Answer:
a) yes
b) no
c) yes
d) no
Explanation:
a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow
b) this is the opposite as (a) here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand
c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.
If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.
d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.
Answer:
- Federal Income tax ⇒ $80
- FICA ⇒ $125.46
- State income tax ⇒ $52.97
- Local deduction - Clark County Income tax ⇒ $29.52
Explanation:
Brent gets paid semi-monthly so his pay per period is:
= 39,360 / (12 months *2)
= $1,640
Based on the table therefore, his federal tax is:
= $80
This figure is based on the intersection between income of $1,640 and 3 withholding allowances.
FICA tax rate is 7.65% so his FICA tax is:
= 1,640 * 7.65%
= $125.46
State income tax = $52.97
Local deduction - Clark County Income tax = $29.52
Total deductions:
= Federal tax + FICA + State income tax + Clark County income tax
= 80 + 125.46 + 52.97 + 29.52
= $287.95
Part a) The Cob Douglas production function is given as:
To show that this function is homogeneous with degree 3, we introduce be a parameter, t.
Using properties of exponents, we on tinder:
This implies that:
Simplify the exponent of t to get;
Hence the function is homogeneous with degree, 3
Part b) To verify Euler's Theorem, we must show that:
Verifying from the left:
Q•E•D
The receivables turnover ratio is an
activity ratio computing how proficiently a firm uses its assets.
Receivables turnover ratio can be calculated by:
net value of credit sales during a given period divided by the average
accounts receivables.
Receivables turnover = sales / receivable
= 4,515,830 / 336,500
= 13.42
Days’ sales in receivables = 365 days/ receivable turnover
= 365 / 13.42
= 27.20
The average collection period is 27.20 days.
