Businesses will be more likely to expand their facilities
Answer:
Master Production Schedule (MPS)
Week 1 2 3 4 5 6 7 8
Forecast Customer Order 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory 25 50 75 0 25 50 75 0
MPS 100 100 100 0 100 100 100 0
Explanation:
a) Data and Calculations:
Master Production Schedule (MPS)
Week 1 2 3 4 5 6 7 8
Forecast Customer Order 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory
MPS
Formulas for Projected On-Hand Inventory
Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)
Highest number
Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)
Answer:
a) A gain is subtracted from net income.
d) An increase in operating current assets is subtracted from net income.
e) A decrease in operating current liabilities is subtracted from net income.
Explanation:
Operating activities: It involves those transactions that affect the after-net income working capital. It would subtract the rise in current assets and a decrease in current liabilities while add a decrease in current assets and an increase in current liabilities.
It would modify those changes in working capital. For addition, the depreciation costs are added to the net income and the loss on the sale of assets is applied, while the gain on the sale of assets is excluded
So, the following options are used-
a) A gain is subtracted from net income.
d) An increase in operating current assets is subtracted from net income.
e) A decrease in operating current liabilities is subtracted from net income.
Answer:
1. As the price level rises, the cost of borrowing money will <u>rise</u>, causing the quantity of output demanded to <u>fall</u>.
This phenomenon is known as the <u>Interest rate</u> effect.
When price levels rise, people will have to spend more on goods and services and hence save less. As they save less there'll be less loanable funds in the economy which will force interest rates (cost of borrowing) up. As there are less loans to give out and higher rates, people will borrow less and as a result will not demand as much because they can't afford it.
2. Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar to <u>rise</u> in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will therefore <u>fall</u>, and the number of foreign products purchased by domestic consumers and firms (imports) will <u>rise</u>. Net exports will therefore <u>fall</u>, causing the quantity of domestic output demanded to <u>fall</u>. This phenomenon is known as the <u>exchange rate</u> effect.
As interest rates rise in the Economy, it will make the country a more attractive place to invest for foreigners so they will demand more of the local currency. This will cause a rise in the value of the domestic currency. This will make the exports of the country more expensive so less people outside will buy it but it will also make foreign products seem cheaper so the local consumers will import more.
It would actually be an increased production by the business.
Haha, I had to think for a tiny bit and re-check my answer to make sure it was right before giving it. Would hate to see you get it wrong.
