The amount that is obtained when you subtract the cash disbursements from the total available cash is the excess of available cash over cash disbursements.
This excess is essentially the surplus cash that the company has available for investment, repayment of debt or other purposes.
The excess of available cash over cash disbursements is a crucial figure in the cash budget as it indicates the amount of cash that is available to meet the company's short-term financial obligations.
The ending cash balance is the amount of cash that is left over at the end of the budget period. It is the final balance that the company will have after all the cash inflows and outflows have been accounted for.
Total cash receipts, on the other hand, are the total amount of cash that the company has received during the budget period. This figure includes all the sources of cash such as sales revenue, loans, and investments.
Finally, the amount of financing required is the amount of money that the company needs to borrow in order to meet its short-term financial obligations.
This figure is calculated by subtracting the available cash from the total cash disbursements. If the available cash is less than the cash disbursements, then the company will need to borrow money to meet its obligations.
In conclusion, the amount that is obtained when you subtract the cash disbursements from the total available cash is the excess of available cash over cash disbursements.
This figure is important in the cash budget as it indicates the amount of cash that is available to meet the company's short-term financial obligations.
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A project has the following estimated data: Price = $46 per unit; variable costs = $31 per unit; fixed costs = $19,000; required return = 15 percent; initial investment = $18,000; life = six years. Assume straight line depreciation.
a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
The accounting break-even point is equal to the total fixed costs divided by the contribution margin per unit.
In this case, the contribution margin per unit is equal to the selling price per unit minus the variable cost per unit.
The cash break-even point is equal to the accounting break-even point plus any non-cash expenses such as depreciation.
The financial break-even point is equal to the accounting break-even point adjusted for the cost of capital.
The degree of operating leverage at the financial break-even level of output is equal to the contribution margin at the financial break-even point divided by the operating income at the financial break-even point.
a. Accounting break-even quantity
The accounting break-even quantity is the quantity at which the contribution margin equals the total fixed costs.
The contribution margin is the selling price per unit minus the variable cost per unit.
So we have:
Contribution margin = $46 - $31 = $15 per unit
Accounting break-even quantity = Total fixed costs / Contribution margin = $19,000 / $15 = 1,266.67 units
Rounding to 2 decimal places, the accounting break-even quantity is 1,266.67 units.
b. Cash break-even quantity
The cash break-even quantity is the accounting break-even quantity plus any non-cash expenses such as depreciation. Since straight-line depreciation is used, the annual depreciation is equal to the initial investment divided by the life of the project.
So we have:
Annual depreciation = Initial investment / Life = $18,000 / 6 = $3,000
Cash break-even quantity = Accounting break-even quantity + (Annual depreciation / Contribution margin)
= 1,266.67 + ($3,000 / $15) = 1,466.67 units
Rounding to 2 decimal places, the cash break-even quantity is 1,466.67 units.
c. Financial break-even quantity
The financial break-even quantity is the accounting break-even quantity adjusted for the cost of capital.
The cost of capital is equal to the required return, which is 15 percent.
So we have:Financial break-even quantity = Accounting break-even quantity × (1 + Required return) = 1,266.67 × (1 + 0.15) = 1,456.67 units
Rounding to 2 decimal places, the financial break-even quantity is 1,456.67 units.
d. Degree of operating leverage
The degree of operating leverage is equal to the contribution margin at a particular level of output divided by the operating income at that level of output.
The financial break-even point is the level of output at which the operating income is equal to zero.
At this point, the degree of operating leverage is undefined since the operating income is zero.
Therefore, we need to calculate the degree of operating leverage at a level of output slightly above the financial break-even point. Let's use a level of output of 1,500 units.
The contribution margin at 1,500 units is:
Contribution margin = 1,500 × $15 = $22,500
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An investor originally purchased 5% of an investee and appropriately applied the fair-value method to account for its investment. Later, the investor purchased sufficient additional shares to qualify the investment for the equity method. How should the investor account for the newly qualified equity investment
When the investor purchased sufficient additional shares to qualify for the equity method, they should switch their accounting method from the fair-value method to the equity method.
