Answer:
$0
Explanation:
IRS's Section 1031 allows real estate investors to exchange real properties and defer any capital gains tax. In this case, Patty doesn't need to report any gain because she is exchanging her apartment house (with 100 rented apartments) for an office building (with 40 rented offices).
In order for a property to classify as a 1031 exchange, it must involve properties that have similar uses. In this operation, both properties have rental units.
Good Price Year 1 Quantity of Goods Year 1 Price Year 2 Quantity of Goods Year 2 Quarts of ice cream $4.00 3 $4.00 5 Bottles of shampoo 3.00 1 3.00 2 Jars of peanut butter 2.00 3 2.00 2
Complete question :
Good Price Year 1 Quantity of Goods Year 1 Price Year 2 Quantity of Goods Year 2 Quarts of ice cream $4.00 3 $4.00 5 Bottles of shampoo 3.00 1 3.00 2 Jars of peanut butter 2.00 3 2.00 2.
What was nominal GDP in year 1? What was real GDP in year 1?What was nominal GDP in year 2? What was real GDP in year 2?
Answer: $21 ; $21 ; $30 ; $30
Explanation:
Given the following:
Goods, price YR 1; qty YR 1; price YR 2; qty YR 2
Quarts of ice cream; $4.00; 3; $4.00; 5
Bottles of shampoo; $3.00; 1; $3.00; 2
Jars of peanut butter; $2.00; 3; $2.00; 2
A.) Nominal GDP in year 1:
NOMINAL GDP = SUMMATION OF THE PRODUCT OF PRICE AND QUANTITY OF GOODS FOR A PARTICULAR YEAR
QUARTZ OF ICE CREAM = $4 × 3 = $12
BOTTLE OF SHAMPOO = $3 × 1 = $3
JARS OF PEANUT BUTTER = $2 × 3 = $6
NOMINAL GDP = $(12 + 3 + 6) = $21
B) REAL GDP YEAR 1
REAL GDP = SUMMATION OF THE PRODUCT OF PRICE OF BASE YEAR AND QUANTITY OF GOODS FOR A PARTICULAR YEAR
QUARTZ OF ICE CREAM = $4 × 3 = $12
BOTTLE OF SHAMPOO = $3 × 1 = $3
JARS OF PEANUT BUTTER = $2 × 3 = $6
REAL GDP = $(12 + 3 + 6) = $21
C) NOMINAL GDP YEAR 2
QUARTZ OF ICE CREAM = $4 × 5 = $20
BOTTLE OF SHAMPOO = $3 × 2 = $6
JARS OF PEANUT BUTTER = $2 × 2 = $4
NOMINAL GDP = $(20 + 6 + 4) = $30
D)REAL GDP YEAR 2
REAL GDP = SUMMATION OF THE PRODUCT OF PRICE OF BASE YEAR AND QUANTITY OF GOODS FOR A PARTICULAR YEAR
QUARTZ OF ICE CREAM = $4 × 5 = $20
BOTTLE OF SHAMPOO = $3 × 2 = $6
JARS OF PEANUT BUTTER = $2 × 2 = $4
REAL GDP = $(20 + 6 + 4) = $30
Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard fixed overhead cost per unit is $2.20 per hour at 13,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.
Answer:
$550 favorable
Explanation:
Douglas industries was involved in the manufacturing of 5,500 units of a product which required 2.5 standard hours per unit.
The standard fixed overhead cost per unit is $2.20 for each hour at 13,500 hours
Therefore, the fixed factory overhead volume variance can be calculated as follows
= (13,500-(5,500×2.5hours)×$2.20
= (13,500-13,750)×$2.20
= -250 × $2.20
= -$550
= $550 favorable
Hence the fixed factory overhead volume variance is $550 favorable
Phoenix Guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. Although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickups for sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. Which of the following approaches is likely to produce superior results?
A) Invest in vertical integration despite the cost of producing pickups.
