Answer:
Decrease in income by $227,000
Explanation:
The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;
= -Sales + Direct cost + fixed cost - salary per year
= -$980,000 + $343,000 + ($450,000 - $40,000)
= -$980,000 + $343,000 + $410,000
= -$227,000
Hence, the amount of the change in the income in the case when the east territory is eliminated is -$227,000
Decrease in income by $227,000
Answer:
$113,200
Explanation:
Data provided
Cost of goods sold = $101,000
Increase in Inventory = $8,100
Decrease in Accounts payable = $4,100
The calculation of Adjusted cost of goods sold is shown below:-
Adjusted cost of goods sold = Cost of goods sold + Increase in Inventory + Decrease in Accounts payable
= $101,000 + $8,100 + $4,100
= $113,200
Therefore for computing the adjusted cost of goods sold we simply applied the above formula.
The formula used to determine free cash flow is cash from operations minus capital expenditures.
A business plan is a formal document that states the goals of the business as well as the intended process for reaching those goals. This provides a market analysis. This basically provides the investors an idea of how the company will make use of its money and conduct business.
That statement is false.
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