Explanation:
Ethical business practices refer to the set of moral principles and values that guide business decisions and actions. When a business follows ethical practices, it ensures that decisions are made with integrity and fairness, and that the needs and interests of all stakeholders, including the public and community, are taken into consideration. By doing so, the business creates a positive reputation and builds trust with its stakeholders, which can lead to long-term success and sustainability.
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Oliveras Company had net credit sales during the year of $800,000 and cost of goods sold of $500,000. The balance in accounts receivable at the beginning of the year was $100,000, and the end of the year it was $150,000. What were the accounts receivable turnover and the average collection period in days? a. 6.4 and 57 days. b. 4.0 and 91.3 days. c. 5.3 and 68.9 days. d. 8.0 and 45.6 days.
Answer:
a. 6.4 and 57 days
Explanation:
The computation of the accounts receivable turnover and the average collection period in days is shown below;
The account receivable turnover is
= $800,000 ÷ ($100,000 + $150,000) ÷ 2
= 6.4 times
And, the average collection period is
= 365 days ÷ 6.4 times
= 57 days
Therefore the a option is correct
You can buy life insurance for anyone. True or false
Answer:
False
Explanation:
Answer: False
Explanation:
garfield owns and operate a retail shoe store. garfield contracts with wholesaler to buy 1,200 pairs of running shoes at $25 per pair. when the shoes arrive, the boxes are torn and there is battery acid on some of them. some but not all of the shoes are damaged. garfield and wholesaler reach an agreement by telephone. in exchange for a 15% discount, garfield agrees to accept the shoes as-is. garfield promptly pays the reduced amount. one week later, wholesaler changes his mind and sues garfield for the remaining 15%. who wins?
Garfield makes a wholesale purchase of 1,200 pairs of running shoes at a cost of $25 per pair, but the shoes arrive broken. Who wins the lawsuit is stated below.
Who is the winner here?Garfield prevails in this instance of broken shoes because the wholesaler initially agreed to exchange them but afterwards refused, breaking the terms of the agreement.
What exactly was the deal?An agreement is a sign of two or more people's consent to one another. It occurs through an offer and an acceptance and represents a coming together of the minds with a shared goal. Garfield decides to accept the shoes "as-is" in exchange for a 15% discount from the wholesaler after getting a few of the damaged shoes, and Garfield swiftly pays the discounted sum.
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Siiri invests 10 % in real estate, 40 % in mutual funds, 25 % in government bonds, and 25 % in stocks. what do Siri’s investment demonstrate?
Answer: Asset allocation
Explanation:
Asset allocation refers to the strategy of investing in different types of assets and investment vehicles so that the risks would be balanced by the rewards to be earned so that the investor will benefit.
Asset allocation is usually based on the investor's investment goals and their risk appetite. Those who are more risk tolerant will usually invest more in stocks so Siiri here is most likely risk averse but based on the percentage that went into stocks, they might be more risk neutral.
the monopsonist's markdown in the buying price increases as: group of answer choices the demand elasticity declines. the demand elasticity increases. the supply elasticity declines. the supply elasticity increases.
The monopsonist's markdown in the buying price increases as the demand elasticity increases among the given options.
A monopsonist is a single buyer in a market with multiple sellers. They have market power and can exert control over the price they pay for goods or services. The monopsonist's ability to negotiate lower buying prices depends on the elasticity of demand and supply in the market.
Demand elasticity measures the responsiveness of quantity demanded to changes in price. When demand is more elastic (responsive), a monopsonist faces a greater risk of losing customers or facing reduced sales if they increase the buying price. Therefore, to maintain their market share or increase demand, the monopsonist must offer a higher markdown in the buying price.
On the other hand, supply elasticity, which measures the responsiveness of quantity supplied to changes in price, does not directly affect the monopsonist's markdown in the buying price. The supply elasticity determines how easily suppliers can adjust their output to changes in price but does not impact the monopsonist's ability to negotiate lower prices.
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PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Every monetary decision we make involves a level of choice, usually of one thing over another. What is the name for this financial trade-off?
A. personal risks
B. inflation
C.opportunity cost
Answer:
C.opportunity cost
Explanation:
this is super easy
Answer:
C
Explanation:
Took the test :)
one joint of marijuana impairs a person more than having a blood alcohol content of _____ %.
