Answer: Worsen; benefits
Explanation:
Specific Automakers is signing a long term contract with the union who are the representative of workers.
Real wages should increase by = 2%
Expected inflation = 5%
Nominal wage increase = 7%
Actual inflation = 6%
Actual inflation is greater than expected inflation, so this would worsen the union and it is beneficial for the automakers because now real wage increase is only:
= Nominal wage - Actual inflation rate
= 7% - 6%
= 1%
This is an example of re-distributive cost of inflation.
Answer: 1.-a little
explain- I don't even know you but you don't seem mean
Answer:
a. The company must have had net income equal to zero in 2009.
Explanation:
If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that the company must have had net income equal to zero in 2009.
Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.
However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.
In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009
Answer:
the balance sheet is missing:
Balance Sheet (In millions of Dollars)
ASSETS
Cash $6.0
Accounts Receivable 14.0
Average Inventory 12.0
Fixed Assets, net 40.0
TOTAL ASSETS $72.0
LIABILITIES AND EQUITY
Accounts Payable $10.0
Salaries and Benefits Payable 2.0
Other current Liabilities 10.0
Long-term debt 12.0
Equity 38.0
TOTAL LIABILITIES AND EQUITY $72.0
a. Determine the length of the inventory conversion period.
- inventory conversion period = average inventory / (COGS/365) = 73 days
b. Determine the length of the receivables conversion period.
- receivables conversion period = accounts receivables / (net sales/365) = 51.1 days
c. Determine the length of the operating cycle.
- length of operating cycle = 73 + 51.1 = 124.1 days
d. Determine the length of the payables deferral period.
- length of the payables deferral period = accounts payables / (COGS/365) = 60.83 days
e. Determine the length of the cash conversion cycle.
- cash conversion cycle = 73 + 51.1 - 60.83 = 63.27 days
f. What is the meaning of the number you calculated in Part e?
- How long does it take to turn inventories into cash, it is a measure of asset liquidity.
Answer:
d. 0.2
Explanation:
D = 500
R = 100
D*rr = R
500*rr = 100
rr = 100/500
= 0.2
Therefore, The required reserve ratio is a 0.2
