a. Adjusted trial balance b. Comparative balance sheets c. Current income statement d. Additional information 4. The primary purpose of the statement of cash flows is to a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income.
That is working capital decreased, thereby creating an inflow of cash in 1980. II. Justify the cost of capital used to discount the FCF. III. Estimate the present value of the cost savings that result from the lamination process applied to the graphite electrodes.
1. __________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind. A. Financial management B. Profit maximization C. Agency theory D. Social responsibility 2.
2. What item costs and revenues are relevant to the decision of how many units of that item to stock? The item costs relevant to the decision of how many units of that item to stock are the liquidation costs if the item has not been demanded. The revenues related to this same decision are the contribution margins of that item if it has been demanded. The two are used in a way that balances these costs and revenues.
Its cost was $12,000, it has a ten-year life, and straight-line depreciation will be taken. SOLUTION: 1. Factory Overhead Cost Budget Percent of normal capacity 80% 90% 110% Number of units 4,000 4,500 5,500 Number of standard direct labor hours 16,000 18,000 22,000 Budgeted factory overhead: Fixed cost: Depreciation on building and machinery $ 1,200 $ 1,200 $ 1,200 Taxes on building and machinery 500 500 500 Insurance on building and machinery 500 500 500 Superintendent’s salary 1,500 1,500 1,500
There are no differences. C. We divide the sum of the observations by n - 1 instead of n D. The observations are ranked and select the middle value for the population mean. Ans: A 3) In a set of observations, which measure of central tendency reports the value that occurs most often? A. Mean B. Geometric mean C. Median D. Mode Ans: D 4) Which of the following is not a requirement of a binomial distribution?
The RRR can also be called as the discount rate, hurdle rate or the opportunity cost of capital. NPV takes into account the principle in economics referred to as the “time value of money” which implies that a dollar earned today is more valuable than a dollar earned tomorrow. It is to be noted that projects with zero or positive NPV are acceptable to a company from a financial viewpoint as the return from these projects equals or exceeds the cost of capital. Internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. IRR represents the discount rate at which the present value of the expected cash inflows from a project equals the present value of the expected cash outflows.
PART A 2. When Economists use cross price elasticity of demand they measure the sensitivity of the demand for a specific product (X) in order to compare its changes with the price of another product (Y). The result is used to estimate the impact that the price change will have on the demand for the specific product (X). Cross price elasticity assists in quantifying and discerning substitutes and complements. For example, if the result of cross elasticity of demand is positive, this can be interpreted that products X and Y are substitute products or goods.
These represent variables that come with their own changing costs. The Economic Order Quantity, or EOQ, is that magic number that represents the optimal quantity of orders that minimizes total variable costs required to order and hold inventory. The EOQ helps us to determine the appropriate amount and frequency when ordering and holding inventory. How EOQ Works The Principles Behind EOQ: The Total Cost Curve In box (a) we see the inventory carrying costs, or the costs associated with holding inventory. These costs increase as you hold more and more inventory.
2. It insists on equilibrium; there is market clearing. Full neoclassical theory – unemployment is always at the natural rate, output is always at the full-employment level, and any unemployment is purely frictional. Changes in the price level leave output and unemployment unchanged. Money wages will rise (wages are flexible to changes in price level), but since real wage is unchanged, neither the quantity of labor supplied nor demanded will change.