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Mazyrski [523]
3 years ago
14

Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of dep

reciation. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow
Business
1 answer:
klemol [59]3 years ago
7 0

Answer:

net income exceeded the free cash flows by $550 million

Explanation:

net income = ($8,250 - $5,750 - $1,000 - $160) x (1 - 35%) = $871 million

net cash flows:

operating activities = $871 + $1,000 - $300 = $1,571

investing activities = ($1,250)

net cash increase during the year = $321 million

net income exceeded the free cash flows by $871 - $321 = $550 million

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What does the reset() command do?
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<span>This command resets the Winsock catalog to the default configuration. This can be useful if a malformed LSP is installed that results in loss of network connectivity. While use of this command can restore network connectivity, it should be used with care because any previously-installed LSPs will need to be re-installed. </span>
3 0
3 years ago
David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either o
Nesterboy [21]

Answer:

Too little money                          

Explanation:

In the given case, David wanted to have all required resources and he also had complete knowledge of it. However he could not get them properly due to his budget constraints which lead to shut down of his business.

This case clearly depicts the problem of too little money as the risk of failure was not mentioned as such. Also the business David was willing to open was not relate to any chemical or defense industry so there was not much regulatory burden.

8 0
3 years ago
The price elasticity of demand for a good is likely to be less elastic​ __________.
mariarad [96]

Answer:

if a change in the price of the good brings about a much smaller change in the quantity demanded for the good.

Explanation:

<em>The price elasticity of demand is a measure of the change in the demand for a good in relation to a change in the price of the same good. </em>Mathematically, the price elasticity of demand for a product is represented as:

Price elasticity = change in the quantity demanded/change in price

The value of price elasticity of demand ranges from 0 to infinity. The price elasticity of demand is

  • relatively inelastic when the value is less than 1,
  • unitary elastic when it is equal to 1,
  • relatively elastic when it is greater than 1,
  • perfectly inelastic when it is equal to 0, and
  • perfectly elastic when the value is infinity.

<u>Less elastic price elasticity of demand is equivalent to relatively inelastic price elasticity. This thus means that the price elasticity of demand is less than 1; a percentage change in the price of the good brings about a disproportionately smaller percentage change in the quantity demanded for the good.</u>

4 0
3 years ago
has excess cash of​ $15,000 at the end of the harvesting season. will need this cash in four months for normal operations. Requi
kolezko [41]

Answer:

1)

Some of the major reasons why Garden Haven might to choose to either  invest in debt or equity securities are as follows;

  • They want to generate earnings. It is better to earn money from excess cash than keep it idle.
  • They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash .
  • To meet cyclical cash needs.
  • They may have policies as regard to quantum of cash that can be kept .

2)

In terms of classification, Garden Haven's investment falls in short term investments.

Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.

8 0
3 years ago
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