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3 years ago

Will there always be a demand for inferior goods? how could demand for an inferior good decrease? explain.

1 answer:

8 0

Mainly income is a huge factor here, if income somehow manages to decrease then there will be a demand on inferior goods because people cannot afford superior goods anymore

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During 2017, Ziplock Manufacturing expected Job No. 89 to cost $700,000 in overhead, $1,000,000 in direct materials, and $500,00

irga5000 [103]

Answer:

a. not able to be determined from the provided information.

Explanation:

For determining the over applied or under applied, first, we have to compute the predetermined rate based on the direct material cost which is

= $700,000 ÷ $1,000,000

= $0.70

Now the applied overhead is

= $0.70 × $1,200,000

= $840,000

And, the actual overhead amount is not given by which we can find out the underapplied or overapplied overhead amount

So, in this case, the correct option is a.

7 0

3 years ago

A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

denis-greek [22]

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1) $170,000

Cash flow from operating activities

Depreciation expense $25,000

Increase in account receivable $(20,000)

Increase in inventory $(10,000)

decrease in Prepaid Expenses $25,000

Decrease in Accounts Payable $(20,000)

Increase in Deferred Revenue $30,000

Cash flow $30,000

Net cash flow from operating activities $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.

3 0

3 years ago

Neutrino Industries stock trades at $49 per share and there are 120 million shares outstanding. The management would like to rai

Gelneren [198K]

Answer:

Neutrino Industries must sell 8.68 million shares to raise $400 million.

Explanation:

To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:

Gross proceeds = $49 * B, or $49B

Underwriter charges = 6% * $49B = $2.94B

To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:

$49B – $2.94B = $400,000,000

$46.06B = 400,000,000

B = 400,000,000 / 46.06

B = 8,684,324.79 shares, or 8.68 million shares.

Therefore, Neutrino Industries must sell 8.68 million shares to raise $400 million.

4 0

3 years ago

If interest rates in general were to fall, 1. the prices of existing bonds would rise 2. the prices of existing bonds would fall

IRINA_888 [86]

Answer:

1. the prices of existing bonds would rise

Explanation:

General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.

Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.

So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.

7 0

3 years ago

Lok Co. reports net sales of $5,856,480 for 2016 and $8,679,690 for 2017. End-of-year balances for total assets are 2015, $1,686

mart [117]

Answer:

2016 = $3.36

2017 = $4.59

Explanation:

The solution of total assets turnover is shown below:-

Particulars 2016 2017

Total assets in the beginning $1,686,000 $1,800,000

Total assets at the end $1,800,000 $1,982,000

Average assets $1,743,000 $1,891,000

(Assets in the beginning + Assets at end) ÷ 2

Sales revenue $5,856,480 $8,679,690

Total assets turnover $3.36 $4.59

(Sales revenue ÷ Average Total assets)

4 0

3 years ago