When Bank RI or any other bank assesses whether a business is creditworthy and capable of repaying a long- or short-term debt obligation, one of the first things they consider is the movement of money into and out of the firm, also known as

a.cash flow.

b.risk-return ratio.

c.sales revenue.

d.collateral.

Which of the following forms of debt financing is unlikely to be used by a firm the size of Moonworks?

a.Commercial paper

b.Promissory note

c.Loans secured by inventory

d.Trade credit

Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company’s product at the current price is 1.4, would you advise the company to raise the price, lower the price, or to keep the price the same? What if the elasticity were 0.6? What if it were 1? Explain your answer.

1. How does accounting profit differ from economic profit? Explain why accounting profit is more useful for paying your taxes while economic profit is more useful for deciding whether you should continue to stay in business. Give an example of an implicit cost and an example of implicit revenue.

2. What is the distinction between the microeconomic short run and the microeconomic long run? How do these definitions relate to specific periods of calendar time?

1. Jon, Sara, Rohit, and Maria currently earn $100k, $120k, $40, and $20. Assume utility function is U(y)=(y)^(0.5).   Consider a utilitarian social planner deciding on whether to enact the following policy: tax 10% for all earnings above $50k, and transfer it as a lump sum to all earning below $50. Assume further that 30% of the potential revenue based on current earnings is “lost” (leaky bucket) due to reduced work incentives.

6. a) Explain as an investor how you would apply the Four Factor Value Matrix by Matt Kuppers.

b) You are a startup consultant and your client is a cryptocurrency-based payment card provider. To date, the startup offers customers a payment card which enables them to buy, hold and send cryptocurrencies. The payment card is connected to a cryptocurrency wallet. They are looking to grow the customer base. What modification of the business model would allow them to grow revenue?

1.Discuss the different types of industries can exist in the long-run. Please also elaborate your answer with suitable graphs.

2.Using the Marginal Revenue and Marginal Cost method, explain where should a firm produce. Support your answer with suitable graphs to show the short run profit and loss.

3.Discuss in details the relationship between short run and long run average cost curves. Support your answer with suitable graphs.

Air Transporation model

Model Y = bo + b1* x1 + b2 * x2

For the 1st case, the Dependent variable is:- Revenue passenger per mile This variable is dependent on the independent variables like [ load factor and enplanements

For 2nd case, the Dependent variable is:- Load factor This variable is dependent on the two independent variables like [ available seats and enplanement ]

What is the model assumptions? Also how these models related to past economic theory on airline transportation or research?

The balance of Landy ​Corporation's accounts payable at the beginning of the most recent year was $ 50,000. At the end of the​ year, the accounts payable balance was $ 54,000. Landy's sales revenue for the year was $ 3,105,000​, while its cost of goods sold for the year was $ 1,508,000. Calculate Landy's ​days' payable outstanding​ (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Landy's suppliers are​ n/30, how would you interpret Landy's ​DPO?

ABC uses the accrual basis of accounting. The amount of rent expense for Y2 was $100,000 and the amount of cash received from customers was $200,000. Selected information obtained from the company’s comparative balance sheets is shown below:

Compute the amount of cash paid for rent in Y2.

Novak Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Inventory, May 1$ 163,800

Purchases (gross)

651,200

Freight-in

29,500

Sales revenue

925,900

Sales returns

66,700

Purchase discounts

11,300

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost