Problems and Applications Q10 A friend of yours is considering two cell phone service providers. Provider A charges $100 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation QD=120-30P, where P is the price of a minute. With Provider A, the cost of an extra minute is S . With Provider B, the cost of an extra minute is $ Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for minutes, and if he used Provider B, he would talk for minutes. This means your friend would pay $ for service with Provider A and S for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Note: You will not be graded on any changes you make to the graph. Your friend would obtain $ in consumer surplus with Provider A and S Given this information, which provider would you recommend that your friend choose? Provider A O Provider B in consumer surplus with Provider B.
Answers
Therefore, Provider A is recommended for the friend to choose.
Given that the cost of an extra minute with Provider A is S, and the cost of an extra minute with Provider B is $1.
Let P be the price of a minute. Thus, the cost of making Q minutes of phone calls with Provider A is 100 + S * (Q - 120)/30
The cost of making Q minutes of phone calls with Provider B is Q + 100.
As per the graph, the vertical intercept of the demand curve is 120 and the horizontal intercept is 4.
Thus, the equation of the demand curve can be written as: Q
D = 120 - 30P.
Draw the Demand curve: Thus, if the friend uses Provider A,
The cost of making Q minutes of phone calls is 100 + S * (Q - 120)/30.
The demand curve is given by QD = 120 - 30P. If the friend used Provider B, the cost of making Q minutes of phone calls is Q + 100. The friend would pay $ for service with Provider A and S for service with Provider B. The friend would obtain $ in consumer surplus with Provider A and S in consumer surplus with Provider B. The consumer surplus with Provider A would be $250.
The consumer surplus with Provider B would be $(1/2)(4)(120 - S) = 240 - 2S. Thus, it is clear that if the friend uses Provider A, he would obtain more consumer surplus than if he uses Provider B.
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Related Questions
Calculate standard deviation of the following sample: 210,215,205,190,210 A. 9.61769203083567 B. 92.5102081739211 C. 19.2353840616713 D. 11.6619037896912 20. A firm claimed net income of $423,000. It had sales of $350,000 and operating expenses of $43,000. What is the firm's tax expense? A. $30,000 B. $3.000 C. $43,000 D. $73.000 23. Suppose a firm borrows $1.5 million at 7 percent interest. The corporate tax rate is 36 percent What is the aftet-tax interest tate on this loan? A. B. B4\% B. 4.84% C. 4.48% D. 844% 25. Girondist Company is offering $3.5 million of new securities to the general public. Under Regulation A, the SEC oversees this offering because A. it oversees all transactions. B. it's under $5 million. C. it's more than $2 million. D. it's a private corporation. 26. An investment offers a perpetual cash flow of $300 every year. The return you require on such an investment is 6 percent. What is the value of this investment? A. $5,000 B. $318 C. $283 D. $3,000 27. Frame Corporation produces picture frames. Each sells for $7.99. Its variable cost per unit is $5.25. What is the breakeven point for Frame Corporation assuming it has a fixed cost of $13,700? A. 50,000 units B. 5,000 units C. 2,610 units D. 1,715 units 29. A project requires an initial investment of $20,000 and will pay only one payment of $22,000 in one year. What's the IRR? A. 12% B. 22% C. 20% D. 10% 30. Company A has just paid a dividend of $5 per share. The dividend of this company grows at a steady rate of 7 percent per year. Based on this information, what will the dividend be in five years? A. $7.01 B. $6.75 C. $5.35 D. $1.07 31. Calculate the expected return for the portfolio listed below: - Stock A-Value: 3,000 Expected Return: 11 percent - Stock B-Value: 7,000 Expected Return: 15 percent A. 12.2% B. 13.8% C. 12.8% D. 18.3% 34. You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.6, and the total portfolio is equally as risky as the market. What's the beta of the second stock? A. 2.4 B. 0.4 C. 3.4 D. 1.4 36. Suppose a particular investment had annual returns of 8 percent, 11 percent, 6 percent, and 2 percent over the last four years. Calculate the average arithmetic return over this four-year period. A. 1.08% B. 7.65% C. 1.81% D. 6.75% 38. Assume that a firm has an average net income of $210,000 and an average book value of $840,000. What's the firm's average accounting return? A. 40% B. 20% C. 52% D. 25%
Answers
The standard deviation of the sample is 11.66, the firm's tax expense is $3,000, and the after-tax interest rate is 4.48%.The main answer provides the calculated values of the standard deviation, tax expense, and after-tax interest rate based on the given information.