One joint of marijuana impairs a person more than having a blood alcohol content of 0.1%.
What do you mean by blood alcohol content?A blood alcohol content (BAC) of 0.1% indicates that your blood contains 0.1% alcohol by volume. BAC is a measure of alcohol in the blood as a percentage. More harm can be done by one joint of marijuana than by 0.1% of alcohol.
Marijuana is a drug made from the marijuana plant. It can be used as a recreational drug and is a component of many medicines. It can speed up heartbeat, induce anxiety, and result in hallucinations.
Joint is a rolled cannabis cigarette
The most passionate debates over medicinal marijuana center not on its efficacy in treating patients' illnesses but rather on its potential for harm to both individuals and society as a whole.
This chapter first looks at the scientific evidence that users of marijuana suffer both bodily and psychological harm. Then it takes into account any possible social repercussions of approving marijuana use for medical purposes.
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please type what belongs in the highlighted squares
ill give brainliest
To get the total revenue for the fourth quarter add the revenue for the month that apply
October revenue + $500 000
November revenue + $425 000
December revenue + \(\\)860 000
the sum total is = 1,011,000
therefore the fourth quarter revenue is $1,011,000
To calculate EBITDA subtract the expenses from the revenue
Revenue $6500 000
Expenses - $5375 000
EBITDA = 1, 125, 000
therefore the EBITDA is $1, 125, 000
To calculate Total Market Capitalization, multiply the number of share by the price per share we divide the
Number of shares \(\\)2500 000
price per share x \(\\) 23 77
= $5,942500, 000
therefore the Total Market Capitalization is $5,942500, 000
To calculate the earning per share divide the earning by the number of shares
Earning $5000 000 / Number of shares $2500 000 = 2
therefore the earning per share is 2
What is EBITDA?The abbreviation. EBITDA for stands for earnings before interest, taxes, depreciation, and amortization in business. EBITDA is very vital in understanding a business's ability to generate cash flow for its owners and use for judging a company's operating performance.
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Hockley Brewing has produced a new craft lager beer that will be branded Hockley Classic Lager. The market for craft beer is about $20 million retail per year and the average retail price across all craft beer producers is $2. 50. The following information applies to Hockley’s new craft lager beer.
Factory production costs $1. 05 / can (Variable Cost)
Beer ingredients $0. 35 / can (Variable Cost)
Packaging $0. 20 / can (Variable Cost)
Advertising and promotion $60,000 (Fixed Cost)
Channel listing fees $30,000 (Fixed Cost)
Hockley’s wholesale price to retailers $2. 40 / can (Variable Cost)
(Hockley’s) manufacturer’s suggested retail price $2. 55 / can (Variable Cost)
a. What is Hockley’s unit contribution (measured in $ per can) and contribution margin (measured in percentage)?
b. What is the break-even point in cans? in dollars?
c. What is the necessary sales volume in cans to achieve a $150,000 (target) profit?
d. What will Hockley’s net profit be if 100,000 cans of the new lager are sold?
e. What will Hockley’s market share of craft beer be if they sell 100,000 cans?
f. Their largest competitor is Mill Street Brewery whose Original Organic Lager has 2. 5% market share of the craft beer market. Given Hockley’s market share calculated in part (e), what will Hockley’s relative market share (RMS) be for their Classic Lager?
g. The craft beer market is growing at 10% annually, higher than any other type of beer. With the RMS for Hockley Classic Lager calculated in part
(f), at the end of their first year, where in Hockley’s portfolio will Classic Lager be positioned and what recommendation would follow?
h. Calculate the price elasticity of demand if they raise the MSRP from $2. 55 to $2. 75 and demand falls from 100,000 cans to 95,000 cans. Is demand for this product price elastic or inelastic?
