After all resulting adjustments have been completed, the new equilibrium price will less than the initial price and output. The same will happen to the industry output. In each situation in which <span>an increase in product demand occurs in a decreasing-cost industry the result is: </span>the new long-run equilibrium price is lower than the original long-run equilibrium price.
Answer:
1) Part 1. Operating Income = Revenue - Operating cost
=201,000 - 56,000
=$145,000
Part 2. Operating Income = Revenue - Operating cost
= 159,000 - 55,000
= $104,000
Part 3. Operating Income = Revenue - Operating cost
= 89,000 - 15,000
=$74,000
2. Part 1. Operating Income = Revenue - Operating cost
=201,000 - 45,600
=$155,400
Part 2. Operating Income = Revenue - Operating cost
=159,000 - 25,000
=$134,000
Part 3. Operating Income = Revenue - Operating cost
=89,000 - 55,400
=$33,600
Answer:
- b. Cash from Financing Activities
- d. Bonds Payable
- e. Net Income
Explanation:
Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.
Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.
Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.
