The amount of the net working capital is -$4,900
Net working capital = $43,100 - $23,700 - $24,300 = -$4,900
What is the meaning of net working capital '?
The net working capital of a corporation is the difference between short-term assets and short-term liabilities (NWC). Positive net working capital indicates that a business has paid its debts and has funds left over to invest in other operational needs, which is fantastic.
Why is net working capital important?
Net working capital is significant because it provides insight into a company's liquidity and determines if it has sufficient funds to meet its immediate obligations. If the net working capital number is zero or higher, the company can meet its immediate obligations.
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Answer:
B. The elasticity of demand is -0.126
Explanation:
% Change in Quality demand = -2.65% (this is negative because of drop in prenatal smoking)
% Change in price = 21%
Elasticity of demand is given by the formula below:
Elasticity of demand = % change in quantity demanded ÷ %change in price
Elasticity of demand = -2.65 / 21
Elasticity of demand = -0.126
Answer: b. mind games and your money
Explanation:
This falls under Mental accounting where our minds play games with our money by dividing them into various accounts and uses based on our emotions.
Sunk costs play a big part in this because we get so attached to the accounts we have put a lot of effort in while neglecting those we have not or do not want to think about. Maria here is proud of her savings account so much so that she does not see the detrimental effect of not paying off the credit card debt which is rising rapidly.
Her savings account is now a sunk cost and she doesn't realize. This principle can help advise her so she understands the games her mind is playing on her and fix it before the damage gets worse.
This statement is false. It is difficult to find and train high quality personnel for DC operations.<span />
