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4 years ago

The graph shows the percentage changes in the investment rate and the gross domestic product (GDP) between 2008 and 2012.

Business

1 answer:

Leni [432]4 years ago

4 0

Answer:

The graph following these guidelines:

A graph titled Percentage changes in investment rate and G D P has year on the x-axis, from 2008 to 2012, and percentage changed on the y-axis from negative 20 to positive 10 percent, in increments of 5. Both the lines representing investment rate and G D P follow the same trend.

Demonstrates thatchanges in investment

can show if the economy is growing or shrinking.

Explanation:

This graph is a very illustrative one that marks the increment of both the investment rate and the GDP. Establishing a correlation between them means that one is dependant from the other and that the movement in one can create a specific movement in the other. Generally, investment boosts GDP. Now we can use this to deduct growth or decrease in the economy.

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A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

denis-greek [22]

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1) $170,000

Cash flow from operating activities

Depreciation expense $25,000

Increase in account receivable $(20,000)

Increase in inventory $(10,000)

decrease in Prepaid Expenses $25,000

Decrease in Accounts Payable $(20,000)

Increase in Deferred Revenue $30,000

Net cash flow from operating activities $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.

3 0

3 years ago

An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Wellman Corp.

RUDIKE [14]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the dividend and interest is received is recorded in this activity.

The loss and gain on sale of the assets is also recorded and amortization on intangible asset is also recorded

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

(1) Exchange of land for patent - Non-cash investing and financing activity as it does not involve any cash transaction

(2) Sale of building at book value - Investing activity

(3) Payment of dividends - Financing activity

(4) Depreciation - Operating activity

(5) Receipt of dividends on investment in stock - Operating activity

(6) Receipt of interest on notes receivable - Operating activity

(7) Issuance of capital stock - Financing activity

(8) Amortization of patent - Operating activity

(9) Issuance of bonds for land - Non-cash investing and financing activity as it does not involve any cash transaction

(10) Purchase of land - Investing activity

(11) Conversion of bonds into common stock - Non-cash investing and financing activity as it does not involve any cash transaction

(12) Loss on sale of land - Operating activity

(13) Retirement of bonds - Financing activity

7 0

4 years ago

Riley Company paid $60,000 cash to purchase land from Smally Company. Smally originally paid $60,000 for the land. A) Was this e

Veseljchak [2.6K]

Answer:

A. Asset exchange transaction

B. Asset exchange transaction

C. Investing activity

D. Investing activity.

Explanation:

In the question, the Riley company paid cash to Smally company, and the Smally company paid the amount for the land.

So,

A. For Riley company, it is an asset exchange transaction as the asset exchanges between Riley and Smally company.

B. For Smally company it is an asset exchange transaction as the asset are the exchange between Riley and Smally company.

C. Investing activity. As the Riley company deals in the purchase and the sale of the fixed assets.

D. Investing activity. As the company deals in the purchase and the sale of the fixed assets.

4 0

3 years ago

ompany X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likel

ArbitrLikvidat [17]

Answer: The newly created firms is able to take advantage of economies of scale.

Explanation:

A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.

One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.

4 0

3 years ago

What are levels of production?

Vinil7 [7]

Answer:

first one

Explanation:

4 0

3 years ago

Read 2 more answers