Answer: Retires $20,000 (000) in long-term
Explanation:
The action that will expose Digby to the most risk of needing a loan is the one that will involve using the most cash that the firm has.
By retiring Long term loans of $20,000 (000), Digby runs the risk of needing an emergency loan in the future because they did not take enough action to finance the company vs the amount in the cash balance that will be spent if they do indeed retire long term loans of that amount.
They have $19,743 (000) and yet only issued 100 (000) shares and $200 (000) of long-term debt. Should they payoff $20,000 (000), their cash flow will take a drastic hit which increases the likelihood of needing an emergency loan.
Since the problem doesn’t give the choices for these questions. I will be giving you the factors that affect the elasticity:
1. Labor costs as percent of total costs – when labor expenses have a high share in total costs then labor demand is more elastic.
2. Easiness and cost of factor substitution – when the firm can substitute rapidly and effortlessly between labor and capital inputs.
3. Price elasticity of demand for the final output produced – if the business is working an extremely competitive market where the final demand of the product is elastic and as a result the demand for labor is more elastic.
Answer:
0.208
Explanation:
Probability is a value that determines how likely a event of outcome incur. It is expressed in ratio to the total value.
Conservative Moderate Liberal Totals
Male 104 81 88 273
Female 51 68 108 227
Totals 155 149 196 500
104 of the residents are conservative men from total of 500 residents, this value will be used to determine the probability.
Probability = Numbers of Conservative Man / Total Residents = 104 / 500 = 0.208
Answer:
b.insurance costs during construction
Explanation:
As we know that the building is come under the fixed assets whose life can be 10 years or more
So while constructing the building various cost is included i.e manufacturing cost which comprises of material, labor, and overhead
Plus, the insurance cost that is to be incurred during the construction period is also included
Hence, b option is correct
Answer:
Company's equity = $25,000
Explanation:
Given:
Amount invested = $15,000
Earned Revenue = $35,000
Expenses = $23,000
Cash dividend = $2000
Find:
Company's equity
Computation:
Company's equity = $15,000 + $35,000 - $23,000 - $2,000
Company's equity = $25,000
