The preparation of the cash flows from operating activities by using Indirect Method is given below:
To calculate net cash flow from operating activities, what is included in the indirect method?The net income from a company's income statement is first taken in order to determine cash flow from operating activities using the indirect approach. Revenue is only recorded when it is earned, not when it is received, as a result of the accrual basis used to create a company's income statement.
According to the indirect method, the statement of cash flows starts with net income or loss and then adds or subtractions are made for non-cash revenue and expense items to produce cash flow from operating activities.
Given:
The cash flow from operating activities - Indirect method
Net income $145
Adjustment made:
Add : Depreciation expense $98
Add: Loss on sale of land $4
Add: Amortization expense $5
Less: Increase in cash balance -$8 ($138 - $130)
Add: Decrease in accounts receivable $16 ($261 - $277)
Add: Decrease in inventory $15 ($465 - $480)
Add: Increase in accounts payable $9 ($203 - $194)
Less: Decrease in salaries payable -$9 ($107 - $116)
Add: Increase in interest payable $7 ($57 - $50)
Add: Increase in income tax payable $8 ($48 - $40)
Total of Adjustments $145
Net Cash flow from Operating activities $290
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The complete question is:
The portions of the financial statements for myriad products are provided below. myriad products company income statement for the year ended December 31, 2021 ($ in millions) sales $ 900 cost of goods sold 315 gross margin 585 salaries expense $ 150 depreciation expense 98 amortization expense 5 interest expense 38 loss on sale of land 4 295 income before taxes 290 income tax expense 145 net income $ 145
MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) Year 2018 2017 Change Cash $ 138 $ 130 $ 8 Accounts receivable 261 277 (16 ) Inventory 465 480 (15 ) Accounts payable 203 194 9 Salaries payable 107 116 (9 ) Interest payable 57 50 7 Income taxes payable 48 40 8 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method.
For the 2020 tax year, taxpayers can elect to immediately expense ______% of qualified property as bonus depreciation. The bonus depreciation is calculated (before/after) ______ the Section 179 expense and (before/after) ______ regular MACRS depreciation.
For the 2020 tax year, taxpayers can elect to immediately expense 20% of qualified property as bonus depreciation. The bonus depreciation is calculated before the Section 179 expense and after regular MACRS depreciation.
An price is an item requiring an outflow of money, or any form of fortune in wellknown, to any other individual or group as fee for an item, carrier, or other class of charges. For a tenant, hire is an cost. for college kids or parents, lessons is an fee. shopping for food, garb, fixtures, or an car is regularly known as an fee. An expense is a price that is "paid" or "remitted", typically in exchange for some thing of fee. some thing that seems to price a notable deal is "steeply-priced". some thing that seems to price little is "inexpensive". "charges of the table" are expenses for eating, refreshments, a banquet, and so forth.
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king supply maintains its internal inventory records using perpetual fifo, but for financial reporting purposes, reports ending inventory and cost of goods sold using periodic lifo. at the beginning of the year, the company had a balance of $31,000 in its lifo reserve account. by the end of the year, internal records reveal that fifo ending inventory is $50,000 greater than lifo ending inventory. record the year-end adjusting entry for the lifo reserve.
LIFO reserve = FIFO inventory cost - LIFO inventory cost
FIFO's year-end inventory is $81,000 greater than LIFO's year-end inventory.
Hence, LIFO reserve = $81,000
LIFO reserve beginning balance = $70,000
Hence, adjustment to being made for LIFO reserve = 81,000 - 70,000
= $11,000
stock (American English) or stock (British English) refers to the goods and substances that a business holds for the ultimate aim of resale, manufacturing or utilisation. stock control is a discipline ordinarily approximately specifying the shape and site of stocked goods. it's far required at one-of-a-kind places inside a facility or within many places of a deliver community to precede the ordinary and planned route of manufacturing and inventory of substances.
