If a war broke out abroad, it would affect the u. s. economy in many ways. use the model of large open economy to examine each of the following effects of such a war. what happens in the us to savings, investment, the trade balance, the interest rate, and the exchange rate? (to keep things simple, consider each of the following effects separately.)

a) the u. s. government, fearing it may need to enter the war, increases its purchases of military equipment.

b) other countries raise their demand for high-tech weapons, a major export of the us.

c) the war makes us firms uncertain about future, and the firms delay some investment projects.

d) the war makes us consumers uncertain about the future, and the consumers save more in response.

e) americans become apprehensive about traveling abroad, so more of them spend their vacations in the us.

f) foreign investors seek a safe haven for their portfolios in the university states.

What is the most important factor that affects the value of a company? a) cash flow b) earnings c) supply and demand d) number of employees

You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer

Your own record of all your transactions. a. check register b. account statement