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3 years ago

All else equal, an increase in savings will cause capital stock to:

1 answer:

7 0

If all else equal, an increase in savings will cause capital stock to increase. Capital stocks signifies the position of the economy's productivity. If there is more savings, there is the possibility of increase in accumulating capital because business owners can buy new equipment or add new workers. But sometimes, it does not necessarily mean that if there is higher savings, there is also higher investments and may not lead the people to invest more.

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Which of these is true about the cash cow?

laiz [17]

Answer:

Explanation:

Cash cow relates to a company investment in a low growth market with a high market share.....

5 0

3 years ago

Flannery Corporation owns machinery with a book value of $520,000. It is estimated that the machinery will generate future cash

Aleonysh [2.5K]

Answer:

(d)$105,000.

Explanation:

Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,

= Book value of machinery - fair value of machinery

= $520,000 - $415,000

= $105,000

5 0

2 years ago

Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (

sukhopar [10]

Answer:

The correct answer are D, E and F

Explanation:

Current liabilities are the short-term obligations of the company or the business which are due within the period of one year or within a operating cycle. An operating cycle states the cash conversion cycle, which is the time taken by the company to purchase the inventory and then convert the inventory into cash through sales.

The items which can be classified as Current Liabilities are portion of the long term note which is due in 1 month, wages payable due in 7 days and portion of the long term note which is due in 10 months.

7 0

3 years ago

Crane Company had the following account balances:

aivan3 [116]

Answer:

The correct answer is $479,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the total revenue by using following formula:

Total revenue = Net sale + Dividend revenue + Rent revenue

Where, Net sales = Sales revenue - Sales return

= $445,000 - $34,000 = $411,000

By putting the value in the formula, we get

Total revenue = $411,000 + $10,500 + $58,000

= $479,500

4 0

3 years ago

Computing Income Taxes

Anastaziya [24]

Answer:

The corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

Net profit Calculation

Sales $ 3,130,000

cost of goods sold and the operating expenses ($ 2,080,000)

Interest expense ( $ 377,000)

Net profit $ 673,000

Tax liability Calculation

Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

5 0

2 years ago