Answer:
$54,639
Explanation:
the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows
DATA
Annual payments = 68,830
Implicit rate = 8%
Annuty factor for 4 years at 8% = 3.55710
Present value of lease payment =$246,212 (68830*3.57710
)
Year 1 Year 2
Opening balance - $177,382(w)
interest - $14,191(w)
payments $68,830 $68,830
principal payments $68,830 $54,639
closing balance $177,382(w) $122,743
Working
Closing balance = Present value of lease payment - Annual payment
Closing balance = $256,212 - $68,830
Closing balance = $177,382
Interest = closing balance x implicit rate
Interest = $177,382 x 8%
Interest = $14,190.56
True, If sales revenues are falling and neither equity nor debt capital could be discovered to meet a firm's a need capital, selling off its surplus assets is indeed a reasonable last resort.
What is an Asset?
An asset is a resource with monetary value that an individual, corporation, or country owns or controls with the expectation of future benefit. A company's assets are reported on its balance sheet. They are divided into four categories: current, fixed, financial, and intangible. They are purchased or created in order to increase the value of a company or to benefit its operations. An asset is anything that can generate cash flow, reduce expenses, or increase sales in the future, whether it's manufacturing equipment or a patent. Assets are reported on a company's balance sheet. They are purchased or created in order to increase the value of a company or to benefit its operations. An asset is anything that can generate cash flow, lower expenses, or increase sales, whether it's manufacturing equipment or a patent.
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Answer:
Option D. businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.
Explanation:
The reason is that the corporate strategy manages the subsidiaries and the parent company as well to drive maximum value from the whole business efficiently by effective strategies. The subsidiaries that were generating profits after acquisition of $5000m and before acquisition of $4500m means that the corporate strategy was effectively implemented which helped the whole parent and subsidiary to drive maximum benefits out of its owned assets.
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The flexible budget performance report directs managements attention to areas where corrective action can help control operations. Management uses the report to determine price and quantity variances.
