The expected increase in revenues is $2,20,000
.
The expected increase in costs is $1,40,000.
The Selling price per unit for the new 10,000 units order is $22. So, increase in revenues is to the extent of (10,000 × $22).
The question assumes excess capacity, hence fixed expenses will remain the same. The increase in Variable costs to the extent of (10,000 × $14) will contribute to an increase in costs.
The calculation looks like this:
182000 in net income
Less: Equipment sales revenue (12300)
Add: 50,000 in depreciation costs
Less: An increase in stock (35400)
Add: Decline in receivables by 28800
Add: 23700 more dollars in accounts payable
$236,800 in cash flow from operating operations
As a result, we may say that $236,800 is the total amount of cash flows from operating operations calculated using the indirect technique.
Cash Flow
The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow. Money spent and money received reflect inflows and outflows, respectively.
Fundamentally, a company's capacity to produce positive cash flows, or more specifically, its capacity to optimize long-term free cash flow, determines its ability to create value for shareholders (CFC). FCF is the cash a company generates from its regular business activities after deducting any funds used for capital expenditures .
To learn more about Cash Flow
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Answer:
Decrease of interest rates will lead to monetary expansion, however higher consumer spending in the long run would not have the same effect,as only investments lead to economic growth.
Explanation:
Capital stock is the total amount of capital used in the production of goods and services, including factories, buildings, tools and machinery. In both short and long term, decrease of interest rates, leads to monetary expansion as it becomes cheaper to borrow money and this leads to aggregate demand and supply curves shift to the right. The short run aggregate supply curve is affected by production costs, taxes and costs of labor (wages). The long run is affected by the events that change the output of the economy. In the short run, some components such as capital invested are constant, only with cheaper labor and technological progress, shifts of the curve are possible. However, changes of interest rates in both short and long term period would have the same effect. Higher consumer spending in the long run would not have the same effect as only investments cause economic growth or the increase of capital stock.
I will keep it if it didn’t have a track or have a tag to belong to someone
Answer:
A) 230 million
B) 10%
Explanation:
Given:
Total Population = 500 millions
Population Under 16 Years of Age or Institutionalized = 120 millions
Not in Labor Force = 150 millions
Unemployed = 23 millions
Now,
A) Labor force
= Total population – Population under 16 years of age – Not in labor force
= 500 – 120 – 150
= 230 millions
B) Unemployment rate =
or
Unemployment rate =
or
Unemployment rate = 10%