Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
Answer:
(B) $45,000.
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $74,000
Adjustment made:
Add : Depreciation expense $52,000
Less: Increase in accounts receivable -$36,000
Less: Increase in inventory -$16,000
Less: Decrease in accounts payable -$29,000
Total of Adjustments -$29,000
Net Cash flow from Operating activities $45,000
Answer:
Inventory Management Report
Explanation:
Inventory management is the most essential part of every organization where an organization manages its raw material, check their availability of a product, back storage so that company doesn't get a shortage of its product and the quantities. On the other hand inventory management report indicates the strong decision variables are set by the buyers.
Therefore from the above explanation, the correct answer is an inventory management report.
Answer: A. As Expenses
B. No treatment.
Explanation:
A. The $100,000 was not structured and a loan so it will be accounted for as EXPENSES. This means that it will be deducted from the Income for the year from Calhoun's books.
B. A C Corporation is by definition taxed SEPARATELY from it's owners in the United States of America. Seeing as both Corporations were C Corporations, Jonathan as the owner of both companies need not worry about how he should treat the $100,000 payment as he will not ne taxed on it.
