PLEASE HELP, ILL GIVE BRAINLIEST IF IT'S RIGHT. 35 POINTS! the answer isnt C!

Debt is generally the least expensive source of capital. This is primarily due to ________. debts fixed interest payments and fi

drek231 [11]

Answer: Debt being less risky than equity and interest payments being tax deductible.

Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.

Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense while computing taxable income .

6 0

3 years ago

Priya Rahavy, M.D., is a general practitioner whose offices are located in the Lake Forest Professional Building. In the past, D

mariarad [96]

Priya Rahavy, M.D., is a general practitioner whose offices are located in the Lake Forest Professional Building. In the past, Dr. Rahavy has operated her practice with a nurse, a receptionist/secretary, and a part-time bookkeeper. Dr. Rahavy, like many small-town physicians, has billed her patients and their insurance companies from her own office. The part-time bookkeeper, who works 15 hours per week. is employed exclusively for this purpose.
North Avenue Physician's Service Center has offered to take over all of Dr. Rahavy's billings and collections for an annual fee of $24,000. If Dr. Rahavy accepts this offer, she will no longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount to $20 per hour, and the bookkeeper works 50 weeks per year. With all the billings and collections done elsewhere, Dr. Rahavy will have three additional hours available per week to see patients. She sees an average Of four patients per hour at an average fee of $30 per visit. Dr. Rahavy's practice is expanding, and new patients often have to wait several weeks for an appointment. She has resisted expanding her office hours or working more than 50 weeks per year. Finally, if Dr. Rahavy signs on with the center, she will no longer need to rent a records storage facility for $200 per month.

a. Conduct a relevant cost analysis to determine if it is profitable to outsource the bookkeeping.

8 0

3 years ago

The typical risks of a cost leadership strategy include: a. the inability to balance high differentiation and low price. b. exce

vichka [17]

Answer: The correct answer is "b. production and distribution processes becoming obsolete.".

Explanation: The typical risks of a cost leadership strategy include production and distribution processes becoming obsolete because to maintain cost leadership, the production and distribution processes must always be in constant observation to modify if necessary in order to maintain competitiveness and not remain stuck attached to a production and distribution model that as a consequence of innovations in the competition may become obsolete.

8 0

3 years ago

Read 2 more answers

Shamrock Company had the following information available at the end of 2014.

mars1129 [50]

Answer and Explanation:

The preparation is presented below:

Shamrock Company

Statement of Cash Flows

For the Year Ended December 31, 2014

(Direct Method)

Cash flows from operating activities

Cash receipts:

Cash received from customers $1,153,660

Dividends received $2,500

Total cash receipts $1,156,160

Cash payments:

Cash paid to suppliers $762,690

Cash paid for operating expenses $225,230

Taxes paid $39,920

Interest paid $61,776

Total cash payments -$1,089,616

Net cash provided by operating activities $66,544

Cash flows from investing activities

Sale of short-term investments $14,080

Sale of land $55,590

Purchase of equipment -$124,570

Net cash used by investing activities -$54,900

Cash flows from financing activities

Proceeds from issuance of common stock $29,526

Principal payment on long-term debt -$9,580

Dividends paid -$23,890

Net cash used by financing activities -$3,944

Net increase in cash $7,700

Cash, January 1, 2014 $3,060

Cash, December 31, 2014 $10,760

Working notes

Sales Revenue $1,160,450

– Increase in Accounts Receivable $6,790

Cash received from customers $1,153,660

Cost of Goods Sold $748,980

+ Increase in Inventory $5,020

+ Decrease in Accounts Payable $8,690

Cash paid to suppliers $762,690

Operating Expenses $275,640

– Depreciation/Amortization Expense -$39,330

– Decrease in Prepaid Rent -$110,80

+ Increase in Prepaid Insurance $1,640

+ Increase in Office Supplies $520

– Increase in Wages Payable -$2,160

Cash paid for Operating Expenses $225,230

Income tax expense $40,350

Less:Increase in income taxes payable -$430

Taxes paid $39,920

Interest Expense $52,270

+ Decrease in Bond Premium $9,506

Interest paid $61,776

Reconciliation of Net Income to Net Cash Provided by Operating Activities:

Net income $58,420

Adjustments made to reconcile net income to net cash provided by operating activities:

Add: Depreciation expense $39,330

Add: Decrease in prepaid rent $110,80

Add: Increase in income taxes payable $430

Add: Increase in wages payable $2,160

Less: Increase in accounts receivable -$6,790

Less: Increase in inventory -$5,020

Less: Increase in prepaid insurance -$1,640

Less: Increase in office supplies -$520

Less: Decrease in accounts payable -$8,690

Less: Gain on sale of land -$8,320

Less: Gain on sale of short-term investments -$4,390

Less: Amortization of bond premium -$9,506

Total adjustments $8,124

Net cash provided by operating activities $66,544

8 0

3 years ago

Keisha Tombert, the bookkeeper for Vaughn Consulting, a political consulting firm, has recently completed a managerial accountin

Serjik [45]

Answer:

$23,290.00

Explanation:

Preparation forn a schedule of cost of contract services performed

Supplies used on consulting contracts 1,940.00

Salaries of professionals working on contract 16,400.00

Service Overhead:

Janitorial services for professional offices 800.00

Insurance on contract operations 880.00

Utilities for contract operations 2,360.00

Depreciation on equipment used for contract work 910.00

Total service overhead 4,950.00

(800.00+880.00+2,360.00+910.00)

Cost of Contract Services Provided 23,290.00

(1,940.00+16,400.00+4,950.00)

Administrative expenses:

Supplies used in administrative offices 1,700.00

Depreciation on administrative office equipment 1,450.00

Salaries of administrative office personnel 8,690.00

Janitorial services for administrative offices 580.00

Insurance on administrative operations 930.00

Utilities for administrative offices 1,930.00

TOTAL 15,280

Therefore the schedule of cost of contract services performed will be 23,290.00

4 0

3 years ago