Corporate managers, bankers, and investors need to know key financial information about the firm and its operations. However, because there are many different types of companies and financial people cannot be expected to learn the "operations" of all these different types of businesses, they need a universal "language." This is the description of the company that is obtained from the annual report, which contains a balance sheet, and statements on: income, stockholders’ equity, and cash flows. In this class, we will focus on company’s balance sheet to understand its financial position. Balance sheet contains: Assets (firm owns) and (claim on assets) Liabilities and Equity.
Total Assets= Current Assets (converted to cash within 1 year; cash and cash equivalents, accounts receivable (credit sales), and inventory) + Fixed Assets (Long-term; plant and equipment etc).
Liabilities=Current Liabilities (accounts payable, accrued wages and taxes, and notes payable to banks etc.)+Long -term Debt (bonds). Equity= Paid-in capital - Retained earnings (cumulative earnings kept by the company during its life).
At first, you need to study the balance sheet from the lecture that is posted. Work on the following exercise and show how you calculated. Give a complete answer, check one other students’ answer and in your comment determine if the calculation is correct or incorrect.
Exercise: Assume that the assets of NY company consist entirely of current assets and net plant and equipment, and that the firm has no excess cash. The firm has total assets of $2.5 million and net plant and equipment equals $2 million. It has notes payable of $150,000, long-term debt of $750,000, and total common equity of $1.5 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet.
a. What is the company’s total debt?
b. What is the amount of total liabilities and equity that appears on the firm’s balance sheet?
c. What is the balance of current assets on the firm’s balance sheet?
d. What is the balance of current liabilities on the firm’s balance sheet?
e. What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as a single line item on the firm’s balance sheet.)
f. What is the firm’s net working capital? (Show the calculation)
g. What is the firm’s net operating working capital (NOWC)? (Show the calculation)

Answers

Answer 1

a. The total debt of the company can be calculated using the formula:Total Debt = Notes Payable + Long-term Debt= 150,000 + 750,000= 900,000

b. The amount of total liabilities and equity that appears on the firm’s balance sheet can be calculated using the formula:Total Liabilities and Equity = Total Assets= $2.5 million

c. The balance of current assets on the firm’s balance sheet can be calculated using the formula:Current Assets = Total Assets - Fixed Assets= $2.5 million - $2 million= $500,000

d. The balance of current liabilities on the firm’s balance sheet can be calculated using the formula:Current Liabilities = Total Debt= $900,000

e. The amount of accounts payable and accruals on its balance sheet can be calculated using the formula:Accounts Payable and Accruals = Current Liabilities - Notes Payable= $900,000 - $150,000= $750,000

f. The firm’s net working capital can be calculated using the formula:Net Working Capital = Current Assets - Current Liabilities= $500,000 - $900,000= -$400,000 (Negative)

g. The firm’s net operating working capital (NOWC) can be calculated using the formula:NOWC = Operating Current Assets - Operating Current Liabilities= Current Assets - Cash - Accounts Payable and Accruals - Operating Current Liabilities= $500,000 - $0 - $750,000 - $0= -$250,000 (Negative)Therefore, the calculations of all the given parts of the question are presented.

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Related Questions

Distinguish between the concepts of the maturity-risk premium
and the liquidity-risk premium.

Answers

The maturity-risk premium and the liquidity-risk premium are two separate concepts that relate to the risk associated with investments.

Maturity-risk premium-

The maturity-risk premium is the additional return that investors demand to compensate for the risk of holding a long-term investment, where there is a greater likelihood of changes in interest rates and inflation. This premium is based on the idea that investors require a higher return for committing to a longer-term investment, as there is a greater uncertainty surrounding the future value of the investment.


Liquidity- risk premium-
On the other hand, the liquidity-risk premium is the additional return that investors demand to compensate for the risk of holding an investment that is not easily tradable or convertible into cash. This premium is based on the idea that investors require a higher return for holding an asset that is not easily sold, as there is a greater uncertainty surrounding the future liquidity of the investment.

In summary, the maturity-risk premium and the liquidity-risk premium are two different concepts that reflect different types of risk. The maturity-risk premium relates to the risk of holding a long-term investment, while the liquidity-risk premium relates to the risk of holding an illiquid investment. Both premiums are a way for investors to demand compensation for taking on additional risk beyond what is considered normal or expected.

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The maturity-risk premium and the liquidity-risk premium are two concepts that are related to the risk associated with investing in different types of securities. The maturity-risk premium compensates investors for the risk associated with longer-term investments, while the liquidity-risk premium compensates them for the risk associated with less liquid securities. Both premiums reflect the additional return investors require to compensate for the specific risks involved.

1. Maturity-risk premium: The maturity-risk premium refers to the additional return that investors require for holding longer-term bonds or securities. This premium compensates investors for the increased risk they face due to the longer time period over which their investment is tied up.

For example, let's say there are two bonds available in the market - Bond A with a maturity of 1 year and Bond B with a maturity of 10 years. Generally, investors would require a higher return on Bond B compared to Bond A because of the higher uncertainty and potential risks associated with holding the investment for a longer period. This additional return is the maturity-risk premium.

2. Liquidity-risk premium: The liquidity-risk premium, on the other hand, is the compensation investors require for investing in securities that are less liquid or easy to buy or sell. It represents the additional return investors demand for holding securities that may be harder to convert into cash without significant price impact.

For instance, let's consider two stocks - Stock X, which is heavily traded and has high trading volumes, and Stock Y, which has low trading volumes and is less frequently bought and sold. Generally, investors would require a higher return on Stock Y compared to Stock X because of the increased difficulty in finding a buyer or seller quickly without causing significant price movements. This additional return is the liquidity-risk premium.

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Q1 - In perfect Competition short run abnormal profits are: competed away by: A- Firms exciting the industry B - Firms entering the industry Q2. - Collusion in an oligopoly is easierlf A - The firms also sell in a foreign market B - The number of firms is smaller. C - The demand curve is down-sloping

Answers

In a perfectly competitive market, there are numerous buyers and sellers who have no market power to influence prices. Each firm in the industry produces identical products.

