Use the Information That Follows Taken from Campbell Company's Financial

question 1

Essay

Use the information that follows taken from Campbell Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 45 through 48.

-Calculate Campbell's debt to equity ratio as of December 31, 2009 and as of December 31, 2010. Also assume that in Campbell's industry, the industry average debt to equity ratio is 2.75 as of December 31, 2009 and as of December 31, 2010.
A) Campbell's debt to equity ratio improved from 2009 to 2010.
B) Campbell's debt to equity ratio was better than average for the industry both years.
C)
C) Campbell's debt to equity is worse than average for the industry for both years.
D) Both a and b above, but not

• A) Campbell's debt to equity ratio improved from 2009 to 2010.
• B) Campbell's debt to equity ratio was better than average for the industry both years.
• C) Campbell's debt to equity is worse than average for the industry for both years.
• D) Both a and b above, but not

Understand the factors that cause movement along the demand curve versus shifts in the demand curve.

Differentiate between a decrease in demand and a decrease in quantity demanded.

Calculate the total market quantity demanded with given individual demands.

Identify factors leading to shifts in the demand curve.

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Definitions:

Cost Behavior

The study of how specific costs change in relation to changes in a company's level of activity or volume of output.

Linear

Pertaining to or resembling a line; often used in mathematics to describe a relationship of direct proportionality.

Relevant Range

The range of activity within which the assumptions made about cost behavior are valid.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the volume of sales.