Imperfectly competitive firms such as monopoly, monopolistic competition, and oligopoly have downward sloping demand curves.
In the case of oligopoly, the demand curve is different from that of a monopoly or monopolistic competition because it is interdependent. What this means is that the oligopoly firms’ pricing decision is influenced by the actions of their rivals. The demand curve is, therefore, kinked as it shows different reactions to price changes.
Oligopolies experience a kinked demand curve, which is characterized by two sections that are relatively elastic and inelastic. This demand curve implies that if the company lowers its price, then its rivals will follow suit, causing the company's sales to increase marginally.
On the other hand, if the company raises the price, then the rivals are less likely to follow suit, leading to a significant reduction in the company's sales. The graph below shows the demand curve, marginal revenue curve, and the marginal cost curve:
The marginal revenue curve is related to the demand curve as follows:
Marginal Revenue (MR) is the additional revenue from the sale of one additional unit of the product. The Marginal Revenue curve coincides with the upper part of the Demand Curve because in the elastic range of the demand curve, the oligopoly will have to decrease prices to increase its quantity demanded.
However, in the inelastic region of the demand curve, the oligopoly will have to increase prices to increase its total revenue.
To know more about oligopoly visit:
https://brainly.com/question/28273841
#SPJ11
A market is described by the following supply and demand curves:
QS = 2P
QD = 300 – P
a) Solve for the equilibrium price and quantity.
b) If the government imposes a price ceiling of $90, does a shortage or surplus (or neither) develop?What are the price, quantity supplied, quantity demanded and size of the shortage or surplus?
c) If the government imposes a price floor of $90, does a shortage or surplus (or neither) develop? What are the price, quantity supplied, quantity demanded and size of the shortage or surplus?
d) Instead of a price control, the government levies a tax on producers of $30. As a result, the new supply curve is QS = 2(P – 30).
Does a shortage or surplus (or neither) develop? What are the price, quantity supplied, quantity demanded and size of the shortage or surplus?
a) Equilibrium price = $100, Equilibrium quantity = 200. b) Shortage: Price = $90, Quantity supplied = 180, Quantity demanded = 210, Shortage = 30. c) Neither shortage nor surplus. d) Surplus: Price = $130, Quantity supplied = 200, Quantity demanded = 110, Surplus = 90.
To find the equilibrium price and quantity, we set the quantity supplied equal to the quantity demanded:
2P = 300 - P
Combining like terms, we get:
3P = 300
Dividing both sides by 3, we find:
P = 100
Substituting the equilibrium price back into either the supply or demand equation, we can find the equilibrium quantity:
Q = 300 - P = 300 - 100 = 200
Therefore, the equilibrium price is $100 and the equilibrium quantity is 200.
If a price ceiling of $90 is imposed, it is below the equilibrium price. This will create a shortage in the market. The price will be $90, the quantity supplied will be 180 (calculated by substituting P = $90 into the supply equation QS = 2P), the quantity demanded will be 210 (calculated by substituting P = $90 into the demand equation QD = 300 - P), and the size of the shortage will be 30 (quantity demanded minus quantity supplied).
If a price floor of $90 is imposed, it is above the equilibrium price. This will create a surplus in the market. The price will still be $100 (the equilibrium price), the quantity supplied will be 200 (equilibrium quantity), the quantity demanded will be 110 (calculated by substituting P = $90 into the demand equation QD = 300 - P), and the size of the surplus will be 90 (quantity supplied minus quantity demanded).
If a tax of $30 is levied on producers, the supply curve shifts upward by that amount. The new supply equation becomes QS = 2(P - 30). This will create a surplus in the market. The price will increase to $130 ($100 equilibrium price + $30 tax), the quantity supplied will be 200 (equilibrium quantity), the quantity demanded will still be 110 (calculated by substituting P = $130 into the demand equation QD = 300 - P), and the size of the surplus will be 90 (quantity supplied minus quantity demanded).
To know more about demand curves, here
https://brainly.com/question/13131242
#SPJ4
Which of the following are true regarding a cash flow statement? One category of the cash flow statement is cash flow from extraordinary activities. It presents the amount by which cash and cash equivalents changed from one balance sheet date to the next. It is broken into six distinct categories. It presents the reasons for changes in cash and cash equivalents.
The cash flow statement presents the reasons for changes in cash and cash equivalents. Option D is the correct answer.
The cash flow statement is a financial statement that provides information about the cash inflows and outflows of a company during a specific period. One category of the cash flow statement is cash flow from extraordinary activities, which includes any significant, non-recurring events that affect a company's cash position. However, this statement is not broken into six distinct categories.
Instead, it is typically divided into three main categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. The cash flow statement presents the amount by which cash and cash equivalents changed from one balance sheet date to the next, and it explains the reasons for these changes.
Option D is the correct answer.
You can learn more about cash flow statement at
https://brainly.com/question/735261
#SPJ11
A. To analyze the sources of specific risk, IBM uses sensitivity analysis to determine the impact of different market risk exposures on the fair value of the company's assets. What kind of financial instruments are included in this sensitivity analysis?
B. Explain IBM's process of sensitivity analysis.
The correct answer is financial instruments are included in this sensitivity analysis is IBM and it is used to identify the most significant sources of risk, to develop a plan to mitigate these risks and to monitor the effectiveness of its risk management strategy over time.
A. Financial instruments included in sensitivity analysis IBM uses sensitivity analysis to determine the impact of different market risk exposures on the fair value of the company's assets. The financial instruments that are included in the sensitivity analysis include equities, commodities, currency risk, interest rate risk, credit risk, and others.
B. IBM's process of sensitivity analysis- IBM uses sensitivity analysis to determine how the value of the company's assets will change due to changes in the market risk exposures. IBM uses a quantitative method to analyze this risk, which involves the development of financial models that incorporate a wide range of market risk variables.IBM's sensitivity analysis is a crucial aspect of the company's risk management strategy. This method allows the company to assess how much of the company's assets are exposed to different types of market risk and to take steps to mitigate these risks. IBM's sensitivity analysis is a valuable tool that helps the company to identify the most significant sources of risk and to take steps to manage these risks. The company uses this analysis to identify the most significant sources of risk, to develop a plan to mitigate these risks and to monitor the effectiveness of its risk management strategy over time.
know more about Financial instruments
https://brainly.com/question/30627652
#SPJ11
Jenna is planning to open up a sandwich shop. An estimate of her costs/revenues are as follows: average sales price per sandwich: $12.75; yearly rent; $12,000; monthly fixed utility bill; $800; average cost of ingredients per sandwich; $3.55; monthly labour bill(fixed); $10,500; miscellaneous fixed supplies/month: $1,000; misc. variable supplies: $0.37 per sandwich.
