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3 years ago

(1) Real-Balances Effect

Business

1 answer:

ozzi3 years ago

4 0

Answer:

(A) 5 and 10.

Explanation:

Factor which can shift the Investment spending:

(5) Profit Expectations

If the firm forecast a good economy will probably invest more than if it forecast a bad economy. businessman will increase and decrease their investment based on expepectations.

(10) Degree of Excess Capacity

Assuming a rational behavior, company's will investment if needed. So if there is a portion of unsued capital they will use it before investing to acquire more. Once the current capital is used or near max capacity they will invest. Below a certain threshold they won't.

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At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The

Zepler [3.9K]

Answer:

The multiple choices are:

a. $200 Million

b. $50 Million

c. $1.4 Billion

d. $100 Million

The correct option is A,$200 million

Explanation:

The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:

Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities

increase in cash in the year=$325+($500-$100)-$600=$125 million

cash at the end of the year=$125 +$75=$200 million

6 0

3 years ago

Sheffield Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs

frosja888 [35]

Answer:

1. the net income if selling price increased by 10% would be = $59,700

Net income increased by $31,500.

Explanation:

Given,

Sales = $315,000

Variable costs = $216,000

Fixed costs = $70,800

No. of units = 5,000

Sheffield Company

Income Statement (Contribution Margin Format)

Particulars $

Sales 315,000

Less: Variable expenses (216,000)

Contribution Margin 99,000

Less: Fixed costs (70,800)

Net Income 28,200

Since the selling price increased by 10% and no change in variable costs and volume, therefore, we can get -

Sales = $315,000 x (1 + 0.10) = $346,500

In this case, the net income will be as follows:

Sales = $346,500

Less: Variable Costs = (216,000)

Contribution Margin = 130,500

Less: Fixed Costs = (70,800)

Net Income = 59,700

5 0

3 years ago

Assuming that periodic inventory records are kept, the ending inventory on a LIFO basis is Group of answer choices $16,440. $17,

Troyanec [42]

Answer:

$16,440.

Explanation:

Please find attached the data used in answering this question

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

the ending inventory would consist of earlier purchased goods

total sales is 20800

total purchases = 26,000

ending inventory = 26,000 - 20800 = 5200

this price of the ending inventory = 3200 x 3.2) + (2000 x 3.1) = $16,440.

7 0

2 years ago

The Blue Utilities Company paid Sue $2,000 for the right to lay an underground electric cable across her property anytime in the

Reil [10]

Answer:

Explanation:

Sue is not required to recognize gross income from the receipt of the funds, but she must reduce her cost basis in the land by $2000.-

8 0

3 years ago

One e-commerce distribution and logistics expert advises that outsourcing to a fulfillment company only makes good financial sen

puteri [66]

Answer: fund

Explanation:

Outsourcing simply has to do with when a particular company hires an outside company to help with a particular job function which was originally done by the hiring company.

It should be noted that this will only make financial sense if the entrepreneur has sufficient funds than the time. In a scenario, wherby there's no fund available, then the company should be able to do whatever it wants to do itself.

3 0

2 years ago