Given what we know, we can confirm that capitalism encourages businesses to be more efficient to compete successfully on the price and quality of the product.
<h3>Why does capitalism encourage this competition between businesses?</h3>
- This is due to the fact that through capitalism, there are more entities offering the same service.
- This means that consumers will have to choose where to buy.
- This will be based on the price and quality of the service or product.
- Therefore, businesses are forced to compete in these areas to attract customers.
Therefore we can confirm that capitalism encourages businesses to be more efficient to compete successfully on the price and quality of the product in order to attract the limited amount of consumers for a product that is offered by many companies.
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Answer:
Current ratios:
Peter Company Answer = 5
Paul Company Answer = 2.5
Peter company has the higher liquidity than the Paul company. Its current ratio is double than the Paul's.
Explanation:
Company : Peter Paul
Current assets $200,000 $50,000
Current liabilities $40,000 $20,000
To calculate Liquidity we will us following ratio formula:
Current Ratio = Current Assets / Current Liabilities
Peter Company
Current Ratio = $200,000 / $40,000 = 5
Paul Company
Current Ratio = $50,000 / $20,000 = 2.5
Peter company has the higher liquidity than the Paul company
Answer:
In the March 31 statement of financial position, the company should record the futures contracts as a loss and liability of $100,000
Explanation:
GAAP specifies that all derivatives instrument and hedging activities recorded in the balance sheet are assets and liabilities and measured at fair value.
At the starting of the futures contracts, the fair value is $0 since the prices of the future contract was entered at that date.
Given that 200 futures contracts was sold at the commodity exchange foo $$0.83/lb and each contract was for 25,000 lb. Therefore a fair value hedge of 5 million lb. (25,000 lb. × 200 contracts) of copper at $0.83/lb is expected to be delivered.
The price had risen to $0.85/lb at the date of the financial statements, Copper Monkey should record a loss and liability = (5 million lb) × ($0.83 – $0.85) = 5000000 × 0.02 = 100000
Copper Monkey should record a loss and liability of $100,000
<span>Lotina deciding to apologize to her subordinate for the email that she sent that upset him is Lotina expressing consideration behavior. She recognized that she used a poor choice of words to express her idea and she let him know that not only was she sorry for that, but she would love an opportunity to sit down and discuss the ideas.</span>
Answer:
Newark's cost of sales is A $307,000
Explanation:
Cost of Sales can be determined by using the Missing figure Approach for this question.
Cost of Sales = Sales less Gross Profit
<u>Calculation of Sales figure :</u>
Cash sales, $450,000
Credit sales, $1,350,000
<em>Less</em> Sales returns and allowances, ($90,000)
<em>Less</em> Sales Discounts ($43,000)
Sales $1,667,000
<u>Calculation of Cost of Sales</u>
Thus Cost of Sales = $1,667,000 - $1,360,000 (given)
= $307,000
