Answer:$856,838.40
Explanation:
The sales revenue will should be the present value of paying $160,000 annually for 7 years. This is an Annuity but one that is paid at the beginning of a period making it an Annuity due.
Present Value of Annuity Due = Payment * (Present value of Annuity Interest factor, rate, period) * ( 1 + rate)
Present Value of Annuity Due = Payment * (Present value of Annuity Interest factor, 10%, 7) * ( 1 + 10%)
= 160,000 * 4.8684 * 1.1
= $856,838.40
Answer:
along, outward
Explanation:
Complementary goods are goods that complement each other in demand. An increase in quantity demanded of one product leads to increase in sand of the other.
For example tea and sugar. Since tea and sugar are taken together, an increase in demand for tea should result in increased demand for sugar also.
So a decrease in X above will lead to increased demand for X which also increase demand for its complement (Y).
An outward shift in Y means that at all prices Y's demand has increased (demand shift outward).
Answer:
Correct option : c. a decrease of $150,000
Explanation:
Based on the information given in Year 1 inventory shows the amount of $100,000 while the inventory in Year 2 shows the amount of $250,000 which simply means that inventory that is purchased is higher than the inventory that is sold which will inturn lead to outflow of cash because cash is been paid , hence cash will decreased by the amount of $150,000($100,000-$250,000).
Therefore the cash flow from accounts receivable would be recorded as:a decrease of $150,000
Answer:
A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm
and
A plausible reason why Blue Hamster Manufacturing Inc.’s price to free cash flow ratio has decreased is that investors expect lower cash flow per share in the future
Explanation:
Please refer the calculated ratios below
Ratios Calculated
Year 1 Year 2 Year 3
Price to cash flow 6.80 4.76 3.81
Inventory turnover 13.60 10.88 8.70
Debt to equity 0.60 0.48 0.38
The rate of interest the Federal Reserve charges banks for short-term loans is called the
discount rate.