Answer:
d. inventory is sold at a profit
Explanation:
Net working capital increases when <u>inventory is sold at a profit</u>
Net working capital = Current Assets - Current Liabilities
. Cash, Inventory and receivables are part of current assets
Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact
Answer:
a-1. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is not deductible?
a-2. Given the answer in a-1 above, by how much is Nitai better or worse off?
- If Natia works during the weekend, he will have $42 more than if he repairs his car.
Explanation:
additional revenue generated by working on weekend = $525 x (1 - 12%) = $462
cost of repairing the car at Autofix = $420
net benefit of working during the weekend = additional revenue - cost of repairing the car at Autofix = $462 - $420 = $42
Answer:
Explanation:
The risk premium two years back = 11.5 - 8.7 = 2.8 %
current risk premium = 2.8/2 = 1.4%
Current risk free bond yields 7.8 %
So Rolling Coast expected rate of interest on bonds = 7.8 + 1.4
= 9.2 %
Answer: marketing is beneficial to customers because they can receive lower price they can receive new and improved products and it is also beneficial to the business because it allows businesses to maintain long-lasting and ever-present relationships with their audience
Answer:
B) The multiplier falls, making spending less powerful.
Explanation:
As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.
Also,
MPS + MPC = 1
And,
Multiplier = 1 ÷ (1 - MPC)
or
= 1 ÷ MPS
In addition to this, MPS has the negative relationship with the multiplier
that means if the MPS increased then the multiplier decreased and vice versa
Therefore the option B is correct
