Answer: 0.48
Explanation:
P(A/B) = P(AnB)/P(B) where:
P(A/B) = The probability of event A occurring given that B has occurred.
P(AnB) = The probability of both events A and B occurring.
P(B) = the probability that event B occurs.
So let
P(A) = Probability that the residents of a household own 2 cars.
P(B) = Probability that the annual household income is greater than $25,000.
The question tells us that
P(A/B) = 0.8
Note that: P(A) = 0.7, P(B) = 0.6.
Since we want to work out P(AnB), because it gives the probability that residents have an annual household income over $25,000 and own 2 cars.
We would Rearrange our initial equation to make P(AnB) the subject formula becoming;
P(A/B) = P(AnB)/P(B)
P(B)*P(A/B) = P(AnB)
So, inserting our probabilities into this equation gives:
0.6*0.8 = 0.48
Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).
An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.
Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)
An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.
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Every indexed stock choice agreement offers the holder the right to buy or promote a hundred shares of stock.
A share is a piece of the agency an investor can personalize. A proportion is a unit of ownership (e.g., you very own 10 shares), whereas inventory is a measurement of fairness (e.g., you personal 10% of the agency). think of stocks as a small portion of an enterprise.
Definition: 'stock' represents the holder's part-possession in a single or several groups. in the meantime, 'percentage' refers to an unmarried unit of possession in a corporation. as example, if X has invested in stocks, it is able to imply that X has a portfolio of shares across special companies.
Shares are gadgets of fair ownership in an organization. For some companies, shares exist as an economic asset providing for an identical distribution of any residual earnings, if any are declared, in the form of dividends.
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Answer:
the allocation rate is $3 per machine hour
Explanation:
<em>Step 1 Find the to total Machine hours</em>
Total Machine Hours
3.0×15,000 = 45,000
5.0×20,000 = 100,000
Total = 145,000
<em>Step 2 Determine the Overhead allocation rate</em>
Overhead allocation rate = Budgeted Overheads / Total Machine Hours
= $435,000/145,000
=$3 per machine hour
