____ is used to run the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated

Which of the following statements is most correct?(a) The primary test of feasibility in a reorganization is whether every claim

ss7ja [257]

Answer:

The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.

Explanation:

Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.

<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>

5 0

3 years ago

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115

vfiekz [6]

Answer:

1.30%

15.60%

16.77%

Explanation:

The monthly return is the amount payable monthly divided by the current price of the investment vehicle.

monthly return=$1500/$115,000=1.30%

Annual percentage return=monthly return*12=1.30% *12=15.60%

Effective annual return=(1+1.30%)^12-1

EAR=1.167651776 -1

EAR=16.77%

5 0

3 years ago

Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu

FromTheMoon [43]

Answer:

A. $7,275,000

B. $436,500

C. YES

Explanation:

A. Calculation for how many dollars will the cash management system free up

First step is to calculate for Additional collections

Using this formula

Additional collections=Daily collections× Numbers of days to speed up

Let plug in the formula

Additional collections= $2,250,000 million per day × 3 days speed up

Additional collections=$6,750,000

Second step is to calculate for delayed disbursements using this formula

Delayed disbursements= Daily disbursement × Numbers of Days for slow down

Let plug in the formula

Delayed disbursements= $1,050,000 million per day ×0.5

Delayed disbursements= 525,000

Last step is to calculate for the freed up fund using this formula

Freed up fund=Additional collections+Delayed disbursements

Let plug in the formula

Freed up fund=$6,750,000 + 525,000

Freed up fund=$7,275,000

Therefore the amount of dollars that the cash management system will free up is $7,275,000

B. Calculation for how much will the income be using this formula

Income =Freed up fund× Interest rate

Let plug in the formula

Income=$7,275,000×6%

Income=$436,500

Therefore the income amount will be $436,500

C. YES it should be implemented reason be that the income amount of $436,500 is $36,500 ($435,600- $400,000) higher than New system total cost of the amount of $400,000

3 0

3 years ago

In 2016, the TransUnion Company had consulting revenues of $1,000,000 while costs were $750,000. In 2017, TransUnion will be int

Bezzdna [24]

Answer:

$90,000

Explanation:

In this question, we compare the net income and the difference should be reported

In the first case, the net income is

= Revenue - expense

= $1,000,000 - $750,000

= $250,000

In the first case, the net income is

= Revenue - expense

where,

Revenue is = $1,000,000 + $150,000 = $1,150,000

And, the expenses is $750,000 + $60,000 = $810,000

= $1,150,000 - $810,000

= $340,000

So, the net profit is increased by

= $340,000 - $250,000

= $90,000

7 0

3 years ago

What are some examples of trade controls?

aleksandrvk [35]

The use oftrade controls to reduce foreign competition in order to protect domestic industries.

Hope this helps! :)

5 0

3 years ago