a) Because people take into account all information available to them in forming their expectations of the price level EP, only unanticipated changes in the money supply affect real GDP. Changes in the money supply that are anticipated when prices were set do not have any real effects.
b) If the Fed sets the money supply at the same time as people are setting prices so that everyone has the same information about the state of the economy, then monetary policy cannot be used systematically to stabilize output. Hence, a policy of keeping the money supply constant will have the same real effects as a policy of adjusting the money supply in response to the state of the economy.
c) Suppose the Fed sets the money supply well after people have set prices so that the Fed has collected more information about the state of the economy. Then monetary policy can be used systematically to stabilize output.
(a) Since people base their expectations of the price level EP on all the information at their disposal, only unexpected changes in the money supply have an impact on real GDP. Prices were set with the expectation of changes in the money supply, but these changes had no real consequences.
(b) Monetary policy cannot be employed consistently to stabilize output if the Fed sets the money supply at the same time that prices are set, giving everyone the same understanding of the state of the economy. Therefore, maintaining a steady money supply will have the same practical results as changing it in response to the health of the economy.
(c) Monetary policy can be used systematically to stabilize output if the Fed sets the money supply after market participants have fixed prices and have gathered more data about the status of the economy.
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Type the correct answer in the box. Spell all words correctly.
Which trait represents the ability to find solutions and achieve goals, even with limited resources?
is the ability to find solutions and achieve goals, even with limited resources, by thinking creatively and coming up with alternative ideas.
Resourcefulness is the trait that represents the ability to find solutions and achieve goals even with limited resources.
What is the trait that enables individuals to overcome limitations?Resourcefulness is a valuable trait that empowers individuals to overcome limitations and achieve their goals even when faced with limited resources. It involves the ability to think creatively, adapt to changing circumstances and make the most of available assets.
Resourceful individuals are adept at finding innovative solutions, leveraging their existing resources efficiently and identifying alternative approaches when necessary. They possess a problem-solving mindset that allows them to navigate challenges and constraints effectively often leading to successful outcomes despite the scarcity of resources.
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what are finance management
Answer:
Financial management is the business function.
Explanation:
Financial management is the business function concerned with profitability, expenses, cash and credit, so that the "organization may have the means to carry out its objective as satisfactorily as possible;" the latter often defined as maximizing the value of the firm for stockholders.
1. A Letter of Credit (or LC) is one of the major pillars on which International Trade stands.
a) What is a Letter of Credit?
b) With the aid of a diagram, explain the LC procedure.
c) Explain to the CEO of Mbo Limited (a company in Ghana) which wants to buy large quantities of White Refined Granulated Sugar from Tiffany Anderson Group Ltd (a company in Brazil) why the LC is the most acceptable method to both the exporter and importer in a transaction such as he is about to undertake.
Answer:
Letter of Credit (LC)
a) Mbo Limited's bank can issue a letter of credit to Tiffany Anderson Group Ltd.'s bank a credit guarantee by which Mbo's bank guarantees that Mbo Limited will settle Tiffany Anderson Group Ltd in full for the amount involved in their trade relationship. It is usually used by importers and exporters to settle trade credit. It is the most acceptable means of settling debts across national boundaries.
b) A diagram is attached. The procedures are detailed below:
A. A Sales Contract is established between the seller (exporter) and the buyer(importer).
B. The importer makes a request to its bank for issuance of letter of credit.
C. The importer’s bank issues a letter of credit to the exporter’s bank.
D. The exporter’s bank advises on the letter of credit to the exporter.
E. The exporter presents export documents (bill of lading and invoice) to its bank.
F. The exporter’s bank delivers the documents to the importer’s bank.
G. The importer’s bank debits the account of the importer for the stated amount after confirming that the documents are in order.