For the first question, to calculate the standard deviation of the given sample (210, 215, 205, 190, 210), the formula for sample standard deviation is applied. The result is approximately 11.66.
In the second question, the firm's net income of $423,000, sales of $350,000, and operating expenses of $43,000 are given. By subtracting the operating expenses from the net income, the firm's tax expense is calculated to be $3,000.
In the third question, the after-tax interest rate on a $1.5 million loan at 7% interest with a corporate tax rate of 36% is calculated. The after-tax interest rate is determined to be approximately 4.48%.
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Socialist economic systems provide ample opportunities for educational development because the education system _____. Multiple choice question.
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Socialist economic systems may provide ample opportunities for educational development because the education system is often a high priority in these systems.
In socialist economic systems, education is often viewed as a fundamental right, and governments typically invest heavily in education to ensure that all citizens have access to high-quality education. Education is seen as a key factor in promoting social equality and providing individuals with the skills and knowledge they need to contribute to society. In socialist economic systems, the government may provide free education to all citizens, from preschool to university level, and may also offer additional educational resources such as libraries, research facilities, and vocational training programs. The aim is to provide equal educational opportunities for all, regardless of their social or economic background, which may lead to greater educational development and a more skilled workforce.
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nathan bayer will use the single filing status. his taxable income was $57,480. what is nathan's 2021 federal income tax?
Answers
Nathan's 2021 federal income tax, given his single filling status, and this taxable income, can be found to be $ 8, 394. 10
What is taxable income ?The portion of your gross income known as "taxable income" is used to determine your tax liability for a certain tax year. It can be roughly defined as adjusted gross income (AGI) less permitted standard or itemized deductions. Wages, salaries, bonuses, and gratuities are all considered forms of taxable income, as are investment income and different unearned income streams.
For the year 2021, Nathan Bayer earned a taxable income of $ 57, 480 which would put him in the 22 % bracket.
In this bracket, his taxable income would be:
= 4, 664 + ( 22 % x excess over $ 40, 525)
= 4, 664 + ( 22 % x ( 57, 480 - 40, 525 ))
= $ 8, 394. 10
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Max is using a search engine to do research on trends in his industry when he comes across a website that isn’t necessarily related to his research–but is interesting and engaging. Without realizing it, Max spends over an hour browsing through the webpage’s numerous articles and links. When his boss asks him if his research report will be ready by the end of the day, Max isn’t sure how to respond. He’s hardly done any work–but it’s not like he was purposely avoiding work. He was using the search engine for the purpose of research, after all. It’s not his fault that the search results weren’t very relevant. Max is considering asking his boss for an extension on his deadline so that he can spend more time researching. What do you think? What should Max do?
Answers
In this situation, Max has to first give his boss some advance notice that he wont be able to complete the report before deadline, explain himself briefly as to why that is, then ask for more time to be able to complete the task.
What is a deadline?A deadline indicates that a task or project is anticipated to be finished by that date and time. There is a clear expectation of what must be provided and by when thanks to deadlines. Employees are able to take charge of their work in this way and include deadlines into their time management techniques.
It's critical to schedule deadlines in advance because your work may be delayed. Recognize that some resources might be delayed and that some people might not be available. You may prevent the disaster of missing a deadline by making plans in advance.
Deadlines are crucial in business for a variety of reasons. They establish standards and encourage productive behavior in the workplace.
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Managerial Economics
Gregory Mankiw] Principles of Microeconomics, Chapters 13 and 14 mid practises
When buyers in a competitive market take the selling price as given, what are they said to be?
a. market entrants
b. Monopolists
c. free riders
d. price takers
Which of the following statements about a competitive market is most accurate?
a. Each seller can sell all he wants to sell at the going price.
b. Sellers are price setters.
c. The goods offered by the different sellers are heterogeneous.
d. There are barriers to entry.
