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sergiy2304 [10]
3 years ago
12

A new project would require an immediate increase in raw materials in the amount of $1,000. The firm expects that accounts payab

le will automatically increase $800. How much must the firm expect its investment in net working capital to change if they accept this project?
a. +$1,800b. +$200c. −$200d. −$1,800
Business
1 answer:
disa [49]3 years ago
8 0

Answer:

b) +$200

Explanation:

Net Working Capital (NWC)  or simply Working capital is the calculation between an organisation's current assets including accounts receivable, inventory and cash and the organisation's current liabilities including payables and advances among others. It simply measures how liquid an organisation is enough to meet its current obligations (liabilities).

Calculate: The Net working Capital if the new project is accepted

=NWC= Current assets - current liabilities

Increase in raw materials is a current asset = $1000

Increase in accounts payable is a current liability= $800

Therefore NWC = $1,000 - $800

=$200

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Troboli is a North American country. The total value of all final goods and services produced in Troboli in the last fiscal year
Natalka [10]

Answer:

GDP as Gross Domestic Product

Explanation:

GDP termed as or stands for Gross Domestic Product, which is a broadest measure of total or aggregate economic activity of the nation in the terms of quantitative evaluation.

GDP states the monetary value of all the services and goods or products with the geographic borders of the nation over the particular period or time.

So, in this case, the aggregate value of all the goods and services by which the economic condition is assessed is referred to as GDP (Gross Domestic Product).

6 0
3 years ago
On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.6 million cash to expand operations. The l
NNADVOKAT [17]

Answer:

1.

Aug 1st,2021;  Entry to record note issuance is as followed:

Dr Note Receivable   $20,600,000

Cr Cash                      $20,600,000

(to record the issuance of note to Trico Technologies)

2.

Dec 31st,2021; Entry to record interest income from note receivable:

Dr Interest revenue receivable      $515,000

Cr Accrued Interest Income          $515,000

(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)

3. January 31st, 2022; Entry to record repayment of the note at maturity:

Dr Cash                                              $21,218,000

Cr Interest Income                           $103,000

Cr Note Receivable                         $20,600,000

Cr Interest Income receivable        $515,000

( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.

Explanation:

8 0
3 years ago
During tight money periods, generally Multiple Choice short-term rates are equal to long-term rates. short-term rates are higher
zubka84 [21]

The thing which usually happens during tight money periods, generally is:

  • short-term rates are higher than long-term rates.

<h3>What is a Tight Money Period?</h3>

This refers to an economic policy in which there is the need for control of inflation in the economy by the financial institution in a country.

With this in mind, we can see that when this happens in the tight money periods, there is usually short term rates which are higher than long term rates because there is a need to control the economy which is rising too quickly.

Read more about inflation here:
brainly.com/question/1082634

7 0
2 years ago
When bonds are sold at a premium and the effective interest method is used, at each subsequent interest payment date, the cash p
lorasvet [3.4K]

Answer:

C.Greater than the effective interest.

Explanation:

<u>example</u>

face value 1,000,000

issued at 1,100,000

premium of 100,000

the bond rate is 8%

and the effective rate is 6%

1,100,000 x 6%/2 = 33,000 interest expense

cash proceeds 1,000,000 x 8%/2 = 40,000 cash

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If that wouldn't be the case, he premium won't depreciate

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How do you get money from the business ​
Reptile [31]

Answer:

Content

Determine how much funding you'll need.

Fund your business yourself with self-funding.

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Use Lender Match to find lenders who offer SBA-guaranteed loans.

Small Business Administration investment programs.

Explanation:

7 0
3 years ago
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