Answer:
the rigt answer is A.
Explanation:
One of the main functions of the central bank is to manage and protect gold and foreign exchange reserves in the country.
Answer:
Proofread for punctuation errors (it's a must!!), Jot down reasons that explain the bad news (I think), Organize your ideas (I think)
Explanation:
I think: Jotting down the reasoning helps/support the information (specifically) the bad news. Organizing your ideas helps to keep everything you write on track and ideas you want to mention always start from check-point A to check-point B and so forth.... (It's my thoughts of an answer)
Answer:
C. Preferred stockholders will receive the entire $300,000 and they must also be paid the remaining $20,000 sometime in the future before common stockholders will receive any dividends.
Explanation:
Preferred shares have preference over the common shares in respect of dividend. Since $300,000 is paid as dividend, the entire amount has to be paid to the preferred shareholders, as the total amount payable to them as dividend = $1,000,000 * 4 *8% = $320,000, which is more than the total dividend declared.
In addition, as the preferred shares have cumulative dividend preference the shortfall in any year is to be carried forward and paid in the year in which dividends are paid and that too before any dividend is paid to the common shareholders.
Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
<u>Recommendation</u>
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
