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3 years ago

Cash management primarily involves:

Business

1 answer:

melomori [17]3 years ago

3 0

Answer:

Explanation:

Determinig the optimal level of cash is one of the most important decisions a financial agent must make, the reason of the financial analysis is discover the optimal level of cash because many of the liquidity indicator are based in the amount of cash and this is important to know if the company can face their debts especially in the short term.

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You have just won â€‹$20,000 in the stateâ€‹ lottery, which promises to pay you â€‹$1,000â€‹ (tax free) every year for the next

prohojiy [21]

The value of the second $1,000 payment is worth $ 952.38

The net present value is given by the expression as shown below:

$NPV = \frac{future value }{(1 + r)^{n} }$

Plugging the values in the above expression,

Future value =$1,000

r=0.05

n=1

$NPV = \frac{1000}{(1 + 0.5)^{1} }$

$NPV = 952.38$

The value of the second $1,000 payment is worth $ 952.38

<h3>What Is Net Present Value (NPV)?</h3>

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. NPV is the result of calculations used to find today’s value of a future stream of payments.

Net Present Value (NPV) Formula:

$NPV = \frac{R_{t} }{(1 + r)^{t} }$

where:

$R_{t}$ =Net cash inflow-outflows during a single period

i =Discount rate or return that could be earned in alternative investments.

t=Number of timer periods

Learn more about NPV on:

brainly.com/question/13228231

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5 0

1 year ago

A corporate culture is generally defined as the

Lady bird [3.3K]

Answer:

inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.

Explanation:

5 0

3 years ago

If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero p

Sedbober [7]

Answer:

the amount of units that should be sold in the case when there is a zero profit is 10,000 units

Explanation:

The computation of the amount of units that should be sold in the case when there is a zero profit is given below:

No. of units to be sold is

= Fixed Cost ÷ Contribution per unit

= $200,000 ÷ $20

= 10,000 units.

hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units

8 0

3 years ago

Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.March 1 - Bills are sent to clien

emmasim [6.3K]

Answer: Please find answers in explanation column

Explanation:

Journal entry for Nexium & Associates

1.Journal to record Services provided in February.

Date Account Debit Credit

March 1 Accounts receivable $800

Service revenue $800

2.Journal to record purchase of furniture and supplies on account.

March 9 Office furniture $1,060

Office supplies $160

Accounts payable $1,220

3.Journal To record payment made to suppliers, Corner Office Inc.

March 15 Accounts payable $1,220

Cash $1,220

4.Journal To record the bill of electricity for march which is not yet due to be paid till April.

March 23 Electricity expense $430

Outstanding Liabilities $430

5.Journal To record the salary payment to employees.

March 31 Salaries expense $850

Cash $850

3 0

3 years ago

An increase in common stock would be reflected in the statement of stockholders' equity. Select one: True False

xxMikexx [17]

Answer:

The answer is true.

Explanation:

And increase or decrease in common stock or shareholders' equity is shown under statement of stockholders' equity.

It tells us the changes that happened from the beginning of the year till year ending.

It tells us how retained earnings decrease or increase, the dividend paid for the year, changes in common equity.

8 0

3 years ago