Answer:
$48,000
Explanation:
Computation for Brain's cash flows from operating activities
CASH FLOW FROM OPERATING ACTIVITIES
Net income$45,000
Add: Decrease in Account receivable $1,000
($23,000-$22,000)
Add: Increase in Account Payable $2,000
($26,000-$28,000)
Cash flows from operating activities $48,000
Therefore Brain's cash flows from operating activities would be: $48,000
Answer:
the total partner equity is $105,000
Explanation:
The computation of the total partner equity is shown below;
= Capital contributions × number of partners - withdrawn amount by the partners + total profit
= $50,000 × 2 - $5,000 - $7,500 + $17,500
= $105,000
hence, the total partner equity is $105,000
Therefore the correct option is B.
Answer:
(1)$42.4 (2)$50.50 (3)$85.32
Explanation:
Solution
Given that:
(1) The current stock price is computed below:
Stock price, P0 = D1÷(r-g)
Where
D₁ = the next dividend expected
r = the return required
g = he growth rate
Thus
= $1.60×(1+6%)/(10%-6%)
$42.4
(2) The formula for the stock price in three years is given below:
Stock price, P3= D4÷(r-g)
Here
D₁ = the next dividend expected
r = the return required
g = he growth rate
= $1.60×[(1+6%)^4]/(10%-6%)
= $50.50
(3) Now we determine the price of the stock in 12 years
P12 = D13÷(r-g)
Here
D₁ = the next dividend expected
r = the return required
g = the growth rate
= $1.60×[(1+6%)^13]/(10%-6%)
= $85.32
Inadequate capital. Entrepreneurs do not have enough money to venture into sectors they are willing to.
Marketing strategy. They do not know the best way to advertise their products.
It takes days or weeks to get the right people to work for you.
Answer:
B. Opportunity Cost
Explanation:
Comparative Advantage is when an economy can produce certain goods & services at a lower opportunity cost than other trading economies.
Opportunity cost is the cost of next best option forgone while choosing a particular option.
Comparative advantage (production ability at lower opportunity cost) implies: Economy can produce a good/ service by sacrifising lesser amount of other good, than the other economy.
Example : Production Possibilities of 2 countries, 2 goods :-
Good X Good Y Opportunity Cost (Goods Ratio)
Country A 10 30 1:3 (10/30)
Country B 5 10 1:2 (5/10)
Country A can produce Good Y by sacrifising 3 units of Good X, Country B can produce Good Y by sacrifising 2 units of Good X. So, B can produce good Y at lesser opportunity cost than A. Hence, country B has comparative advantage in good Y.