The investor should revalue their original 5% investment at fair value as of the date they acquired additional shares, and then combine this fair value with the cost of the newly acquired shares to determine the investment's cost basis. From that point forward, the investor should account for the investment using the equity method, which involves recognizing a proportionate share of the investee's net income or loss in the investor's income statement, adjusting the investment account for the investor's share of the investee's changes in net assets, and disclosing information about the investee in the investor's financial statements.
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why is international improvement important
Answer:
Because they have farts
Explanation:
its mindness
4 Bates received a deed to land from Jones. To ensure that Jones cannot sell the land fraudulently to someone else. Bates should record the deed. Recording the deed gives what kind of notice? A Actual OB Constructive © C Implied OD Inquiry Question 5 1 pts 5 In the sales comparison approach to value, if a comparable property lacks an amenity that the subject property has the appraiser should O A add an amount for the value of the amenity to the final estimate of value for the subject OB deduct an amount for the value of the amenity from the sales price of the comparable. Cadd an amount for the value of the amenity to the sales price of the comparable OD subtract an amount for the value of the amenity from the final estimate of value for the subject D Question 6 1 pts 6 When an instrument is recorded in the public records it notifies the publicat are of its existence This notification is called A Actual notice O B Constructive notice O C Implied notice OD Express notice
Recording the deed gives Constructive notice. Option B is correct. the appraiser should Add an amount for the value of the amenity to the sales price of the comparable. Option A is correct. When an instrument is recorded in public records, it notifies the public of its existence. This notification is called Constructive notice. Option B is correct.
Recording a deed provides constructive notice, meaning it alerts the public that the land has been transferred to Bates and prevents Jones from fraudulently selling it to someone else. Hence option B is correct.
The appraiser should adjust the sales price of the comparable property by adding an amount for the value of the amenity that it lacks. This allows for a more accurate comparison between the subject property and the comparable property. Hence option A is correct.
When an instrument, such as a deed, is recorded in public records, it provides constructive notice. This means that the public is made aware of its existence, even if they have not personally seen or read the document. hence option B is correct.
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Btr warehousing issues 10-year, aa-rated bonds. what is the yield on one of these bonds? disregard cross-product terms; that is, if averaging is required, use the arithmetic average
Nominal interest rates can be calculated as follows:
r=r∗+IP+MRP+LP+DRP
The interest rate before accounting for inflation is referred to as the nominal interest rate. The term "nominal" can also apply to the advertised or quoted interest rate on a loan, which excludes any fees or interest compounding.
Real and effective interest rates are not the same as nominal interest rates. While effective rates are crucial for borrowers as well as investors and lenders, real interest rates are typically significant for investors and lenders.
Despite being the declared rate connected with a loan, the nominal rate is frequently not the rate that the consumer pays. Instead, a variable effective rate that takes into account fees and the effects of compounding is paid by the consumer. As a result, annual percentage yield (APY) and annual percentage rate (APR) differ from the nominal rate in that the former accounts for fees and the latter for compounding.
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assume that an investor owns 124 shares of $12 par value common stock of a company and the company has a 2-for-1 stock split when the market price per share is $46. required: how many shares of common stock will the investor own after the stock split? what will probably happen to the market price per share of the stock? what will probably happen to the par value per share of the stock?
The par value per share of the stock will probably decrease to: $6 after the stock split.
1. The investor initially owns 124 shares of $12 par value common stock.
2. The company has a 2-for-1 stock split when the market price per share is $46.
To determine how many shares the investor will own after the stock split, we can simply multiply the initial number of shares by the split ratio (2-for-1):
124 shares x 2 = 248 shares
So, the investor will own 248 shares of common stock after the 2-for-1 stock split.
As for the market price per share after the stock split, it will likely decrease. This is because the total market value of the company remains the same, but the number of shares has doubled. Typically, the price per share will decrease to roughly half of the original price:
$46 / 2 = $23 (approximately)
Therefore, the market price per share of the stock will probably decrease to around $23 after the stock split.
