Explanation:
think the answer is E all of the Above
Answer:
Explanation:
1. Incremental cash flow is the potential increase or decrease in cash flow from an investment this could be positive or negative.
In this case in expanding a product line or launching a new project incremental cash flow could be.
a. Positive: this is the increase in cash flow due to the product launch and expansion.
b. Negative: this is the decrease in cash flow due to the product launch and expansion
2. a. Payback:
profit gotten from an initial investment equal to what was initially invested
b. Net Present Value(NPV)
This is the difference between present value of income and present value of expenditure over a period of time.
c. Internal Rate of Return(IRR)
Measure the rates of returns for an investment excluding external factors such as risk free rates, inflation e.t.c
d. Profitability Index Method (PIM)
this is the lowest acceptable measures of the rates of returns for an investment excluding external factors such as risk free rates,inflation e.t.c
Answer:
False
Explanation:
As a company's sales level increases, its current assets will increase, e.g. cash, inventories, accounts receivables increase. generally, also the fixed assets increase, specially if the firm was previous producing at full capacity even before total sales increased. But as sales increase, not only do the company's assets increase, its current liabilities generally increase also, and its profits should increase. In this case, 60% of the company's profits are reinvested in the company, and the liabilities represent more than half of the total assets. Therefore, it is possible that the company needs external financing, but it is also possible that it doesn't. You cannot assume that the company will necessarily need external financing, because retained earnings and the increase in current liabilities might be enough to finance the company's growth in sales.
Answer:
<u><em>FALSE</em></u>
Explanation:
Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a<em> company's sales </em>by its <em>total assets.</em>
<em />
To increase sales, management should <em>continue</em> to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.
Answer:
$10,200
Explanation:
The computation of the deferred income tax expense or benefit is shown below:
Favorable temporary difference = $50,000
Less: Unfavorable temporary difference -$20,000
Net favorable temporary difference $30,000
We assume the tax rate is of 34%
So, the deferred tax expense is
= $30,000 × 34%
= $10,200
By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above