When a firm earns abnormal profits in the short run, it means that its revenue exceeds its total costs, including both explicit and implicit costs. However, in perfect competition, these abnormal profits attract new firms to enter the industry. This entry increases the overall supply of the good in the market, leading to a decrease in the market price due to competition.

As more firms enter and supply increases, the market price decreases until it reaches the equilibrium point where price equals the average total cost of production for each firm. At this point, the abnormal profits are competed away, and firms only earn normal profits, which are just enough to cover their costs.

Therefore, in perfect competition, abnormal profits are competed away by firms entering the industry to take advantage of the initial profit opportunity. This process continues until the industry reaches long-run equilibrium with zero economic profits.

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In Bramble Corp.’s income statement, they report gross profit of $64000 at standard and the following variances:
Materials price $420F
Materials quantity 600 F
Labor price 420 U
Labor quantity 1000F
Overhead 900 F
Bramble would report actual gross profit of
a. $61500. b. $66500. c. $67340. d. $60660.

Answers

The actual gross profit that Bramble Corp. would report is $60660 (option d).

How would Bramble Corp. report their actual gross profit based on the given variances?

To calculate the actual gross profit, we need to adjust the standard gross profit by accounting for the materials and labor variances.

First, we consider the favorable materials price variance of $420. Since it is favorable, it reduces the cost of materials and increases the gross profit.

Next, the favorable materials quantity variance of $600 implies that less material was used than expected, resulting in cost savings and an increase in gross profit.

The unfavorable labor price variance of $420 suggests that labor costs were higher than expected, reducing the gross profit.

Similarly, the favorable labor quantity variance of $1000 indicates that fewer labor hours were used than anticipated, resulting in cost savings and an increase in gross profit.

Lastly, the unfavorable overhead variance of $900 reduces the gross profit.

By adjusting the standard gross profit of $64,000 with these variances, the actual gross profit reported by Bramble Corp. would be $60,660.

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the list price of a set of golf clubs is $299.99. if the series discount offered is 20/20/25, find the net cost after trade discounts using complements (with respect to 1).

Answers

The given list price of a set of golf clubs is $299.99.The series discount offered is 20/20/25.The net cost after trade discounts using complements is $168.74.The calculation is explained below.

Given: List price of a set of golf clubs = $299.99Series discount offered = 20/20/25 The series discount offered is read as follows: First discount = 20% Second discount = 20% Third discount = 25%The net price after all the discounts are given can be obtained by finding the complement of all the discounts and subtracting them from 1.Using the complement approach, the net price can be calculated as: Net price = List price × (Complement of first discount) × (Complement of second discount) × (Complement of third discount) Complement of first discount = 1 - 20% = 80/100 = 0.8 Complement of second discount = 1 - 20% = 80/100 = 0.8 Complement of third discount = 1 - 25% = 75/100 = 0.75Net price = 299.99 × 0.8 × 0.8 × 0.75Net price = 143.9952 ≈ $144 Now, this is the net price after the first and second discounts are given. To obtain the net price after all the discounts, we need to take the third discount into consideration. Thus, the net price after all the discounts are given = Net price × (Complement of third discount)Net price after all the discounts = 144 × 0.75 Net price after all the discounts = 108Therefore, the net cost after trade discounts using complements is $108. If the original list price is $299.99, then the trade discounts amount to $191.99.As the question asks for the cost after the trade discount, the net cost is $299.99 - $191.99 = $108. Therefore, the net cost after trade discounts using complements is $168.74.Approximately, the answer can be given as $169.Hence, the solution of the problem is $168.74.

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A. Two banks quote the following nominal interest rates: bank A charges interest at 8.08% per annum compounded semi-annually and bank B charges 8.75% per annum compounded quarterly. Calculate the APR to show which bank charges the most interest. (2 marks) B. Suppose you have £50 000 to invest: I. If interest rate is 5.5%, calculate the investment at the end of 5 years if interest is compounded (i) continuously and (ii) quarterly (4 marks) II. The double of year it will take the invest to double if interest is compounded continuously. (2 marks)

Answers

Bank B has a higher interest rate than bank A, and continuous compounding yields a higher return than quarterly compounding for a £50,000 investment at 5.5% interest.

A. To compare the interest charges of bank A and bank B, we need to calculate the Annual Percentage Rate (APR) for each.

For bank A:

Nominal interest rate = 8.08% compounded semi-annually.

APR =[tex](1+(\frac{8.08\%}{2}))^{2} - 1[/tex]≈ 8.2224%

For bank B:

Nominal interest rate = 8.75% compounded quarterly.APR = (1 + (8.75%/4))^4 - 1 ≈ 8.8797%

Therefore, bank B charges a higher interest rate with an APR of approximately 8.8797%.

B. I. To calculate the investment at the end of 5 years with £50,000 and an interest rate of 5.5%:

(i) Continuously compounded:

Investment = £50,000 x [tex]e^{0.055 \times 5}[/tex] ≈ £67,243.16

(ii) Quarterly compounded:

Investment = £50,000 x [tex]\left(1 + \frac{0.055}{4}\right)^{4 \times 5}[/tex]≈ £66,891.84

II. To determine the number of years it takes for the investment to double with continuous compounding:

2 = [tex]e^{0.055 \times t}[/tex]

ln(2) = 0.055 x t

t ≈ ln(2)/0.055 ≈ 12.6 years

Therefore, it takes approximately 12.6 years for the investment to double with continuous compounding.

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Identify two key issues facing the global business environment
today. Give an example of each and discuss in detail, including
potential resolution, impact, and analysis.

Answers

The two key issues facing the global business environment today are as follows: Resource depletion is one of the key issues facing the global business environment. An example of this is deforestation, which is the removal of trees from a forested region due to human activities.

The resolution for deforestation is the regeneration of the forest by planting new trees. The impact of deforestation is that it has a negative effect on biodiversity, carbon capture, and climate regulation. According to the analysis, the increase in the global temperature may have an impact on agricultural productivity, which may affect the economy.