Regarding the par value per share of the stock, it will also likely decrease following the stock split. This is because the total par value of the company's shares remains constant, but the number of shares has doubled. In a 2-for-1 stock split, the par value per share will be divided by 2:
$12 / 2 = $6
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A principle offers broad goals while leaving human beings in charge. True False Which of the following is an example of saving? Putting money into a savings account Putting money into a checking account Money that you use to pay your taxes All of the above. Which sector is the most stable sector in the economy? Consumption. Business. Government. Foreign. Which of the following is a false statement? Austrian economists criticize the Full Employment and Balanced Growth Act of 1978 The Employment Act of 1946 empowered the federal govemment to pursue mocimum employment, production, and purchasing power Expansions and recessions occur at irregular intervals and last for varyigg lengths of time. Austrian cconomists believe that we can climinate the business cycle.
The statement "A principle offers broad goals while leaving human beings in charge" is True.Savings refers to a fund which is kept aside by an individual for later use. An example of saving is putting money into a savings account.The government sector is the most stable sector in the economy.
A principle is a broad, and general statement that offers a direction for an organization or an individual, it leaves the individual or an organization to determine the exact way to achieve the principle by themselves. Thus, it is true that a principle offers broad goals while leaving human beings in charge. Savings are typically funds that are kept aside for future use, rather than immediate use. Putting money into a savings account is an example of saving.
This is because the government has the power to raise taxes or borrow money in order to pay for its expenses, unlike individuals and businesses. In addition, government employees are typically paid a fixed salary, regardless of the state of the economy. Austrian economists believe that it is impossible to eliminate the business cycle. This is a false statement.
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Student aid is based on either financial need or _____ need.
merit-based
academic
social
emotional
Answer:
merit-based
Explanation:
Financial aid takes many forms, and most often does not need to be paid back.. merit based need is based on academic excellence
Due to an increasing number of drownings, in May 2022 the Federal Parliament passes the Open Waters Restriction Act 2022 which restricts persons from entering certain classified waterways, as set out in the legislation. The object of the Act, according to section 1, is to discourage people from intentionally entering dangerous waters, primarily to ensure personal and public safety. Under section 12 of the Act, a person who "enters the water of a restricted waterway commits an offence and is liable for a fine of up to $10,000."
In June 2022, Tony is fishing from his boat, when he loses balance and falls into a restricted waterway. Tony is seen by police in the water and is charged with contravening section 12 of the Open Waters Restriction Act 2022.
The Magistrate should consider all relevant factors, including legislative intent, purpose, case-law, and specific wording of section 12, to determine correct interpretation of Open Waters Restriction Act 2022.
The Magistrate's consideration of the report by legal academics from the University of Queensland seems to have influenced their decision.
The Statutory interpretation involves considering various factors, including legislative intent, purpose, and any relevant case law. While the Magistrate was entitled to consider the purpose of the Act as stated in section 1 and the second reading speech made by the Minister, these factors should be weighed alongside other elements.
It would be necessary to review the specific wording of section 12, any definitions provided in the Act, and any relevant case law to determine whether the Magistrate correctly applied the rules of statutory interpretation.
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The given question is incomplete, the complete question is
Due to an increasing number of drownings, in May 2022 the Federal Parliament passes the Open Waters Restriction Act 2022 which restricts persons from entering certain classified waterways, as set out in the legislation. The object of the Act, according to section 1, is to discourage people from intentionally entering dangerous waters, primarily to ensure personal and public safety. Under section 12 of the Act, a person who "enters the water of a restricted waterway commits an offence and is liable for a fine of up to $10,000.”In June 2022, Tony is fishing from his boat, when he loses balance and falls into a restricted waterway. Tony is seen by police in the water and is charged with contravening section 12 of the Open Waters Restriction Act 2022.In Court, the Magistrate considers section 12 of the Act, in light of its purpose as stated in section 1. The Magistrate also considers the second reading speech made by the Minister who introduced the Bill into Parliament, in which it was made clear that the Bill should only apply to people who enter prohibited waterways intentionally. Despite these considerations, however, the Magistrate paid particular attention to a report prepared by legal academics at the University of Queensland, which argued that the Act should be interpreted literally and that intention was not required to establish an offence under the Act. On this basis, the Magistrate found Tony guilty.
