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Rasek [7]
3 years ago
14

In order to receive positive cash returned on investment, the rate of return on an investment during periods of inflation should

Business
1 answer:
Serga [27]3 years ago
5 0

Answer:

should exceed the rising price level.

Explanation:

Inflation occurs when there is a general increase in prices of goods and services in an economy. The price of a basket of goods increases so the purchasing power of money is reduced.

For example when a gallon of petrol sells for $50 under inflation it can rise to $100. More money will be needed to buy the same amount of goods.

In this situation the rate of return of an investment will need to be above the rising price level to maintain a positive cash flow.

This is because value of money has reduced so returns needs to be higher to make positive cash flow.

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At the end of its first month of operations, JMP Consulting reported net income of $25,000. They also had account balances of: C
garri49 [273]

Answer:

The amount of total stockholders’ equity reported on the balance sheet at month-end is $30,000.

Explanation:

Stockholders’ equity comprises retained earnings, common stock and any other statutory reserves. The retained earnings is the accumulation of net income or loss over years minus dividend paid while common stock is the value of the shares owned by the owners or the public and the owners are entitled to dividends.

The amount of total stockholders’ equity reported on the balance sheet at month-end is simply $5,000 + $25,000 = $30,000.

6 0
3 years ago
Josh's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs $3. Josh knows
egoroff_w [7]

Answer:

The answer is: Josh's utility maximizing point is when he buys 2 pizzas and 4 burgers.

Explanation:

If Josh gets equal marginal utility per dollar spent when buying one pizza and 2 burgers, that means that every pizza and every burger give Josh 10.67 utility unit per dollar spent. So Josh can obtain maximum 16 units of utility with his budget and his purchasing options (= $24 x 0.67 units of utility per dollar). The way he can maximize his utility is by buying two packs of one pizza and two burgers per pack, since every pack will give him 8 units of utility.

8 0
4 years ago
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $526 and B for $53
MrMuchimi

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
All the following are benefits of attending a community college except that
KengaRu [80]

Answer:

its easier to receive a bachelor's degree there.

5 0
3 years ago
Business combinations historically have been accounted for as either purchases or poolings of interests. Now, with SFAS 141(R),
lora16 [44]

Answer:

Explanation:

FASB amended the rules to improve the comparability of the information about business combinations provided in financial reports. A variable interest entity is a legal business.

The Financial Accounting Standards Board issued SFAS 141(R) in 2007 December, to substitute the SFAS 141. Evaluating the comment letters, articles and industry publications, they analyzed issues that were with SFAS 141 from the perspective of professionals, users and the FASB; it was evaluated 141(R) to ascertain these weaknesses and they were corrected with solutions been profound in 141(R).

8 0
3 years ago
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