If inventory levels are stable or increasing, an argument which is not an advantage of the LIFO method as compared to FIFO is a. income taxes tend to be reduced in periods of rising prices. b. cost of goods sold tends to be stated at approximately current cost on the income statement. c. cost assignments typically parallel the physical flow of goods. d. income tends to be smoothed as prices change over time. MULTIPLE
Their total revenue will be subtracted from their total expense which will be their net income. The net income and revenue will be times by 100 will be the profit margin. The net income plus depreciation will equal their cash flow. D. Suppose the change had halved, rather than doubled, the firm’s depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow?
? How does systematic risk differ from unsystematic risk? What is meant by the Capital Asset Pricing Model? Describe how it relates to expected return and risk. Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ?
As a result, the quantity and price of good A increase. a. Compute nominal GDP in the base year and later year. b. Compute real GDP in the base and later years (in base-year prices). c. Compute the GDP deflator in the later year, using your answers to parts a and b. d. Compute a fixed-weight price index for the later year, using the base-year quantities as weights. e. Which price index rises faster, the GDP deflator (Paasche) index or the fixed-weight index (Laspeyres) index 1 Question 3 (20 marks) .
The expenditure method: the sum of the total expenditure on goods and services by households, govts and exports . (the value of exports minus the value of imports) 3. The income method: The sum of the income generated in the production of goods and services, which includes profits, wages and other employee payments, econome from rent and interest earned. Production, income and the circular flow diagram: The circular flow diagram shows the flow of spending and money in the economy. It illustrates the equality between GDP measured from the income and expenditure methods.
Running head: INTERNATIONAL PAPER International Paper ECO561 / Economics International Paper Introduction Identify and Justify Macroeconomic Measures for Pricing and Output The economy is measured based on annual total output of goods and services and is called the gross domestic product or GDP. (McConnell, 112) Additionally the GDP shows what each sector or industry pays for the goods and services it receives. Based on data provided in the Bureau of Economic Analysis’ Industry Economic Accounts, we know that the gross output for the motor vehicle industry is significantly higher than Big Drive Auto’s output. (www.bea.gov) There are several different factors that could impact why Big Drive is lower than the national average. These include potential differences such as the amount of local competition, the local economy, and possible higher unemployment rates all of which lead to less disposable personal income.
A. HEADLINE INDICATOR 1. Real GDP per capita growth rate Real GDP per capita is a measurement of the total economic output of a country divided by the number of people and adjusted for inflation. This economic indicator has three important concepts. First is GDP, or Gross Domestic Product.
Income Statement figures for the most recent fiscal year Cost of goods sold Amount | Percentage of total revenue | $47,860,000,000 | 68.50% ($47,860,000,000/$69,865,000,000) | Reference: Consolidated Statements of Operations, Form 10-K, Page 31. Reference: Footnote 3 - Cost of Sales and Selling, General and Administrative Expenses, Form 10-K, Page 35. Reference: Footnote 11 –Inventory, Form 10-K, Page 42. Gross profit Amount | Percentage of total revenue | $22,005,000,000 ($69,865,000,000 - $47,860,000,000) | 31.50% ($22,005,000,000/$69,865,000,000)
The elastic VS inelastic states that the law of demand depends by how much quantity demanded responds to a price change. When a price change causes larger change in quantity demanded then the price would be elastic. However when a price change causes smaller then the demand is elastic. The law of demand states that as prices raise the people would like to buy less and the quantity demanded falls. As the prices fall, the people would like to buy more and the quantity demanded increases.