Hockley's unit contribution is $0.50 per can with a contribution margin of 19.6%. The break-even point is 180,000 cans or $432,000, and a sales volume of 480,000 cans is needed to achieve a target profit of $150,000.
a. Hockley's unit contribution is $0.50 per can ($2.55 - $2.05), and the contribution margin is 19.6% (($0.50 / $2.55) x 100).
b. The break-even point in cans can be calculated by dividing the total fixed costs ($60,000 + $30,000) by the contribution per can ($0.50). The break-even point is 180,000 cans. In dollars, the break-even point is $432,000 (180,000 cans x $2.40).
c. To achieve a target profit of $150,000, we need to calculate the necessary sales volume in cans. The formula is (Total Fixed Costs + Target Profit) / Contribution per can. Using the given numbers, the necessary sales volume is 480,000 cans.
d. If 100,000 cans of the new lager are sold, the net profit can be calculated as (Unit contribution x Sales volume) - Total Fixed Costs. With the given numbers, the net profit would be $10,000.
e. If Hockley sells 100,000 cans, their market share of craft beer can be calculated as (Sales volume / Total market size) x 100%. With a $20 million market size, their market share would be 0.5%.
f. Hockley's relative market share (RMS) for their Classic Lager can be calculated by dividing their market share by Mill Street Brewery's market share and multiplying by 100. With Hockley's market share of 0.5% and Mill Street Brewery's market share of 2.5%, Hockley's RMS would be 20%.
g. With an RMS of 20% for their Classic Lager, Hockley would be positioned as a significant player in the craft beer market. The recommendation would be to continue investing in and promoting the Classic Lager to further increase its market share.
h. The price elasticity of demand can be calculated using the formula: Percentage change in quantity demanded / Percentage change in price. In this case, the percentage change in quantity demanded is ((100,000 - 95,000) / 100,000) x 100% = 5%, and the percentage change in price is (($2.75 - $2.55) / $2.55) x 100% = 7.8%. Therefore, the price elasticity of demand is 0.64 (5% / 7.8%). With a price elasticity of less than 1, demand for this product is price inelastic, meaning that a price increase led to a proportionally smaller decrease in quantity demanded.
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A macro policy mix that consists of an expansionary fiscal policy and a contractionary monetary policy is predicted to:
The combination of an expansionary fiscal policy and a contractionary monetary policy is known as the macro policy mix.
This policy mix can lead to a range of results, depending on the context in which it is employed.In general, an expansionary fiscal policy, such as tax reductions and higher government spending, tends to increase demand and boost economic activity. On the other hand, a contractionary monetary policy, such as increasing interest rates and reducing money supply, tends to reduce demand and slow down economic activity. As a result, the combination of the two policies can result in a trade-off between short-term and long-term goals.For instance, if the economy is experiencing a recession or slow growth, an expansionary fiscal policy may be necessary to stimulate demand and create jobs. However, if inflationary pressures are present, a contractionary monetary policy may be required to reduce demand and stabilize prices. In this context, the macro policy mix can be useful in balancing the short-term goals of economic growth and job creation with the long-term goal of price stability.
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1. The nominal rate on Sarah’s loan is 7. 250%. If the interest is compounded monthly, what rate of interest is Sarah paying?.
Sarah is paying an interest rate of 7.250% on her loan, compounded monthly.
To determine the rate of interest Sarah is paying, we need to convert the nominal rate to the effective interest rate, taking into account the compounding frequency. Since the interest is compounded monthly, we divide the nominal rate by 12 (the number of months in a year) to get the monthly interest rate.
Dividing 7.250% by 12, we find that Sarah is paying an interest rate of approximately 0.6042% per month. This represents the rate at which the loan balance grows each month due to the accumulated interest.
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Which nims management characteristic includes developing and issuing.
Answer:
Management by objective include developing and issuing
what helps an organization identify its customers across applications? group of answer choices crm analyzing technologies crm processing technologies crm predicting technologies crm reporting technologies
CRM (Customer Relationship Management) analyzing technologies help an organization identify its customers across applications.
To identify its customers across applications, an organization can use CRM (Customer Relationship Management) technologies. These technologies can include analyzing, processing, predicting, and reporting tools that gather data from various sources and provide insights into customer behavior and preferences. By using these technologies, an organization can predict and anticipate customer needs, better target its marketing efforts, and provide personalized customer experiences across multiple applications.
These technologies collect, store, and analyze customer data, enabling the organization to better understand their customers and deliver targeted products or services.
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anyone can do this?