Applying rules of statutory interpretation as they exist in Queensland, including any appropriate case law and legislation, consider how the matter should be resolved and whether the Magistrate was correct in his/her findings.
In providing your answer, discuss which items the Magistrate was and/or was not entitled to consider when interpreting section 12 of the Open Waters Restriction Act 2022.
please help me!!! I literally have no clue what it is
Answer:
Critical Thinking,Mathematics, and Operation and Control.
Explanation:
True or false?
1-In banking, BI is commonly used only for enterprise-level insights, but never departmental-level or functional-level.
2-Business intelligence and data warehousing are closely related disciplines.
3-Data warehousing is a closely related discipline to business intelligence.?
4-You should architect and design your business intelligence capabilities and your data warehousing environment with each other in mind.
5-Most industries have some aspects of BI that are unique to that industry and don’t apply to other industries.
1-In banking, BI is commonly used only for enterprise-level insights, but never departmental-level or functional-level is False statement
2-Business intelligence and data warehousing are closely related disciplines is True statement
3-Data warehousing is a closely related discipline to business intelligence is True statement
4-You should architect and design your business intelligence capabilities and your data warehousing environment with each other in mind is True statement
5-Most industries have some aspects of BI that are unique to that industry and don’t apply to other industries is True statement
False: Business Intelligence (BI) is used at both enterprise-level and departmental/functional-level in banking. It provides insights and analytics for various levels of the organization.
True: Business intelligence and data warehousing are closely related disciplines. Data warehousing involves the process of collecting, organizing, and storing data, while business intelligence involves analyzing and utilizing that data for decision-making purposes.
True: Data warehousing is indeed a closely related discipline to business intelligence. Data warehousing involves the creation and management of a central repository of structured data that can be used for reporting and analysis in business intelligence processes.
True: It is recommended to architect and design business intelligence capabilities and data warehousing environments with each other in mind. They are interconnected and should be aligned to ensure efficient data integration, processing, and reporting.
True: Most industries have specific aspects of business intelligence that are unique to them. Different industries may have different data sources, metrics, and key performance indicators (KPIs) that are specific to their operations and require industry-specific analysis and reporting.
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Why is data-driven analytics of interest to companies?
• define creative solutions to business problems without human intervention
• allows companies to make definitive predictions about the future
• it gives companies the ability to make informed decisions
• it helps data analyst shape the analytics problem from a business problem
The data-driven analytics of interest to companies is it helps data analyst shape the analytics problem from a business problem.
With the aid of data-driven analytics, you would be able to comprehend your rivals and develop more effective marketing plans that will keep you one step ahead of them. Beating the competition entails increasing sales and money.
Making an analytics problem out of a business problem aids data analysts. It enables businesses to make certain future forecasts. Without human assistance, it identifies original answers to commercial challenges.
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discuss wether trade unions always have a harmful effect on the wider economy
Answer:
1 could lead to disruption of economy
2 could lead to firm going out of business
3 it cause an increase in unemployment
4 output damage reputation of a country
5 can lead to higher wages
For each of the three throwers, compare the summary profiles for distance throws with those for accuracy throws. Are they different? If so, how?
Yes on comparing the summary profiles the throws are very different, you can tell by the amount of physical effort being exerted as well as the form of the thrower.
Throws can be differentiated by looking at the throwers way of throwing the javelin. Majority of throwers include distance throwers which consist of professionals as well as those who are doing it just for fun. The distance focused throwers use their strength and their physical effort.
Throwers who aim for accuracy are mostly the professional throwers and have a specific way of throwing.
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why does the margin of error decrease as the sample size n increases?
That is because a larger sample size will be more representative of the whole population.
The margin of error is the amount of error that can be there in a survey, it is an indication of the level of accuracy of the results. The sample size plays a vital role in the margin of error.
Large sample size can provide a more accurate result as it provides a representative of the population being studied. With a large sample size, the margin of error decreases. , which means that the error will be less than a smaller sample size.