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which statements are true? (select all that apply.) multiple select question. the inventory method is an assumed cost flow and does not have to correspond with the actual physical flow of goods. first-in, last-out is one of the titles of inventory methods allowed by gaap. the inventory method selected must be based on the physical flow of goods. a grocery store may or may not use the last-in, first-out inventory method.
The true statements are-
The inventory technique does not have to match the actual physical flow of products because it is an assumed cost flow.The last in, first out technique of inventory is acceptable in a food store.What is inventory?Both the raw materials used in production and the finished commodities that are offered for sale are included in the definition of inventory. One of a company's most valuable assets is its inventory because it is one of the main sources of revenue generation and, consequently, a source of profits for the company's shareholders.
There are three different categories of inventory- finished commodities, work-in-progress, and raw materials. On the balance sheet of a company, it is listed as a current asset.
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mike's portfolio has a 2-year expected return of 21.70%. what is the expected return for one year? group of answer choices 12.50% 10.85% 14.22% 13.33%
The predicted return for Mike's portfolio over the next two years is 21.70%, and the expected return over the next year is 10.85%, according to the question.
What does income return mean?
The proportion of a bank's total returns that came through income distributions is known as the income return. For bond funds, income return will frequently be larger than capital return, while for stock funds, it will typically be lower. The fund's total return is determined by adding both income return as well as the capital return together.
What distinguishes a tax from a return?
As a result, income taxes are the taxes that must be paid on income, and income tax return seems to be the annual record all income and tax information that the assessee must submit to the tax office.
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A company applies overhead on the basis of machine hours. the company’s predetermined overhead rate is $28 per machine hour based on its budget of 17,000 hours. during the year the company incurred actual overheads of $496,500 and under-applied overhead by $12,520. the budgeted overhead cost for the period was:_____.
These show that manufacturing machine hours overhead were applied to production by $2,000 more than necessary ($110,000 applied OH - $108,000 real OH).
Understanding the various overhead rates for variable and fixed expenditures is helpful when making judgements. The 10,000 units that the corporation anticipates using will be utilised. The variable overhead rate is $ 2 per machine hour ($40,000 variable OH/20,000 hours), while the fixed overhead cost is $ 3 per hour ($60,000 fixed OH/20,000 hours). If the anticipated volume had been 18,000 machine hours, the standard overhead rate would have been $5.33 ($96,000/18,000 hours).
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you are using my business to promote your restaurant online and attract new customers. what feature can you use to encourage new people to try you out?
To advertise a restaurant online and draw in more guests, you should use customer reviews. strategies to entice new folks to give you a try.
What characteristics characterize an effective review?Your critique should be precise, helpful, and consistent. Authors won't be able to address your problems if they don't completely grasp what they are, so clarity is crucial. Reviews are most beneficial if they offer both constructive criticism and suggestions for how problems might be handled.
Can you rely on consumer reviews?Naturally not. Some reviews are exaggerated, vague, or fraudulent. Although 91 percent of individuals say they trust internet reviews far more than personal recommendations, 9 percent of people say they only trust a small number of online evaluations.
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accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. what entry is required in the company's accounts?
When the bank statement is accompanied by a credit memo for a short-term note collected by the bank for the company, the journal entry will effect a debit to the cash accounts and a credit to the debtor party's account.
A journal entry can be referred to or considered as the primary entry made in the books of accounts for ensuring chronological recording of all the financial transactions. As per the golden rules of accounting, when an item increases in its balance, it gets debited within the journal entry for the firm during such particular period.
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which sentence is correctly punctuated? question 7 options: a) any customer who wants more information about our return policy needs to e-mail us. b) any customer, who wants more information about our return policy needs to e-mail us. c) any customer, who wants more information about our return policy, needs to e-mail us.
Any customer who wants more information about our return policy needs to e-mail us. The correct answer is option (a).
What is punctuation?A period, comma, or question mark are examples of punctuation marks that are used to demarcate the beginnings of clauses and sentences in written text. Punctuation is the process of dividing up a block of text utilizing space and punctuation marks. Punctuation is an important component of writing since it makes a text easier for the reader to comprehend.
