<u>Calculation of Total Assets:</u>
Total assets based on the given transactions can be calculated as follows:
Cash Received from Investors $6,900
Add: Amount Borrowed from Local Bank $3,900
Add: Supplies Purchased on account $1,190
Add: Equipment purchased $6,900
Less: Cash Paid for purchase of equipment -$2,190
Total Assets = $16,700
Hence based on the given transactions, the company's total assets are <u>$16,700</u>
Answer:
The answer is: False
Explanation:
If Bayou Belle Water had high resource similarity with companies like Coca Cola, it would mean that its resources, both tangible and intangible, are similar between them. Obviously a small business doesn't have either the financial resources or the intangible resources (the secret Coke formula) that corporate behemoths have.
Answer: D. Flat
Explanation:
The characteristics of a flat organisation includes:
a. Less management levels
b. Employees have greater responsibilities.
C. A short chain of command
Taylor tools lessened the management levels and shortened it's chain of command.
Taylor tools changed to the flat organisation structure.
- Katherine had to rush to the bank every few months to borrow more money. She didn't really talk to her banker about her financial situation because she had no trouble getting larger loans. You see, she was always on time with her payments. Katherine always took trade discounts to save money on her purchases. That is, she paid all of her bills within 10 days in order to save the 2% discount offered by her suppliers for paying so quickly.
- Katherine's products were mostly purchased on credit. They'd buy a few lamps and a pot, and Katherine would let them pay overtime. Some were extremely slow to pay her, taking six months or more.
- Katherine noticed a small drop in her business after three years. The local economy was struggling, and many people were losing their jobs. Nonetheless, Katherine's business remained steady. Katherine received a phone call from the bank one day, informing her that she was behind on her payments. She explained that she had been so preoccupied that she had missed the bills. The issue was that Katherine did not have enough money to pay the bank. She frantically called several customers for payment, but none of them could pay her. Katherine had a classic cash flow problem.
<h3>How is it possible to have high sales and high profits and run out of cash while running a business?</h3>
It is entirely possible if you have a high level of accounts receivables and inventory and a low level of accounts payables. A sale is recorded when an invoice is raised, and a shipment is delivered; this does not always imply that you received cash and that it is recorded in your accounts receivable. Similarly, if you keep a lot of inventory, a lot of your money is locked up until the inventory is sold. On the contrary, if your payment terms with your suppliers are less favorable, you will end up paying before your receivables convert to cash. As a result, high sales and profits do not always imply a strong cash position.
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M1 does <u>not</u> include currency held inside bank vaults (non-circulating) as well as the checkable deposits of the federal reserve, the united states treasury, and correspondent banks.
M1 is the cash supply this is composed of foreign money, demand deposits, and other liquid deposits—which incorporate savings deposits. M1 consists of the most liquid quantities of the cash delivered as it carries currency and assets that both are or may be quickly converted to coins.
M1 is a slender degree of the money supply that consists of currency, demand deposits, and other liquid deposits, including savings deposits. M1 no longer includes financial property, which includes bonds.
The M1 money supply consists of Federal Reserve notes—otherwise known as payments or paper cash—and coins that might be in stream outdoor of the Federal Reserve Banks and the vaults of depository establishments. Paper cash is the most sizeable component of a nation's cash delivery.
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