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lilavasa [31]
2 years ago
9

​Analysts who follow Howe Industries recently noted that, relative to the previous year, the company's net cash provided from op

erations increased, yet cash as reported on the balance sheet decreased. Which of the following factors could explain this situation?
Select one:
a. ​The company cut its dividend.
b. ​The company made large investments in fixed assets.
c. ​The company sold a division and received cash in return.
d. ​The company issued new common stock.
e. ​The company issued new long-term debt.
Business
1 answer:
tamaranim1 [39]2 years ago
4 0

Answer:

Option B ​The company made large investments in fixed assets.

Explanation:

The reason is that the reaminder of the options talk about the increase of the cash not a decrease in cash amount. If the company cuts dividend then it is retaining cash, if the company is raising finance then it is increasing cash or if the company is selling its division or assets then it is raising cash.

These things constitutes to increase in cash flow.

The decrease is cash occurs when the company invests (cash outflow). So the company is making cash outflows which means cash level will decrease.

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The expected average rate of return in the fixed asset above is 36.92%. The rate of return is the income or loss of a proposed investment in a specified amount of time. In this case, a company wants to buy a 4-year life fixed asset which can increase the company's income by $240,000. We can calculate the rate of return by dividing the net income from the investment with the proposed investment to obtain the portion of return received from the investment<span>. Formula: (Net Income From The Investment/Proposed Investment) x 100%.</span>
8 0
3 years ago
A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television
kotykmax [81]

Answer:

D. Economic value created.    

Explanation:

The reason is that the economic value created is the difference between the price the customer is willing to pay and the cost that the product actually costs to the firm.

Following is the formula for calculation of economic value created:

Economic Value Created = Value customer willing to pay   -  Cost of product

Here the television costs $400 to the firm and the customer is willing to pay $600 for the television. So by putting the values we have:

Economic Value Created = $600 - $400 = $200

So the correct option is option D.

5 0
3 years ago
traci budgeted $770 for fixed expenses and $530 for living expenses per month. She has no annual expenses. Her annual net income
Nuetrik [128]

ANSWER: Surplus by $1,152

EXPLANATION: Traci had a budget of $770 for fixed expense and $530 for living expenses per month which adds up to $1,300 expenses per month. Since she has no annual expense, her yearly total expense would be $15,600.

Traci earns $16,752 so by subtracting her expense from income, we get $16,752 - $15,600 = $1,152

7 0
3 years ago
Read 2 more answers
A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group. Whic
meriva

Answer:

The correct answer is: Demographic.

Explanation:

To begin with, the term <em>''segmentation''</em> in the field of marketing, refers to the procedure of grouping the people into common groups according to their shared characteristics. Moreover, this procedure is done in order to make it easier for the company to understand to which market is the company addresing and who are they consumers.

To continue, there are many segmentation approaches, however the one used according to the age of the audience is the <em>''demographic segmenation''</em>, that focuses in the consumers' demographic variables such as age, sex and gender, assuming that their similar profiles will exibit similar purchasing patterns.

5 0
2 years ago
Which of the following is a disadvantage of a market economy?a. consumer satisfaction is lowb. it limits freedom for producers a
patriot [66]

Answer: The correct answer is c) It does not provide for everyoned.

Explanation:

In a market economy, the problem is that we are not born with the same opportunities, nor the possibility of accessing the same factors of production, nor are we equally qualified in all fields. That is, those who are born in a family with less economic resources, or simply are not enabled in activities that have more benefits, are at a disadvantage compared to the rest of the individuals. These inequalities end up generating inequalities in income distribution.

4 0
3 years ago
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