1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dafna11 [192]
3 years ago
14

Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an example of why t

he integration of these concepts would be important. Do not quote the text, but think through these tools and provide an example for the others in the class as to the importance and value of these ideas when they are effectively integrated.
Business
1 answer:
Alla [95]3 years ago
5 0

Answer:

The best example I can think of that would integrate all of these concepts is when a business is looking to finance some sort of project and they are seeking financing either through the issuance of bonds or a loan from a bank. Some of the concepts would be important to both parties, while others would be more important to one than the other.

Cash Flow

This would be important to both parties. The business, to make sure they have enough cash flow to pay for the financing. And the financiers, for the same reason.

Ratio Analysis

This would be important to both parties for the same reason as above. Especially the "current ratio" (current assets / current liabilities) and the "working capital" ratio (current assets - current liabilities).

Financial Statements

This would be of most importance to the financiers. They would want to see the total picture of a company's financial strength.

Time Value of Money

This would be of most importance to the company itself. They would want to know if the project was worth the total amount they would be paying on the bonds or the loan

You might be interested in
What factors are important in predicting change in price?
OLEGan [10]
Demand for the product,the season the product is in or if its outdated
4 0
3 years ago
Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 u
iren2701 [21]

Answer:

Estimated manufacturing overhead rate= $77 per direct labor hour

Explanation:

Giving the following information:

Production:

Product A: 1,850 units

Product B: 1,250

Hours required:

Product A: requires 0.3 direct labor-hours per unit

Product B: requires 0.6 direct labor-hours per unit.

The total estimated overhead for the next period is $100,485.

First, we need to calculate the total amount of direct labor hours required:

Total direct labor hours= 0.3*1,850 + 0.6*1,250= 1,305 hour

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 100,485/1,305= $77 per direct labor hour

4 0
3 years ago
Brody owns all the stock in Mongoose Corporation. Brody has a basis of $200,000 in the Mongoose stock, which currently has a fai
oee [108]

Answer:

d. None of the above.

Explanation:

Option D is correct because Brody has a basis of $200000 Mongoose stock and its market value is $500000. After the merger, Brody receives $200000 preferred stock and $300000 common stock which is equal to its market value of a stock before the merger so there is no gain.

3 0
3 years ago
What are the OSHA violation types
Marina86 [1]
I say to look it up on the internet.


8 0
3 years ago
What was one effect of the budget limitations that ronald reagan placed on selected agencies?
Rainbow [258]
They created efficiencies that streamlined government.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Talarczyk Company sold 10,000 Super-Spreaders on December 31, 2017, at a total price of $1,000,000 cash, with a warranty guarant
    12·1 answer
  • The stockholders equity section of Martino Inc. at the beginning of the current year appears below.Common stock, $10 par value,
    15·1 answer
  • The regression analysis at the bottom relates average annual per capita beef consumption (in pounds) and the independent variabl
    9·1 answer
  • Katrina, age 58, exchanged a limited partnership interest in a shoe manufacturing company in which her outside basis was $100,00
    15·1 answer
  • You invest a single amount of $14,800 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for
    12·1 answer
  • If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will:_______
    5·1 answer
  • Which is an example of a meta-search engine?
    12·1 answer
  • In a certain jurisdiction caroline, who is earning $42,200, currently pays a flat percentage of 25% income tax. The tax authorit
    12·1 answer
  • The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage i
    14·1 answer
  • From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!