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4 years ago

If you are a buyer with a buyer value of $6.50, would you be willing to buy a book for $6.25?

Business

1 answer:

Yuliya22 [10]4 years ago

6 0

Answer: Yes, we will be willing to buy it for $6.25.

Explanation: Willingness to pay for a good measures the maximum amount the consumer is ready to pay for a good or service. If the price for a good is less than the willingness to pay then the consumer will buy the good. If the price is more than the willingness to pay then they will not buy the goo.

In this case, the buyer's willingness to pay is $6.50, so if price of a book is $6.25 the buyer will buy it and get a surplus of,

$$6.50 - $6.25= $0.25$

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, is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a

sergiy2304 [10]

Answer:

Blossom Automotive have long-term debt of $174,321.

Explanation:

This can be estimated using the following accounting equation:

Total Assets = Shareholders' equity + Total liabilities ............... (1)

Where;

Total Assets = cash balance + inventory + goodwill and other assets + net plant and equipment + accounts receivable + other current assets = $23,015 + $214,500 + $78,656 + $714,100 + $141,258 + $11,223 = $1,182,752

Shareholders' equity = common stock + retained earnings = $311,900 + $512,159 = $824,059

Short-term liabilities = accounts payable + short-term notes payable = $163,257 + $21,115 = $184,372

Total liabilities = Short-term liabilities + long-term debt = $184,372 + long-term debt

Substituting the relevant values into equation (1) and solve for long-term debt, we have:

$1,182,752 = $824,059 + $184,372 + long-term debt

long-term debt = $1,182,752 - $824,059 - $184,372

long-term debt = $174,321

Therefore, Blossom Automotive have long-term debt of $174,321.

7 0

3 years ago

A _____ is a document that outlines specific information about your proposed business, including product, location, and marketin

grandymaker [24]

Well it is not letting me answer this without putting 20 characters so this is my answer B

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3 years ago

Read 2 more answers

All else constant, explain why the present value decreases as the discount rate increases.

CaHeK987 [17]

A rise in the discount rate cuts the present value factor and the present value. This is for the reason that a higher interest rate means you would have to set a smaller amount aside today to earn a specified amount in the future. A decrease in the time period increases the present value factor and increases the present value. In other words, when you earn more interest, you can capitalize less money today to have the same amount at a given point in the future.

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3 years ago

When the operating activities section of the statement of cash flows is reported using the direct method: Multiple Choice Footno

sp2606 [1]

Answer:

Operating cash receipts minus operating cash payments equals net cash provided (used by) operating activities.

Explanation:

A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.

The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;

1. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.

2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments, etc.

3. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods, etc.

In Financial accounting, the direct method of reporting operating cash flows uses actual cash inflows and outflows from the operating activities of a company by generating data from the income statement (cash receipts and cash disbursements/payments).

Hence, when the operating activities section of the statement of cash flows is reported using the direct method; operating cash receipts minus operating cash payments (disbursements) equals net cash provided, that is typically used by operating activities.

4 0

3 years ago

Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank account to cover college exp

Natalka [10]

Answer:

PV= $40,835.6

Explanation:

Giving the following information:

Quarterly withdrawal (A)= $2,700

Number of periods= 4*4= 16 quarters

Interest rate= 0.67% per quarter

To calculate the initial investment, we need to use the following formula:

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

PV= 2,700*{(1/0.0067) - 1 / [0.0067*(1.0067)^16]

PV= $40,835.6

5 0

3 years ago