Answer:
C. disposing of long minus lived assets for non cash proceeds
Explanation:
As we know that
Cash flow statement deals with the cash inflow and cash outflow of cash payments which increase or decrease the cash balance.
In another words, the inflow of cash increases the cash balance whereas the outflow of cash is decreases the cash balance
It includes operating activities, investing activities, and the financing activities.
Since all the given options includes the cash transactions except c.
Answer:
guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk
Explanation:
Given that the purpose of Tax planning is to ensure that there is tax efficiency for the firm, in an after-tax evaluation, the goal of the firm in terms of returns or profits is toll achieved.
Hence, in this case, the correct answer to the question is that TAX PLANNING "guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk."
Answer:
A. the iso-quant line is tangent to the iso-cost line.
Explanation:
Cost minimization refers to the decrease in level of cost of production for certain specified level of production.
Iso quant line represents the labor and capital combinations keeping the total cost same. The least combination represents the tangent to isoquant, basically representing the idle choice of labor and capital.
In this manner the company chooses the idle way of cost minimization.
Answer:
Company A and Company B
Calculation of Goodwill on Acquisition:
= $212,433
Explanation:
a) Current market value of:
Tangible physical assets = $1,234,567
Intangible asset = $125,000
Total assets' value = $1,359,567
less Liabilities:
Operating = $160,000
Financial = 600,000 ($760,000)
Net value of assets = $599,567
Purchase Price (Company B) $812,000
Goodwill $212,433
b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.
Answer:
No, the debt is not manageable because interest payments equal $96 million per year.
Explanation:
Annual interest payment for debt = 0.08*1.2B = $96 million
Only the interest payment is about 96% of government revenue, so its not manageable.