Answer:
The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.
Explanation:
Account receivable:
= Ending balance - Beginning balance
= 24,000 - 28,000
= -4,000
Decrease in account receivable
Inventory:
= Ending balance - Beginning balance
= 65,000 - 68,000
= -3,000
Decrease in inventory
Since the Current assets have decreased therefore they should be added to net income.
The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.
Note: The options are missing from the question, so i have attached the options with the answer.
Answer:
2. Unilateral contract
Explanation:
Because in a unilateral, or one-sided, contract, one party, known as the offeror, makes a promise in exchange for an act (or abstention from acting) by another party, known as the offeree.
Answer:
A. have permission from the government.
B. face a downward-sloping demand curve.
C. set price equal to marginal cost.
D. be sure the price-marginal cost ratio is the same for all its submarkets.
Explanation:
Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Short-selling long-term bonds and taking long position on short-term assets
Explanation:
When the yield curve ascends, the long-term bond's price will go down. Hence, do short-sell the long-term bonds. On the other hand, short-term asset's price will be depreciated because Fed tightens credit and raise short-term rate, which is the chance to purchase and make profits from capital gains.
