Answer:
c)Company is not performing well as we can observe that % change in sales and gross profit are increasing year by year. Return on equity is almost same year by year
There is no much risk associated with company
Explanation:
1)Current Ratio = current assets/current liability
2)return on equity= net profit/equity
3)Net Income(%)=net income/sales
4)Fixed Asset Turnover= Sales/Fixed asset
5)Debt ratio=debt/assets
I'm not them but hello anyway B)
Answer:
a. Aggregate demand will shift to the left and unemployment rate will rise
Explanation:
Aggregate demand (AD) is the sum of consumer spending, government spending, investment, and net exports. The AD curve assumes that money supply is fixed. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD. <u>On the other hand, decreased money supply causes increase in interest rates and therefore a decrease in Aggregate Demand</u>
<u>Since the FED is buying Bonds it is reducing money supply and hence aggregate demand will fall causing the curve to shift to the left.</u>
Secondly inflation and unemployment has an inverse relationship. More money in the economy is inflation and unemployment level will be low because there will be an increase in wages <u>BUT when the FED reduces money supply by buying bonds, as a means of countering inflation, then unemployment will rise.</u>
I believe the answer is between A or D im with A more tho
Answer:
Option A Net income will be the same under both variable and absorption costing.
Explanation:
The condition here given is:
Production Units = Sales units
Now under such conditions their is no finished goods and all the fixed costs are absorbed in the units produced in the absorption costing which means all the fixed production costs are part of the cost of goods sold.
In variable costing system, the fixed costs are not absorbed in the units and deducted as period cost.
So this means no cost is left which is not deducted from the revenue and this gives us net income that is same amount when we either use variable costing or use absorption costing. But remember that this is only possible when the production units are equal to sales units.