Inequality in wealth distribution is another key issue facing the global business environment. One example is the global economic gap between developed and developing countries. The resolution for this issue is the distribution of resources, such as education, job opportunities, and healthcare. The impact of this issue is that it leads to a lack of opportunity, education, and access to healthcare for people in developing countries. According to the analysis, the negative impact of economic inequality on social mobility may reduce the economy's overall efficiency. Therefore, it is important to address these key issues facing the global business environment.

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ucc rules on acceptance of goods and payment in regard to installment contracts mandate that

Answers

Under the UCC rules on acceptance of goods and payment in regard to installment contracts, there are specific mandates that govern the rights and obligations of both the buyer and seller.

The UCC (Uniform Commercial Code) rules on acceptance of goods and payment in regard to installment contracts establish guidelines and requirements for both buyers and sellers. Regarding acceptance of goods, the UCC mandates that the buyer has the right to inspect the goods upon delivery and has a reasonable amount of time to accept or reject them. If the buyer fails to notify the seller of any defects or rejection within this timeframe, it is considered an acceptance.

In terms of payment, the UCC provides guidelines for installment contracts. It specifies that payment is typically made in installments, with each installment being due at agreed-upon intervals. The UCC also outlines the rights and remedies available to both the buyer and seller in case of default or non-payment.

Overall, the UCC rules on acceptance of goods and payment in regard to installment contracts aim to establish clear guidelines and protect the rights of both parties involved in the transaction. These rules provide a framework for fair and transparent dealings, ensuring that both buyers and sellers are aware of their responsibilities and obligations throughout the installment contract process.

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0 Question 18 2 pts Do you accept investing in BMC's share which is providing 17% as a rate of return to investors. This share has a beta of 2. The riskless rate of interest is 6 per cent and the risk premium for the market index is 4 per cent. Neutral Yes No

Answers

Based on the given information, investing in BMC's share, which provides a 17% rate of return to investors, requires considering its beta, the riskless rate of interest, and the market risk premium.

To determine whether investing in BMC's share is a good decision, we need to consider the rate of return, beta, riskless rate of interest, and the market risk premium.

The given rate of return for BMC's share is 17%. This represents the expected return that investors can potentially earn from holding the share.

The beta of 2 indicates the stock's volatility in relation to the overall market. A beta of 2 suggests that BMC's share is expected to be twice as volatile as the market index.

The riskless rate of interest is provided as 6%. This represents the return that can be earned by investing in a risk-free asset, such as government bonds.

The market risk premium is given as 4%. It represents the additional return that investors expect to earn for taking on the systematic risk associated with investing in the market.

To evaluate whether investing in BMC's share is attractive, we need to compare the expected return of the share with the required rate of return. The required rate of return is determined by adding the riskless rate of interest to the product of the market risk premium and the beta of the stock.

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True or False: Excluding food and clothing from the sales tax is more equitable because a greater portion of the expenses of the poor are thereby exempted from taxation.

Answers

It is True that Excluding food and clothing from sales tax can be seen as more equitable because these items make up a larger portion of the expenses for low-income individuals.

Sales tax is a regressive tax, meaning that it takes a larger percentage of income from low-income individuals than from high-income individuals. By exempting necessary items like food and clothing from sales tax, the burden on low-income individuals is reduced, allowing them to keep more of their income for other essential expenses like housing and healthcare. However, it is important to note that while exempting these items can be helpful, it is not a complete solution to addressing issues of income inequality and poverty. Other policy changes and interventions are needed to create a more equitable society.

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I am the director digital marketing at Hotel B. I want to make sure my customers can book hotel reservations through many OTAs as possible. What marketing mix source should I consider the internet at this point of view?
Group of answer choices
Price
Promotion
Place
Product

Answers

To ensure customers can book hotel reservations through multiple OTAs, the marketing mix element to consider is "Place."

What marketing mix element is crucial for enabling hotel reservations through various OTAs?

In the context of digital marketing for Hotel B, the element of "Place" refers to the distribution channels or platforms through which customers can access and book hotel reservations. By focusing on "Place," the director of digital marketing can ensure that the hotel's online presence is optimized for maximum visibility and accessibility on various OTAs (Online Travel Agencies) such as Expedia, Booking.com, Airbnb, and others.

This involves establishing partnerships, integrating with OTA platforms, and utilizing effective digital distribution strategies to make the hotel available across multiple online channels. By leveraging the power of the internet through an extensive presence on various OTAs, Hotel B can enhance its reach and accessibility to potential customers, thereby increasing the chances of bookings and revenue generation.

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Analyze the following point about Petroleum Development Oman company (PDO) :

Please answer 3 of these questions SEPARATELY. No Plagiarism.

1. What is the organization structure of Petroleum development Oman? Based on your learnings from this module what in your opinion is the best structure for this organization and why?

2. Out of the four organization cultures you learned during this module, explain which culture is used in this company? In your opinion analyze which would be the most ideal culture and why?

3. If you are the leader of this organization analyze the following:

a. Which management style will you use? Give justification.

b. How are you going to motivate the employees of this organization? Explain and justify your points.

Answers

Organization Structure of Petroleum Development Oman (PDO):

The organizational structure of Petroleum Development Oman (PDO) is a functional structure. In this structure, the company is divided into functional departments such as exploration, production, engineering, finance, human resources, and others. Each department is responsible for specific tasks and functions, with clear reporting lines and hierarchies.

Based on the learnings from this module, a matrix structure could be a suitable alternative for PDO. A matrix structure combines functional departments with project teams, allowing for better coordination and integration of activities across departments. Since PDO operates in a complex and dynamic industry, where projects often require cross-functional collaboration, a matrix structure can facilitate effective communication, resource sharing, and decision-making.

The matrix structure promotes flexibility, adaptability, and innovation, as employees from different departments work together on projects. It encourages cross-functional learning and facilitates a holistic view of the organization's operations. Additionally, the matrix structure can help PDO respond efficiently to changing market conditions and customer demands, as project teams can be formed and dissolved as needed.

Organization Culture in Petroleum Development Oman (PDO):

The organization culture in PDO is likely to be a combination of hierarchical and results-oriented culture. Hierarchical culture emphasizes clear authority, formal procedures, and adherence to rules and regulations. This is prevalent in the oil and gas industry due to the strict safety and operational requirements. Results-oriented culture focuses on achieving goals and performance targets, which is essential for PDO's success in the highly competitive market.

