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MissTica
2 years ago
8

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

Business
1 answer:
rosijanka [135]2 years ago
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.

You can learn more about Economics Capitals: brainly.com/question/28179485

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7 0
4 years ago
How do you derive consumer equilibrium is the cardinal utility approach​
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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.

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7 0
3 years ago
In the context of key economic considerations when entering a foreign market, the transportation infrastructure in a country mos
shepuryov [24]

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 <em>roads </em>to create communication means between the area where the company is to operate and where the products manufactured are going to be traded.  

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6 0
3 years ago
During March, the production department of a process manufacturing system completed a number of units of a product and transferr
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Answer:

Direct Materials EU = 165,000

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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.

8 0
4 years ago
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Therefore the Employee turnover Rate for the accounting period was 25%

7 0
3 years ago
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