Answer:
When ski butternut reduced the first time skier package from $135 to $75, first time skiers:
a. experienced unitary elasticity for ski lessons.
b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.
c. saw a perceived reasonable value for an activity they haven't tried yet.
d. bartered for lower priced rentals?
Explanation:
The correct answer is 'b', The ski butternut used a strategic approach where they are offering a discounted package for first timers to attract them and once the skiers are comfortable and hooked they would again increase their prices and charge the skiers the high price now.
Answer:
($89,000)
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
the net cash provided by (used in) financing activities on the statement of cash flows would be:
= -$30,000 - $59,000
= - $89,000
Others not involved in the computation are investing and operating activities
Answer:
- Retire Long Term debt at $0
- Issue Long Term Debt at $6,000
Explanation:
If you elect to both retire the $6,000 in long term debt and also issue long term debt of the same amount, your cash balance would be -$3,000 which is unhealthy.
What you should do therefore, is to retire no long term debt while still issuing the long term debt of $6,000 to pay for the investment in plant improvement. This will leave you with a cash balance of $3,000 which is healthy enough.
Answer:
The amount that qualifies as a deduction from AGI for Sonia is B) $7382
Explanation:
From March 1 to August 31, total number of days are 184
Sonia sold her residence on June 30 , so the total number of days between March 1 to June 30 is 121 .
Therefore the tax on residence would be =
121 / 184 x $ 5250
= .657608 X $5250
= $3452.445
Now adding this amount with state motor vehicle tax and state and local sales taxes,
= $3452.445 + $430 + $3500
= $ 7382.445
= $7382 ( approximate )
Since this amount of $7382 is higher than the state income tax , then this amount will qualify as a deduction from AGI for Sonia.
Answer:
Wight Inc.
1. The cash required for payments on accounts in May
= $383,500
2. The cash required for payments on accounts is:
= $412,975
Explanation:
a) Data and Calculations:
April May June
Expected purchases on account $374,000 $412,000 $415,900
Cash Payments:
Month of billing (25%) $93,500 $103,000 $103,975
Next month (75%) 280,500 309,000
Cash required for payments on accounts $383,500 $412,975