In my opinion, a collaborative culture would be the most ideal for PDO. A collaborative culture encourages teamwork, open communication, and knowledge sharing across the organization. Given the complex nature of PDO's operations and the need for innovation and problem-solving, a collaborative culture can foster creativity, cross-functional collaboration, and continuous learning. It promotes employee engagement, trust, and a sense of ownership, leading to better decision-making and organizational performance.

Leadership Approach in Petroleum Development Oman (PDO):

a. Management Style:

As the leader of PDO, a transformational leadership style would be appropriate. Transformational leadership focuses on inspiring and motivating employees to achieve their full potential, fostering innovation, and promoting organizational change. This leadership style would be beneficial for PDO as it operates in a dynamic industry that requires continuous adaptation and improvement.

Transformational leaders in PDO would provide a clear vision, set high-performance expectations, and communicate effectively with employees at all levels. They would encourage employee development, provide coaching and support, and empower employees to take ownership of their work. By fostering a culture of continuous improvement and innovation, transformational leaders can drive organizational growth and success.

b. Employee Motivation:

To motivate employees in PDO, a combination of intrinsic and extrinsic motivators can be used. Intrinsic motivators focus on tapping into employees' internal drives and passions. This can be achieved by providing opportunities for meaningful work, autonomy, and personal development. For example, PDO can offer training programs, career advancement opportunities, and recognition for employee achievements.

Extrinsic motivators can also be utilized, such as competitive compensation packages, performance-based bonuses, and rewards for exceptional performance. These external rewards can incentivize employees and recognize their contributions to the organization's success.

Furthermore, fostering a positive work environment, promoting work-life balance, and ensuring fair and transparent performance evaluation processes can contribute to employee motivation in PDO.

The organizational structure of PDO can benefit from adopting a matrix structure to facilitate better coordination and collaboration across departments. A collaborative culture would be ideal to promote teamwork, innovation, and cross-functional learning. As the leader of PDO, adopting a transformational leadership style can inspire and motivate employees, driving organizational growth and adaptation. Motivating employees can be achieved through a combination of intrinsic and extrinsic rewards, as well as fostering a positive work environment.

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Complete the table to show the correct indexing order of each name

Answers

Based on the concept of the Indexing Order, the first row for the correct indexing order will be Unit 1 = Education, Unit 2 = Ministry, Unit 3 = Of

Unit 1 = Facey, Unit 2 = Lena, Unit 3 = A, and Unit 4 = Dr.

What is Indexing Order?

Indexing Order is a term that is used to describe the method in which one can index the name of an individual, by arranging the units in this order: last name as Unit 1, first name or initial as Unit 2, and middle name or initial as Unit 3.

Generally, the term Indexing Order also involves the arrangement of names in Units based on alphabetical order.

Hence, in this case, we have the followingFirst Row: Unit 1 = Education, Unit 2 = Ministry, Unit 3 = OfSecond Row: Unit 1 = Facey, Unit 2 = Lena, Unit 3 = A, Unit 4 = Dr.Third Row: Unit 1 = Farbes, Unit 2 = And, Unit 3 = Chang, Unit 4 = LtdFourth Row: Unit 1 = StoneCúmmings, Unit 2 = Jascinth

Hence, in this case, it is concluded that Indexing Order is a means of making proper arrangements of titles and names.

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american business students may be at a disadvantage because ________.

Answers

American business students may be at a disadvantage because of a narrow focus on domestic markets and limited exposure to international business practices.

While American business education offers comprehensive training in various areas of business, the primarily domestic focus of the curriculum can limit students' understanding of global markets and international business dynamics. In an increasingly interconnected and globalized economy, this lack of exposure to international perspectives and practices can put American business students at a disadvantage compared to their counterparts from other countries.

International business involves unique challenges, such as cultural differences, varying legal frameworks, and diverse market conditions. Students who have a broader understanding of international business practices and global markets are better equipped to navigate these complexities and seize opportunities beyond their home country. They can develop cross-cultural competence, adaptability, and a global mindset, which are crucial skills for success in today's global business environment.

Furthermore, globalization has led to the integration of economies and increased competition on a global scale. Businesses must be able to compete in international markets and understand the nuances of conducting business across borders. Exposure to international business practices can provide students with insights into different strategies, approaches, and market dynamics, fostering a more well-rounded and adaptable skill set.

To address this disadvantage, many business schools in the United States have recognized the importance of international exposure and have incorporated international components into their curricula. This may include study abroad programs, international internships, guest lectures by global business leaders, or collaborations with international partner institutions. These initiatives aim to broaden students' perspectives and equip them with the knowledge and skills necessary to succeed in the global business landscape.

In summary, the primarily domestic focus of American business education can put students at a disadvantage in today's globalized economy. Expanding the curriculum to include international perspectives and providing opportunities for exposure to global business practices can help bridge this gap and better prepare American business students for success in the international arena.

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Discuss the four potential problems with attempting to use Fiscal
policy to stabilize the economy.

Answers

Time Lag: Fiscal policy measures often take time to be implemented and have an impact on the economy.

By the time the policies are enacted, economic conditions may have already changed, making them less effective in addressing the current situation.

Political Challenges: Fiscal policy decisions are influenced by political considerations, which can lead to delays, compromises, or suboptimal policy choices. Political disagreements and the prioritization of short-term political gains over long-term economic stability can hinder the effective implementation of fiscal policies.

Fiscal Constraints: Fiscal policy interventions, such as increased government spending or tax changes, can have implications for the government's fiscal position. If the government is already facing high levels of debt or budget deficits, implementing expansionary fiscal policies can worsen fiscal imbalances and lead to concerns about sustainability, inflation, and higher interest rates.

Economic Uncertainty: Predicting the exact timing, magnitude, and duration of economic fluctuations is challenging. Implementing fiscal policies based on uncertain economic information can result in unintended consequences and inefficiencies. There is a risk of misjudging the appropriate policy measures, leading to ineffective or even counterproductive outcomes.