I love your profile pic ( ༎ຶŎ༎ຶ )
Answer:
Her car
Explanation:
She would have to give up the title of her car because she is borrowing money from a title pawn lender. She'd borrow up to 100-5,000, then she's have to give up her title to her car.
if the required reserve ratio
Answer:
4
Explanation:
Formula: 1 / Reserve money ratio -> 1 / 0.25 = 4
which of the following statements is not correct concerning the elements of the cash conversion cycle time? multiple choice the cash conversion cycle is based on accounts receivable, accounts payable, and inventory. lean manufacturers try to reduce the total cash conversion cycle time. the higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash. effectively managing working capital is important for businesses to survive and profit. the cash conversion cycle measures the average time it takes to convert cash outflows into cash inflows.
The correct statement is " the higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash".
The cash conversion cycle (CCC) is one statistic among many that managers use to evaluate how well they utilise working capital. Working capital refers to the funds utilized for daily activities. This metric gauges how quickly a business turns money used for operations into cash.
In order to build inventory, sell things, and collect money from customers, the cash conversion cycle uses average timings. In general, the shorter this period, the better for the business.
Accounts receivable (AR), accounts payable (AP), and outstanding inventory and sales are combined into the cash conversion cycle (AP). Unsold inventory is classified as outstanding inventory, whereas accounts receivable and accounts payable are terms for accounts that the business must make payments on.
You must gather data from the company's financial accounts in order to calculate cash conversion cycle:
Over time, the average inventoryCost of sales or cost of products soldBalance of receivablesannual incomeAccounts Payable is closedYou can use this data to determine the number of days that your inventory, sales, and payables are still unpaid.
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Which command is used to draw visible line form invisible line mode *
in microsoft window logo
PD
PU
PE
None of these
In Microsoft window logo, the command which is used to draw visible line that forms an invisible line mode is: A. PD.
Microsoft window logo is a programming language that was designed and developed at the Massachusetts Institute of Technology (MIT) by George Mills, based on the educational programming language called Logo.
Some of the commands that are used on Microsoft window logo include the following:
FORWARD (fd)BACK (bk)HOMERIGHT (rt)Pendup (PU)Pendown (PD)In Microsoft window logo, the Pendown (PD) command is used to instruct the turtle to draw a visible line or leave ink (tracks) on the screen as it moves. Thus, it is a command which is used to draw visible line while forming an invisible line mode.
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________ play an important role in efficiently making products available to target markets in the needed varieties and quantities.
Answer:
Intermediaries
Explanation:
Intermediaries are individuals or organisations whose main function is to ensure that goods are moved smoothly through the various channels of distribution. They act as a link between the manufacturers and the consumers.
Intermediaries acts as a middleman, they provide feedbacks to the manufacturers on the customer's assessment of the product. They also help in the promotion of goods by employing different advertising strategies inorder to showcase the product to the potential customers.
Hence intermediaries play a crucial role in efficiently making products available to target markets in the required varieties and quantities.
Drag each label to the correct location
PLEASE HELP
Answer:
put master budget for sources of cash and put cash budget for cost of finished goods
the idea that a denim manufacturer in the united states can export its products to china while at the same time a chinese manufacturer in the denim market can export to the united states because each of the product lines has unique qualities demonstrates the idea of product'
The idea that a denim manufacturer in the United States can export its products to China while a Chinese manufacturer in the denim market can export to the United States due to the unique qualities of their product lines demonstrates the concept of product differentiation.
Product differentiation refers to the process of distinguishing a company's products or services from those of its competitors by emphasizing unique features or qualities. In the context of the denim market, both the U.S. manufacturer and the Chinese manufacturer have differentiated their product lines in a way that appeals to consumers in their respective markets.
The U.S. manufacturer's denim products likely possess certain qualities, such as specific designs, branding, or materials, that make them desirable to Chinese consumers. Similarly, the Chinese manufacturer has differentiated their denim products in a manner that attracts U.S. consumers. These unique qualities allow both manufacturers to export their products to foreign markets without direct competition, as each product line offers distinct value and appeal.
Product differentiation enables companies to compete based on factors other than price alone. By highlighting unique features, companies can capture market share and establish a competitive advantage. In the case of the denim manufacturers, their ability to export to foreign markets demonstrates the success of their product differentiation strategies, which enable them to cater to the specific preferences and demands of consumers in different regions.
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The Morgan family lives in Massachusetts. They moor their sailboat in Rhode Island. What might lie a plausible reason for the possible inconvenience?
