Demand means the consumers want the product or service. If there is a demand, companies must supply. "supply and demand"
Answer:
Operations.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
A cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
The activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities. All the net income or cash from all operational business activities of a company is recorded as operating activities.
Hence, operations is a function of business that focuses on ongoing activities at the business with a focus on running efficiently. Simply stated, operations has to do with all the day-to-day tasks, responsibilities and functions that are being performed for the successful and smooth running of a business.
Answer:
Daniel Hair Stylists
Balance Sheet
For the year ended December 31, 2018
<u>Assets</u>
Current assets
- Cash $1,000
- Accounts Receivable $900
- Office Supplies <u> $600</u>
Total current assets $2,500
Non-current assets
- Equipment, net $19,700
- Accumulated depreciation <u> ($2,000) $17,700</u>
Total non-current assets <u>$17,700</u>
Total assets $20,200
<u>Liabilities</u>
Current liabilities
- Accounts Payable $900
- Interest Payable <u>$550
</u>
Total current liabilities $1,450
Total long term liabilities <u>$3,400</u>
Total liabilities $4,850
<u>Owner's Equity</u>
Owner's equity
- Retained earnings $4,700
- Common stock <u> $10,650</u>
Total owner's equity <u> $15,350</u>
Total liabilities and owner's equity $20,200
Answer:
Reduce the labor employed.
Explanation:
Generally the profit maximizing level of activity is where the marginal revenue product of labor is equal to or greater than the wage rate paid. This means that the 5th worker is actually not generating any positive revenue for the farmer as its contribution to revenue is,
Total contribution = Marginal product * price = 3 * 2 = $6
Where as wage paid is $10 thus it gives a contribution of 6-10 = -$4.
Thus the farmer is advised to reduce labor employed.
Hope this helps.