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PilotLPTM [1.2K]
3 years ago
6

An investor believes that interest rates will be flat or falling into the future; and that prices may deflate. The MOST appropri

ate investment is:________A. Long term U.S. Government bondsB. Real estateC. GoldD. Large Capitalization stocks
Business
1 answer:
ale4655 [162]3 years ago
3 0

Answer:

A. Long term U.S. Government bonds

Explanation:

A. Long term U.S. Government bonds

For this case that's the best option since by a general rule when we have a deflation the interest rates tend to decrease. Usually the long term investments have fixed rates and fixed payments that can be accumulated over the time.

B. Real estate

Not a good option since when we have deflation the real state prices tend to decrease as the good and services in order to mantain the sales.

C. Gold

No possible when we have deflation all the prices of good and services tend to decrease and the gold is an example of this. So is not a good option to invest.

D. Large Capitalization stocks

When we have stocks and we have a deflation we will have a depreciation of the stocks since the companies due to the deflation need to cut the prices to mantain the sales and make profits. So this one is not a good option for this case.

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A company had net income of $245,130. Depreciation expense was $20,107. During the year, accounts receivable and inventory incre
harkovskaia [24]

Answer:

$222,664

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.

The net cash flow from operating activities

= $245,130 + $20,107 -  $14,733 - $29,685 + $3,608 - $5,431 + $3,668

= $222,664

6 0
4 years ago
Which of the following best describes costs assigned to the product under the absorption costing method?
____ [38]

Answer:

a) Direct labor (DL)

b) Direct materials (DM)

d) Variable manufacturing overhead (VOH)

f) Fixed manufacturing overhead (FOH)

Explanation:

Absorption costing method allocates to a product the direct costs: direct labor used in the production process, and the direct raw materials that were transformed into the product, and also allocates the two types of manufacturing overhead: variable and fixed.

7 0
3 years ago
You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and a 7% annual coupon. The bond has a c
Andreas93 [3]

Answer:

The coupon value is 1000 × 7%  = $70

Face Value is $1000

Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54

Maturity period: 12 years

YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent

Explanation:

The coupon value is 1000 × 7%  = $70

Face Value is $1000

Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54

Maturity period: 12 years

YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent

4 0
3 years ago
Cuántas articulaciones tienen los dedos de una mano<br>​
Leto [7]

Answer:

14 si no estoy mal creo que es 14

8 0
3 years ago
Guiness Inc. has a budgeted production of 8,000 units. Each unit requires 40 minutes of direct labor work to complete. The direc
Alex Ar [27]

<u>Solution and Explanation:</u>

The budgeted cost of the direct labor for the month is calcuated as follows:

the given data:

Budgeted production is = 8000 units, time required of direct labor work in order to complete the production is = 40 minutes, the direct labor rate as given in the question is = $100 per hour.

Budgeted cost = time multply with rate of labor multiply with budgeted production

(40/60 multiply with 100) multiply with 8000 = 533,333.33

therefore, the budgeted cost = $533333.33 ( rounded of to 2 places).

6 0
3 years ago
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