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vazorg [7]
1 year ago
13

A project's operating cash flow will increase when the: Group of answer choices depreciation expense increases. interest expense

is lowered. net working capital requirement increases. sales projections are lowered. earnings before interest and taxes decreases.
Business
1 answer:
kkurt [141]1 year ago
4 0

The correct option is (a) depreciation expense increases.

A measure of the amount of money made by a company's regular business operations is called operating cash flow (OCF). Operating cash flow shows if a business can produce enough positive cash flow to support and expand its operations; if not, it may need outside finance for capital growth.

While cumulative depreciation is the overall amount of wear and tear to date, depreciation expense is the amount that a company's assets are depreciated for a specific period (such as a quarter or the year). Accumulated depreciation is neither an expense, nor is it a depreciation expense.

Learn more about operating cash flow (OCF) here

brainly.com/question/735261

#SPJ4

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Judy is a cash basis attorney. This year, she performed services in connection with the formation of a corporation and received
inn [45]

Answer:

Judy must recognize $4,000 of gross income from the stock for the current year.

True

Explanation:

When you receive stock in lieu of cash for payment for services rendered. you'll first owe income tax based on the value of the stock at that time.

5 0
2 years ago
On January 1, 2019, Amazon issues $100,000 in bonds having a stated rate of 10%. The bonds mature in 2 years (Dec. 31, 2020) and
Nutka1998 [239]

Answer:

cash                   96,535 debit

discount on BP    3,465 debit

          Bonds Payable          100,000 credit

Explanation:

We need to determinate the price at which the bonds were issued:

Which is the present value of the coupon payment and maturity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

Coupon payment: 100,000 x 10% / 2 = 5,000

time 4  (2 years x 2 payment per year)

rate 0.06  (12% annual / 2 = 6% semiannual)

5000 \times \frac{1-(1+0.06)^{-4} }{0.06} = PV\\  

PV $17,325.5281  

 

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity (face value)   $100,000.00  

time   4.00  

rate  0.06

\frac{100000}{(1 + 0.06)^{4} } = PV  

PV   79,209.37  

 

PV c $17,325.5281  

PV m  $79,209.3663  

Total $96,534.8944  

As the bonds are issued below face value there is a discount:

100,000 - 96,535 = 3,465

the entry will recognize the cash procceds and the creation of a liaiblity

we will also use an auxiliar account for the discount on the bonds

7 0
3 years ago
Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover f
Artyom0805 [142]

Answer:

The correct option is E

Explanation:

The formula to compute the accounts receivable turnover of the company for the Year 2 is as:

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

where

Net Credit Sales be $723,000

And

Average Accounts Receivable is computed as:

Average Accounts Receivable = Accounts receivable Year 1 + Accounts receivable Year 2 / 2

= $86,500 + $82,750 / 2

= $169,250 / 2

= $84,625

Putting the values in the above formula:

= $723,000 / $84,625

= 8.54

5 0
2 years ago
When choosing a savings account to open, you should look for:
Damm [24]

Answer: A higher interest rate.

Explanation: Most savings accounts do not have a high interest rate at the moment.

6 0
2 years ago
How long would it take for the price level to double if inflation persisted at the following percentages?
Alekssandra [29.7K]

Answer:

inflation rate = 17.5 percent per year  ⇒ it will take 4 years to double

inflation rate =  35 percent per year  ⇒ it will take 2 years to double

inflation rate =  3.5 percent per year ⇒ it will take 20 years to double

Explanation:

we can use the rule of 70 to determine the amount of time it would take the general price level to double.

the rule of 70 is a simple way we can use to estimate the number of years it will take an investment to double given a certain growth rate.

70 / 17.5 =  4 years

70 / 35 =  2 years

70 /  3.5 = 20 years  

3 0
3 years ago
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