White space, conventional signals, and certain typographical components are used as punctuation to aid readers in understanding and accurately interpreting written information, if they are reading it aloud or quietly. In English grammar, there are fourteen standard punctuation marks. These include the colon, semicolon, dash, hyphen, full stop, comma, exclamation mark, question mark, bracket, brace, ellipsis, quote mark, and apostrophe.
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Exercise 9-14 Accounting for contingent liabilities LO C3 For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in notes, or (C) have no disclosure. 1. Cruz Company guarantees the $100,000 debt of a supplier. It is not probable that the supplier will default on the debt. A disgruntled employee is suing Cruz Company. Legal advisers believe that the company will likely need to pay damages, but the amount cannot be reasonably estimated.
The Cruz Group stating whether to (a) record a liability, (b) disclose in notes, or (c) not disclose.
Transactional Remark
1. The debt guarantee of the supplier (c) is not disclosed
2. Compensation for a displeased employee (b) note
There is no need to disclose when it is unlikely that the supplier whose debt Cruz has guaranteed would fail to make payments because Cruz will not be liable in any case. Cruz ought to make the information known in a note nonetheless, as it relates to the legal case of a disgruntled worker. Only when the cost of the losses can be reasonably calculated can it be recorded as a liability.
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arturo’s bank tells him they have placed an eight-day hold on the funds. arturo tells them they cannot do so. is he correct? multiple choice yes, because they must make the funds available on the fifth business day following the day of deposit of the non-local check. yes, because they must make the funds available on the third business day following the day of deposit of the non-local check. no, if one of the checks was over $5,000. no, if one of the checks was over $10,000. yes, because a depositary bank must release funds on the fifth business day after transfer to a federal reserve bank.
Arturo’s bank tells him they have placed an eight-day hold on the funds and he tells them they cannot do so because they must make the funds available on the third business day following the day of deposit of the non-local check.
A fund is a form of investment that collects cash from many folks. the cash is after employed by fund managers to take a position in an exceedingly kind of stocks and bonds. every capitalist is given units that represent a share of the fund's holdings.
A local check is a check deposited in an exceedingly depositary bank that's settled within the same Federal Reserve check-processing region because the paying bank. A non-local check is a check deposited in an exceedingly check-processing region totally different from that of the paying bank.
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raquel got a prescription to manage her asthma. the medicine is supposed to cost $150, but with her insurance, all she had to pay was a predetermined $20 fee for the prescription. what is the $20 fee called?
The coinsurance payment would be $20. In an insurance plan that is based on a percentage, the patient is responsible for a set portion of the prescription cost, which is often high for speciality medications.
What distinguishes a copay from a coinsurance payment?For medicines, medical visits, and other sorts of treatment, you must pay a copay. The portion of costs you bear after reaching your deductible is known as coinsurance. Your coinsurance does not begin to cover all of the cost of your drugs and medical services until you have met your deductible.
What kind of insurance allows copayments?With managed care plans like HMOs, copayments are more typical. These plans are provided by insurance companies that have agreements with healthcare providers that allow them to pay set prices for basic services.
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Most borrowers only pay attention to the monthly payment when taking out a loan. Why do you think this is?.
Lenders want you to think that loans are affordable, and they know that many people only think about how much they'll have to pay each month.Loans with "payments as low as $X per month" are advertised by lenders to take advantage of this short-term thinking.
What's wrong with making payments every month?
Higher Interest Payments When Paid Monthly Depending on the amount of debt you have, the interest rate you pay, and how much extra money you have to pay off that debt, you could end up paying hundreds of dollars more in interest each year if you pay your debt in installments.
What is the primary reason that borrowers default on loan payments?
The following are three of the most common reasons for late or missed payments:Because of issues with technology, 34% of people have missed payments.31 percent of respondents were unaware of the repayment deadline.21 percent of respondents were unsure of the amount to pay.
