Answer:
$48,880
Explanation:
beginning principal $50,000
installment payment $5,120
effective interest rate 8%
since you first pay interest and then principal, we must calculate the amount of interest paid = $50,000 x 8% = $4,000
now we subtract the interest paid from the total payment = $5,120 - $4,000 = $1,120
so the principal was reduced by $1,120, that means that the new balance = $50,000 - $1,120 = $48,880
Answer:
Current Assets (in order of liquidity)
Cash $4,100
Debt Investments (Short-term) $7,600
Accounts Receivable $12,500
Supplies $5,200
Prepaid Insurance $4,500
Answer:
∵ MU A / P A > MU B / P B
∴ A purchased & consumer more , B purchased & consumed less.
Explanation:
Consumer is at utility maximising equilibrium, where Marginal Utility per unit of price spent is equal for both goods consumed by consumer.
MU A / P A = MU B / P B
MU A / P A = 16 / 2 = 8
MU B / P B = 24 / 4 = 6
In above case : MU A / P A > MU B / P B [ ∵ 8 > 6 ]
This implies consumer is getting more utility (satisfaction) per unit of price spent on Good A , than that of Good B.
So, consumer Thompson will consumer more of Good A & less of Good B.
Answer:
1. Operating plan.
2. Operating plan.
3. Financial plan.
4. Dividend policy.
5. B and C.
Explanation:
1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.
2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.
3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.
4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.
Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.
Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.
Hence, the following statements are true about financial planning;
I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.
II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.
Answer:
6 Cookies {or any >5, <7)
Explanation:
Theory of Comparative Advantage states : A person/ economy having lesser opportunity cost (i.e other good sacrifised) to attain a good, should sell it to - other person/ economy having the good's higher opportunity cost.
Trade is beneficial if the terms of trade exchange ratio is better than own account production sacrifise ratio.
Bill can bake a pie with opportunity cost of 5 cookies. Fred can bake a pie with opportunity cost of 7 cookies. Bill has less opportunity cost of Pie in terms of Cookies, so should sell it to Fred.
The trade between them will be beneficial only if : both of them gain from trade - i.e get a good at lower opportunity cost than their own. Fred getting 1 pie per 6 cookies is better than his own sacrifise ratio i.e 1pie : 7 cookies. Bill getting 1 cookie per 0.16 (1/6) pie is better than his own sacrifise ratio i.e 1cookie : 0.25pie (1/5)