Answer:
b. A deduction from net income in determining cash flows from operating activities.
Explanation:
An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.
I hope I made it clear to you. If you still have any queries, feel free to ask me.
Thanks!
Answer:
I think
hand-eye coordination and
customer service
Setting a goal, reaching it, and then setting a bigger goal is a characteristic trait of a Self-motivated Entrepreneur.
Answer:
The price per share of equity is $37.083
Explanation:
The first capital structure is purely equity based and Guld Shores will sell 300000 shares at price x to raise the needed capital.
The second structure is a mixed or leveraged structure where both debt and equity components are involved. The capital that needds to be raised remains constant.
Gulf has to give up 300000 - 252000 = 48000 shares and raise 1.78 million dollars from debt. We assumed that the amount that Gulf will raise is the ame from both th structures. Then 48000 shares at price x are equal to $1.78 million debt.
So, Price per share of equity is,
1,780,000 = 48000x
1780000 / 48000 = x
x or price per share = $37.083
