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barxatty [35]
2 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]2 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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According to the Census Bureau, in October 2016, the average house price in the United States was $27,258. 6 years earlier, the
krek1111 [17]

Answer:

Annual increase is $1,108.4

Explanation:

In 2016, average price was $27,258.6

In 2010, average price was $20,608

Average increase in 6 years = $27,258.6 - $20,608 = $6,650.6

Annual average increase = $6650.6/6 = $1,108.4

5 0
3 years ago
A company has the following account balances: Sales revenue $2,000,000: Sales Returns and Allowances $250,000: Sales Discounts $
Naily [24]

Answer:

0.25 or 25%

Explanation:

The computation of the gross profit rate is shown below:

Gross profit rate = Gross profit ÷ Net sales revenue

where,

Net sales revenue = Sales revenue - Sales Returns and Allowances - Sales Discounts

= $2,000,000 - $250,000 - $50,000

= $1,700,000

And, the Cost of goods sold is $1,275,000

So, the gross profit is

= $1,700,000 - $1,275,000

= $425,000

So, the gross profit rate is

= $425,000 ÷ $1,700,000

= 0.25 or 25%

6 0
3 years ago
Suppose that the production of a good generates a negative impact upon third parties. If the market does NOT take these negative
Lelu [443]

Answer:

The price will decrease and the quantity of the product sold will increase.

Explanation:

The price quoted would be lower because the social costs are not part of the cost of the product. This would increase the demand of the product because financially it is more beneficial and the price demand relation says that when the price of the good decreases the demand of the product increases and vice versa. So this means that the company will earn more but the society will have to bear the cost of the negative impacts.

6 0
3 years ago
Read 2 more answers
The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending
aleksandr82 [10.1K]

Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

Learn more about Cost of Raw Materials Purchased on:

brainly.com/question/24258358

#SPJ4

7 0
1 year ago
What is the basic strategy or strategies a marketing manager can choose in determining​ price?
cupoosta [38]
I think it would be better if you provided some options to choose. But I think, I know the answer. I think it's one of practice innovative strategies.
4 0
3 years ago
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