Answer:
2.34 million
Explanation:
Vasudevan incorporation reported an operating income of $2.90 million
The depreciation is $1.20 million
The tax rate is 40%
= 40/100
= 0.4
The firm's expenditure on fixed assets and net operating working capital is $0.6 million
Therefore, the free cash flow can be calculated as follows
Free cash flow= operating profit-tax+depreciation-expenditure
= 2.90-(2.90×0.4)+1.20-0.6
= 2.90-1.16+1.20-0.6
= 2.34
Hence the free cash flow is 2.34 million
Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
Answer:
d. Marketing
Explanation:
Marketing advantage is the edge a company has at attracting customers by having superior products, lower prices, innovative distribution, and effective promotion.
When businesses improve their marketing process it results in a strong brand, more loyalty, and resultant competitive advantage in the market.
It would be the real-business-cycle theory which is the principle that mainly revolves around the idea that the macroeconomic models are one of the significant factors that are responsible for the occurrence of economic shocks. In addition, the theory is also called the RBC theory.
1. What determines the degree of specialization within an organization? The organizational structure of the company determines the degree of specialization within an organization. Dependent on how the organization is broken up into categories allows the organization to figure out how they are able to control and break down their organizations speciality.
2. What three steps are involved in delegation? The three steps involved in delegation include: Assigning responsibility, granting authority and creating accountability. Assigning responsibility refers to giving those who are able to perform a task the duty to perform it. Granting authority is giving someone authority to make a power decision in a given situation to complete the task. Creating accountability refers to making sure an employee knows they are to finish the task and needs to be successful in doing so.
3. How does a firm's top management influence its degree of centralization? Centralization refers to the control or lack there of under different authority within an organization. If the firms top management is strict on their structure the organization will probably be on a tight chain when it comes to who has authority. Likewise, if the firm’s top management was more laid back, they would likely give more people authority to make decisions.
4. Contrast line-and-staff and matrix forms of organizational structure? Line and staff structures within an organization refers to the many different types of functions within an organization. A matrix form refers to transformation within a category that movies items into their set, special properties.
