Answer:
$443,400
Explanation:
The computation of cash flows from investing activities is shown below:-
For computing the cash flows from investing activities we need to find out first the Sale of equipment
= $84,000 - $34,000
= $50,000
Net cash paid by investing activities = Sale of equipment - Purchase of new truck + Sale of land + Sale of Long-term investments
= $50,000 - $109,000 + $410,000 + $94,200
= $443,400
Answer:
It will be more profitable to vertically integrate because the company will be able to further reduce its costs.
Explanation:
Profit = Sales - Cost
The lower the cost, the higher the profit (if sales remains the same).
A Vertical integration strategy requires a company to <u>own or control its suppliers (backward integration) or its distributors or retailers (forward integration)</u>, and therefore, gain more control over its value chain.
<em>If the U.S. automobile company chooses to vertically integrate into the car retailing business in countries where it sells most of its cars, then it would cut out certain costs, such as the cost of contracting with independent car dealers, which would further improve profitability.</em>
Also, such forward integration into retailing means the company will develop processes along its value chain that will increase the efficiency of its operations.
Answer:
$11,400
Explanation:
Income Statement
For the year ended December 31, 2019
Particulars Amount
<u>Revenues</u>
Service revenue $37,900
<u>Expense</u>
Salaries & wages expense $16,000
Insurance expense $2,900
Rent expense $3,400
Supplies expense $2,500
Depreciation expense <u>$1,700</u>
Total expenses <u>$26,500</u>
Net income (loss) <u>$11,400</u>
Answer:
the approval was already anticipated by the market
Explanation:
This abnormal return of 0% suggests that the approval was already anticipated by the market. Meaning that the price of the Pharma company's stock had already been affected by the speculation previously and when the FDA made the announcement investors had already made their move in the market with regards to Pharma's stock. Thus causing no further move and a return of 0% to occur.
