If you cut your prices by 10 percent and total revenues rise, the price elasticity of demand is

Anew Health Care Company reports net income of $210,000 and Depreciation Expense of $24,000 for the year ending December 31, 20

Fiesta28 [93]

Answer:

$344,000

Explanation:

2018 2019 Change

Amount in $ Amount in $ Amount in $

Inventory 99,000.00 72,000.00 27,000.00 Total current asset 289,000.00 248,000.00 41,000.00 Accounts payable 52,000.00 42,000.00 (10,000.00)

Salaries payable 39,000.00 91,000.00 52,000.00

Amount in $

Net income 210,000.00

Add depreciation 24,000.00

Changes to current assets and liabilities

Inventory 27,000.00

Total current asset 41,000.00

Accounts payable (10,000.00)

Salaries payable 52,000.00

Net cash flows from operating activities 344,000.00 

3 0

3 years ago

Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He

kvv77 [185]

Answer:

$30,000

$6,000

Explanation:

Carlos risk = $30,000

Carlos risk of $30,000 is the amount of funds which he had invested in the course of his business which is why Carlos is not considered at-risk for the nonrecourse loan reason been that carlos is not found liable because the loan was not used in the business which makes him to have a risk of $30,000.

$24,000 loss that occured will reduces Carlos’ amount at-risk to $6,000

($30,000 - $24,000)

=$6,000

5 0

3 years ago

A bank reconciliation revealed cash per the bank statement of $1,484, cash per company records of $1,681, bank charges of $11, d

kotegsom [21]

Answer:

Correct cash balance is $ 1,580

Explanation:

Balance as per cash book $ 1,681

Less: Bank charges $ ( 11)

Less: NSF cheques $ ( 90)

Adjusted balance per cash book $ 1,580

Balance per bank statement $ 1,484

Add: Deposits in transit $ 317

Less; Outstanding checks $ ( 221)

Adjusted balance per bank statement $ 1,580

4 0

3 years ago

List and explain ten factors to consider in preparing family income

aniked [119]

Answer:

1. Availability of Money:

The expenditure of a family depends upon the availability of money or total income of the family. It can afford to spend under various needs. In lower income group, families expenditure is more on food. Higher income group families spend more on recreation, education and luxuries etc.

2. The size and the composition of the family:

Expenditure depends upon the size and composition of the family. The size of the family means the number of adults and children. The more the mouths to eat the expenditure is more on food, clothing and shelter. With the growth of children, more will be spent on education and clothing. More will be spent towards transportation when the members go out of the house for work or study.

Composition of the family means the number of adults and children in the family. It also includes the number of males, females and old persons. For old persons, extra expenditure will be incurred towards health and medical expenses.

3. Stages of family life cycle:

Family life cycle plays an important role in spending money. At the beginning stage, most part of the family income is spent towards the establishment expenditure as a newly married couple starts their family life. In the expanding stage families need money for the children, their food, dress, education etc. Some families in the expanding stage spend more on purchasing durable household goods, furniture etc. In the contracting stage major expenditure is on wedding celebration of their children. During this stage, the family income is gradually reduced. So the expenditure should be cut short.

4. Occupation of the family members:

Sometimes expenditure of the family depends upon the occupation of the family members. In certain jobs, there are special benefits like free quarters, educational facilities for children, health and medical allowance, travelling allowance etc.

5. The needs and objectives of the family:

Expenditure will be done according to the needs and objectives of the family. For example, a family where young children are there, more will be spent for nutritious foods. Old people require health and medical expenses. Working women spend money for the servants as they do not find time to do the household work.

6. Resources:

Both human and material resources can make significant changes in the pattern of expenditure of a family. The abilities, skill, knowledge, interest, attitude and habits of the members of the family can be utilized for various purposes as supplementary income.

7. Locality of the family:

In rural areas more will be spent on food. But in urban areas the expenditure is more on education, recreation, transportation, accommodation etc.

8. Socio-economic status of the family:

The socio-economic status of the family is determined by its income, education level and occupation of the members. The higher the socio-economic status the expenditure will be more on interior decoration, higher education, club membership, accommodation, recreation etc. The total expenditure depends on the standard of living the family maintains.

9. Social and religious traditions:

Some families accept old and traditional values. So they spend more on marriages and religious festival.

10. Personal choice:

Expenditure depends upon the personal choice. For example, one person may have a liking for expensive perfumes and jewellery while another may have simple tastes. Expenditure is also affected by the measures taken in the family to make provision for the future like house building, higher education of children etc. The home-maker will be able to manage with her income by cutting out unnecessary and extravagant expenditure. “One must cut one’s coat according to his cloth.”

This saying is rightly proved in home management. Balancing of income and expenditure is the best way of money management. Whatever the income may be, the efficient management of money is a requisite for a happy, successful and peaceful family life.

8 0

3 years ago

Stockholders of a company may be reluctant to finance expansion through issuing more equity because leveraging with debt is alwa

lianna [129]

Answer:

Their earnings per share may decrease.

Explanation:

Shareholders of a company may be reluctant to finance expansion through issuing more equity because Their earnings per share may decrease and at the same time debt is always better option to finance.

4 0

3 years ago