Answer:
Answer in this case will be 39 months
Explanation:
In given data estimated negative cash flow from operation is (155,000), this is assumed that there will not be any cash flow from investing or financing activities.
data given for accounts receivable and inventory is irrelevant since both are part of operating cash flow which is already estimated.
there for closing balance at the end of year is $ 500000 divided by negative cash flow of (150,000) equals to months company will able to continue without positive cash flow or additional financing.
Answer:
Explanation:
Purchase discount = $4000 * 2% = $80
Date Accounts title Debit Credit
Dec-15 Accounts Payable $4,000
Purchase Discounts $80
Cash $3,920
(To record payment within discount term of 10 days)
Answer:
The correct answer is option C.
Explanation:
A drought adversely affects the production of crops causing the supply of agricultural products to decline. Because of the decline in supply, the supply curve for agricultural products will shift to the left. This implies that at any given price, a quantity lower than earlier will be supplied.
Good weather, on the other hand, positively affects the production of crops. This causes supply to increase. As a result, the supply curve will shift to the right, implying, an increase in the quantity supplied at each price level.