How is total profit for a firm calculated?
a. marginal revenue minus average cost
b. average revenue minus average cost
c. marginal revenue minus marginal cost
d. total revenue minus total cost
Answers
Sellers are know as price taker in a competitive market. Therefore option
(D) is correct answer and each seller can sell all he wants to sell at ongoing price in competitive market, Hence option (A) is correct answer. Total profit of firm is total revenue minus total cost. Option (D) is answer.
1. When buyers in a competitive market take the selling price as given, they are said to be " price takers." Hence option (D) is correct answer.
2. The most accurate statement about a competitive market is "Each seller can sell all he wants to sell at the going price." Option (A) is correct answer. In a competitive market, sellers are price takers and cannot individually influence the market price. They can only adjust their quantity of output based on the prevailing market price.
3. Total profit for a firm is calculated by subtracting total costs from total revenue. Therefore, the correct answer is option (D). total revenue minus total cost." This calculation provides an overall measure of the profitability of the firm.
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answer? i dont know what this is..
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What is law of demand?
A basic tenet of economics is the law of demand, according to which there is an inverse connection between price and quantity requested.
What is deflation?
Deflation is a drop in the average level of prices for goods and services. When the rate of inflation is lower than 0%, deflation takes place.
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under the periodic inventory system, village fabrics purchases navy plaid fabric used in its fabric-selling business in the following lots: june 5 - 4 yards at $2.50 per yard, june 12 - 7 yards at $3.00 per yard, june 17 - 8 yards at $3.50 per yard. what is the periodic average cost of the fabric per yard?
Answers
The periodic average cost of the fabric per yard under the periodic inventory system is $3.11 per yard.
What is a system of periodic inventories?
The physical inventory count of goods is routinely scheduled under the periodic inventory system. Maintenance on physical inventories can be costly because it takes a lot of time and effort. As a result, many companies only occasionally conduct physical inventory counts. Periodic inventory systems are frequently used in place of perpetual inventory systems.
Every transaction in a periodic system is noted in the company's buy account, which keeps track of inventory by deducting the cost of goods sold (COGS). However, it does not account for returned items, damaged, lost, or destroyed items.
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if households in the economy decide to take money out of checking account deposits and hold it as currency, this will initially
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If households in the economy decide to take money out of checking account deposits and hold it as currency, this will initially reduce the money supply.
When households withdraw money from their checking account deposits and choose to hold it as currency, it results in a decrease in the amount of money available in the banking system. The money that was once in the form of checking account balances is now held outside of the banking system as physical currency. As a result, the money supply in the economy decreases.
This reduction in the money supply can have various effects on the economy, such as potentially reducing the funds available for lending and spending. It can impact interest rates, inflation, and overall economic activity, depending on the magnitude and duration of the shift from checking account deposits to currency holdings.
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o
A command economy tends to exist under a
democratic government that provides little regulation.
socialist government that provides some regulation.
representative government that provides no regulation.
communist government that provides a lot of regulation.
Answers
The correct answer is D. Communist government that provides a lot of regulation.
Explanation:
In a command economy, the economy is not controlled by the relations of supply/demand or by individual decisions to produce/buy/sell products. Instead, these aspects of the economy are controlled by the government. Moreover, this type of economy is most common in communists or socialists governments because in these, individual freedoms tend to be limited and the government has a lot of control over most aspects of the society, including economy. Also, in a command economy, the government issues a lot of regulations and has a lot of control. According to this, the correct answer is D.
Answer:
(D) communist government that provides a lot of regulation.
Explanation:
Your Welcome :D
Culture, demand and competition impose saturation limits above which no amount of advertising spending can increase sales. True or false.
Answers
True that culture, demand, and competition impose saturation limits above which no amount of advertising spending can increase sales.
It is true that culture, demand, and competition impose saturation limits above which no amount of advertising spending can increase sales. Advertising can help increase brand awareness, familiarity, and preference among consumers, but there comes a point where the market becomes saturated, and additional advertising spending does not lead to significant increases in sales. The saturation limit may vary depending on the product or service, the industry, and the target audience. Therefore, it is crucial for businesses to understand their market and determine the optimal advertising budget to achieve their sales goals.
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in terms of the community of stakeholders outside the organization, the faa is in boeing’s ______ environment.
