Question Completion:
A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement
B)Decrease Net Cash from Operations on the Cash Flow Statement
C)Increase Net Cash from Operations on the Cash Flow Statement
D)Just impact the balance sheet
Answer:
C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income. In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects. So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.
Answer:
B) $26.30
Explanation:
To determine an investor's valuation of the stock we must calculate the present value of next year's dividend and selling price:
present value = [dividend / (1 + rate)] + [selling price / (1 + rate)]
present value = [$0.24 / (1 + 15%)] + [$30 / (1 + 15%)] = $0.21 + $26.09 = $26.30
Question: The demand function for widgets is given by D(P) = 16 − 2P. Compute the change inconsumer surplus when price of a widget increases for $1 to $3. Illustrate your result graphically
Answer:
For price of a widget equal to $1 consumer surplus is
D(1) = 16 - 2(1) = 14
CS₁ = ½ × (8 – 1) × D(1) = ½ × 7 × 14 = 49.
When price is equal to $3 consumer surplus is
D(3) = 16 - 2(3) = 10
CS₃ = ½ × (8 – 3) × D(3) = ½ × 5 × 10 = 25
Answer:
Yes, agree, business transactions are economic transactions. Two reasons why:
- Profit motive: economic transactions have a profit motive: they are carried out and agreed upon between the two parties, because the parties feel that they will be better off after the transaction is completed. Business transactions are based on the profit motive.
- Things of value: goods and/or services, are exchanged between the parties. In business transactions, either a good (for example, an asset), or a service (for example, employees), is always exchanged.
One of the major reasons to keep at least $100 in your checking account is to actually cover for unexpected expenses, and also to avoid bank charges or fees for either an overdraft or a returned unpaid transactions.
It could also come handy if you get stuck somewhere, or if you need to take a taxi after having dinner with your new date, and your debit/credit card is on $0.00, this could save you the ultimate embarrassment by just transfering money from checking to your savings account.