The margin of error is a statistic that describes how much random sampling error there is in survey results. One should have less faith that a poll's findings would accurately reflect those of a population census the higher the margin of error.
As the sample size increases, the margin of error decreases as well. This is because the larger the sample size, the more representative it is of the entire population. It reduces the effects of sampling errors on the population being studied. Therefore, it is easier to draw conclusions that are more representative of the entire population from a larger sample size.
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what are you all doing for hoolween this year?
Answer: I’m having a Halloween party with my parents and family because you know ya girl ain’t trying to get sick
Explanation:
Which situations best demonstrate likely tasks for Business Financial Management workers? Check all that apply.
Marcy helps a family create a budget that allows them to save up for buying a house.
Caleb researches possible cases of fraud and takes notes on what he finds out.
Selena processes customer transactions at a bank.
Jung creates a report with charts to show how a company's money is being spent.
Owen sells automobile insurance policies to people.
Alonzo advises companies about investment strategies.
Answer:
its
b, the caleb one
d, the jung one
d, the Alonzo one
Caleb investigates potential fraud situations and makes notes on his findings. In order to show how a company's money is being spent, Jung develops a report using charts. show potential tasks for those working in business financial management. Thus option (B, C) is correct.
What is management?In order to achieve desired goals and objectives, a person or group of people must be challenged and managed, according to the concept of management. Furthermore, the capacity to organize, supervise, and guide people is a component of management.
Managing telephone costs, employing new employees, purchasing facilities, creating project budgets, etc. are a few examples of financial management for a corporation or firm. financial administration
Therefore, Thus, option (C) is correct.
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what are the disadvantages of alloys
Apocalyptica Corp. pays a constant $5.73 dividend on its stock. The company will maintain this dividend for the next 8 years and will then cease paying dividends forever. If the required return on this stock is 14 percent, what is the current share price? Answer with 2 decimals
We are given that the Apocalyptica Corp. pays a constant $5.73 dividend on its stock. The company will maintain this dividend for the next 8 years and will then cease paying dividends forever. If the required return on this stock is 14 percent, we are required to find the current share price.Using the Dividend Discount Model, the stock price can be given by
P0 = D1/(1+r)^1 + D2/(1+r)^2 + ...... Dn/(1+r)^n + Pn/(1+r)^nWhere,P0 is the current share priceD1 is the dividend at year 1D2 is the dividend at year 2...Dn is the dividend at year nPn is the price of the stock at year n (assumed to be constant)The stock will pay constant dividend for 8 years; thus, D1 = D2 = ... D8 = $5.73and D9 = $0We know the required rate of return, r = 14% or 0.14To calculate the current share price, we need to find the present value of all future dividends and future stock price.P0 = D1/(1+r)^1 + D2/(1+r)^2 + ...... D8/(1+r)^8 + P9/(1+r)^9P0 = $5.73/(1+0.14)^1 + $5.73/(1+0.14)^2 + ... $5.73/(1+0.14)^8 + $0/(1+0.14)^9P0 = 23.79Thus, the current share price is $23.79 (rounded to 2 decimal places).Hence, the answer is $23.79.