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when an asset is acquired by signing a noninterest-bearing note payable, and the estimated fair value of the asset is not known, the asset should be recorded at the fair value of the note, which is the
If an asset is acquired by signing a non-interest bearing bond and the estimated fair value of the asset is unknown, the asset should be recognized at the fair value of the note discounted at the market rate.
Which account is interest free (noninterest-bearing)? Interest-free bonds are bonds for which interest is deducted from the face value of the bond at the time of issuance. It is called interest-free because it does not state an interest rate. The pre-deducted interest is a bank discount.An interest free trading account means: (1) Deposits or accounts with insured depository institutions. (i) no interest accrues or is not paid; (ii) the depositor or account holder is permitted to make withdrawals, telephone, electronic or other media transmissions, etc.What is interest burden?An interest-bearing account is a type of bank account that pays interest when a customer deposits money with the bank. Interest rates and rates offered vary by bank and depend on the status of your account.
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When events generated by a random process have deviated from the population average in a short run, individuals may erroneously believe that the opposite deviation becomes more likely. This summarizes the _____.
Answers:
illusion of control
gambler's fallacy
switching and double switching
inherent memory bias
This event summarizes the inherent memory bias.
What is a memory bias?A memory bias is a cognitive bias that modifies the content of what we remember, which either makes it easier or harder to recall a memory. These memory aberrations demonstrate that memories are not precisely maintained as copies of reality. Gordon Bower, a cognitive psychologist, argues that during recall, our memories are actually rebuilt. They are susceptible to manipulation and inaccuracies because of the recall process. The memory bias is, technically speaking, a collection of numerous cognitive biases. Some types of memory bias can protect us from painful memories, for example, while others can be detrimental, such as when we base our decisions on the most recent information rather than the most pertinent information.
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a local credit union is developing and maintaining positive relationships with the media. this business is focusing on a(n) blank strategy.
At a significantly lower cost than advertising, public relations can have a significant impact on public awareness.When using public relations, a business typically pays for media coverage.Campaigning alludes to a PR office keeping up with associations with investors and others in the monetary local area.
Is it an effort to build and keep good relationships between an organization and its members?
Public relations (PR) is the effort to establish and maintain positive relationships between an organization and its constituents, whereas advertising is the paid use of media space to sell something (Theaker, 2004).
In public relations, what role does media relations play?
Building brand awareness, increasing credibility and authenticity, and most importantly, forming relationships with potential customers can all be aided by media relations.
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the first step in preparing a flexible budget is to: multiple choice question. compute budgeted variable and fixed costs identify costs and classify them as fixed or variable identify activity levels compute budgeted sales
Making a static overhead budget is the first step in developing a flexible budget. This enables you to consider average production levels and all related costs.
What does creating a flexible budget serve?A flexible budget is a crucial management tool. It aids in determining the business's anticipated expenditures, revenues, and profitability. Furthermore, because the flexible budget is not inflexible, it can be modified and used for variance analysis in accordance with the actual activity level at the conclusion of the accounting period.
Which of the following approaches to creating a flexible budget is not one?Total variation in fixed overhead. Because the budget's fixed overhead costs are static rather than variable, the total fixed overhead variance is not a flexible budget variance.
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every sunday, mariana and hundreds of other shoppers visit home pro, a home improvement supply store, to buy supplies for their home improvement projects. these shoppers are ________ of home pro.
Answer:
thse shoppers are customers of hine pro
Explanation:
because they shop there every sunday
The every Sunday, Mariana, and hundreds of other shoppers visit home pro, a home improvement supply store, to buy supplies for their home improvement projects. These shoppers are customers of home pro.
What is customers?The term customer refers to the purchased the goods and the services, The customer is to fulfill the needs and the wants as the exchange of the money. The customer is the receiving the information of the product with the help of customer.
According to the Mariana, and hundreds of other shoppers visit home pro as the main reason was the improvement on the supply as the day by day to the supplies. The shoppers are customers of home pro. The shoppers are the maintain the relation of the customer to the large level of the sales.
As a result, the shoppers are customers of home pro.
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Members of the scrum team do not consider the sprint retrospective necessary. What should a scrum master do?.
