Answer:
appreciates and buys more Chinese goods
Explanation:
Nominal exchange rate is the rate at which one unit of currency can be exchanged for another unit of currency.
If exchange rate is 1 dollar for 6 Chinese yuan , it means that 1 dollar would buy 6 Chinese yuan.
If exchange rate now becomes 1 dollar for 7 Chinese yuan , it means that 1 dollar would buy 7 Chinese yuan.
One dollar is now buying more Chinese yaun (7>6). It means that the dollar has appreciated and the Yaun has depreciated.
Currency appreciation is when the a currency increases in value.
As a result the dollar would buy more Chinese goods.
I hope my answer helps you
The answer to this question is: <span>additional costs and benefits.
</span><span> is an examination of the additional benefits that received from doing an activity compared to the cost that must be incurred in order to do that activity.
</span>This analysis will help companies to determine what operations that they should maintain in the future in order to keep the profit margin of the company.
Answer:
See below
Explanation:
1. The net cash after-tax cash flow effect of the preceding information of using the indirect method.
First, we need to calculate the pretax income.
Pretax income = Sales - Expenses other than depreciation - depreciation expense
Pretax income = $260 - $140 - $50 = $70
Also,
Tax expense = 35% × pretax income $70 = $24.5
Therefore, the indirect method would be;
Pretax income
$70
Less:
Tax expense
($24.5)
After tax income
$45.5
Add:
Depreciation expense
$50
After-tax cash flow
$95.5
Direct method
After tax cash operating income
[($260 - $140 - $50) × (1 - tax rate 35%)]
$45.5
Add :
Depreciation expense
$50
After tax cash flow
$95.5
Answer:
Corporate Control and Agency Problems
For instance, Mr. Jones has a business in Mexico and hires professional managers, but he cannot be there to control their actions always. There are lots of agency problems because of the conflict of interests that is prevalent and the inexistence of goal congruence.
His corporate managers are his agents, as the stockholder. However, most times, these managers do not run the businesses they are entrusted with fiduciary duties in the best interests of Mr. Jones or the principals who appointed them to the positions. They carry out their own agendas and try to satisfy their selfish interests.
Explanation:
Is there any wonder Mr. Jones' business in Mexico is exposed to agency problems? The managers who are your agents will never, at all times, protect your interests in the business. They try as much as possible to satisfy their own interests. Where there is no goal congruence, managers will always expose their principals to agency problems. To curtail these problems, Mr. Jones and the other stockholders must devise means to align the interests of the managers with those of the stockholders. One of the ways of achieving this is through stock compensation and the limitation of compensation in cash.
Cost of goods sold can be calculated by adding the cost of goods manufactuted and the beginning inventory less the ending inventory.Thus,we will use the formula
Cost of goods sold =cost manufactured +beginning inventory-endong inventory
Substitute the values,we will get
Cost of goods sold =$600000+$70000-$85000
=$585,000
The Cost of goods sold is d.$585,000
