Answer:
1. False
2. A. financing decision
Explanation:
The capital budgeting refers to the investment in long term assets like machinery, new process, plants, machine replacement that can increase productivity and create a better return in the near future. There are various processes to determine it. It can be by net present value, internal rate of return, etc
The financial decision belongs to a certain decision that illustrates the allocation of financing and funding. It also helps in paying the investment and keeping expenses that can increase the wealth of the shareholder.
It is made up of decisions related to capital budgeting, working capital management. The working capital displays the current assets and current liabilities According to the case, as the small investment project is paid through a $1 million that results in an increase in a short term bank loan
Answer:
$32
Explanation:
Particulars Amount
<u>Cash from operating activities</u>
Net Income $32
Add: Loss on sale of land $4
Depreciation Expense $14
<u><em>Working Capital Changes</em></u><em>
</em>
Increase in Accounts Payable $9
Increase in Accounts Receivable -$19
Increase in Inventory -$7
Decrease in Wages Payable <u>-$1</u>
Cash flow from operations <u>$32</u>
