Which measure would a long-term creditor be least interested in reviewing?

What level of management is responsible for originating capital budgeting proposals?

Bess [88]

It is the work of all level of management.

Companies use capital budgeting to analyze large projects and investments, such as new factories or equipment. The technique involves assessing a project's financial inflows and the outflows to see whether the expected return is within a certain range. Capital budgeting methodologies include discounted cash flow, payback, and throughput studies.

Accountants provide this information, giving ownership the first tool it requires to start preparing the capital budget. Accounting firms often provide predictions of future earnings and the costs of alternative financing solutions to help management make decisions.

Therefore, the answer is all level of management.

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6 0

2 years ago

For the HMO vaccination program example provided in the chapter, reanalyze the situation assuming that the probability of a flu

Neko [114]

Answer:

HMO Vaccination Program

With the given probability of a flu outbreak at 65 percent and the cost of the vaccination program at $8 million, my decision under these new conditions is:

To go ahead with the vaccination program in order to protect the health of the people since the assessed chance of a flu outbreak is high at 65%.

Explanation:

However, for any vaccination program to be effective, the whole population must be targeted and achieving 100% coverage must be assured. In the past, many such programs have failed because of ineffective coverage of the population. While vaccination is important, prevention of the root cause of such flu outbreaks remains paramount as it is also the least costly measure.

4 0

3 years ago

Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. Woodpecker Co. expects

Lelechka [254]

Answer:

The correct answer would be option C, $984000

Explanation:

Account Receivables on January 1 = $296000

Expected Sales for January= $860000

Cash sale Expectation = 20% of Sales

= 20% of 860000

= 0.2*860000

Expected Cash Sale = 172000

Remaining 80% of Sales would be on account as:

= 80% of 860000

= 0.8 * 860000

= 688000

Out of this 80% sales, 75% are expected to be collected in the month of sale, that is:

= 75% of 688000

= 0.75*688000

= 516000

So the January cash collections would be:

Account Receivables for Jan + Expected Sales on Cash + Cash received from account on the same month of sale:

Total Cash Received in the month of Jan:

= 296000+172000+516000

= $984000

3 0

4 years ago

Speedy Clean laundry Purchased $6,500 worth of laundry supplies on Jun 2 and recorded the purchase as an asset. On Jun 30, an in

allsm [11]

Answer:

Explanation:

Journal Entry: The journal entry shows the recording of transactions which follows double entry system./ Every account has double entry. In journal entry, there is one debit and one credit side. Debit side records expenses and losses whereas credit side records income and gains.

Since, in the given question, the laundry supplies purchase on Jun 2 which is $6,500 but on June 30, it only holds $1,500. So, on June 30, the company has $6,500 - $1,500 = $4,000 supplies.

And, the company purchase supplies so it is a expense for a company which would be debited in respect to laundry supplies

Hence, The adjusting entry would be

Laundry supplies expense A/c Dr $4,000

To Laundry supplies $4,000

(Being laundry supplies adjusted)

8 0

3 years ago

What innovation made it possible to sell a lot of goods really cheap?

Korvikt [17]

The innovation which made it possible to sell a lot of goods really cheap is assembly-line production.

3 0

3 years ago