Answer:
$35,000
Explanation:
Requirement: Prepare the Operating Activities section of the Statement of Cash Flows for the year ended 2004. Use the INDIRECT Method
Cash from Operating Activities
Particulars Amount$
Net income 6000
Add: Depreciation expense <u>50000</u>
Operating Cash Flow before 56000
Change in Working Capital
Add:
Decrease in inventory 3000
Increase in incomes taxes payable 7000 <u>10000</u>
Less:
Increase in accounts receivable 10000
Increase in prepaid Rent 8000
Decrease in accounts payable 7000
Decrease in salaries payable 6000 <u>-31000</u>
Cash from Operating Activities <u>$35000</u>
Answer:
Forecasted sales: 25% maximum reduction.
Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
- If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
- Between March 1 and June 30 there are 4 months.
- If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
- If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
- Therefore, revenues may lower by 25% this year.
- To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
Answer:enter into the strategic marketing process
Explanation:
Answer: 6.79%
Explanation:
The holding period return is:
= (Current price - Cost price + Dividend) / Cost price
= (48.27 - 45.95 + 1.20) / 45.95
= 7.66%
The annualized return is:
= ( ( 1 + holding period return) ^ number of days in a year/ number of days stock was held - 1)
= ( ( 1 + 7.66%) ³⁶⁵ / ⁴¹⁰ - 1)
= 6.79%
Answer:
Another operating room is needed.
Explanation:
The data collected by the consulting firm reveal that the existing facility does not fulfill the requirement due to more number of people so for this reason they have to build another operating room to quickly facilitate more number of people in less time. There are more number of people comes to the clinic as compared to previous years which compels the authority to build up new operating rooms for the convenience of people that comes for knee replacement.
