The officer responsible for managing the firm's cash flows is the <span>treasurer</span>.
Answer:
A) They would be indifferent, as Sally's income net of costs equals $25,000.
Explanation:
Sally's economic profit = accounting profit - opportunity costs
- accounting profit = $12,000
- opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000
economic profit = $12,000 - $12,000 = $0
Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.
Answer:
Bethesda Biosys
Issue of an IPO:
Net proceeds for the issuer is $82 million, if all the 4 million shares are bought by investors.
Explanation:
a) Calculations:
The spread is $4.5 (18% of $25) per share, since average selling price is $25.
Therefore, the net proceed per share is $20.50 ($25 - 4.50).
And the Total Net Proceeds = $82 million ($20.50 * 4 million), assuming that all four million shares were bought by the public.
Note that the question did not provide the necessary information to make the final decision.
b) During the issue of securities, especially an IPO, underwriters, such as investment banks, pay an issuing company for the securities and then sell the securities to the public. There is always a difference per share price that they are willing to pay the issuer and what they will collect from the investing public. That difference is called the underwriting spread or simply the spread.
c) Best-Efforts Basis: According to investopedia.com, underwriting on best-effort basis is "an agreement between an underwriter and an issuer in which the underwriter agrees to place as much of an offering with investors as possible, but is not responsible for any portion of the offering it fails to sell."
Answer and explanation:
The EVLN (Exit, Voice, Loyalty, Neglect) model explains how employees react differently in front of dissatisfaction at work. In such a way:
- Exit:<em> implies quitting or requesting a change of roles within the same organization.
</em>
- Voice: <em>involves providing constructive suggestions about a stressful situation.
</em>
- Loyalty:<em> implies waiting for the issue to be solved by others.
</em>
- Neglect:<em> involves reducing labor efficiency to harm the company's performance.
</em>
Thus, in the example, the<em> exit (employee who quits), voice (employee who complains), </em>and<em> loyalty (employee who does nothing)</em> reactions are used by employees even if they share the general idea that payments are low.
Answer:
Cash Flow from Operating Activities
Net Income $24,000
Adjustments for Non-Cash items :
Depreciation expense $12,000
Adjustments for Changes in Working Capital :
Increase in Accounts receivable ($10,000)
Decrease in Inventory $16,000
Increase in Salaries payable $1,000
Net Cash from Operating Activities $43,000
Explanation:
The Indirect method reconciles the Operating Profit to Operating Cash Flow by adjusting the Operating Cash flow with the following items :
- Non-cash items previously deducted or added to Operating Profit.
- Changes in Working Capital.
