Answer:
The answer is stated below:
Explanation:
The challenges which one would face and these are:
1. Hiring especially and retaining the top talent.
2. Secure the budget.
3. Economic fluctuations.
4. Trained professionals.
5. Evaluation of ROI (Return on Investment) on activities of the marketing.
When the company or firm faces the limitations grounded on the real world situations then all of the mentioned above will be a challenge for the company. The firm or the company will have to meet the fluctuation which is linked with the economic conditions as well as the currency.
When the assumptions are build as a simulation then the company or the firm will not be in a position to take the risk. The assumption could cause the firm to travel safely in the economy, in order to take or face the challenges the firm should ready to face the risks and have the plans in respect to tariffs, currency and other barriers.
If the firm wants to play safe then should be open to all the fluctuations and prepared to meet the ups as well as downs in the business.
So, assumptions should be made in such a way that they safeguard or protect the company but should not be such that it will limit the company growth.
Based on the concept of expected value, the units that the company should order to meet February demand is <u>57 units.</u>
<h3>What is expected value?</h3>
In mathematics under the probability distribution theory, the expected value is the weighted average of possible values of some random variables. The weights are based on the theoretical probabilities of the variables.
<h3>Data and Calculations:</h3>
Cost per unit = $20
Selling price per unit = $50
<h3>Projected Demand</h3>
Demand Units Probability Expected Demand Units
1. 50 units 40% 20 units (50 x 40%)
2. 60 units 50% 30 units (60 x 50%)
3. 70 units 10% 7 units (70 x 10%)
Total expected demand units = 57 units
Thus, the expected demand in February is <u>57 units</u>.
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Answer:
A. The government lowers tax rates and undertakes a replacement of old bridges and roads
B. The government lowers tax rates and issues a partial refund of taxes that have already been paid
These 2 statements are correct explained below
Explanation:
A. The government lowers tax rates and undertakes a replacement of old bridges and roads, this statement is correct because when the government lowers tax rates it means that people have higher disposable income on their hands therefore they can spend more which increases demand, and people also invest more which increases supply, also the replacement of bridges and roads is improvement in infrastructure and this also increases supply as transportation is easier and cheaper for businesses.
B. The government lowers tax rates and issues a partial refund of taxes that have already been paid, this statement is correct because when the government lowers tax rates it means that people have higher disposable income on their hands therefore they can spend more which increases demand, and people also invest more which increases supply, also refund of taxes will increase the disposable money that people have so they can invest and consume both which will increase both supply and demand.
C. The government raises tax rates and reduces unemployment insurance payment
This is contraction fiscal policy and will do the opposite of expansionary fiscal policy, that is why this statement is incorrect.
D. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. This statement is wrong because lowering the interest rate is an expansionary monetary policy and not an expansionary fiscal policy.
Because of those issued transaction, Edwards Co. must provide the disclosure about the stock issuance in the footnotes included with the December 31, Year 1 financial statements
A Footnote is a section for financial disclosure that shows how the numbers in the statement of financial position and cash flow statements were determined.
- Here, there are various stocks in Edward Company which were issued in the accounting year.
Hence, because of those issued transaction, Edwards Co. must provide the disclosure about the stock issuance in the footnotes included with the December 31, Year 1 financial statements
Read more about Footnote
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Answer:
$46,000
Explanation:
The computation of the total liabilities at the end of the first year is shown below:
We know that
Total assets = Total liabilities + stockholder equity
where,
Total assets = Cash + land + short term investment
= $102,000 + $40,000 + $14,000
= $156,000
Stockholder equity = Common stock + net income - dividend paid
= $50,000 + 72,000 - $12,000
= $110,000
So, the total liabilities would be
= $156,000 - $110,000
= $46,000
Working Note:
The net income is
= Revenue - cost of goods sold - Salaries Expense - Utilities Expense - Advertising Expense
= $160,000 - $46,000 - $21,000 - $11,000 - $10,000
= $72,000