Enter mia profit/loss for the 2 month

The White Corporation has a capital structure of 60 percent common equity, 10 percent preferred stock, and 30 percent debt. This

Elan Coil [88]

Answer:

with only one chain and one pendant per necklace.write an expression that shows how much it will cost ronnie to

4 0

3 years ago

f interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to

aleksklad [387]

Answer: b) Investment demand had been greater than savings

Explanation:

Investment in the economy comes from savings by households also known as Loanable funds. If investment demand is higher than the savings supply this demand will pull the interest rate up due to a lack of loanable funds.

As the interest rates are pulled up, more people will be encouraged to save their money in other to benefit from the higher interest rates thereby increasing the loanable funds in the market.

5 0

3 years ago

Which annual financial statement tells what has been earned, what has been spent, and what is left over?

gizmo_the_mogwai [7]

Answer:

Income statement

Explanation:

8 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $240,000 a year. Variable costs will be $70,000, and rental costs for t

Sergeu [11.5K]

Answer:

1. Adjusted Accounting Profits

- This method gives cashflow by adjusting revenue for expenses.

Earnings before tax

= Revenue - variable cost - rent cost - depreciation

= 240,000 - 70,000 - 50,000 - 30,000

= $90,000

Earnings After tax

= 90,000 ( 1 - tax rate)

= 90,000 ( 1 - 30%)

= $63,000

Add back depreciation as it is a non-cash expense

Operating cashflow = 63,000 + 30,000

= $93,000

2. Cash inflow/cash outflow analysis

Cash outflow is removed from inflow.

= Cash inflow - outflow

= 240,000 - variable cost - rent cost - tax

= 240,000 - 70,000 - 50,000 - 27,000

= $93,000

Tax = Earnings before tax * 30%

= 90,000 * 30%

= $27,000

3. The depreciation tax shield approach.

The tax shield that depreciation affords is added to the earnings after tax.

= Revenue - variable cost - rent cost

= 240,000 - 70,000 - 50,000

= $120,000

After tax = 120,000 * ( 1 - 30%)

= $84,000

Depreciation tax shield = depreciation * tax

= 30,000 * 30%

= $9,000

Cashflow = 84,000 + 9,000

= $93,000

4. Are the above answers equal?

Yes they are. All give an operating cash-flow of $93,000.

4 0

3 years ago

Suppose that the market demand curve for bean sprouts is given by P = 1,660 - 4Q, where P is the price and Q is total industry o

a_sh-v [17]

Answer:

In equilibrium, total output by the two firms will be option e= 300.

Q = $q_{1}$ + $q_{2}$

Q = 100 + 200

Q = 300

Explanation:

Data Given:

Market Demand Curve = P = 1660-4Q

where, P = price and Q = total industry output

Each firm's marginal cost = $60 per unit of output

So, we know that Q = $q_{1}$ + $q_{2}$

where $q_{}$ being the individual firm output.

Solution:

P = 1660-4Q

P = 1660- 4( $q_{1}$ + $q_{2}$ )

P = 1660 - 4 $q_{1}$ - 4 $q_{2}$

Including the marginal cost of firm 1 and multiplying the whole equation by $q_{1}$

Let's suppose new equation is X

X = 1660 $q_{1}$ - 4 $q_{1} ^{2}$ - 4 $q_{1}$ $q_{2}$ - 60 $q_{1}$

Taking the derivative w.r.t to $q_{1}$ , we will get:

$X^{'}$ = 1660 - 8 $q_{1}$ - 4 $q_{2}$ - 60 = 0

Making rearrangements into the equation:

8 $q_{1}$ + $q_{2}$ = 1660 - 60

8 $q_{1}$ + $q_{2}$ = 1600

Dividing the whole equation by 4

2 $q_{1}$ + $q_{2}$ = 400

Solving for $q_{1}$

2 $q_{1}$ = 400 - $q_{2}$

$q_{1}$ = 200 - 0.5 $q_{2}$

Including the marginal cost of firm 1 and multiplying the whole equation by $q_{2}$

P = 1660 - 4 $q_{1}$ - 4 $q_{2}$

Let's suppose new equation is Y

Y = 1660 $q_{2}$ - 4 $q_{1}$ $q_{2}$ -4 $q_{2} ^{2}$ - 60 $q_{2}$

Pugging in the value of $q_{1}$

Y = 1660 $q_{2}$ - 4 $q_{2}$ (200 - 0.5 $q_{2}$ ) -4 $q_{2} ^{2}$ - 60 $q_{2}$

Y = 1660 $q_{2}$ - 800 $q_{2}$ +2 $q_{2} ^{2}$ -4 $q_{2} ^{2}$ - 60 $q_{2}$

Y = 1600 $q_{2}$ - 800 $q_{2}$ -2 $q_{2} ^{2}$

Taking the derivative w.r.t $q_{2}$

$Y^{'}$ = 1600 - 800 - 4 $q_{2}$ = 0

Solving for $q_{2}$

4 $q_{2}$ = 800

$q_{2}$ = 200

$q_{1}$ = 200 - 0.5 $q_{2}$

Plugging in the value of $q_{2}$ to get the value of $q_{1}$

$q_{1}$ = 200 - 0.5 (200)

$q_{1}$ = 200 - 100

$q_{1}$ = 100

Q = $q_{1}$ + $q_{2}$

Q = 100 + 200

Q = 300

Hence, in equilibrium, total output by the two firms will be option

e= 300.

5 0

3 years ago