Advances in Technology Have Improved the Rate of Production of Widgets

question 267

Short Answer

Advances in technology have improved the rate of production of widgets over the last 10 years and the number of plant workers required has declined by 25%. What is the equivalent annual rate of decrease during the period?

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Definitions:

Income Statement Relationships

The relationships within an income statement involve how revenues, expenses, and profits interact and affect each other to show a company's financial performance over a period.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and thus are written off as a bad debt expense.

Promissory Note

A tool used in finance that carries an explicit pledge by a party to give another party a defined sum of cash, which may be required instantly or at a later date agreed upon by both parties.

Accounts Receivable Turnover

Accounts Receivable Turnover is a financial ratio that measures how many times a company can turn its accounts receivable into cash during a period, indicating the efficiency of collecting debts.