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
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

You might be interested in
Winston Churchill was born when his father entered Parliament dependent or independent
Readme [11.4K]
Winston-Churchill was born when his father entered Parliament independent
8 0
2 years ago
You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maintenance m
SIZIF [17.4K]

Answer:

$50

Explanation:

The computation of the stock price level is shown below:

Maintenance margin = Number of shares purchased × price - loan amount ÷  Number of shares purchased × price

30% = 100 shares × price - $3,500 ÷ 100 shares × price

30% × 100 shares × price = 100 shares × price - $3,500

30 × price = 100 shares × price - $3,500

After solving this, the price would be $50

And, the loan amount equal to

= Number of shares purchased × per share price × initial margin

= 100 shares × $70 × 50%

= $3,500

3 0
3 years ago
Exchange rate shifts that cause the Sing$ to be weaker versus than the Brazilian real:
Luden [163]

Answer:

make the export of footwear from Asia-Pacific plants to Latin America less competitive and give rise to negative/favorable exchange rate cost adjustments.

Explanation:

Exchange rate is defined as the rate at which one currency can be exchanged with another. It determines balance of trade, that is the amount of one countrie's goods that can be exchanged for another one's.

When exchange rate causes Sing$ to be weaker versus than the Brazilian real, it results in more of the Sing$ used to purchase one Brazilian Real.

Export of footwear from Asia-Pacific plants to Latin America will be more expensive, so it will be less competitive.

8 0
3 years ago
Jess wrote Amanda a check for $358.36, and Amanda deposited the check into her checking account. Where was Amanda's signature?
vovikov84 [41]
On the back of the check
3 0
3 years ago
Read 2 more answers
Croft Company sold land costing $10,000 for $12,000. In the investing activities section of the statement of cash flows, the com
Nezavi [6.7K]

Answer:

The answer is: B) An inflow of $12,000

Explanation:

Croft Company's cash flow should include the total cash inflow (the company received money) of $12,000. Even if the company bought the land the day before, paying the $10,000 yesterday, the cash flows are independent one from another. It should have recorded the outflow of $10,000 "yesterday".

7 0
3 years ago
Other questions:
  • The dividend policy must be formulated considering two basic objectives, namely ________. delaying the tax liability of the stoc
    9·1 answer
  • The last time he flew Jet Value Air, Juan's plane developed a fuel leak and had to make an 4) emergency landing. The time before
    7·1 answer
  • intext:"The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is"
    6·1 answer
  • If commercial banks are maintaining a 4 percent reserve/deposit ratio and the fed raises the required reserve ratio to 6 percent
    9·1 answer
  • Como podemos celebrar nuestro aniversario en medio de esta pandemia?
    6·1 answer
  • Which competency area of the human service professional is defined as follows: "The community human service practitioner is know
    9·1 answer
  • Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart o
    5·1 answer
  • True/False
    7·1 answer
  • Recently Kaden switched jobs from a large firm to a medium-sized firm. As one of four project managers at the new firm, Kaden re
    12·1 answer
  • Decruitment is the planned elimination of ________ in an organization. A) jobs
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!