A payment made by the government that effectively decreases the cost of producing a specific commodity or service is known as a subsidy.
Such incentives encourage businesses to boost the production of commodities with advantageous externalities.
A government-provided subsidy can be either direct or indirect and can be granted to a person, organization, or business. They can support faltering sectors, support new initiatives, and advance a social cause or piece of legislation.
Subventions in cash, like the grants stated above. tax breaks like exemptions, credits, or postponements. risk-taking, such as through loan guarantees. Government procurement practices that offer prices above those found on the open market.
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a system in which a shareholder can accumulate all of his or her votes and vote them all for one candidate or split them among several candidates is known as
A voting technique known as cumulative voting aids in enhancing the power of minority shareholders to choose directors. When the company has numerous openings on its board, this method enables shareholders to cast all of their votes for a single candidate.
An individual or legal entity registered by a corporation as the legitimate owner of shares of the share capital of a public or private corporation is referred to as a shareholder. Members of a corporation are sometimes referred to as shareholders. When a person or legal entity's name and other information are entered in a corporation's register of shareholders or members, they are deemed to be shareholders in that corporation. Unless mandated by law, the corporation is not required or allowed to inquire as to who actually owns the shares in question. In most cases, a corporation cannot own its own stock. The percentage of shares a shareholder owns determines how much power they have over the company. Legally speaking, shareholders of a corporation are distinct from the corporation itself.
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What is the importance of a dictionary in English language learning?
In learning English, a dictionary is a vitally important tool because it allows people to know the correct pronunciation and spelling of a word, as well as the meaning of the word.
What is a dictionary?It is a book in which you can find a certain number of words organized alphabetically with their explanation and meaning. Dictionaries offer spelling, definition, etymology and meaning.
These books are an indispensable tool for the knowledge of words and much more for the knowledge of new languages, in this way people expand their vocabulary.
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Zion sun chairs manufactures 3,575 beach chairs each month. Determine the minimum sales price zion sun chairs must sell each chair for to earn a monthly profit of $65,000, if the total monthly fixed costs are $17,363. 50 and the variable cost per chair is $52. 17.
Zion sun chairs manufactures 3,575 beach chairs each month. To obtain monthly profit of $65,000, the minimum sales price is $75.21 per unit chair.
The formula to calculate the profit is:
Profit = revenue from sales - total cost
revenue = sales price per unit x number of units sold
total cost = fixed cost + variable cost
variable cost = variable cost per unit x number of units produced
Parameters given:
number of units produced (sold) = 3,575
Profit = $65,000,
Fixed cost = $17,363.50
Variable cost per unit = $52.17
Hence,
variable cost = 52.17 x 3,575 = 186,507.75
total cost = 17,363.50 + 186,507.75 = 203,871.25
Profit = revenue - total cost
65,000, = revenue - 203,871.25
revenue = 203,871.25 + 65,000 = 268,871.25
sales price = 268,871.25 / 3,575 = 75.21
Hence, the minimum sales price for the chair is $75.21
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which of the following scenarios best describes an oligopolistic industry? a a college has one bookstore selling textbooks to students. b coca-cola and pepsi sell most of the soft drinks consumed around the world. c thousands of soybean farmers sell their output in a global commodities market. d hundreds of firms produce similar, but differentiated, types of shoes. e a single cable company serves customers in a small town.
The scenario best describes an oligopolistic industry as Coca-Cola and Pepsi sell most of the soft drinks consumed around the world. Thus the correct option is B.
What is the oligopolistic industry?Small numbers of suppliers control markets in an oligopoly. These markets are regarded as the opposition to other sectors or emerging industries. They stand particularly strongly behind their products and services in the marketplace.
The majority of soft drinks consumed on a regular basis around the world are sold by Coca-Cola and Pepsi, who fiercely compete in this oligopolistic market.
Therefore, option B is appropriate.
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which of the following is a reason to worry about government debt? future generations can help repay the debt. high and rising debt slows economic growth. the government never really needs to repay the debt. most of the debt is domestic debt.
The reason to worry about government debt is: b. high and rising debt slows economic growth.
What is government debt?
Government debt can be defined as the loan amount or debt amount that a country government borrowed from another nation or country. Government debt tend to occur in a situation where the accumulated budget deficits is higher than the accumulated budget surpluses.
A nation should tend to worry about government debt because high and rising debt can slow down economic growth or lead to decline in the economy growth of that nation.
