Answer:
Net Income - Cash basis = $10000
Net Income - Accrual basis = $19500
Explanation:
The cash basis of accounting accounts for transactions that occured in cash in the period when cash changes hand. This means that transactions are recorded when the cash is paid or received rather than to the period to which they actually relate to.
Cash basis net income will be,
Net Income = 37000 - 20250 - 6750
Net Income - Cash basis = $10000
The accrual basis of accounting follows that the transactions should be recorded in the period to which they relate to rather then when the cash is paid out or received.
Accrual basis Net income will be,
Net Income - Accrual basis = 45000 - 25500
Net Income - Accrual basis = $19500
<span>An elasticity of 2 means that a 1% increase in price will cause a 2% decrease in demand.
Change in price in % = (20 - 16) / 20 * 100 = 4/20 * 100 = 20%. So there's a 20% decrease in price (from $20 to $16)
A 20% decrease in price will result in a 40% increase in demand since elasticity equals 2.
So 40/ 100 * 190, 000 = 76, 000
Hence since there's an increase in demand the people will make 190, 000 + 76, 000 = 266, 000</span>
Buying an established business means immediate cash flow. The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors. You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
Buying a business is generally considered less risky than starting your own business, especially if you can buy a well-managed, profitable business for the right price. Consider these advantages:
The difficult start-up work has already been done. The business should have plans and procedures in place.
Buying an established business means immediate cash flow.
The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
A market for your product or service is already established.
Existing employees and managers will have experience they can share.
Answer:
As the question was not complete. I have attached the complete question in the attachment. Please refer to attachment.
Explanation:
<em>By using, LD = 95- 3w and w1 = 7.25 and w2 = 9. We get,
</em>
<em>LD1 = 95-3(7.25) = 73.25
</em>
<em>LD2 = 95-3(9) = 68
</em>
Elasticity = Change in labor demand/ change in wage rate = ((68- 73.25)/ 73.25)/ ((9-7.25/7.25)) = -0.33
The 11 percent change in the wage rate causes, 33% change in labor demanded, as shown by the elasticity, the labor demand decreases with increase in wage rate.