H. The importer’s bank pays the purchase price to the exporter’s bank.
I. The exporter’s bank credits the exporter’s bank to show payment. This ends the transaction.
c. The letter of credit guarantees both the Mbo Limited and Tiffany Anderson Group Ltd. It guarantees and ensures that payment for goods are not paid to Tiffany Anderson Group Ltd until there is evidence that the correct goods and quantity have been shipped by Tiffany Anderson Group Ltd (through the bill of lading). It also assures Tiffany Anderson Group Ltd of payment for shipped goods since the documents cannot be released to Mbo Limited unless Mbo Limited's account had been debited and the money transmitted to Tiffany Anderson Group Ltd through its bank.
Explanation:
As above.
Step 2: Writing Report
Explain the value of using data analysis.
Explain the risks of not using data visualization.
The report should explain the data that you have analyzed throughout the course.
Step 3: Lessons Learned
Identify some key points that you found about data analytics in this course and add a slide for lessons learned at the end of your presentation on what you learned this session.
The value that can be gotten from Data analytics is that it can aid companies to have broad knowledge of market segments, and can help to increase their market share as well as revenue growth.
The risks of not using data visualization is that the company may not be be able to to maintain the audience's interest with information.
What is the importance of Data analytics?For example, data analytics can help businesses find underdeveloped market areas, anticipate client wants, and improve their product offers. Businesses that use data analytics to acquire a competitive edge can grow their market share, accelerate revenue growth, and strengthen their brand.
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A successful data-driven market segmentation program depends on each of the following except:
a.
the rejection of tradiitional marketing research techniques
b.
the use of transactional and event data
c.
a common definition of market segments across all areas of the business
d.
developing a centralized and accessible CRM (Customer Relationship Management) database
A successful data-driven market segmentation program depends on the "use of transactional and event data", "a common definition of market segments", "and the development of a centralized CRM database" but it does not depend on "the rejection of tradiitional marketing research techniques".
The correct option to the given question is option a.
Traditional marketing research techniques, such as surveys, focus groups, and interviews, have long been used to gather insights about consumer behavior and preferences. While these techniques may have limitations, they still play a valuable role in understanding customer motivations and attitudes. Data-driven market segmentation programs can benefit from a combination of both traditional and data-driven research approaches. The use of transactional and event data is crucial for a data-driven market segmentation program. This type of data provides valuable information about customer behaviors, purchase patterns, and interactions with the business.
Having a common definition of market segments across all areas of the business ensures consistency and alignment in marketing efforts. This allows for targeted and personalized messaging that resonates with each segment. It also facilitates coordination between different departments, such as marketing, sales, and customer service, leading to a more cohesive and effective customer experience.
Finally, developing a centralized and accessible CRM database is essential for managing and analyzing customer data. It enables the integration of data from various sources, such as transactions, interactions, and demographic information, into a single platform. This centralized database provides a comprehensive view of customers, enabling more accurate segmentation and personalized marketing initiatives.
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Which of the following features define human needs:
Human needs are fundamental requirements that must be met in order for individuals to survive and thrive. Some features that define human needs include:
Physical needs: These are basic needs that are essential for human survival, such as food, water, shelter, and clothing.Psychological needs: These are needs that are related to mental and emotional well-being, including the need for love, belonging, and self-esteem.Social needs: These are needs related to social interaction and connection with others, including the need for friendship, companionship, and community.Cultural needs: These are needs related to an individual's cultural identity, such as the need to express and preserve one's cultural traditions and values.Personal development needs: These are needs related to an individual's growth and development, including the need for education, self-improvement, and personal fulfillment.Overall, human needs are diverse and complex and may vary depending on an individual's specific circumstances and cultural context.
why do you think p2p apps have become so popular?
P2P payment apps are popular in the U.S. because they make the exchange of money easy. Nearly half (46%) of smartphone owners say they regularly use peer-to-peer payment apps. These apps offer convenience and flexibility when it comes to making payments.
Complete The Cash Flow Cycle
Answer:
i think you can do it
Explanation:
sorry
Revise the following sentences to avoid confusing jargon, slang, and wordings.
