1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
3 years ago
8

You are purchasing an equipment for $ 200,000 for your new store. Assume the store has no other expenses or revenues other than

those associated with this project. You are going to purchase an additional $ 12,500 of inventory for production with the new equipment and set up a cash account with a $ 2,000 balance. The inventory purchase will result in an account payable of $ 4,500. The firm's tax rate is 20%. What is the net cash flow at time zero?
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer:

Negative cash balance of $210,000.

Explanation:

Given that,

cost of equipment = $200,000

Inventory purchased = $12,500

Cash balance = $2,000

Accounts payable = $4,500

Net cash flow at time zero:

= (cost of equipment) + (Increase in working capital)

= ($200,000) + (Inventory purchased + cash balance - Accounts payable)

= ($200,000) + ($12,500 + $2,000 - $4,500)

= ($200,000) + ($10,000)

= ($210,000)

Note: Negative values are in the parenthesis.  

You might be interested in
Would you recommend that Apple raise or lower its price for the iWatch to increase​ revenue?
melisa1 [442]

I would recommend it lower its price.

Explanation:

iWatch is not a product a lot of people wish for and it doesn't compliment the life of users enough to be expensive to buy. When it is expensive sales will reduce which would make sales revenue reduce but if the price is low a lot of people will patronize the product thus increase revenue.

#learnwithbrainly

6 0
3 years ago
At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized th
mestny [16]

Answer: The R part which stands for RARENESS/RARITY.

Explanation: The VRIO analysis is an acronym for Value, Rareness, Imitability, Organization.

This analysis is used in the evaluation of a business resources and factors that places it above their competition.

The rareness/rarity begs to question if the resource used in business are in the hands of a few.

In this question, Rohan was looking to expand his business by adding a pick-up service but by asking the rareness question, he discovered that the competitive advantage is in the hands of another business Tow-It-Now Inc.

7 0
3 years ago
Using the percentage minus−ofminus−sales method, the estimated total uncollectible accounts are​ $6,622. The Allowance for Uncol
Arturiano [62]

Answer:

C. $3,687.

Explanation:

amount of the adjusting entry for Uncollectibleminus−Accounts Expense​

= $6,622 - $2,935

= $3,687

Therefore, The amount of the adjusting entry for Uncollectibleminus−Accounts Expense​ is $3,687.

4 0
3 years ago
The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 11% bonds having a face amount of $9
kompoz [17]

Answer:

Bonds Payable $91,200,000

Loss on early extinguishment $6,024,000

    To Cash $93,024,000   ($91.2 million × 102%)

    To  Discount $4,200,000

(Being the redemption of the bond is recorded)

Explanation:

The journal entry is shown below:

Bonds Payable $91,200,000

Loss on early extinguishment $6,024,000

    To Cash $93,024,000   ($91.2 million × 102%)

    To  Discount $4,200,000

(Being the redemption of the bond is recorded)

For recording this journal entry we debited the bond payable as it decrease the liability moreover the cash is also decreased so it is credited and the discount is also credited and the remaining balance is debited to the loss

4 0
3 years ago
In a market system: A. a firm's owners are largely shielded from risk because they can walk away from the business at any time.
Karo-lina-s [1.5K]

Answer:

The correct answer is option B.

Explanation:

In a market system, the suppliers and employees are generally shielded from risk. The stockholders and owners of the business are most exposed to risk.

The employees will get their salaries which are fixed and the suppliers will get payments for their supplies. The profits of business owners and stockholders may fluctuate so they are exposed to risk.

The employees and suppliers do not get to share profits but they are shielded from risks.

7 0
3 years ago
Other questions:
  • Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 29,000 $ 31,
    12·1 answer
  • Jeff, the owner of the toy box (a toy store), has chosen his products carefully. they are all handmade of wood; none are cheap g
    9·1 answer
  • Corporate structure may be defined as
    14·1 answer
  • December 2017, Becker Corp. learned of a favorable judgement of 1.5 million relating to litigation involving a competitor. The c
    5·1 answer
  • Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A
    8·1 answer
  • Determine which statement about the absolute value of the price elasticity of demand is correct. The price elasticity of demand
    11·1 answer
  • If sales are $400,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage
    6·1 answer
  • Manero Company included the following information in its annual report: 20X3 20X2 20X1 Sales$178,400 $162,500 $155,500 Cost of g
    6·1 answer
  • Samantha is a single mother raising two young children. In 2015, she was let go from her assembly line job at the car plant wher
    12·1 answer
  • The market price in a perfectly competitive market is $11, and 1,250 units are bought and sold. Assume the market becomes monopo
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!