True because they take notes on the security and the routines.
Answer:
1) False
when the inflation is lower than expected, the real interest rate will be higher, since
real interest rate = Nominal interest rate - inflation.
2) Gains
In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.
3) Loses
In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.
Answer:
Market division
Explanation:
Basically this is Dividing territories (also market division) which is an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories.
In our case, Delta stays out fo Efficient's way and the latter does the same.
We are given
fixed cost, F = $6,660,000
sales mix:
65% sporting goods
35% sports gear
margin ratio:
30% sporting goods
50% sports gear
Now, we solve for the break even point in dollars. We use the formula
x = total fixed cost / [ price - total variable cost/price ]
Using the given values
x = 6660000 / [0.65(0.3)(6660000) + .35(0.5)(660000)]/ [(0.3)(6660000) + (0.5)(660000)]
x = $14,400,000
The breakeven point is $14,400,000
This is the sales when the revenue is just equal to the total cost of producing the products resulting to zero profit.
Explain why the cash flow statement prepared using the indirect method does not explicitly report cash outflows during the period of purchases and salaries. and do not report spills.
In most cases, cash flow and net income statements differ due to the time lag between recorded sales and actual payments. The situation is controlled when the billing customer pays cash in the next period.
The main advantage of the indirect cash flow method is that it provides a net income and cash flow adjustment. The indirect method also helps financial statement users to better understand the various relationships between financial statements and is an easy way to prepare cash flow statements.
Which of the following statements is correct when using the indirect method to prepare the cash flow statement? Income from the sale of equipment is added to the net income of the operations section. Losses on land sales are added to the operating section's net income.
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