<span>When the value of money increases, it indicates that fewer dollars are circulating in the economy. This creates a deflationary situation. The banks do not "create" money, but through lowering interest rates and other actions, banks can stimulate the release of some of the money being held back. This, in turn, increases demands for goods and services, which allows the producers of those goods and services to increase their prices to help regulate that demand.</span>
<span>Assuming no other transaction happened during the year, the long term investments in the balance sheet will increase. The answer is letter A.This is because Joan already purchased 10,000 shares of Smith Metals Inc. for $34,000 in exchange for cash and at the same time, she holds 3.2% of the voting stock of Smith Metals Inc. Also, Joan's company, Steel Inc. wanted o hold the stocks for two years.</span>
Answer:
C : $686
Explanation:
The computation of the cash received amount is shown below:
= (Sale value of merchandise - returned merchandise) × (100 - discount rate)
= ($1,000 - $300) × (100 - 2%)
= $700 × 98%
= $686
Since the payment is made within 30 days, so the company could avail the discount of 2% and the return goods should be deducted so that the actual amount of cash received can come.
Answer:
Assume: only one of the ware house expansion projects can be implemented and suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted and vice versa. Also suppose that the purchase of new equipment cannot be undertaken unless the basic research or the extensive warehouse expansion are implemented.
Formulate the corresponding model for maximizing the net present value subject to the restrictions stated above
Yi (1 if investment alternative is selected, o otherwise)
i = 1, 2, 3, 4, 5, 6
Max Z = $4,000y1 + 6,000y2 + 10,500y3 + 4,000y4 + 8,000y5 + 3,000y6
∴ NPV = 17,500
Answer:
d.6.5
Explanation:
The formula to compute the times interest earned ratio is shown below:
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for year + Interest
= $550,000 + $100,000
= $650,000
And, the interest expense = Bonds payable × rate of interest
= $1,000,000 × 10%
= $100,000
Now put these values to the above formula
So, the ratio would equal to
= $650,000 ÷ $100,000
= 6.5 times