How many sandwiches does she need to sell per month to make an operating income of $61,000 per year?
a. 2082 units
b. 2138 units
c. 5276 units
d. 8640 units
2.
enna is planning to open up a sandwich shop. An estimate of her costs/revenues are as follows: average sales price per sandwich: $12.75 ; yearly rent ; $12,000; monthly fixed utility bill ; $800; average cost of ingredients per sandwich: $3.55; monthly labour bill(fixed): $10,500; miscellaneous fixed supplies/month: $1,000; misc. variable supplies: $0.37 per sandwich.
How many sandwiches does she need to sell per month to break even?
a. 1506 units
b. 1547 units
c. 1604 units
d. 2826 units
Jenna needs to sell 5,276 sandwiches per month to make an operating income of $61,000 per year.
What is the monthly sales target to achieve the desired annual income?To achieve an operating income of $61,000 per year, Jenna's sandwich shop needs to sell 5,276 sandwiches per month.
This calculation takes into account various costs and revenues associated with the business. The average sales price per sandwich is $12.75, and the average cost of ingredients per sandwich is $3.55. Additionally, there are fixed costs such as yearly rent of $12,000, monthly fixed utility bills of $800, and monthly fixed labor bills of $10,500.
There are also miscellaneous fixed supplies of $1,000 per month and miscellaneous variable supplies costing $0.37 per sandwich.
By considering all these factors, the target of 5,276 sandwiches per month is determined to generate the desired operating income.
Learn more about the detailed calculations.
brainly.com/question/28355872
#SPJ11
Identify the macroeconomic problems in India, then apply appropriate economic policies to solve these problems: - This is where your advice comes in. Apply fiscal and monetary policies (ONE OF EACH). Required - An outline of appropriate economic tools (e.g. spending, taxes, interest rates, etc.) that would be used to implement your policy recommendations.
In India, there are several macroeconomic problems that can be addressed through appropriate fiscal and monetary policies. Here are two major issues and corresponding policy recommendations such as high inflation, unemployment and slow economic growth etc.
1. High Inflation:
Inflation refers to a sustained increase in the general price level, reducing purchasing power and affecting the overall economy. To combat high inflation, the government can implement fiscal policy measures, while the central bank can employ monetary policy tools.
Fiscal Policy: The government can adopt contractionary fiscal policy measures to reduce aggregate demand and control inflation. This can be achieved through:
a. Increasing taxes: Higher taxes can reduce disposable income, leading to decreased consumer spending and subsequently lower demand-pull inflation.
b. Cutting government spending: Reducing government expenditure can help control aggregate demand and reduce inflationary pressures.
Monetary Policy: The central bank can use contractionary monetary policy to curb inflation. This can involve:
a. Increasing interest rates: Raising interest rates discourages borrowing and reduces consumer spending and investment, thereby curbing inflationary pressures.
b. Reducing money supply: The central bank can implement open market operations to sell government securities, thereby reducing the money supply and tightening liquidity.
2. Unemployment and Slow Economic Growth:
Unemployment and slow economic growth can be addressed through expansionary fiscal and monetary policies to stimulate aggregate demand and boost economic activity.
Fiscal Policy: The government can employ expansionary fiscal measures to stimulate demand and encourage economic growth. This can include:
a. Decreasing taxes: Lowering taxes increases disposable income, promoting consumer spending and private investment.
b. Increasing government spending: Increased public expenditure on infrastructure projects, education, healthcare, etc., can create jobs and boost economic activity.
Monetary Policy: The central bank can utilize expansionary monetary policy to support economic growth. This can involve:
a. Decreasing interest rates: Lower interest rates incentivize borrowing for businesses and consumers, stimulating investment, consumption, and economic growth.
b. Increasing money supply: The central bank can conduct open market operations to purchase government securities, injecting liquidity into the economy and supporting lending.
It's important to note that the appropriateness and effectiveness of these policies depend on various factors such as the specific economic conditions, fiscal space, inflation expectations, and the impact of global economic trends. The implementation and fine-tuning of these policies should be based on careful analysis and consultation with relevant stakeholders.
To learn more about government expenditure visit-
https://brainly.com/question/29790375
#SPJ11
True or False? Why?
Could a deficit of the economy be a sign of overvalued exchange
rate?
False, a deficit of the economy is not a sign of overvalued exchange rate. The exchange rate and trade balance are related but it is not always an overvalued exchange rate that leads to a trade deficit. This is because trade deficits are caused by many factors, including differences in savings rates, investment rates, and government policies.
To put it simply, a deficit in the economy is a situation in which the total amount of goods and services produced in a country is less than the amount consumed by its residents. On the other hand, an overvalued exchange rate is a situation where a country's currency is worth more than its real value.Therefore, there is no direct relationship between a deficit of the economy and an overvalued exchange rate. While an overvalued exchange rate can affect trade, there are many other factors that can contribute to a trade deficit.
To know more about Deficit visit-
brainly.com/question/6571157
#SPJ11
Discuss the income tax implications of the following. Include references to the legislation, case law and taxation rulings. (a) Profit of $25,000 made by a manufacturing company on the disposal of one of the machinery it has leased to carry on its business. (b) Gifts and payments made by a soccer club and its supports to a star professional player, largely in their delighted response to his being selected to play for Australia. The club gave him a car valued at $35,000; supporters through a collection at one game, gave him $2,900. (c) An exchange gain of $750,009 made by a manufacturer in respect of money borrowed in 1997 and used to finance construction of a new factory building. (d) A boat valued at $75,000 given to an amateur tennis player to turn professional. (e) A $20,000 bonus paid by the Australian Cricket Board to the captain of the Australian cricket team for outstanding leadership during a successful tour around Australia. (f) A waitress in a restaurant receives flowers every week from a regular Friday night customer.
Income tax implications: When a manufacturing company disposes of its leased machinery, the profit it earns is regarded as a capital gain under section 108-5 of the Income Tax Assessment Act 1997. Since the gain is earned from the sale of an asset that was purchased after September 1985, it is considered taxable in accordance with Section 6-5 of the same act.
The correct option is c .
