Answer:
C. Depreciation
Explanation:
The Indirect method reconciles the Operating income to the Operating Cash flow by adjusting the following items (i) Non -Cash Items previously added or deducted from Operating Profit and (ii) Changed in Working Capital items. From the given options, only depreciation is added back as it was previously deducted from Operating Income.
When a firm has flotation costs equal to 6.8 percent of the funding need, project analysts should increase the initial project cost by dividing that cost by (1-0.068). The flotation cost is the cost which emerge when a corporation gather its fund by issuing new securities. Underwriting fees, legal fees, registration fees are the common fees that will increase corporate's expense when they issue securities. Therefore, we can consider those fees as a flotation cost.
Answer:
I think the customer will get upset.
The customer will think the salesperson is not ready to attend to him.
Answer / Explanation:
First, we need to understand what variance analysis is. Variance analysis is the qualitative and quantitative measure of the difference between actual financial value and the budgeted financial value.
This helps us to properly monitor our rate of spending against our profit or loss margin. it also assist in proper fund management.
Now talking about how the company will utilize variance analysis, the company will utilize variance analysis in the aspect of fixed over head spending. In the sense that it will be used to measure manpower productivity against overhead spending. This will help us to proper affirm if the rate of manpower productivity equal fixed overhead spending. In the case where fixed overhead spending is more than man hour productivity ratio, then the company will be running at a loss. This is basically a way of measuring productivity performance of man power and also assets.
Answer:
$8 million
Explanation:
Weighted-average cost = [(4,000,000 × $22) + (2,000,000 × $25)] ÷ (4,000,000 + 2,000,000) = $23
Increase in paid-in capital - share repurchase per share = selling price —Weighted-average cost = $27 - $23 = $4
Amount of increase in paid-in capital—share repurchase = Number of treasury shares × $4 = 2 million × $4 = $8 million
Therefore, Cox’s paid-in capital - share repurchase will increase by $8 million.
