The shares exchange may be CPI calculated by means of dividing the alternate into index points by means of the sooner time period rate index expanded with the aid of 100. be aware that the alternate in index factors and the percentage alternate are unique measures of exchange and are normally one-of-a-kind.
Whilst the 12-month trade in Canada's consumer rate Index (CPI) remains the same as the remaining month, the CPI rose by means of zero.7% on a monthly basis. October 2022's inflation price of 6.nine% is nicely above the financial institution of Canada's goal variety of one% to three%, and it also outpaced the average hourly salary growth of five.6% over the last year.
To find the CPI in any yr, divide the fee of the market basket in 12 months t by way of the value of the identical marketplace basket within the base yr. The CPI in 1984 = $seventy five/$seventy five x a hundred = a hundred The CPI is just an index cost and it is listed to a hundred within the base 12 months, in this case, 1984. So charges have risen with the aid of 28% over that 20 yr duration.
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When writing a presentation for clients and customers, you should primarily focus on influencing which two of the following groups?
key decision makers
prospects for future business
When writing a presentation for clients and customers, you should primarily focus on influencing prospects for future business
Prospects for future business-Market prospects are the potential future performance of a company in a competitive market. In other words, a company's market prospects are its estimated ability to compete in a market.
A prospect is a person or organization who meets the seller's criteria for being a potential customer. In a nutshell, a prospect is a prospective customer. You'll create a list of criteria based on your company's customer profile to determine the type of person who best fits the product or service you're trying to sell.
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What are the disadvantages of a command economy ?.
There isn't enough to satisfy customer demand, no reason to put up extra effort People with various talents and responsibilities make comparable money.
Why do command economies fail ?Decisions are made by people who might not be aware of what is truly happening as a result of centralization. For instance, a lot of the created commodities were not used in the command economy of the Soviet Union. Consumer preferences cannot be accommodated in a command economy.Lack of competition, which can result in a lack of innovation, and inefficiency are disadvantages of command economies.Structures based on a command economy have advantages and disadvantages. The advantages of a command economy include low levels of inequality and unemployment as well as the shared goal of displacing profit as the main driver of production. Critics contend that command economies' inherent lack of competition limits innovation and prevents prices from stabilising at a level that is best for consumers.To learn more about command economy refer :
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with a present value of $115,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 7.3%, compounded quarterly? (round your answer to the nearest cent.)
The size of the withdrawals that can be made at the end of each quarter for the next 10 years is $17,780.01.
What is withdrawal?
A withdrawal entails taking money out of a trust, pension, savings plan, or bank account. In some circumstances, requirements must be satisfied in order to withdraw money without incurring fees, and fees for early withdrawal typically apply when a provision of an investment contract has been broken. A withdrawal can be made in cash or in-kind, and it can be spread out over a time period throughout either fixed or variable quantities or all at once. In contrast to an in-kind withdrawal, which merely entails grabbing ahold of assets without transforming them to cash, a cash withdrawal necessitates converting the assets of an account, plan, retirement, or trust into cash, typically through a sale.
The size of the withdrawals that can be made at the end of each quarter for the next 10 years is $17,780.01.
This can be calculated using the formula:
FV = PV(1+r/n)^nt
Where FV is the future value, PV is the present value, r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
In this case, FV=0 (because the withdrawals are equal to the present value), PV=115,000, r=7.3%, n=4 (quarterly compounding), and t=10.
Therefore, the size of the withdrawals is:
115,000 = PV(1+7.3/4)^(4*10)
Solving for PV, we get:
PV = 115,000/(1+7.3/4)^(4*10)
PV = $17,780.01
Therefore, the size of the withdrawals that can be made at the end of each quarter for the next 10 years is $17,780.01.
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According to Rachels, there is a close connection between our ability to control information about ourselves and our ability to create different kinds of relationships with different people
TRUE. According to Rachels, there is a close connection between our ability to control information about ourselves and our ability to create different kinds of relationships with different people
Speak to one another. No matter how well you know and love your partner, you cannot know what they are thinking. To prevent misunderstandings that could lead to resentment, rage, confusion, or hurt, we must communicate clearly.
Each person has different communication needs and communication styles, and relationships require two people. The best form of communication for a couple will depend on their dynamics. Practice and effort are needed to develop effective communication styles. There will never be a time when communication is flawless.