The correct response, according the Scrum certification exam, is that the Scrum Master would collaborate with the team to increase productivity.
What should a scrum master do?A skilled person who uses Agile project management to lead a team through a project is known as a Scrum Master. A Scrum Master promotes team member and leadership participation and communication in order to ensure a successful outcome.
The scrum master helps the team streamline and improve the ways in which they carry out their goals. Ideally, they take on the role of a team member or collaborator as opposed to a leader. The best scrum teams don't react well to top-down management since they are self-organizing. The Scrum Master's responsibility is to lead the team through to the Scrum procedure. They streamline the procedure, assisting the team in mastering the framework and getting better between each sprint.
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David Ricardo is the first great classical economist to detect, sharply, the line of demarcation between intranational and international trade, not on the basis of equal or absolute, but comparative differences between nations. O True O False
It's accurate to say this. The distinction between intranational and international trade was first clearly identified by the famous classical economist David Ricardo, who did so by focusing on comparative rather than absolute, rather than equal, differences between nations.
What was worthy of being called David Ricardo?David Ricardo was alive between 1772 and 1823. The brilliant British economist David Ricardo was one of the most important figures in the growth of economic theory. He developed and formulated the "Classical" system of political economy with great precision. In the 19th century, Ricardo's legacy had a significant impact on economic philosophy.
Ricardo presented a strong argument for the advantages of free trade at a time when it was a divisive political issue. In a system of entirely free commerce, each country would allegedly automatically devote its resources to tasks that benefited it the greatest.
By focusing on producing goods that have the lowest opportunity costs in comparison to those of other countries, countries can gain a trade advantage, according to Ricardo's well-known comparative advantage thesis.
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Which of the following statements is incorrect concerning budget preparation?A. The rolling budget approach is not often used in practice because it requires that management be in perpetual budgeting mode.B. If a zero-based budgeting approach is used, the annual budgeting process begins with a review of the results of the prior operating period.C. If a participative approach is used to prepare budgets, all levels of management are involved in the budgeting process.D. The preparation of the sales budget is the starting point in the budgeting process for all companies.E. Participative budgeting increases the risk that employees will create budgetary slack.
The preparation of the sales budget is the starting point in the budgeting process for all companies.
A sales budget is a financial plan that estimates a company's total sales for a specific period of time. To predict a company's performance, he focuses on two things: the number of products sold and the selling price.
Project sales of $5,000 in the first quarter, $6,000 in the second quarter, $7,000 in the third quarter, and $8,000 in the fourth quarter; We estimate $6, and in the fourth quarter the manager estimates $7. Company's.
The purpose of the sales budget is to meet the goals of the sales department. It also works as a planning tool. It helps companies set standards and strive to achieve them. It is also a coordination tool between various departments within an organization such as sales, finance, manufacturing and advertising.
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In 2015, the United States:
A. imported more services than it exported.
B. imported more goods than it exported
C. traded mainly with developing nations such as Mexico and India.
D. had a small trade surplus in goods and services.
In 2015, the United States imported more services than it exported.
The US has a decades-lengthy alternate deficit, uploading a long way extra items and offerings than it exports. The stability of imports and exports affects GDP, alternate rates, and inflation levels. The United States imports extra than 1/2 of its overall extent from 5 nations: China, Canada, Mexico, Japan, and Germany.
Although the USA can manufacture items it imports, those exporting nations have comparative advantages. But overall strength independence remains an extended manner off. Yes, in 2015, the U.S. imported 1. five billion barrels of oil much less than in 2005. But imports nevertheless handiest blanketed 1/2 of the overall consumption, 7 billion barrels.
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what uis more important to you as far as a food establishment is concerned -- a great product or quick, friendly service?
Customer care is always crucial. Customers are more likely to return when they receive satisfactory service.
What does business establishing mean?Establishment is the level of the Business Register statistical hierarchy that is below the firm and where the accounting data needed to assess production are accessible (principal inputs, revenues, salaries and wages).