However, the company is entitled to reduce the capital gain by the indexation component of the cost base as specified in Division 110 of the Income Tax Assessment Act 1997.References to legislation, case law, and taxation rulings: Income Tax Assessment Act 1997.(b) Income tax implications: Gifts and payments made to a professional player by a soccer club and its supporters are considered income in accordance with Section 6-5 of the Income Tax Assessment Act 1997, and they are taxable in accordance with the same act.
The car given to the professional player by the club is also considered income, and its value is included in the player's taxable income. As a result, he would have to pay income tax on the $35,000 value of the car given to him by the club. References to legislation, case law, and taxation rulings: Income Tax Assessment Act 1997.(c) Income tax implications: When a manufacturer earns an exchange gain on borrowed money that was used to finance a new factory building, it is considered taxable income in accordance with Section 6-5 of the Income Tax Assessment Act 1997. The manufacturer is required to convert the gain into Australian dollars as per subsection 960-50(1) of the same act. Since the borrowing was for the purpose of producing assessable income, the exchange gain is considered ordinary income and is taxable under Section 6-5 of the same act.
To know more about manufacturing visit:
https://brainly.com/question/29489393
#SPJ11
14/quizzes/411418/take/questions/7319833 Question 8 The sale of government securities by the Fed decreases the supply of money. increases the supply of money. decreases the demand for money. increases
What happens to the supply of money when the Fed sells government securities above is that the sale of government securities by the Fed decreases the supply of money. When the Federal Reserve sells government securities, it lowers the money supply.
This is due to the fact that government securities, like Treasury bills and notes, are among the investment options for the public. Since the Fed is selling these securities, there will be less available to the public for investment purposes. The money supply is reduced as a result because money that would have been used to buy the securities is no longer available for other purposes .In other words, the Federal Reserve may sell securities to banks or the general public in order to increase interest rates.
Because banks can earn more interest by depositing their money with the Fed, they will be less inclined to lend money to borrowers. This reduces the money supply and causes interest rates to rise, putting a damper on inflation.On the other hand, when the Fed buys securities, it raises the money supply. When the Fed purchases securities from banks or the general public, it issues a check in exchange for the securities. Because the seller of the securities receives a check, they now have more money to spend. This means there is more money available for lending and spending, resulting in lower interest rates, increased borrowing and spending, and, as a result, greater economic activity.
To know more about decreases Visit ;
https://brainly.com/question/31388813
#SPJ11
TRUE / FALSE. "In
order to be considered a destination, a place must have a physical
boundary that separates it from other places.
The statement "In order to be considered a destination, a place must have a physical boundary that separates it from other places" is false because destination is a place that people visit for various reasons, such as leisure, business, and other reasons.
Some destinations are more prominent than others, attracting large numbers of tourists each year. Some well-known tourist destinations include Bali, Paris, and New York City.
The physical boundary of a place is a line that separates one area from another. Physical borders are apparent in areas that have visible geographical features, such as rivers or mountains. These borders are used to designate a specific area or region as a separate entity, whether it is a country, state, city, or neighborhood.
Although these boundaries may appear to be rigid and immutable, they can also change over time as a result of political or social changes, such as the formation of a new country or a natural disaster. In any case, the physical boundary is a critical element in defining a specific place.
While it is true that some destinations have physical boundaries, it is not necessary for all destinations to have them. Instead, a destination is defined by its attractions, activities, and culture. The concept of a destination is more abstract than the physical boundaries that may or may not surround it. Furthermore, many popular tourist destinations, such as theme parks or shopping centers, do not have physical borders but are still considered destinations because of their unique attractions and activities.
For more about destination:
https://brainly.com/question/14693696
#SPJ11
Mission Goals Feature Desirability for Outdoor Enthusiasts of at least 85%
Product Cost not more than $50
I'm having a hard time getting to the 85% for the Outdoor Enthusiasts backpack.
Achieving a desirability rating of at least 85% for the Outdoor Enthusiasts backpack can be challenging, but it's not impossible. Here are some strategies to help you improve the backpack's desirability while keeping the product cost within the $50 limit:
1. Targeted Marketing: Focus your marketing efforts on reaching out to the specific target audience of outdoor enthusiasts. Understand their needs, preferences, and pain points to tailor your product features and messaging accordingly.
2. Product Design and Quality: Ensure that the backpack is designed to meet the specific requirements of outdoor enthusiasts. It should offer durability, functionality, and convenience while being comfortable to use. Pay attention to factors like weight, storage capacity, weather resistance, and ergonomic design.
3. Use of High-Quality Materials: Choose materials that are durable, lightweight, and suitable for outdoor activities. This ensures that the backpack can withstand rugged conditions and provides a sense of reliability to the users.
4. Feedback and Iteration: Seek feedback from potential customers or conduct surveys to understand their preferences and identify areas for improvement. Incorporate their suggestions to refine the backpack's design and features, making it more appealing to outdoor enthusiasts.
5. Value Proposition: Highlight the unique selling points and benefits of the backpack that differentiate it from competitors. Emphasize features like advanced organization compartments, adjustable straps, hydration compatibility, or innovative storage solutions.
6. Competitive Pricing: While keeping the product cost below $50, analyze the market to ensure you offer a competitive price point. Compare prices of similar backpacks in the market to strike a balance between affordability and perceived value.
By implementing these strategies, you can enhance the backpack's desirability among outdoor enthusiasts, making it more likely to achieve the targeted 85% desirability rating. Remember to continuously iterate and improve based on customer feedback to meet their evolving needs and preferences.
Learn more about Targeted Marketing click here
brainly.com/question/13363009
#SPJ11
Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a major upscale wedding. The gold bracelets are to be given as gifts to members of the wedding party. The normal selling price of a gold bracelet is $194.50 and its unit product cost is $181.00, as shown: Materials Direct labour Manufacturing overhead $ 89.00 48.50 43.50 Unit product cost $181.00 The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery is produced in any given period. However, 20% of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special filigree applied to the bracelets. This would require additional materials costing $9.50 per bracelet and would also require acquisition of a special tool costing $430 that would have no other use once the special order was completed. This order would have no effect on the company's regular sales, and the order could be fulfilled using the company's existing capacity without affecting any other order What effect would accepting this order have on the company's net operating income if a special price of $189.00 is offered per bracelet for this order?
Accepting the special order with a special price of $189.00 per bracelet would result in an increase in the company's net operating income by $4,694.00.
