Answer:
Total Assets=$18,170 Networth=Assets-Liabilites=$15,855
Total Liabilties=$2,315 Cash Outflows =$3,925
Cash Inflows=$0
Explanation:
Total Assets
Checking Account 450.00
Savings Account 1,890.00
Automobile 7,800.00
Loan payment (80.00)
Household Possession 3,400.00
Stereo Equipment 2,350.00
Computer 1,500.00
Stock Investment 860.00
18,170.00
Total Liabilties
Loan 2,160.00
Credit balance 235.00
Loan payment (80.00)
2,315.00
Networth=$18,170-$2.315=$15,855
Cash Outflows
Rent 650.00
Salaries 1,950.00
Food 450.00
telephone 65.00
Insurance 230.00
Electricity 90.00
Lunch/Parking 180.00
Donation 70.00
Purchase 110.00
Restaurant Spending 130.00
3,925.00
Cash Inflows=$0
Answer:
a. Relevant
Explanation:
The documentary on prime time television that brought awareness to Cook Inc... being defendant in several lawsuits relating to it's defective tyres that has caused vehicles to overturn is a financial information that is relevant.
As a financial analyst, being presented with such information is very relevant and it makes me to consider it as a factor before issuing loan to the organization and also help to garner what the public'e perception of the company stock will be. In addition, the information will help to make predictions about future directions of the company's stock price and, evaluate the company's financial health and earnings potential to be able to pay back the loan if given the loan.
Answer:
Menu Costs
Explanation:
From the question we are informed about Gilberto who manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This case is an example of the of Menu Costs inflation.
In domain of economics, menu cost can be regarded as the cost to a firm that results due to changing its prices. When there is high inflation, firms needs to often make a change to their prices ,so they can keep up with economy-wide changes. The name arised out of the cost of a printing new menus of a restaurants , but it is used by economists when they are generally referring to the costs of changing nominal prices
.
Answer: True
Explanation: In simple words, real risk free rate refers to the rate than a borrower can actually get in the market for a specified amount and for a specified period.
Real risk free rate is seen as a measure of how the economy of a country is performing and is calculated by subtracting the inflation rate from the treasury bonds of the govt. which match the durability of the borrower.
It depicts the actual increase in purchasing power as it deducts the impact of inflation over time. Thus, the given statement is true.
Answer:
For Jerry, the opportunity cost of building a fence is not making 2 dishes.
Explanation:
The opportunity cost refers to the benefit you lose when you choose one option over another one. In this case, the opportunity cost for Jerry when he decides to build fences is that he won't be able to make dishes. So, as he can build 7 fences or make 14 dishes in a day, the opportunity cost of building a fence is that he won't be able to make 2 dishes.
