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Misha Larkins [42]
3 years ago
6

For the year ending December​ 31, 2018, Sparks Electric expects net cash provided by operations of $ 328, 000​, net cash used by

investing activities of $ 140, 000​, and net cash provided by financing activities of $ 47,000. Sparks plans to spend $ 252,000 to add a warehouse for its operations and pay $ 25,000 in cash dividends. What is the amount of free cash​ flow?
Business
1 answer:
SVEN [57.7K]3 years ago
6 0

Answer:

$76,000

Explanation:

Free cash flow is the cash flow from operating activities minus the capital expenditure.

To obtain free cash flow, the $252,000 planned to add to warehouse for operations will be deducted from the $328,000 expected net cash to be provided by operations as follows:

Free Cash Flow = $328,000 - $252,000

                          = $76,000  

Therefore, the amount of the free cash flow is $76,000.

Note that payment of $25,000 in cash dividend will be included under the financing activities and it is not relevant in calculating the free cash flow amount.

I wish you the best.

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Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000.
DedPeter [7]

Answer:

The contribution margin per unit is $33.50

Explanation:

The contribution margin per unit in the case when the machine is purchased is shown below:

= Selling price per unit - variable cost per unit

= $64 - ($35 - $4.50)

= $64 - $30.50

=  $33.50

hence, the contribution margin per unit is $33.50 and the same is to be considered

We simply applied the above formula

7 0
3 years ago
the return to schooling for society is higher than the return to schooling for the individual if a. the concept of diminishing r
grin007 [14]

Answer:

The correct answer is c. human capital conveys positive externalities.

Explanation:

Externalities are defined as consumption, production and investment decisions made by individuals, households and companies and that affect third parties that do not participate directly in those transactions. Sometimes those indirect effects are tiny. But when they grow up, they can be problematic; That is what economists call "externalities." Externalities are one of the main reasons that lead governments to intervene in the economy.

Positive externalities: In this case, it is about the difference between private and social benefits. For example, research and development activities are widely considered as generating positive effects that transcend the producer (usually the company that finances them). The reason is that research and development enrich general knowledge, which contributes to other discoveries and advances. However, the profitability perceived by a company that sells products based on its own research and development activities does not usually reflect the profitability perceived by its indirect beneficiaries. When externalities are positive, private profitability is lower than social profitability.

8 0
3 years ago
A pharmacy (due to increased competition from a neighboring supermarket) has now added an exclusive line of cosmetics, and has e
Sati [7]

Answer:

The correct answer is: scrambled merchandising.

Explanation:

Scrambled merchandising refers to companies offering new products that are not necessarily related to their original business. This strategy is used when firms intend to boost their sales profits and is beneficial because the organization's store obtains the treat of one-stop shops. However, the lack of experience selling the new products could affect the business in the beginning.

7 0
3 years ago
Employees at Clearwater Plumbing Supply, Inc. asked the management to hold an election to determine which radio station would be
slavikrds [6]

Answer:

Check the explanation

Explanation:

Going by the question we can derive a scenario whereby the employee cannot demonstrate disparate treatment since prohibiting a specific kind of music at work, even that which has been approved by a majority or popular employee vote, is not an unpleasant and adverse employment action.

6 0
3 years ago
Read 2 more answers
The criteria that parties to a contract must be in agreement is also known as
irga5000 [103]

Answer:

C: Mutual Assent.

Explanation:

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Hence, the criteria that parties to a contract must be in agreement is also known as mutual assent.

<em>In a nutshell, mutual assent connotes agreement, acceptance and consent to a contract by both parties. </em>

7 0
3 years ago
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