The correct answer is negative cash flow.
When a company has a situation where their revenue is less than their operating expenses they have a negative cash flow. This is normally indicative that a company is not doing well and may need to make changes in order to become profitable.
Answer:
17
Explanation:
I believe this, but I don't really know. Sorry.
The true statement out of all is
B) Georgeland has both an absolute and a comparative advantage in producing clothing.
Explanation:
This is because Absolute advantage is when one firm or a producer is able to produce more of a product using less resources or less time or more of the product in the same resources or same time as the other.
Comparative advantage is found out at the added bonus of having the product be as viable as it is advantageous which means that the producer could also be making another product and would have the advantage in that too so either one of them is equally profitable.
Answer:
The answer is $53,699
Explanation:
Discount = 2%
Discount days = 15 days
Net days = 40 days
Gross purchase is $800,000 per year
Discount on the purchase is $16,000(2% of $800,000)
Therefore net purchase is $784,000($800,000 - $16,000).
Net per day is:
Net purchase ÷ 365 days
$784,000 ÷ 365 days
= $2,147.95
Total trade credit = Net per day x Net days
$2,147.95 x 40 days = $85,918
Free credit = Net per day ×Discount days
=$2,147.95 x 15= $32,219
Therefore, Costly trade credit = Total credit −Free credit
$85,918 - $32,219
= $53,699
Answer:
$281.67
Explanation:
Data provided in the question:
Current selling price of large TV = $380
Cost of Large TV = $310
Selling price of new TV = $340
Increase in sales = 20% = 0.20
Current sales = $150,000
Now,
Expected sales after reducing the price = Current sales + Increase in sales
= 150,000 + ( 0.20 × 150,000 )
= 150,000 + 30,000
= 180,000
Target Operating income = ( $380 - $310 ) × current sales
= $70 × 150,000
= $10,500,000
New operating cost per unit
= Target Operating income ÷ Expected sales after reducing the price
= $10,500,000 ÷ 180,000
or
New operating cost per unit = $58.33
Target Cost
= Price after reduction - New operating cost per unit
= $340 - $58.33
= $281.67