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ABC Company had the following share transactions during the year: Jan 1, 2020, had a beginning balance of 100,000 shares April 1, 2020, issued 20,000 shares June 1, 2020, repurchased 30,000 shares Oct 1, 2020, repurchased 50,000 shares If the company’s net income was $1,000,000 on DEC 31, 2020, and it had $200,000 in preferred dividends:
A) Compute the weighted average number of common shares outstanding
B) Compute the Basic Earnings Per Share
A) Weighted average number of common shares outstanding: 83,671 shares
B) Basic Earnings Per Share: $9.56
A) To compute the weighted average number of common shares outstanding, we need to consider the number of shares outstanding during each period. Here's how you can calculate it:
1. Calculate the number of days in each period:
- January 1, 2020 to March 31, 2020: 90 days
- April 1, 2020 to May 31, 2020: 61 days
- June 1, 2020 to September 30, 2020: 122 days
- October 1, 2020 to December 31, 2020: 92 days
2. Calculate the weighted average number of common shares for each period:
- January 1, 2020 to March 31, 2020: 100,000 shares * 90/365 = 24,658 shares
- April 1, 2020 to May 31, 2020: (100,000 + 20,000) shares * 61/365 = 18,301 shares
- June 1, 2020 to September 30, 2020: (100,000 + 20,000 - 30,000) shares * 122/365 = 23,397 shares
- October 1, 2020 to December 31, 2020: (100,000 + 20,000 - 30,000 - 50,000) shares * 92/365 = 17,315 shares
3. Calculate the weighted average number of common shares outstanding:
Weighted average number of common shares = (24,658 + 18,301 + 23,397 + 17,315) shares = 83,671 shares
B) To compute the Basic Earnings Per Share (EPS), use the following formula:
Basic EPS = (Net Income - Preferred Dividends) / Weighted Average Number of Common Shares
Substituting the given values:
Basic EPS = ($1,000,000 - $200,000) / 83,671 shares
Calculating the Basic EPS:
Basic EPS = $800,000 / 83,671 shares
Therefore, the Basic Earnings Per Share is approximately $9.56 per share.
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A stock has a beta of 1.05, the expected return on the market is 10 percent, and the risk-free rate is 3.8 percent. What must the expected return on this stock be?
Based on the CAPM, the expected return on this stock is 10.1%
The expected return on a stock can be calculated using the Capital Asset Pricing Model (CAPM), which considers the stock's beta, the expected return on the market, and the risk-free rate. In this specific scenario, the stock has a beta of 1.05, the expected return on the market is 10%, and the risk-free rate is 3.8%. Applying the CAPM formula, we can determine the expected return on the stock as follows:
To calculate the expected return on the stock, we add the risk-free rate of 3.8% to the product of the stock's beta of 1.05 and the difference between the expected return on the market (10%) and the risk-free rate (3.8%).
Expected return on stock = 3.8% + 1.05 x 6.2%
Expected return on stock = 10.1%
Therefore, based on the CAPM, the expected return on this stock is 10.1%. The expected return represents the anticipated percentage of profit that an investor expects to earn from their investment in a stock. Investors typically purchase stocks with the goal of making a profit, and the expected return helps assess the potential returns before making a purchase.
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If you were a senior manager in a company and wanted to foster innovation, which idea below would NOT be a good idea to do:
a.
Increase discomfort with the status quo
b.
Find out what is blocking innovation and remove it
c.
Create a stretch vision or intent
d.
Appoint volunteers to be corporate entrepreneurs
A: "Increase discomfort with the status quo" would NOT be a good idea to foster innovation in a company.
While it is important to promote innovation in a company, increasing discomfort with the status quo would not be a good idea. This could create a sense of instability and uncertainty in the company, which could lead to a decrease in productivity. Instead, fostering innovation requires a supportive environment where employees feel safe to take risks and try new ideas.
This can be achieved by identifying and removing barriers to innovation, creating a clear vision or goal to work towards, and empowering employees to take on entrepreneurial roles within the company. Appointing volunteers to be corporate entrepreneurs is also a good way to encourage innovation.
Option A is incorrect because it creates discomfort rather than a sense of safety and support. Therefore, option A is the correct answer.
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say hi and i give u 94 ranking points
hi rtgijriomcfrcrecgtrcgetrgretrtrct
Answer:
hi
Explanation:
which one of the following factors would reduce the quantity of money balances that households would want to hold?
The term that would reduce the quantity of money balances that households would want to hold is an increase in the interest rate.
The increase in interest rates would reduce the amount of money that people would be willing to hold because when the interest rate is high, people would rather put their money in interest-bearing assets rather than hold it in cash.
As the interest rate rises, the opportunity cost of holding money balances rises too.
The opportunity cost is the amount of interest that could have been earned if the money had been invested in some other financial instrument.
So, people would find it unattractive to hold a large amount of money when the interest rate is high.
Therefore, an increase in the interest rate would lead to a reduction in the number of money balances that households would want to hold.
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Where would you measure angles?
