Answer:
$165,000
Explanation:
Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.
The Depreciation is already adjusted in the Cash Flow from operating activities.
Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure
Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000
Current and Long term liabilities has nothing to do in free cash flow calculations.
Answer:
If a person wants to start a business but the limit the amount of liability he is responsible, Option D, Corporation would be most appropriate.
Explanation:
In corporation or a limited liability corporation, one doesn’t need to liquidate his/her personal assets to cover the debt in case the business goes bankrupt. A corporation is a company or group of people that can act legally as a person or single entity. Because of this, the owners of the corporation have limited amount of legal liability for the corporation's business activities and debts.
In sole proprietorship, person who owns the business is responsible for his debts and has unlimited liability. Similarly, in partnership and joint venture also, person is liable for the debts. So, out of the given options, Option D is the correct answer if person wants to limit his liability.
Answer:
a) reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains unchanged
Explanation:
The bank reserves will decrease by the same amount that the client withdrew from the bank, in this case $1,000.
Since the required reserve ratio for checkable deposits is 10%, then the checkable deposits will decrease by 10 times the amount withdrawn from the bank ($1,000 x 10 = $10,000).
The monetary base remains unchanged since the money is still out there in the economy, it only changed from being in the bank to being in the client's pocket.
Answer:
c. The owner of an intellectual property grants its use to a league in exchange for a fee.
Explanation:
Licensing occurs when: owner of an intellectual property grants its use to a league in exchange for a fee.
Answer: The cheaper cost is to <u>hire an additional worker. </u>
Explanation:
Employee:
With an employee, Trent is going to have to pay payroll taxes.
After-tax cost of hiring employee:
= Salary * (1 + Payroll tax)
= 88,000 * ( 1 + 7.5%)
= $94,600
The subtract the income tax from this amount:
= 94,600 * ( 1 - 21%)
= $74,734
Contractor:
With a contractor, only the marginal income tax is accounted for:
= 95,000 * (1 - 21%)
= $75,050
The cheaper cost is to <u>hire an additional worker. </u>