Why isn't elasticity just measured by the slope of the demand curve?

Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco

wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

= $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0

3 years ago

You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the ma

Vadim26 [7]

Answer:

A. $20,000

B. $17,234.18

C.Option (b)

Explanation:

Obviously, the option with lower Present Value would be the best option to buy the car. The Present Value of the options can find out as following

REQUIREMENT A

Price of car = $24,600

Rebate = $4,600

Present value of the payments for option = Price of the car – rebate

Present value of the payments for option (a) = $24,600 - $4,600

Present value of the payments for option = $20,000

REQUIREMENT B

We can use the following Present Value of an Annuity formula to calculate the present value of the payments

PV of the payments for option = PMT * [1-(1+i) ^-n)]/i

PV of the payments for option (b) (PV) =?

Monthly payment PMT =$410 per month

Number of payments n = 5 years *12 months = 60

Monthly interest rate i=1.25% per month or 0.0125

PV of the payments for option = $410 x [1- (1+0.0125) ^-60]/0.0125

PV of the payments for option = $17,234.18

REQUIREMENT C.

Which is the better deal?

Option (b) is better deal as the present value of payments ($17,234.18) is less than Present value of the payments for option (a); $20,000.

3 0

3 years ago

"helen is a u.s. citizen and cpa, who moved to london, england three years ago to work for a british company. this year, she spe

balu736 [363]

Answer:

Exclusion upto $103,900. Taxable amount is $6100.

Explanation:

US natives, just as changeless occupants, are required to document ostracize expense forms with the government consistently paying little mind to where they dwell.

Alongside the common assessment form for money, numerous individuals are likewise required to present an arrival revealing resources which are held in ledgers in remote nations. Notwithstanding where you live, you should record expat imposes in the US.

3 0

3 years ago

The following information is taken from the income statement of Olympic, Inc.: Depreciation Expense $ 90,000 Amortization Expens

Lina20 [59]

Answer:

The correct option is D,$402,000.

Explanation:

In determining the cash flow provided by operating activities,we need to adjust the net income for effects of non cash items reported.It is important to note that the reverse of the earlier treatment of the items is what is required now.For instance depreciation and amortization were deducted in income statement,for cash flow purposes we need to add both to net income.

Net income $315,000

add depreciation $90,000

amortization $15,000

loss on sale of equipment $9,000

less gain on sale of building($27000)

Cash flow from operations $402,000

The cash flow from operating activities as adjusted is $402,000.

6 0

3 years ago

The effective rate of a $25,000 non-interest-bearing simple discount 10%, 90-day note is

Vlada [557]

For the answer to the question above, the $25,000 due in 90 days.
I'll use 365 days per year. 10% simple discount:
25000*0.10(90/365) = 616.44
Cash in hand at the beginning of the 90 days:
25000 - 616.44 = 24,383.56

Solve for r: 616.44 = 24383.56*r*(90/365)

r = 0.10252837 or the nearest answer is letter C. 10.26%
It is not exact because maybe he rounded off the 24383.56

5 0

3 years ago

Why​ isn't elasticity just measured by the slope of the demand​ curve?

Why isn't elasticity just measured by the slope of the demand curve?