Therefore the correct option is B.
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Why do many food processing companies package their food products in tamper resistant containers?
Many food processing companies package their food products in tamper resistant containers, it assures customers of the integrity of the product especially for pharma companies.
The tamper resistant containers refers to the packaging having an indicator or barrier to entry that could reasonably be expected to provide visible evidence that tampering had occurred.
The tamper resistant containers is designed to resist opening and access to the product within the container. In the one way, that organizations in the food and beverage industry as well as pharma companies, cosmetics and other industries.
These companies are making their product packages resistant to tampering is by using shrink film.
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gilliam industries records revenue of $6.4 million for an accounting period. in that same accounting period, they have a beginning balance of $392,000 and an ending balance of $439,000 in the accounts receivable account. how should the cash flows from operating activities be adjusted to account for these items? why? assume gilliam uses the indirect method.
If gilliam industries records revenue of $6.4 million for an accounting period. the cash flows from operating activities should be adjusted to account for these items by: Using the indirect method, Gilliam will have have to adjust for the change in Accounts Receivable, leading to $47,000 decrease in cash flows from operating activities.
How to find the change in account receivable?Using this formula to find the change in account receivable
Change in account receivable = Beginning balance - Ending balance
Change in account receivable = $392,000 − $439,000
Change in account receivable = -$47,000
When using the indirect method to calculate cash flow from operating activities, the net income amount have to be adjusted for operating items that tend to have effect on net income only.
Based on the information given Gilliam will have have to adjust for the change in Accounts Receivable, leading to $47,000 decrease in cash flows from operating activities.
Therefore the company will have have to adjust for the change in Accounts Receivable.
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based on the random walk theory, if a stock's price decreased last week, then this week the price: a. will continue last week's decline b. will stand still until new information is released c. has an equal chance of going either up or down d. will reverse last week's loss and go up
Based on the random walk theory, if a stock's price decreased last week, then this week the price of Option c. has an equal chance of going either up or down.
According to the random walk theory, a stock price or market's historical movement or trend cannot be utilized to forecast its future behavior. According to the random walk theory, taking on more risk would make it difficult to outperform the market.
According to the Random Walk Theory, the ideal course of action is to simply invest in a portfolio that mimics the entire universe of stocks because it is impossible for individuals to outperform market average performance over the long term.
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your package is moving within the usps network and is on track to be delivered to its final destination. it is currently in transit to the next facility.
True. The package that is still in transit is one that is still on its way to the place that it would be delivered to the consumer.
What does it mean for a package to be in transit?Your package is "in transit" if it is traveling to its destination. Your cargo may not actually be in a moving vehicle like a truck or an airplane.
"In transit" can refer to a shipment that has just left the pickup facility, is halfway between two hubs, or is already traveling to your location. In conclusion, if your package or order is "in transit," it simply implies that everything is on track for delivery and that you should get it shortly.
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your package is moving within the usps network and is on track to be delivered to its final destination. it is currently in transit to the next facility. True / False
you quit your job as a manager to start your own business. you gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000, agreeing to pay 5 percent interest per year. in your first year, you spent $18,000 to rent an office, hired a part-time assistant for $12,000 and paid another $15,000 on equipment. based on this information, what is the amount of your explicit costs? a) $45,000 b) $45,500 c) $47,000 d) $87,000
The research indicates that your explicit costs total $45,000.
Explicit cost: What is it?Explicit costs are typical operating expenses that are recorded in a company's general ledger and have a direct impact on its profitability. They flow through to the income statement as clearly defined dollar amounts. Explicit costs include things like salaries, rent, utilities, raw materials, and other direct expenses.
What distinguishes explicit costs from implicit costs in terms of importance?Explicit costs, as opposed to implicit costs, relate to actual payments made to third parties in exchange for their services. Contrarily, the term "implicit cost" is used to describe the cost of self-supplied manufacturing factors.
