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3 years ago

Which of the following statements is correct?

Business

1 answer:

Marina CMI [18]3 years ago

8 0

Answer:

Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. (A)

Explanation:

Option A- This statement is true.

Option B- This is false. After-tax operating Income is calculated as Operating profit less interest less Depreciation and less tax

Option C-This is false. They will have the same operating incomes. Operating income is calculated as Sales less operating cost.

Option D- False.

Option E- False.

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Bramble, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $6,600 from sales $200

Advocard [28]

Answer and Explanation:

The preparation of the analysis is shown below:

Particulars Continue Eliminate Net Income (Decrease)

Sales $200,000 $0 -$200,000

Less: Variable Costs $176,000 $0 -$176,000

Contribution margin $24,000 $0 -$24,000

Fixed Costs $30,600 $20,600 $10,000

Net Income/Loss -$6,600 -$20,600 -$14,000

As we can see that in both the cases whether eliminate or continue the amounts comes in negative but in continue there is a less amount of loss as compared to eliminated one

Therefore, in this case, the big Bart line could be continued

8 0

3 years ago

Return on Common Stockholders' Equity

attashe74 [19]

Answer:

Explanation:

Return on common stockholders' equity for 2015:

(Net income - preferred stock)/Equity

(63,000-5,400)/2,400,000 = 57,600/2,400,000 = 2.4%

Return on common stockholders' equity for 2015:

(99,000-5,400)/3,000,000 = 93,600/3,000,000 = 3.12%

From these calculations, it is clear that return has improved.

8 0

3 years ago

As long as a market is contestable, then even if it has only a few sellers, the Group of answer choices threat of new entrants w

Irina18 [472]

Answer: threat of new entrants will prevent the prices from rising above the competitive level.

Explanation:

A contestable market has competition such that sellers cannot unilaterally decide to sell at a certain price. They have to sell at a competitive price that is set by the market to ensure that goods are allocated efficiently.

If the prices attempt to rise above this competitive level, new sellers will enter the market so as to make a profit which would have the effect of driving the price back down to where it was and even lower if even more sellers come in. The price is therefore maintained to ensure that this does not happen.

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2 years ago

Which is not an inefficiency caused by binding price ceilings? illegal activity inefficient allocation to consumers wasted resou

stiv31 [10]

Answer: inefficient allocation of sales among sellers

Explanation:

A binding price ceiling is one in which the government imposes a legal minimum price that can be charged for a good, when the equilibrium price is below it. The ceiling creates a shortage in the market which leads to illegal activities, wasted resources and inefficient allocation to consumers.

However, it does not lead to inefficient allocation of sales among sellers.

4 0

2 years ago

Use the following Window Breeze Company income statement to answer the question. Window Breeze Company is a small manufacturer o

Vikki [24]

Missing information:

How much is the value of full costing ending inventory?

Answer:

$8,750

Explanation:

1,000 units were produced and 800 were sold, so ending inventory = 200 units

total production cost per unit (under full costing) = $35,000 / 800 = $43.75

ending inventory = $43.75 x 200 = $8,750

Full costing basically refers to absorption costing, which calculates COGS using both variable and fixed costs (total production costs).

8 0

3 years ago