Answer:
RELATIVELY INELASTIC
more elastic
less
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
If demand is relatively inelastic and price increases, there would be little or no change in the quantity demanded and as a result, total revenue would increase
If demand were elastic and prices were increased, quantity demanded would fall more than the increase in price. As a result, total revenue would fall
In the long run, people have more time to search for suitable alternatives. Thus, demand tends to be more elastic in the long run
If the long run, price is increased, the total quantity demanded would fall and revenue would fall
Answer:
Adjusted cash balance : $25850
Explanation:
The goal of a reconciliation statement is to ascertain the differences between the banks records and the depositor’s records and make accounting changes as deemed appropriate. There is a general flow that is used to make the correcting entries:
1. The process flow starts with the bank’s ending cash balance
2. Add any deposits made by the company to the bank that are in transit
3. Deduct any cheques that are uncleared by the bank
4. Add or deduct any other differences available as necessary
5. In the company bank records, once again start with the ending balance
6. Add interests earned
7. Deduct any bank service fees, penalties and NSF (Non-Sufficient Funds) cheques.
8. Add or deduct any other differences available as necessary
At the end of this process, it is likely that both accounts would be equal and tally.
Please refer attached table for details on the calculation.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Carson Company purchased a depreciable asset for $280,000. The estimated salvage value is $14,000, and the estimated useful life is 10,000 hours. Carson used the asset for 1,500 hours in the current year. The activity method will be used for depreciation.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(280,000 - 14,000)/10,000]*1,500= $39,900
Answer:
should choose option a
Explanation:
option a)
annuity due, 31 payments of $180,000 per year, 6.25% discount rate
Present value = $180,000 x 14.40432 (PV annuity due factor, 6.25%, 31 periods) = $2,592,726
option b)
$500,000 today + ordinary annuity, 30 periods, 6.25%, $144,000
present value = $500,000 + ($144,000 x 13.40432 [PV annuity factor, 6.25%, 30 periods)] = $2,430,222
Answer:
$37,000
Explanation:
Working capital indicates the difference between a company's current assets and its current liabilities.
Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.
in this case,
Current assets include
Inventory $50,000
Cash at Bank $ 5,000
prepaid rent <u> $5,000</u>
Total current assets <u>$60,000</u>
current liabilities
Notes Payable $20,000
tax payable <u> $3,000</u>
Total current liabilities <u> $23,000</u>
Working capital
= $60,000 - $23,000
= $37,000
