An investor is speculating on the decline in the value of a security and purchases put options on the stock. The news ends up be
1 answer:
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Answer:
The correct answer is option c.
Explanation:
If a large part of the population realizes that soda is bad for health, they will stop consuming soda. This will cause the demand for soda to decline.
A decrease in demand will cause the demand curve to shift to the left, this leftward shift in the demand curve will cause the price of soda to decline.
This has been shown in the graph given below.
Answer:
$412,000
Explanation:
<em>1. Cash Purchases: </em>
The total purchases in the month of March is of $500,000.
It is given that 20% of Purchases are for cash.
Hence, 20% of $500,000 would be;
$500,000 x 0.20
$100,000
<em>2. Credit Purchases:</em>
<em>(i) Month of Purchase:</em>
The remaining amount for the month of purchase to be paid is 30% of the remaining amount after Cash Purchases during March. Hence, for March remaining payment is;
$500,000 - $100,000
$400,000
Hence 30% of $400,000 would be;
$400,000 x 0.30
$120,000
<em>(ii) Following Month:</em>
The following month payment to be included for month of March Cash Payment would be for the previous month which is February and will be calculated as follows;
20% of $400,000
$80,000
Following Month cash payment for the month of February, to be included in the month of March Cash Payment, will be calculated as follows;
$400,000 - $80,000
$320,000
Hence, 50% of $320,000 would be;
$320,000 x 0.50
$160,000
<em>(iii) Second Month:</em>
The Second month payment to be included for month of March Cash Payment would be for the month of January will be calculated as follows;
20% of $200,000
$40,000
Second Month cash payment for the month of January, to be included in the month of March Cash Payment, will be calculated as follows;
$200,000 - $40,000
$160,000
Hence 20% of $160,000 would be;
$32,000
<em>(3) CASH PAYMENT for PURCHASES in MARCH:</em>
Cash Purchases = $100,000
Credit Purchases = Month of Purchase + Following Month + Second Month
Credit Purchases = $120,000 + $160,000 + $32,000
Credit Purchases = $312,000
Hence;
Cash Payment for purchases in March = Cash Purchases + Credit Purchases
Cash Payment for purchases in March = $100,000 + $312,000
Cash Payment for Purchases in March = $412,000