Answers
In terms of the community of stakeholders outside the organization, the FAA is in boeing’s task environment.
What is the boeing’s task environment?Environmental sustainability, global & community engagement, and diversity & inclusion are the three main areas where Boeing Corporate Social Responsibility programs are focused on, which help in fostering social and environmental sustainability.
Therefore, in terms of the community of stakeholders outside the organization, the faa is in boeing’s task environment.
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Select the correct answer. Richard runs a small manufacturing business. Recently, he discovered that some of the financial transactions recorded in the account books seem misleading. He suspects that some of his employees might be misusing the business’s cash reserves. Which of these measures of internal accounting controls may Richard take to avoid such instances in the future?
A. firing all the employees in the given department
B. reducing the salaries of suspected employees
C. sanctioning financial transactions in advance in the future
D. organizing a conference to discuss such issues
Answers
Answer:
C. sanctioning financial transactions in advance in the future
Explanation:
Sanctioning a financial transaction means approving or authorizing a transaction to be executed. Requiring approval for financial transactions is one of the measures of internal control. Employees are required to seek approval from management or authorities before proceeding with transactions.
Richard should demand that he sanctions all transactions in advance. Through this measure, he will get details and explanations of financial transactions before they happen.
What is the purpose of jim lentz’s series of presentations to toyota employees in california?.
Answers
To address employees concerns and provide details about relocation.
Relocation of Employees
CEO Jim Lent addressed the employees at Toyota to their concerns and to inform them about the relocation that is planned at a board level and then it is to be implemented.
CEO of Toyota is therefore addressing the employees to provide them details about relocation and to address their concerns.
CEO of ToyotaJim Lent CEO of Toyota, addressed the employees to provide them details about relocation and to address their concerns.
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The top five cities where venture capitalists are investing their money represent 10% of the global total.
True
False
Answers
it is false statement that the top five cities where venture capitalists are investing their money represent 10% of the global total.
What is a Venture capital?
This refers to the managerial expertise provided by investors to startup firms with long-term growth potential.
However, it is false that the top five cities where venture capitalists are investing their money represent 10% of the global total.
Therefore, the statement is a false statement.
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when a high school graduate needs to make a decision between continuing his or her education or entering the job market, but he or she cannot go because he or she has limited means to pay for tuition, books, and incidentals, this is known as .
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When a high school graduate needs to make a decision between continuing his or her education or entering the job market, but he or she cannot go because he or she has limited means to pay for tuition, books, and incidentals, this is known as scarcity.
What is scarcity?Scarcity refers to the fact that there are few resources compared with our needs and desires.
Scarcity can be with respect to any natural resources or with respect to any scarce commodity. In this case, scarcity refers to a high school graduate that doesn't have money to pay for his university and has to work. Another example can be the scarcity of water on the planet.
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Which of the following is NOT one of the credit reporting agencies?
Answers
Answer:
we need the opitions lol
Explanation:
20. Analyzing market research is usually done by identifying________ making comparisons and developing________
Answers
Answer:
Define your research objective. The first step in the market research process
Explanation:
is to define your research objectives. ...
Develop your research questions. ...
Gather your research. ...
Interpret your findings. ...
Draw conclusions and make decisions.
Solo podrá vender lo que las personas están dispuestas a comprar a ese precio. De esta forma, si el precio que pone es muy alto, venderá pocas unidades mientras que si es bajo, venderá más unidades.
Answers
This question is incomplete, and I couldn't find its missing part online, but I can still assume that what you are giving is a definition and you need to find what it refers to.
Answer:
This definition refers to a monopoly.
Explanation:
A monopoly is a form of market where there is only one company that offers a product or service.
When this happens, only one company can offer this product or service since it has no close competition. This means that consumers who want said product or service can only go to this company and submit to the prices that it may impose.
The established price could be very high, but this could produce a low number of purchases by consumers. While if the price is low, consumers will be more.
The Continuous Improvement and Employee Involvement intersection in the integrative view of TQM requires O A. that the employees are actually empowered to do their jobs and given autonomy in decision making. O B. making quality an integral part of long-term planning. O C. a commitment to ongoing employee training in statistical tools and their usage. O D. management by fact, and not authority
Answers
The Continuous Improvement and Employee Involvement intersection in the integrative view of TQM requires that the employees are actually empowered to do their jobs and given autonomy in decision making. Thus, the correct answer is option A.
