Financial Checkup Assignment Example | Topics and Well Written Essays - 750 words

Financial Checkup - Assignment Example The figures clearly indicate that I am credit worth as my assets are capable of covering my credit. In addition, it shows that I understand how to manage my debts as I keep the levels of debts below what I really own (Assets).The figures can be helpful when seeking short term credit to handle my short term needs (Eisenberg 69). According to my income and expense statements, the total expense is $2750 while my income is $900.The total loss is $1840.From this figures, my total expense exceed the total income resulting in a loss. This may be attributed to the fact that being a student, there is little time to engage in income generating activities but there is extensive spending due to a number of requirements in the learning institution and my personal needs. However, my income of 900 dollars show that I am capable of managing my time and engage in part time income generating activities , which clearly indicate that I can utilize time as a major resource in making substantive income(Eisenberg 62). My liquidity ratio is 2.92,which is below the recommended ratio of 3.The ratio shows that my liquid assets cannot meet my current expenses by a difference of 0.8.This can be attributed to the fact that as a student, I am bound to spent more than what I hold as liquid assets. However, the figure is comparatively positive compared to other students as it shows that I can meet most of my current expenses using my own cash and cash equivalents. Further, the figure is not alarming as I can still manage to get external source of cash such as pocket money from parents to cover the current expenses that I may be unable to meet on my own (Eisenberg 33).The debt asset ratio is 0.72.This figure is below 1, which clearly indicates that my assets exceed my debts and so I can pay my debts. Further, the figure shows that I am credit worth when borrowing or applying for a loan. My monthly average amount for revolving savings is$417.This average budgeted amount for every moth show

Microeconomics Research Paper Example | Topics and Well Written Essays - 1000 words

Microeconomics - Research Paper Example The firm's decision to produce is driven by the profitability of the product at given market price. As long as the price is more than the marginal cost of production, the firm will produce and sell butter. But at point where the marginal cost is equal to marginal revenue, the firm will be indifferent and below that, it will stop producing and selling butter as the costs exceed the revenue earned. This is also referred to as profit maximization behavior of firms. With the establishment of new butter making firms, the supply of butter in the market will increase. Given the demand is not changing, the supply will cause over-supply of butter and thus the price will move to equilibrium level, that is at the intersection of supply and demand curves. This will cause the price of butter to fall until it reaches the equilibrium level. The overall output levels of production if butter will increase as the supply has increased. For typical firms, the price decrease will cause reduction in their profitability and thus those operating at just marginal margins. As the new firms have entered the butter making industry, the out put will increase with the increase in the overall output of butter in the market, the firms increase their output levels. Firms which were just breaking even or making less profits may quit as the prices have gone down and their operations may have gone in loss region. C - Using 2 or more diagrams, explain what will happen... Firms which were just breaking even or making less profits may quit as the prices have gone down and their operations may have gone in loss region. C - Using 2 or more diagrams, explain what will happen to the market price and output, AND to the price of a typical firm, if the annual insurance premiums that butter-making firms pay on their buildings increase. If the annual insurance premium increases for the butter making firms, the total costs will increase because of increase in fixed costs. The increase in costs will cause the firms to reduce their supply until the Marginal revenue is more than the marginal costs. The reduction in supply will cause the price to move up until it reaches equilibrium level. The increase in cost will shift the ATC curve for the firms and thus reduce their margins on current price. To be profitable, they must increase the price levels if the firms are going to loss region due to increased costs. D - Using 2 or more diagrams, explain what will happen to the market price and output, AND to the price of a typical firm, if the price of milk (which is used to make butter) falls. If the price of milk falls, the cost of production of butter will go down as milk is the major raw material and ingredient of butter. Due to reduction of price of a major raw material, the costs will go down and thus new entrants will start entering the butter production segment. This will cause increase in supply of butter and thus the prices of butter will go down in the short run as well as in the long run. If the demand is held constant at original levels, the prices will go down until equilibrium price level is