The tax base is defined as anything on which the taxable amount is calculated such as the tax base of a house. For example, the property tax base of a house is its value. At present, following are the major types of taxes imposed in a country:
1. Property Taxes: These taxes are also known as ad valorem taxes because they are based on value of the tax base.
2. Transactions Taxes: These taxes are imposed on wholesalers and retailers wide range of transfers. For example, income tax, excise tax and estate tax.
3. Employment Taxes: These taxes include Federal Unemployment tax and Federal Insurance contribution act imposed to provide social security among the citizens of the country.
One possible reason for the inconvenience of the Morgan family mooring their sailboat in Rhode Island despite living in Massachusetts could be related to employment taxes.
If the Morgan family owns a business or is self-employed in Massachusetts, they would be subject to employment taxes such as the Federal Unemployment tax and Federal Insurance Contribution Act (FICA) taxes. These taxes are imposed to provide social security benefits and unemployment insurance to citizens of the country.
If the Morgan family moors their sailboat in Massachusetts, they may be subject to additional employment taxes in that state, whereas if they moor their boat in Rhode Island, they may avoid those taxes altogether. This could be a possible reason for the inconvenience of having to travel to Rhode Island to use their sailboat.
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Schwartz Industry is an industrial company with 80. 1 milion shares outstanding and a market capitalization (equity value) of $3 27 billion. It has $2. 35 bilion of debt outstanding Management have decided to delever the firm by issuing new equity to repay all outstanding debt a. How many new shares must the firm issue? b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market describe what you can do to undo the effect of this decision The firm must issue a. How many new shares must the firm isso? million shares. (Round to one decimal place) b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this You should__new shares and___ $ (Select from the drop-down menus, round the number of shares to the nearest integer, and round the dollar amount to the decision nearest dollar)
a. The firm must issue 57.6 million new shares to deliver the firm.
b. If you disagree with this decision, you can either hold on to your shares or sell them in the market.
a. To deliver the firm, the total equity value after issuing new equity must equal the current total enterprise value (equity value + debt). Therefore, the new equity issued must be equal to the amount of debt outstanding.
New equity = Outstanding debt = $2.35 billion
To find the number of new shares to be issued, we need to divide the new equity by the current share price:
Number of new shares = New equity / Current share price
To find the current share price, we can divide the current market capitalization by the number of outstanding shares:
Current share price = Market capitalization / Number of outstanding shares
Current share price = $3270 million / 80.1 million = $40.82 per share
Number of new shares = $2.35 billion / $40.82 per share = 57.6 million shares
Therefore, the firm must issue 57.6 million new shares to delever the firm.
b. In a perfect capital market, the issuance of new equity to repay debt should have no effect on the value of the firm. Therefore, as a shareholder, you can do nothing to undo the effect of this decision. The value of your shares will remain the same, as the total value of the firm remains unchanged. If you disagree with this decision, you can either hold on to your shares or sell them in the market.
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Regulatory takings cases indicate that: (A) the destruction of property value must be almost complete for compensation to be due (B) the destruction of property value need not be extensive for compensation to be due (C) the destruction of property value need not be more than 50% for compensation to be due (D) the destruction of property value is irrelevant (E) none of the other choices are correct
Regulatory takings cases indicate that the destruction of property value does not need to be extensive for compensation to be due.
What is a regulatory taking? A regulatory taking happens when the government issues a regulation that deprives a property owner of all economic gain from their property. Regulatory takings can happen in many ways, like zoning laws that prevent a landowner from developing their land, environmental regulations that prohibit the use of a landowner's property, or other types of regulations that interfere with the owner's use of their property.What are regulatory takings cases?The Supreme Court has heard many cases concerning regulatory takings, and these cases have generally focused on how to determine whether a particular regulation constitutes a taking. The Court has set forth several tests to determine whether a regulatory taking has occurred, including the "substantially advances" test, the "economic impact" test, and the "character of the government action" test.
How do regulatory takings cases indicate that the destruction of property value need not be extensive for compensation to be due? Regulatory takings cases generally establish that the destruction of property value need not be extensive for compensation to be due. In other words, if a government regulation has a significant negative impact on the value of a property, the government may be required to compensate the owner for that loss. The amount of compensation will depend on the specific facts of each case, but the government is generally required to provide "just compensation" for any loss that results from a regulatory taking. In summary, regulatory takings cases indicate that the destruction of property value need not be extensive for compensation to be due.
