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geniusboy [140]
3 years ago
5

NNR Inc.'s balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets. All of these assets were

required in operations. The firm's current liabilities consisted of $475,000 of accounts payable, $375,000 of 6% short-term notes payable to the bank, and $150,000 of accrued wages and taxes. Its remaining capital consisted of long-term debt and common equity. What was NNR's total investor-provided operating capital? Select one: a. $4,694,128 b. $4,941,188 c. $5,201,250 d. $5,475,000 e. $5,748,750
Business
1 answer:
Finger [1]3 years ago
5 0

Answer:

d. $5,475,000

Explanation:

For computing the total investor-provided operating capital, first we have to compute the total assets and total current liabilities which is shown below:

Total assets = Current assets + net fixed assets

                    = $1,875,000 + $4,225,000

                    = $6,100,000

Now the total current liabilities = Accounts payable + short term notes payable + accrued wages and taxes

= $475,000 + $375,000 + $150,000

= $1,000,000

Now the long term liabilities would be

= $6,100,000 - 1,000,000

= $5,100,000

So, the  total investor-provided operating capital would be

= Long term liabilities  + short term notes payable

= $5,100,000 + $375,000

= $5,475,000

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In this scenario, there is no strategy that Martha can embark on that would provide the greatest payout regardless of Oleg's decision. If Martha advertises, Oleg makes the same amount advertising as well. If Martha does not advertise, Oleg would decide not to advertise as well and make the same amount.

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5 0
3 years ago
On January 1, Jamaica Company purchased equipment for $18,000. The estimated salvage value is $2,000 and the estimated useful li
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Answer:

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8 0
3 years ago
The separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals is
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What is the separation of a manufacturing process?

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What is conditioning withinside the production system?

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6 0
2 years ago
How much would Keith have in his account after three years if he started with $200 and earns 2 percent interest, compounding ann
padilas [110]
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3 0
3 years ago
Read 2 more answers
Why does the​ self-correcting mechanism stop working when the policy rate hits the zero lower​ bound?
Alex73 [517]

The available options

A. The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower​ bound, and this increase depresses planned spending and further widens the output gap.

B. The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower​ bound, and this decrease depresses saving and investment and therefore further widens the output gap.

C. The​ self-correcting mechanism stops working because the rising inflation produced by a negative output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower​ bound, and this decrease depresses planned spending and further widens the output gap.

D. The​ self-correcting mechanism stops working because the rising inflation produced by a positive output gap produces lower rather than higher real interest rates when the policy rate hits the zero lower​ bound, and this decrease enhances planned spending and further widens the output gap.

Answer:

A

Explanation:

For a given situation in the question above the correct answer is Option A, which is: The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower​ bound, and this increase depresses planned spending and further widens the output gap.

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