In order for your message to be received and understood by your partner, be clear when communicating with them. Make sure you comprehend everything your partner is saying.
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Your mentor suggests that you assume a ''power pose'' before a stressful job interview. Striking such a pose is an example of positive __________ behavior that helps some people perform better.
Striking a “power pose” is an example of positive kinesic behavior that helps some people perform better.
Holding a position of power produces a chemical process, causing our testosterone to increase and cortisol to decrease. These lead us to a confident and calm state that others can evidence.
Through body language, the interviewer can gather valuable information that is not expressible by words alone. It helps identify whether the candidate is self-assured, confident, focused, or motivated. It can also reveal whether the person is nervous, insecure, or bored.
Non-verbal communication is the communicative process by which signals are sent and received without the need for spoken words.
Besides body language (kinesics), touch (haptic) can reveal aspects of a person by how they approach others with a touch, as well as the distances a person chooses to maintain in front of others (proxemics).
Kinesics derives from the word “Kinesis”, meaning movement. It stands to the study of the body’s movements, specifically head movements, eye contact, hand gestures, and, more importantly, posture, as if they were verbal communications.
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risk to a bank that has outsourced its offsite backup media and record storage for many years to the same company and, because of familiarity, allows bank personnel to retrieve tapes without following formal procedures?
By establishing a statutory Fourth Amendment protection for bank records, the Right to Financial Privacy Act of 1978 safeguards the confidentiality of individual financial records.
Do banks have to maintain records?For a period of five years following the date the SAR was filed, a bank must keep a copy of any SAR that was submitted as well as the original or business record equivalent of any supporting evidence.
How long do banks maintain records about you?In order to confirm debit and credit activity, bank statements are crucial. They need to be stored in hard copy or digital form for a year. You will be able to read your bank's statements online for at least a year (the majority of banks maintain them for at least five years)!
Are records destroyed by banks?According to several requirements, financial records must: in such a way that the paper can't be put back together. Burned. Electronic data must be destroyed and erased.
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select the statement below that is true of long run aggregate supply curves. there is a positive relationship between price level and rgdp. there is no relationship between price level and rgdp. there is a variable quantity of rgdp. changes in price level affect output.
Real GDP will rise in reaction to a drop in the price level.
Explain about the relationship between the price level and RGDP?The real wealth effect is based on the premise that it costs less money to purchase goods and services when prices are lower. You feel wealthy and the value of the money you have increased. Therefore, real GDP will rise in reaction to a drop in the price level.
Therefore, real GDP will rise in reaction to a drop in the price level. Formally speaking, this means that households are more likely to make larger purchases of goods and services when their assets are worth more in terms of their purchasing power.
Customers get wealthy and have access to more goods and services than they did previously. Therefore, the wealth impact offers one explanation for the downward-sloping demand curve's reflection of the inverse link between price level and real GDP.
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a feasibility analysis is an assessment of a potential product or service idea rather than a potential business. question 59 options: true false
A feasibility analysis is an assessment of a potential product or service idea rather than a potential business. question 59 options: FALSE.
Potential Business Opportunity means a potential transaction or matter (and any such actual or potential business opportunity).
A potential market is a market that has not yet been entered and contains prospects but no buyers. As brands expand their offerings, they are able to attract and reach new demographics that are not their current customers. Oct 28, 2022
To ensure future customer loyalty, companies are continually expanding their products. You should aim to surprise and delight your future customers by expanding into For example, customers receive ongoing upgrades to their image processing software with new and useful features.
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Effective organizational design means that firms must have ________ that are consistent with their strategy.
A. designs and plans
B. organizational structures and designs
C. adopters and designs
D. adopters and plans
Effective organizational design means that firms must have A. designs and plans that are consistent with their strategy.
The Oxford Dictionary defines approach as: “A plan of action designed to gain a protracted-time period or average intention” “The art of planning and directing standard military operations and movements in a conflict or war”
A strategy refers to an business enterprise's lengthy-time period goals and the way it plans to reach them. In other phrases, it suggests the direction to achieve the defined vision. A tactic refers back to the specific actions taken to attain the set dreams in line with the strategy.
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Income-maintenance laws were enacted to provide employees and their families with income security in case of death, disability, unemployment, or retirement.
True
The services in Function 600 (Income Security) keep Americans safe and healthy.
