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3 years ago

Briefly explain the term market economy

Business

1 answer:

Alchen [17]3 years ago

6 0

Answer:

a market economy is a system where the laws of supply and demand direct the production of goods and services

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Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,200. Budgeted cash receip

drek231 [11]

Answer:

$13,400

Explanation:

The movement in cash balance over a period is as a result of receipts and disbursements over the period. This may be expressed mathematically as

Opening balance + receipts - disbursements = closing balance

If the company wants to maintain a desired closing balance, the amount to be borrowed would form part of the receipts

$19,200 + receipts - $190,400 = $31,200

Receipts = $190,400 + $31,200 - $19,200

= $202,400

Given Budgeted cash receipts total $189,000 then amount to be borrowed

= $202,400 - $189,000

= $13,400

5 0

3 years ago

Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Romula

muminat

Answer:

1) Book Value= $16,464,000

2) Market Value = $19,080,000

Explanation:

The first question is to determine the book value of Klingon's assets today. Book value is the carrying value of the business in its balance sheet.

Book Value = Net working Capital + Current Liabilities + Net Fixed Assets

Net working Capital= $226,000

Current Liabilities= $700,000

Net Fixed Assets= $15,500,000

Book Value = $226,000+ $700,000+$15,500,000= $16,464,000

2) Calculate the market value

The formula for market value = How much the machinery was sold to Romulans today+ today's value of the current assets if they are liquidated

The market value of assets is a function of the current market price they can be sold for and received on the day of the valuation

Market Value= $18,000,000 + $1,080,000= $19,080,000

4 0

3 years ago

Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah

makkiz [27]

Answer:

PV= $90,990.39

Explanation:

Giving the following information:

Future value= $140,000

Number of periods= 5 years

Rate of return= 9%

To calculate the price to pay today, we need to calculate the present value. We will use the following formula:

PV= FV/(1+i)^n

PV= 140,000 / (1.09^5)

PV= $90,990.39

7 0

3 years ago

"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o

JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

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7 0

3 years ago

11. In the first quarter of 2010, U.S. advertisers spent $5.9 billion on online advertising. In the first quarter of 2011, they

oee [108]

Answer:

The percentage rate of growth from 2010 to 2011 is the 1237.3%

Explanation:

The percentage rate or growth for online advertising spend in 2011 compared to 2010 is obtained when calculating the following operations:

1. You must know what is the base figure you want to use to determine the percentage growth. In this case $5.9 Billion is the base figure you will use.

2. You want to know what is the figure with which you will determine the final growth. In this case is $73 billion.

3. You replace the values in the following formula:

percentage rate or growth =(( Final growth figure ) ) x 100

Base figure

percentage rate or growth =(( 73 ) ) x 100

5.9

percentage rate or growth = 12.3728 x 100

percentage rate or growth = 1237.28

4. As you want to round your answer to one percentage place, then you round to .28 to .3 that is the next higher decimal number.

percentage rate or growth = 1237.3%

6 0

3 years ago

Briefly explain the term market economy​

Briefly explain the term market economy