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Leni [432]
2 years ago
14

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts paya

ble will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project
Business
1 answer:
Mariulka [41]2 years ago
6 0

Answer: Increase by $3,500

Explanation:

The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.

Raw materials are current assets and Accounts Payable are current liabilities.

The Net working capital resulting from accepting this project is;

= 12,000 - 8,500

= $3,500

Net Working capital investment would increase by $3,500.

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Garten Inc. is a publishing company. It has a very diverse workforce. When interns and new employees join the company, they are
lawyer [7]

Answer:

B) diversity pairing

Explanation:

When people of different cultural backgrounds, sexes, races, are paired for mentoring, it is known as diversity pairing.

7 0
3 years ago
A potential investor is seeking to invest $500,000 in a venture, which currently has 1,000,000 million shares held by its founde
Sergeu [11.5K]

Answer:

a, 15%

b, 150,000

c, $ 3.30

d, = $3,333,333.33

e, $3,833,333.33

Explanation:

To solve this,

Note that we have been given a similar venture to compare to our venture.

The total shareholder's equity for the other venture (P) = $10,000,000 and the net income (E) = $1,000,000

Hence, Price/Earnings (P/E) for other venture = 10,000,000/1,000,000 = 10.0

Now for our venture, Earnings in the 5th year = $500,000

Assuming that P/E ratio for both the ventures to be equal, P/500,000 = 10.0

hence, total shareholder's value for our venture = $5,000,000 --------------- (1)

Now the investor invested $500,000 and expected 50% return after 5 years, hence the investor's value after 5 years would be equal to 500,000 * (1+50%) = $750,000 --------------- (2)

Now percent ownership of venture given to investor = (Value of investor's investment after 5 years/total value of all shareholders after 5 years)

Hence, divide (2) by (1)

percent ownership of venture given to investor = 750,000/5,000,000 = 0.15

or 15%

Therefore Answer to part 'a' is = 15%

Part (b) :For the percentage ownership given to new investor = 15%, total number of shares = 1,000,000

Hence, number of shares issued to new investor = 15% x 1,000,000 = 150,000

Hence, answer to part b = 150,000

Part (c): Amount invested by new investor = $500,000 and number of shares issued to him = 150,000

hence issue price of share = Amount invested / Number of shares issued

= 500,000/150,000 = $3.33

Hence, issue price per share = $3.33

Part (d):

The Pre money valuation is the value of the company before any external funding. In this case, the number of shares held with the founders before the new investor = 1,000,000 and the equity price = $3.33

hence, Value of the venture = 3.33 * 1,000,000 = $3,333,333.33

Hence, pre money valuation of the venture = $3,333,333.33

Part (e): Post money valuation of a company is the value of the company after external funding. In this case, investor invests $500,000 to the venture increasing the value of the company by the same amount.

Hence post money valuation = pre money valuation + Investment

= 3,333,333.33 + 500,000

= 3,833,333.33

Hence, post-money valuation of the venture = $3,833,333.33

7 0
3 years ago
Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati
iragen [17]

Answer:

equipment    3,700

Explanation:

First we calcualte the values of the machine given up:

<u>traded-out assets</u>

purchased  23000

depreciation <u>20,000 </u>

book value   3,000

fair value   5,000

gain on disposal   2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash                   700

traded-out        <u>5,000 </u>

total value         5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain       (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment    3,700

acc del        20,000

   equipment            23,000

  cash                             700

3 0
3 years ago
SOMEONE PLEASE HELP ME ASAP PLEASE!!!!!​
natka813 [3]

Answer:

A. it will go up

Explanation:

thats the answer

8 0
2 years ago
____________ is a management application that takes a deterministic approach in evaluating decisions regarding current and futur
a_sh-v [17]

Answer:

Menu engineering

Explanation:

The interdisciplinary study of profitability and popularity of the strategic layout of menu items is referred to as menu engineering. It also deals with menu pricing, design, and content. A grid is also used to evaluate decisions regarding current and future menu content. It is also a management application.

5 0
3 years ago
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