Answer: Present value of the cash flows of the company is $1,158,824.
Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.
The present value of the cash flows for perpetuity with decreasing growth rate is:
where, Cash flow for the year 1 (C1) = $197,000
Discount rate (r) = 11%
Growth rate (g) = -6%
Present value of the cash flows (PV) = $1,158,824
Therefore the present value of the cash flows of the company is $1,158,824.
Answer: d) involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.
Explanation: Outsourcing strategies are employed when a company believes that outsiders can often perform certain activities better or more inexpensively thus allows the company to focus its entire energies on its core competencies or business. Thus, it involves farming out value chain activities presently performed in-house to outside specialists and strategic allies, reduces the company's risk exposure to changing technology and/or changing buyer preferences and allows it to leverage its key resources.
Answer:
e. Adjusted trial balance.
Explanation:
Adjusted trial balance -
It refers to the method of listing the account details of the company which are made after adjustment made after the year's end , is referred to as adjusted trial balance .
It is the fifth step in the accounting cycle , just before the production of the financial statements.
Hence , from the given statement of the question ,
The correct answer is e. Adjusted trial balance .