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3 years ago

Four fundamental factors affect the cost of money:

Business

1 answer:

Elanso [62]3 years ago

7 0

Answer:

True statement is:

All thing being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.

Explanation:

Investors wish to receive less risk and more return. They prefer from more risk to lesser risk and receive risk premium on project that exhibit higher level of risk and delayed compensation. A project with 12% return will be more riskier than a project with 8% return. Rate of return increases as the level of risk increases.

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CA5-5 WRITING (Cash Flow Analysis) The partner in charge of the Kappeler Corporation audit comes by your desk and leaves a lette

zvonat [6]

Answer:

Explanation statement of cash flow for the year ended December 31.2017

Cash flow from operating activities

Net income 100,000

Add back depreciation 10,000

Add back amortization 1,000

Add back loss on asset sales 5,000

Increase in account receivable(40,000)

Increase in inventory (35,000)

Decrease in accounts payable (41,000) (100,000)

Net cash from operating activities 0

Cash flow from investing activities

Sales of land 25,000

Purchase of equipment (100,000)

Purchase of Land (200,000)

Net cash from investing activities (275,000)

Cash from financing activities

Payment of dividends (10,000)

Redemption of bonds (100,000)

Bet cash from financing activities (110,000)

Net decrease in Cash ( 385,000)

Cash balance in January 1, 2017 400,000

Cash balance in December 31 , 2017 15,000

<u>Workings</u>

The disparity between the net income and the cash floe are as a result loss of cash to operating activities as a result of cash tied down to increase in receivable and inventory and also to an increase in payable leading to an overall cash generated by operating activities of 0

Moreover , a larger portion (300,000) of the opening cash balance(400,000) for the year was used in acquiring land and equipment and also 100,000 used in the redemption of bond. , even though this reduced the interest expense and improve equity , yet it was a big blow to the cash flow.

The importance of cash flow is that it helps to analyse and monitor cash movement and cash available for the purpose of business activities towards liquidity and long term solvency.

Renewable sources of cash flow are generated from the company's operating activities as the cash used for the financing and operating activities are generated from this medium.

Suggestion to improve cash flow for Kappler are

Reduce the level of inventory held
Negotiate with the account payable for a longer trade payable payment period
Reduce the trade receivable collection period
Payment of dividends and redemption of bonds van be suspended till alter date when adequate cash is available
it can also negotiate for external sources of financing

4 0

3 years ago

A marketing representative wants to estimate the proportion of people in a state who like the new design on the packaging of a c

Lelu [443]

Answer:

The conditions for creating a confidence interval for the population proportion have been met.

Explanation:

There are the following conditions to build a confidence interval for a population proportion:

Sample of size n from a large population

Individuals chosen independent of one another

At least 15 failures and 15 sucesses in the sample.

In this problem, we have that:

Sample of 100 people

They are chosen at random at the market, so it means that the probability that an individual likes the new design is independent of any other individuals.

82 successes and 18 failures.

So yes, the conditions for creating a confidence interval for the population proportion have been met.

4 0

3 years ago

Read 2 more answers

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate bar

Elanso [62]

Option B, In a(n) , common market members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

A legal agreement that creates a collection of nations that adopt a single external policy tariff is known as a common market. Countries that participate in a single market also permit free commerce as well as the free movement of capital and labor within the group's members. It establishes a common external tax on imports in the market. Members of this market thus do away with trade restrictions and embrace or adhere to a common policy.

learn more about common market here:

brainly.com/question/3317960

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6 0

1 year ago

Assume for a perfectly competitive firm, the market price of one box of tissues is $2. What is the marginal revenue when sales i

trapecia [35]

Answer:

The marginal revenue = $2

Explanation:

Firstly we calculate the value in dollars for the number of boxes sold

For 100 boxes, we have 100 * 2 = $200

For 200 boxes, we have 200 * 2 = $400

Mathematically, the marginal revenue = (cost of 200 boxes- cost of 100 boxes)/difference in quantity

= (400-200)/(200-100) = 200/100 = $2

Thus affirms the fact that for a perfectly competitive firm, marginal revenue MR = P (price)

8 0

3 years ago

How important are signs.symbols and designs in relation to carpentry?if you do not have access to internal.you may answer based

Anastaziya [24]

Answer:

Symbols—such as gestures, signs, objects, signals, and words—help people understand that world. They provide clues to understanding experiences by conveying recognizable meanings that are shared by societies.

Explanation:

<h2>I HOPE IT HELPS PO...☺️☺️☺️</h2>

6 0

3 years ago