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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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The newest version of a product like Crutchfield headphones is likely to use _____, while the new version of Monster Energy is l
PolarNik [594]

The newest version of a product like Crutchfield headphones is likely to use price skimming, while the new version of Monster Energy is likely to use  penetration pricing

<h3>What is  price skimming?</h3>

Price skimming is a pricing strategy that a company can use when launching a new product or service.

Electronic products, such as the Apple iPhone, frequently use a price-cutting strategy during the initial launch period. Then, after competitors launch competing products, such as the Samsung Galaxy, the price of the product drops to maintain the product's competitive advantage.

The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. Skimming is commonly used when a product is new to the market (in its introduction or growth phase) and has few competitors.

To know more about  price skimming follow the link:

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3 0
1 year ago
Pharma One’s analgesic drug KleenKare has a 50% share in the analgesics market in the country of Syria. Its closest competitor,
elixir [45]

Answer:

Pharma One

The statement that indicates that KleenKare is a cash cow according to the the Boston Consulting Group (BCG) matrix is:

2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.

Explanation:

A cash cow depicts the BCG matrix quadrant where there are higher returns, high market share in a low-growth market.  The cash cow requires little investment to generate high returns.  It also provides the cash for financing the other quadrants (dogs, stars, and question marks).  Basically, the BCG matrix, also known as the Growth/Share Matrix, depicts the products' growth opportunities.

4 0
3 years ago
Which of the following costs do not vary with the amount of output a firm produces? a. average fixed costs b. fixed costs and av
Harrizon [31]

Answer:

d. fixed costs

Explanation:

The fixed cost is the cost which does not change if there is a change in the level of production i.e if the production level is increased or decreased it the fixed cost would remain the same as it is previous before

Therefore according to the given situation, since the fixed does not vary with the amount of firm output

Hence, option d is correct

4 0
3 years ago
There can be many departments or just a few when _____ a business.
Cerrena [4.2K]

Answer:

it depends on the business

Explanation:

when the business is small there will be less department but if the business is big then there will be more department

4 0
2 years ago
Read 2 more answers
Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000
rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes  - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% =         (900,000)  Required Return

                                        1,875,000 Economic Value Added

4 0
3 years ago
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