Answer:
The correct answer is option D.
Explanation:
The price of a 12 ounce can of CheapFizz is 75 cents.
After a deal with State U, CheapFizz gets exclusive rights to sell soft drink on the campus.
This makes CheapFizz a monopoly firm.
A monopoly firm is a price maker and produces at the point where the marginal cost is equal to marginal revenue. At this point the output level is lower than socially optimal and the price level is higher than socially optimal.
This means that the price of CheapFizz cans will be more than 75 cents after the deal.
In order to calculate cash flows we must before adding the net cash from investment and financing activities to determine the company's net cash rise or reduction for that time period, the cash outflows and inflows are deducted to determine the net cash flow from operational operations.
Operating activities' net cash flow: $337,500
$700,000 in earnings before income taxes.
Vendor payments in cash: (525,000)
Customer cash taken in: $1,500,000
<h3><u>How do you figure out the cash that operating activities provide?</u></h3>
Flow of Cash from Operations
Net Income plus Non-Cash Items plus Changes in Working Capital equals Cash Flow from Operations.
- Step 1: Take the net income from the income statement to begin calculating operational cash flow.
- Add back all non-cash items in step two.
- Adjust for variations in working capital in step three.
To Learn more about Statement of Cash flows, click the links,
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<span>Firms should seek to continually develop new core competencies because all core competencies have limited life spans.
true</span>
Answer:
The final amount in Cash is $9,034
Explanation:
1.
As cash is received, the cash balance is increased by $10, and account receivables are decreased by $10.
2.
As cash is paid for the purchase the cash balance is decreased by $16 and inventory value will increase by $16.
3.
As the sale is made for cash, the cash balance is increased by $40, and the inventory balance is decreased by the same value.
Cash balance = $9,000 + $10 - $16 + $40 = $9,034
The working is attached with this answer please find it.
