Answer:
An increase of $2,500
Explanation:
During cash-basis accounting method, all income and expenses that results to ACTUAL CASH INFLOW and OUTFLOW will be recorded. Thus, those income and expenses that applies for the period will not be recorded yet as long as there is no actual cash outflow. And all income made on account for the period will not be recognized unless there is an actual collection. Based on the stated facts, Sussman Co.,recorded $1,900 sales instead of the actual sales of $5,600 using accrual basis and has never been recorded the expenses incurred in the accrued salaries.
So, $5,600 less $1,900 cash collection which already have recorded on cash basis method, there will be an additional sales to be recorded at $3,700 less the salaries expense already incurred but not yet paid of $1,200. There will be an additional income of $2,500 after restatement.
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Answer:
The dam should be constructed. The investment discounted payback is 25 years.
Explanation:
We have to make a cash flow for this case with the given data. See the document attached.
We consider an Initial cost of 30 millions in period 0, then we have every periods benefit of 2.800.000 and 100000 direct cost.
With those, is obtained net cash flow for each year (period), if we consider the given rate of interest, can be calculated the discounted cash flow
To know when this project covers all the investment, we have to consider the cumulative discounted cash flow. We have to see in the cash flow chart when the cumulative discounted cash flow break the 0 (became higher than 0).
In this case , that will be at period 25. So we have to wait 25 years to recover the initial cost. Considering that the dam usually has a lifetime higher than that time, the project at this scenario, should be done.
Answer:
b. A term loan
Explanation:
A term loan is a type of loan that has a series of fixed payments with an interest rate, which can also be fixed, or unfixed.
The word fixed payment means that the payments have a specific date in which to be made.
In this case, Timini Inc is using a term loan to finance its operation because the bank mandates Timini Inc to return the borrowed amount with a regular schedule of fixed payments.
Considering these activities, the product is most likely in the development stage of the new-product development process.
Explanation:
The method of introducing an original manufacturer concept into the market is new product creation.
The first element of the product life cycle is the product development phase. This phase not only involves the construction of the product, it also contains research and testing.
At the stage of development of the product life cycle, you must guarantee that your proposal follows the following:
- Consumer expectations range
- Requirements of architecture, capital and development
- The approach in your business plan is illustrated
