Aggregate Demand I-Work It Out Question 1. In the Keynesian cross model, assume that the consumption function is given by C= $170 +0.7(Y-T) Planned investment is $100; government purchases and taxes are both $100. d. What level of government purchases is needed to achieve an income of $1120? Assume taxes remain at $100. G=S e. What level of taxes is needed to achieve an income of $1120? Assume government purchases remain at $100. T=S

Answers

Answer 1
d. What level of government purchases is needed to achieve an income of $1120? Assume taxes remain at $100.

We know that aggregate demand (AD) is equal to consumption (C) plus investment (I) plus government purchases (G) minus net exports (NX). In this case, NX is assumed to be 0, so AD = C + I + G.

We also know that the consumption function is given by C = $170 + 0.7(Y - T). In this case, Y is income and T is taxes.

We are told that taxes are $100 and that we want to achieve an income of $1120. Plugging these values into the consumption function, we get:

Code snippet
C = $170 + 0.7(Y - $100) = $170 + 0.7(1120 - 100) = $170 + 0.7(1020) = $774
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We are also told that AD = $1120. Therefore, we need to add $346 to government purchases (G) in order to achieve an income of $1120.

Code snippet
AD = C + I + G = $774 + $100 + G = $1120
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Code snippet
G = $1120 - $774 - $100 = $346
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Therefore, the level of government purchases needed to achieve an income of $1120 is $346.

e. What level of taxes is needed to achieve an income of $1120? Assume government purchases remain at $100.

We know that aggregate demand (AD) is equal to consumption (C) plus investment (I) plus government purchases (G) minus net exports (NX). In this case, NX is assumed to be 0, so AD = C + I + G.

We also know that the consumption function is given by C = $170 + 0.7(Y - T). In this case, Y is income and T is taxes.

We are told that government purchases are $100 and that we want to achieve an income of $1120. Plugging these values into the consumption function, we get:

Code snippet
C = $170 + 0.7(Y - $100) = $170 + 0.7(1120 - 100) = $170 + 0.7(1020) = $774
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We are also told that AD = $1120. Therefore, we need to subtract $346 from taxes (T) in order to achieve an income of $1120.

Code snippet
AD = C + I + G = $774 + $100 + G = $1120
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Code snippet
T = $1120 - $774 - $100 = $246
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Therefore, the level of taxes needed to achieve an income of $1120 is $246.

I hope this helps! Let me know if you have any other questions.
Answer 2

it's not possible to achieve an income of $1120 while keeping government purchases at $100 and taxes at $100.

In the Keynesian cross model, the consumption function is given by C = $170 + 0.7(Y-T).

The planned investment is $100, and government purchases and taxes are both $100.

Here are the calculations to find the level of government purchases needed to achieve an income of $1120:

Y = C + I + G + (X-M)Y = $170 + 0.7(Y - $100) + $100 + G + ($0 - $0)Y = $170 + 0.7Y - $70 + $100 + GY = $200 + 0.7G

We want to find the level of G that results in Y = $1120.

So, we can set up the equation:

Y = $1120$1120 = $200 + 0.7G$920 = 0.7GG = $920/0.7G = $1314.29

Thus, the level of government purchases needed to achieve an income of $1120 is $1314.29.

Here are the calculations to find the level of taxes needed to achieve an income of $1120:

Y = C + I + G + (X-M)Y = $170 + 0.7(Y - T) + $100 + $100 + ($0 - $0)Y = $270 + 0.7(Y - T)

We want to find the level of T that results in Y = $1120. So, we can set up the equation:

Y = $1120$1120 = $270 + 0.7(Y - T)$850 = 0.7(Y - T)Y - T = $1214.29T = Y - $1214.29T

= $1120 - $1214.29T

= -$94.29

The level of taxes needed to achieve an income of $1120 is negative, which doesn't make sense.

Therefore, it's not possible to achieve an income of $1120 while keeping government purchases at $100 and taxes at $100.

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Related Questions

Which of the following statments about government regulation of business is true?

A. Small businesses often feel the burden of regulations more than large corporations

B. It is easy for large corporations to comply with most government regulations

C. It is easy for small businesses to comply with most government regulations

D. Large corporations often feel the burden of regulations more than small businesses ​

Answers

Answer:

small business often feel the burden of regulations more than large corporations

Explanation:

Since they have less money to spend on things like building permits and licensing fees, small business owners may find it more difficult as a result of federal rules, which can also lead to lost productivity and fewer starting businesses.

