Answer: c. The firm's cash position in 2006 and 2007 would increase.
Explanation:
Depreciation expense is heavily dependent on the useful life of the asset. The longer the useful life, the smaller the depreciation expense because the equipment is being depreciated over a longer period.
If the useful life is reduced from 15 to 10 years therefore, the depreciation expense would increase.
The Cash position of a company is calculated by adding back the depreciation to the Net income after taxes are paid because depreciation is not a cash expense.
If the depreciation is now larger (which it is) and is added back to the Net income, the cash position will therefore increase.
Yes you can. The hand book says a minor and minors are under 18. I hope I helped you.
Answer:
So unit elastic at q = 5
inelastic above 5
and elastic below 5
Explanation:
The elasticity is determianted by the marginal revenue.
Our first goal is to find the marginal revenue function
p = 40 - 4q
total revenue(TR) = quantity times price
q x (40 - 4q) = -4q^2 +40q
marginal revenue TR(q)/d(q) = -8q + 40
Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.
It will be inelastic below zero and elastic above zero
MR will be zero when q = 5
-8(5) + 40 = 0
As quantity increases the demand will be inelastic
while
Answer:
increases in the price level that raise profits, inducing firms to produce more
Explanation:
increases in the price level that raise profits, inducing firms to produce more
Answer: $4,811
Explanation:
Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible that would be,
= 6% * 98,700
= $5,922
The Allowance for Doubtful Accounts acts as a buffer for the business when bad debts are incurred.
Bad debts are taken from the Allowance as the Allowance has already been removed from the Receivables.
In cases where Bad debts exceed the buffer in the Allowance for Doubtful Debt Account we take everything in it and the remaining bad debt amount is debited to Bad Debt expense.
That would be,
= 5,922 - 1,111
= $4,811
$4,811 is the amount that should be debited to Bad Debts Expense.