1. If you refer back to our five year plan, you will see that there are provisions for preventing blowing the budget.
The revised sentence is "If you review our five-year plan, you will notice that there are measures in place to prevent exceeding the budget.
Why is revision of sentences important?Sentence revision is important because it ensures clarity and effective communication.
By avoiding confusing jargon, slang, and wordings, revised sentences are easier to understand by a wider audience.
Clear and concise language helps convey ideas accurately and reduces the risk of misinterpretation or confusion.
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identify and explain two benefits to a company of offering fringe benefits to its managers
Some of the benefits to a company that offers fringe benefits to their managers are:
Better motivated managers Less employee turnover rates How are fringe benefits meant to motivate employees?The main point of offering fringe benefits is to reduce the stress that employees might feel either in their personal or work lives. The hope is that with these stressors alleviated, the employee would feel motivated enough to work harder.
Managers are offered fringe benefits therefore, to ensure that they are better motivated. It is also to ensure that they do not leave the company due to other companies offering better benefits which would lead to high employee turnover.
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If the free market (private) equilibrium quantity is greater than the socially optimal quantity, one can infer that:
Answer:
The only that socially optimal quantity is lower than the equilibrium quantity is that the production of that specific good results in a negative externality. Negative externalities reduce social benefits of third parties, even though they do not actively participate in any type of transaction.
You tell Julia, "There's always improvement to be made as we grow, beginning with me." She looks at you and smiles. You're not certain if her smile is genuine, but you know there are things you can do to improve your leadership skills as well as things you can do to equip the organization to run well as you develop those skills. What might you do to help your organization?
To help improve the organization, the leader can focus on developing their own leadership skills while also equipping the organization to run effectively.
This can be achieved by seeking feedback from employees, providing training and professional development opportunities, delegating responsibilities to trusted team members, and fostering a positive and collaborative work environment.
By seeking feedback from employees, the leader can identify areas for improvement and make necessary adjustments to their leadership style. Providing training and development opportunities can help employees grow in their roles and contribute to the success of the organization. Delegating responsibilities to trusted team members not only lightens the leader's workload, but also empowers employees and allows them to develop their own leadership skills. Finally, fostering a positive and collaborative work environment can boost morale and productivity, leading to greater success for the organization as a whole.
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What was the largest deduction for this pay period? ngpf
The largest deduction for a pay period is the B. Federal tax.
What is the Federal tax about?The Internal Revenue Service (IRS) levies a tax on the annual earnings of individuals, businesses, trusts, and other legal entities in the United States.
Wages, salaries, commissions, bonuses, tips, investment income, and certain types of unearned income are all subject to federal income taxes as part of a taxpayer's taxable income.
Individual federal income tax rates in the United States are progressive, which means that as taxable income rises, so does the tax rate. Federal income tax rates range from 10% to 37% and are levied at various income levels. Tax brackets are the income ranges to which the rates apply. Income in each tax group is taxed at the associated rate.
The complete question is given below.
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What was the largest deduction for a pay period?
Medicare Tax
Federal Tax
State Tax
Retirement
Which of these is not an example of good practice when differentiating phonological awareness instruction?
a.
Increasing the intensity of instruction by teaching in smaller group sizes.
b.
Expecting all children to be able to produce rhyming words at the same time of the year.
c.
Increasing the intensity of instruction by giving individual children more opportunities to respond.
d.
Supporting children's understanding of an activity by using visual supports.
The option that is not an example of good practice when differentiating phonological awareness instruction is (b) Expecting all children to be able to produce rhyming words at the same time of the year.
What is good practice?Recognizing that children learn at various speeds and have varied degrees of preparedness is a key component of good practice in differentiating phonological awareness training. It is unrealistic to anticipate that all kids will develop at the same rate.
Each child's unique requirements and talents are taken into account while differentiating instruction. Therefore, it is inconsistent with the ideas of differentiation to expect all kids to be able to come up with rhymes at the same time of the year.
Therefore the correct option is b.