B) Abandon the idea of vertical integration entirely.
C) Pursue taper integration.
D) Introduce a budget line of guitars to diversify the firm's offeri
Answer:
Option A
Explanation:
In simple words, Regardless of the expense of making guitars, the technique reduces the total cost of manufacturing a instrument. Phoenix would be in the production business of instruments, not pickups.
The target of this technique is therefore the entire guitar, not really the pickups. The smaller the process of manufacturing their instruments, the better manoeuvrability they have on the market. When they have reduced costs, they may change rates downwards in order to capture further market penetration.
________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Multiple Choice Selling Advertising Marketing Mixing markets
Answer:
The given option "Marketing" is the right choice.
Explanation:
Marketing seems to be focused on thought about either the market regarding consumer expectations as well as satisfaction with them. It is different from selling, although selling is concerned with either the methods or strategies of convincing investors to exchange some currency for a certain commodity.Some other options in question are not connected to something like the given scenario. And the above will be a good alternative.
Answer:
Marketing
Explanation:
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $456,000, and direct labor costs to be $2,280,000. Actual overhead costs for the year totaled $422,000, and actual direct labor costs totaled $1,940,000. At year-end, the balance in the Factory Overhead account is a:.
Answer:
$34,000 (Debit)
Explanation:
Estimated total overhead costs = $456,000
Estimated direct labor costs = $2,280,000
Actual overhead costs= $422,000
Actual direct labor costs= $1,940,000
To calculate the factory overhead, we need to first calculate Estimated overhead rate.
Estimated overhead rate = Estimated total overhead costs / Estimated direct labor costs
= $456,000 / $2,280,000
= 0.2
= 20%
Therefore;
Actual Factory overhead = Actual direct labor cost × application rate
= $1,940,000 × 20%
= $388,000
We can get the balance in the overhead account as shown below;
Balance = Actual overhead cost - Actual cost that should be applied
= $422,000 - $388,000
= $34,000 (Debit).
All of the following are assumptions of cost-volume-profit analysis except a.the sales mix is constant. b.costs can be divided into fixed and variable components. c.there is no change in inventory quantities during the period. d.within the relevant range of operating activity, the efficiency of operations can change.
Answer:
d. within the relevant range of operating activity, the efficiency of operations can change.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.
All of the following are assumptions of cost-volume-profit analysis except within the relevant range of operating activity, the efficiency of operations can change. Thus, option D is the correct option.
The break-even analysis, also known as cost-volume-profit analysis, is a crucial technique for forecasting the amount of activity, expenditures to be incurred, sales to be produced, and profits to be realized. It is employed to assess how variations in various activity levels, such as expenses and volume, impact an organization's operating income and net income.
Financial professionals typically utilize the cost-volume-profit analysis and base their decisions on the following assumptions:
The unit sales price of the product is constant.The overall fixed costs of production are maintained at a consistent level, allowing for the division of costs into fixed and variable components.Learn more about cost-volume-profit here:
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A man is purchasing a house for $325,000. His lender requires a 20 percent down payment and 2 points at closing. The man is also responsible for $2,000 in closing costs. What is the total amount of money he needs to close?
Answer:
$73,500
Explanation:
the man needs enough money to cover:
down payment = $325,000 x 20% = $65,000closing points = $325,000 x 2% = $6,500closing costs = $2,000total = $73,500The closing points are generally paid to the mortgage lender in order to lower the mortgage's interest rate which will result in a lower monthly payment.
A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is a. counted as out of the labor force but should be counted as unemployed. b. counted as unemployed but should be counted as out of the labor force. c. correctly counted as out of the labor force. d. correctly counted as unemployed
Answer:
The correct answer is B.
Explanation:
Effectively, a person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is counted as unemployed but should be counted as out of the labor force.
