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3 years ago

13

The importance of financial managers to firms with large cash inflows is greater than for firms with smaller cash flows. true fa

lse

1 answer:

julsineya [31]3 years ago

6 0

FALSE. It is not greater then firms with smaller cash flows.

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When reviewing a business communication, it is best to seek feedback from Multiple select question. random strangers, asking the

OLga [1]

Yes. This is correct.

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2 years ago

Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intende

IgorC [24]

Answer: Yes it is

Explanation:

The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.

If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.

Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.

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3 years ago

Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of

vesna_86 [32]

Answer:

Explanation:

From the given information: we are to:

a) Prepare an income statement for Ponzi for today and for each of the next three quarters. Ignore taxes. (LO1)

An income statement involves depicts the achievement of a certain business over a period of time .

The income statement for Ponzi for today and for each of the next three quarters is as follows:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales $0 $550 $600 $0

(-)

cost of goods 0 $500 $500 $0

sold

Net income 0 $50 $100 0

We will see that in the first and the fourth quarter ; the firm neither pay any cash to purchase goods nor collect cash for sales. Thus ; the cashflow will be zero in those instances and we will consider only the second and the fourth quarter for sales income and production cost.

SO:

Quarter 2 sales = 50 × 11 = $550

Quarter 3 sales = 50 × 12 = $600

(b) What are the cash flows for the company today and in each of the next three quarters?

Cash flow is like a database that helps to keep tracks and records the cash inflows and cash outflows of a financial instrument.

The cash flow in each month is as follows:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales $0 $550 $600 $0

(-)

cost of goods 0 $500 $500 $0

sold

Net income 0 $50 $100 0

Inventories $1000 $500 0 0

Account

Receivables 0 550 600 0

Net working

capital $1000 $1050 $600 0

Change in WC $1000 $50 $450 $600

CashFlow $1000 $0 $550 $600

Hint:

The Cash flow = net income - change in net working capital

The net working capital = Inventory + Account receivables

Quarter 2 sales = 50 × 11 = $550

Quarter 3 sales = 50 × 12 = $600

(c) What is Ponzi’s net working capital in each quarter? (LO1)

The net working capital in each quarter can be illustrated as :

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Inventories $1000 $500 0 $0

Account recei- 0 $550 $600 $0

vables

Net working $1000 $1050 $600 $0

capital

8 0

3 years ago

What is the primary objective for a for-profit business

sattari [20]

Answer:

the primary objective, or purpose of a for-profit business is to maximize profits for the owners while maintaining corporate social responsibility.

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3 years ago

Cost of goods sold is determined only at the end of the accounting period in.

sladkih [1.3K]

<h3>Answer:</h3>

Under the periodic inventory system.

What is periodic inventory system?

Under the periodic inventory system, the cost of goods sold determined at the end of an accounting period by adding the net cost of goods purchased to the beginning inventory and subtracting the ending inventory.

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2 years ago