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susan, a management major, is taking an overload of classes this term. on a team project in one of her classes, one of her teammates sees how busy she is and does the final proofreading of the team project for her. susan is most likely feeling:
Susan, a management major, is taking an overload of classes this term. on a team project in one of her classes, one of her teammates sees how busy she is and does the final proofreading of the team project for her. susan is most likely feeling: gratitude
Gratitude is a valuable emotion that has many useful effects. However, there is a lack of research on gratitude in organizations. A model of gratitude that encompasses episodic gratitude at the event level, persistent gratitude at the individual level, and collective gratitude at the organizational level is the subject of this article. The outcomes of employee gratitude's emergence at the individual and organizational levels of analysis are then taken into consideration, as are the kinds of human resource initiatives that businesses can implement to foster it. Finally, we discuss the advantages of showing gratitude to employers and employees. As a result, we have a better understanding of how organizations express gratitude and how organizations can influence workplace emotions on multiple levels. According to Mueller (2012), organizations are frequently criticized as environments that foster egocentrism and selfishness. Vogel, 2006). This criticism seems to be reinforced by media coverage of financial scandals and corporate greed, with many observers lamenting employees' growing sense of entitlement (Twenge & Campbell, 2010). As a result, organizations face a variety of issues, including increased conflict, rudeness, deviance, and employee turnover (Fisk, 2010; Martinko and Harvey, 2009). At the same time, there is a hint of a new scenario. According to Cameron & Spreitzer (2012), some organizations cultivate gratitude and appreciation, thereby encouraging positive social behavior and high-quality relationships. Gratitude may play a significant role in these organizations.
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if the economy is currently in short-run equilibrium at point a, what type of monetary policy would be most effective to bring the economy back to long-run equilibrium?
Because producers are inflexible in the short term and unable to alter fast in response to market forces, they will gradually modify prices and wages.
By the time the economy reaches its potential GDP, wages, prices, and resource costs will have fully adjusted, moving the short-run supply curve to its long-term level. When total output and total demand are equal, this is referred to as short-run equilibrium. When prices respond to market changes and the economy is operating at its maximum potential, long-run equilibrium has been reached.
When the total amount of output required and supplied equals one another, an economy is in short-run equilibrium.
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when a shortage exists, customers sometimes artificially inflate their orders to protect themselves, only to cancel them later when the shortage is relieved is called
This phenomenon is known as order inflation.
It occurs when customers order more than they need in order to protect themselves from a potential future shortage.
This is because the customer fears that if they don't order enough, they won't be able to get the product when they need it.
When the shortage is relieved, the customer cancels the excess order, leaving the supplier with excess inventory and higher costs.
Price increases, or inflation, can be thought of as the gradual loss of purchasing power. The average price increase of a selection of products and services over time can serve as a proxy for the rate at which buying power declines.
A unit of currency effectively buys less as a result of the increase in pricing, which is sometimes stated as a percentage.
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when considering perfect competition, the absence of entry barriers implies that:_____.
Option d. Firms can enter and leave the industry without serious impediments is the correct answer. When considering perfect competition the absence of entry barriers implies that firms can enter and leave the industry without serious impediments.
The restrictions imposed on the firms to enter the market to sell their products are known as entry barriers. Entry barriers reduce the level of competition between the firms in the market.
Option d. Firms can enter and leave the industry without serious impediments is correct.
It is a correct option because when there are no entry barriers, the firms in that industry can enter the market anytime and they do not have to deal with any sort of impediments. Firms with no entry barriers are not restricted from entering the market.
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What is a major difference between banks and credit unions ?
Savings accounts and certificates of deposit are just a couple of the financial products that banks and credit unions both provide (CDs). The primary
distinction between the two is that credit unions are not-for-profit organizations that share their profits with their members, as opposed to banks, which are primarily for-profit businesses. Savings accounts and certificates of banks are often for-profit businesses. Credit unions frequently cater to a particular area or demographic.
Now let's discuss the benefits of credit unions. Banks have a national or regional base, whereas credit unions are based locally. This is crucial to take into account because credit unions provide more individualized customer care than banks and enable members to connect over similar interests such as employment and residence. The main goal of a credit union is to serve the requirements of its members. Credit unions are able to give their members lower fees.
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when the federal reserve increases the federal funds rate, how would it impact the economy?
When the federal reserve increases the federal funds rate, it could lead to an increase in unemployment, a recession and it would impact the economy.
The federal reserve's increase in the federal fund's target rate has resulted in making credit more expensive overall. Everyone ends up paying more in interest, since loans are more expensive for both firms and consumers when interest rates are higher.
When the federal funds rate is raised, the Fed sells bonds. By sending checks to the Federal Reserve, banks and nonbank buyers of these bonds can do so. Due to the fall in reserves, banks are compelled to cut back on lending to maintain the required reserve ratio. To maintain a strong economy, the Fed controls the nation's monetary policy and has an impact on the cost and availability of credit and money.