This is so because, according to the statistical criteria applicable to the labor market, the active population or labor force is considered to be all those people who are working or who, without work, are looking for it and in conditions to start working. work immediately. On the other hand, people who do not have the capacity or need to join the job market (due to age, health, wealth, etc.) or who do not work and are not looking for work, in order to have the conditions to do so, are considered passive population that is outside the labor force. The latter is the case of the person in question, who does not have a job and is not actively looking for it.
If you want to compare two different investments, what should you calculate? A. The compound interest B. The ROI percentages C. The ROI dollar amounts D. The capital gain Please select the best answer from the choices provided A B C D
Answer: B. The ROI percentages
Explanation: Making comparison between investments in terms of returns will involve calculating the ROI as a percentage. The ROI refers to the return on an investment which is the ratio of the net profit made from an investment and the cost of the investment. That is ;
ROI = (Net profit / cost of investment) × 100
Investment with greater or higher return on investment (ROI) is usually regarded as the best investment between alternatives. For instance two investments, A and B with ROI of 5% and 10% respectively. Investment B has a higher ROI than A and thus considered has the better investment decision.
Answer:
BBBBBBBBBBBBB
ROI percentages
Explanation:
did the test
In ______ cycle theory, fluctuations in both investment and consumption expenditure, driven by fluctuations in the growth rate of the quantity of money, are the main source of fluctuations in aggregate demand.
Answer: Monetarist
Explanation:
The monetarist theory is a theory which believes that the changes in the supply of money is the most important factor in the growth of an economy.
In this concept, economic stability can be fostered through targeting the money supply. The theory assume that the fluctuations in both the investment and consumption expenditure, which are s a result of the fluctuations in growth rate of the quantity of money, are the main source of fluctuations in aggregate demand.
The closing of a real estate transaction generally involves two closings. One is the closing of the real estate sale in which the deed is delivered in exchange for the purchase price. The other is the closing of the
Answer:
Buyer's loan and the disbursement of the mortgage funds in exchange for the note and mortgage
Explanation:
The closing of a real estate transaction involves two closings. The parties to the contract are represented by atorrneys, and the deed is legally delivered to the buying party and the consideration to seller, along with the closing of the buyer's loan and this closing of buyer's loan involes the disbursement of mortgage funds for financing note and mortgage.
Linda is an accountant at a major conglomerate. Her job profile states that she has to access not only the data from her firm, but also the data from the firms that compose the conglomerate as a whole. On which of these networks is Linda most likely working?
Answer:
firms
Explanation:
A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if
1. it satisfies or exceeds all terms included in the counteroffer.
2. the owner withdraws the counteroffer before it is accepted.
3. the owner gives the first buyer notice that another offer was received and an opportunity to revise the bid.
4. the first buyer is informed, in writing, of the owner's intent to accept another offer.
Answer:
2, the owner withdraws the counteroffer before it is accepted.
Explanation:
When an offer is met with a counteroffer, until the counteroffer is accepted, there is always still the chance to withdraw the counteroffer. This usually happens when there is a new development as regards the offer.
From the above question, it can be seen that the owner of the property responded with a counteroffer to the buyer's offer. Now, while the counter offer is being considered by the buyer, the owner gets a better offer and as such needs to withdraw the counteroffer given to the buyer.
Since there hasn't been any positive response to signify interest or agreement to the counteroffer, the counteroffer can still be withdrawn by the buyer as there is no contract yet.
In the event that, the buyer accepts the counteroffer of the owner, the new offer will have to be forgone as there is an agreement already.
Cheers.
Gato Inc. had the following inventory situations to consider at January 31, its year-end. Identify which of the following items should be included in inventory. (a) Goods held on consignment for Steele Corp. since December 12. select an option (b) Goods shipped on consignment to Logan Holdings Inc. on January 5. select an option (c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit
Answer:
(b) Goods shipped on consignment to Logan Holdings Inc. on January 5.
(c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit.
