Answer:
INCOME EFFECT
Explanation:
Income Effect means change in real income/ purchasing power due to change in price, income staying same.
- Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
- Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.
Eg: Income, price of a consumer = Rs100, Rs10 respectively.
Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).
Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.
Answer:
48.00%
Explanation:
For computing the debt to capital ratio, first we have to determine the equity value and debt value which is shown below:
Equity value = Number of outstanding shares × stock price per share
= 5.2 million shares × $12
= $62.4 million
We know,
Total capital = Debt + equity
$120 million = Debt + $62.4 million
So, the debt would be
= $120 million - $62.4 million
= $57.6 million
Now the debt to capital ratio would be
= $57.6 million ÷ $120 million
= 48.00%
Answer:
A. two balance sheets and B. income statement
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the loss on sale of assets is added whereas the gain on sale of assets is deducted
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
To delve into the underlying meaning of the terms, "stockholder" technically means the holder of stock, which can be construed as inventory, rather than shares. Conversely, "shareholder" means the holder of a share, which can only mean an equity share in a business. Thus, if you want to be picky, "shareholder" may be the more technically accurate term, since it only refers to company ownership.
Answer:
A) 14.72 hours
B) An additional worker should be hired since the lost work time is 14.72 hours
Explanation:
Number of machines on manufacturing line = 8
percentage of machine been down = 23%
number of workers capable of running and repairing machines = 2
machine productivity ( per machine ) = 18 units/hour
overhead cost / machine = $713
hourly rate paid per worker = $15
Total number of work hours = 8 hour
A) calculate Total amount of lost worktime
= number of machines * Total number of work hours * 23%
= 8 * 8 * 23% = 14.72 hours
B) An additional worker should be hired since the lost work time is 14.72 hours
