A debtor<span> is someone who owes a financial obligation (a “debt”) to another, known as the </span>creditor<span>. An example of a </span>debtor-creditor relationship<span> is where a bank lends money to an individual or company, on the basis that the money has to be paid back at some point to the bank</span>
First, we will calculate the net trade balance:
net trade balance = exports - imports = $5 billion - $16 billion = $-11 billions
Then, we will decide whether this is trade deficit or trade surplus. A trade surplus is when the value of exports is more than that of imports while a trade deficit is when value of imports is more.
From the mentioned values, it is clear that the US suffered from a trade deficit this year.
Value of trade deficit = $11 billion.
Given:
Current ratio: 2.65
acid test ratio: 2.01
current liabilities: $45,000
Current ratio = current asset / current liabilities
2.65 = current assets / 45,000
2.65 * 45,000 = current assets
119,250 = current assets
Acid test ratio = (current assets - stocks) / current liabilities
2.01 = (current assets - stocks) / 45,000
2.01 * 45,000 = current assets - stocks
90,450 = current assets - stocks
119,250 - 90,450 = 28,800 is the dollar amount of merchandise inventory.
Step 1) Make the equation describing the situation:
y = 0.045 x + 250
Where x is the sales and y is his total earning.
if,
y = 500 (total earning)
then,
500 = 0.045 x + 250
500 - 250 = 0.045 x
250 = 0.045 x
x = 250/0.045
x = $5,555.55
The total value of his sales should be $5,555 to earn a total of $500.
<span>Consumers are willing to purchase a product up to the point where the marginal benefit of consuming a product is equal to its price.
</span>The term marginal benefit denotes the<span> benefit to a consumer receives from consuming one more unit of a good or service.
</span><span>On the other hand, marginal cost is the additional cost to a firm of producing one more unit of a good or service.</span>
