Answer:
Net working capital is increased by $0.4 million during the year
Explanation:
Net working capital is the net value of current assets and current liabilities for the period. The change in cash during the period also affects the working capital.
First we need to calculate the operating cash flows
Operating cash flow = Aftertax income + Depreciation Expense
Operating cash flow = $1.2 million + $0.4 million
Operating cash flow = $1.6 million
The change in working capital can be calculated as follow
Change in working capital = Operating cash flow - Total cash flow
Change in working capital = $1.6 million - $1.2 million
Change in working capital = $0.4 million
Hence The networking capital is increased by $0.4 million ( assuming there is no change in current liabilities )
Answer:
a. creates desires that otherwise might not exist.
Explanation:
Advertising refers to a communication strategy that companies use to try to convince people to buy their products and it helps to create interest and desire and to persuade people that would be willing to pay for the product to buy it. According to this, the answer is that critics of advertising argue that advertising creates desires that otherwise might not exist because advertising tries to generate desire in people to get a product that in many cases they don't actually need but that after seing any type of advertising they want to have.
The other options are not right because enhacing the competition and benefiting television viewers who enjoy TV commercials are not disadvantages that would be pointed out by critics.
Answer and Explanation:
The journal entry is
Salaries and Wages Payable $50,000
Salaries and Wages Expense $25,000
To Cash $75,000
(Being cash paid is recorded)
Here salaries & wages payable and salaries & wages expense is debited as it decreased the liabilities & increased the expense while the cash is credited as it decreased the assets