Thus, Option A is correct.

What are a few unfavorable consequences of government regulations?

Ineffective laws may waste scarce resources, hinder innovation, growth, and job creation, undermine sustainable development, unintentionally injure the individuals they are meant to protect, and degrade public trust in our government.

Inefficiency and additional costs are encountered. Government regulation has a number of benefits, but there are also some drawbacks. Businesses typically incur more costs as a result of government regulation, which results in some operational inefficiencies.

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What is the difference between your marginal and effective tax rates?

Answers

The two tax rates differ in the following ways: The margin is the amount you must pay on your subsequent dollar of income.

How does the effective tax rate differ?

Actual tax rate: This represents the average tax rate for a taxpayer, or the percentage of their annual income that must be allocated to paying taxes. The amount of tax that is levied on each successive level of income is known as the marginal tax rate.

How are the effective tax rate and marginal tax rate determined?

A marginal tax rate is the top tax bracket that an individual or corporation is subjected to depending on the highest income band that their earnings are classified under. By subtracting the actual income tax expense from the actual net income of the business, an effective tax rate is determined.

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to encourage purchases of additional products, manufacturers provide ______________ coupons.

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Manufacturers provide promotional coupons to encourage purchases of additional products.

Manufacturers use promotional coupons as a marketing strategy to incentivize customers to purchase more of their products. These coupons offer discounts or special offers on related or complementary products that can be redeemed at the point of purchase. The goal is to drive customer loyalty and increase the overall sales of the brand. By offering these coupons, manufacturers are able to promote new or lesser-known products while also increasing the value proposition of their existing products. Overall, promotional coupons are a cost-effective way for manufacturers to encourage customers to try new products and increase sales.

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Select the correct answer from each drop-down menu.
Which type of flowchart scheduling technique has a fixed duration of production activities? In which type of flowchart are they probabilistic?
The
type of flow chart has a fixed duration for production activities. The
type has a probabilistic duration for production activities.

Answers

Whereas the random (or probabilistic) form of flowchart scheduling approach has a probabilistic length for production activities, the deterministic type has a definite time for product activities.

How do you define a product?

Definition: The object being sold is referred to as a product. Goods can be either services or things. It might show up physically, virtually, or online. Every product has a cost associated with it, as well as a price. The price that can be charged is influenced by the market, the quality, the promotion, and the target audience.

Why is by-product important?

By-product definition in English. anything that results from the creation of another item, or something unanticipated that occurs as a result of another thing.

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I want to sell homework answers but I need to contact people without people finding out I did

Answers

Answer:

sell?

Explanation:

On June 1, a company collected an $18,000 advance payment from a customer. The company will earn the payment over 12 months. What amount should the company report as a current liability at the end of the current calendar year

Answers

An amount of $18,000 will be recorded as a current liability at the end of the current calendar year.

What is an advance payment?

This means a payment type that is made ahead of its normal schedule such as paying for a good or service before you actually receive it.

An advance payment will be recorded as repayment under the current liability in balance sheet.

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An investment company where workers follow a strict schedule is an example of a(n) _____. a. informal workplace b. unstructured workplace c. casual workplace d. formal workplace

Answers

Answer:

d. formal workplace

Explanation:

A formal workplace has a structured way of doing things. Both the management and employees dress in the prescribed attire. There is a lot of emphasis on rules and procedures in the work processes. Information and work instruction follow established communication channels within the business. Hierarchy and protocols are observed when making official reports.

Answer:

D)

Explanation:

Both excess supply and excess demand are a result of​

Answers

Answer:

Disequilibrium.

Explanation:

Both excess supply and excess demand are a result of​ disequilibrium.

Answer:a

Explanation:

Someone you look up to? And why?

Someone you look up to? And why?

Answers

Answer:

I look up to elon musk. I feel like he's going to do the impossible and excited to what he will do next!

Answer: Oprah Winfrey

Explanation: She's inspiring and makes me wanna do good things in life

Assuming that the change in daily closing prices for stocks on the New York Stock Exchange is a random variable that is normally distributed with a mean of $.35 and a standard deviation of $.33. Based on this information, what is the probability that a randomly selected stock will close up $.75 or more?

