Answer:
A store that buys a shipment of new computers cant afford to buy new phones.
Explanation:
Answer:
$50,000
Explanation:
The preparation of the operating activities under the indirect method is shown below:
Cash flows from operating activities
Net loss -$12,000
Add: Depreciation expense $24,000
Add: Decrease in account receivable $28,000
Less: Increase in inventory -$20,000
Add: Increase in account payable $30,000
Cash provided from operating activities $50,000
The options are incorrect. The right answer is shown above
Answer:
1.
<u>Net income increases</u><em>. - </em>Ability to pay Dividends increases.
Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.
<u>More profitable investment opportunities are available</u> - Decreases Ability to pay Dividends.
If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.
<u>The firm increases its debt ratio</u>. - Ability to pay Dividends Increase
As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.
2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.
When a company integrates its supply chain to allow it to improve efficiency, this is known as<u> Vertical Integration. </u>
<h3>What is vertical integration?</h3>
- Involves acquiring a company along the supply chain.
- Can be either forward or backward integration.
Forward integration involves acquiring a company that is further along in the supply chain such as a producer acquiring a retailer. Backward integration would be the reverse situation.
In conclusion, this is vertical integration.
Find out more on vertical integration at brainly.com/question/19815172.
