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3 years ago

What are the advantages of collecting payment at the time of service?

1 answer:

8 0

Your business can make a profit but still not have enough cash on hand if you don’t collect payment at the time of service. At one given time, you may not have enough cash to pay your bills or payroll, Collecting payment at the time of service will ensure that you have enough cash coming in when you need to pay cash out.

The best example is hospitals. These days, insured patients are no longer allowed to walk out of the hospital without paying because of high administrative costs and low collection rates.

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Blair Madison Co. issues $2.8 million of new stock and pays $560,000 in cash dividends during the year. In addition, the company

frutty [35]

Answer:

The net cash flow provided by financing activities is: $840,000

Explanation:

Prepare the Cash flow from Financing Activities Section as follows :

Cash flow from Financing Activities

Proceeds from Issue of Shares $2,800,000

Dividends Paid ($560,000)

New Bond Issue $4,200,000

Bond Paid off ($5,600,000)

Net Cash flow from Financing Activities $840,000

Note that the Bonds bought of another company constitutes investment activities of Blair Madison Co. thus excluded from Cash Flow from Financing Activities Calculation.

4 0

3 years ago

What are Pros and cons of perfect competition?

Anit [1.1K]

Explanation:

Perfect competition - A perfectly competition firm is one that is marked by a huge number of seller / producers as well as a large number of buyers . These firms produce large amounts of homogeneovs products that are sold at a price decided in the market by market force .

4 0

3 years ago

Read 2 more answers

By the time a child is two years old, they have _____synaptic connections in their brain than an adult.

Mrac [35]

the answer is A: more

7 0

3 years ago

Stubbs Company uses the perpetual inventory method. On January 1, Year 1, Stubbs purchased 400 units of inventory that cost $8.0

Sonja [21]

Answer:

A. USD 5,180/-

Explanation:

In the actual method of inventory valuation, the inventory reaming and the COGS (Cost Of Goods Sold) is measured after each purchase or sale of a transaction. So the COGS and the remaining value of the inventory is known all the time.

Formula:

Gross margin is equal to Sales minus COGS

3 0

3 years ago

Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100

loris [4]

Answer:

Amos McCoy is earning an economic loss. His implicit cost ($200) is greater than his accounting profit ($100)

Explanation:

Economic profit it accounting profit less implicit cost.

Accounting profit is total revenue less total cost or explicit cost.

Implicit costs are opportunity costs.

Economic profit = $100 - $200 = $-100

Amos McCoy Is making an economic loss of $-100

I hope my answer helps you.

3 0

3 years ago