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zaharov [31]
3 years ago
6

For each of the following cash flows amounts ($ millions), identify whether the company is in the introduction, growth, maturity

, or decline stage of its life cycle.
Company Operating Investing Financing
Cash Flow Cash Flow Cash Flow
a $72 $2,007 $(813)
b 7 (528) 878
c (2,578) (4,198) 7,461
d (407) 5,583 (2,404)
e 2,283 (3,449) 1,909
f 6,336 3,222 (2,006)
g (403) (1,726) (3,516)
h 3,704 (2,438) 1,332
Business
1 answer:
vazorg [7]3 years ago
5 0

Answer:

Operating Investing Financing                   Identification

a $72            $2,007    $(813)                Decline stage of its life cycle

b   7                 (528)       878                Growth stage of its life cycle

c (2,578)         (4,198)    7,461                Introduction state of its life cycle

d (407)            5,583    (2,404)              Decline stage of its life cycle

e 2,283          (3,449)    1,909                Growth stage of its life cycle

f 6,336            3,222    (2,006)              Maturity stage of its life cycle

g (403)           (1,726)     (3,516)               Introduction stage of its life cycle

h 3,704          (2,438)      1,332              Growth stage of its life cycle

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During the introductory phase, cash from operation and investing maybe expected to be negative and cash from financing may be positive.

During the Growth phase, a company will spend lesser inventory on accrual basis in comparison to its purchase on cash basis.

During the Maturity phase, cash from operations is expected to be positive and also might be exceeding investing requirement.

During the decline phase, cash from operations and investment would continue to be positive while cash from financing would be negative.

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6 0
3 years ago
Let's assume that a firm produces 40 products. Its total weekly cost (TC) at this output is $1200. This includes TVC and TFC. We
ikadub [295]

Answer:

$15

Explanation:

The computation of the average fixed cost is shown below:

As we know that

Average fixed cost is

= Total fixed cost ÷ Quantity

where,

Total fixed cost is

= Total cost - total variable cost

= $1,200 - $200 × 3

= $1,200 - $600

= $600

And the quantity is 40 products

So, the average fixed cost is

= $600 ÷ 40

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3 0
3 years ago
A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost.
Flauer [41]

Answer

D) compared to the EOQ, the maximum inventory would be approx 30% lower.

Explanation

EOQ = √(2*Co*D/Cc)

EPQ= √ (2*Co*D/(Cc*(1-x)))

x=D/P

D = demand rate

P =production rate

Co=ordering cost

Cc=holding cost

1) The production rate would be about double the usage rate.

hence, P = 2D

x=D/2D=0.5

EPQ= √ (2*Co*D/((1-0.5)*Cc))

EPQ= √ (2*Co*D/0.5Cc)

EPQ=√ (1/0.5)*EOQ

EPQ=√ (2)*EOQ

EPQ=1.41*EOQ

Hence, EPQ is around 40% larger than EOQ.

Ans.: c) EPQ will be approximately 40% larger than the EOQ.

2) Compared to the EOQ, the maximum inventory would be

maximum inventory = Q

EPQ = 1.41 EOQ

EPQ = 1.41*Q

Q=EPQ/1.41

Q=0.71 EPQ

Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.

4 0
3 years ago
Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred
masya89 [10]

Answer:

The answer is given below;

Explanation:

 Preference stocks  950*50    Dr.$47,500

 Paid in capital in excess of par-preference shares  Dr.$  13,300                                  

 (64-50)*950

  Common Stocks  1,900*10        Cr.$19,000

  Paid in capital in excess of par-common stocks    Cr.$41,800

   (64*950)-(1900*10)                                        

8 0
3 years ago
On July 1, Raney Corporation purchases 690 shares of its $4 par value common stock for the treasury at a cash price of $9 per sh
-BARSIC- [3]

Answer:

Date      Particular                                       Dr.        Cr.

Jul-1       Treasury stock                          $6,210

             Cash                                                         $6,210

Sep-1     Cash                                          $4,840

             Treasury stock                                         $3,960

             Paid-in capital - Treasury stock              $880

Explanation:

Treasury stocks are the company's own shares which is repurchased by the company. It is recorded in treasury shares account which is an contra equity account. I can be reissued or cancelled by the company.

Purchase of Treasury Stock

Treasury Stock = 690 x $9 = $6,210

Sales of Treasury Stock

Cash Receipt = 440 x $11 = $3,300

Treasury Stock = 440 x $9 = $3,960

Paid-in capital - Treasury stock = 440 x $2 = $880

5 0
3 years ago
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