Answers

The probability that a randomly selected stock will close up $0.75 or more is 0.1115.

The given data in the question is as follows:

Mean,

µ = $0.35

Standard Deviation,

σ = $0.33

We need to find the probability that a randomly selected stock will close up $0.75 or more.

So, we have to calculate the Z-score to determine the probability. Z-score is given by:

z = (x - µ) / σz = (0.75 - 0.35) / 0.33z = 1.21

The probability that a randomly selected stock will close up $0.75 or more is calculated using the standard normal distribution table.

We can obtain the standard normal distribution table by referring to any standard normal distribution book.

Using the table, we can see that the probability for a Z-score of 1.21 is 0.1115.

So, the probability that a randomly selected stock will close up $0.75 or more is 0.1115.

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l-----------------------------------------------------------

Answers

Answer:

ja. what do you want to ask?

Answer:

Am sorry but there is no question please

Given the following information, what are the NZD/SGD currency against currency bid-ask quotations? (You are required to compute two sets of cross-rate bid and ask quotes. 1. "New Zeland dollar" means the cross rate of NZD/SGD. 2. "Singapore dollar" means SGD/NZD. Do not round intermediate calculations. Round your answers to 4 decimal places. ) American Terms Bid Ask Bank Quotations New Zealand dollar Singapore dollar European Teres Bid Ask 1. 3772 1. 3786 1. 6311 1. 6324 7277 -7284. 6144 6149 New Zealand dollar Singapore dollar Bid Ask

Answers

The bid-ask quotations for the NZD/SGD currency pair are as follows: New Zealand dollar (NZD) against Singapore dollar (SGD): Bid: 1.3772, Ask: 1.3786

Singapore dollar (SGD) against New Zealand dollar (NZD):

Bid: 0.7277

Ask: 0.7284

To calculate the bid-ask quotations for the NZD/SGD currency pair, we need to consider the cross rates between the New Zealand dollar (NZD), Singapore dollar (SGD), and the American Terms and European Terms bid-ask quotations.

For the NZD/SGD bid-ask quotations:

The bid quotation is obtained by dividing the European Terms bid (1.6311) by the American Terms ask (1.3786), which gives us 1.3772.

The ask quotation is obtained by dividing the European Terms ask (1.6324) by the American Terms bid (1.3772), which gives us 1.3786.

For the SGD/NZD bid-ask quotations:

The bid quotation is obtained by dividing 1 by the NZD/SGD ask quotation (1.3786), which gives us 0.7277.

The ask quotation is obtained by dividing 1 by the NZD/SGD bid quotation (1.3772), which gives us 0.7284.

Therefore, the bid-ask quotations for the NZD/SGD currency pair are as follows:

New Zealand dollar against Singapore dollar:

Bid: 1.3772

Ask: 1.3786

Singapore dollar against New Zealand dollar:

Bid: 0.7277

Ask: 0.7284

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"21. Production Allocation A company will manufacture a total of 10,000 units of its product at plants A and B. Available data are as follows: Between the two plants, the company has decided to allot no more than $115,000 for total costs. What is the minimum number of units that must be produced at plant A ?

Answers

The minimum number of units that must be produced at plant A to meet the given constraints is 5,000 units.

How can we determine the minimum number of units that must be produced at plant A?

To find the minimum number of units at plant A, we need to consider the total cost allocation. Let's assume x units are produced at plant A. Since the company has decided to allocate no more than $115,000 for total costs, we can set up the following equation:

\( \text{Cost at Plant A} + \text{Cost at Plant B} = \text{Total Cost Allocation} \)

Let's assume the cost per unit at plant A is \( c_A \) and at plant B is \( c_B \). The cost at plant A would then be \( x \times c_A \), and the cost at plant B would be \( (10,000 - x) \times c_B \).

\( x \times c_A + (10,000 - x) \times c_B \leq 115,000 \)

Now, we can solve this equation to find the minimum value of x.

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A 15 kg runaway grocery cart runs into a spring with spring constant 270 N/m and compresses it by 64 cm.
What was the speed of the cart just before it hit the spring?
Express your answer to two significant figures and include the appropriate units.

Answers

To solve for initial speed of cart before it hits spring, we can use conservation of mechanical energy equation, The speed of the cart just before it hit the spring was 2.4 m/s.

