Answer: d. a deduction of $80,000 under financing activities.
Explanation:
Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.
The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.
Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.
Answer:
d. substitution bias.
Explanation:
Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. The problem this creates for inflation calculations is called substitution bias.
A problem with the Consumer Price Index (CPI) arises from the singular fact that, when the price level of a product becomes relatively less expensive or lower, consumers tend to buy more quantity of the product and consequently, a lesser quantity of goods that are relatively more expensive.
Hence, their spending pattern changes with respect to the prices but it's not completely adjusted with the Consumer Price Index (CPI), thus, making the inflation rate to differ because of the problem of substitution bias.
Answer:
Explanation:
A fear approach is meant to scare people and make them aware that they are only human and that bad things can happen. This would push them towards buying the insurance package. A humorous approach would focus more and a funny message of why it is important. This change would be targetting the same audience but with a completely opposite message which may not reach people the same way, especially if those individuals do not like the humor aspect of it and are not longer scared from the previous fear strategy that the company would have had.
Answer:
Bread sticks: 6 × $2.50 = $15
Pizza: $12.99
$15 + $12.99 = $27.99
Tax: 7% = 0.07
$27.99 × 0.07 = $1.96 (approximate)
$27.99 - $1.96 = $26.03
hope this helped you!
Answer:
Accounting loss of $5
Economic loss of $35
Explanation:
Accounting profit is the net of revenue and Explicit cost. Explicit costs are the cost which actually incurred or paid.
On the other hand the economic profit is the net of revenue, Explicit and Implicit costs. Implicit value is the opportunity costs of choosing the alternative.
Implicit cost = $30
Explicit cost = 90 + 115 = $205
Accounting Profit = Revenue - Explicit costs = $200 - $205 = ($5)
Economic Profit = Revenue - Explicit cost - Implicit cost = $200 - $205 - $30
Economic Profit = ($35)