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decisions that are in the best interest of a division of the company, but not in the best interest of the company as a whole lead to a condition called
Decisions that are in the best interest of a division of the company, but not in the best interest of the company as a whole lead to a condition called suboptimization.
Suboptimization is a discounted stage of output that consequences from an inefficient or useless technique or gadget. Suboptimization can also arise from a focal point on optimizing a unit of a commercial enterprise in place of the outcomes of the whole business. An example of sub-optimization is in which a manufacturing unit schedules manufacturing to gain its value shape without regard to client. necessities or the impact on different business devices.
Optimizing the final results for a subsystem will in general not optimize the final results for the gadget as a whole. This intrinsic trouble may degenerate into the "tragedy of the commons": the exhaustion of shared assets due to opposition among the subsystems.
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which of the following shifts aggregate demand to the left? a. an increase in the price level b. a decrease in the money supply c. a decrease in the price level d. an increase in the money supply
An increase in the money supply shifts aggregate demand to the left. So, the correct answer is option d.
The correlation between price level and real GDP demand is known as aggregate demand, or AD. While variables affecting the components of GDP (consumption, investment, government expenditure, and net exports) will cause the AD curve to shift, a change in the price level will cause the AD curve to move. A move to the right denotes an increase, whereas a shift to the left denotes a reduction.
As the components of aggregate demand consumption spending, investment expenditure, government spending, and spending on exports minus imports increase, the aggregate demand curve, or AD curve, moves to the right. With the decline of these components, the AD curve will turn back to the left.
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the model of public relations that believes communication should be on-going so that both the client and the public can mutually adjust for the benefit of all involved is the:
The model of public relations that believes communication should be on-going so that both the client and the public can mutually adjust for the benefit of all involved is the Symmetrical Model.
What do you mean by the public relations?"Public relations is a strategic communication process that creates relationships between organizations and their publics that are beneficial to both parties."
In order to build a stronger brand reputation, public relations entails distributing the appropriate messages to the appropriate audience and target audience. PR firms assist their clients in achieving this goal and promoting them within their respective industries.
An inclusive, non-exploitative celebration of the client's customers is what good PR does. The term "public relations" is used. It is crucial to develop messages and marketing strategies that accomplish more than simply sell. Additionally, effective public relations welcomes criticism, especially from "neutrals," and adjusts tactics accordingly.
Therefore, the model of public relations that believes communication should be on-going so that both the client and the public can mutually adjust for the benefit of all involved is the Symmetrical Model.
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double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied to partnerships. true false
Double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied to partnerships.
The given statement is False.
What do you mean by double taxation?
Due to the fact that corporations must pay income taxes at a rate that is double that of partnerships, double taxation is a disadvantage to corporations. A corporation may deduct the cost of cash dividends as an expense.The following are a corporation's drawbacks:Income is taxed twice. Shareholders pay taxes a second time on dividends.To know more about Taxation here
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given your answer to question 13.04, what can you say about the social cost of production at that point, compared to the consumer’s marginal benefit? the social cost of production is ______________ than the consumer’s marginal benefit.
The social cost of production is Higher than the consumer’s marginal benefit.
When demand and supply are balanced, too much of the product is produced because marginal social cost outweighs marginal social gain.
A net social loss is produced because the marginal social cost is greater than the marginal social gain.
The maximum quantity of money a consumer will spend on an extra commodity or service is known as the marginal benefit.
As spending rises, customer contentment tends to decline. The difference in price caused by producing an extra unit of an item or service is known as the marginal cost.
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which of the following is true regarding a debenture bond?multiple choice question.it is secured by the issuer's long-term assets.it is secured by the faith and credit standing of the issuer.it is secured by an outside third party.
The correct statement for this question is: It is secured by the faith and credit standing of the issuer.
A debenture is a sort of debt instrument that isn't supported by any insurance and as a rule has a term more noteworthy than 10 years.
Debentures are supported exclusively by the creditworthiness and notoriety of the issuer.
The two companies and legislatures regularly issue debentures to raise capital or assets.
A few debentures can change over completely to equity shares while others can't.
Picture result for what is debenture bond
Organizations use debentures when they need to get the cash at a proper pace of revenue for its development. Secured and Unsecured, Enrolled and Carrier, Convertible and Non-Convertible, First and Second are four kinds of Debentures.
