Answer:
<em>The project will increase the net working capital of the firm by $4000</em>
Explanation:
Net working capital measure how fast a company can convert its asset to cash, the networking capital can be obtained with the expression below;
net working capital (NWC) = current assets - current liabilities
Current asset = Increase in raw materials = $6,000
Current liabilities = accounts payable increase = $2,000
NWC= Increase in raw materials-increase in accounts payable
=$6,000 -$2,000
=$4000
Therefore this project will increase the net working capital of the firm by $4000
Answer:
A
Explanation:
people have to make choice due to limited (opportunity cost)
Answer:
See explanation below
Explanation:
Option of selling unfinished bookcase
Sales
$58
Less Variable cost
$38
Contribution
$20
Less fixed cost
$10
Net profit
$10
Option of selling finished bookcases
Sales
$73
Less variable cost
$7
Contribution
$66
Less fixed cost
$10
Net profit
$56
With regards to the above analysis, it is recommended that Pine street inc. Should go with the option of selling finished bookcases because it would yield the company the highest profit.
Answer:
Explained below.
Explanation:
A nurse educator questions to a student, to list the 5 main categories of complementary and alternative medicine CAM, developed by the NCCAM. The statements which were made by the nursing student indicates a need for further teaching regarding CAM categories are as follows:
* Massage therapy as well as magnetic therapy are a focus of CAM.
* Massage therapy, as well as magnetic therapy, are therapies within particular categories of CAM.
Answer:
a. Decrease
b. Decrease
c. Decrease
d. Increase
e. Increase
Explanation:
a. When the company's cost of production increases, this reduces the amount of profits they make. A lower than expected profit margin is frowned upon in the Financial market therefore some people will sell their shares in the company which will have the effect of decreasing market value.
b. An increase in a firm's cost of financing signals an increase in the riskiness of a company. It also means that the company will be paying more on interest which will reduce profits. These 2 thing will drive some investors away thereby reducing the market value.
c. A firm's value can be found by discounting its projected sales and dividends amongst others with a certain discount rate. If a higher rate is used, the present value and hence the market value figure will be less.
d. When there is an increase in Sales revenue, it signals profitability for a company. Investors love profitable companies and will buy more of the company stock which will drive up the price.
e. Projected future profits can be used to calculate present value as well as serve as an indication of future profitability. Investors will buy more shares and drive up the market value.
