Answer:
Income statements and or Cash flow statements.
Explanation:
Income statement and Cash flow statements are required.
Income Statement will give us insight about our costs as we maybe recording sales but if the costs and expenses are too high we are unlikely to be making enough gross profits to be able to pay bills.
Cash flow statements are required as sales may be credit and thus reducing working capital for the company, although they may be making profits but if the debts are uncollected they are unlikely to have cash available to be able to make payments.
Hope that helps.
Answer:
The situation is called insolvency. bank is unable to pay to depositor.
Explanation:
The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt. The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.
Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.
Answer: The answer is $ 1266.
Explanation: If the commission rate is 6%
The commission is = 105500. 0.06 = 6330
40% is for the listing broker = 6330. 0.4 = 2532
And half is for his salesperson = 2532/2 = 1266.
The listing salesperson receive from this sale $ 1266.
Answer:
Boeing sells an airplane to the Air Force is purchases by the Government
Boeing sells an airplane to the American Airlines is Investment
Boeing sells an airplane to the Air France is net exports
Boeing sells an airplane to the Amelia Earhart is Consumption
Boeing builds an airplane to be sold next year is an Investment
Explanation:
Purchases by Government represent goods and services bought by Federal,State or Local tier of Government and Air Force is part of the Government
Investment refers to goods bought in order to produce other goods or services,since American Airlines would convey passengers in the airplane,no doubt it is an investment.
Net export exports relate to worth of goods and services provided to other nations less the value of such goods and services the foreign nations provided to ours.Since the sale to a foreign company,it is ultimately a net exports taking import as zero.
Consumption refers to sale of goods and services to private individuals intended for private use.
Building up stock for sale next year is an investment in inventory.
Answer:
Payback Period = 4 Years
Net Present value = $15692
Internal Rate of Return = 17.82%
Modified Internal Rate of Return = 14.20%
Explanation:
Payback Period = (Initial Investment / Net Cash inflows)
Payback Period = $61500/15000 = 4 Years
Net Present value using PVIF table value at 11% over the period and discount them given cash flows gives us discounted cash flows.
Year CF PVIF 11%,n Discounted CF
0 -61500 1.000 (61,500)
1 15000 0.901 13,514
2 15000 0.812 12,174
3 15000 0.731 10,968
4 15000 0.659 9,881
5 15000 0.593 8,902
6 15000 0.535 8,020
7 15000 0.482 7,225
8 15000 0.434 6,509
Summing up the discounted Cash flows gives us the Net Present value of $15692
Internal Rate of Return:
Using Excel Function IRR @ 17.82% applying it on cash flows gives the rate where Present value of Cash flows is Zero.
Modified Internal Rate of Return:
Modified internal rate of return is at the level of 14.20% as it lower than IRR because it assume positive cash flows invested at cost of capital.
