Answer: Cash/Bank
Explanation:
The fund is moved from cash or Bank to the petty cash.
Answer:
Slope of short-run aggregate supply curve: wage-price flexibility
In the short run, some factors are fixed and some factors can vary and the costs incurred on fixed factors are constant. Thus, the price level does not change as fast as it could have been if all are variable resources.
However, if prices are subjected to the variation in the wages, then the price level will increase faster than the costs. If actual price level is below the expected level, then the nominal wage rate is more than the expected and vice-versa. This would result in a greater slope of the short-run aggregate supply curve, which means short-run aggregate supply curve will be relatively steeper.
In the short run, the wage rate and price level are sticky downward because fall in nominal wage of workers will reduce the incentive to work.
Hence, if the wage rate adjusts continuously to any change in price; then the aggregate supply curie is relatively steep, and when wage and price level are sticky, then the short-run aggregate supply curve will be relatively flat.
Answer:
The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.
- The first C is character, it can be known by the previous loans of the applicant.
- Debt to income ratio is the second C.
- The third C is capital, it is the amount of money possessed by an applicant.
- Collateral is the fourth C, it is the asset that can be used to back the loan.
- The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.
Answer:
a. The inventory turnover is 8.00 times
b. The days’ sales in inventory is 68 days
Explanation:
a. In order to calculate the inventory turnover we would have to use the following formula:
inventory turnover=cost of goods sold/average inventory
inventory turnover=$ 48,800/($3,100+$ 9,100)/2
inventory turnover=8.00 times
b. In order to calculate thedays’ sales in inventory we would have to use the following formula:
days’ sales in inventory=(Ending invenory/cost of goods sold)*365
days’ sales in inventory=($9,100/$48,800)*365
days’ sales in inventory=68 days
