Answer:
PPF : Downward Sloping Straight Line
Explanation:
PPF is the locus of product combinations that an economy can produce, given resources & technology.
It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.
Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.
∆ Good sacrifised / ∆ Good gained
If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line
Eg : Good1 Good2 MOC [∆Good2/∆Good1]
0 20 _
10 10 -10/10 = -1 (10-20)/(10-0)
20 0 -10/10 = -1 (0-10)(/20-10)
So , same (1) good 2 is sacrifised to attain a good 1 each time.
However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.
Answer:
Cash flow :
For Case A = $27,450
Case B = $14,000
Case C = $25,000
Explanation:
As per the data given in the question,
Case A Case B Case C
Cash collected from customers $712,000 $555,000 $97,500
Cash payment to suppliers -$40,000 -$25,500 -$65,200
Cash payment for operating expense -$3,750 -$16,000 -$7,300
Net cash provided by operating activities $27,450 $14,000 $25,000
Where,
Cash received from customers = Net sales + dec. in account receivable - inc. in accounts receivable
Cash paid to suppliers = COG sold + inc. in inventory + dec. in accounts payable - dec. in inventory - inc. in accounts payable
Cash paid for operating expense = operating expense - Depreciation + inc. in prepaid expense + dec. in accrued expenses payable - inc. in accounts payable - inc. in accrued expenses payable
Answer:
The correct answer is C
Explanation:
The bad debt expense is the expense which is related to the current asset accounts receivable of the company. It is also recognized as the uncollectible accounts expense, which could not collected by the company in the near future.
It result when the company delivered the goods and services on credit and the customer did not paid the amount owed.
So, computing the bad debt expense as:
Bad debt expense = Estimated doubtful account - Credit balance of Allowance for doubtful accounts
= $3,600 - $600
= $3,000
ebts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense. Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed.
Answer:
B. Compared to the first economist, the second economist must be assuming either a larger induced increase in consumption, a smaller crowding out effect, or both.
Explanation:
Answer:
C) Cash payment of an account payable
We know that the current ratio is greater than 1, and in the formula for current ratio the assets are in the numerator and liabilities in the denominator, in this case an asset is increasing for the same account that a liability is decreasing by. So whenever the the value is above one and the numerator and denominator are decreased by the same amount the value increases.
Explanation:
