Answer: Depreciation is tax deductible
Explanation:
Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.
Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.
Answer: State limited liability company statutes vary from state to state.
Explanation:
States are able to pass their own laws regarding the treatment of certain things within a state and limited liability companies are one of them.
The states have different corporate values and therefore will pass different laws to treat limited liability companies based on these values. These laws and statutes will therefore by extension, vary just as the values vary.
For this reason, the law governing LLCs in the different states is not uniform.
Answer:
Explanation:
Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.
The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.
Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.
Answer:
It is said that the country imposes a tariff on the foreign produced goods due to this implementation of tariff the demand for the domestic goods is also high, as a result the exports demand rises. Due to this effect the real exchange rate rises from E1 to E2 and the equilibrium point increased from point one to another.
Capital for a month on a balance sheet:
The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.