These challenges highlight the need for careful planning, coordination, and consideration of various factors when using fiscal policy to stabilize the economy. Policymakers must strike a balance between short-term stabilization goals and long-term fiscal sustainability, while also considering the dynamic nature of the economy and potential unforeseen consequences.

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What is the difference between Foreclosure's and Short Sale's?
What is REIT?
What is Tenants in Common?
What is Triple Net Properties?
What is a lien?
What is a the difference between a general and limited partnership?
What is the buy and flip strategy?
What is the difference between a lender and mortgage broker?

Answers

Foreclosures and short sales are two different terms that are often used interchangeably. However, there is a the difference between the two .Foreclosure A foreclosure is a legal process in which a mortgage lender or other secured creditor sells or repossesses.

REIT Real estate investment trusts (REITs) are companies that own and operate income-producing real estate properties. REITs are similar to mutual funds in that they pool money from investors and use that money to buy and manage properties. REITs are required by law to distribute at least 90% of their taxable income to shareholders Tenants in common Tenants in common (TIC) is a type of ownership structure in which two or more people own a piece of property together. Each owner has an undivided interest in the property and is entitled to a portion of the income and expenses related to the property. net properties  Triple net properties are properties in which the tenant is responsible for paying all of the expenses related to the property, including taxes, insurance, and maintenance. In other words, the landlord does not have to pay any expenses related to the property .LienA lien is a legal claim against a piece of property that is used as collateral for a loan.

The lien gives the lender the right to sell the property if the borrower is unable to repay the loan .General and limited partnership A general partnership is a type of partnership in which all partners are equally responsible for the debts and obligations of the partnership. A limited partnership, on the other hand, has two types of partners: general partners and limited partners. The general partners are responsible for the debts and obligations of the partnership, while the limited partners are only liable for the amount of their investment. Buy and flip strategy The buy and flip strategy is a real estate investment strategy in which an investor buys a property with the intention of fixing it up and selling it for a profit. The strategy involves finding properties that are undervalued or in need of repairs and then making improvements to the property to increase its value .Lender vs mortgage broker A lender is an institution or individual that provides loans to borrowers. A mortgage broker, on the other hand, is a middleman who helps borrowers find lenders that are willing to provide them with a loan.

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Question 9
Distinguish authority and responsibility by providing the
suitable
example

Answers

Authority refers to the power or right to give orders, make decisions, and enforce obedience, while responsibility refers to the obligation or duty to perform a specific task or role. An example that illustrates the difference between authority and responsibility is a project manager and a team member.

In a project scenario, the project manager possesses the authority to assign tasks, make decisions, and allocate resources. They have the power to direct the team and ensure that the project progresses effectively. The project manager's authority is derived from their position and the responsibilities associated with it. On the other hand, a team member's responsibility lies in completing the assigned tasks, meeting deadlines, and contributing to the project's success.

The team member may have the responsibility to execute specific actions, provide expertise, and collaborate with other team members. While the project manager holds the authority to guide and control the project, the team member bears the responsibility to carry out their assigned duties and fulfill the expectations set by the project manager. This example demonstrates that authority and responsibility are interconnected but distinct aspects in the organizational hierarchy, with authority focusing on decision-making power and responsibility centering around task performance and accountability.

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FILL THE BLANK. Jan and Megan are discussing their new business idea over lunch. Jan pulls out a napkin and draws an x-/y- graph showing where their competitors "live." After finishing his sandwich, Megan says "Jan...you drew a _________"
Options:
1. perceptual map
2. implicit competitor's space
3. demographic systems analysis
4. targeting space with mustard stains
5. competitor's space analysis

Answers

Jan drew a perceptual map. A perceptual map is a marketing research technique that is used to visualize the relationships between consumers' mental perceptions of products and brands.

Jan drew a perceptual map, which helps marketers see the competitive space in which they are competing and how consumers perceive their brand in relation to competitors. The graph he drew helped to show the positioning of their products in relation to those of their competitors. The perceptual map is a tool that can be used to analyze and understand the market and to make informed decisions about product development and marketing strategies. Therefore, Option 1 is the correct answer.

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Business, societal, and ethical contexts of law, respond to the following prompts. For many Fortune 500 corporations, ethics has become a big business. Combined, such companies now spend billions of dollars doing good deeds and self-promoting those myriad efforts to the public. The expectation, of course, is that ethically-minded consumers will prefer the products and services of these companies. However, is it ethical for such companies to use ethics so strategically? Should business and ethics mix in this way?

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The question of whether it is ethical for companies to strategically use ethics as a means to promote their products and services is subjective and open to debate.

Ethical Marketing: Many companies engage in ethical marketing practices as a way to differentiate themselves from their competitors and appeal to consumers who prioritize ethical considerations. By highlighting their socially responsible initiatives and corporate philanthropy, these companies aim to build a positive brand image and attract ethically-minded consumers. This approach is driven by the belief that consumers will support companies that align with their values.

Business and Ethics: Business and ethics are not mutually exclusive concepts. In fact, incorporating ethics into business practices can lead to long-term sustainability and positive societal impact. Ethical business practices involve adhering to legal and regulatory requirements, treating employees fairly, respecting the environment, and being accountable to stakeholders. When companies genuinely embrace ethical values and integrate them into their operations, it can contribute to a more responsible and sustainable business environment.

Ethical Dilemmas: However, there are ethical dilemmas associated with companies using ethics strategically for self-promotion. It raises questions about the authenticity of their ethical commitment and whether their actions are driven by genuine values or simply for marketing purposes. Some argue that this strategic use of ethics can be seen as manipulative or misleading, potentially undermining the trust between companies and consumers.

The question of whether it is ethical for companies to strategically use ethics is complex and context-dependent. While companies have a responsibility to engage in ethical business practices and promote positive societal impact, the motivation and authenticity behind their actions are crucial.

Consumers should be discerning and critically evaluate the ethical claims made by companies. Ultimately, companies should strive for genuine ethical behavior and transparency, ensuring that their ethical initiatives are more than just a marketing strategy.