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is the level of capacity utilization that managers expect for the current budget period, which is typically one year. question 10 options: theoretical capacity normal capacity utilization practical capacity master-budget capacity utilization
Master-budget capacity utilization is the level of capacity utilization that managers expect for the current budget period, which is typically one year.
Master finances potential usage means the anticipated quantity of manufacturing a supervisor predicts over the time period of a budgetary period, that's commonly one year. Theoretical potential is the extent of a manufacturer's manufacturing that might be attained if all of its device and operations carried out constantly at their premiere efficiency.
Theoretical potential is likewise known as perfect potential. When potential usage is 100% constant charges can be unfolded over as many devices as feasible, which means that constant charges in step with unit are at their lowest feasible level. Capacity usage price measures the share of an organization's capability output this is without a doubt being realized. The potential usage price of a organization or a country wide financial system can be measured so one can offer perception into how nicely it's far attaining its capability.
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zelo, inc. stock has a beta of 1.23. the risk-free rate of return is 4.5% and the market rate of return is 10%. what is the amount of the risk premium on zelo stock
The risk premium on the zelo stock is 6.765%.
According to the capital asset pricing model (CAPM), the risk premium on a stock is calculated as:
stock risk premium = stock beta * market risk premium
stock risk premium = 1.23 * (10% - 4.5%)
stock risk premium = 6.765%.
The needed return on an asset is calculated using the capital asset pricing model as the product of the risk free rate and the asset's risk premium. The beta parameter of an asset serves as a summary of its market risk, and the asset's risk premium is the product of its beta and market risk premium. The relationship between systemic risk, or the general dangers of investing, and expected return for assets, particularly equities, is described by the Capital Asset Pricing Model (CAPM).
A linear link between the needed return on an investment and risk is established by this financial model. The relationship between an asset's beta, the risk-free rate (usually the interest rate on Treasury bills), and the equity risk premium, or the projected return on the market less the risk-free rate, serves as the foundation for the model.In order to quantify this systematic risk, CAPM was developed. It is frequently used in the financial industry to value hazardous securities and calculate projected returns for assets given their risk and cost of capital.
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Who benefits the most from taxes?
The benefits of taxation are shared among both individuals and government entities.
Individuals benefit from taxes in a variety of ways, including the provision of public services that are funded through taxation. These services—such as roads, schools, police, fire departments, and other public infrastructure—are essential to the functioning of a healthy society, and are funded largely through taxes.
Taxation also helps to fund government programs that provide subsidies for education and health care, as well as Social Security, Medicare, and other social safety net programs that help to protect vulnerable individuals from poverty and hardship.
On the other hand, governments benefit from taxes in a few key ways. The most obvious is that taxation provides governments with the revenue they need to fund public services and programs. Taxation also helps governments to manage the economy. Taxation also helps governments to distribute the burden of paying for public services and programs more equitably, as those with higher incomes are taxed at a higher rate than those with lower incomes.
In conclusion, both individuals and governments benefit from taxation. Individuals benefit from the provision of public services and programs funded through taxes, while governments benefit from the revenue generated through taxation and the ability to influence economic activity.
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irawaddy company, a retailer, had cost of goods sold of $230,000 last year. the beginning inventory balance was $45,000 and the ending inventory balance was $47,000. the company's average sale period was closest to:
The company's average sale period was closest to Inventory velocity period by the help of cost of goods sold to average inventory i.e. 72 Days.
What is cost of goods sold?The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution.
Calculating Inventory Turnover ratio or Inventory velocity period, cost of goods sold play important role, this can be understand in the following manner (assuming 360 days operating days in a year):
a) Inventory Turnover ratio is a reciprocal of Velocity period, which is near to average sales period:
b) Velocity period = (Average Inventory ÷ Cost of Goods sold)× 360 Days
= [{($45000+$47000)÷2} ÷ $230,000]×360 days
= 72 Days
Cost of goods sold = $230,000the beginning inventory balance was $45,000the ending inventory balance was $47,000Thus the company's average sale period was closest to inventory velocity period 72 days.
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wireless solutions reports operating expenses of $865,000. operating expenses include both rent expense and salaries expense. prepaid rent increases during the year by $18,000 and salaries payable increases by $14,000. what is the cash paid for operating expenses during the year? (list cash outflows and any decrease in cash as negative amounts.)
