Answer:
d. If the manager invests in the additional project, residual income of the division will increase.
Explanation:
RI = Operating Income - (Operating Assets x Minimum Required Rate of Return)
with adding the additional project
Operating Income: $60000 +6000 =$66000
Operating Assets: $375000+$40000 =$415000
Residual income =$66000-14%*$415000 =$7900
Consider the attached information.
The following statement "the present value of a cash flow will never be greater than the future dollar amount of the cash flow" is true.
Cash flow is the net balance of money coming into and going out of a firm at a certain moment in time. A firm continuously has cash coming in and going out. For instance, money leaves the company and goes to its suppliers when a retailer buys inventory.
The expenses made as part of daily operations are included in the cash flow from operations. These cash outflows include things like rent, utilities, wages, and the cost of products sold. When a corporation operates heavily on the seasonal cycle, cash outflows might vary greatly.
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Answer:
Explanation:
a. The computation of the income from operations is shown below:
= Sales revenue - Cost of goods sold - Selling and admin expenses
= $310,000 - $140,000 - $50,000
= $120,000
b. The computation of the net income is shown below:
= Income from operations + Gain on sale of plant assets - interest expenses - Loss on discontinued operations
= $120,000 + $30,000 - $6,000 - $12,000
= $132,000
c. The computation of the comprehensive income is shown below:
= Net income + unrealized holding loss on these securities
= $132,000 + $10,000
= $142,000
d. The computation of the ending retained earning balance is shown below:
= Net income - Dividends declared and paid
= $132,000 - $5,000
= $127,000
Answer:
business would probably have more future opportunities but honestly whichever one you think you might actually wanna do in the future