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In your business plan, you note that investors can expect to gain 110 percent of their investment back after three years. The time frame here provides your:
Group of answer choices
turnover.
point-of-sale.
rate of return.
return on interest.
If in your business plan, you note that investors can expect to gain 110 percent of their investment back after three years. The time frame here provides your: C. rate of return.
What is rate of return?Rate of return can be defined as the gain or loss a person make on their investment and the rate of return is in a form of percentage.
In a situation where a person who invest his/her money into a business make a profit of 110% of the amount the person invested after two to three years this is called a rate of return.
Therefore the correct option is C.
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Monica Smith was unemployed because the steel company, where she worked, closed and moved overseas to a foreign country. Other steel companies have also closed. Her skills are not transferable to another industry and she is unable to get a job.She would be classified as:_________.
Answer:
structurally unemployed.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
1. Cyclical unemployment rate (CU).
2. Frictional unemployment rate (FU).
3. Structural unemployment rate (SU).
Structural unemployment can be defined as an involuntary unemployment that arises as a result of the incompatibility between a worker's skills set and requisite skills an employer seeks from the workers or due to technological changes.
This ultimately implies that, it describes a situation where an individual isn't able to secure a job as a result of insufficient number of jobs matching their qualifications, thus limiting their opportunities.
In this scenario, Monica Smith was unemployed because the steel company, where she worked, closed and moved overseas to a foreign country. Other steel companies have also closed. Her skills are not transferable to another industry and she is unable to get a job.
Hence, she would be classified as structurally unemployed.
Please answer the questions in the photo. Do not copy and paste from the internet.
2. Businesses that market goods and services can be classified based on the types of products or services they offer. Here are some common classifications:
The businesses that would market goods and servicesConsumer goods: These are goods that are bought and used by individuals for their personal use. Examples include clothing, food, electronics, and household items. Businesses that sell consumer goods are often referred to as retailers, and they can be further classified based on the types of products they sell (e.g. clothing retailers, grocery stores, electronics stores).
Business-to-business (B2B): These are businesses that sell products or services to other businesses rather than to consumers. Examples include suppliers of raw materials, manufacturers of components, and consulting firms. B2B businesses can also be classified based on the types of products or services they offer (e.g. IT services, logistics companies, marketing agencies).
Service businesses: These are businesses that provide services rather than physical goods. Examples include healthcare providers, hairdressers, financial advisors, and consulting firms. Service businesses can be further classified based on the types of services they provide (e.g. healthcare services, professional services, personal services).
There are several types of retail businesses, each with its own advantages and disadvantages. Here are some examples:
Brick-and-mortar stores: These are traditional physical stores that customers visit to make purchases. Brick-and-mortar stores offer the advantage of providing a tactile and personal shopping experience, but they also require significant overhead costs (e.g. rent, utilities, inventory management).
Online retailers: These are businesses that sell products exclusively online, often through e-commerce platforms like Amazon or Shopify. Online retailers offer the advantage of lower overhead costs and a wider potential customer base, but they also face fierce competition and the need to constantly optimize their digital marketing efforts.
Pop-up shops: These are temporary physical stores that are set up in a specific location for a limited time (e.g. a holiday season). Pop-up shops offer the advantage of providing a unique and time-limited shopping experience, but they also require significant planning and logistical coordination.
Franchise stores: These are retail stores that operate under the brand and business model of a larger franchise organization (e.g. McDonald's, 7-Eleven). Franchise stores offer the advantage of a proven business model and brand recognition, but they also require significant initial investment and ongoing franchise fees.
Ultimately, the type of retail business that would be most interesting to pursue depends on factors such as personal preferences, financial resources, and market opportunities. For example, someone who is passionate about fashion and has a limited budget might consider starting an online boutique, while someone who has significant financial resources and is interested in owning multiple locations might consider investing in a franchise business.