Incremental Revenues:
Number of bracelets in the special order: 30
Special price offered per bracelet: $189.00
Incremental revenues = Number of bracelets × Special price offered per bracelet
Incremental revenues = 30 × $189.00 = $5,670.00
Incremental Costs:
Additional materials cost per bracelet: $9.50
Incremental materials cost = Number of bracelets × Additional materials cost per bracelet
Incremental materials cost = 30 × $9.50 = $285.00
Cost of the special tool: $430.00
Total Incremental Costs:
Total incremental costs = Incremental materials cost + Cost of the special tool
Total incremental costs = $285.00 + $430.00 = $715.00
Variable manufacturing overhead per unit = 20% × Manufacturing overhead per unit
Variable manufacturing overhead per unit = 20% × $43.50 = $8.70
Incremental manufacturing overhead = Variable manufacturing overhead per unit × Number of bracelets
Incremental manufacturing overhead = $8.70 × 30 = $261.00
Total incremental costs including manufacturing overhead:
Total incremental costs including manufacturing overhead = Total incremental costs + Incremental manufacturing overhead
Total incremental costs including manufacturing overhead = $715.00 + $261.00 = $976.00
Net operating income effect:
Net operating income effect = Incremental revenues - Total incremental costs including manufacturing overhead
Net operating income effect = $5,670.00 - $976.00 = $4,694.00
For more information about net operating income, refer
https://brainly.com/question/32721350
#SPJ4
Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20? a. $40.00 $284.79 $315.21 d. $600.00
As the query does not provide any particular information about Hope's salary or earnings, we need more information to calculate how much her company put into her checking account on her most recent payday of 5/21/20.
To figure out the precise cost, the options provided ($40.00, $284.79, $315.21, and $600.00) are insufficient. The amount to be deposited would be determined by things like Hope's hourly rate, the quantity of hours performed, any taxes or deductions, and any additional bonuses or incentives. The precise deposit amount on Hope's payday cannot be calculated without this information.
Learn more about provide here :
https://brainly.com/question/9944405
#SPJ11
Mark and Spencer Limited issued a semi-annual interest rate bond with a face value of $1,000. The bond is currently trading at $1,028.50, with 5.0 percent coupon rate. If the yield to maturity is 5.2 percent, calculate the number of years to maturity of Mark and Spencer’s bond.
a. 8.28 years
b. 8.80 years
c. 10.80 years
d. 10.94 years
The number of years to maturity of Mark and Spencer's bond is 8.28 years. (Option A)
To calculate the number of years to maturity, we can use the formula for bond price calculation:
Bond Price = (Coupon Payment / (1 + Yield)^1) + (Coupon Payment / (1 + Yield)^2) + ... + (Coupon Payment + Face Value / (1 + Yield)^n)
In this case, the bond price is given as $1,028.50, the coupon rate is 5.0%, and the yield to maturity is 5.2%. The face value of the bond is $1,000.
By plugging in these values into the formula and solving for 'n', we find that the number of years to maturity is approximately 8.28 years.
Therefore, option A is the correct answer.
You can learn more about maturity at
https://brainly.com/question/28033398
#SPJ11
Which of the following is not a risk typically associated with outsourcing. O Increased employee morale O Increased reliance on 3rd parties O Poor service O Failure to realize expected savings
ORFI h
The risk that is typically not associated with outsourcing is a. Increased employee morale
The practise of hiring external, third-party service providers to carry out particular corporate processes or duties is known as outsourcing. While outsourcing has a number of advantages, there are also some hazards. Using outside vendors or service providers to conduct crucial corporate operations is known as outsourcing. When outsourcing, there is a chance that the outside provider will provide inferior service. Cost savings are frequently one of the main drivers of outsourcing.
However, there is a chance that unexpected expenditures, hidden costs, or ineffective outsourcing contract management may prevent the anticipated cost reductions from occurring. Increased employee morale does not correspond to traditional outsourcing dangers. Instead, it is more frequently viewed as a possible advantage of outsourcing when done well. Employers may be able to focus on core business operations, lessen workloads, and improve job satisfaction by outsourcing some tasks, all of which have a favorable effect on staff morale.
Read more about outsourcing on:
https://brainly.com/question/30478133
#SPJ4
Complete Question:
Which of the following is not a risk typically associated with outsourcing.
a. Increased employee morale.
b. Increased reliance on 3rd parties
c. Poor service
d. Failure to realize expected savings
Plastics Ontario Plastics Ontario (PO) has recently been incorporated under federal legislation. All the shares are owned by one man, Jimmy Arbuckle. PO will be active in the molded plastics industry, making everything from custom lettered signs to consumer products (e.g., toys) and industrial products (e.g. car dashboards). They will also supply chemicals to other, smaller plastic molding operations. Arbuckle has 20 years’ experience in both production and sales with a large Canadian plastics firm. He took advantage of several recent bankruptcy sales to acquire the manufacturing and molding equipment necessary to start his own firm. He has obtained a 10-year, fixed interest loan from the Federal Business Development Bank, a line of credit from a chartered bank for working capital and has invested $400,000 of his own money. Both banks required audited financial statements. The major pieces of equipment acquired cost $700,000. Another $60,000 will be spent transferring them to PO’s new leased facility. Arbuckle estimates another $80,000 will be spent "debugging" the equipment. Sales are expected to be made on three bases: 1. Custom signs on a prepaid basis. Signs would normally be completed within five business days but could take up to a month for a large order or if volume was high. 2. Direct sales to distributors and manufacturers on terms of 2/10, n/30. Interest on overdue accounts will be 1.4 percent per month. Customers can return defective goods for full credit, and, in common with the industry, goods carry a six-month warranty. 3. Customer goods to retail outlets on a consignment basis. Arbuckle does not expect to be able to run his molding equipment at full capacity from "outsider" orders for at least two years. Therefore, he plans to design and market a few consumer products (e.g., doll houses) to keep his operation busy. Several large retail chains have expressed interest in carrying these items but only on a consignment basis. Arbuckle estimates that it will cost him $40,000 to design and develop these items. Arbuckle hopes to break even in the second year of operation and show a profit in the third year. Losses are anticipated for the first year. He has planned to take an extremely low salary for the first three years until he is satisfied that the company can prove its viability. Arbuckle has established relatively low salary levels for his management team but has promised them generous bonus based on net income. Arbuckle has approached you, CPA, to act as financial advisor. He has requested advice on accounting policies and other relevant issues.
Required: Adopt the role of adviser to Mr. Arbuckle and draft a report responding to his request.
Recommendations: Follow proper revenue recognition, inventory valuation, and budgeting practices.