The initial mechanical energy is the kinetic energy of the cart, given by: \(KE = (1/2)mv^2\), where m is the mass of the cart and v is its initial speed. The final mechanical energy is the potential energy stored in the spring, given by: \(PE = (1/2)kx^2\)

where k is the spring constant and x is the compression of the spring. Equating the two equations, we have: \((1/2)mv^2 = (1/2)kx^2\)

Solving for v, we have: \(v = sqrt((kx^2)/m)\) Plugging in the given values, we get: \(v = sqrt((270 N/m)(0.64 m)^2 / 15 kg)\) = 2.4 m/s Therefore, the speed of the cart just before it hit the spring was 2.4 m/s.

This calculation assumes that there is no loss of mechanical energy due to friction or other factors. In reality, some energy may be lost to these factors, resulting in a slightly lower speed.

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Recently when Mosaic Ltd was falling short of funds to meet the floatation costs of its upcoming issue of preference shares, the company raised deposits from Rosaic Ltd. Which had surplus funds. In the context of the above case: Identify and explain the source of finance being discussed above

Answers

Answer:

The floatation cost may be defined as the cost that is incurred or earned by any organization or a firm whenever they issue new stocks in the market. Here in the context, Mosaic Ltd is having shortage of money to incur the cost of the upcoming preference shares that they will issue. So they had raised deposits from another firm, Rosaic Ltd which had a surplus amount of fund. The money raised by Mosaic is a kind of security bond or transfer of money to another party for the safe keeping. The other firm i.e Mosaic Ltd. will return the money to Rosaic Ltd. later.

his lesson starts on time (change into negative)​

Answers

Answer:

His lesson started late

Explanation:

it’s changes intopositive

Summer, a nulliparous woman, is in the transition stage of the first stage of labor and is nearing the second stage. she and her coach (father of the baby) have been working together effectively for most of the labor, but summer lost control during transition. summer says she is exhausted and cannot imagine how she will be able to go on and to push. what criteria should be used to determine if summer has progressed to the second stage of labor

Answers

The criteria to determine if Summer has progressed to the second stage of labor are cervical dilation of 10 centimeters, complete effacement of the cervix, and fetal descent into the birth canal.

The criteria used to determine if Summer has progressed to the second stage of labor are cervical dilation and fetal descent. In the first stage of labor, the cervix gradually opens to a diameter of 10 centimeters. In the transition stage, the cervix dilates from 8 to 10 centimeters. The second stage of labor begins when the cervix is fully dilated and the baby starts to descend through the birth canal. This can be confirmed by a vaginal exam to assess cervical dilation and by monitoring fetal descent through the use of fetal monitoring.

Other signs that may indicate the onset of the second stage include the urge to push, increased rectal pressure, and a feeling of fullness in the pelvis. It is important for Summer's healthcare provider to monitor her closely to determine when she has progressed to the second stage of labor, as this is a critical time for both mother and baby.

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q1
q2
q3
Selected accounts of Friendly Kat Company are shown below as of June 30, 2022 before any adjusting entries have been made for the month of June. Friendly Kat Company prepares adjusting entries on a mo

Answers

The purpose of making adjusting entries is to ensure that the accounts are accurate and up-to-date and the company's financial statements are correct.

In accounting, adjusting entries are accounting entries recorded at the end of an accounting period to adjust the accounts' balances. These entries are made to ensure that the financial statements accurately represent the business's financial position, results of operations, and cash flows.Selected accounts of Friendly Kat Company are shown below as of June 30, 2022, before any adjusting entries have been made for the month of June:

Accounts Payable - $15,000Accounts Receivable - $18,000Cash - $25,000Rent Expense - $6,000Prepaid Rent - $4,000Wages Expense - $8,000Salaries Payable - $10,000The above information is essential in making adjusting entries. In the given accounts, accounts payable, accounts receivable, and cash accounts are balance sheet accounts. Balance sheet accounts' adjusting entries do not involve income statements.

Preparing adjusting entries is necessary because the initial recordation of some transactions is not possible in an accounting period. These adjusting entries help in avoiding misstatements in the financial statements and help ensure that the financial statements are fairly presented to stakeholders.

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joker stock has a sustainable growth rate of 8 percent, roe of 18 percent, and dividends per share of $3.35. if the p/e ratio is 18.7, what is the value of a share of stock?

Answers

The value of a share of Joker's stock is $70.89.

