Because investors can eliminate unsystematic risk "for free" by diversifying their portfolios, they _______

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During Jun

Lyrx [107]

Answer:

Please see below the computation for Assets = Liabilities + Equity.

Explanation:

(+) Cash $61,000

(-) Capital $61,000

(+) Equipment $22,000

(-) Common Stock $22,000

(+) Rent Expense $1,200

(-) Cash $1,200

(+) Equipment $13,000

(-) Accounts Payable $13,000

(+) Cash $2,300

(-) Services $2,300

(+) Accounts Receivables $8,000

(-) Services $8,000

(+) Equipment $6,200

(-) Cash $6,200

(+) Wages Expense $2,400

(-) Cash $2,400

(+) Cash $4,300

(-) Account Receivable $4,300

(+) Accounts Payable $13,000

(-) Cash $13,000

(+) Dividends $1,200

(-) Cash $1,200

Net Profit = Revenue - Expenses

Net Profit = $10,300 - $3,600

Net Profit = $6,700

Assets = Total Liabilities + Shareholders' Equity

Cash + Accounts Receivables + Equipment = Accounts Payable + Capital + Retained Earning + Common Stock - Dividends

$43,600 + $3,700 + $41,200 = $0 + $61,000 + $6,700 + 22,000 - $1,200

$88,500 = $88,500

6 0

3 years ago

Ibuddy CEO Dave Taylor thinks that price skimming would be the best pricing strategy when launching the product. The marketing m

Zigmanuir [339]

Answer: skimming price once product is out.

product is lets say a phone called the Ibuddy X pro series.

as its a phone the price will be high so with time e.g years the price lower to a suitable price e.g starting price £250 over the course of 5 year drops to £146. therefor the best statagy is skimming the price.

hope this is very helpful

3 0

4 years ago

What effect does the entry of new firms have on the economic profits of existing firms? When new firms enter a monopolistically

Ronch [10]

Answer:

decrease and demand curve will shift to the left.

Explanation:

When new firms enter a monopolistically competitive market, the economic profits of existing firms will decrease. This is because, new firms enter an existing market if they spot a profit opportunity . The entry of these new firms will therefore increase the quantity of products or services supplied in the market which gives consumers more choices and substitutes. As a result, the demand curve of the existing firms will also shift to the left. because their

7 0

4 years ago

A company had net income of $930,000 in 2016. Depreciation expense is $104,000. During the year, Accounts Receivable and Invento

enyata [817]

Answer:Cash provided by operating activities= $818,000

Explanation:

Cash Flow from operating activities is the amount of cash generated from the inflows and outflows of the business activities in a company.

Cash Flow from operating activities in 2016

Net income $930,000

Add

Depreciation $104,000

Loss on sale of equipment $ 12,000

Prepaid expenses decrease $ 8,000

Deduct

Accounts receivable increase -$ 60,000

Inventory increase -$160,000

Accounts payable decrease -$16,000

Cash provided by operating activities $818,000

4 0

3 years ago

What is the amount of cash April Wood Products received from customers during the reporting period if its sales were $42.5 milli

Lera25 [3.4K]

Answer:

<u>$38.5 million</u>

Explanation:

Since the April Wood incoming transactions-accounts receivable increased by 4 million we obtain the cash value by substracting the question total accounts receivable value from the sales.

Where;

sales= $42.5 million

accounts receivable increase= $4 million

Amount of cash April Wood Products received from customers during the reporting period=

$42.5 million - $4 million= $38.5 million

7 0

3 years ago

Because investors can eliminate unsystematic risk​ "for free" by diversifying their​ portfolios, they​ ________.

Because investors can eliminate unsystematic risk "for free" by diversifying their portfolios, they ________.