The collapse of the U.S. housing market and the resulting Great Recession of 2007-2009 produced significant shifts in Americans' living situations and attitudes about home ownership
Home builders, furniture stores, and appliance manufacturers all adjusted business strategies in response to what main factor?
What will be an ideal response?
Answer: The Great Recession represented a significant social change in the buying power of individuals throughout the economy.
Explanation: Homeownership rates dropped during this period, and many Americans no longer believe that owning a home provides financial security. These profound social changes impact any business that serves the housing market.
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Which of the following audit risk components may be assessed in qualitative terms?
A. Risk of material misstatement. B. Detection risk. C. Neither risk of material misstatement nor detection risk. D. Both risk of material misstatement and detection risk.
Describe the internal business perspective of the balanced scorecard and provide an example of a critical success factor for this perspective
A ________ cost changes in total in proportion to changes in the volume of activity.
What will be an ideal response?
McDaniel, Inc uses the direct method to prepare its statement of cash flows
Refer to the following financial statement information for the year ended December 31, 2017: McDaniel, Inc Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 Increase (Decrease) Cash $35,100 $15,100 $20,000 Accounts Receivable 26,800 33,800 (7,000 ) Merchandise Inventory 56,100 29,100 27,000 PP&E, net 126,000 92,000 34,000 Total Assets $244,000 $170,000 $74,000 Accounts Payable 9,700 13,700 $(4,000 ) Accrued Liabilities 6,900 2,900 4,000 Long-term Notes Payable 69,400 78,400 $(9,000 ) Total Liabilities $86,000 $95,000 $(9,000 ) Common Stock $55,000 $3,000 $52,000 Retained Earnings 115,000 78,000 37,000 Treasury Stock (12,000 ) (6,000 ) (6,000 ) Total Stockholders' Equity $158,000 $75,000 $83,000 Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000 McDaniel, Inc Income Statement December 31, 2017 and 2016 2017 2016 Sales Revenue $289,700 Interest Revenue 2,600 Gain on Sale of Plant Assets 6,000 Total Revenues and Gains $298,300 Cost of Goods Sold 146,800 Salaries and Wages Expense 47,500 Depreciation Expense-Plant Assets 16,000 Other Operating Expense 24,700 Interest Expense 3,500 Income Tax Expense 7,800 Total Expenses 246,300 Net Income $52,000 Use the direct method to compute the payments made to employees. (Accrued Liabilities relate to other operating expense.) A) $72,200 B) $43,500 C) $24,700 D) $47,500