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3 years ago

Four (4) ways to harvest an investment in a business.

Business

1 answer:

Mazyrski [523]3 years ago

7 0

Answer:

Harvesting an investment in a business

Four ways to harvest:

a. Outright sale of a company or the investment

b. Issue of Initial Public Offering (IPO)

c. Gradual elimination of a product, especially after the cow stage.

d. Withdrawal of additional investment and earning of profits.

Explanation:

These strategies can be employed by a business to reap the fruits from an investment. The purpose for the investment and the risk profile of the investor determines the actual strategy or combination of strategies used by the investor.

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Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect

r-ruslan [8.4K]

Answer:

VPI Co.

Cashflow statement for the year ended December 31

Operating activities

Net income 59,000

Add Depreciation 7600

Less gain from sale of machinery (2900)

Increase in Inventory (8,600)

Increase in accounts payable 3,300

Decrease in accounts receivable 6,600

Cash flow from Operating activities 65,000

Investing activities

Cash received from sale of machinery 11,300

Financing activities

Cash paid for dividends (4,600)

Net cashflow 71,700

Cash balance at prior year-end 43,600

Cash balance at current year-end 114,300

Explanation:

The indirect method of cashflow statements starts with the cashflows from the operating activities to Financing and then investing activities.

An increase in an asset other than cash is a decrease in cash and vice versa. An increase in a liability is an increase in cash and vice versa. We add or subtract none cash items like depreciation, gain on asset disposal etc.

7 0

2 years ago

Walker's has a price-earnings (PE) ratio of 16 compared to its industry average of 17. Generally speaking, which one of these st

Snowcat [4.5K]

Answer:

Walker's did not outperform because it PE Ratio is close to Industry average. Industry's data is based on average which means some of the firms may have very high PE ratio and some might have quite lower than the average. It is not obvious that the Walker's outperformed or under-performed. Complete data about the individual firms might make us able to compare the performance of Walker's. Apparently its performance is up to the mark as its PE ratio is very close to Industry average.

Explanation:

PE Ratio is a term which show the investors confidence on the firm. It shows that how much price investors are willing to pay against each unit of earning.

4 0

3 years ago

Which performance management technique initially involves the identification of a large number of critical incidents, followed b

FrozenT [24]

Answer:

A. Behaviorally Anchored Rating Scale

Explanation:

The behaviorally anchored rating scales, called BARS for short, indicates both qualitative and quantitative data to the employees appraisal process. BARS uses behavioural movements as reference rather than using the traditional generic descriptors. It identifies critical behaviours of a large group, classify these behaviors into performance dimensions and then rank these behaviors into levels of performance.

8 0

3 years ago

Which of the following statements about the labor market is correct? A. The employment contract specifies the level of work effo

Rufina [12.5K]

Answer: (A.)The employment contract specifies the level of work effort required from a worker.

(C.) The buyer in the labor market is a price setter.

Explanation:

In a economy the employment contract specifies the level of work effort required from a worker. i.e. while hiring an employee for a position in a organisation, It is required to completely specify the level of work effort required from that worker.

Also, Firms interact with individuals, employing them, discharging them and promoting or cutting wages and hours. The relationship between the forces of supply and demand influences the hours the worker works and their compensation.

6 0

3 years ago

Which of the following statements best describes accounting for a partnership?

svetlana [45]

Answer:

B. A partnership may use federal income tax rules to account for transactions in their journals and ledger accounts.

Explanation:

There is a lot of difference in accounting of normal partnership firms and that of non profit organisations.

Simply a partnership firm cannot be formed as a non profit entity.

A partnership can use any federal laws in compliance and do accounting entries in accordance with them.

The partnership equity section only contains partner's capital account as there are no retained earnings section.

Partnership's do not pay dividend, and if it does it is not limited to money.

7 0

3 years ago