Learn how to spell 'what' and 'Plus'
Answer:
What did the company purchase that resulted in the cash outflow from investing activities?
It purchases Land for 16,500
Explanation:
The investing activities outflow will be for the purchase of long tem assets in cash.
The complete cash outflow for investing activities is explain it through the land account:
cash outflow: 16,500
land: 16,500
There are no other long-term assets which can explain the variance plus, the land account covers the amount entirely.
Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
Answer:
2.98 minutes per cycle
Explanation:
Total work time = 352 minutes per day
Break time = 16 min*3 = 48 min
Lunch time = 60 min
Total time left = 352 - 48 - 60 = 244 min
Demand = 82 jobs a day
Takt time = Total production time available/Demand
Takt time = 244/82
Takt time = 2.9756
Takt time = 2.98 minutes per cycle