To find the value of a share of Joker stock, follow these steps:

1. Calculate the earnings per share (EPS) using the sustainable growth rate (g) and return on equity (ROE):

g = (ROE * Retention ratio).

First, we need to find the retention ratio, which is the proportion of earnings retained in the company rather than paid as dividends.

2. Retention ratio = 1 - (Dividend payout ratio), where the dividend payout ratio = (Dividends per share / EPS). To find EPS, we can rearrange the sustainable growth rate formula:

g = (ROE * Retention ratio) => EPS = (g / ROE) + Dividends per share.

3. Substitute the given values into the formula:

EPS = (0.08 / 0.18) + $3.35.

Calculate the result:

EPS ≈ $0.44 + $3.35 ≈ $3.79.

4. Calculate the value of a share of stock by multiplying the EPS by the P/E ratio:

Value per share = EPS * P/E ratio.

5. Substitute the given P/E ratio and calculated EPS into the formula:

Value per share = $3.79 * 18.7.

Calculate the result:

Value per share ≈ $70.89.

So, the value of a share of Joker stock is approximately $70.89.

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other things constant, how will an increase in the wages of teenagers affect the market for fast food hamburgers?

Answers

With all else remaining constant, a rise in teens' income will have an impact on the market for fast food hamburgers by increasing the supply and lowering the cost of hamburgers.

How does the pricing change when the supply increases?

While all other factors remain constant, an increase in supply will cause the equilibrium price to fall while increasing the amount required. Due to a decrease in supply, the amount sought will decrease, raising the equilibrium price.

When demand is constant, the connection between prices and supply for products and services is inverse. When the supply of those goods and services increases while the demand for those goods and services remains constant, prices frequently decline to a lower equilibrium price and a larger equilibrium quantity of those products and services.

When the cost is reduced, what happens to supply?

A price increase almost invariably leads to the delivery of more of that good or service, whereas a price decrease typically results in the delivery of less of it.

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Most people are very willing to help out others with job leads and advice, because at one point, someone helped them
with job leads and advice as well.

Answers

Answer:

Yes I agree with you!

Explanation:

which would an economist consider a likely substitute for coffee?a. waterb. donutsc. tead. chicken

Answers

The answer is option c. tea,  an economist  would consider tea as a likely substitute for coffee.

What does economic substitution look like?

In other words, if the price of one thing rises, so does the demand for the other. For instance, coffee can be used in place of tea, and solar energy can be used in place of electricity. Demand for tea also increases when the price of coffee does, and vice versa.

What do economists mean by "perfect substitutes"?

A perfect substitute is a good or service that, regardless of the business that provides it, customers view as being exactly the same no matter which business provides it. The business from whom a buyer purchases a good is irrelevant to them. Standardized goods are excellent replacements.

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Sly Bailey, the Trinity Mirror Chief Executive, sought to boost revenues of the Daily Mirror in 2004 by increasing the price of the tabloid newspaper by 3p, from 32p to 35p. The move is a sharp U-turn of the policy of Philip Graf, her predecessor, who tried to boost Daily Mirror circulation by cutting the cover price, triggering a price war with its rivals The Sun and the Daily Star. Ms. Bailey ended the price war as soon as she took over at Trinity Mirror in 2003. The Daily Mirror will now cost 5p more than the The Sun, which is owned by News International, parent company of the Times. It appears that The Sun has no immediate plans to increase its price. The Daily Mirror last increases its price in September 1999 but the tabloid newspaper market in the UK is fiercely competitive and it’s not clear what the effect on its circulation will be.


Question:


1. What price elasticity of demand issues are raised in this case study?

Answers

Price elasticity of demand is a measure of how responsive a change in consumption is to a specific change in a product's price. There will be less demand for the newspaper because its price increased.

How much a product's consumption alters in response to price changes is measured by price elasticity of demand. A good is perfectly elastic if its price elasticity is infinite (if demand changes substantially even with minimal price change). If price elasticity is greater than 1, the good is elastic; if it is less than 1, it is inelastic. If a good's price elasticity is zero, then no amount of price fluctuation will change demand for that good. A demand or supply curve that is inelastic will result in a lesser percentage change in quantity demanded or supplied for a given change in price.

