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3 years ago

Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.

Business

1 answer:

antiseptic1488 [7]3 years ago

4 0

Answer and Explanation:

The Preparation of Tiger’s statement of cash flows, using the indirect method is shown below:-

TIGER ENTERPRISES

Income Statement

For the Year Ended December 31, 2021

Particulars Amount

Cash flow from operating activities

Net income $1,452

Non cash adjustment effects

Depreciation expenses $280

Changes in operating assets and liabilities

Decrease in accounts receivable $100

Increase in inventory ($60)

Increase in prepaid insurance ($50)

Decrease in accounts payable ($80)

Decrease in accrued liabilities ($120)

Increase in income tax payable $30 $100

Net cash flow from operating activities $1,552

Cash flow from investing activities

Equipment purchased ($500)

Net cash flow investing activities ($500)

Cash flow from financing activities

Issuance of notes payable $240

Issuance of common stock $140

Payment of dividends ($1,292)

Net cash flow from financing activities ($912)

Net increase in cash $140

Jan 1 Cash $240

Dec 32 Cash $380

Working note:-

Retained earning Opening balance $480

Add: Net income $1,452

Less: Retained earning closing balance $640

Paid dividend $1,292

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Projects A and B are mutually exclusive and have an initial cost of $82,000 each. Project A provides cash inflows of $34,000 a y

MrRissso [65]

Answer:

If discount rate is 11.7% Project B should be accepted.

If discount rate is 13.5% both projects should be rejected

Explanation:

If the Net present value of Project A is higher than that of project B, we will accept project A and vice versa.

Under 11.7% Discount Rate

Net Present Value-Project A = -82000 + 34000 / 1.117 + 34000 / 1.117² + 34000 / 1.117³ = $85.099

Net Present Value-Project B = -82000 + 115000 / 1.117³ = $516.029

Project B should be accepted as it has a higher NPV.

Under 13.5% Discount Rate

Net present Value-Project A = -82000 + 34000 / 1.135 + 34000 / 1.135² + 34000 / 1.135³ = - $2397.49

Net Present Value-Project B = -82000 + 115000 / 1.135³ = - $3347.91

Both projects should be rejected as both have negative NPVs

7 0

4 years ago

Scranton Shipyards has $20 million in total investor-supplied operating capital, and its WACC is 10%. Scranton has the following

Setler [38]

Answer: $400,000

Explanation: Given the following :

Operating Income (EBIT) = $4,000,000

Weighted average cost of Capital (WACC) = 10% = 0.1

Operating capital = $20,000,000

Taxes = 40% = 0.4

Economic Value Added (EVA) is given by;

EBIT x (1-Tax) - (WACC x Operating capital)

$4,000,000 × (1-0.4) - (0.1 × 20,000,000)

$4,000,000 × (0.6) - (2,000,000)

$2400,000 - $2,000,000

=$400,000

6 0

3 years ago

Describe various ways that knowledge management systems could help firms with sales and marketing or with manufacturing and prod

german

Answer:

Please see explanation below.

Explanation:

Knowledge management system is a system that allows sales people have quick and right information about a company's value proposition without having to wait for feedback from team members or someone else in the company. An advantage of knowledge management system is the ability to train many employees remotely or places where they may be needed.

Various ways ways that knowledge management system could help sales and marketing.

•Getting sales people on the same page. A company's sales team should understand the value propositions of their firm and how such values distinct them from the competitors. Each sales member should be acquitted with the knowledge management system which provides an easily accessible place for the company's value proposition. It also means that the values should readily be known and understood by everyone and are able to apply them according to how situations demands.

• Allowing to refine and deliver a better training process. This explain that knowledge management system can assist in terms of tracking questions frequently asked by sales people , contents mostly assessed by them and activities often carried out by top sales person that bring about the best result. All the information gathered including possible answers and training contents can then be loaded into the knowledge management system to help train new hires.

• Helping to track valuable insights and information. Prospects and customers usually give useful feed back which can assist a sales team and sales representative handles future sales opportunities. It is not enough capturing these information on the knowledge management system, they should be properly organized and accessible for other team members to benefit .

• Making it easier for sales and marketing to help each other. An important part of marketing team's task is to understand the challenges faced by the target audience and the questions prospects commonly ask so as to create relevant contents for them and also upload them on the knowledge management system portal. Such information should be often accessed by the team and then take better advantage of it.

Other areas knowledge management system could help sales and marketing are assistance with sales trend, high level decisions with regards to product orders, price negotiations . etc

7 0

3 years ago

The study of economics:

DochEvi [55]

Helpful to businesses, but not particularly helpful in making personal buying decisions.

6 0

3 years ago

Relevant costs for target costing include:

Firdavs [7]

Answer:

Correct answer is D. All future costs, both variable and fixed

Explanation:

In target costing, all future costs both variable and fixed costs are relevant. This is for us to clearly determine the desired profit that the company wants to attain. The process of costing is to determine all future costs that the company will possibly incur in the production and add it to the desired profit margin to know the unit sales price of the product.

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3 years ago