Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.
Explanation:
When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.
This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.
It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.
Answer:
Total cash= $193,000
Explanation:
Giving the following information:
Estimated sales ($):
January= $150,000
February= $180,000
March= $220,000
40% in cash from that same month of sales
50% in cash from the previous month's sales
10% in cash from the sales from two months ago
C<u>ash collection March:</u>
From March= 220,000*0.4= 88,000
From February= 180,000*0.5= 90,000
From January= 150,000*0.1= 15,000
Total cash= $193,000
Answer and Explanation:
The computation is shown below:
a. As a premium expense
= ($0.460 - $0.44) × 695,000
= $13,900
b. As a difference of 3 months spot rate and spot rate
= ($0.455 - $0.44) × 695,000
= $10,425
The first one represents the premium expense for $13,900 and the second part represents the adjustment to the net income in a positive way
Answer:
C. Neither Mary nor Sharon can claim breach of contract.
Explanation:
Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.
Sharon agrees to do so, provided she has the time for it.
If Sharon fails to check the results and Mary wins the lottery, then it would be true of the contract between Mary and Sharon that Neither Mary nor Sharon can claim breach of contract.
The reason is Mary's promise is based on the condition that Sharon checks the result, Sharon's promise is based on the condition that 'if she has the time for it.'
The condition was not met by Sharon hence she cannot claim a breach of contract because she did not check the results, similarly, Mary cannot sue Sharon because sharon made it clear that she will only check If she has the time.
Answer:
so they can end up spending less on interest payments and credit card fees.
Explanation:
