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musickatia [10]
3 years ago
14

Which one of the following will increase the operating cash flow as computed using the tax shield approach? Multiple Choice Decr

ease in sales Decrease in fixed costs Increase in the tax rate Decrease in depreciation
Business
1 answer:
yawa3891 [41]3 years ago
5 0

Answer: Decrease in fixed costs

Explanation:

When using the tax-shield approach, the relevant method of calculating operating cashflow is;

= (Sales - Cash Costs) * (1 - tax rate ) + (Depreciation * tax)

Looking at the formula it can be inferred that if fixed costs (part of cash costs) were to decrease, the cash from sales would be higher and would therefore result in an increased operating cashflow for the company.

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Kemp Corporation manufactures a variety of parts for use in its product. The company has always produced all of the necessary pa
dedylja [7]

Answer:

financial advantage of purchasing from outside vendor = $36,000

Explanation:

outside vendor offers 18,000 units at $40 per unit = $720,000

current production costs (for 18,000 units):

  • Direct materials $324,000
  • Direct labor $162,000
  • Variable manufacturing overhead $36,000
  • Fixed manufacturing overhead, traceable $162,000 ($54,000 avoidable)
  • Fixed manufacturing overhead, allocated $216,000 (not avoidable)
  • Total cost $900,000

total avoidable costs = $576,000

additional revenue generated by freed facilities = $180,000

financial advantage of purchasing from outside vendor = ($576,000 + $180,000) - $720,000 = $36,000

3 0
4 years ago
Which of the following is a component of the talent acquisition function of HR management?
katovenus [111]

Answer:

Recruiting

Explanation:

Recruitment is the process of hiring individuals in an organization to accomplish the tasks assigned. It is the process carried by the Human Resource Management in an organization. The HR management is responsible to organize and manage the human talents and recruit them respectively. The talent are recognized by the team and are hired to meet the goals of the organization.

3 0
3 years ago
On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,049. During the first 11 months of the ye
ipn [44]

Answer:

$24,396

Explanation:

The total of accounts written off for 11 months can be calculated by subtracting the November 30 balance from the total of beginning balance

Bad debt - Bad debt written off

= Allowance for bad debts + bad debts expense - Allowance for bad debts account as at November 30, 2019

= $13,049 + $21,058 - $9,711

= $24,396

4 0
3 years ago
global market distribution system and because the Breathe Right strips complemented the 3M first-aid product line.Refer to Breat
ELEN [110]

Answer:

Promotion

Explanation:

Marketing mix is a combination of factors which are controlled by the organization for influencing customers. There are 4Ps in the marketing mix, people, process, promotion, product. In the given scenario emphasis is laid on the promotion.

4 0
3 years ago
An entrepreneur borrows $500,000 today. The interest rate is 11.5%. If the entrepreneur makes annual payments of $70,000 per yea
love history [14]

Answer:

After 18.44 year loan will be paid

Explanation:

We have given an entrepreneur borrows $500,000 today.

So total amount is $500000

Annual payment is of $70000

Rate of interest r = 11.5 %

We have to find the time period

We know that total amount is given by

A=P(1+\frac{r}{100})^n, here A is total amount , P is yearly paid amount, r is rate of interest and n is time period

So 500000=70000\times (1+\frac{11.25}{100})^n

7.142=1.1125^n

Taking log both side

log7.142=nlog1.1125

n\times 0.0463=0.8538

n = 18.44 year

So after 18.44 year loan will be paid

6 0
4 years ago
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