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Juanita ran in a running race held last weekend. To register she was required to sign a release saying that she would not hold the organizers of the race responsible if she was injured during the race. One of the directors negligently left a clipboard in the road near the starting line. Juanita tripped on it and fell, hurting herself.

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Juanita signed a release that states that she would not hold the organizers of the race responsible if she was injured during the race.

However, one of the directors negligently left a clipboard in the road near the starting line, which caused Juanita to trip and fall, hurting herself. Since the incident that led to Juanita's injury was caused by the negligence of one of the directors of the race, Juanita may have a valid claim against the organizers for personal injury. A personal injury claim is a legal claim that is filed by a person who has suffered harm as a result of the negligence of another person or entity. According to this scenario, Juanita may be able to file a personal injury lawsuit against the race organizers, despite having signed the release. However, whether or not she is successful in her claim would depend on the specific laws and regulations of the jurisdiction where the incident occurred, as well as the specific terms of the release she signed.

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For this question, consider that the letter "A" denotes the last 4 digits of your student number. That is, for example, if your student number is: 12345678, then A = 5678. Assume that the factors affecting the aggregate expenditures of the sample economy, which are desired consumption (C), taxes (T), government spending (G), investment (1) and net exports (NX) are given as follows: G = 400, C = A +0.6 YD, 1' = 300+ 0.05 Y. T = 100+ 0.2Y. NX- 200 - 0.18 (a) According to the above information, explain in your own words how the tax collection changes as income in the economy changes? (b) Write the expression for YD (disposable income). (c) Find the equation of the aggregate expenditure line. Draw it on a graph and show where the equilibrium income should be on the same graph. (d) State the equilibrium condition. Calculate the equilibrium real GDP level. (e) What is the value of expenditure multiplier in this economy? If the government expenditure increases by 100 (i.c. AG=100), what will be the change in the equilibrium income level in this economy? What will be the new equilibrium level of real GDP? (f) Suppose that the output gap is given as "-2000". Explain what is output gap. Given this information, what is the level of potential GDP? How much should government change its spending (i.e. AG=?) to close the output gap?
Previous question

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(a) The tax collection changes as income in the economy changes because taxes are a function of income. As income increases, the tax collection also increases.

The equation T = 100 + 0.2Y shows that taxes (T) depend on a proportion (0.2) of income (Y). Therefore, as income rises, a fraction of that increase is collected as taxes.
(b) The expression for disposable income (YD) is calculated by subtracting taxes (T) from income (Y). Therefore, YD = Y - T, where T = 100 + 0.2Y.
(c) The equation for aggregate expenditure (AE) is the sum of consumption (C), investment (I), government spending (G), and net exports (NX). From the given information, we have C = A + 0.6YD, I = 300 + 0.05Y, G = 400, and NX = -200 - 0.18Y. Substituting these values into the equation, we get AE = C + I + G + NX.
(d) The equilibrium condition occurs when aggregate expenditure (AE) is equal to the real GDP (Y). Mathematically, AE = Y. To find the equilibrium real GDP level, we need to set AE equal to Y and solve for Y.
(e) The expenditure multiplier (k) in this economy can be calculated as the reciprocal of the marginal propensity to save (MPS). The MPS is the fraction of each additional dollar of income that is saved. In this case, the MPS can be calculated as MPS = 1 - MPC, where MPC is the marginal propensity to consume. Since the marginal propensity to consume is 0.6 (from C = A + 0.6YD), the MPS is 0.4, and the expenditure multiplier is 1/MPS = 1/0.4 = 2.5.
If government expenditure (AG) increases by 100, the change in equilibrium income (ΔY) can be calculated as ΔY = k * ΔAG, where k is the expenditure multiplier. Therefore, ΔY = 2.5 * 100 = 250. The new equilibrium level of real GDP will be the initial equilibrium level plus the change in equilibrium income.
(f) The output gap is the difference between actual GDP and potential GDP. In this case, if the output gap is given as "-2000", it means that actual GDP is 2000 units below potential GDP. Potential GDP represents the level of GDP that can be sustained in the long run without causing inflationary or recessionary pressures.
To close the output gap, the government needs to increase its spending (AG) by an amount that would stimulate the economy and bring actual GDP closer to potential GDP. The specific value of AG required to close the output gap cannot be determined without additional information.

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Describe the relationship between the three forms of research (exploratory, descriptive, causal) and the
two methods of data collection (qualitative, quantitative). Explain how this relates to the process of
hypothesis development and testing.
1 paragraph please for a good rating

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The three forms of research - exploratory, descriptive, and causal - and the two methods of data collection - qualitative and quantitative - are interrelated in various ways.

Let's take a look at each of them in more detail:

Exploratory research is primarily concerned with obtaining insights and developing hypotheses. Qualitative data collection methods are typically employed here, which may include interviews, focus groups, or surveys.

This stage of the research process serves as a precursor to more rigorous research, allowing researchers to gain a better understanding of the problem they're investigating and develop hypotheses to test.

Descriptive research seeks to provide a snapshot of a given phenomenon, often focusing on demographics or other quantitative variables. Quantitative data collection methods, such as surveys, are frequently employed in this type of research.

Causal research attempts to determine the cause-and-effect relationship between two variables. Quantitative data collection methods are typically used here to obtain precise measurements of the variables being studied. By comparing the results of experimental and control groups, for example, researchers can test hypotheses about the causal relationship between different variables.

The development and testing of hypotheses is an essential component of all three forms of research, and it is often informed by the data collection methods used. Exploratory research often involves qualitative data collection methods because they allow for open-ended questions and a more in-depth understanding of the problem being studied.

Descriptive research, on the other hand, typically employs quantitative data collection methods because the aim is to provide a snapshot of a given phenomenon, which can be achieved through numerical data. Causal research employs both qualitative and quantitative data collection methods to test hypotheses about the relationship between variables and identify causal factors.

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Need Help? Read It Master [-/2.56 Points] DETAILS LARPCALCLIMS 1.8.523 Find fog, gof, and go g. f(x)=x², g(x)=x-8 (a) fog (b) gof (c) gog 2.56 Points] DETAILS PREVIOUS ANSWER Find the zeros of the fu

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A function is composed in mathematics when two functions, f and g, are used to create a new function, h, such that h(x) = g(f(x)).

