Paying a graphic designer to create a logo.
Answer:
The correct answer is letter "B": Increased price elasticity of demand for the DVD player industry because XBOX are substitutes.
Explanation:
Price elasticity of demand reflects the changes in quantity demanded for a good or service as a result of changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1) the demand is elastic.<em> It means a minimum change in price has a major impact on the quantity demanded volume.
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Thus, <em>if XBOX implements DVD features, DVD players will face an increase in their price elasticity of demand because changing DVD players' prices could change their quantity demanded by far because consumers will prefer purchasing an XBOX which is a substitute.</em>
Answer:
Net Cash Flows from operating activities is $68.5 million.
Explanation:
The indirect Method would be used here because all we will find the cash expenses and revenues that were converted into within the year and are reported in the income statement by calculating the increase and decrease in the current assets and current liabilities. Here we will also eliminate the non cash expense effects by adding them back.
The net cash flows from operating activities can be calculated using the following method:
Millions
1. Net Income 65
<u>Add Non Cash Deductions</u>
2. Depreciation 5.5
3. Loss on sale of Equipment 1.5
<u>Add / (Less) the increase or </u>
<u>decrease in current Assets or </u>
<u>liabilities</u>
4. Increase in Trade Receivables (2.5)
5. Increase in Trade Payables 3.5
6. Increase in inventory <u> (4.5) </u>
Net Cash Flows from operating activities $68.5
Stock A: $2,100, 13%
Stock B: $3,200 17%
Stock A-> 2100 x .13 = 273
Stock B -> 3200 x .17 = 544
Add
273 + 544 = 817
Expected return is $817
