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Sonja [21]
3 years ago
12

Purchasing a new cd upon maturity of the current cd is commonly referred to as:

Business
1 answer:
Helen [10]3 years ago
7 0
Purchasing a new CD upon maturity of the current CD is commonly referred to as: rolling over. The term rollover in economics describe the <span>reinvesting funds from a mature security into a </span>new issue<span> of the same or a similar security. In this case the money is reinvested in the buying the same product because the old one is mature, </span><span>
</span>
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During the year, Belyk Paving Co. had sales of $2,560,000. Cost of goods sold, administrative and selling expenses, and deprecia
scoundrel [369]

Answer:

Net income -$268,000

Operating Cash Flow $511,000

Explanation:

A. Calculation for the Net income

INCOME STATEMENT

Sales $2,560,000

Cost of goods sold $1,364,000

Other expenses $685,000

Depreciation $477,000

EBIT $34,000

Interest $302,000

Taxable income -$ 268,000

($34,000-$302,000)

Taxes (24%) 0

Net income -$268,000

CALCULATION FOR EBIT

Sales $2,560,000

LESS:Cost of goods sold ($1,364,000)

Other expenses ($685,000)

Depreciation ($477,000)

EBIT $34,000

Based on the information given we were told that we should ignore any tax loss which was why Taxes (24%) was $0

The taxes are zero since we are ignoring any carryback or carryforward provisions.

Therefore NET INCOME is -$268,000

B. Calculation for operating cash flow

Using this formula

Operating Cash Flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating Cash Flow= $34,000 + $477,000 - 0

Operating Cash Flow = $511,000

Therefore Operating Cash Flow is $511,000

3 0
3 years ago
According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net
lidiya [134]

Answer:

The answer is Y = C + I + G + NX

Explanation:

National income can be represented as: Y = C + I + G + NX

where Y is the national income

C is the consumers' consumption or households' expenses on goods and services

I is the firms' investment. Investment done by businesses on procuring non-current assets used in production

G is the government expenditure.

NX is the net export. Net export is the difference between the total value of export and total value of import in a year.

6 0
3 years ago
. What do you understand by term “advertising”. What would happen if ethical advertisement is not followed by businesses? Explai
Blababa [14]

Answer:

Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And advertising means a mode of communication between a seller and a buyer.

Thus ethics in advertising means a set of well defined principles which govern the ways of communication taking place between the seller and the buyer. Ethics is the most important feature of the advertising industry. Though there are many benefits of advertising but then there are some points which don’t match the ethical norms of advertising.

An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency.

Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like the advertisers lack knowledge of ethical norms and principles. They just don’t understand and are unable to decide what is correct and what is wrong.

The main area of interest for advertisers is to increase their sales, gain more and more customers, and increase the demand for the product by presenting a well decorated, puffed and colorful ad. They claim that their product is the best, having unique qualities than the competitors, more cost effective, and more beneficial. But most of these ads are found to be false, misleading customers and unethical. The best example of these types of ads is the one which shows evening snacks for the kids, they use coloring and gluing to make the product look glossy and attractive to the consumers who are watching the ads on television and convince them to buy the product without giving a second thought.

<em>Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the product. For e.g. a sanitary napkin ad which shows that when the napkin was dropped in a river by some girls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical. </em>

Ethics also depends on what we believe. If the advertisers make the ads on the belief that the customers will understand, persuade them to think, and then act on their ads, then this will lead to positive results and the ad may not be called unethical. But at the same time, if advertisers believe that they can fool their customers by showing any impractical things like just clicking fingers will make your home or office fully furnished or just buying a lottery ticket will make you a millionaire, then this is not going to work out for them and will be called as unethical.

Recently, the Vetican issued an article which says ads should follow three moral principles - Truthfulness, Social Responsibility and Upholding Human Dignity.

Generally, big companies never lie as they have to prove their points to various ad regulating bodies. Truth is always said but not completely. Sometimes its better not to reveal the whole truth in the ad but at times truth has to be shown for betterment.

Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that the advertisers show what the medicine can cure but never talk about the side effects of that same thing or the risks involved in intake of it.

Children - children are the major sellers of the ads and the product. They have the power to convince the buyers. But when advertisers are using children in their ad, they should remember not to show them alone doing there work on their own like brushing teeth, playing with toys, or infants holding their own milk bottles as everyone knows that no one will leave their kids unattended while doing all these activities. So showing parents also involved in all activities or things being advertised will be more logical.

Alcohol - till today, there hasn’t come any liquor ad which shows anyone drinking the original liquor. They use mineral water and sodas in their advertisements with their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are totally banned. Even if there are no advertisements for alcohol, people will continue drinking.

Cigarettes and Tobacco - these products should be never advertised as consumption of these things is directly and badly responsible for cancer and other severe health issues. These as are already banned in countries like India, Norway, Thailand, Finland and Singapore.

Ads for social causes - these types of ads are ethical and are accepted by the people. But ads like condoms and contraceptive pills should be limited, as these are sometimes unethical, and are more likely to loose morality and decency at places where there is no educational knowledge about all these products.

(that is same question on my papers)

7 0
3 years ago
Which two of the three financial statements would you find Net Income on?
xxTIMURxx [149]

Answer:

C) Income Statement and Cash Flow Statement

Explanation:

The Income Statement shows a clear separate entry for the Net income which is calculated after all the deductions and additions.

Net Income is the first balance shown on the cash flow statement after which the calculations are carried out to find the flow of cash in and out of the company.

Net income is also shown in the Balance Sheet but not separately but together with retained earnings. It is added to the retained earnings and the amount is shown as a whole amount of retained earnings  or shown as a change in equity.

So best answer is C because the question asked is where would you find Net Income on?

Meaning separately. So it is separately present on Income Statement and Cash Flow Statement.

Otherwise it is present  on all three statements ( on balance sheet as part of retained earnings or equity).

6 0
3 years ago
A decision-maker faces the following decision under conditions of uncertainty. This decision-maker has $1 million in assets. Mos
denis-greek [22]

A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.

C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.

  • The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below

\rm Net\ earnings= claim\ received - premium\ of\ policy

\rm Net\ earnings= 750000-40000

We get,

\rm Net\ earnings= 710000

  • If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that <u>risk cannot be taken.</u>

  • In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.

Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.

To know more about insurance policy , click the link below.

brainly.com/question/24984403

6 0
2 years ago
Read 2 more answers
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