Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
c. $600 interest expense and zero cash outflow from operating activities.
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × number of months ÷ total number of months in a year
= $36,000 × 5% × 4 months ÷ 12 months
= $600
This four months are calculated from September 1 to December 31
In the income statement, the interest expense is recorded for $600 but in the operating activity there is no effect
Answer:
The aim of financial management is the maximization of shareholder's wealth. Shareholder's wealth takes into consideration dividend payments and capital appreciation to the shareholders.
The concept of stakeholders take into account shareholders, customers, suppliers, employees and workers of an organization and is thus a wider concept.
Focusing merely upon current stock value i.e current market value is short sightedness from the point of managers. Managers should rather focus upon long term implications of the projects and financing decisions.
More attention should be assigned to the long term performance and efficiency of a firm with respect to dividend and investment decisions which cast a long term bearing on the operations and performance of a firm.
Answer:
The first action should be to look for the annual reports of the competing companies to analyze them and see what are the competitive advantages of the company in which I am starting to work.
Once the information was found, it would make a comparative chart to contrast the results of one company with another.
Finally, I would prepare the dynamic report to the directors in the company where I work indicating the results of the analysis carried out considering that all the information has been public.
Answer:
In the first quadrant you start at 2, 6 and move 2 units right and 3 units down what point will you end up on?