Answer:
Of course you should be concerned about negative cash outflows resulting from investing or financing activities.
Negative cash outflows for investing activities means that the company purchased more fixed assets or securities this year than the ones that were sold. E.g. the company purchased new equipment for $100,000. Investing activities usually require large amounts of cash.
If financing activities yield negative numbers, it means that either the company paid too much in dividends, or they paid long term debts (e.g. retired bonds or paid back bank loans), but at the same time did not raise enough capital to offset them.
When you are analyzing the finances of a company, cash is king. A company might be very profitable, but it will not survive it its cash flows are negative. If there are enough positive cash flows from operating activities to offset these other cash outflows, then the company should be OK. But if operating cash flows cannot offset them, then the company should be concerned.
Answer:
The correct answer is option C.
Explanation:
Price control or price ceiling can be defined as a type of price control in which the upper limit is fixed for the price of certain goods and services. The price ceiling is imposed on products which are necessities. Higher prices of these products are likely to increase dis-utility. The price ceiling is used to make necessities affordable to people.
Among all the goods mentioned above aspirin and antacids are necessary items. The rest of the goods are luxury items, they are not basic necessities. So price control is most likely to be used on aspirin and antacids.
Answer:
Chiquita makes an economic profit of $250,000.
Answer:
d. The risk of lack of follow-through after selection
Explanation:
As rigorous as the process of selection might be, there is a greater risk of a lack of follow-through after selection.
When working in a team, the following are expected: genuine commitment, flexibility, being reliable, prompt communication, fast adaptability, and lastly among others, being positive.
Given:
Current ratio: 2.65
acid test ratio: 2.01
current liabilities: $45,000
Current ratio = current asset / current liabilities
2.65 = current assets / 45,000
2.65 * 45,000 = current assets
119,250 = current assets
Acid test ratio = (current assets - stocks) / current liabilities
2.01 = (current assets - stocks) / 45,000
2.01 * 45,000 = current assets - stocks
90,450 = current assets - stocks
119,250 - 90,450 = 28,800 is the dollar amount of merchandise inventory.