Accounting policy recommendations for Plastics Ontario (PO)?[Your Name]
Certified Public Accountant (CPA)
[Date]
Mr. Jimmy Arbuckle
Plastics Ontario (PO)
[Address]
Dear Mr. Arbuckle
Subject: Financial Advisory Report for Plastics Ontario (PO)
I am writing to provide you with advice on accounting policies and other relevant issues for Plastics Ontario (PO) as requested. Based on the information provided, I have outlined key recommendations and considerations for your business.
Accounting Policies:
Revenue Recognition:Prepaid Custom Signs: Revenue should be recognized when the signs are completed and delivered to the customer.
Direct Sales: Revenue should be recognized when goods are delivered to the customer and all revenue recognition criteria are met.
Consignment Sales: Revenue should be recognized when the products are sold by the retail outlets to end customers.
Inventory Valuation:Molded Plastics and Chemicals: These should be valued at the lower of cost (including any necessary debugging costs) or net realizable value. Costs include direct material, direct labor, and allocated production overhead.
Consumer Products (e.g., doll houses): These should be valued at the lower of cost or net realizable value. Costs include direct material, direct labor, and allocated production overhead, including the cost of design and development.
Bad Debts:Allowance for doubtful accounts should be established for potential losses from customers who fail to pay their debts.
Depreciation:Depreciate the major pieces of equipment over their estimated useful lives using an appropriate method (e.g., straight-line) and any applicable salvage value. Consider engaging a professional appraiser to determine the useful lives and salvage values, if necessary.
Warranty Expenses:Accrue for estimated warranty expenses based on historical data or industry standards.
Bonus Accruals:Accrue for bonus expenses based on predetermined criteria and calculations established for the management team.
Financial Reporting:
Prepare audited financial statements annually for compliance with the requirements of the Federal Business Development Bank and the chartered bank providing the line of credit.
Consider providing monthly or quarterly management financial statements for internal decision-making and monitoring.
Cash Flow Management:
Establish cash flow projections to monitor the availability of funds for loan repayment, working capital, and investment in growth initiatives.
Regularly review and update cash flow projections to ensure the business remains financially stable.
Budgeting and Forecasting:
Develop annual budgets and forecasts to plan for future operations, monitor performance, and assess the feasibility of your profit targets.
Continuously evaluate actual results against budgets and forecasts to identify areas for improvement or potential risks.
Tax Planning:
Consult with a tax professional to ensure compliance with federal and provincial tax laws.
Explore potential tax incentives or deductions available for businesses in the plastics industry.
Please note that this report provides general guidance, and it is recommended that you consult with an experienced accounting professional to tailor these recommendations to your specific circumstances. Additionally, I recommend regular communication with your CPA to address any emerging financial or accounting issues and to ensure ongoing compliance.
I trust that this advice will assist you in establishing sound accounting policies and help drive the success of Plastics Ontario. Should you require any further assistance, please do not hesitate to reach out.
Wishing you every success in your new venture.
Sincerely,
[Your Name]
Certified Public Accountant (CPA)
Learn more about Plastics Ontario
brainly.com/question/469141
#SPJ11
River Wild is considering purchasing a water park in Charleston, South Carolina, for $2,200,000. The new facility will generate annual net cash inflows of $495,000 for ten years. Engineers estimate th
The NPV of the investment is $2,864,055. Since the NPV is positive, the investment is feasible, and the company can proceed with the acquisition.
River Wild is contemplating purchasing a water park in Charleston, South Carolina, for $2,200,000, and they estimate that the new facility will produce annual net cash inflows of $495,000 for ten years.
Engineers have calculated that the cost of capital for the company is 8%.
In this case, the Net Present Value (NPV) of the investment opportunity is used to determine whether the investment is profitable or not.
Net Present Value (NPV) is a capital budgeting method that compares the cost of an investment with the present value of future cash flows created by the investment.
The NPV is calculated by first summing the present values of each cash flow from the investment and then subtracting the investment's initial cost.
If the outcome is positive, the investment is said to be acceptable, whereas if it is negative, the investment should be rejected.
NPV is calculated as follows: NPV = Present Value of Cash Inflows - Present Value of Cash OutflowsInitial Investment represents the Present Value of Cash Outflows.
Present Value of Cash Inflows = ∑ (Ct / (1+r)t)where: Ct = Net Cash Inflow in Year tr = the Cost of Capital For the above problem, the calculation is as follows: NPV = (-$2,200,000) + ∑ ($495,000 / (1 + 0.08)t) where t ranges from 1 to 10.
Using the formula, we can evaluate the NPV of the investment as shown below: NPV = -$2,200,000 + ($495,000 / 1.08) + ($495,000 / 1.08²) + ($495,000 / 1.08³) +...+ ($495,000 / 1.08¹⁰)Using the NPV formula, we get:$2,864,055.15 ≈ $2,864,055.
For more such questions on investment
https://brainly.com/question/29547577
#SPJ11
Edwards Company has the following partially completed stockholders' equity section of the 2021 balance sheet. *Stockholders' Equity*
7% Preferred Stock, 8,000 shares issued $1,160,000 Common Stock, 59,000 shares issued 1,534,000 Additional Paid-In Capital 2,510,000 Retained Earnings 1,360,000 Treasury Stock, 5,000 shares at cost -210,000 Total Stockholders' Equity $6,354,000
Required: (a) Calculate the par value per share for preferred stock. (b) Calculate the number of outstanding shares of common stock. Par value per share for preferred stock $ ____
Number of outstanding shares of common stock ___
(a) Calculation of Par value per share for preferred stock:We have the following information:7% Preferred Stock, 8,000 shares issued $1,160,000So, the Par value per share for preferred stock= Total amount received / No of shares issued= 1,160,000/8,000= $145 per share(b)
Calculation of Number of outstanding shares of common stock:We have the following information:Common Stock, 59,000 shares issued 1,534,000We do not have any information regarding whether there are any treasury shares. Thus, the number of outstanding shares will be 59,000.
So,Number of outstanding shares of common stock = 59,000Therefore, Par value per share for preferred stock is $145 and the number of outstanding shares of common stock is 59,000.
To know more about information visit:
https://brainly.com/question/30350623
#SPJ11
Compare and contrast two forms of project management methodologies by answering the following questions:
- How are the methodologies similar?
- How are they different?
- When might you choose one methodology over the other?
- How do enterprise goals and business environment impact what methodology is used?
Waterfall is sequential, while Agile is iterative. Waterfall suits stable requirements, Agile is adaptable. Enterprise goals and business environment influence methodology selection.
To investigate two task the board techniques, we should think about two famous methodologies: Cascade and Spry.
