Which liabilities would tend to spontaneously increase with sales? Why?
Which liabilities would tend to spontaneously increase with sales? Why?
Homework Answers
Higher sales in general increase all the current liabilities and at the same rate as the increase in sales rate. With an increase in sales, the accounts payable will go up due to larger purchases of raw materials and other inputs. Also, higher sales means that the taxable income will go up and so will the accrued taxes. Also , accrued wages will rise since to sell more the firm will have to produce more and the company may not make all labor payments within the stipulated time.
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Which liabilities would tend to spontaneously increase with sales? Why?
1. Assume sales are currently 100, projected sales are 110, assets that increase spontaneously with sales...
1. Assume sales are currently 100, projected sales are 110, assets that increase spontaneously with sales are 100, liabilities that increase spontaneously with sales are 50, the profit margin is 4% and the payout ratio is 25%. Using the AFN equation, what are the additional funds needed? A. $1.2 B. $1.7 C. $0.7 D. $3.8 2. Assume sales are currently 200, projected sales are 250, assets that increase spontaneously with sales are 800, liabilities that increase spontaneously with sales are...
24. Assuming that other factors are held constant, which of the following would tend to increase...
24. Assuming that other factors are held constant, which of the following would tend to increase the likelihood of rejecting the null hypothesis? a. Decrease the sample size b. Increase the sample mean difference c. Increase the sample variance d. None of the other 3 options would increase the likelihood
2. Which of the following changes would tend to increase the premium on a disability policy?...
2. Which of the following changes would tend to increase the premium on a disability policy? a. a shorter elimination period b. use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited" c. decreasing the benefit level from 66% to 50% of prior earnings d. decreasing the payment period from until age 65 to a maximum of 2 years e. none of the above linearance is
When stumpage price increases, timber harvest levels and tree planning tend to increase. Why?
When stumpage price increases, timber harvest levels and tree planning tend to increase. Why?
A depreciation of the U.S. dollar relative to the euro would tend to A. increase U.S....
A depreciation of the U.S. dollar relative to the euro would tend to A. increase U.S. imports from Germany. B. increase both U.S. imports from Germany and U.S. exports to Germany. C. decrease U.S. exports to Germany. D. increase U.S. exports to Germany.
Which of the following would increase assets and increase liabilities? Multiple Choice O Pay dividends to...
Which of the following would increase assets and increase liabilities? Multiple Choice O Pay dividends to stockholders. Pay dividends to stockholders. Receive a utility bill for the current month. Plan to pay bill beginning of next month. Purchase office supplies on account. o oo Provide services to customers on account.
Why is an increase in asset accounts a cash outflow and increase in liabilities account a...
Why is an increase in asset accounts a cash outflow and increase in liabilities account a cash inflow?
Which of the following transactions would cause an increase in both the assets and liabilities of...
Which of the following transactions would cause an increase in both the assets and liabilities of a company? Multiple Choice Pay for inventory purchased 90 days ago. Purchase of a building by issuing a note payable. Paying for the current month's rent. Services received on account
Which would you rather have? • An increase in Sales of $1.00 with the same %-Sales...
Which would you rather have? • An increase in Sales of $1.00 with the same %-Sales cost structure • Same Sales level but decrease expenses by $1.00. Use a simple income statement to support your choice.
Which of the following statements is true A Interest rates on bonds of different maturities tend...
Which of the following statements is true A Interest rates on bonds of different maturities tend to move together over time O B. Yield curves almost always slope downward. O c. when short-term interest rates are low. yield curves tend to be inverted. D. When short-term interest rates are high, yield curves tend to be upward sloping According to the segmented markets theory of the term structure of interest rates, if bondholders prefer short-term bonds to long-term bonds, the yield...
24. Assuming that other factors are held constant, which of the following would tend to increase the likelihood of rejecting the null hypothesis? a. Decrease the sample size b. Increase the sample mean difference c. Increase the sample variance d. None of the other 3 options would increase the likelihood
2. Which of the following changes would tend to increase the premium on a disability policy? a. a shorter elimination period b. use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited" c. decreasing the benefit level from 66% to 50% of prior earnings d. decreasing the payment period from until age 65 to a maximum of 2 years e. none of the above linearance is
Which of the following would increase assets and increase liabilities? Multiple Choice O Pay dividends to stockholders. Pay dividends to stockholders. Receive a utility bill for the current month. Plan to pay bill beginning of next month. Purchase office supplies on account. o oo Provide services to customers on account.
Which of the following transactions would cause an increase in both the assets and liabilities of a company? Multiple Choice Pay for inventory purchased 90 days ago. Purchase of a building by issuing a note payable. Paying for the current month's rent. Services received on account
Which of the following statements is true A Interest rates on bonds of different maturities tend to move together over time O B. Yield curves almost always slope downward. O c. when short-term interest rates are low. yield curves tend to be inverted. D. When short-term interest rates are high, yield curves tend to be upward sloping According to the segmented markets theory of the term structure of interest rates, if bondholders prefer short-term bonds to long-term bonds, the yield...
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