Explain about the Income security?
Income security divided into six categories: housing support, nutrition assistance, unemployment compensation, general retirement and disability insurance, and federal employee retirement and disability (including military retirement).
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), school lunch, school breakfast, and other child nutrition programs, child care assistance, refugee support, and low-income home energy assistance are additional significant economic security programs.
In order to help guard employees and their families from financial loss in the event that the employee is incapacitated or passes away, as well as to promote future financial stability, the Board of Pensions distributes income security benefits.
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physical counts of inventory are never made with perpetual inventory systems. group startstrue or false
Physical counts of inventory are never made with perpetual inventory systems False.
The perpetual stock approach does now no longer try and hold counts of bodily merchandise. Perpetual stock structures are in evaluation to periodic stock structures, wherein reoccurring counts of merchandise are applied in record-keeping.
Perpetual structures provide businesses stock statistics that replace in actual time. Purchasing and making plans can rely upon the stock statistics to make selections concerning fabric purchases and paintings scheduling. The commercial enterprise isn't required to close down on the cease of every month to bodily matter the stock.
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When companies redefine their technology or competency in general terms, the goal is to de-ink the technology from the current specific products and Identify more general applications True or False
True, When companies redefine their technology or competency in general terms, the goal is to delink the technology from the current specific products and Identity more general applications.
What does the word "redefine" mean?
Reformulate. have to reassess their terms: to review or reexamine especially with a view to changing.
What is an illustration of redefinition?
If a task was to "create a new toothbrush," for example, a creative person may rephrase it as "discover a better technique to clean teeth." Then, by minimizing the notion of the stereotypical toothbrush, he or she could look for solutions. "Functional fixedness" is the reverse of redefinition.Learn more about redefining
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in B2B marketing, companies often communicate via specialized web portals. which of the following are among the advantages of using these portals?
streamlined procurement
reduced paperwork
simplified negotiations
Reduced paperwork is among the advantages of using these portals. Marketing to business buyers is done through a variety of strategies known as B2B marketing.
Its objective is to raise conversion rates, lead acceptance by sales, and lead quality. Learn essential B2B marketing tactics to support expansion with your current clients. An oil and gas producer is the target market strategies for the marketing and sales efforts of an industrial pump manufacturer. An office space buildout for a legal practise is being marketed and contracted for by a commercial construction company. rather than between businesses and consumers, the exchange of goods, services, or information between enterprises (B2C).
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What are the 6 important steps in setting business goals?.
Important steps in setting business goals are:
Business Goals Should Be Specific. Your Goals Should be Measurable. Set Attainable Goals for Your Business. Make Your Goals Relevant. Goals Should Be Time Sensitive. Write Goals Down in an Action Plan.What is business goals?A business aim is a destination, feat, or objective the corporation hopes to reach in the short- or long-term. Business objectives can be aspirational or motivating and can steer a company in the direction of a certain goal, like better customer service.
You can determine the path your firm should take by setting business goals. Writing your goals in an active, assertive manner is essential because it affects how you see them. Make sure your goals are SMART in order to make them achievable (specific, measurable, achievable, relevant and time-bound).
Setting goals is crucial to managing a successful organization. They can help you maintain a clear direction, inspire workers, and establish goals for your company to strive for.
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Designate the following as either from job order or process operations.
a. Custom orders - Job Order operations
b. Mass production -Process operations
Job Order activities include custom orders.
Process operations refer to mass production.
What is process operation?The continuous flow approach of mass production is known as process operations, sometimes known as process manufacturing or process production. In other words, this is a conveyor belt system that quickly and uniformly creates standardized, similar things.
Because the same step is repeated frequently and quickly in order to make similar goods, each of these stages is regarded as a component of a process production line.
To mass-create identical products, process procedures are frequently fully automated. To cut production costs, almost all major manufacturers—from pharmaceutical firms to oil refineries—use this method of production.
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suppose the economy produces real gdp of $60 billion when unemployment is at its natural rate. use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (lras) curve on the graph.
By using the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph, then, the vertical line will be placed on the graph intersecting at (50, 0).
What is a long-run aggregate supply curve?In economics, a long-run aggregate supply curve means the vertical line at the economy's natural rate of output. The natural rate of output means the level of output consistent with the economy's natural unemployment rate, that is, it is the level of real GDP that the economy gravitates toward in the long run.