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4 ) Sal bought 2 shirts and pants. Sal remembers each shirt was 10 dollars, and the total was 50 dollars Which equation helps answer the equation: How much were the pants? b. 10 + 10 + x = 50 . x = 50 + 10 d 10 + 10 = 50 + x a . 10 + x = 50
Answer:
A. 10 + x = 50
Political forces that affect transportation businesses
It is important to note that politics and the economy have effects on the transportation industry, as the industry is ever changing with new policies, regulations, or capacity issues.
Politicians and the policies they create dictate the US economy, effecting all industries. It is seen that the transportation industry saw effects because of the trade and tariff wars. The overall regulations depend largely on the economic and political outlook of the party in power.
For instance, a government that is inclined to pursue neo-liberal policies, could pass more legislations favoring industries and big businesses, while a government inspired by socialism could push policies favoring small businesses.
Hence, the answer was given and explained above.
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3) Perform a SWOT analysis for the Fast Creek Lightning hockey team as a business enterprise,
A SWOT analysis is a strategic planning tool that helps organizations identify their strengths, weaknesses, opportunities, and threats.
What is SWOT analysis ?Here is an example SWOT evaluation for the hockey team Fast Creek Lightning as a business entity:
Strengths:
Strong brand recognition: Over the years, The Fast Creek Lightning have developed a strong brand and reputation that may draw supporters, sponsors, and other stakeholders.Fan base that is devoted and devoted to the club can bring in a consistent stream of income through ticket and merchandise sales.
Experienced management: The team's management and coaching staff are skilled and experienced, which can help to assure the team's success both on and off the ice.Weaknesses:
Lack of funds: The team might not have the money to invest in the players, facilities, and other assets required to stay competitive.reliance on a single market team is heavily dependent on the local market, which can make it vulnerable to economic downturns or other factors that affect the local economy.
Lack of diversification: The team relies heavily on its hockey operations, which can make it vulnerable to changes in the sports industry or other factors that affect the popularity of hockey.To know more about SWOT analysis , check out :
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define the meaning of an action plan
Answer:
a action plan is a detailed outlining actions needed to reach one or more goals
Tim bought 3 shirts. Each cost $12 originally, but they were on sale for 20% off.
The sales tax rate where he lives is 5%. How much did he spend altogether
.................................
Explanation:
30.24
The amount spent by Tim on shirts is $30.24.
What is the sales tax rate?A sales tax is a fee that is paid to the government when specified products and services are sold. Typically, laws permit the vendor to charge the customer the tax at the time of purchase. Use taxes are often used to describe taxes on goods and services that consumers pay directly to a governing authority.
According to the question, the Cost of each shirt is $12, and 20% off on the sale of the shirt.
The amount spent on the shirt is computed as,
The discount amount for the shirt = 36 - 36 × 20÷100
= 36 - 7.2
= $28.8
Amount to be spent = 28.8 + 5 ÷100×28.8
= 28.8+1.44
= 30.24
Therefore, it can be concluded that the amount spent by Tim on shirts is $30.24.
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Costa Rica is a top exporter of coffee. The highest-quality coffee is sold abroad, and the lower-quality coffee is consumed by the native Costa Rican people.
Which basic economic question is not addressed in this information?
A What to produce?
B Why to produce?
C How to produce?
D For whom to produce?
The basic economic question not addressed in this information is for whom to produce . Option D is an appropriate response.
What are the basic economic questions?
Economists address these three questions:
what to producehow to producefor whom to produceThe problem of whom to produce deals with the issue of deciding the category of people who will consume the goods. To make items for the wealthy or the impoverished. Due to a lack of resources, the economy must choose for whom to produce.
Every good created is made for a certain section of society because no single product can satisfy every section of society due to variations in consumer purchasing power.
Hence, Option D is an appropriate response
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whats a good job for me A. nail artist B.GameDev C. Aesthetic photography D.Anime Actor idc They all sound good
Answer:
C. Aesthetic photography
Explanation:
Answer: it really depends on what you're good at !!
