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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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.Cantlivia is a small and poor nation, but its current prime minister has a desire to create more wealth for her citizens. The p

makkiz [27]

<h2>Establish a business environment that promotes and rewards is the choice which the Prime Minister likely to choose.</h2>

Explanation:

The motto here is to increase the wealth of the country.

Option 1: Invading other countries is unethical and also, it cannot assure that, Cantlivia will improve. The reason is the country which the option says is poorer than Cantlivia, so point of growth could be seen.

Option 2: Already the country economy is down, so purchasing new tools is not possible hence this option is invalid.

Option 3: We can increase wealth only by creating business and creating entrepreneurs. So this is the right choice.

Option 4: Creating a barrier will actually slow down wealth. So this option is not right.

4 0

3 years ago

How does consumer law damage business?

kherson [118]

Complying with the law will avoid legal problems and assure customers about the quality of the products sold by a business. ... It will also help to maintain a good reputation for the business.

3 0

2 years ago

Managers and leaders perform many tasks as a result of their goals and objectives. Even though many tasks may be completed as a

uysha [10]

Answer:

a). Paul - Planning

b). Santiago - Organizing

c). Mathew - Planning

d). Chioe - Organizing

e). Kelly Tomasz - Leading

f). Ava - Controlling

g). Michelle - Organizing

Explanation:

Planning is described as the process of setting up the goals for the organization and formulating a course of action to achieve the intended goals.

Organizing is followed by planning which aims to assign the resources in a specific manner to ensure the effective accomplishment of the goal.

Leading is the process of providing guidance or direction to the staff, employees, and workers and keeps them motivated to ensure the smooth functioning of the process and achievement of optimum output.

Controlling is the last step in which the performances are governed and assessed as per the standards to find any variation.

8 0

3 years ago

The Bradford Company issued 12% bonds, dated January 1, with a face amount of $87 million on January 1, 2021. The bonds mature o

kakasveta [241]

Answer:

1. $77,783,220

2. Jan-21

Dr Cash $ $77,783,220

Dr Discount On Bond $9,216,780

Cr Bond Payable $ $87,000,000

Explanation:

1. Calculation to Determine the price of the bonds at January 1, 2021.

First step is to calculate the Present Value Of Annual Interest

a Semi-annual Interest Amount $5,220,000

($87,000,000*12%/2)

b PV Annuity Factor for (20 Years,14%/2=7%) 10.5940

c Present Value Of Annual Interest (a*b) $ $55,300,680

($5,220,000*10.5940)

Second step is to calculate Present Value Of Redemption Amount

a Redemption Value $ $87,000,000

b PV Factor Of (20 Years,7%) 0.25842

c Present Value Of Redemption Amount (a*b) $ $22,482,540

($87,000,000*0.25842 )

Now let Determine the price of the bonds at January 1, 2021.

Intrinsic Value ( Price ) Of The Bond = ($55,300,680+$22,482,540)

Intrinsic Value ( Price ) Of The Bond =$77,783,220

Therefore the price of the bonds at January 1, 2021 is $77,783,220

2. Preparation of the journal entries to record their issuance by The Bradford Company on January 1, 2021,

Jan-21

Dr Cash $ $77,783,220

Dr Discount On Bond $9,216,780

($87,000,000-$77,783,220)

Cr Bond Payable $ $87,000,000

(Being to record issuance of bond)

3. Preparation of the journal entries to record their issuance by The Bradford Company on ion June 30, 2021

Jun-30

Dr Interest expenses $ 53,82,240

Discount On Bond payable $ 2,22,240

Cash $5,220,000

4.Preparation of the journal entries to record their issuance by The Bradford Company on

December 31, 2021

Dec-31 Interest expenses $ 53,97,797

Discount On Bond payable $ 2,37,797

Cash $5,220,000

( to record interest payment)

6 0

3 years ago

A newly issued bond has a maturity of 10 years and pays a 7.7% coupon rate (with coupon payments coming once annually). The bond

Sliva [168]

The convexity of the bond is 61.810 and the duration of the bond is 7.330 years.

<u>Explanation</u>:

A newly issued bond has a maturity of 10 years. It pays a 7.7% coupon rate. The coupon payments will receive each year. Using the coupon payments the year will be reduced.
The maturity year will get reduced. So the duration of the bond is approximately 7.330 years. If the bond is sold at par value the convexity can be calculated using the number of years.
So the convexity of the bond is 61.810.

3 0

2 years ago