The answer is a.True
The cost of the fixed asset is already excluded from the net income. In this case, the rate of return can be computed by the total net income divided by the cost of the fixed asset. So that would be $200,000/$400,000. The rate of return would be 50%
You do not meet NMSC's requirements
Answer:
Tiger Trade
Cash Flow Statement
Cash flows from operating activities:
- Cash received from sale of products to customers $35,000
- Cash received for sale of services to customers $25,000
- Cash paid to merchandise suppliers ($11,000)
- Cash paid to workers ($23,000)
- Cash paid for advertisement ($3,000)
<u>Total cash flow from operating activities $23,000</u>
Cash flows from investing activities:
- Cash received from the bank for long-term loan $40,000
- Cash paid to purchase factory equipment ($45,000)
- Cash received from the sale of an unused warehouse $12,000
<u>Total cash flow from investing activities $7,000</u>
Cash flows from financing activities:
- Cash paid for dividends to stockholders ($5,000)
<u>Total cash flow from financing activities ($5,000)</u>
Net cash increase $25,000
Cash balance at the beginning of the period $4,000
<u>Cash balance at the end of the period $29,000</u>
Answer:
The definition of fixed expenses is “any expense that does not change from period to period," such as mortgage or rent payments, utility bills, and loan payments. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis.
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