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viktelen [127]
3 years ago
8

While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec

ided not to go forward with the project, so the building is available for sale or for a new product. Cook owns the building free and clear⎯there is no mortgage on it. Which of the following statements is CORRECT?(A) Since the building has been paid for, it can be used by another project with no additional cost. Therefore, it should not be reflected in the cash flows for any new project.(B) If the building could be sold, then the before-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.(C) This is an example of an externality, because the very existence of the building affects the cash flows for any new project that Rowell might consider.(D) If there is a mortgage loan on the building, then the interest on that loan would have to be charged to any new project that used the building.None of the above.
Business
1 answer:
Mariulka [41]3 years ago
3 0

Answer:

C

Explanation:

This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.

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Consider the following financial statement information for the Hop Corporation:
nexus9112 [7]

Answer:

Operating cycle = 59.29 days

Cash cycle = 26.1115 days

Explanation:

From the information given:

\text{Beginning Inventory \$16,284} \\ \\ \text{Beginning Accounts receivable 11,219} \\ \\ \text{Beginning Accounts payable 13,960} \\ \\ \text{Ending Inventory $19,108} \\ \\ \text{Ending Accounts receivable 13,973} \\ \\ \text{Ending Accounts payable 16,676} \\ \\ \text{Net sales \$219,320} \\ \\ \text{Cost of goods sold 168,420} \\ \\

\text{Ending Inventory \$19,108} \\ \\ \text{Ending Accounts receivable 13,973} \\ \\ \text{Ending Accounts payable 16,676} \\ \\ \text{Net sales \$219,320} \\ \\ \text{Cost of goods sold 168,420} \\ \\

To start with:

\text{Average inventory = } \dfrac{Beginning \ value +Ending \ value}{2} \\ \\ =\dfrac{ 16,284 + 19,108} {2} \\ \\ = \dfrac{35,392}{ 2} \\ \\ = \$17,696

\text{Average receivable }=\dfrac{ Beginning value + Ending value }{ 2} \\ \\ =\dfrac{ 11,219 + 13,973 }{2} \\ \\ =\dfrac{ 25,192 }{ 2} \\ \\= \$12,596 \\ \\

\text{Average payable }= \dfrac{Beginning \ value + Ending\  value}{  2} \\ \\ = \dfrac{13,960 + 16,676 }{2} \\ \\= \dfrac{30,636}{2} \\ \\ = \$15,313

\text{Days of inventory outstanding} = \dfrac{Average \  inventory }{ Cost  \ of  \ goods \  sold  } \times 365  \\ \\ \dfrac{= 17,686}{ 168,420} \times 365 \\ \\ = 0.105\times 365 \\ \\= 38.329 \ days

\text{Days  \ of  \ receivable \  outstanding }= \dfrac{Average  \ receivable }{ sales }\times 365 \\ \\ \dfrac{= 12,596 }{ 219,320} \times 365 \\ \\ = 0.0574 \times 365 \\ \\= 20.951 \  days

\text{Days of payable outstanding} = \dfrac{Average payable}{cost of goods sold} \times 365 \\ \\ = \dfrac{15,313 }{ 168,420} \times 365 \\ \\ = 0.0909 \times 365 \\ \\= 33.1785 days

\text{Operating Cycle = Days of inventory outstanding + Days of receivable outstanding} \\ \\ = 38.339 + 20.951 \\ \\ = 59.29 days

\text{Cash Conversion Cycle = Operating cycle - Days of payable outstanding} \\ \\ = 59.29 - 33.1785 \\ \\ = 26.1115 days \\ \\

6 0
2 years ago
In response to dwindling sales of organic meats, Hain Celestial executives decided to promote the sale of organically grown nuts
3241004551 [841]

Answer:

Product substitute

Explanation:

Product substitute is defined as one that meets similar needs of the consumer. As demand for one of such goods rises the demand of the other tends to fall as the meet similar needs.

In the given scenario organic meats are seen as being substituted by organically grown nuts as a source of protein.

So when Hain Celestial has dwindling sales of organic meats they were considering organically grown nuts as a different product to give to customers

3 0
3 years ago
Read the following paragraph and respond to the questions below.
-Dominant- [34]

Answer:

a. The number sentence that is the topic sentence is sentence (1).

b. Sentence (6) does not contribute to the paragraph's unity.  It can be eliminated, without changing the meaning that can be obtained from the paragraph.  It does not support the topic.

c. The writer, in sentences 3 through 7, provides an example and further details to help the reader to understand her point.

d. The example in a sentence makes the idea clearer to the reader.  Without the example, which provides further details, the reader may not clearly appreciate the topic under discussion.

Explanation:

The purpose of the topic sentence is to introduce the theme of the paragraph or the point of view of the writer.  It captures the essence of the story.  As it bears the central idea, it focuses the paragraph to achieve unity.

5 0
2 years ago
How many questions does Brainly let you ask ???
crimeas [40]

Answer:

Depends on the amount of points you have, as long as you have 10 points at all times you can always a question. It is pretty much unlimited until you run out of points, once you run out you can always answer someones questions to get more points to ask more questions!

Explanation:

5 0
3 years ago
In a concentrated network configuration:
seraphim [82]

Answer:

B

Explanation:

Here, in this question, we are to select which of the options is best.

The correct answer to this question is that in a concentrated network configuration, firms allow each site on the network to operate with full autonomy.

What this means is that each site in the network operate independently of the other sites.

A site is thus an autonomous entity but still part of the concentrated network

7 0
3 years ago
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