What is TQM?Total Quality Management (TQM) is a management approach that aims to provide long-term success by providing unparalleled customer satisfaction through the consistent delivery of quality IT services.
The goal of total quality management is to "construct and make permanent a climate where employees continuously enhance their ability to supply on-demand goods and services that customers will find particularly valuable."
Therefore, the employees are actually empowered to do their jobs and given autonomy in decision making under the integrative view of TQM.
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bzzagent mini case: bzzagent is a word-of-mouth marketing agency that runs brand advocate programs for global brands. it recently partnered with a company to pair its social media and word-of-mouth insights with shopper loyalty data. the results indicated that consumers who were making repeat purchases were also more engaged and created a higher volume of advocacy. the information from this study is important to marketers, who are trying to find ways to engage advocates and influencers, especially via social media. marketers are trying to figure out the characteristics of individuals who are most likely to influence others. in the bzzagent mini case, marketers are interested in finding individuals who influence others. the process by which one influential person informally influences the actions or attitudes of others is known as . question 28 options: a) referencing b) opinion leadership c) blogging d) positioning e) targeting
Answers
Marketers are searching for people who have sway over others in the BZZAGENT MINI CASE. Opinion leadership is the method by which one powerful individual subtly shapes the behaviors or attitudes of others.
The act of interpreting media messages or content for less sophisticated media users is known as opinion leadership. Usually, individuals who agree with opinion leaders hold them in high regard. The two-step communication flow idea put forward by Paul Lazarsfeld and Elihu Katz is where opinion leadership originates. Robert K. Merton, C. Wright Mills, and Bernard Berelson were significant contributors to the development of the opinion leader concept. The diffusion of innovations, concepts, or commercial goods is attempted to be explained by a number of models, some of which include this hypothesis.
Because we frequently ask for advice from others in a social setting, opinion leaders play a crucial part in information flow. The target audiences do not directly receive information from the media.
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People achieve ______ when they have "balanced their margins" according to the utility-maximizing rule
Answers
It should be noted that People achieve Consumer's Equilibrium when they have "balanced their margins" .
What is Consumer's Equilibrium?Consumer's Equilibrium can be explained as the maximum satisfaction state by a consumer.
It is a situation where a income is been used to purchase one or more commodities by consumer so as to achieve maximum satisfaction.
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The amount of xylene that can be used in household paint is legally limited to 0.03 percent. Anything beyond this amount is hazardous to health and the environment, and considered a legal offense. Consequently, CW Paints Corp. has vouched to make its products as safe as possible. Therefore, it manufactures xylene-free paints even though this increases its costs and reduces the dividends paid to its shareholders in the long run. Which of the following responsibilities is CW Paints Corp. primarily compromising in this scenario?
A) legal responsibilities toward the government
B) economic responsibilities toward its shareholders
C) philanthropic responsibilities toward the local community
D) ethical responsibilities toward the society
Answers
Answer: B) economic responsibilities toward its shareholders
Explanation:
The primary purpose of a company is to maximize shareholder wealth. This means that it is to pursue strategy that would ensure the maximum return to its shareholders. This is also known as its economic responsibility towards shareholders.
Producing xylene-free paints reduces the dividends that are going to shareholders so it would seem that shareholder wealth is not being maximized and they are not getting the maximum return they could get so the company is violating its economic responsibilities towards shareholders. It is for a good cause though.
what is an example of an intangible property? group of answer choices infrastructure machinery leased equipment advanced computing systems patent
Answers
An example of an intangible property is a patent. Intangible Property is a property without a physical existence.
A patent is an exclusive right granted by the government to an inventor for a certain period of time. It gives the inventor the right to prevent others from using, making, or selling the invention without their permission. Patents are considered intangible property because they are not physical assets, but rather a legal right or privilege. Other examples of intangible property include trademarks, copyrights, and trade secrets.
That intangible property refers to non-physical assets, and a patent, which grants legal rights to an invention or process, is a non-physical asset. Other choices, like infrastructure, machinery, leased equipment, and advanced computing systems, are examples of tangible property as they are physical assets.
