Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?
A. Low-skilled jobs will be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada.
B. Increased imports from Mexico will help reduce the huge trade deficit for United States and Canada.
C. Lower incomes of the Mexicans would allow them to import fewer U.S. and Canadian goods, thereby decreasing demand.
D. A large number of Mexican firms will hire low-skilled workers from the United States.
E. Some U.S. and Canadian firms would move production to Mexico to take advantage of lower labor costs.
E
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Capital budgeting is the ________
A) process of planning for investments in long-term assets B) preparation of the budget for operating expenses C) process of evaluating the profitability of a business D) process of making pricing decisions for products
Gamma Corp has prepared a preliminary cash budget for the third quarter as shown below
Cash Budget Jul Aug Sep Beginning cash balance $32,000 $4,400 $6,900 Plus: Cash collections $49,400 $51,000 47,800 Cash available 81,400 $55,400 $54,700 Less: Cash payments: Purchases of direct materials 36,000 9,000 10,000 Operating expenses 40,000 30,500 30,700 Capital expenditures 1,000 9,000 7,000 Ending cash balance $4,400 $6,900 $7,000 Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $55,000 in August, and $42,000 in September. Based on the new data, calculate the new projected cash balance at the end of July. A) $13,500 B) $4,400 C) $7,000 D) $7,800