Answer:
The answer is: a
Explanation:
In accounting for financial transactions, there are generally accepted standards used in practice. These standards are based on accounting principles that are designed to result in more consistent and comparable financial statements. One of these principles is the matching principle, where revenues recognised are matched with expenses incurred to generate that revenue.
In line with this principle, revenues should be matched with expenses at the time which the transaction, in this case the sale, occurs. An estimate of the amount receivable that is deemed noncollectable at the time of the sale is recognised as a bad debt expense and an adjustment is made in the allowance for doubtful debts account* in the period which the sale occurs.
*this account increases on the credit side and effectively reduces the accounts receivable amount
Answer:
The investor profit will be $85
Explanation:
Kindly check attached picture for detailed calculation
Answer:
$14,760 million
Explanation:
The computation of the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.
= $17,400 + $0 - $30 million - $2,610 million
= $14,760 million
Simply we deduct the changes in net working capital and net capital expenditure from the EBIT (1 - tax rate) so that the accurate value can come.
Answer:
3 years
Explanation:
Calculation to determine The payback period
Using this formula
Payback period=Capital investment/ Increase cash flows
Let plug in the formula
Payback period=$45,000/$15,000
Payback period=3 years
Therefore The payback period is 3 years
Lower than for questioning a