1.Similitudes among Cascade and Lithe:
a. The two approaches plan to convey projects effectively and accomplish wanted results.
b. The two strategies include arranging, execution, and control of venture exercises.
c. The two of them require clear objectives, extension, and targets for the undertaking.
d. The two techniques underscore the significance of powerful correspondence and joint effort among colleagues.
2.Contrasts among Cascade and Coordinated:
a. Approach: Cascade follows a successive, straight methodology, where each stage is finished prior to moving to the following. Light-footed, then again, follows an iterative and steady methodology, taking into account adaptability and variation all through the undertaking.
b. Adaptability: Cascade has restricted adaptability for evolving necessities, as it accepts that prerequisites are fixed toward the start. Coordinated embraces change, inviting new necessities and considering changes at every emphasis.
c. Conveyance: Cascade holds back nothing, complete item toward the finish of the task. Nimble spotlights on conveying working additions of the item all through the task.
d. Documentation: Cascade requires broad documentation forthright, including nitty gritty undertaking plans and necessities determinations. Dexterous underscores working programming over exhaustive documentation, zeroing in on conveying esteem as opposed to broad desk work.
e. Group Design: Cascade frequently plays particular parts and responsibilities regarding different colleagues, like venture administrators and engineers. Spry advances cross-practical groups and empowers coordinated effort among colleagues.
Picking one system over the other:
a. Cascade may be reasonable when:
Prerequisites are distinct and far-fetched to fundamentally change.
The task has a decent financial plan, timetable, and extension.
There is a reasonable, consecutive work process, and undertakings can be effectively arranged ahead of time.
b. Coordinated may be favored when:
Necessities are questionable or prone to advance.
Adaptability and versatility are critical.
Successive input and consistent improvement are wanted.
Joint effort and client association are fundamental.
Effect of big business objectives and business climate:
The decision of venture the board strategy is vigorously impacted by big business objectives and the business climate.
Undertaking objectives: Assuming the association values consistency, adherence to plans, and point by point documentation, Cascade might be liked. In the event that the emphasis is on development, responsiveness, and iterative enhancements, Coordinated can be a superior fit.
Business climate: In quickly changing enterprises or exceptionally serious business sectors, where necessities can develop rapidly, Dexterous gives a benefit. In additional steady conditions or businesses with administrative imperatives, Cascade may be more reasonable.
At last, the choice of an undertaking the board procedure relies upon elements like task qualities, partner assumptions, group elements, and the particular setting where the venture works.
To learn more about methodologies, refer:
https://brainly.com/question/32776764
#SPJ4
111. The users of management accounting include:
i for profit organisations
ii not-for-profit organisations
iii city governments
iv educational institutions
A.
i, iii and iv
B.
i
C.
Management accounting is an internal accounting function for organizations that involves providing information to internal stakeholders to assist in their planning, control, and decision-making activities. In this question, the users of management accounting include.
i for profit organizations, ii not-for-profit organizations, iii city governments, and iv educational institutions, so option A (i, iii, and iv) is the correct answer.
I. For-profit organizations: Management accounting is essential in the context of for-profit organizations because they have to make several strategic decisions to keep up with their competition and survive in the long run. Management accounting helps the for-profit organizations by providing valuable insights into key financial and non-financial data.
II. Not-for-profit organizations: Management accounting is critical for not-for-profit organizations as well, as they also have to manage their financials and operate in the best possible way with the limited resources they have.
III. City governments: Local governments require accurate financial information to make decisions that impact their constituents' quality of life. Management accounting helps local governments maintain their finances and make informed decisions on infrastructure and services that benefit citizens.
IV. Educational Institutions: Management accounting is used in educational institutions to aid them in making informed financial decisions. Educational institutions are run like businesses and require information on their costs, revenues, and resource allocations, which can be done by the use of management accounting.
To know more about management visit :
https://brainly.com/question/32216947
#SPJ11
Which of the following firms is most likely to be a pure monopolist? A. A clothing retailer with the best location in a mall B. A grocery store in a large city C. The most popular hot dog vendor on a city street corner D. The only gas station in a small, isolated town
D. The only gas station in a small, isolated city is most likely to be a pure monopolist.
A kind of profitable request is appertained to as a pure monopoly. It refers to a situation in which a single company controls the whole force of goods or services. Only one company exists under a pure monopoly, and it decides all terms, conditions, rules, and pricing. It occurs when a single business controls a product's request.
A pure monopoly is one in which a company's product is the only one on the request, with no backups. As a result, a single business effectively controls the assiduity.
As a result, by estimating the ideal pricing and volume, these enterprises may maximize earnings. A pure monopoly is a business model in which a single provider creates and sells a product or service.
To know more about pure monopolist:
https://brainly.com/question/30225536
#SPJ4
Bond X has a coupon rate of 9%, and Bond Y pays a 4% annual coupon. Assume that both bonds have a $1,000-par-value.Both bonds have 19 years to maturity. The yield to maturity for both bonds is now 9%.
a. If the interest rate rises by 2%, by what percentage will the price of the two bonds change?
b. If the interest rate drops by 2%, by what percentage will the price of the two bonds change?
c. Which bond has more interest rate risk? Why?
(a) If the interest rate rises by 2%, the price of a bond will decrease. The percentage change in the price of a bond can be approximated by the duration of the bond multiplied by the change in yield. Since both bonds have the same yield to maturity and time to maturity, the percentage change in price will be the same for both bonds.
(b) If the interest rate drops by 2%, the price of a bond will increase. Again, the percentage change in the price of a bond can be approximated by the duration of the bond multiplied by the change in yield. Since both bonds have the same yield to maturity and time to maturity, the percentage change in price will be the same for both bonds.
(c) Bond Y has more interest rate risk. The interest rate risk of a bond is determined by its duration. Duration measures the sensitivity of a bond's price to changes in interest rates. Bond Y, with its lower coupon rate of 4%, will have a longer duration compared to Bond X with a coupon rate of 9%. Longer duration implies greater price sensitivity to changes in interest rates, making Bond Y more exposed to interest rate risk.
To know more about interest visit-
brainly.com/question/15103199
#SPJ11
Prokofiev Industries is considering an investment of $500 million. The expected NPV of the investment is $82.51 million and there is no other cash outlay except for the initial investment. What is the investment's profitability index? O 1.17 0.86 O 1.14
The investment's profitability index is 1.17, which is the correct answer.
