1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Simora [160]
3 years ago
8

The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption

can be relaxed when we use the forecasted financial statement method. Three conditions where constant ratios cannot be assumed are economies of scale, lumpy assets, and excess capacity.A. TrueB. False
Business
1 answer:
Vera_Pavlovna [14]3 years ago
8 0

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during  the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions  can not be used in raising funds or additional funds that are needed by the industry in its expansion.

You might be interested in
Creating and distributing __________ is one of the most widespread types of cyber crime.
stealth61 [152]
<span>Creating and distributing computer viruses is one of the most widespread types of cyber crime. Computer </span>viruses attack many computers today and they are happening all over the world. Because they are so easily accessible to attack and most do not protect their computers it makes them one of the most widespread types of cyber crime. 
4 0
3 years ago
1)If an interest rate is fixed that means the rate
Bad White [126]
Number 1 is B
number 2 is C

7 0
3 years ago
Read 2 more answers
The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $3,600; Equipment,
Galina-37 [17]

Answer:

Explanation:

The preparation of the post-closing trial balance is presented below:

                                        Hilltoppers Corporation

                                     Post-closing trial balance

Particulars                                      Debit                        Credit  

Service revenue                                                               $14,600  

Cash                                               $3,600

Accounts Payable                                                           $1,600

Utilities expense                            $2,600

Salaries expense                           $9,600

Equipment                                      $15,600

Common stock                                                                 $12,000

Retained earnings                                                            $4,400

Dividend                                         $1,200                                    

Total                                               $32,600                     $32,600

4 0
2 years ago
Which mission area includes restoring health and social services networks and returning economic and business activities to a he
Bezzdna [24]

Answer:

The correct answer is letter "A": recovery.

Explanation:

The U.S. Federal Emergency Aid (<em>FEMA</em>) is an agency that aims to provide the necessary support needed in front of major events and natural disasters. The FEMA has five (5) mission areas: <em>prevention, protection, mitigation, response, </em>and <em>recovery</em>. FEMA's recovery mission is to put back on track communities affected by incidents. FEMA's core capabilities include planning,  health and social services, infrastructure systems and economic recovery.

8 0
3 years ago
"What is Al’s total revenue? 3 pts) B. What are Al’s explicit costs? In numbers (3 pts) C. What is his accounting profit? In Num
erik [133]

Answer:

A. $1,020,000

B.$680,000

C.$340,000

D.$95,000

E.$245,000

Explanation:

A. Calculation for Jon’s total revenues

Using this formula

Jon's total revenue = Amount of fees per person × Number of persons

Let plug in the formula

Jon's total revenue = $1,200 × 850

Jon's total revenue=$1,020,000

B. Calculation for Jon’s explicit costs

Using this formula

Explicit costs = Amount of money that goes for instructors, maintenance, equipment,insurance, depreciation ×Number of persons

Let plug in the formula

Explicit costs= $800 ×850

Explicit costs =$680,000

C. Calculation for the his accounting profit

Using this formula

Accounting profit = Amount of Revenue - Explicit costs

Let plug in the formula

Accounting profit= $1,020,000 - $680,000 Accounting profit=$340,000

D. Calculation to List 2 in numbers 2 implicit costs that Jon has not included

Based on the information given we were told that he is foregoing an amount of $92,000 as wage and 1.5% interest on his amount of $200,000 which is a corporate bonds to start the business.

Hence

Jon total opportunity costs = $92,000 + (1.5%×$200,000)

Jon total opportunity costs = $92,000 +$3,000 Jon total opportunity costs=$95,000.

E. Calculation for Jon’s pure economic profit (or loss) in numbers

Using this formula

Economic profit = Accounting profit - opportunity costs

Let plug in the formula

Economic profit = $340,000-$95,000

Economic profit = $245,000

8 0
3 years ago
Other questions:
  • The Norton group, a manufacturer of toiletries and cleaning products, uses the name SpakleX, for most of its products in all of
    6·1 answer
  • Knox Inc. is deciding between the two dividend payment plans below: Year Plan A Plan B 1$3.00$0.50 2$3.05$1.75 3$3.10$3.25 4$3.1
    12·1 answer
  • Select all the items that describe the role of a producer. a) You want to charge a price that earns profits. b) You want to char
    8·1 answer
  • An area where companies can locate free of certain local, state, and federal taxes and restrictions is _____.
    7·2 answers
  • Starbucks focuses on making coffee. By ________, they are faster, more consistent, and their production costs are lower than McD
    15·2 answers
  • At August 31, Kingbird, Inc. has a cash balance per books of $8,320 and the following additional data from the bank statement: c
    14·1 answer
  • how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​
    13·1 answer
  • Why might someone decide to lease a home?
    15·1 answer
  • A. decide tenure of the loan
    5·2 answers
  • Khalil works in the gig economy, making deliveries for local stores and restaurants. He's trying to save money so he can go back
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!