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svetoff [14.1K]
3 years ago
10

Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's li

quidity, what should he do
Business
1 answer:
Lunna [17]3 years ago
5 0

Answer: d. Calculate his net working capital

Explanation:

A company's liquidity is shown by the current assets that it has. These assets are to be used to pay off current liabilities as well so in checking for liquidity, it is best to remove current liabilities from current assets as this shows how liquid the company is in that period.

This is what the Net Working Capital is. It is a result of deducting the Current liabilities from the current assets. When Thomas calculates this, he will be able to see how liquid his company is and if he is able to pay off short-term debt and still have enough for other transactions.

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Explain and give an example of any three of the following: good, service, free good, nuisance good, economic good, economic serv
Lapatulllka [165]

Answer: The answer is as follows:

Explanation:

1. Good : Goods refers to an item or material that can be used by the consumer to satisfy their wants and it is tangible in nature. For example; mobile phone, pen, pencil, etc.

2. Service: Service is intangible in nature. Service is provided by the other person which includes medical services by doctors, travelling services, etc.

3. Free good: A free good is a good that is available at a zero price and a good that is not scarce in quantity. For example; ideas, web page, sunlight, etc.

4 0
4 years ago
Freight car loadings over an 18-week period at a busy port are as follows: A- Determine a linear trend line for expected freight
padilas [110]
The linear equation that best fits the given data is
y = 19.19x + 213.53
after data processing

In week 20 and 21, the expected loading is
y = 19.19 (20) + 213.53 = 597.33
y = 19.19 (21) + 213. 53 = 616.52

The week when the load is 776 is
776 = 19.19x + 213.53
x = 29.3 ~ 30 weeks
8 0
3 years ago
Brandon mows six yards once a week for 22 weeks. He averages making about $30 a yard but spends about $5 a yard on Gasoline and
photoshop1234 [79]

Answer:

His yard business makes him $7,800 every year after accounting for expenses

Explanation:

<em>Step 1: Determine number of yards he mows he in a year</em>

I year has 52 weeks

He mows 6 yards once a week

Total number of yards he mows in a year=number of yards he mows in a week×number of weeks in a year

where;

total number of yards he mows in a year=unknown

number of yards he mows in a week=6

number of weeks in a year=52 weeks

replacing;

total number of yards he mows in a year=6×52=312 yards

<em>Step 2: Determine the amount he makes in a year</em>

Total amount in a year=amount per yard×number of yards in a year

where;

Total amount in a year=unknown

amount per yard=$30

number of yards in a year=312 yards

replacing;

Total earnings in a year=30×312=$9,360

<em>Step 3: Determine total expenditure</em>

The total expenditure can be expressed as;

Total expenditure=expense per yard×number of yards in a year

where;

total expenditure=unknown

expense per yard=$5

number of yards in a year=312 yards

replacing;

Total expenditure=5×312=$1,560

<em>Step 4: Determine the net income after considering expenses</em>

The net income can be determined using the expression;

Net income=Total earnings in a year-total expenditure in a year

where;

net income=unknown

total earnings in a year=$9,360

total expenditure in a year=$1,560

replacing;

Net income=(9,360-1,560)=$7,800

His yard business makes him $7,800 every year after accounting for expenses

6 0
4 years ago
Why is a hypothetical basket of goods used to measure inflation?
svp [43]
Because consumers can see the general increase in price over time by using a basket of goods. In addition, Inflation is often measured by evaluating alterations in the cost of a fixed basket of goods and services. This technique overestimates inflation because it does not account for alterations in outgoings patterns that outcome from comparative price variations.
4 0
3 years ago
Consider a 11-period binomial model with R=1.02R=1.02, S_0 = 100S 0 ​ =100, u=1/d= 1.05u=1/d=1.05. Compute the value of a Europe
Sauron [17]

Answer: 1.76

Explanation:

Given the following :

R=1.02,

S0 = 100

u=1/d= 1.05

Strike(k) = 102

Total Payoff = (probability of upside × upside Payoff) + (probability of downside × downside Payoff)

Upside Price = u × S0 = 1.05 × 100 = 105

downside Price = S0/u = 100/1.05 = 95.24

Upside Payoff = upside price - strike rate =(105 - 102) = 3

Upside probability :

[e^(r - q) - d] / u - d

E = exponential, q = Dividend (Dividend is 0, since the stock does not pay dividend)

d = 1/d = 1/1.05 = 0.9523809

e = 2.7182818

[2.7182818^(1.02% - 0) - 0.9523809] / (1.05 - 0.9523809)

[1.0102521 - 0.9523809] / 0.0976191

0.0578712 / 0.0976191

= 0.5928266

Probability of downside = 1 - p(upside)

P(downside) = 1 - 0.5928266

P(downside) = 0.4071733

Therefore, total Payoff =

(0.5928266 × 3) + (0.4071733 × 0)

= 1.7784798

European. Call option:

Total Payoff / (1 + r%)

1.7784798 / (1 + 1.02%)

=1.7784798/ (1 + 0.0102)

= 1.7784798 / 1.0102

= 1.7605224

= 1.76

6 0
3 years ago
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