Spending will increase.
Demand will increase.
The consumer confidence index is a measure of how "confident" the population of the United States is in the economic status of the US. Thus, both these values will increase!
Answer:
when the velocity of money is high, it means each dollar is moving fast to purchase goods and services. It reflects high demand,which generates more production. When the velocity is low, each dollar is not being used very often to buy things.
Answer:
the acid-test ratio is 1.5 times
Explanation:
The computation of the acid-test ratio is as follows:
Acid test Ratio = Quick assets ÷ current liabilities
where,
Quick Assets is
= Cash + short tern investments + Account receivable
= $3,500 + $50,000 + $56,000
= $109,500
And, the current liabilities is $73,000
So, the acid-test ratio is
= $109,500 ÷ $73,000
= 1.5 times
Hence, the acid-test ratio is 1.5 times
Answer:
$6490
Explanation:
The computation of the ending inventory is shown below:
= (January ending inventory in units × price) + (February ending inventory in units × price) + (May ending inventory in units × price) + (September ending inventory in units × price) + (November ending inventory in units × price)
= (8 units × $113) + (9 units × $124) + (13 units × $136) + (7 units × $144) + (11 units × $154)
= $904 + $1,116 + $1,768 + $1,008 + $1,694
= $6,490
Answer:
62,500 shares
Explanation:
common stock = 500,000 shares
Total shares outstanding = 40 million
Percentage of existing holding:
= (Shares of common stock ÷ Total shares outstanding) × 100
= (500,000 ÷ 40,000,000) × 100
= 1.25%
New shares that can be purchased:
= Number of new shares sold × Percentage of existing holding
= 5 million × 1.25%
= 62,500 shares
