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3 years ago

Stimpleton Company engages in the following cash payments:

Business

1 answer:

choli [55]3 years ago

4 0

Answer: Option A

Explanation: Operating activities refers to those activities which are directly related to the core operations of the business. Such transactions are important for running the business and recorded at the top in cash flow statements.

Thus, only payment of rent and workers salary will be considered operating activities and the company will be having total of $1750 of cash outflow.

Hence the correct option is A.

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Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increas

evablogger [386]

Answer:

The level of saving = $450 billion - $400 billion= $50 billion

Marginal propensity to save = 1- marginal propensity to consume (MPC)=0.5

Expected consumption

MPC= change in Consumption/ change in income 200 billion * 0.5 = $100billion

Therefore consumption = 100 billion + 400 billion = $500 billion

Saving = $650 billion - $500 billion= $ 150 billion

Explanation:

4 0

3 years ago

Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal o

Korvikt [17]

Answer:

For retaining of Old Machine Equipment

Price of old equipment 3 yrs ago = $130,000

O & M cost per year = $35,000

Using the Cash flow approach

End of year Cash flow 1 Old equipment

0 $0 Initial Cash flow

1 -$35,000 O & M cost per year

2 -$35,000 O & M cost per year

3 -$35,000 O & M cost per year

4 -$35,000 O & M cost per year

5 -$35,000 O & M cost per year

Hence, Annual worth = Initial cash flow + Annual cost

Annual worth = 0 - $35,000

Annual worth = -$35,000

For buying of new equipment

Cost of buying new crane = $150,000

Market value of old crane = $40,000

Time = 5 years

O & M cost per year = $8,000

Salvage value = $55,000

MARR = 20%

Using the Cash flow approach

End of year Cash flow 1 New equipment

0 $110,000 -$150,000 + $40,000

1 -$8,000 O & M cost per year

2 -$8,000 O & M cost per year

3 -$8,000 O & M cost per year

4 -$8,000 O & M cost per year

5 $47,000 -$8,000 + $55,000

Annual worth = Initial cash flow + Annual cost + Salvage value

Annual worth = -$110,000(A/P 20%,5) - $8,000 + $55,000(A/P 20%,5)

Annual worth = -$110,000*(0.334) - $8,000 + $55,000*(0.134)

Annual worth = -$36,781.77 - $8,000 + $7,390.88

Annual worth = -$37,908.88

Conclusion: We should retain the old machine as it is more favorable than purchase of new equipment

5 0

3 years ago

Review the transactions listed below for thyme advertising company, and classify each transaction as either an operating activit

soldi70 [24.7K]

Answers:

1. Financing Activity

2. Operating Activity

3. Operating Activity

4. Non Cash Activity

5. Financing Activity

6. Non Cash Activity

7. Operating Activity

8. Investing Activity

9. Non Cash Activity

What to remember:

Operating activities are the kinds of activities the company accomplishes to generate profits. This includes cash out flows and inflows.

Investing activities contain the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities (stocks and bonds of companies other than Thyme).

Financing activities are borrowing money, issuing shares of stock, and paying dividends.

5 0

3 years ago

Fyodor, a manager of the research and development team of an organization, challenges his subordinates to "think outside the box

nexus9112 [7]

Answer: mental models.

Explanation: A mental model is an explanation of someone's thought process about how something works in the real world and learning a new mental model gives you a new way to see the world. Furthermore, It’s represent the surrounding world, the relationships between its several parts and an individual intuitive perception about his or her own acts and their consequences.

4 0

3 years ago

The following are the stages of both consumer and organization purchase decisions. Place each stage in the most typical order of

777dan777 [17]

Answer:

Problem Recognition.

Information Search.

Evaluation of Alternatives.

Purchase Decision.

Purchase.

Post-Purchase Evaluation

Explanation:

1. Problem Recognition: This relates to the existence and realization of the need gap between what they have and what they want.

2. Information Search: This is the next stage where the consumer begins to search for how to close the need gap.

3. Evaluation of Alternatives: After searching for available information on potential way(s) to meet the existing need, the product of the search could reveal numerous alternatives from which a choice will be made after thorough evaluation

Purchase Decision: This is the point where the choice is made from the available alternatives to buy one or not to buy any at all.

Purchase: After the decision, the purchase is made

Post-Purchase Evaluation: After a purchase decision, it is imperative that the customer gives feedback on whether or not they are satisfied with the decision that was made or not, to buy the product.

3 0

3 years ago