Wireless solutions records operating expenses in its cash flow during the year as $869,000.
From the case, we know that Wireless solution has:
Operating expene = $865,000
Increase in prepaid rent = $18,000
Increase in salaries payable = $14,000
In cash flow, every activities that produce money should be recorded as positive amounts and called as cash inflow. Meanwhile any activities that spend and use cash will be recorded in negative amounts and called as cash outflow.
Now let's define the relationship of each increase scenario with cash flow.
Prepaid rent is a form of prepairds expenses. Prepaid expenses are paid ahead of time and being amortized over the time period of benefit. Any increase in prepaid expense means that the current amortization should be greater than the previous expected expense. Any decrease in prepaid expense refers to the lower amortization for the prepaid account than the expected amount. Hence, the increase of prepaid rent will generate more cash outflow.
Liabilities are cash that a company owes to a lender or any third parties to finance the assets or expenses. An increase in liability account means the more available cash to be allocated to another areas. A decrease in liabilities means that the liabilities are paid with cash by the company.
In this case, an increase in salaries payable means that the company holds some cash originally prepaid to pay its emlployees' salaries. It shows an cash inflow movement.
From the explanation above, we could calculate the total operating expense of Wireless solution.
Please note that any cash outflow will be recorded as negative amounts and we are using expenses' perspective.
Total operating expense = Operating expense + increase in prepaid rent - increase in salaries payable
Total operating expense = $(865,000) + $(18,000) - $14,000
Total operating expense = $(869,000) --> cash outflow
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needs to raise $60 million and wants to issue 15-year zero-coupon bonds for this purpose. assume the required return on the bond issue will be 4.8% the tax rate is 21%. the par value of each bond is $1000. how many bonds would the company need to issue to raise the money it requires
In this case, the business needs to issue 121217 Bonds to raise $60 million.
Nike needs to raise $60 million
Par value = $1000 (FV)
Time = 15 years (n0
Return = 4.8% (r)
The bond value is calculated by using the present value formula i.e
P.V = F.V * 1 / (1+r)ⁿ
F.V = $1000
n = 15
r = 4.8%
Bond value = $1000 * [1/(1+4.8%)¹⁵]
Bond Value = $1000 * [1/2.0203]
Bond value = $ 494.98
Calculation on the number of bonds that need to be issued
Number of Bonds = Amount to be raised / Bond value
No. of bonds = 60,000,000/494.98
Number of Bonds = 121217.012 ≅ 121217
Here the company needs to issue 121217 Bonds to raise the amount of $60 million.
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a piece of newly purchased industrial equipment costs $990,000 and is classified as seven-year property under macrs (macrs schedule). calculate the annual depreciation allowances and end-of-the-year book values for this equipment.
With straight line method, the annual depreciation is $141,286.
Ending Book Values are:
$848,714 $707,428 $566,142 $424,856 $283,570 $142,284 $1,000MACRS is the name of the tax depreciation plan used in the US. Modified Accelerated Cost Recovery System is known as MACRS. According to MACRS, fixed assets are categorized into a certain asset class with a predetermined depreciation period. A comprehensive collection of depreciation tables for each of these classes has been made available by the Internal Revenue Service. 7-year property, 7-year depreciation period Any property not specifically listed in another class, office furniture and fittings, agricultural machinery and equipment, natural gas gathering lines. The fact that MACRS Depreciation was created to expedite the identification of depreciation expense for tax reasons is one of its advantages. Businesses are encouraged to invest in more capital assets since doing this enables them to record less taxable income in the short term.
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how does an increase in the price level affect the quantity of real gdp supplied in the long run?
In the long run, changes in the price level have no impact on GDP, but an increase in the price level increases the amount provided to real GDP.
Now, According to the question:
In the long run, shifts in price levels have little impact on the aggregate supply curve. This is so that the amount delivered does not, over time, depend on variations in the price level. When the money pay rate remains constant but the price level rises, the real wage rate declines and employment grows. The amount of real GDP that is supplied rises. When the money wage rate remains unchanged and the price level declines the real wage rate increases and employment declines. The amount of real GDP that is supplied falls. Real GDP and the price level will ultimately revert to their previous values notwithstanding an initial period of lower prices and greater real GDP. Inflation is the term used to describe when prices increase. Deflation is the term for when prices decrease. The relationship between pricing and customer purchasing power is also present. In general, the buying power of money decreases as price levels rise.
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