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Why is depreciation added to net income in the Operating Activities category of the statement of cash flows when the indirect method is used? Depreciation provides cash and therefore must be added to net income. Depreciation was deducted in arriving at net income on the accrual basis of accounting; however, it did not require the use of cash. Depreciation expense is a negative amount in the Investing Activities section and therefore is a positive amount in the Operating Activities section. Depreciation reduced the book value of plant assets and, therefore, must be reported as an investing activity.
The private marginal benefit associated with a product's consumption is PMB=360-4Q and the private marginal cost associated with its production is PMC=6Q. Furthermore, the marginal external damage associated with this good's productions is MD=20. Cal..
Typically the government: Inflation caused by people’s expectations of inflation is called self-fulfilling inflation. The _____ the unemployment rate and the _____ the rate of inflation, the higher the misery index. If the nominal rate of interest i..
you relate concepts in this week's readings to a prior real world experience. Experience does not necessarily have to be work experience. Examine market equilibrating process in relation to your experience.
Which of the following is a short-run adjustment?
By itself, the upstream manufacturer cannot implement a price discrimination scheme against downstream consumers because downstream retailers can defeat it. To see this, suppose that home gardeners and farmers both use the same herbicide. Suppose the..
Average visit per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage c..
Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.
A manager tells his workers that they must perform their duties in the exact manner and order that he has commanded, with no exceptions. He is using
A market has a demand curve described by P=30-Q, a supply curve described by P=16+Q, and a price ceiling of 20. Calculate the Total Surplus of the market with the price ceiling
A public university wants to apply the concept of the WACC to developing its interest rate for analyzing capital projects. It has an endowment of $68 million which is earning 6.3% interest. It is paying 4.5% interest on $29 million in bonds. It belie..
We have spent so much on our present office that we cannot afford to waste this money by moving now." Estimate the second partner's advice not to move downtown.
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
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