Answer:
The answer is to assure funding for future assets.
The answer is because of lack of sufficient operating cash flow.
Explanation:
Companies with promising investments opportunity typically have valuable intangible assets whose value would decline sharply if the company would go into financial difficulty, its important for such company to maintain a financial flexibility that comes with a conservative capital structure to assure funding for future assets.
Poor cash flow is when the income cash flow is insufficient to meet the outgoing cash flow needs of a business and this can also lead to inability to raise additional equity force.
Answer:
$4,000
Explanation:
Given that,
Last year:
DVDs sold = 10
Selling price of each DVD = $20
DVD players sold = 5
Selling price of each DVD player = $100
This year:
DVDs sold = 150
Selling price of each DVD = $10
DVD players sold = 10
Selling price of each DVD player = $60
Real GDP:
= (No. of DVDs sold this year × Selling price of each DVD last year) + (No. of DVD players sold this year × Selling price of each DVD player last year)
= (150 × $20) + (10 × $100
)
= 3,000 + 1,000
= $4,000.
Answer:
The price of tee-time should be reduced by 6.67%.
Explanation:
The price elasticity of demand for tee times is –1.5.
The manager wants to increase the number of tee times sold by 10%.
The price elasticity of demand shows the change in quantity demanded due to a change in the price level. It is the ratio of the percentage change in quantity demanded and percentage change in price.
Price elasticity = 
- 1.5 = 
Answer:
<u>cost to be accounted for:</u>
beginning cost: 180,000
added cost 756,000
total cost <em> 936,000</em>
<u>cost accounted for:</u>
ending WIP 30,000 x 5.2 = 156,000
trasnsferred-out: 150,000 x 5.2 = 780,000
total cost accounted for <em> 936,000</em>
Explanation:
150,000 completed
50,000 at 60%
weighted average equivalent unit:
complete + percetage of completion ending WIP
150,000 + 50,000 x 60% = 180,000
Cost per unit:
936,000 / 180,000 = 5.2 dollar per unit
we should match the total cost pool with the ending WIP and trasnferred out units
Answer:
Ratio will be 0.92
So option (A) will be the correct option
Explanation:
We have given net cash flow from operating activities = $37570
So net operating cash flow = $37570
Current liabilities at the bugging of the year = $38400
Current liabilities at the end of the year = $43200
So average current liabilities 
We have to find the ratio of operating cash flow to current liabilities
So ratio will be 
So option (A) will be the correct option
