different races have different opportunities
Answer: income effect of a price change.
Explanation: The income effect is known as the effect on real income when price changes, it can however be positive or negative. The income effect expresses the impact of increased purchasing power on consumption.
In this scenario, spending $10 for lunch, and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger, this scenario best illustrates the income effect of a price change.
Answer:
D. All of the above
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
3. Cash-flow from financing activities: it represents the cash flow from debt or equity. Basically, the costs used in a financing a business.
<em>The purposes of the statement of cash flows are to;</em>
A. Predict future cash flows.
B. Evaluate management decisions.
C. Determine ability to pay debts and dividends.
Answer:
7.5 Years
Explanation:
The computation of the payback period of the given machine is shown below:
<u>Year Initial outflow Cash flow Cumulative cash flow</u>
(52000)
1 10,000 10,000
2 10,000 20,000
3 10,000 30,000
4 8,000 38,000
5 8,000 46,000
6 2,000 48,000
7 2,000 50,000
8 4,000 54000
9 4,000 58000
10 4,000 62000
Now the Payback period is
= Completed years+ required cash ÷ annual cash inflow
= 7 years + 2000 ÷ 4000
= 7.5 Years
