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:
Improved decision making.
Explanation:
The question has itself the answer, the sixth one is supposed to be the blank of the question
Answer:
d.$189,000 sale price
Explanation:
Investing activities: It records operations that include buying and selling long-term properties. The buying is a cash outflow whereas the sale is a cash inflow.
Since the equipment is sold this year for $189,000 that is to be reported in the investing activities under the cash flow statement. This amount should be recorded with a positive sign.
The other information is not relevant.
Answer:
It is more profitable to continue processing.
Explanation:
Giving the following information:
Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.80 and total fixed costs are $10,000. The cat food can be sold as it is for $9.15 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,000 cost. The additional processing will yield 10,000 bags of Premium Green and 3,000 bags of Green Deluxe, which can be sold for $8.15 and $6.15 per bag, respectively.
Previous split off point:
Income= 10,000*(9.15 - 3.8) - 10,000= $43,500
Post split off point:
Income= 10,000*8.15 + 3,000*6.15 - 10,000*3.8 - 12,000= $49,950
It is more profitable to continue processing.
Answer: Option (A) is correct.
Explanation:
Given that,
Nominal interest rate = 5%
Deflation rate = 2 %
Real interest rate = Nominal interest rate + Deflation rate
= 5% + 2 %
= 7%
If a country is experiencing a deflation then the real interest rate is greater than the nominal interest rate.