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What type of speech does not receive First Amendment protections? Choose 3 answers. speech that incites lawlessness obscenity unpatriotic speech threats to the president of the United States

Answers

Speaking in a way that will soon result in illegal behaviour is not protected by the First Amendment. This type of discourse must be addressed to a particular individual or group. It must be a clear command to take quick, illegal action.  

What does First Amendment protect?

According to the First Amendment, Congress cannot enact laws that restrict the free exercise of religion or that regard religion as an establishment. It safeguards the rights to free expression, the press, assembly, and the filing of complaints with the government. Speech that encourages impending illegal activity is not protected by the First Amendment. A single individual or group must be the target audience for this type of discourse. It must be a clear command to take unrestrained, unlawful conduct right away. The speech must be anticipated to actually result in illegal behaviour.

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now you need to decide which approach to take to resolve the problem. once you choose an approach, you will use it to determine what to do next. stick with one model throughout. which leadership theory will you choose?

Answers

Leadership theories describe how and why particular people come to be leaders. They place emphasis on the personality characteristics and behaviors that people might adopt to develop their leadership abilities. Strong ethics and high moral standards are among the qualities that leaders cite as being essential to effective leadership.

The top characteristics leaders cite as necessary for effective leadership include:

Strong moral principles and ethics.Excellent organizational abilitiescompetent learnerencourages employee developmentencourages affiliation and connection

There are numerous views regarding how leadership functions, what qualities make for effective leaders, and how to be effective. Managers can use a variety of leadership philosophies, and their effects change depending on the group they are in charge of and the sector they work in.

These leadership ideas clarify how various leadership philosophies contribute to a company's success. Understanding these many leadership theories and how they affect your leadership and management style is crucial if you're training to be a corporate leader or manager.

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Which examples demonstrate common qualifications for Security and Protective Services careers? Check all that apply.

Brooke negotiates with the prison inmates she supervises.
Ami is comfortable working alone and making decisions in her work as a Private Detective.
Reed thinks of creative solutions for defending a client in court.
Vincenzo attends college for many years and earns a juris doctor degree.
Shameka watches for unusual activities and signs of danger as she guards a bank building.
Teddy is a Lifeguard who uses his strength to pull a person out of the water.

Answers

Answer:

2,5,6

Explanation:

Ami,shameka,teddy

Answer:

2,5,6

Explanation:

What are the retained earnings of beacon at the end of the year, and what amount of expenses were incurred during the year?

Answers

Retained earnings are $209,000 and expenses incurred totaled $1067,000. Retained earnings can be desthe amount of net profit the company remains after paying dividends to investors or other distributions.

Retained earnings may also be referred to as “undefined profit surplus” or “accumulated profit.” Retained earnings can be used to determine whether a business is truly profitable. Because this income is what is left after all obligations are met, final retained earnings are an indicator of the true value of a company. This remaining amount is retained by the company. If there is a surplus of retained earnings, the business can choose to use this money for purposes that will support its growth.

If the company has retained positive profits, this means it has a surplus of income that can be used to reinvest itself. Conversely, if profit is negative, it means that the company has built up a deficit and owes more money than the business earned.

Retained earning = Beginning retained earning - net income - dividend

Retained Earning =  ($346,000+$1,384,000) - $1,038,000 - $83,000 - $400,000

Retained earning = $209,000

Total Expenses = Net Revenue - Net Income

Total expenses =  $1,384,000+$83,000+$346,000-$400,000 = $1067,000

Beacon, Incorporated Reported The Following Amounts At The End Of The First Year Of Operations:

Common stock = $346,000

Sales revenue = $1,384,000

Total assets = $1,038,000

Dividends declared = $83,000

Total liabilities = $400,000

What are the retained earnings of beacon at the end of the year, and what amount of expenses were incurred during the year?

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If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?

Answers

Bonds acquired at premiums often have lower yields to maturity than bonds purchased at market rates. This is further explained below.

What is a bond?

Generally, Bonds are financial securities that reflect loans made to the issuer by the bondholders themselves. When it comes to borrowing money, governments (at all levels) and companies (of all sizes) often turn to bonds.

In conclusion, If you buy a bond at a discount, the yield to maturity will be lower than its coupon rate.

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The SmartArt icon will allow you to include which of the following on a slide?

Answers

I think the answer is Graphs, I hope this helps

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).

Cain Company reports net cash provided by operating activities of $35,000. It also reports the following

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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