Answer:
The change should you expect in operating cash flows next year would be 19.60%
Explanation:
In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:
change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year
change should you expect in operating cash flows=2.8*0.07
change should you expect in operating cash flows=19.60%
The change should you expect in operating cash flows next year would be 19.60%
Answer:
D) Use production technologies that conserve on the number of workers.
Explanation:
Answer:
(b) After-closing balance in the Retained Earnings account on December 31, Year 1,
Total Stockholder's equity = Total assets - Total liabilities
= $220,000 - $66,000
= $154,000
After-closing balance of Retained Earnings = Total Stockholder's equity - Common stock
= $154,000 - $110,000
= $44,000
(a) Before-closing balance in the Retained Earnings account on December 31, Year 1.
Net Income = Revenue - Expenses
= $40,000 - $23,000
= $17,000
Before-closing balance of Retained Earnings:
= After-closing balance of Retained Earnings + Dividend paid - Net Income
= $44,000 + $3,200 - $17,000
= $30,200
(c) Before-closing balances in the following accounts:
Revenue = $40,000
Expenses = $23,000
Dividend = $3,200
(d) After-closing balances in the following accounts:
Revenue = $0
Expenses = $0
Dividend = $0
Because revenue and expenses are transferred to income statement and dividend are transferred to retained earnings.
Answer:
The correct words for the blank spaces are (<em>in that order</em>): low; high; opportunity; reservation.
Explanation:
For buyers and sellers to benefit from a transaction, the price of the goods or services offered must be at equilibrium. It implies the price is low enough for consumers to consider purchasing the product and high enough for producers to offer it earning a profit.
Besides, producers should consider their opportunity costs which are the costs of adding one more unit for production. On the other side of the road, consumers consumer their reservation price which is the maximum amount of money they could pay for a good or service based on the value they give to the product.