Explanation: seeing all the jobs you listed here, if you look more into the requirements and the education that is needed, see which one is either easier or what you're good in in that field, and go for that !!
i think that either a nail artist or an aesthetic photographer would be good for you :)
Discuss the political, social, economic, technological and other
configurations that support cross-border trade by giving examples of any
multinational firms operating in Ethiopia
Answer: , I can give you an overview of the political, social, economic, and technological factors that support cross-border trade, along with some examples of multinational firms operating in Ethiopia.
Political Factors: - The government's policies and regulations play a significant role in supporting cross-border trade. - A favorable political climate encourages multinational firms to invest in the country.
- Ethiopia has implemented policies aimed at attracting foreign investors, such as tax incentives and relaxed regulations.
- The government's efforts to improve infrastructure, such as roads and ports, has also contributed to the growth of cross-border trade. Social Factors:
- The availability of skilled and affordable labor is an important factor that influences the growth of multinational firms in Ethiopia. - Ethiopia's young and growing population presents an opportunity for firms to expand their markets. - The cultural diversity of the country is also attractive to multinational firms seeking to expand their operations globally. Economic Factors: - Ethiopia has a liberalized economy with a stable macroeconomic environment that supports cross-border trade. - The country has made significant progress in economic reforms, including the privatization of state-owned enterprises. - Ethiopia's strategic location, with access to the Red Sea and proximity to the Middle East and Europe, has made it an attractive destination for multinational firms. Technological Factors: - Technology has played a significant role in supporting cross-border trade, making it easier and more cost-effective. - The use of e-commerce platforms has made it possible for multinational firms to reach customers in different parts of the world. - The availability of high-speed internet and mobile networks has also facilitated cross-border trade. Examples of Multinational Firms Operating in Ethiopia: - Coca-Cola is a global brand that operates in Ethiopia and has invested heavily in the country. - H&M, the Swedish fashion retailer, has opened stores in Ethiopia, taking advantage of the country's textile industry. - Unilever, the British-Dutch consumer goods company, has also invested in Ethiopia, setting up a manufacturing plant for its products. In conclusion, the political, social, economic, and technological factors mentioned above have contributed to the growth of cross-border trade in Ethiopia. This has attracted multinational firms to invest in the country, with many seeing Ethiopia as a potential hub for doing business in Africa
Explanation:
Pizza International, Incorporated, reported the following information (in thousands):
Operating Activities
Net Income $ 100
Depreciation 33,305
Increase in receivables 170
Decrease in inventory 643
Increase in prepaid expenses 664
Decrease in accounts payable 8,720
Increase in accrued liabilities 719
Decrease in income taxes payable 2,721
Payments on notes payable 12,691
Cash paid for equipment 29,073
The following is the summarized income statement for Pizza International, Incorporated (in thousands):
Revenues $ 143,551
Cost of Sales 45,500
Gross Profit 98,051
Salary and Wages Expense 56,835
Depreciation 33,305
Office Expense 7,781
Net Income before Income Tax Expense 130
Income Tax Expense 30
Net Income $ 100
Required:
Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses.
What was the primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss?
The combination of adding back non-cash expenses, decreases in working capital accounts, and a decrease in inventory contributed to the large positive cash flow from operations despite nearly having a net loss.
To compute cash flow from operating activities using the direct method, we need to analyze the changes in different balance sheet accounts. Let's go step by step:
Step 1: Calculate Cash Flows from Operating Activities using the Direct Method
- Start with net income: $100,000
- Add back depreciation: $33,305
- Subtract the increase in receivables: $170
- Add the decrease in inventory: -$643 (Note: decrease is subtracted)
- Subtract the increase in prepaid expenses: -$664
- Add the decrease in accounts payable: -$8,720 (Note: decrease is subtracted)
- Subtract the increase in accrued liabilities: -$719
- Add the decrease in income taxes payable: -$2,721
- Subtract payments on notes payable: -$12,691
- Subtract cash paid for equipment: -$29,073
Cash flow from operating activities using the direct method: $99,464
Step 2: Analyzing the reason for positive cash flow from operations despite a net loss
The primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss is due to non-cash expenses, such as depreciation, which is added back to net income. Depreciation is a non-cash expense that reduces net income but does not involve actual cash outflow. Therefore, adding back depreciation increases the cash flow from operating activities.