Explanation:
Gato Inc. should include two items in its inventory. Good shipped on consignment to Logan Holdings Inc. should be included in inventory because this is transaction after the closing of December period. Goods shipped tp a customer on January 29 must also be included in the inventory because the goods are still in transit.
The process of identifying and documenting specific and provable flaws in the organization’s information asset environment is called vulnerability assessment (VA). __________ Group of answer choices True
Answer:
True
Explanation:
VULNERABILITY ASSESSMENT can be said to mean the process or ways in which an organisation information system is been assess and evaluate for any risks, threat or anything that may cause harm and vulnerabilities in the organization’s information system or information asset environment in order to help improve the safeguards , review the security weaknesses thereby making it less harmful and less vulnerable when needed.
Together, EMI, Sony BMG Music Entertainment, Universal Music Group Recordings, Inc., and Warner Music Group Corp. produced, licensed, and distributed 80 percent of the digital music sold in the United States. The companies formed MusicNet to sell music to online ser- vices that sold the songs to consumers. MusicNet required all of the services to sell the songs at the same price and subject to the same restrictions. Digitization of music became cheaper, but MusicNet did not change its prices. Did MusicNet violate the antitrust laws? Explain.
The correct answer to this open question is the following.
Yes, MusicNet violates the antitrust laws.
Indeed, these companies are forming a monopoly in the music business industry. Warner Music, Universal, Sony, and EMI control 80% of the digital music industry due to the fact that they own the rights of most of the popular artists and bands worldwide. When these companies decide to form MusicNet they are creating a monopoly to exert its dominance in the market.
In the case of the United States, three important legislations have to deal with antitrust laws: the Sherman Antitrust Act, the Clayton Act, and the Federal Trade Commission Act.
So what MusicNet is doing is limiting the consumer's choices to buy music, imposing its own conditions and restrictions. And that is not fair in American free-market conditions.
Kathleen is the new operations manager of a national stock brokerage firm. She recently attended a conference on the use of expectancy theory to motivate employees. In order to incorporate what she has learned, the first thing Kathleen must do is:
Answer: determine what rewards are valued by her employees
Explanation:
From the question, we are informed that Kathleen is the new operations manager of a national stock brokerage firm and that she recently attended a conference on the use of expectancy theory to motivate employees.
In order to incorporate what she has learned, the first thing Kathleen must do is to know the kind of rewards that her workers value. This will be vital to achieve organizational goals.
Company FM2 must pay 200,000 in 4 years. In order to fully immunized from changes in interest rate, the company invests in a 3 year zero coupon bond that matures for 90,000 and a 5 year zero coupon bond that matures for X. The actuary for Company FM2 determined that their portfolio fully immunized their ability to meet their obligations at the current interest rate i. Calculate X.
Answer:
11.10%
Explanation:
The computation of the X is shown below;
The first equation is
$90,000 ÷ ( 1 + interest rate)^3 + X ÷ (1 + interest rate)^5 = $200,000 ÷ (1 + interest rate)^4
$90,000 × (1 + interest rate)^2 + X = $200,000 × (1 + interest rate)..........(I)
As we are assuming company has invested in both the bonds
So,
The second equation is
$90,000 (1 + interest rate)^2 = X ...................................(2)
By considering the both equation
we can derive that
X = $100,000 × (1 + interest rate)
Now the (1 + interest rate) is
= $100,000 ÷ $90,000
= 11.10%
Assume that we are in the MM world. Health and Wealth Company is financed entirely by common stock that is priced to offer a 12 percent expected return. If the company repurchases 20 percent of the common stock and substitutes an equal value of debt yielding 8 percent, what is the expected return on the common stock after refinancing
Answer:
13%
Explanation:
the new cost of equity = old cost of equity + [(debt / equity) x (old cost of equity - cost of debt)]
the new cost of equity = 12%+ [(20 / 80) x (12% - 8%)] = 12% + 1% = 13%
Since we are in the MM world, taxes do not exist, therefore they are not included in the equation.
the condition of famers before amul ? 3 sentence pls send the answer . this is for my English project
Answer:
the life of a farmer in Kaira was very much like that of farmers anywhere else in India. His income was derived almost entirely from seasonal crops. Many poor farmers faced starvation during off-seasons. Their income from milch buffaloes was undependable. The milk marketing system was controlled by contractors and middlemen. As milk is perishable, farmers were compelled to sell their milk for whatever they were offered. Often they had to sell cream and ghee at a throwaway price.
