Single feature model
In this case, the single feature that Cynthia cares about is price. The single feature model works well for simple decisions, but most purchases require more thought. For example, buying a house based solely on price would be a terrible idea because it might be in a bad neighborhood or terrible condition.
Answer:
Initial outlay = $60,000
Annual net income before tax = $7,200 per annum
Depreciation = <u>Cost - Residual value</u>
Estimated useful life
= <u>$60,000 - 0</u>
12 years
= $5,000 per annum
Annual net cashflow before tax
= Annual net income before tax + Depreciation
= $7,200 + $5,000
= $12,200
Explanation:
In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.
Answer:
The three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters are;
1. Revenue procedures
2. Revenue rulings
3. Judicial decisions
Explanation:
A citator can be defined as an index of legal resources that allows the researcher to find newer documents of the original document and thus the history of statues and cases can be reconstructed. This has been collectively termed as shepardizing. There are different kinds of citators depending on the type of case one is handling. In our case, we are dealing with tax professionals. Tax professionals deal with three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters. These primary sources are; revenue procedures, revenue rulings and judicial decisions. They are further elaborated below;
1. Revenue procedures
A revenue procedure is a set of guide that give direction on how to apply law, regulations and rulings. They majorly give direction on matters involving tax.
2. Revenue rulings
A revenue ruling is an order directly from the Internal Revenue Services (IRS) that has the full backing of the law and therefor enforceable. Such rulings on revenue, give direction on how the IRS understands the tax laws. Since the IRS is an authority constituted by top-level tax professionals, a revenue ruling can be used by other tax professionals to cite cases of similar nature.
3. Judicial decisions
Judicial decisions is a statement of advice written by a judge or a panel of judges that serves as a guide in solving a legal dispute. They involve a written legal opinion that tends to justify how and why they arrived to that conclusion to solve the dispute. The same thinking can be used by other professionals in other disputes of a similar nature to solve them.
Answer:
B. the cash that a firm generates from its normal business activities using its existing assets
Explanation:
It represent the cash from the main activity. It is a good indicator wether the company needs external financing or it can sustain his grow with own funds.
It is stated in the cash flow statement. along with investing and financing activities.
Answer:
Metrics are the numbers you track, and analytics implies analyses and decision making. Metrics: What you measure to gauge performance or progress within a company or organization. Your most important metrics are your key performance indicators, or KPIs.
Explanation:
