Business Financial Management
Answer:
as the price level fall, the value of money increased.
Explanation:
the impact of deflation on an economy is that its decreases the price level of goods and services but increases the value of currency.
this is seen by the illustration given:
In year 1, A basket cost $9 and $72 can buy 8baskets
In year 2, A basket cost $8 and $72 can buy 8baskets. though the price level as reduces but the value of $1 increases.
For example, Let say, I am buying baskets from Nigerian, provided the values of currency are not constant.
Given, N = naira
@ N1 = $9, = 8 basket is obtained
@N1.125 =$8, = 8 basket is also obtained (becaused value of currency as increased )
Answer:
The Sheen’s cash flows from operating activities is $95 million
Explanation:
Cash flows from operating activities :
The cash flow from operating activities includes all those activities which are of short term period. Like changes in working capital or we can say increase in currents assets or decrease in current assets or increase/decrease in current liabilities.
The increase in current liabilities increase the cash balance, hence it is added and decrease in current liabilities decrease the cash balance. But in the case of current asset, it is opposite.
The depreciation expense and loss on sale of equipment is added. So, we take them in the computation part.
The cash flow from operating activities is equals to
= Net income + depreciation expenses + loss on sale of equipment - increase in accounts receivable + increase in accounts payable - increase in inventory
= $90 + $3 + $2 - $1 + $4 - $3
= $95 million
Hence, the Sheen’s cash flows from operating activities is $95 million
Answer:
33,793 pizzas
Explanation:
The annual break-even sales level for the number of pizzas sold in the location is computed using the break-even sales units formula below:
break-even sales=fixed costs/contribution margin per pizza
fixed costs=$245,000
contribution margin per pizza=selling price-variable cost
selling price=$12.50
variable cost=selling price*42%
variable cost=$12.50*42%
variable cost=$5.25
contribution margin per pizza=$12.50-$5.25
=$7.25
break-even sales=$245,000/$7.25
= 33,793 pizzas
Answer:
$12,000
Explanation:
The manufacturing company has a direct materials cost of $6
The company manufactures 2,000 unit
Therefore total direct material cost can be calculated as follows
= 2,000×6
= $12,000
Hence the total direct material cost of $12,000
