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m_a_m_a [10]
3 years ago
11

6. Bronco Co. is a U.S.-based MNC that has subsidiaries in Spain and Germany. Both subsidiaries frequently remit their earnings

back to the parent company. The Spain subsidiary generated a net outflow of €5,000,000 this year, while the German subsidiary generated a net inflow of €4,500,000. What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.159.
Business
1 answer:
Hatshy [7]3 years ago
3 0

Answer:

Cash outflow of $579,500

Explanation:

Net cash flow is the sum of all cash inflow and outflows of the company.

In this question the company has cash outflow from Spain and inflow from Germany.

As per given data

Cash flow from Spain subsidiary = €5,000,000 outflow

Cash flow from German subsidiary = €4,500,000 inflow

Net cash flow to parent company = - €5,000,000 + €4,500,000

Net cash flow to parent company = - €500,000

The currency is converted using the exchange rate of $1.159 per euro.

Net cash Flow in U.S. dollars = - €500,000 x  $1.159 per euro

Net cash Flow in U.S. dollars = - $579,500

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Helga [31]

Answer:

The answer is Option D. 1.68 times

Explanation:

The formula for equity multiplier is:

Equity Multiplier = Total assets ÷ Total stockholder's equity

In 2017:

Total stockholder's equity = Common stock + Retained earnings

Total stockholder's equity = $2890 + $700 = $3590

Total assets = $6,015

Now, putting these values in the above formula, we get,

Equity multiplier = $6,015 ÷ $3,590 = 1.68 times

5 0
2 years ago
When managers make the most appropriate decision in light of what they believe to be the most desirable consequences for the com
ikadub [295]

Answer:

optimum

Explanation:

An optimum decision as defined in the question can be defined as the most appropriate decision taken by a manager in the light of what they to be the most desirable consequences for the company.

This simply means that when an event or occurrence takes place in a company, the managers have the responsibility to take the best decisions for the company. The best decision is therefore called the optimum decision; that is the highest level of  decision that solves the problem with the smallest of consequences.

Cheers.

4 0
3 years ago
Which of the following statements regarding budgets is true? a. Budgets are detailed forward-looking financial reports based on
Shkiper50 [21]

Answer:

a. Budgets are detailed forward-looking financial reports based on expected income and expenses.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

It is typically used by various organizations or companies due to the fact that, it's tied directly to the strategy and tactics of a company on an annual basis. Also, it is used to set a budget for marketing efforts while anticipating on informations about the company.

3 0
2 years ago
What is the difference between classical economics and behavioral economics?
Nostrana [21]

3. Classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.

A major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, Behavioral economics assumes that people are irrational players.

7 0
3 years ago
The PTA is holding a raffle. The prize is a camera worth $200. Each raffle ticket costs $5. One hundred tickets are sold and a w
Illusion [34]

Expected value of the purchase of a ticket would be $3.00.

<u>Explanation</u>:

Given,  

Raffle ticket costs = $5.00.  

The prize = $200.  

One hundred tickets are sold = 100 × 5  

                                                  = $500.00  

champ is drawn and given the prize of worth $200.  

                           $500 - $200 = $300  

So the normal estimation of the bought ticket = $3.00  

The expected estimation of the acquisition of a ticket would be $3.00.

   

5 0
3 years ago
Read 2 more answers
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