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barxatty [35]
3 years ago
8

You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento

ry of $8000, an increase in Accounts payable of $2500, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is: Group of answer choices
a. $45,500
b. 10500c. 6500d. 5500
Business
1 answer:
scoray [572]3 years ago
6 0

Answer:

The answer is: D) $5,500

Explanation:

To calculate the change in working capital we use the following formula:

Change in working capital = change in current assets - change in current liabilities

Since we don't know the current assets or liabilities from previous years, we can consider them to be 0.

Change in working capital = current assets - current liabilities

Change in working capital = $8,000 (inventory) - $2,500 (accounts payable)

Change in working capital = $5,500

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What is the full form of BIPPA​
Flauer [41]

Answer: Bilateral Investment Promotion and Protection Agreement.

Explanation:

4 0
3 years ago
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are
mafiozo [28]

Answer:

The answer is "205,241"

Explanation:

Its relative value operation:

                                                         Smooth skin        Seedling Skin           Total

A Unit sold                                            240000        \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     110000

selling price per unit                           \$ \ 3.10   \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \               \$ \ 5.10            

Sales value                                 \$ \ 744,000  \ \ \ \ \ \ \ \ \ \ \ \$ \ 561,000 \ \ \ \ \ \ \ \ \ \ \  \$ \ 1,305,000

Join its cost allocate(360000 \times \frac{sales\ value}{1305000}) 205,241 \ \ \ \ \ \     154,759  \ \ \ \ \ \    360,000

Smooth Skin is assigned the combined costs within each development process by way of the relative cost process                                        205,241

3 0
3 years ago
When buyers use ___________________ to draw inferences about the quality of products, then markets may have trouble reaching ___
bagirrra123 [75]

Answer:

Market price; Equilibrium price

Explanation:

The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect. It become hard to reach equilibrium price and quantity when customers infer the quality of a product by its price cos that will inform their purchasing decision.

7 0
3 years ago
Santiago company incurs annual fixed costs of $66,000. variable costs for santiago's product are $34 per unit, and the sales pri
babunello [35]

Answer: 6250

Explanation:

From the question, we are informed that Santiago company incurs annual fixed costs of $66,000. variable costs for santiago's product are $34 per unit, and the sales price is $50 per unit. santiago desires to earn an annual profit of $34,000.

The contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit for thus:

Contribution margin ratio = (Sales price - Variable cost)/Sales price

= (50-34)/50

= 16/50

= 0.32

Sales = (66,000 + 34,000)/0.32

= 100,000/0.32

= 312,500

Sales volume in units will be sales divided by price. This will be:

= 312,500/50

= 6250

6 0
3 years ago
Pharoah Company reported net income of $1.30 million in 2022. Depreciation for the year was $208,000, accounts receivable decrea
Jet001 [13]

Answer:

Net cash flow from operating activities

$1,599,000

Explanation:

Pharoah Company

Cash flow from operating activities :

Net income $1,300,000

Net Cash flow from operating activities:

Add depreciation $208,000

Add accounts receivable decreased $455,000

Less accounts payable decreased ($364,000)

Net cash flow from operating activities $1,599,000

7 0
3 years ago
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