2. Cash flows from __________ activities are the cash flows from transactions that affect the debt and equity of the company.

Which department is responsible for initiating the purchase of materials?

IceJOKER [234]

I would say the inventory department.

4 0

3 years ago

Sarasota company manufactures pillows in the cutting and assembly process. pillows are manufactured in 40-pillow batch sizes. th

Viefleur [7K]

Answer: c. 12 minutes

Value added time is the amount of time it takes to actually produce and improve a product. In the case of Sarasota company who manufactures pillows, value added time is the production time which is 4 minutes in cutting and 8 minutes in the assembly, total of 12 minutes.

8 0

2 years ago

If the money multiplier is 3 and the Fed wants to increase the money supply by $900,000, it could 18. A. Buy $300,000 worth of b

Allushta [10]

Answer:

The right solution is Option A "buys $300000 worth rupees bonds".

Explanation:

Given:

Money multiplier,

= 3

Change in money supply,

= $900000

As we know,

⇒ $Money \ multiplier=\frac{Change \ in \ total \ money \ supply}{Change \ in \ total \ monetary \ base}$

Or,

⇒ $Change \ in \ total \ monetary \ base=\frac{Change \ in \ total \ money \ supply}{Money \ multiplier}$

On putting the values, we get

⇒ $=\frac{900000}{3}$

⇒ $=300000$ ($)

8 0

3 years ago

In its most recent financial statements, Nessler Inc. reported $55 million of net income and $770 million of retained earnings.

GrogVix [38]

Answer:

The $1,000,000 is the dividend amount which were paid to shareholders during the year

Explanation:

The computation of the dividend paid is shown below

As we know that,

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

So

$770,000,000 = $716,000,000 + $55,000,0000 - dividend paid

$770,000,000 = $771,000,000 - dividend paid

So, dividend paid = $1,000,000

3 0

2 years ago

The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates the p

Vika [28.1K]

Answer:

Investing today is a better option because it has a better NPV of $2.3398 million

Explanation:

Given data :

<u>For Today's Investment </u>

Initial capital investment = $4 million

positive cash flow = $2 million

period of cash flow = 4 years

project cost of capital = 10%

To get the value of This option we have to determine the NPV of this option

NPV = PMT * $[\frac{1-(1+r)^-4}{r} ] - initial cash flow$ ----------- (1)

PMT = $2 million

r = 10%

initial cash flow = $4 million

Equation 1 becomes

NPV = (2 * 3.1699 ) - 4

= $6.3398 - $4 = $2.3398 million

<u>For later investment ( 2 years )</u>

initial capital investment = $5 million

90% chance of positive cash flow = $2.1 million

10% chance of positive cash flow = $1.1 million

project cost of capital = 10%

NPV value for a cash flow of $1.1 million

NPV = PMT * $[\frac{1-(1+r)^-4}{r} ] - initial cash flow$

PMT = $1.1 million

initial cash flow = $5 million

r = 10%

Hence NPV = ($1.1 * 3.1699 ) - $5 million

= $3.48689 - $5 million

= - $1.51311

therefore the present NPV = - $1.51311 / 1.21 = -$1.25 million ( therefore no investment will be made )

NPV value for a cash flow of $2.1 million

NPV = PMT * $[\frac{1-(1+r)^-4}{r} ] - initial cash flow$

PMT = $2.1 million

initial cash flow = $5 million

r = 10%

hence NPV = ($2.1 * 3.1699 ) - $5 million

= $6.65679 - $5

= $1.65679

therefore the present NPV = $ 1.65679 / 1.21 = $1.369 million

The Expected NPV value of later investment ( after 2 years )

= $0 * 10% + $1.369 * 90%

= $1.2321 million

4 0

3 years ago