Three things that they would consider are:
1. Your credit history.
2. Your ability to repay the loan.
3. Your cash flow history.
Answer:
a.$121,375
Explanation:
Increase in account receivable means there is more credit sales were made during the year than the cash received from the customers. So, cash will be used in the period by account recivables.
According to indirect method cash flow will be adjusted as follows
Net Income $143,124
Net Increase in Rceivables ($21,749)
( $67,072 - $45,323) <u> </u>
Cash Flow from Operating Activites <u> $121,375</u>
In the steps of the decision making process for major purchases, for me, the most difficult is the part of making the decision itself. Information are already gathered, the goals are presented as well as the consequences, but there are times that your actual decision is overpowered by self-interest instead of objectivity. Hope this helps.
Answer:
14.7%
Explanation:
The computation of return on investment is shown below:
Return on Investment = Net Income ÷ Average total assets × 100
where,
Net Income is
= Sales - Cost of goods sold - Operating expense
= $4,525,000 - $2,550,000 - $1,372,000
= $603,000
And,
Average total assets = $4,100,000
So,
Return on Investment is
= $603,000 ÷ $4,100,000 × 100
= 14.7%