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what is the best way the marketing department can perform its key role of looking outward?
Answers
The best way for the marketing department to perform its key role of looking outward is by conducting market research.
By gathering and analyzing data on customer needs, preferences, and behaviors, the marketing department can better understand the target audience and develop effective marketing strategies. Additionally, the marketing department should also monitor the competitive landscape and stay up-to-date on industry trends. This will allow the marketing department to identify new opportunities and develop marketing strategies that meet the evolving needs of customers.
Ultimately, the marketing department's outward focus is essential for the success of the organization, as it allows the company to effectively reach and engage with its target audience.
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Which of the following is used to make the size estimation when developing the schedule? : O LOC information from the successfully completed similar past projects O LOC information from the existing project Number of transactional functions of the target application
Answers
The option used to make size estimation when developing the schedule is: "LOC information from the successfully completed similar past projects."
Size estimation plays a crucial role in developing an accurate schedule for a project. In this context, using the "LOC (Lines of Code) information from the successfully completed similar past projects" is a common approach. By leveraging historical data from similar projects that have been successfully completed, the organization can analyze the number of lines of code required and use it as a basis for estimating the size of the current project. This approach assumes that projects with similar characteristics and functionality will have comparable levels of effort and time required for completion. By considering the past project's LOC information, project managers can make informed decisions and create more realistic schedules for the development process.
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joan is the project manager for her company and she's working with her project team to determine role in the project. joan and the team agree that they should create a grid that'll map out the project resources to each work package in the wbs. this will help the team know what they're to do and they can be ensured that each of the work packages in the project's wbs will be created. what joan and his team member creating in this scenario?
Answers
Joan and her project team are creating a resource allocation matrix or a Responsibility Assignment Matrix (RAM) in this scenario.
The resource allocation matrix is a table that maps project resources to each work package in the Work Breakdown Structure (WBS). This matrix helps in identifying what specific resources are required to complete each work package and ensures that each work package in the project's WBS is accounted for. The resource allocation matrix also helps to clarify roles and responsibilities for each team member involved in the project, providing a clear overview of who is responsible for what task in the project.
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Media planners seek to reach the largest possible percentage of their target audience with no monetary limitations.
a) True
b) False
Answers
As regards media planners trying to reach a large percentage of their target audience with no limitations, this is False.
Why is this statement false?The ultimate goal of a company is to reduce costs and make more profit. As a result, media planners try to keep costs as low as possible when engaging in ad campaigns.
This means that they try to reach the largest percentage of people they can reach, with limitations placed on them.
In conclusion, this is false.
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at a shareholder meeting,shareholders vote to approve or disapproveimportant corporate business, whichis presented to the shareholders in the form ofwhat?
Answers
At a shareholder meeting, important corporate business is typically presented to the shareholders in the form of resolutions or proposals.
These resolutions outline specific actions or decisions that require shareholder approval or disapproval. The proposals are usually prepared by the company's management or board of directors and cover various matters such as electing directors, approving mergers or acquisitions, amending bylaws, issuing new shares, or making significant changes to corporate governance policies.
Shareholders are provided with relevant information and documentation regarding the proposed resolutions prior to the meeting, typically in the form of proxy statements or circulars. These materials contain details about the business being presented, arguments for and against the proposal, and any recommendations made by the company's management or board.
During the shareholder meeting, shareholders have the opportunity to discuss the proposals, ask questions, and ultimately cast their votes to approve or disapprove the resolutions. The voting results determine the outcome of the proposed corporate business and guide the company's future actions and decisions.
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Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
Answers
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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When Tyler, a veteran, started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and distribute safety goggles for construction workers and military personnel. He realized most of his business would not be through walk-in customers but rather large orders from companies. He chose to locate in a government-subsidized area called a(n) __________, where he would receive tax breaks and other government support.
Answers
Tyler chose to locate his business in an area which government offer subsized tax rate and tax break in other favor job creation called an enterprise zone.
Areas which are specially offered subsidized rate of taxes in other encourage economic development of such geographical area are called enterprise zone.
In other ensure that companies locate their offices in this zones, government offers support and gives other enticing offers in other to promote job creation in such environment.
Therefore, government - subsidized rates are enjoyed in enterprise zones.
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