Answer:determine impacts and those affected.once you know exactly what u wish to achieve and why
Explanation:
Answer:
Cash conversion period = 255.46 days
Explanation:
<em>The sale-to-cash conversion period is the average length of time between when payment is made to suppliers for goods purchased and when cash are received form customers in respect of sales. The shorter the better because the period indcates how much working finance a business would need .</em>
It is calculated as follows
Cash conversion period = Inventory days + receivable days - Payable days
Inventory days
=(Average inventory/cost of goods)× 365
=(120,000/182,500) × 365
=240 days
Receivable days
=Average receivable/Credit sales× 365
=(85,000/325,000)× 365 days
= 95.46 days
Payable days
= Average payable days/cost of goods × 365days
= 40000/182,500 × 365 days
= 80 days
Sales to cash conversion period
= 240 + 95.46 - 80
= 255.46 days
Answer:
net cash flow from operating activities $221,000
Explanation:
The computation of the Net Cash provided by operating activities are as follows;
Cash flows from operating activities
Net income $200,000
Add: depreciation expense $15,000
Add: amortization expense is $2,500
Add: decrease in account receivable $5,000
Add decrease in prepaid expense $2,000
Less decrease in account payable -$8,000
Add increase in accrued expense $4,500
net cash flow from operating activities $221,000
Answer:
i) TRUE
ii) II
iii) All except option 3
Explanation:
i) A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transform an asset at a set price during a specified period of time. TRUE
ii) The statement that best describes a shutdown is : This option allows a firm to temporarily terminate operations in order to prevent experiencing negative cash flows
iii) . Modifying the way that decision makers perceive flexibility in capital budgeting activities
;
Expanding the way that managers view risk and uncertainty, seeing them as phenomena to be appreciated and exploited rather than feared and avoided.
Making managers aware of the consequences of their decisions and actions on the creation or destruction of value for a capital project.