Answer: Decrease
Explanation:
According to the Law of Demand, The quantity demanded for purchase of a commodity inversely varies with the price.
That is to say that "ceteris paribus" ( with everything being equal),When the prices of a particular good go higher, people will buy less of such commodity but will buy more, if the prices of the goods reduces.
We can say demand is elastic if quantity demanded for a commodity decreases with increase in price which will make people choose another lower substitute good eg, detergent, ice cream
Also if quantity demanded does not change much with increase in price , then it is referred to as Inelastic Demand for example necessity commodity such as gasoline.
Decrease the supply of credit ...
Answer:
- 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations.
Accounts Rec T-Account
$ 306.673 Debit
$ 290.750 Credit
$ 7.059 Credit
$ 8.864 Debit Balance
Allowance for Doubtful Accounts T-Account
$ 7.059 Debit
$ 4.775 Credit
$ 2.284 Debit Balance
- 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.
$ 4.775 Dr Bad Debt Expense
- 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.
$ 2.284 Dr (Debit) Allowance for Uncollectible Accounts
$ 8.864 Dr (Debit) Accounts Receivable
Explanation:
Dr Accounts Receivable $ 306.673
Cash $ 290.750
Cr Accounts Receivable $ 290.750
Dr Allowance for Uncollectible Accounts $ 7.059
Cr Accounts Receivable $ 7.059
- Bad debt expense adjustment
Dr Bad Debt Expense $ 4.775
Cr Allowance for Uncollectible Accounts $ 4.775
- 1-b. Complete the amounts related to Accounts Receivable and
Bad Debt Expense that would be reported on the INCOME STATEMENT for the current year
Dr Bad Debt Expense $ 4.775
- 1-c. Complete the amounts related to Accounts Receivable and
Bad Debt Expense that would be reported on the BALANCE SHEET for the current year.
Dr Allowance for Uncollectible Accounts $ 2.284
Dr Accounts Receivable $ 8.864
Characteristics 4 and 5 would be typical of an industry that is in the start-up stage.
Explanation:
- Following characteristics would be typical of an industry that is in the start-up age :
- 4. The current penetration rate in the United States is 60% of households and will be difficult to increase.
- The households between $1 million and $2 million in net worth is given below :
- $1,000,000 in wealth is near the 88% in America.
- Around 15,117,804 are households that matched this bracket or more.
- 5 Manufacturers compete fiercely on the basis of price, and price wars within the industry are common.
- There are certain strategies which includes
- price matching,
- evaluating the competitors,
- product re-branding,
- creative advertising and marketing
Answer:
Operating profit margin = operating profits ÷ turnover
= 405000 ÷ 4,050,000
= 0.1 = 10%
ROI = Net operating Income/ Average Operating assets
= 405,000 ÷ 1620,000
= 0.25 = 25%
(note: Average operating assets = ( opening operating assets + closing operating assets ) ÷ 2 )
Turnover = sales/ average operating assets
= 4,050,000/ 1620,000
= 2.5
Residual income
minimum required return = minimum required rate of return × average operating assets
= 15% × 1620000
= 243000
Residual income = net operating income - minimum required return
= 162000