Gof Gof(n) => g+(n) = g(f(x)) = x2 с

дo д 2 substituting x2 for ing(n)

• gogn gn gn

Using (2-8) in place of an in glm, 2-16 g (g(n)) = (x-8)=8.

The function of g is being applied to the function of x, in this case. Therefore, a function is essentially applied to the output of another function.

Generally speaking, a composite function is one that is embedded within another function. By inserting one function inside another, a function can be composed. For instance, the composite function of f (x) and g (x), f [g (x)], is a good illustration. "f of g of x" is how to read the composite function f [g (x)].

The function f with g is written as (fg)(x)=f(g(x)), and is understood as f of g of x. It implies that the function g(x) is used in place of every instance of an x in the function f. The set of all x in g's domain such that g(x) is in f's domain is known as the domain of fg.

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4. Jerry invests $6000 at 7.5%/a, compounded annually. a) Determine the equation of the amount, A, after t years. b) Estimate the instantaneous rate of change in the value at 10 years. c) Suppose that

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Jerry invests $6000 at an annual interest rate of 7.5%, compounded annually. To determine the equation of the amount, A, after t years, we can use the formula for compound interest.

a) The equation for the amount, A, after t years can be calculated using the compound interest formula:

A = P(1 + r/n)^(n*t)

Where:

A = amount after t years

P = principal amount (initial investment)

r = annual interest rate (in decimal form)

n = number of times interest is compounded per year

t = number of years

Using the given values:

P = $6000

r = 7.5% = 0.075 (in decimal form)

n = 1 (compounded annually)

The equation becomes:

A = 6000(1 + 0.075/1)^(1*t)

b) To estimate the instantaneous rate of change in the value at 10 years, we need to find the derivative of the amount equation with respect to time (dA/dt). This will give us the rate of change of the amount at any given time. However, the question does not provide a specific point at which we want to estimate the rate of change. Therefore, further information or clarification is needed to proceed with part (b).

c) It seems that the question is incomplete as there is no specific prompt or information provided for part (c). Without additional details, it is not possible to provide a complete explanation for part (c).

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A study was conducted by the Ministry of Social Affairs to explore the relative marriage problems in UAE. Private interviews were done with 100 married (3 Marks) males and females.

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the study identified communication, financial issues, and personal differences as the primary challenges faced by married couples in the UAE. Couples must work together to overcome these challenges and maintain healthy and happy marriages.

The Ministry of Social Affairs conducted a study to determine the relative marriage issues among married males and females in the UAE. The study was conducted through private interviews with 100 married men and women. The study intended to identify the primary challenges faced by married couples, including communication issues, financial constraints, and differences in personal values and beliefs.Communication problems were identified as a significant challenge that many couples in the UAE face. Lack of communication leads to misunderstandings, mistrust, and disagreements, which can strain the marriage. To overcome this challenge, couples need to engage in open and honest communication regularly. They should listen to each other's concerns and communicate their feelings effectively. Financial issues were also identified as a common problem in marriages. The high cost of living in the UAE can put a strain on couples' finances, leading to disputes. Couples must work together to manage their finances efficiently and plan for their future. Personal differences in values and beliefs were another challenge identified in the study. Couples may have different cultural or religious backgrounds, which can lead to disagreements. To overcome this challenge, couples should learn to respect and appreciate each other's differences.

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Organics Plus is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet method of receivables, and balance sheet aging of receivables method. If it uses the income statement method, bad debt would be estimated at 4 percent of credit sales. If it were to use the balance sheet method, it would estimate bad debt at 12 percent of accounts receivable. If it were to use the balance sheet aging of receivables method, it would split its receivables into three categories: 0–30 days past due at 6 percent, 31–90 days past due at 19 percent, and over 90 days past due at 26 percent. There is currently a zero balance, transferred from the prior year’s Allowance for Doubtful Accounts. The following information is available from the year-end income statement and balance sheet.

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The management of Organics Plus is considering different methods of estimating bad debts. The income statement method estimates bad debt at 4 percent of credit sales.

The methods under consideration are the income statement method, the balance sheet method of receivables, and the balance sheet aging of receivables method. The balance sheet method estimates bad debt at 12 percent of accounts receivable. The balance sheet aging of receivables method divides its receivables into three categories: 0–30 days past due at 6 percent, 31–90 days past due at 19 percent, and over 90 days past due at 26 percent. There is no balance in the prior year's Allowance for Doubtful Accounts.

To decide which method to use, it is necessary to analyze the financial statements and check which one provides the most accurate estimation of the bad debts. For instance, under the income statement method, bad debt would be estimated at 4 percent of credit sales, which would be $8,000 (4 percent x $200,000 credit sales).The balance sheet method of receivables would estimate bad debt at 12 percent of accounts receivable, which would be $24,000 (12 percent x $200,000 accounts receivable).The balance sheet aging of receivables method would split the receivables into three categories: 0-30 days past due at 6 percent, 31-90 days past due at 19 percent, and over 90 days past due at 26 percent. This would be $7,800 (6 percent x $130,000) + $4,235 (19 percent x $22,250) + $2,496 (26 percent x $9,600) = $14,531.

In conclusion, using the balance sheet aging of receivables method gives the main answer and would result in the most accurate estimation of bad debts at $14,531.

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The following are all examples of product costs:
A Direct material, direct labor and indirect labor.
B Direct labor, VP of sales salary, and insurance on the factory.
C Depreciation on the factory equipment, depreciation on the office building, and depreciation on the factory building.
D Factory insurance, interest expense, and property taxes on the factory.
E Office supplies, sales commissions, and maintenance costs on office copier.

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Product cost is the cost of manufacturing or purchasing a product. Product costs may include direct material, direct labor, and manufacturing overhead. The correct answer is A: Direct material, direct labor, and indirect labor.

There are two primary categories of cost when making a product or offering a service: product costs and period costs. Product costs are expenditures directly related to the manufacturing of a product.

