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klemol [59]
4 years ago
11

The following financial information is taken from the annual reports of the Jackson Company and the Pearce Company: Jackson Pear

ce Cash flow from operating activities $500,000 $1,500,000 Cash investment in property & equipment 150,000 480,0001. Calculate the free cash flow for each company.2. Which firm has better cash flow health?Jackson /Pearce
Business
1 answer:
zloy xaker [14]4 years ago
3 0

Answer:

1. Jackson = $350,000 and Pearce = $1,020,000

2. Pearce

Explanation:

The formula to compute the free cash flow is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure

But for this question, the formula would be

= Cash flow from operating activities - Cash investment in property & equipment

1. For Jackson, it would be

= $500,000 - $150,000

= $350,000

For Pearce, it would be

= $1,500,000 - $480,000

= $1,020,000

2. If we see and compare the free cash flow, the Pearce has better cash flow due to the high cash flow from operating activities

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An advantage of the matrix organization is that it: a.gives top management a useful vehicle for centralization. b.allows its emp
mrs_skeptik [129]

Answer:

The correct answer is letter "D": gives its employees opportunities to learn new skills.

Explanation:

The matrix organization is an approach implemented by companies having more than one production process in place at the same time. There are no fixed managerial structures with this organizational model but there is a flexible hierarchy with two types of managers: <em>the functional manager and the project manager</em>. Both managers switch roles as necessary.

Resources are shared among all departments with the matrix organization reducing costs and increasing efficiency. <em>Lines of communication between departments are flexible and open allowing employees to learn skills needed for other units.</em>

4 0
3 years ago
U.S. federal government expenditures are comprised of purchases of goods and services​ (defense spending plus spending on all​ d
Afina-wow [57]

Answer:

True

Explanation:

Money spent by the government into the economy for welfare of the household

5 0
4 years ago
The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:
Drupady [299]

Answer:

The answer is B.

Explanation:

Balanced scorecard is one of the management tools to measure performance. It has four important metrics:

1. Financial

2. Customer

3. Internal Process

4. Learning and Growth

Each of these four has their different parameters to be considered to reveal whether a firm is achieving his objectives or not.

7 0
3 years ago
The Sedgwick Company estimates sales of a new product at 5,000 units and $3.00 per unit. Management feels the sales quantity is
Soloha48 [4]

Answer:

B) $12,825

Explanation:

In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.

The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.

To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.

Now, we take our worst case scenario for amount of units and price:

4,500 units x $2.85 = $12,825

$12,825 is the total dollar amount for the worst case scenario of this product.

5 0
3 years ago
Tony's Market recorded the following events involving a recent purchase of inventory:Received goods for $40,000, terms 2/10, n/3
pantera1 [17]

Answer:

balance of 38,616 debit

Explanation:

     Inventory

Debits    Credits

40,000(A)

              800(B)

   200(C)

              784(D)

38616

(A) the recieved goods increase the inventory balance

(B) when returning the inventory decrease

(C) the shipment cost are necessary to get the ivnentory so are capitalized

(D) the discount decrease both, the cost of inventory and the cash disbursements.

adjusted invoice nominal:

40,000- 800 = 39,200

the commercial terms state a 2% discount which the company received:

39,200 x 0.02 = 784

3 0
4 years ago
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