How would I go about solving question one?

MOSS COMPANY Selected Balance Sheet Information December 31, 2018 and 2017 2018 2017 Current assets Cash $ 90,650 $ 32,800 Accou

Andru [333]

Answer:

$65,250

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $5,000

Adjustment made:

Add : Depreciation expense $48,000

Add: Decrease in accounts receivable $13,000 ($31,000 - $44,000)

Less: Increase in inventory -$10,700 ($66,000 - $55,300)

Add: Increase in accounts payable $10,700 ($42,400 - $31,700)

Less: Decrease in income tax payable-$750 ($2,650 - $3,400)

Total of Adjustments $60,250

Net Cash flow from Operating activities $65,250

8 0

3 years ago

A major airline sells an aggressively low priced ticket compared to a new low-fare airline, which is trying to enter the market.

ankoles [38]

Answer:

The correct option is is A, predatory pricing

Explanation:

Predatory pricing is an illegal approach to pricing where a firm fixes a very low price in order to send competitors out of business.

This is very applicable to a firm that has economies of scale where its cost per unit reduces as more and more units are produced, making it possible to undercut competitors without feeling much impact in profitability.

This approach is against the anti-trust law as it paves for a monopoly market,where only one firm operating in the market determines the price which is not likely to be favorable to consumers

8 0

3 years ago

Read 2 more answers

Who do you think has the least<br> influence? Why?

tatuchka [14]

Answer:

good stuff

Explanation:

people these days (including me sometimes) put more energy into bad things and negative things .and its partly social media's fault.

3 0

2 years ago

What do you mean by Producer's Equilibrium ?????

Alika [10]

Answer:

it is refered to as profit maximization condition

6 0

2 years ago

Read 2 more answers

The classical dichotomy is useful for analyzing the economy because in the long run nominal variables are heavily influenced by

Contact [7]

Answer:

The answer is: True

Explanation:

First of all, the classical dichotomy in economics assumes that real variables of the economy such as output of goods and services and real interest rates are not influenced by what happens to their nominal counterparts, such as the monetary value of output and nominal interest rate. It doesn´t consider inflation or the nominal supply, in other words money supply is neutral in the economy (because its value is adjusted to inflation).

The real problem with this theory, at least in the short run, is that in real life money supply, interest rates and inflation do affect the GDP of a country. When the money supply of an economy is increased then aggregate demand also increases. More money equals more demand. That happens because the prices of goods and services doesn´t adjust as fast as a change in the money supply. Also this theory doesn´t consider the monetary circuit theory about money being "created" by the banking system every time a loan is made.

7 0

3 years ago