The profitability index, sometimes referred to as the profit investment ratio (PIR) is a financial metric that provides insight of the value that can be expected from a proposed investment project. It is useful in capital budgeting by assessing the relationship between the costs and benefits of a project.
The investment's profitability index can be calculated as follows: Profitability index = (present value of future cash flows) / (initial investment)The expected NPV of the investment is given as $82.51 million and the initial investment is $500 million.
Therefore, the present value of future cash flows can be obtained by adding the expected NPV to the initial investment.
That is, Present value of future cash flows = $82.51 million + $500 million= $582.51 million
The investment's profitability index can now be calculated by dividing the present value of future cash flows by the initial investment, as shown below: Profitability index = $582.51 million / $500 million= 1.17
Hence, the investment's profitability index is 1.17, which is Option O.
know more about profitability index,
https://brainly.com/question/30641835
#SPJ11
The entire market for a good is 1,000 units, and the minimum efficient scale is 5 units. Which of the following terms accurately describes this market?
Inefficient
Concentrated
Fragmented
Monopolized
Diseconomy
Fragmented is the correct term that accurately describes the market where the entire market for a good is 1,000 units, and the minimum efficient scale is 5 units. The correct answer is Fragmented.
The following term accurately describes the market when the entire market for a good is 1,000 units, and the minimum efficient scale is 5 units. Fragments are a word that accurately describes this market. Fragmented markets are a market with a lot of small companies, none of which has a significant market share. This market is said to be fragmented when the companies that make up the market are unable to capture a substantial portion of the market share. For example, consider a market with a minimum efficient scale of 5 units and a market for a good of 1,000 units. This market will be very fragmented because no single firm can effectively meet consumer needs. As a result, the market will be fragmented, with several companies offering a few units each to meet the demand for the good.
Therefore, fragmented is the correct term that accurately describes the market where the entire market for a good is 1,000 units, and the minimum efficient scale is 5 units.
know more about Fragmented markets
https://brainly.com/question/28908711
#SPJ11
The UK Government would like to hire Dr Jones to search for a ship full of gold which was sunk during WW II. Dr Jones can exert effort e=1 or can be lazy and exert no effort e=0 while searching for the golds. Suppose making an effort is costly and has a cost of c= 20 for Dr Jones but it increases the probability that he can find the lost ship. The value of the golds inside the ship is 40,000. If Dr Jones exerts no effort then there is only a chance equal to 25% that he finds the ship. But if he exerts effort he will find the ship with a 75% chance.
The Government cannot observe whether Dr Jones is exerting effort or not but obviously they can observe whether he found the ship or not. Suppose the Government proposes a payment to Dr Jones as a function of the final outcome. Let t0 denote the payment if the ship is not found and t1 the payment if the ship is found. Dr Jones has an initial asset of 10,000 and his utility for a payment of x and effort cost of c is given by, U(x) = [(10,000+x)^1/2] - c
a. Derive the conditions on parameters t0 and t1 such that Dr Jones accepts the contract and makes an effort (participation and incentive compatibility conditions). (6 marks)
b. Find the optimal payments t0 and t1.(6 marks)
The conditions are: t0 ≥ -10000 + 20t1 - 200t1^2 and t1 ≥ 220 + t0/2. The optimal payments are t0 = 3000 and t1 = 7750.
a) Participation constraint (PC) tells us that the doctor should receive a minimum of his initial wealth, plus the payment t0 if he exerts no effort, and his initial wealth, plus the payment t1 if he does make an effort.
This can be formulated as:
U(10000 + t0) ≥ U(10000)U(10000 + t1 − 20) ≥ U(10000)
Alternatively, these two inequalities can be rewritten as:
t0 ≥ −10000 + 20t1 − 200t1²t1 ≥ 220 + t0/2
Incentive compatibility (IC) condition states that the doctor should have no incentive to shirk. This means that exerting an effort should always be preferred to exerting no effort. We have:
U(10000 + t1 − 20) ≥ 0.75U(10000 + 40000 − t1) + 0.25U(10000 + t0)U(10000) ≥ 0.25U(10000 + t1 − 20) + 0.75U(10000 + t0)
Alternatively, these two inequalities can be rewritten as:-
t1² + 2t1 + 200t0 - 200t1t0 + 125000 ≥ 0t1 - t0/4 - 11000 ≥ 0b)
For the optimal values of t0 and t1, we first note that the IC condition gives us t1 = t0/4 + 11000. Substituting this expression into the PC inequality for t1, we obtain:
t0 ≥ 3000
Applying the PC inequality for t0, we get:
t1 ≥ 7750
Therefore, the optimal values of t0 and t1 are t0 = 3000 and t1 = 7750.
To know more about Incentive compatibility visit:
https://brainly.com/question/31797905
#SPJ11
.Examples of price discrimination Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good Price Discrimination Yes No Scenario Most restaurants will supply a free dessert if it is the customer's birthday, Assume that this is not specifically advertised by restaurants. commercials and other means of advertising. Note that the price of one pair of shoes is the regular retail price, so a customer must buy two pairs of shoes to receive the discount. Grade It Now Save & Continue Continue without saving
Yes, the scenario of restaurants offering a free dessert for customers' birthdays is an example of price discrimination.
Value Separation:
Indeed Situation: Most eateries will supply a free pastry on the off chance that it is the client's birthday, expecting this isn't explicitly promoted by cafés.
Clarification: This situation can be viewed to act as an illustration of cost separation in light of the fact that the market (clients feasting at cafés) can be portioned into two gatherings: those commending their birthday events and the people who are not.
Clients who have their birthday celebrations get a free sweet, while different clients don't. This training permits the eatery to give an alternate cost (free treat) to a particular gathering of clients in view of their qualities (birthday festivity).
No Situation: Note that the cost of one sets of shoes is the normal retail cost, so a client should purchase two sets of shoes to get the rebate.
Clarification: This situation doesn't include cost separation. The client is expected to purchase two sets of shoes to get a markdown on the subsequent pair.
This estimating procedure is normally known as a mass or amount markdown, where the value decrease depends on the amount bought as opposed to any client explicit qualities. All clients who buy two sets of shoes immediately get a similar limited value, no matter what some other division factors.
Generally, cost segregation happens when various costs are charged to various gatherings of clients in light of their qualities or ability to pay, while uniform estimating applies similar cost to all clients for a long term benefit or administration.
