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REY [17]
3 years ago
10

The tax shield approach to computing the operating cash flow, given a tax-paying firm: Select one: a. separates cash inflows fro

m cash outflows. b. considers the changes in net working capital resulting from a new project. c. recognizes that depreciation creates a cash inflow. d. ignores all noncash expenses and their effects. e. ignores both interest expense and taxes.
Business
1 answer:
S_A_V [24]3 years ago
3 0

Answer:

c. recognizes that depreciation creates a cash inflow

Explanation:

The formula to compute the operating cash flow is shown below:

Operating cash flow = Earning before interest and taxes  + Depreciation - Income tax expense  

Since as we can see that after computing the earning before interest and taxes we added back the depreciation expense and deduct the income tax expense so that the proper value could arrive

Hence, option c is correct              

You might be interested in
Yoko is defining her company's performance evaluation process. Which process requirement would help her organization most effect
Advocard [28]

Answer:

Option E. Ensure that performance standards are not vague.

Explanation:

Option E is correct because if the performance standards are not vague and are realistic then the evaluation will be more fair. It will also not demotivate the employees as they will be accepting what went wrong.

Option A is incorrect because we can use both subjective and objective performance indicators.

Option B is incorrect because ensuring less time to appraise the performance means that the appraiser hasn't acknowledged the full scenario hence the evaluation wasn't fair.

Option C is incorrect because distributive justice must be applied. As it helps in acknowleging what the organization has done wrong with the employees that has resulted in poor performance.

Option D is incorrect because if the performance indicators are not representative of tasks for which the person was accountable then the evaluation is not fair. I will be held accountable for things which I wasn't deligated responsibility. Hence employee must be accountable for the responsibility deligated.

5 0
3 years ago
Solve for the unknown number of years in each of the following (Enter rounded answers as directed, but do not use rounded number
marishachu [46]

Answer:

a)   7.627144987

b)   5.605222315

c)  20.04031392

d)  10.17644951

Explanation:

We need to solve for years starting from the future value of a lump sum formula:

PV(1+r)^n=FV\\

We use logarithmics properties and solve:

(1+r)^n=FV/PV\\\\log_{1+r}(FV/PV) = n\\\\n = \frac{log FV/PV}{log (1+r)}

a)

log(1655/800)/log1.1 = n

7.627144987

b)

log(4250/2491)/log1.08 = n

5.605222315

c)

log(392620/33905)/log1.13 = n

20.04031392

d)

log(214844/33600)/log1.20 = n

10.17644951

5 0
3 years ago
Carlos has a small fashion company. He has been in business for a little over a year and the company looks like it is going to d
Vika [28.1K]

Answer: A.Venture capital firm

Explanation:

Carlos's company is a new business. One with growth potential and less than a year under it's belt and yet it has done some work with Calvin Klein. He now needs capital to continue the momentum and there is a specialized finance vehicle for people like him, Venture Capitalism.

Venture Capitalism refers to Venture Capital firms investing funds in growing or starting businesses. They have a high risk appetite which enables them to go into business with new firms. The key criteria is that there MUST be high Growth Potential.

Their strategy is simple, they invest in a new company in exchange of a certain amount of ownership of the business and then 4-6 years later exit the company when they are bought out.

Carlos's business is growing and has huge potential, if he doesn't mind sharing some of his ownership, Venture Capitalism is the best way to go.

4 0
3 years ago
Read 2 more answers
Eagle Company reported Salaries and Wages Payable of $1,500 at the beginning of the year and $5,000 at the end of the year. The
ivanzaharov [21]

<u>Given:</u>

Wages payable at the beginning of the year = $1500

Wages payable at the end of the year = $5000

Salaries and wages expense as per the income statement = $112400

<u>To find:</u>

Cash paid for salaries and wages

<u>Solution:</u>

The calculation of the cash paid for salaries and wages is as follows,

Wages payable at the end of the year-Wages payable at the beginning of the year = \$5000-\$1500=\$3500

Cash paid = \$112400-\$3500=\$1,08,900

Therefore, the cash paid for salaries and wages during the year is $1,08,900.

Wages and salaries are paid by the organization or management to the workers or the employees in return for the work done by them for the company.

3 0
4 years ago
Wilson, an employee in a private-sector bank, has been suspected of stealing company funds and subsequently threatening and hara
sergiy2304 [10]

Answer: d. It should only use licensed, bonded examiners to conduct the test.

Explanation:

The purpose of the Employee Polygraph Protection Act is to ensure that employees get tested according to the highest levels of fairness and professionalism. To that end, only licensed examiners who have had training should be able to administer the test.

In addition to that, these examiners must sign a bond that they will be required to pay if it is shown that during the course of the exam, they engaged in practices that were unfairly or illegal towards the employee being examined.

6 0
3 years ago
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