The term "establishment" is of what kind?It is a noun that is derived from the verb establishing, which can indicate a variety of things but is most frequently used to signify to found, institute, nor bring into being. I like to buy from local institutions whenever I can. Establishments are objects that have been established, especially enterprises.
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involves entering a foreign market by developing foreign-based assembly or manufacturing facilities. direct exporting contract manufacturing indirect exporting direct investment joint venturing
To access a foreign market, direct investment requires building assembly or manufacturing facilities abroad.
What is a foreign direct investment (FDI)?A foreign investor, firm, or government may purchase stock in a foreign company or project, which is referred to as a foreign direct investment (FDI).
The phrase typically refers to a corporate choice to acquire a sizeable stake in or the entire business of a foreign firm in order to extend operations into a new market. The expression is not frequently used to describe a stock purchase in a single foreign company. Since it creates solid, enduring links between the economies of countries, FDI is an essential part of global economic integration.
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karen has formulated a line of green cleaning products, which she has tested with sales to local commercial entities with great results. she is now ready to seek money to place the product in stores. what stage of financing is karen interested in? a. continuity financing b. startup financing c. seed-stage financing d. early-stage financing
After formulated a line of green cleaning products and tested it with sales to local commercial entities, Karen now is ready to seek money to place the produc in stores and interested to look for the next financing stage which is start-up financing (B).
Financing and raising money to start a business is not an easy matter. Financing for start-up is risky and more challenging. Because unlike mature business who already has assets for collateral and known cash flow to attract investors and lenders, start-up has none of it. Start-up needs money from the early stage for product and market researches puproses and expanding stage.
Financing for start-up could be categorized into 5 stages:
Seed financing Pre-launch financingStart-up/launch financingGrowth financingMaturity/exit financingSeed financing is a concept stage where a start-up prepare the products and held researches related to the products and its targeted market. Start-up has to do feasibility studies, develop prototypes, evaluate market potential, protect its intellectual property if any, and investigate other aspects related to the business idea.
Pre-launch financing occurs when a star-up with a ready product build a detailed business plan and validate its concept, defining the market and developing the products.
Start-up or launch financing happens when the product is ready to be officially launched to the market. Start-up at this phase will focus on introducing the products and ramping up production and sales
Once a product has been accepted by the market successfully, Start-up will look for growth financing to support it to expands its reach. Start-up will look for fund to reach its targeted growth.
Maturity financing occurs when a start-up become matures and has expansion opportunities. A start-up may approach this stage by undertake an initial publich offering (IPO), or obtain bank debt financing.
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a firm that is using marginal analysis to set prices finds that setting a price of $180 per unit would result in the sale of six units. the total variable cost of production is equal to $300 and total fixed cost is equal to $150. in this case, the firm's total revenue will be
If a firm that is using marginal analysis to set prices finds that setting a price of $180 per unit would result in the sale of six units. the total variable cost of production is equal to $300 and total fixed cost is equal to $150. in this case, the firm's total revenue will be $1,080.
What is revenue?Revenue can be defined as the amount of money generated from the sales of goods and service.
Now let determine the firm total revenue using this formula
Total revenue = Price per unit × selling units
Where:
Price per unit = $180 per unit
Selling price = 6 units
Let plug in the formula
Total revenue = $180 per unit × 6 units
Total revenue = $1,080
Therefore we can conclude that the total revenue is the amount of $1,080.
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on january 2, otto corp. entered into a purchase commitment to buy 1,000 units of raw materials for $25 per unit. on january 31, the company purchased 1,000 units when the market price was $24 per unit. otto should
I think Otto should wait till the drop down of price, so that to save money.
Companies enter into buy commitments in order to lock in a particular price, and sometimes additionally to lock in the manufacturing capability of a supplier, which can be used as a protective tool to hold rivals from using the production capacity.
What is a dedication agreement?A dedication agreement is a formal document the place the parties agree to undertake certain obligations. A ordinary example of this would be an settlement between two companions the place one concurs to grant capital, and the other consents to count on responsibility for management.
