The answer is <u>"the company is practicing capital rationing".</u>
Capital rationing is the demonstration of setting limitations on the measure of new speculations or ventures attempted by an organization. This is practiced by forcing a greater expense of capital for venture thought or by setting a roof on explicit parts of a financial plan. Organizations might need to actualize capital apportioning in circumstances where past returns of a venture were lower than anticipated.
Capital rationing is basically an administrative way to deal with dispensing accessible assets over numerous venture openings, expanding an organization's main concern.
Answer:
How many minutes of grinding machine time would be required to satisfy demand for all four products = 97,620 minutes.
Explanation:
The minutes of grinding machine required to satisfy demand for all four products -
Grinding time of Product A = Grinding minutes per unit of Product A * Monthly demand in units of Product A
= 5.0 * 5,200 = 26,000
Grinding time of Product B = Grinding minutes per unit of Product B * Monthly demand in units of Product B
= 6.50 * 5,200 = 33,800
Grinding time of Product C = Grinding minutes per unit of Product C * Monthly demand in units of Product C
= 5.50 * 4,200 = 23,100
Grinding time of Product D = Grinding minutes per unit of Product D * Monthly demand in units of Product D
= 4.60 * 3,200 = 14,720
The minutes of grinding machine required to satisfy demand for all four products =
= 26,000 + 33,800 + 23,100 + 14,720
= 97,620 minutes.
A) Are small businesses
There are more small businesses in existence than any other type of business.
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