Explanation: reword in your own words so there is no plagiarism
On the worksheet, the Service Revenue account has a credit balance of $20,000 on the Unadjusted Trial Balance. In the Adjustments there is a credit of $2,000. What is the amount for Service Revenue in the Adjusted Trial Balance?
Answer:
$22,000
Explanation:
Data provided
Credit balance = $20,000
Credit amount = $2,000
The computation of the amount for Service Revenue in the Adjusted Trial Balance is shown below:-
The Amount for service revenue = Credit balance + Credit amount
= $20,000 + $2,000
= $22,000
Therefore we have applied the above formula for determining the Amount for service revenue.
Since horizontal integration is the process of acquiring and merging with _________, it is the type of corporate strategy that can improve a firm's strategic position in _______ industry/industries. Multiple Choice buyers, multiple competitors, multiple competitors, a single suppliers, a single suppliers, multiple
Answer:
Option A. Competitors, a single
Since horizontal integration is the process of acquiring and merging with Competitors, it is the type of corporate strategy that can improve a firm's strategic position in a Single industry/industries.
Explanation:
In a horizontal integration, the company acquires or merges its business with the competitor in same line of business to control the competition and market decisions. This helps the company to take most of the control of the single industry by increasing its bargaining price due to access to wider number of resources and product knowledge which enables the group to manufacture a differentiated product.
Hence the option A is correct.
If you have a checking account and want to buy something online, which method of payment would be most convenient? (Select the best answer.) If you have a checking account and want to buy something online, which method of payment would be most convenient? (Select the best answer.) Writing a check Using an overdraft Using your checkbook register Using a debit card
Answer:
Using a Debit card
Explanation:
Online transaction and payments are transactions that are conducted virtually and electronically through the internet and computer network. One major attribute of this medium of payment is that physical method of payment are minimally used. An example of a medium of online payment is the use of a debit card
A debit card is a payment card issued by financial organization and linked to a customers checking account , which can be used to pay for purchases made through an online platform. It is a faster and saver means of payment.
Answer:
Debit Card (got it right on my test)
Explanation:
Exhibit 15-3 Potatoes and wheat output (tons per day) Country Potatoes Wheat United States 4 2 Ireland 3 1 In Exhibit 15-3, the United States has an absolute advantage in producing: Group of answer choices
Answer:
The answer is "Both potatoes and wheat"
Explanation:
The actual value of US production is a productivity gain, which is the value of potatoes and wheat, since it will yield more with a given day than in Ireland. Unless the country has it, otherwise nation A (USA) created the product more for country B (Ireland), the benefit between two commodities. Instead of the national comparative benefit, foreign trade is based on the concept of competitive advantage.Office Procedure
a) Encplain the meaning and need of office procedure:
Answer:
Meaning of Office procedure:Office procedure is the combination of two words : office and procedure. Office means the place where overall administrative and clerical functions are performed for achieving organizational goals. Procedure means a series of actions conducted in a certain manner, an established way of doing something, a process of making decision and the specific way of performing official task which is set by the office as per organizational objectIves for getting decision from authorized level.
The process of getting decisions from the authorized level in order to perform a specific official task as per the objectives set by office or organization is called office procedure.
