Math homework help?

  • TSI25
    12 years ago

    Doing math homework and im pretty sure two of the options are exactly the same but worded differently....

    A. The firm makes a profit on this interval.

    B. The firm registers a loss on this interval.

    C. The profit of the firm increases on this interval.

    D. The profit of the firm decreases on this interval.

    E. Assuming the profits are reinvested in the firm the networth of the company is increasing on this interval.

    F. Assuming the profits are reinvested in the firm the networth of the company is decreasing on this interval.

    can some one explain the difference between A and C and/or B and D? also the relevance of E and F looking at a 2d chart about profit of a company over time?(graph sin on a calculator and thats what the graph looks like...)

  • Nicko
    12 years ago

    Well part of it, at the risk of looking like a dill...

    A & C, A means the firm made a profit this interval, with no reference to the previous interval C, means the firm made an increased profit from the previous interval where a profit was also inferred.

    B & D, B The firm made a loss this interval, with no reference to the previous interval. D, the profits decreased for this interval from the previous interval where a profit is also inferred.

  • TSI25
    12 years ago

    Im not sure that i follow you

  • AL
    12 years ago

    You have to compare profit and loss for each interval...Taken sequentially, A B C D sounds quite a high-low curve...B and D seem similar but they are not...B registered a loss, which means the profit-line should be in the negative axis when plotted...But D doesn't necessarily have to be that way - the profit decreased compared to its previous interval, C, not B...It's difficult to comment without seeing the datasheet/graph...

    Net worth is a company's total assets minus total liabilities...for E, if profit is reinvested and net worth is increasing, it could mean many things - the company bought some new assets, paid off some of its debts; or maybe it bought some new assets with liabilities unchanged; or it didn't buy anything but paid some debts with the profit money...So for E, the company made significant amount of profit during A & C, and the loss during B or D didn't matter much for net worth...

    Interval F - although profit is reinvested, the net worth of the company decreased - put it in the asset minus debt formula, and you will find a strong indication of accumulated loss, disposed off assets, increased debts, decline in shareholder's equity etc...

    "profit reinvested" is also called "retained earnings" - the amount from earnings not paid to shareholders, but "retained" for further acquisition of assets or to pay off debt...It's calculated by adding profit or subtracting loss from initial retained earnings and then subtracting dividends paid, if any...From this formula you will see, if loss is higher than initial retained earnings, it can make an overall negative retained earnings and eventually the decrease in net worth...My best assumption for F would be, profit made during A were not sufficient enough to cover up the registered loss during B, and the decreased profit during D accumulated a rather unfavourable impact on net worth despite increase in profit during C...

  • TSI25
    12 years ago

    Http://estudy11.iu.edu:8088/~estudy11/wwwWeBWorK2/courses/M119WhelanFall11/templates/problemBank/m119/setHHc1s3/c0s1p7/89321.gif

    this is the graph

  • Dark Secrets
    12 years ago

    I think the difference between A and C is that A means they want any point where there was profit, so there are many (any point existing in the (+,+) axes). As for C, it means they want you to give the highest increase in profit, which is the highest point in the (+,+) axes).

    I think the relevance of E and F depends on the curriculum you have... If it's something to do with economy, that's why. To give it purpose and help you relate it to it's use in life.

  • TSI25
    12 years ago

    Aha!!!!! i figured it out.

    at various points in the graph, for instance, a-b, 3 of those 6 possibilities applied, for instance a combination such as ACE was the answer.

    retarded, i dont know why it didnt phrase the question more clearly.

    thank you all for all the help!