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3 years ago

If your Company doesn't have cash flow which of these things is likely to happen

Business

2 answers:

gladu [14]3 years ago

8 0

-You may get a better interest rate on debt funding.

-You may not be able to pay your bills.

-You may need to get a special business permit.

-You may pay more in commissions to your salespeople.

Answer:

-You may not be able to pay your bills.

Explanation:

Cash flow refers to the money that enters and leaves a company. The money comes from the customers that buy your products or services and goes out to pay for expenses. If a company doesn't have a cash flow it means that it doesn't have money to fulfill its obligations. According to this, the answer is that if your company doesn't have cash flow you may not be able to pay your bills.

The other options are not right because the cash flow is not related to business permits and if you don't have enough money to cover your expenses, you won't be able to get a better interest rate from financial institutions aand you can't pay more to your salespeople.

Ipatiy [6.2K]3 years ago

5 0

lost of your company's jop

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2 years ago

At the beginning of the year, ACME had an inventory of $600,000. During the year, the company purchased goods costing $2,250,000

babunello [35]

Answer:

COGS (cost of goods sold) = $2,100,000

Gross Profit rate = 0.3

Explanation:

The formula for computing COGS (cost of goods sold) is as

COGS (cost of goods sold) = Beginning inventory + Purchases - Ending inventory

where

Beginning inventory amounts to $600,000

Purchases made during the period is $2,250,000

Ending inventory is $750,000

So, putting the values above:

COGS (cost of goods sold) = $600,000 + $2,250,000 - $750,000

COGS (cost of goods sold) = $2,850,000 - $750,000

COGS (cost of goods sold) = $2,100,000

The formula for computing Gross Profit rate is as:

Gross Profit rate = Gross Profit / Net Sales

where

Gross Profit is computed as:

Gross Profit = Net Sales - COGS

= $3,000,000 - $2,100,000

Gross Profit = $900,000

Net Sales is $3,000,000

So, putting the values above:

Gross Profit rate = $900,000 / $3,000,000

Gross Profit rate = 0.3

4 0

2 years ago

The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rat

insens350 [35]

Answer:

the budgeted direct labor cost is $441,000

Explanation:

The computation of the budgeted direct labor cost is shown below:

Budgeted direct labor cost

= Budgeted production × hours per unit × rate per hour

= 28,000 units × 1.5 × $10.50

= $441,000

Hence, the budgeted direct labor cost is $441,000

So the correct option is B.

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2 years ago

Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year

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Answer:

3. embedding culture

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2 years ago

Read 2 more answers

The risk free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2 and a standard deviati

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Answer:

20.1%

Explanation:

In capital asset prcing model (CAPM), cost of equity (or cost of retained earnings in this context) is calculated as below:

Cost of equity = risk-free rate of return + beta x (market index return - risk-free rate of return)

Please note that (market index return - risk-free rate of return) is equal to market risk premium

Putting all the number together, we have:

Cost of equity/retained earnings = 2.5% + 2.2 x 8% = 20.1%

Note: The dividend growth rate, tax rate & stock standard deviation is not relevant in answering the question.

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2 years ago