1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lyrx [107]
3 years ago
11

A firm has earnings before interest and taxes of $27,130, net income of $16,220, and taxes of $5,450 for the year. While the fir

m paid out $31,600 to pay off existing debt it then later borrowed $42,000. What is the amount of the cash flow to creditors?
a. $0
b. $14,040
c. -$14,040
d. $4,660
e. -$4,940
Business
1 answer:
grin007 [14]3 years ago
6 0

Answer:

The correct answer is e. -$4,940.

Explanation:

This problem requires us to calculate the amount of the cash flow to creditors. The cash flow to creditor means all payment made to creditors in form of interest payment or principal payment. The amount borrowed is deducted from it. The detail calculation is given below.

Interest =  Earning before interest and taxes - Net income - Taxes

Interest = 27,130 - 16,220 - 5,450

Interest = $ 5,460

Cash flow to creditors = 31,600 + 5,460 - 42,000 = -$ 4,940

You might be interested in
Cogswell cola purchased a machine for $237,500. The firm paid another $5,750 for delivery and installation. In addition the firm
Novay_Z [31]

Based on the cost of purchasing the machine and the delivery and installation fees, the initial outlay is $243,250

<h3>How much is the initial outlay?</h3>

This can be found as:

= Cost of purchasing machine + Installation and delivery cost

Solving gives:

= 237,500 + 5,750

= $243,250

Find out more on fixed asset capitalization at brainly.com/question/25355478

#SPJ1

3 0
2 years ago
The Keynesian link between the money market and the goods and services market is __________. Changes in the money market must af
Vsevolod [243]

Answer:

Indirect; investment.

Explanation:

John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.

The Keynesian link between the money market and the goods and services market is indirect. Changes in the money market must affect the investment market before the goods and services market is affected.

According to the Keynesian Transmission Mechanism, the link between the money market and the goods and services market is indirect; because at first, short-term interest rates are lowered by an increase in the supply of reserves and then with time both the bond and bank loan rates falls. Consequently, this would make investments and aggregate demand (AD curve shifts rightward) to rise or increase as a result of the low cost of capital for investors and by extension it boost the level of production or quantity of output (real gross domestic product or Real GDP).

<em>This ultimately implies that, the interest rates affects the real and costs of capital (monetary changes). </em>

5 0
3 years ago
Amy is shopping for a dress to wear to a formal dance. She tried on several dresses, not even noticing the price of each. After
fredd [130]

Answer: It is called affective choice

Explanation:

Affective decision-making (ADM) is a debatable and predictive theory of individual choice under risk and uncertainty. It generalizes expected utility theory by positing the existence of two cognitive processes – the “rational” and the “emotional".

5 0
3 years ago
Consumption occurs when income is exchanged for goods or services
Nonamiya [84]

Answer:

The correct answer is when income is exchanged for goods or services.

Explanation:

When we earn income, a portion of it goes to savings, and the balance income is called the disposable income. This disposable income can be used in various ways. You can invest it in income generating assets such as stocks, real estate, or you can exchange that for goods and services which is called the consumption.

Generally, the rate of consumption grows when the income grows.

4 0
3 years ago
Read 2 more answers
How does good health contribute to career success?
Dahasolnce [82]
It allows for one to live a healthier, happier, positive, successful life. Good health permits a stronger body and therefore better performance in the work place and an overall sense of optimism. 

xx :)
7 0
3 years ago
Other questions:
  • Please i need your help guys!
    11·1 answer
  • Executives at Energex Enterprises are trying to determine whether it would be better to own and operate a factory overseas or to
    13·1 answer
  • In the labor market, the supply curve represents A) the workers and the demand curve represents the product of the labor. B) the
    5·1 answer
  • Consider the case of Yellow Duck Distribution Company: Yellow Duck Distribution Company is expected to generate $180,000,000 in
    12·1 answer
  • g An investor wants to be able to buy 4% more goods and services in the future in order to induce her to invest today. During th
    15·1 answer
  • Lekhak Ne nai secunder Kise kaha haihindi<br>​
    12·1 answer
  • Felipe died on May 9, 2016. At date of death he owned the following assets:• Cash in the bank: $12,000• ABC Bonds: Fair market v
    5·1 answer
  • Refer to the data below to answer the following questions:
    6·1 answer
  • Provide the name of the financial institution and the account name
    8·2 answers
  • Based on the limited amount of information provided, what would you guess is the social style of the buyer? how about the social
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!