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Ghella [55]
2 years ago
6

Nation Furniture is a furniture manufacturing facility. Its workers just signed a two-year contract. The price level in the econ

omy has increased.
a. If the price level increases, input prices will:_____.
a) increase.
b) decrease.
c) remain constant.
b. If the price level increases, output prices will:___.
a) increase.
b) decrease.
c) remain constant.
c. In the short run, the firm will experience a(n):______.
a) increase in economic profits.
b) decrease in economic profits.
c) increase in economic loesses.
Business
1 answer:
Nina [5.8K]2 years ago
6 0

Answer:

  • a. c) remain constant.
  • b. a) increase.
  • c. a) increase in economic profits

Explanation:

a. The workers have just signed a two-year contract which means that in the short run, their wages are fixed to what was agreed to in the contract. Input prices will therefore remain constant.

b. Output prices on the other hand will increase to match the increase in price levels.

c. The company would therefore see an increase in economic profits because they are getting a higher revenue from the increased prices of outputs than they are incurring costs from the constant input prices.

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The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to l
vovangra [49]

Answer:

The one-year liquidity index for these securities is 0.862

Explanation:

For computing the liquidity index, we have to use the formula which is shown below:

= (IBM stock face value ÷ total amount of face value) × (IBM current liquidation value ÷ IBM one year liquidation value) + (GE stock face value ÷ total amount of face value) × (GE current liquidation value ÷ GE one year liquidation value) + (Treasury securities stock face value ÷ total amount of face value) × (Treasury securities current liquidation value ÷ Treasury securities one year liquidation value)

where,

total amount of face value = IBM stock face value + GE stock face value + Treasury securities face value

= $15,000 + $6,000 + $20,000

= $41,000

Now put these values to the above formula

= ($15,000 ÷ $41,000) × ($14,900 ÷ $15,500) + ($6,000 ÷ $41,000) × ($3,000 ÷ $3,400) + ($20,000 ÷ $41,000) × ($15,000 ÷ $19,000)

= 0.365 × 0.961 + 0.146 × 0.882 + 0.487 × 0.789

= 0.350 + 0.128 + 0.384

= 0.862

Hence, the one-year liquidity index for these securities is 0.862

8 0
3 years ago
What is another term for accountability?
OverLord2011 [107]

Answer:

responsibility

liability

answer-ability

reporting

obedience

Explanation:

6 0
3 years ago
Mendrisio Company purchased a piece of machinery for $30,000 on January 1, 2019, and has been depreciating the machine using the
aleksley [76]

Answer:

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

                                   

                                         Debit      Credit

Depreciation Expense $3,000

    Accumulated Depreciation $3,000

Explanation:

According to the given data we have the following:

Sum of year digits=5(5+1)/2

Sum of year digits=(5*6)/2

Sum of year digits=15

Depreciation for year 2019=$30,000*5/15

Depreciation for year 2019=$10,000

Depreciation for year 2020=$30,000*4/15

Depreciation for year 2020=$8,000

Therefore, book value as on january 1, 2021=$30,000-$10,000-$8,000

book value as on january 1, 2021=$12,000

Revised useful life=6 years-2 years=4 years

Therefore, Revised depreciation for 2021=$12,000/4

Revised depreciation for 2021=$3,000

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

                                   

                                         Debit      Credit

Depreciation Expense $3,000

    Accumulated Depreciation $3,000

3 0
2 years ago
Assume that the risk-free rate is 6% and the market risk premium is 8%.
valkas [14]

Answer:

r or expected rate of return - market = 0.14 or 14%

r or expected rate of return - stock = 0.2120 or 21.20%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market risk premium

Under CAPM, the assumption follows that the beta of the market is always equal to 1.

So, expected return on the stock market will be,

r or expected rate of return - market = 0.06 + 1 * 0.08

r or expected rate of return - market = 0.14 or 14%

The beta of the stock is given. We calculate the required rate of return on the stock to be,

r or expected rate of return - stock = 0.06 + 1.9 * 0.08

r or expected rate of return - stock = 0.2120 or 21.20%

4 0
2 years ago
Windspire is starting a firm in the small-scale wind-generated power industry. This industry is still so new that no standard op
liq [111]

Answer:

Emerging

Explanation:

An emerging industry is a group of companies that is created around a new product or idea that is still in the early stages of development. An emerging industry consists of just a small number companies and is often centered around new technology. A example is the small wind generated power industry because wind is not a common source that is used for the generation of power.

4 0
3 years ago
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