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3 years ago

Problems and Applications Q7

Business

1 answer:

gulaghasi [49]3 years ago

6 0

Answer:

Q1 rises quantity of clam chowder demanded as there will be more demand from complement goods for Oyster crackers as theri price decreases it.

Q2 rises the quantity the demand for oyster crackers as more persons will find a consumer surplus at a lower price therefore, more quantity.

Q3 demand for wheat flour increases as they are an input in the processing of Oyster crackers.

Q4: increase as the demand increases without an increase in supply which,

Q5 increase input prices of bread making decreases it resulting in:

Q6: rise of the price of bread making people

Q7 subtitute with cereal thus,

Q8 increasing the demand for cerals.

Explanation:

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Lansbury Inc. had the following balance sheet at December 31, 2019.

timofeeve [1]

Answer:

See explanation

Explanation:

Requirement A

See the image Below:

Requirement B

LANSBURY INC.

BALANCE SHEET

As at December 31, 2020

Assets

Cash $37,000

Accounts receivable $41,600

Investment $20,400 (Note - 1)

Plant asset $81,000

Less: Accumulated depreciation ($11,000)

Book value of Plant asset $70,000

Land $53,000

Total assets $222,000

Liabilities and Stockholders' Equity

Liabilities

Accounts payable $30,000

Notes payable $25,000

Total liabilities $55,000

Stockholders' Equity

Common Stock $120,000

Retained earnings $ 47,000 (Note - 2)

Total stockholders' equity = $167,000

Total liabilities & Stockholders' Equity = $222,000

Note - 1:

Sold investment's cost value calculation -

Selling price = $15,000

Less: Gain on sale = ($3,400)

Cost price = $11,600

Investment during 2019 = $32,000

Sale of Investment (book value) $11,600

Remaining value of Investment = $20,400

Note - 2:

Beginning $23,200

Add: Net Income $32,000

Less: Dividend ($8,200)

Ending retained earnings = $47,000

Requirement C

1. Cash flow to net income ratio:

It shows how much cash flows from operating activities during the year over a specific net income.

We know, Cash flow to net income ratio = $\frac{Cash flow from operating activities}{Net Income}$

Cash flow to net income ratio = $\frac{19,200}{32,000}$

Cash flow to net income ratio = 60%

2. Operating cash flow ratio:

It shows how much cash flows from operating activities during the year from the use of current liabilities.

We know, Operating Cash flow ratio = $\frac{Cash flow from operating activities}{Current liabilities}$

Operating Cash flow ratio = $\frac{19,200}{30,000}$

Operating Cash flow ratio = 64%

Note: Here, accounts payable is the only current liabilities as notes payable has a long-term value.

8 0

4 years ago

The process by which an increase in government borrowing results in less borrowing by businesses and consumers for private inves

Gemiola [76]

The process by which an increase in government borrowing results in less borrowing by businesses and consumers for private investment is called expansionary fiscal policy.

<h3>What Is Expansionary Fiscal Policy</h3>

Expansionary fiscal policy refers to an increament in government spending, a decrease in tax revenue, or a combination of the two.

Expansionary fiscal policy is aimed at spurring economic activity and drive development.

Learn more about Fiscal policy at brainly.com/question/6583917

4 0

2 years ago

In terms of the global marketplace there are three primary types of companies: __________, multinational firms, and transnationa

Allushta [10]

Option D

In terms of the global marketplace there are three primary types of companies: international, multinational firms, and transnational firms

<h3>Explanation:</h3>

Global marketing is larger than only trading a product internationally. Preferably, it covers the entire process of preparation, manufacturing, fixing, and selling a company’s goods in a worldwide market.

An international company is included in transporting and trading its goods and services to different nations, but other than shipping has no other financing in these other nations. All of the business purposes and headquarters reside in the country of origin, and there are no parts of the company across in any of the nations the market trades with.

8 0

3 years ago

Which situation best describes an oligopoly?

kvasek [131]

D - a large airlines work together to set high prices and eliminate

7 0

3 years ago

2 students are considering operating a fruit smoothie stand during their summer break. this is an alternative to summer employme

kotegsom [21]

The accounting cost of running the smoothing stand for the summer is $13,135.90. To find this, we must first figure out which numbers given in the problem are relevant. Since we are dealing with accounting cost (and not economic cost), we know that we can ignore the opportunity cost ($2865 in foregone wages). We also can ignore the price of the smoothies since we do not need to compute revenue in order to determine accounting cost. Thus, the relevant numbers are $8130 for the lease, $2239 for insurance, the per unit cost of $2.3, and the total quantity of 1203. To find the accounting cost, we simply need to add our fixed costs and our variable costs. The fixed costs are given as $8130 and $2239. FC=8130+2239=$10369. Our variable cost, VC=2.3q, and we are told q=1203. Thus VC=2.3(1203)=$2766.90. To find our Total accounting costs, simply add fixed costs plus variable costs. FC+VC=2766.90+10369=$13135.90.

7 0

3 years ago