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m_a_m_a [10]
3 years ago
6

A new project would require an immediate increase in raw materials in the amount of $17,000. The firm expects that accounts paya

ble will automatically increase $7,000. How much must the firm expect its investment in net working capital to increase if they accept this project?
A.) $17,000
B.) $7,000
C.) $10,000
D.) $24,000
Business
2 answers:
RUDIKE [14]3 years ago
5 0

Answer:

C.) $10,000

Explanation:

Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is.

Raw materials also known as Inventory and accounts payable are both current assets and current liabilities respectively hence, Incremental investment in working capital if the project is accepted

= $17,000 - $7,000

= $10,000

valina [46]3 years ago
5 0

Answer:

increase in net working capital = $10,000

Explanation:

given an increase in raw materials amount = $17,000 being Current assest

accounts payable automatically increase = $7,000 being Current liabilities

To know what the net working capital to increase is

Solution

The net working capital is express as this

net working capital = Current assets - Current liabilities      

so

increase in net working capital =  $17000 - $7000

increase in net working capital = $10,000

Read more on Brainly.com - brainly.com/question/13679862#readmore

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Tom [10]

Answer:

Sell now, the company will be better off by $18200

Explanation:

The computation is shown below:

Sales value after processing the product (26,000 × $14)   $364,000

Less: sales value   (26,000 × $8) $208,000

Increase in advantage due to processing $156,000

Less: processing cost ($174,200)

Net disadvantage of processing the product ($18,200)

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3 years ago
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
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Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

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This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

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8 0
3 years ago
When mcdonald’s introduced its low-fat mclean deluxe hamburger, it used __________ to avoid direct competition with wendy’s and
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3 years ago
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results whi
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Answer:

Moonbeam Company

a) Incremental analysis for the special order:

Sales revenue ($7.87 * 20,800) =   $163,696

Variable costs ($6.62 * 20,800) =    (137,696)

Contribution margin =                        26,000

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Net income from special order =     $23,100

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Cost of goods sold        2,588,880      1,812,216       776,664

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Total plant capacity = 500,267 units (375,200/75%)

Increase in plant capacity = 396,000 (375,200 + 20,800)

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