Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales. This result will be different with an increase by a similar margin in the Cost of Goods Sold.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales is an expression of the ratio of the net income to the sales revenue. The net earnings result after deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Economy. And it may be good on the environment, but economy is what best fits this question.
Answer:
10.14
Explanation:
Velocity of money measures the rate at which money changes hands or is exchanged in an economy.
Velocity = (Price × aggreagrate income) / money supply
(1.69 × $15000) / $2500 = 10.14
Answer: A. I and IV only
Explanation:
The relationship between bond prices and interest is an inverse one. This is because bonds have fixed rates so when for instance interest rates increase, the fixed rate of bonds will become less attractive as people would want to make the higher interest. They will therefore demand less of bonds and the prices will drop. The reverse is true.
Also, long term bonds are more affected by interest rate changes then short term bonds. This is because, as they have a longer term till maturity, they will be even less attractive when interest rates rise.
