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nordsb [41]
4 years ago
14

You have just completed a $ 24 comma 000 feasibility study for a new coffee shop in some retail space you own. You bought the sp

ace two years ago for $ 98 comma 000​, and if you sold it​ today, you would net $ 112 comma 000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $ 33 comma 000 plus an initial investment of $ 5 comma 300 in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity?
Business
1 answer:
ikadub [295]4 years ago
6 0

Answer:

$150,300

Explanation:

The computation of the correct initial cash flow is shown below:

= Capital expenditure + net after taxes + initial investment in inventory

= $33,000 + $112,000 + $5,300

= $150,300

The net after taxes is also term as opportunity cost

And, the initial investment in inventory is also term as change in working capital

All other information which is given is not relevant. Hence, ignored it

You might be interested in
EA14.
Softa [21]

Answer:

work in process    debit

  raw materials inventory  credit

--to record assignment of DM to work in process--

work in process   debit

 wages payable               credit

--to record assignment of Labor to work in process--

work in process    debit

 manufacturing overhead   credit

--to record assignment of MO to work in process--

Explanation:

We are n't given with numbers but we can determinate the account and were to post the value

a) Our materials stock decrease so we credited. We will debit WIP in order to balance the entry.

b) WIP as qualifies as assets (later it will become finished product that once sold will generate cash for the company) Thus, we need to debited. In the credit side there are two possible options:

if labor weren't paid then it will wages payable. If they were; we will credit cash to represent it.

c) for MO we credit for the allocate amount and debit WIP

At the end of the period, once we got the actual Manufacturing Overhead we will adjust

5 0
4 years ago
What is the proper estimate for the cost of preferred stock in estimating a company's WACC?a. The estimated cost of newly issued
Yuliya22 [10]

Answer: Option A

                       

Explanation: In simple words, WACC refers to the cost of total capital that a company has borrowed form the market in its weighted average form. It includes all sources of debt whether retained earning, equity, debt or preferred stock.  

While calculating WACC the analyst takes the market value of the capital sources into consideration, thus, in case of preferred stock the cost of newly issued preferred shares must be taken as they depict the actual cost that the company has to bear.

8 0
4 years ago
Sharon is upset with her secretary. Though everyone in the office agreed not to give Christmas presents this year, Sharon's secr
aliya0001 [1]

Answer:

C,)The reciprocity norm

Explanation:

From the question, we are informed about Sharon who is upset with her secretary. Though everyone in the office agreed not to give Christmas presents this year, Sharon's secretary gave her an expensive bottle of perfume. In this case, the best yet that identifies the source of Sharon's feelings is reciprocity norm.

Reciprocity norm can be regarded as rule of human interaction which stressed that action of a person needs to be reciprocated by another people. In simple term, reciprocity norm explain that when a particular person is been given a gift by another, the gift must be related by the person, this gift could take different number of forms. Reciprocity can be explained better as ways and how particular positive actions generate more positive actions, in the same way that negative actions generate or give room for more negative actions

4 0
3 years ago
How would the following transactions affect U.S. exports, imports, and net exports?
Fiesta28 [93]

Answer:

A. As a result of the professors activities, import would increase while export remains unchanged. Net export would reduce.

B. Export would increase while import remains unchanged. Net import would increase

C. Volvos are made in Sweden. So, the Volvo would be imported. This increases import and  export remains unchanged. Net export would reduce.

D. The sales takes place in England, so US export, import and net export would remain unchanged.

E.  Export would increase while import remains unchanged. Net import would increase

Explanation:

Net export = Export - Import

3 0
3 years ago
Negative transfer is said to have occurred when: a. A trainee dislikes the training sessions b. A trainee's performance declines
brilliants [131]

Answer: B) a trainee's performance declines after training

Explanation: Negative transfer occurs when previous learning hinders further learning. It is best defined as the interference of previous knowledge with new ones, wherein the new set of knowledge could hurt the performance of a new often related knowledge. A typical example could be changing from a right-handed to a left-handed wheel drive or from a manual to an automatic transmission. Negative transfer usually is problematic during the early stages of learning a new task but with experience, learners can correct the effects of negative transfer.

6 0
3 years ago
Read 2 more answers
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