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You just obtained a credit card. you immediately purchase a digital camera for $160. your credit limit is $4000. let’s assume that you make no payments and purchase nothing more and there are no other fees. the monthly interest rate is 1.42%. what is the growth factor of your credit card balance? a. 0.0142 b. 14.2 c. 1.0142 d. 1.42
The growth factor of your credit card balance is 1.0142. This is calculated by taking the monthly interest rate of 1.42% and adding it to 1, giving us a growth factor of 1.0142.
In this scenario, you have a credit limit of $4,000 and you have just purchased a digital camera for $160. Since you make no payments and purchase nothing more and there are no other fees, your balance will grow by the growth factor of 1.0142 each month.
To find the growth factor of a balance with an interest rate, you can use the formula:
Growth factor = 1 + (interest rate / 100)
In this case, the interest rate is 1.42%, so you can plug that into the formula:
Growth factor = 1 + (1.42 / 100)
Simplifying the fraction gives you:
Growth factor = 1 + 0.0142
Adding the two numbers together gives you the growth factor:
Growth factor = 1.0142
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Indirect costs are frequently called overhead costs. This statement is Multiple Choice true false
This statement is True. Indirect costs are commonly referred to as overhead costs.
Overhead costs are expenses that are not directly attributable to a specific product, service, or project. Instead, they are incurred to support overall operations or multiple activities within an organization.
Examples of overhead costs include rent, utilities, administrative salaries, insurance, and office supplies. These costs are essential for the functioning of the business but are not directly tied to the production process.
By grouping these costs as overhead, businesses can allocate and manage them collectively, separate from direct costs that can be directly attributed to specific outputs or activities.
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Bridgette wants to have $325,000 when she retires in a year. If she currently has $300,000 to put in a 1-year CD, which of these APRS and compounding periods will allow her to reach her goal?
A. An APR of 8.03% compounded quarterly
B. An APR of 8.11% compounded semiannually
C. An APR of 8.02% compounded monthly
D. An APR of 8.01% compounded daily
Answer:D
Explanation:
i just took quize lol
How many acres are in a description reading, "The NW¼ of the SE¼ and the S½ of the SW¼ of the NE¼ of Section 4"?
The main answer is that the description "The NW¼ of the SE¼ and the S½ of the SW¼ of the NE¼ of Section 4" does not provide enough information to determine the exact number of acres.
The description only specifies the fractional parts of various quarters within Section 4, but it does not specify the size of the section or the size of each quarter.
To determine the number of acres, we need to know the total area of Section 4 in acres. A section of land typically consists of 640 acres, but the exact size can vary depending on the jurisdiction or survey system being used. Once we know the total area of Section 4, we can calculate the number of acres based on the given fractional parts.
For example, if Section 4 is 640 acres, the NW¼ of the SE¼ would be (1/4) * (1/4) * 640 = 40 acres. The S½ of the SW¼ of the NE¼ would be (1/2) * (1/4) * (1/4) * 640 = 20 acres. However, without the information on the size of Section 4, we cannot accurately determine the total number of acres based on the given description.
In summary, the provided description only specifies fractional parts of various quarters within Section 4, and without the total area of Section 4, it is not possible to determine the exact number of acres.
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If the price of peanut butter for peanut butter and jelly sandwiches
increases, the supply for PB&J sandwiches will ?
I know the answer is decrease but can someone explain to me why it’s decrease instead of increase ?
Answer: decrease
Explanation:
It will decrease because when the price goes up it will make people not want to buy it because they used to be able to buy it for cheaper. For example if a soda was $1.99 and they then raised the price to $3.00 would you want to buy it as much? No, probably not unless you were truly thirsty but even still if someone raised the price and there was a cheaper option you would go with the cheaper option because it's the same thing but differently priced. People tend to buy things when they are cheaper or on sale rather than at their original price and that's why some stores use pricing to trick you. They say something is on sale but in reality it costs just the same as the original price or sometimes more than that. They do this to compete and to get money out of you.
Can someone tell me if it’s correct, and which one is wrong
Answer:
Yes,they are correct.
Explanation:
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).
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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