A purchase dedication is normally documented in the shape of a buy order, on which is cited a specific number of gadgets that a supplier is licensed to ship, alongside with the price the consumer is licensed to pay, and the date via which the consumer expects delivery.
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https://brainly.com/question/29545916#SPJ4Select the correct answer. Why do car manufacturers offer dealer incentives? a. So that dealers only keep the manufacturer's cars on their lot b. So that dealers make an extra effort to sell the manufacturer's cars c. So that dealers keep the manufacturer's new car models on their lot.
Car manufacturers offer dealer incentives to motivate dealers to sell more of their cars. So that dealers make an extra effort to sell the manufacturer's cars. Therefore, the correct answer is option b.
Dealers receive these incentives in the form of cash bonuses, discounts, or refunds in exchange for achieving their sales goals or other great performance.
If dealers are given incentives to do so, they might be more likely to advertise the manufacturer's automobiles. Manufacturers can encourage dealers to sell more of their vehicles and grow their market share by offering dealer incentives.
Therefore, the correct answer is b. So that dealers make an extra effort to sell the manufacturer's cars.
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a life estate is: select one: a. freehold estate b. leasehold estate c. fee simple estate d. feudal estate
Freehold estate is a life estate.
Life estates are they freehold?
A day to day existence home is a freehold bequest where proprietorship is restricted to the length of some individual's lifetime, either the individual holding the existence domain — the existence inhabitant — or another assigned individual.
What type of freehold estate is most prevalent?
Absolute Fee Simple You can also leave it to your heirs.As long as you fulfill your obligations as an owner, such as paying property taxes, you retain unrestricted ownership.You are free to use the land however you please as long as you do so.The most prevalent form of property ownership is this one.
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solanki partners has been extremely successful during its three years of existence. the owners have decided to incorporate and offer shares of stock to the general public. what is this type of an equity offering called?
Solanki partners has been extremely successful during its three years of existence. the owners have decided to incorporate and offer shares of stock to the general public. This type of equity offering called initial public offering.
The term “equity” refers to fairness and justice and is outstanding from equality: while the equality approach imparting the equal to all, equity means recognizing that we do not all start from the equal location and should renowned and make modifications to imbalances.
Equity may be calculated by means of subtracting liabilities from property and can be implemented to an unmarried asset, along with real property belongings, or to a business. for example, if a person owns a residence worth $four hundred,000 and owes $three hundred,000 at the loan, the distinction of $100,000 is equity.
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ow suppose the european government wants airbus to be the sole producer in the lucrative small-aircraft what is the minimum amount of subsidy that airbus must receive when it produces small aircraft to ensure that outcome as the unique nash equilibrium? is it worthwhile for the european government to undertake this subsidy?
The minimum amount of subsidy of 101 million that airbus must receive when it produces small aircraft to ensure that outcome as the unique Nash equilibrium. Yes it is worthwhile.
What is Unique Nash equilibrium?A Nash equilibrium is a collection of strategies, one for every game's n players, where each alternative option is his optimal reaction to the decisions made by the n-1 another alternative.
Assume that from the outset, Boeing and Airbus are operating in the Nash equilibrium and producing small and large planes, respectively. The European Union requires the small-plane payoff to surpass the large-plane payment, or by at least 101 million, in order to convince Airbus to switch its manufacturing to small planes.
Given a subsidy of 101 million, Airbus shifts production to tiny planes; following this, Boeing shifts production to huge planes because producing small planes concurrently with Airbus is no longer Boeing's best course of action.
Thus with the subsidies, the Nash equilibrium is for Boeing to develop huge jets and Airbus to produce little planes.
In this instance, switching from the manufacture of large aircraft to the manufacture of tiny aircraft improves the producer surplus at Airbus by 25 as earnings rise from 100 to 125.
Additionally, producers receive a subsidy from the government in the amount of 101. The subsidy is paid for by an increase in government spending (a decrease in revenue) of 101.
Thus overall welfare rises by 25 when added up. It's worthwhile.
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