Furthermore, the long-run aggregate supply curve is seen as vertical at the natural rate of output because the price level has no bearing on the economy's long-run level of real output. Hence, supposing the economy produces real gdp of $60 billion when unemployment is at its natural rate, hence, the vertical line will be placed on the graph intersecting at (50, 0).
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mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. in addition, he incurs a loss of $50,000 from an investment in a passive activity acquired three years ago.
Mike, an attorney, makes $200,000 from his legal business and $245,000 ($200,000 active revenue + $45,000 portfolio earnings) in interest and dividends during the year.
What exactly does your interest mean?The things you enjoy and the things you enjoy learning about make up your interests is intriguing. It keeps your interest and piques your curiosity when something is interesting: Nothing very intriguing was discussed.
How does the example of interest operate?A borrower can either earn or pay a specific amount of interest on a loan depending on the rate. An interest charge worth $6 ($100 X 0.06) would be incurred on a $100 loan with a nominal interest rate if 6%, for example. The interest rate remains constant even as the loan's size increases. The borrower would still make 6% payments even if the debt was raised to $1,000.
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You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for bodily injury. How much will the insurance company pay?.
The insurance company will pay $58,000.
Since you have a coverage of $75000 so the insurance company could cover $58000 out of it to compensate the injured person.
Insurance coverage- Insurance coverage is the amount of risk or liability that is covered by insurance services for an individual or entity. An insurer provides insurance coverage, such as auto insurance, life insurance, or more exotic forms, such as hole-in-one insurance, in the event of unforeseen events.
Most financial experts recommend four types of insurance: life, health, auto, and long-term disability.
The amount of risk, liability, or potential loss that insurance protects is referred to as insurance coverage. It assists individuals in recovering from financial losses caused by incidents such as car accidents, property damage, or unexpected health issues.
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Facing and resolving ethical dilemmas is challenging. However, ethical guidelines, combined with self-examination, can help you identify key issues and choose the correct ethical path. When presented with ethically ambiguous situations, which of the following questions can help you make good decisions? a. Is the action you are considering legal? b. Is the action you are considering cost-effective? c. Is the action you are considering plausibly deniable?
Facing and resolving ethical dilemma is challenging. When presented with ethically ambiguous situations, this question can help you make good decisions: Is the action you are considering legal? (A)
Ethical dilemma is a condition when a decison maker is stucked between 2 possible options and neither of which is absolutely acceptable from an ethical perspective.
To overcome the ethical dilemma faced, a decision maker could follow the following approach:
Refute the paradox (dilemma) Value theory approachFind alternative solutionsRefute the paradox or dilemma by elilminating the existence of dilemma based on the logical thinking. A decision maker must be carefully analyzed the situation and do some reevaluation to the dilemma present.
Value theory approach helps a decision maker to choose the alternative that offers the greater good and the lesser evil. A decision maker should make a comparation between each options and compare both their good and bad sides.
Find alternative solutions by reconsidering the problem. A decision maker could find a new and probably better solution if he looks the problem from different point of view. Option from third trusted or professional party could also help to broaden the point of view a decisoin maker has to the problem.
Based on the questions we have from the case, we could implement all the 3 theories in the option A.
By asking whether our action is considering legal, we are eliminating some dilemmas by making a border between the right and wrong actions from law point of view. This question at the same time implicates the Value Theory Approach by clearly evaluate the existence options' values. If we find that the options we have is considered as illegal, we could implement the third approach by finding other alternative solutions to address the problems we have.
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you manage the two folders listed below on your computer. c:\confidential d:\public reports the c:\ drive is formatted with ntfs, and the d:\ drive is formatted with fat32. on the c:\confidential folder, you edit the properties for the following two files and assign the deny read permission to the users group: reports.doc costs.doc you then take the following actions. you: move reports.doc from c:\confidential to a:\public reports. copy costs.doc from c:\confidential to d:\publicreports. which of the following best describes what happens to the permissions for both files as they are created in the d:\publicreports folder?
Allow both full control best describes the permissions that members of the user's group will have for the two files in the D:\PublicReports folder.
A software function or feature called a public folder enables users to share files with other users and devices on the same network or computer. These users and devices often handle data of any sort. Depending on the application, a public folder may have a variety of features and configurations.
