on Rose’s balance sheet as pledges receivable will be $700,000 - $35,000

= $665,000

The price elasticity of supply is 1.42.

Explanation:

The price elasticity of supply is the measure of the degree of responsiveness of quantity supplied to a change in price. It is the ratio of proportionate change in quantity supplied and proportionate change in price.

An economist doing an analysis on the market for original paintings finds that a 7% increase in price will lead to an increase in the quantity supplied by 10%.

Price elasticity of supply

=

=

= 1.42