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2 years ago

How would a company's working capital be affected if a substantial amount of accounts payable were paid in cash?

1 answer:

3 0

If a company pays most of the major payments through cash it means its cash flow will be reduced due to the company’s working capital will also reduce but the current liabilities will remain unchanged.

Cash flow includes in Current assets of the company and is considered to be the strength of the company's working capital. therefore with the cash payments company's current assets will reduce and this reduction weakens working capital.

For example, Individual A pays most of the payments through cash and his current assets are being reduced due to that his working capital would also reduce with its cash flow but the liabilities will remain unchanged as they are long-term debt.

Liabilities are of more than a year or about a year due to that they’ll not affect the current assets of the company and this will not affect its working capital.

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A manager engaged in the management function of ____ is determining organizational goals and the means for achieving them.a. pla

Ugo [173]

The correct answer is: [A]: " planning " .

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" A manager engaged in the management function of planning is determining organizational goals and the means for achieving them. "

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4 years ago

How do you derive consumer equilibrium is the cardinal utility approach

solniwko [45]

Answer:

According to utility analysis, the consumer will be in equilibrium when he is spending money on goods in such a way that the marginal utility of each good is proportional to its price. Let us assume that, in his equilibrium position, consumer is buying q1 quantity of a good X at a price P1.

Explanation:

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3 years ago

In the context of key economic considerations when entering a foreign market, the transportation infrastructure in a country mos

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Answer:

The correct answer is letter "D": roads.

Explanation:

Depending on the industry of a company conducting operations in a foreign market, such as mining, the firm is likely to need to construct roads to create communication means between the area where the company is to operate and where the products manufactured are going to be traded.

Foreign investment involves large amounts of money that is why some companies prefer other methods to have a presence in other countries such as franchising or licensing.

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3 years ago

During March, the production department of a process manufacturing system completed a number of units of a product and transferr

ANEK [815]

Answer:

Direct Materials EU = 165,000

Direct Labour EU = 144,000

Explanation:

Equivalent Units (Weighted Average Method) = Beginning Goods In process + Units Completed + Ending Goods x % of completion

Direct Materials: 25,000 + 110,000 + 30,000 x 100% = 165,000

Direct Labor: 25,000 + 110,000 + 30,000 x 30% = 144,000

Remember: In the weighted average cost system the units in process at the beginning are count as a full equivalent unit of production.

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4 years ago

A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the period. During the ac

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Answer: 25%

Explanation:

Employee turnover rate (ETR) = number of employees leaving/Average number of employees × 100

Number of employees leaving = 50 employees leaving voluntarily + 5 terminated employees = 55 employees

Average number of employees = 100 + 120 = 220 employees

ETR = 55÷220 × 100 = 25%

Therefore the Employee turnover Rate for the accounting period was 25%

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3 years ago