Answer: Yes, they could save about $5 less per month and still have enough money.
Explanation: Arthur is 10 years old. Tuition for one year at a public two-year college is $3,125. In 8 years, tuition is expected to increase 32%. Arthur’s family plans to save for his college costs for 5 years. If the family saves $75 per month, will there be enough money to pay for the expected cost of one year at the college when he is 18?
Yes they could save $75 and still have enough money to pay for one year at the college when he is 18.
Workings=
12( months) x 5 (years)= 60 months
If the family save $75 monthly for 5 years
$75 x 60 (months)= $4500
At the end of the family 5 years savings, they would be having a total of $4500 which would be more than enough to pay for the expected cost of one year at the college when he is 18.
Answer: Please refer to Explanation
Explanation:
<u>Income Statement </u>
Profitable Company - <em>Bottom line in surplus</em>
Unprofitable Company - <em>Bottom line in Deficit</em>
The Bottomline in the Income statement refers to the Net Profit after all adjustments and deductions have been made. This is the figure that is taken to Retained Earnings and therefore funds the business. If the Bottomline is in Deficit that means the company made a loss and by definition are Unprofitable. The reverse is true.
<u>Balance Sheet</u>
Profitable Company - <em>Financially healthy</em>.
Unprofitable Company - <em>Financially failing</em>.
The Balance Sheet shows the health of a company by checking it's assets vs it's Liabilities and Equity. If it is shown for instance that there is too much debt in the company or that Current Liabilities are more than Current Assets, this shows that the company is not healthy and this is usually a symptom of an Unprofitable company. However a balance sheet showing strong Net Assets and a good Debt - Equity balance is considered healthy and is related to a Profitable Company.
<u>Statement of Cashflow.</u>
Profitable Company - <em>Inward flow of cash</em>
Unprofitable Company - <em>Outward flow of Cash</em>
The Statement of Cashflow (SCF) shows the actual amount of cash that a company has and spends. Other statements can include amounts for which cash has not been paid yet due to the Accrual system in Accounting. The SCF only deals with cash. A Profitable Company will have more cash coming in than going out because it would mean they are making profits as well as being in a strong financial position.
An Unprofitable Company on the other hand will show more cash leaving than coming in. This Outward flow of cash will signify that the company is spending more than it gets which is the sign of unprofitability.
The likely result of having to have a discarded computer that was fully depreciated and the residual value is discarded as it is not present, the transaction will likely cause a loss equal in regards to the residual value that may be recognized.
Answer:
Consumption Function : Relationship between Consumption Spending & Income
Consumption Function Slope = Marginal Propensity Curve (MPC)
Change in Consumption = Change in Income X MPC
Explanation:
Consumption Function is the curve representing relationship between Consumption spending and Income.
C = a + bY ; where :- C = Consumption , Y = Income , a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY
b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function
MPC = ΔC / ΔY .
So, change in consumption i.e ΔC = MPC X ΔY
Answer:
E
Explanation:
A takeover is when a company is faced with a hostile tender offer.
A strategic alliance agreement between firms to come together in order to achieve a joint goal.
A consolidation can occur between firms as a result of the takeover.
Proxy contest is a contest for the ownership of a firm