Using public folders is a quick and efficient method to gather, organize, and share information with other members of your department or the entire company. Public folders may be used to store any kind of file or Outlook item. Post material to an electronic bulletin board using public folders.
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All of the following are treated as assets of the parent for financial aid, except?
A. 529 Savings Plan.
B. Prepaid Tuition.
C. Coverdell ESA.
D. UGMA.
Except for UGMA, all of the following are considered parent assets for the purposes of financial aid. Thus option (D) is correct
What is financial?Financial refers to or concerns money. The corporation is having financial issues, according to the financial advisors to the government. Synonyms include budgeting, business, and economics. additional words for financial
Financial aid is money given to students to help with the cost of attending college or a trade school. Scholarships, loans, work-study programs, and grants all contribute to the affordability of a college education. 1,667 qualified students will receive awards from the California Student Aid Commission (CSAC) totaling up to $4,500 per academic year, $2,250 per semester, and $1,500 per quarter.
Therefore, Thus option (D) is correct
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In Texas v Johnson, the Supreme Court overturned a Texas state law banning flag burning as a violation of the First Amendment's protection of free speech. According to an article by the Washington Post, polls show most Americans want flag desecration outlawed.A) Explain why federalism makes it difficult for states to address an issue like flag burning, even though most Americans want flag desecration outlawed.
Federalism makes it difficult for states to address an issue like flag burning the flag as a violation because the burning of the flag is considered a symbol of speech which is protected by the First Amendment in the Constitution.
Federalism refers to control over a country or territory by two levels of government. A national government looks up to the development of the country while the smaller divisions and sub-divisions look up to the local concerns of the various states in the country.
The federal government does not allow the states to address issues such as flag burning. Although, Americans have preferred to outlaw flag violation it has not been acted upon by the local state governing bodies as the flag burning is considered a way of expressing which is a part of free speech.
Constitutionally free speech is protected by First Amendment, therefore, flag violation is not outlawed.
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the perpetual inventory system is also known as what type of review system? multiple choice interval periodic continuous estimated scheduled
The level of inventory and the cost of goods sold are measured by the periodic inventory system through periodic physical counts. The perpetual system automatically makes adjustments to inventory balances whenever a product is received or sold.
What does "perpetual inventory" mean?
In order to ensure that the book inventory accurately depicts the actual stock, perpetual inventory is a continuous accounting practice that records inventory changes in real time without the need for physical inventory.
What kind of company makes use of a perpetual inventory system?
Businesses that have a greater number of inventory units and simply do not have the time to manually count them typically use the perpetual inventory system. The perpetual inventory accounting method is typically used by grocery stores, for instance.
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which of the following are true according to the keynesian economic view?
Decrease in the government-spending component of aggregate demand will not affect real GDP for very long.
Even a severe decrease in citizens' expectations of future income will not affect long-run economic output.
Nominal prices matter to the long-run economy
Prices are perfectly flexible.
The true statements according to the Keynesian economic view is that Nominal prices matter to the long-run economy. Option C
What is the Keynesian economic view?The numerous macroeconomic theories and models of how aggregate demand significantly affects economic production and inflation are known as Keynesian economics. According to the Keynesian perspective, the level of overall demand need not match the economy's capacity for production.
Keynesians contend that because prices are somewhat rigid, changes in any aspect of spending, whether government, investment, or consumer spending, affect output. For instance, output will rise if government expenditure rises while all other spending factors stay the same.
The greater employment levels promoted by Keynesian economics are one of the model's many advantages, among its many disadvantages. As firms reduce the number of their workforces, employment declines and unemployment rates rise during recessionary times.
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a company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy and is unable to pay the pension amount. which of the following statements is true in the given scenario?
Maintains a solvency fund to pay benefits if a company goes bankrupt and cannot pay its retiree benefits.
Unlike defined contribution plans in defined benefit plans the employer, not the employee bears all the planning and investment risks. Benefits can be paid in monthly installments like an annuity or in one lump sum. In a defined benefit plan an employer promises an employee a pension upon retirement.
In a defined benefit plan the employer, not the employee bears the greatest risk. Defined contribution plans offer valuable tax benefits. Where these include pre-tax contributions that reduce the employee's taxable income and potential employer tax credits or after-tax loss contributions that provide the employee with tax-free income after retirement.
