Answer:
Budget Line rotates inwards (leftwards/ downwards) on that axis, optimal quantity demanded at that higher price .
Explanation:
Budget line represents product combinations that a consumer can afford , using all income with given prices & income.
If price of a product increases, the consumer can consume lesser amount of the product due to higher prices . So, the budget line rotates inwards (leftwards / downwards) on the corresponding x / y axis denoting that good.
So, inwards rotation of the budget line on the corresponding axis representing the price risen good - leads to reduction in the quantity of the good whose price has risen.
Answer:
The correct answer is C. Credits decrease assets and increase liabilities.
Explanation:
A credit is a provision of money in the form of a loan, granted by a creditor (lender) to a debtor (borrower). For the creditor, the transaction gives rise to a claim on the borrower, under which he can obtain repayment of the funds and payment of remuneration (interest) according to a fixed schedule. For the borrower, whether it is a business or an individual, the credit establishes the existence of a debt (increasing liabilities) and opens the availability of a temporary financial resource.
Answer: C. Farah wants to obtain her college degree in four years
A time bound goal has a specific, measurable time-frame within which a specific goal has to be achieved; it can also set as a specific target to be achieved at periodical intervals.
Amongst the options given, only option C has a specific, measurable and well-defined time frame within which a specific goal is set to realized.
Answer:
1,350 units; 918 units
Explanation:
Ending inventory:
= Beginning inventory + Units started - Units completed and transferred
= 750 + 9,500 - 8,900
= 1,350
Equivalent units of ending work in process for Materials:
= 100% complete × Ending inventory
= 100% × 1,350
= 1,350 units
Equivalent units of ending work in process for Conversion:
= 68% complete × Ending inventory
= 68% × 1,350
= 918 units
Answer:
a) DuPont analysis for Johnson International
2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%
2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%
2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%
b) DuPont analysis for industry averages
2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%
2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%
2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%
c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.
Explanation:
The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:
R
OE = net pro
fit margin x total assets turnover x financial leverage