A) Driveline components
B) Bolt
C) Fasteners
D) All of the above
Driveline components (option A) are where I would measure angles.
What is angle measurement?The amount of rotation from point A to point B is described as an angle measurement. It is important to mention that the if the rotation is carried in a clockwise direction, then such an angle is called a positive angle. If the rotation is carried out in the anticlockwise direction. Then such an angle is called a negative angle.
Driveline components are described as the various components in a vehicle that allows the wheels to rotate by transferring power to the wheels from the transmission. Angles are measured in a driveline and the angle is kept within one degree with respect to the other components.
It can be concluded that driveline components (option A) are where I would measure angles.
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Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2020, at an agreed price of $400,000. At December 31, 2020, the raw material had declined in price to $365,000. What entry would you make on December 31, 2020, to recognize these facts?
Here is the journal entry you would make on that date, considering the decline in raw material price:
1. Debit "Estimated Liability on Purchase Commitment" for $35,000.
2. Credit "Unrealized Loss on Purchase Commitment" for $35,000.
- The agreed price of the raw materials was $400,000 on November 30, 2020.
- The price of the raw materials declined to $365,000 by December 31, 2020.
- The difference between these two amounts is $35,000 ($400,000 - $365,000).
By recording this journal entry, Marvin Gaye Company is recognizing the decline in the raw material price and creating an estimated liability for the difference in the price on the balance sheet. The unrealized loss is recorded in the income statement as a result of the change in the value of the purchase commitment.
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The basic premise of equity theory is that people continuously
monitor the degree to which their work environment is "fair." True
or False?
Answer: True
Equity theory is based on the principle that people assess the degree to which their work environment is fair, and people continuously monitor it.
According to the Equity Theory, an individual's motivation level is directly proportional to his or her perceived sense of fairness and justice in the workplace. The theory recognizes that a worker's perceptions of the equity of the work environment are influenced by their comparison with the perceived fairness of their work's outcomes to their inputs.
Equity theory states that people's motivation is directly linked to the extent to which they believe they are being treated equally. People are naturally competitive, and they are more likely to feel dissatisfied if they believe they are putting in more work than their peers while receiving the same benefits.
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"The scope of market management depends on the size and nature of the business " . Justify the statement and critically analyse the current situation
Answer: Yes. The scope of market management depends on the size and nature of business.
Explanation:
The market management depends on various aspects of business and vise versa. It can happen both ways. Market management is the process of planning, decision making, controlling the marketing aspects of the company in terms with the goals and nature of the company. The type of marketing is determined by the size, nature and type of business. All these must go hand in hand to run a successful business.
If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are.
If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are Complimentary goods, complementary products, or Joint Demand.
What is Joint Demand?
Joint demand occurs because you most likely would use one item with another one because both goods work together to provide you with a certain benefit or utility.
Other examples of Joint Demand are:
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Halifax Shoes has 33% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $84,037 in June, $73,042 in July, and $86,560 in August? Round to the nearest penny, two decimal places.
We must take into account both the credit sales collection pattern and the monthly sales made in order to determine the cash collected in August.
Given: June sales equaled $84,037 July sales were $73,042 and August sales were $86,560. The percentage of cash transactions in overall sales is 33%. Therefore, the following formula can be used to determine cash sales each month: Cash sales for June were $27,741.21 ($84,037 * 0.33). Cash sales in July were $24,084.86 (73,042 * 0.33). Cash sales for August were $28,543.20 ($86,560 multiplied by 0.33). We need to use the collecting pattern for credit sales. The percentages of collections are as follows: - Paid during the month of the sale: 65% - 25% was collected one month after the sale. - 5% was collected one month after the sale. How to calculate the money received from credit sales: Amounts received in August based on June sales, $54,625.05 ($84,037 * 0.65). Cash received in August from transactions made in July equals $73,042 * 0.25, or $18,260.50. Cash sales and money received from credit sales combined: Total cash received in August equals the sum of cash received from sales in August, June sales, and July sales. Total funds received in August were $28,543.20, $54,625.05, and $18,260.50 for a total of $101,428.75. As a result, the amount of money collected in August is $101,428.75.
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