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Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
Omnichannel retailing creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
The term "omnichannel retailing" refers to a retailer's efforts to offer a unified, coordinated customer experience through all relevant customer channels while utilizing standardized, global data.
Similar to multi-channel selling, omnichannel retailing usually includes a wider view of a opportunity. Omnichannel retailing emphasizes data & infrastructural preparedness to give a comprehensive view of the connection on any platform at any time, in contrast to multi-channel retailing, which concentrates on expanding the number of connected channels. The challenge for retailers is to provide customers with a single, reliable source of information, irrespective of how they decide to contact the business. Mobile devices, websites, physical storefronts, pop-up shops, tele sales, catalogues, and other means of interaction are examples.
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The given statements relate to variables in the equation of exchange. Place the appropriate variable or variables next to each statement according to how a monetarist would describe the variable or variables. money supply real GDP nominal GDP Answer Bank The average number of times each dollar is used in a year. total spending price level stable over time If M increases, this variable is most likely to increase as well.
If M increases, this variable in the equation of exchange is most likely to increase as well- P
Money supply - M
Real GDP- Q
Nominal GDP- P×Q
The average number of times each dollar is used in a year- V
Total spending- P×Q
Price level- P
Stable over time- V
Equation of exchange- The exchange equation is written as MV = PY. When M, V, P, and Y change, then%M +%V =%P +%Y, where denotes "change in." V is constant in the long run, so %V = 0.
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g direct material beginning balance 5,450 9,900 5,650 work in process debit credit beginning balance 4,550 22,650 6,650 8,950 8,750 finished goods debit credit beginning balance 2,650 20,850 22,650 manufacturing overhead debit credit 3,250 8,750 3,950 3,650 wages
G direct fabric starting balance. The debit aspect of the producing Overhead account indicates the real Overhead incurred which is [$3,250 + $3,950 + $3,650] = $10,850
The credit score side of the producing overhead suggests Overhead applied that's $8,750
since, the manufacturing overhead applied is much less than the actual manufacturing overhead the overhead is stated to be underneath-carried out by way of [$10,850 - $8,750] = $2,100
The producing overhead implemented changed to $8,750
answer.
$8,750
Balanced residing method thinking about all components of our lifestyles relationships, work, fitness and health, and emotional properly-being. we all get bogged down with work and the circle of relatives' responsibilities from time to time, however, making time for ourselves is important so we can preserve up with all our responsibilities.
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company x sells a building for $600,000. the book value of the building is $1 million. the accumulated depreciation on the building is $300,000. what is the gain (or loss) recorded on the building sale?
The gain (or loss) recorded on the building sale -100,000.
Adjusted basis of building = 1,000,000 – 300,000 = 700,000
Sale price = 600,000
It is loss as basis is higher than selling price.
Loss on sale = 600,000 – 700,000 = -100,000
Straight-Line Method: This is the maximum usually used technique for calculating depreciation. In order to calculate the cost, the distinction among the asset's price and the anticipated salvage cost is split with the aid of using the overall quantity of years a organisation expects to apply it.
Under the revaluation technique, a ready individual values the organization's belongings on the stop of every economic yr. and the depreciation are calculated with the aid of using deducting the cost on the stop of the yr. from the cost at the start of the yr. The reason of depreciation is to symbolize a correct cost of belongings at the books. Every yr., as belongings are used, their values are decreased at the stability sheet and expensed at the earnings statement.
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a new project would require an immediate increase in raw materials in the amount of $1,000. the firm expects that accounts payable will automatically increase $800. how much must the firm expect its investment in net working capital to change if they accept this project?
+$200
The Networking Capital if the new project is accepted
NWC= Current assets - current liabilities
An increase in raw materials is a current asset = $1000
An increase in accounts payable is a current liability= $800
Therefore NWC = $1,000 - $800
=$200
What is networking capital?
The difference between a company's current assets—such as cash, accounts receivable/unpaid invoices from customers, and inventories of raw materials and completed goods—and its current liabilities—such as debts and accounts payable—is known as working capital, sometimes known as net working capital (NWC).
The difference between a company's current assets and current liabilities is what is known as net working capital. When a corporation has a positive net working capital, it suggests they have enough money to meet its current obligations or needs.
Net working capital = current assets (less cash) – current liabilities (less debt)
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