Answer:
a. increase price in the short run but not in the long run.
Explanation:
A perfectly competitive market is one in which firms in an economy produce similar goods, and use resources that are limited in quantity.
An increase in demand will result in a corresponding increase in price, and results in firms making high profits. In the diagram below it results in a shift of demand from D1 to D2.
In the long run as firms have low barrier to entry more firms enter the market and supply shifts from S1 to S2. There is reduction in prices and profits start to fall. This is illustrated in the second diagram.
Answer: c. may be used to settle an accounts receivable.
Explanation: A promissory note is defined as a financial instrument that contains a written promise by the note issuer or maker to pay the note payee a definite sum of money at a specific future date or on demand and may be used to settle an accounts receivable (the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers and are listed on the balance sheet as a current asset). They are commonly used in businesses as a form of short term financing as they can be exchanged for cash at a future time when account receivables have been collected.
Answer:
$14,500
Explanation:
The size of Ginny's taxable capital gain = $64,500 - $50,000 = $14,500
Note: Capital gains tax is a tax on the profit realized on the sale of a non-inventory asset.
Answer:
b. Prestopino had negative net income in the current year
Explanation:
Retained earnings at the end of previous year were $700,000, but retained earnings at the end of current year had declined to $320,000.
• The company does not pay dividends.
• The company's depreciation expense is its only non-cash expense; it has no amortization charges.
• The company has no non-cash revenues.
• The company's net cash flow (NCF) for current year was $150,000.
On the basis of this information, which of the following statements is CORRECT? Prestopino had negative net income in the current year
Prestopino DECPRECIATION expense in the current year was less than $150,000 and Prestopino had postive net income in the currnet year however, this income was less than it was in the previous year income.
Prestopino NCF in the current year must be higher than its NCF in the previous year and it cash on the balance at the end of the year must be lower than the cash it had on the balance sheet at the end of previous year
Answer:
Manson will incur a loss of $10,300 by buying the part.
Explanation:
Purchases = 10,300 * $6 = $61,800
Variable cost = 10,300 * $5 = $51,500
Fixed cost = 10,300 * $3 = $30,900
Analysis:
<u>Details Make ($) Buy ($) Net ($)
</u>
Purchase 0 61,800 61,800
Variable 51,500 0 51,500
Fixed 30,900 30,900 <u> 0 </u>
Loss <u> 10,300 </u>
Therefore, Manson will incur a loss of $10,300 by buying the part.