To learn more about price discrimination, refer:
https://brainly.com/question/32010039
#SPJ4
Your company wants to improve sales. Past sales data indicate that the average sale was $100 per transaction. After training your sales force, recent sales data (taken from a sample of 25 salesmen) indicates an average sale of $130, with a standard deviation of $15. Did the training work? Test your hypothesis at a 5% significance level. Assume a normal distribution
We can infer from the data and hypothesis test that the training significantly affected sales because the average sale of $130 differs significantly from the prior average of $100.
Here,
α = 0.05
t = (130 - 100) / (15 / √25)
t = 30 / (15 / 5) = 10
The increase in average sales from $100 to $130 suggests that the training had a significant effect on sales. We computed a test statistic of 10, using a one sample t-test with a significance level of 5%. We discovered that |10| > 2.064 when comparing this to the critical value of 2.064 for a two tailed test which led us to reject the null hypothesis.
This shows that the training's impact on sales was statistically significant. This conclusion is further supported by the average sale increase and the standard deviation of $15. Therefore, we can state with confidence that the training program was successful in enhancing the company's sales performance.
Learn more about standard deviation at:
brainly.com/question/29115611
#SPJ4
Smith Manufacturing purchased on account $59,000 of direct materials and $4,000 of indirect materials. Which of the following journal entries would correctly record the transaction? A. Work-in-Process Inventory 59,000 Manufacturing Overhead 4,000 Raw Materials Inventory 63,000
B. Accounts Payable 63,000 Raw Materials Inventory 63,000 C. Raw Materials Inventory 63,000 Accounts Payable 63,000 D. Raw Materials Inventory 63,000 Finished Goods Inventory 59,000 Work-in-Process Inventory 4,000
In this transaction, Smith Manufacturing purchased on account $59,000 of direct materials and $4,000 of indirect materials. The journal entry that would correctly record this transaction is C.
Raw Materials Inventory 63,000 Accounts Payable 63,000Explanation:Raw materials refer to any materials or goods that are used by a manufacturer in the production process. On the other hand, manufacturing overhead refers to all indirect manufacturing costs. Manufacturing overheads include costs such as depreciation of manufacturing equipment, rent of the manufacturing building, utility costs, and indirect labor costs. In this case, the company purchased both direct materials and indirect materials on account, meaning that the company is yet to pay the supplier. Therefore, the company will record this transaction in the accounting journal using the Accounts Payable account. The Raw Materials Inventory account will also be credited for the full amount of the materials purchased (direct and indirect). The two accounts affected are therefore the Raw Materials Inventory account and the Accounts Payable account.
The journal entry that will correctly record this transaction will be:C. Raw Materials Inventory 63,000 Accounts Payable 63,000This journal entry debits Raw Materials Inventory account and credits Accounts Payable account. It shows that the company now has $63,000 of raw materials in stock and owes $63,000 to the supplier for the purchase. This journal entry is the only option that follows accounting principles.
To know more about inventories visit:
https://brainly.com/question/31146932
#SPJ11
1. Explain how the open market works through the balance sheet of the central bank and related entities?
2. Indicate what mechanism the economy has a demand shock, the central bank does not need to act, the economy will still recover?
3. Distinguish between commercial banks and central banks.
4. Analyze the possible consequences of the Central Bank lending to the Government
5. In the long run, does monetary policy increase economic growth? If so, why, if not, what drives economic growth?
1. The open market works through the balance sheet of the central bank and related entities as follows: The central bank buys securities from the commercial banks and the public in the open market.
As a result, the reserves of the commercial banks increase while the securities held by the public decrease. This transaction increases the money supply in the economy, which leads to a decrease in interest rates and an increase in aggregate demand. In this way, the central bank can control the money supply and interest rates in the economy to achieve its policy goals.
2. When the economy experiences a demand shock, the central bank does not need to act because the economy will recover on its own through market mechanisms. For example, if there is a decrease in demand for goods and services, prices will fall, making them more affordable, and demand will increase. This will stimulate economic activity and lead to a recovery in output and employment.
3. Commercial banks are financial institutions that accept deposits from the public and make loans to individuals and businesses. Central banks, on the other hand, are responsible for managing the money supply, regulating financial institutions, and maintaining price stability.
4. Lending to the government can have several possible consequences for the central bank. For example, if the central bank lends money to the government, it can increase the money supply, which can lead to inflation. Additionally, lending to the government can reduce the independence of the central bank and lead to political interference in monetary policy.
5. Monetary policy can increase economic growth in the short run by increasing aggregate demand and lowering interest rates. However, in the long run, economic growth is driven by productivity growth and technological innovation. Monetary policy can support these factors by creating a stable macroeconomic environment, but it cannot create economic growth on its own.
know more about open market
https://brainly.com/question/31441710
#SPJ11
Which one of the following would be categorized as a cash flow from investing activities?
a. Proceeds of a loan issue. b. Dividends paid. c. Proceeds from sale of equipment. d. Cash paid to Suppliers
Cash flow from investing activities is a cash flow component in the cash flow statement that reflects cash generated or used in investment activities like purchase, sale, or disposal of property, plant, and investments.
It is a cash flow from investing activities category that includes investments in long-term assets and other companies. It's a crucial component of the cash flow statement because it provides information about the company's long-term investment strategies and how they are using their cash to grow their business.
The answer is option C: Proceeds from sale of equipment. It is an investing activity because the sale of equipment is an investment in fixed assets. Any proceeds earned from the sale of fixed assets such as equipment or property would be considered as cash inflow from investing activities. Option A is a cash flow from financing activities since it deals with loans or borrowings.
To know more about cash flow visit:
https://brainly.com/question/27994727
#SPJ11
Contractionary fiscal policy would involve all of:________
Contractionary fiscal policy involves the following measures
Decreasing government spendingIncreasing taxesDecreasing government transfersImplementing restrictive fiscal policiesMeasure involve in fiscal policyDecreasing government spending: The government reduces its spending on goods, services, and programs. This reduction in spending aims to decrease aggregate demand and control inflationary pressures.
Increasing taxes: the government raises tax rates or eliminates certain tax benefits to reduce disposable income and decrease consumer spending. Higher taxes reduce the purchasing power of individuals and businesses, leading to a decrease in aggregate demand.
Decreasing government transfers: The government reduces the amount of money it transfers to individuals or households through programs such as welfare benefits or unemployment insurance. This reduction in transfers aims to reduce disposable income and decrease consumption.
Implementing restrictive fiscal policies: The government may adopt measures to control borrowing and limit access to credit. This can include tightening regulations on lending or increasing interest rates to discourage borrowing and investment.
Learn more about fiscal policy at
https://brainly.com/question/6583917
#SPJ4