Need of office procedure:It is necessary for an organization to carry out the official activities following certain procedures. These procedures are adopted in a systematic way by considering rules and policies of the organization. The following points highlight the importance or need of office procedures:
Effective office performanceIt provides a necessary guidance about official system. So , it supports to perform the official jobs in a simple and uniform way.
Brings flexibilityOffice procedures involve the provision of flexibility in official activities. It is the reason that it supports to perform the organizational activities in a flexible and effective manner.
Support to subordinatesIt involves necessary information of past and present performance of office. It provides support to involve the subordinate level staff in decision making process. It increases the commitment of lower level staff.
Develop participatory approachIt facilitates to develop participatory approach for solution of official problems. It considers the opinion , ideas and information provided by the subordinate level staff in decision making process.
Fulfill legal requirementIt involves systematic and safely preservation of valuable official documents in proper files. Whenever any documents are required to government officials it can be provided within proper time. Therefore, it facilitates to fulfill legal procedures and requirements.
Hope this helps...
Best regards!!!
Jake and Latasha Lalime live in Swarthmore, PA. Latasha's father, Musashi, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
A. Latasha gets a new video camera made in the United States.
B. Latasha's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
C. Jake's employer upgrades all of its computer systems using U.S.-made parts.
D. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
E. Jake buys a bottle of Italian wine.
Answer:
a. consumption
b. export
c. Investment
d. Government spending
e. consumption, import
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Latasha's purchase of the made in US video camera would be added as part of consumption spending by households on durable goods.
Latasha's father's purchase of Vermont syrup would be added as export in US's GDP. Export are goods that are sold to other countries.
government purchases includes all of the government spending.
the computer upgrade would be added a part of investment. Investment includes all of business spending.
Jake imported the wine, so it would be recorded as import and also as part of consumption spending on non durable goods
Which of the following scenarios best illustrates bundling? Cumulus Media Inc. sells its cloud computing network by having customers pay for the service as they use it. Fresh Seeds Inc. sells seed packages, in which a person can buy a package of three types of seeds at a discounted price compared to buying the seeds individually. Sharp Cable Inc. sells its basic TV channels for free but charges high prices for any channels that customers add on later. Clean Brush Inc. sells its electric toothbrushes for a low cost, but charges a high price for replacement brushes.
Answer:
The scenario that best illustrate BUNDLING is option B which state that:
Fresh Seeds Inc. sells seed packages, in which a person can buy a package of three types of seeds at a discounted price compared to buying the seeds individually
Explanation:
BUNDLING occur when a company or an organisation combine different product together as a package and than sell those product at a discounted amount or lower price instead of charging their customers to buy those product separately
For example, a customers may prefer iPhone 6 than iPhone 5 Instead of the company to sell iPhone 6 for $500 dollars and iPhone 5 for $400 dollars each, the company will then bundles or combined the two product and sells them at a discounted price or amount of $300.
2. Where does Steve Jobs’ power and influence come from?
Answer:
working with apple and creating the mac
Explanation:
You decide to drive your car on a long road trip of 1,500 miles. The opportunity cost of driving your car: Multiple Choice is the amount of money spent on gas. is zero because the car is paid for. includes lost wages you could have earned instead of driving. the total expenses of the trip in the end.
Answer: includes lost wages you could have earned instead of driving
Explanation:
Some individuals prefer driving long distance for different reasons; some for the pleasure they gain racing, while some do so to save cost of either flying a plane or using a public transport. Opportunity cost is weighing on your available options. If you weighed travelling on the road driving will save some cost then you can go for it. But when driving such a distance you'd have saved up lost wages you'd have earned instead of other options.
You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the current state of the economy, he expects sales to decrease by 7 percent next year. What change should you expect in operating cash flows next year given your sales forecast?
Answer:
The change should you expect in operating cash flows next year would be 19.60%
Explanation:
In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:
change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year
change should you expect in operating cash flows=2.8*0.07
change should you expect in operating cash flows=19.60%
The change should you expect in operating cash flows next year would be 19.60%