Additionally, there were decreases in working capital accounts, such as accounts payable and income taxes payable, which led to a positive impact on cash flow from operating activities. The decrease in accounts payable and income taxes payable means that Pizza International paid off its liabilities, resulting in a decrease in cash outflow.
Furthermore, there was a decrease in inventory, which also positively impacted cash flow from operating activities. Decreasing inventory reduces the amount of cash tied up in unsold goods.
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An expensive electronics store decides to lower the prices on all of its laptop
computers. According to the law of demand, what outcome can the
electronics store expect?
A) more customers will be interested in buying its laptops
B) The cost of buying laptops from his suppliers will go down
C) fewer customers would be interested in buying its
laptops
D) The cost of buying laptops from suppliers suppliers will go up
More customers will be interested in buying its laptops is an outcome can the electronics store expect, According to the law of demand.
What is the law of demand?According to the law of demand, demand decreases as prices rise, and demand increases as prices decrease.
For example, if the price of wheat rises then the demand of the rise is decrease and if the price of rice increase the demand of the commodity decrease.
Thus, option A is correct.
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yes or no. Is the Broker website powered by MLS data?
Select the correct answer from each drop-down menu.
Choose the correct business reason from the options provided.
Johanna and her business partners have just purchased the NBA franchise in her hometown. The team's performance has been average and attendance is starting to decline
First, she would need new sources of revenue in order to rebuild the team roster. Since she is facing declining ticket sales, the opportunities for
be limited Under the terms of the purchase, the sellers retired the name of the stadium, which had been named after the person who built it. Johanna sees an immediate
Raising ticket prices may
opportunity in selling the stadium naming rights
The correct business reason for Johanna to consider would be to sell the stadium naming rights. Johanna and her business partners have just purchased the NBA franchise in her hometown. This means that Johanna would need new sources of revenue to rebuild the team roster and turn the situation around. The correct answer will be to sell the stadium naming rights
Since she is facing declining ticket sales, the opportunities for revenue generation would be limited. This is where selling the stadium naming rights could be a lucrative opportunity for Johanna. The terms of the purchase state that the sellers retired the name of the stadium, which had been named after the person who built it. Therefore, there is an immediate opportunity for Johanna to sell the stadium naming rights.
By selling the stadium naming rights, Johanna would be able to generate new sources of revenue, which could be invested in rebuilding the team roster and improving the team's performance. Additionally, this move could also help in increasing the team's brand visibility and fan engagement. However, it is important for Johanna to carefully evaluate the potential revenue generated from this move against the potential backlash from the fans who may not be happy with the change in the stadium's name. The correct answer will be to sell the stadium naming rights
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Computing and Assessing Plant Asset Impairment
On January 1, Zeibart Company purchases equipment for $225,000. The equipment has an estimated useful life of 10 years and expected salvage value of $25,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $90,000. On this date, Zeibart examines the equipment for impairment and estimates undiscounted expected cash inflows from this equipment of $125,000
(a) Compute the annual depreciation expense relating to this equipment.
(b) Compute the equipment's net book value at the end of the fourth year.
(c) Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. Depreciation expense = (Cost - Salvage value / Useful life
Depreciation expense = ($225,000 - $25,000) / 10 years
Depreciation expense = $20,000
b. Equipment's net book value = Cost of equipment - Depreciation for 4 years
Equipment's net book value = $225,000 - ($20,000 * 4)
Equipment's net book value = $225,000 - $80,000
Equipment's net book value = $145,000
c. When the sum of undiscounted expected cash flows < Net book value of asset, then the asset is impaired
Here, $125,000 < $145,000. So, the equipment is impaired.
Impairment loss = Net book value of asset - Fair value of asset
Impairment loss = $145,000 - $90,000
Impairment loss = $55,000