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3 years ago

The free cash flow hypothesis states:

Business

1 answer:

tresset_1 [31]3 years ago

8 0

Answer:

C. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.

Explanation:

Free Cash Flow is the cash generated by an organisationafter it has accounted for the outflows to capital assets maintenance costs and operating activities. Free Cash flow is a measure of a company's profitability after non-cash expenses in the account statement have been deducted. It is the cash flow an organisation has when it has limited or no debt obligations in its portfolio

The Hypothesis of free cash flow states that an organisation with a large amount of free cash will display less financial or spending discipline compared with an organisation that has debts obligations to spend cash on.

Based on the hypothesis, it becomes essential for such organisations to issue debts so that as the legal obligations (debts, principal and interest) increases, the potential to waste money as a result of fre cash flow reduces.

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Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s recor

ahrayia [7]

Answer:

Equity at August 1st 0

adds: Carmen Camry Investment 101,4000

Net Income 5,410

Subtotal 106,810

Withdrawals -5,950

Carmen Camry capital account at the end of August 31th 100,860

Explanation:

We have to calculae the net income

Fees earned 26,960

office 5,200

rent expense 9,500

salaries expense 5,560

telephone expense 820

miscellaneous expenses 470

Total Expenses 21,550

Net Income 5,410

Then we do the equity stamtent:

beginning + investment + net income - withdrawals = ending

Equity at August 1st 0

adds: Carmen Camry Investment 101,4000

Net Income 5,410

Subtotal 106,810

Withdrawals -5,950

Carmen Camry capital account at the end of August 31th 100,860

7 0

4 years ago

Read 2 more answers

For risk events outside project control, resolution strategies include working with clients to prioritize cost, schedule, scope

Murrr4er [49]

Answer:<em> False</em>

Explanation:

The statement given in the question is false.

The correct statement is given as, "For risk episodes moderately within project horizon, resolution planning and strategies include working with clients to re-prioritize cost, itinerary, opportunity or quality and therefore precisely heightens problems."

5 0

4 years ago

Having had no prior knowledge of the market for his product sweater, what approach did Jack McCarthy of Ugly Christmas Sweaters

telo118 [61]

Answer:

When any company wants to sale their product without prior knowledge of the market then it's a disaster.

First thing Jack can do is "Test Marketing". If any company has no knowledge of market then fastest way to know your market is test marketing. Jack must put his sweaters in small quantity for sale at different locations. Test marketing needs to be done for whole week. Jack needs to collect the feedback from its customers too. Feedback is the way jack can know the market. Without knowing the market and customers, it's really hard to market or sale your product. Feedback from test marketing activity will actually give him market knowledge and customer's feedback.

6 0

3 years ago

A focus group is selected from

Zanzabum

I’m pretty sure the answer is B the general population because a focus group is used to gather people’s opinions, ideas, or beliefs about a certain topic or product. It would be useless to ask any of the others because they would have a biased opinion on the matter.

4 0

3 years ago

Read 2 more answers

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a sche

Kryger [21]

Answer:

Dr Bad debt expense 28,799.40

Cr Allowance for doubtful accounts 28,799.40

Explanation:

allowance for doubtful accounts balance $14,000

$880,000 not due yet 1.2% $10,560

$350,000 1 to 30 days 1.95% $6,825

$70,400 31 to 60 days 6.45% $4,540.80

$35,200 61 to 90 days 32.50% $11,440

$14,080 over 90 days 67% <u>$9,433.60</u>

total $42,799.40

Journal entry

Dr Bad debt expense 28,799.40

Cr Allowance for doubtful accounts 28,799.40

3 0

3 years ago