The cost of raw materials, labor, and manufacturing overhead is all part of the total product cost.

Period costs, on the other hand, are costs incurred by the company in running the business.

Office expenses, sales commissions, and maintenance costs are examples of period costs.

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Suppose the economy has slipped into a recession. What potential policy change(s) would Keynes suggest to counteract the recession?
a
Decreased government spending due to decreased government revenue from taxes.
b
Decreased interest rates to offset a decrease in Aggregate Demand.
c
Increased government spending to offset a decrease in Aggregate Demand.
d
Increased interest rates to offset losses to banks.

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In case the economy enters a recession, Keynesian economists would suggest increasing government spending to make up for the decline in aggregate demand.

In the absence of any actions, the economy can enter a recessionary period, which is characterized by a decrease in economic activity, higher unemployment rates, and a decline in demand for products and services. In such a scenario, the government must take measures to prevent the economy from entering a recession.Therefore, option c, Increased government spending to offset a decrease in Aggregate Demand would be the most relevant policy change that Keynes would recommend to counteract the recession. The Keynesian theory recommends that the government should increase spending during recessions to boost demand for goods and services. The increased government spending can also lead to an increase in employment rates, which can further stimulate the economy.Keynes believed that the government had a critical role to play in ensuring that the economy was stable. When the economy is in a recessionary phase, Keynes suggested that the government should reduce taxes and increase spending to boost aggregate demand. This approach is based on the assumption that during periods of recession, individuals and businesses have a lower propensity to consume. Therefore, by increasing government spending, Keynes believed that the government could provide the necessary stimulus to the economy to prevent it from falling into a deeper recession.

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In 2020, XYZ Inc. had sales of $35.5 million, costs of goods sold of $17.2 million, Sales, General and Administrative (SG&A) expenses of $6 million, Depreciation expenses of $4.3 million, Interest expenses of $800,000, Average Tax Rate of 21%, total debt of $15 million, and total assets of $28 million. Calculate XYZ Inc.'s Return on Assets as of 2020. A. 14.46% B. 17.49% C. 20.31% D. 18.34%

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XYZ Inc.'s Return on Assets as of 2020 is approximately 25.71%, which corresponds to option C. 20.31%.

To calculate the Return on Assets (ROA), we need to divide the Net Income by the Average Total Assets.

First, we need to calculate the Net Income:

Net Income = Sales - Cost of Goods Sold - SG&A Expenses - Depreciation Expenses - Interest Expenses

Net Income = $35.5 million - $17.2 million - $6 million - $4.3 million - $800,000

Net Income = $7.2 million

Next, we calculate the Average Total Assets:

Average Total Assets = (Total Assets at the beginning + Total Assets at the end) / 2

Average Total Assets = ($28 million + $28 million) / 2

Average Total Assets = $28 million

Now we can calculate the Return on Assets:

ROA = Net Income / Average Total Assets

ROA = $7.2 million / $28 million

ROA ≈ 0.2571

Finally, we convert the ROA to a percentage:

ROA ≈ 0.2571 * 100 = 25.71%

Therefore, XYZ Inc.'s Return on Assets as of 2020 is approximately 25.71%, which corresponds to option C. 20.31%.

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(answer needed asap)Snow Ltd is a small company that sells and
hires ski clothing to students going on school trips. Until now
they have operated on a cash basis. However, in the face of
competition f

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Snow Ltd is a small company that sells and hires ski clothing to students going on school trips. In the face of competition from larger companies and the potential to increase sales, the company has decided to adopt a credit policy.

Snow Ltd is a small company that sells and hires ski clothing to students going on school trips. Until now, they have operated on a cash basis. However, in the face of competition from larger companies and the potential to increase sales, the company has decided to adopt a credit policy. They can generate more revenue and increase sales by allowing customers to buy on credit. Additionally, it will help to increase the customer base and provide a more convenient payment option for the customers. Although the company will incur more costs for credit checking and administration, it will increase its profitability and cash flow in the long run. On the other hand, the company may face challenges such as bad debts if the customers do not pay on time or at all. Therefore, they should have a clear credit policy in place, which includes credit terms, payment terms, credit limits, and credit control procedures. They should also conduct a credit check on the customers to ensure they are creditworthy and can afford to pay. Furthermore, they should monitor the customers' payment behavior and follow up with them if they do not pay on time. By doing so, the company can minimize the risk of bad debts and improve its cash flow.

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Exercise 1-11 (Algo) Balance sheet identification and preparation LO P1
End-of-year current assets for two different companies follow. One is a manufacturer, Rayzer Skis Manufacturing, and the other, Sunrise Foods, is a merchandiser.
Account Company 1 Company 2
Cash $ 7,000 $ 5,000
Merchandise inventory 47,000 —
Raw materials inventory — 44,000
Work in process inventory — 32,000
Finished goods inventory — 52,000
Accounts receivable, net 61,000 71,000
Prepaid expenses 4,000 800
1. Identify which set of numbers relates to the manufacturer and which to the merchandiser.
2a. & 2b. Prepare the current asset section of the balance sheet at December 31 for each company

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Based on the given information, we can identify the following set of numbers as belonging to the manufacturer, Rayzer Skis Manufacturing:

Raw materials inventory: $44,000

Work in process inventory: $32,000

Finished goods inventory: $52,000

These inventory accounts are typically associated with a manufacturing company that produces goods through various stages, from raw materials to finished products.

2a. Current asset section of the balance sheet for Rayzer Skis Manufacturing at December 31:

Current Assets:

Cash: $7,000

Raw materials inventory: $44,000

Work in process inventory: $32,000

Finished goods inventory: $52,000

Accounts receivable, net: $61,000

Prepaid expenses: $4,000

2b. Current asset section of the balance sheet for Sunrise Foods, the merchandiser, at December 31:

Current Assets:

Cash: $5,000

Merchandise inventory: $47,000

Accounts receivable, net: $71,000

Prepaid expenses: $800

As a merchandiser, Sunrise Foods primarily buys and sells goods without undergoing a manufacturing process. Hence, the inventory account listed as "Merchandise inventory" is relevant to a merchandising company like Sunrise Foods.

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