Answer:
A) repay the short-term obligations out of the sales revenue.
Explanation:
Tidewater should use their profits to try to lower their total debts, specially short term obligations. The problem with short term obligations is that the company continuously needs an inflow of cash to repay them.
It is not something unusual for retailers to take 1-3 month credits to purchase and resell merchandise, but they always have the risk of not being able to sell enough merchandise one month to cover their costs and their debt payments.
Long term debt is always more manageable since you have more than a year to pay them back and the interest rates are usually lower.
Answer:
e. Company Heidee has a higher ROE than Company Leaudy.
Explanation:
Return on equity measures how well the management of a business uses owner's equity to get returns. It is calculated by dividing net income by owner's equity.
That is
ROE= Net Income ÷ Owner's equity
Considering the accounting equation
Asset= Liability + Owner equity
Owner equity= Asset - Liability
From the equation when a company that take on more debt owner's equity will reduce.
The effect of reduction in owner's equity on Return on Equity is that it will increase the ratio, since owner's equity is the denominator.
In this scenario both companies have the same profit margin so if company Heidee has higher debt ratio it follows that it also has a higher ROE than Company Leaudy
The marginal propensity to consume tells us by how much consumption expenditure changes when disposable income changes.
<h3>What is marginal propensity?</h3>
In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
<h3>What is the MPC and MPS?</h3>
Key Takeaways. The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent.
Learn more about marginal propensity here:
<h3>
brainly.com/question/17930875</h3><h3 /><h3>#SPJ4</h3>
Answer:
a. by making long trips less expensive
b. by making long trips in less time
c. by opening up new trade markets
e. by increasing travel options
Explanation:
