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3 years ago

For a profitable firm, an increase in which one of the following will increase the operating cash flow?

1 answer:

3 0

Employee salaries

The employee salaries is something that comes under the Operating Activities of a business, in its Cash Flow Statement. Therefore an Operating Cash Flow would be Employee Salaries in this case.

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Frieda Inc. is considering a capital expansion project. The initial investment of undertaking this project is $105,500. This exp

Nana76 [90]

Answer:

WACC = 0.18 or 18%

Option b is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component

D, P and E represents debt, preferred stock and common equity respectively

r represents the cost of each component
rD * (1-tax rate) represents the after tax cost of debt

WACC = 0.2 * 0.16 + 0.8 * 0.185

WACC = 0.18 or 18%

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3 years ago

Shaan and Anita currently insure their cars with separate companies, paying $790 and $645 a year. If they insure both cars with

iren2701 [21]

Answer:

The future value of annual savings is $1,370.30

Explanation:

The amount of annual savings =(Shaan's premium +Anita's premium)*10%

Shann's premium is $790

Anita's premium is $645

Annual savings =($790+$645)*10%

=$143.5

The future value formula is given below:

=-fv(rate,nper,pmt,-pv)

rate is 5% annual interest rate

nper is the 8 years that is the duration of investment

pmt is the annual savings of $143.5

pv is the total amount invested now which is zero

=-fv(5%,8,143.5,0)

fv=$ 1,370.30

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2 years ago

Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $

RUDIKE [14]

Answer:

See the explanation for answer

Explanation:

Analysis showing whether the old machine should be retained or replaced is as prepared below:

Retain Replace Net Income

Equipment Equipment Increase(Decrease)

Variable manufacturing costs 43,63,100 32,32,600 11,30,500

New machine costs 0 3,59,000 -3,59,000

Sell old machine 0 -33,500 33,500

Total 43,63,100 35,58,100 8,05,000

The old factory machine should be replaced as there is increase in net income by 805,000 when old machine is replaced.

4 0

3 years ago

Barrington Mills Manufactures denim cloth from two primary raw materials, cotton and dye. Work-in-process includes lapped cotton

8_murik_8 [283]

Answer:

weeks of supply 2,7122857

Explanation:

17,500,000 / 50 weeks = 350,000 COGS per week

current finished inventory:

250 x $ 65 = 16,250

190 x $ 80 = 15,200

310 x $ 105 = 32,550

Total 64,000

cost added:

70,000 materials x $ 2.75

125,000 materials x $ 5.00

total 817500

WIP:

2,000 rolls x $ 10.50

5,000 spools x $ 6.75

500 rolls x $ 26.10

total $ 67,800

Total inventory: 817,500 + 67,800 + 64,000 = 949300

week of supply:

inventory of 949300

and 350,000 goods are consumer per week

week: 2,7122857

3 0

3 years ago

Derek is launching his career with a job as a human resource assistant. he wants to earn certifications that will help him demon

34kurt

The answer is "The Society for Human Resource Management and HR Certification Institute".

While investigating prerequisites for resource management jobs, it before long ends up obvious that HR confirmation is rapidly moving from being liked to being required. This is an indication that associations, regardless of whether in the for-benefit or non-benefit part, are seeing proficient accreditation with an expanding level of regard.

In fact, HR certification is currently observed as a central expansion to any HR expert's resume, especially as the present experts in human asset administration confront complex difficulties, for example, an absence of qualified ability and the globalization of business.

There are a number of nationally recognized human resources designations, including:

Society of Human Resource Management (SHRM)

3 0

3 years ago