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irinina [24]
2 years ago
10

Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instea

d of completely shutting down?
Business
1 answer:
vladimir1956 [14]2 years ago
3 0

Answer:

see below

Explanation:

A firm may either opt to shutdown or declare bankruptcy if its making losses.  A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.

Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.

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Hi-Tech, Inc., reports net income of $65.0 million. Included in that number are depreciation expense of $5.5 million and a loss
Greeley [361]

Answer:

Net Cash Flows from operating activities is $68.5 million.

Explanation:

The indirect Method would be used here because all we will find the cash expenses and revenues that were converted into within the year and are reported in the income statement by calculating the increase and decrease in the current assets and current liabilities. Here we will also eliminate the non cash expense effects by adding them back.

The net cash flows from operating activities can be calculated using the following method:

                                                                 Millions

1. Net Income                                                65

<u>Add Non Cash Deductions</u>

2. Depreciation                                             5.5

3. Loss on sale of Equipment                       1.5

<u>Add / (Less) the increase or </u>

<u>decrease in current Assets or </u>

<u>liabilities</u>

4. Increase in Trade Receivables                (2.5)

5. Increase in Trade Payables                      3.5

6. Increase in inventory                               <u> (4.5) </u>

Net Cash Flows from operating activities $68.5

4 0
3 years ago
Spade and Marcher Corp. manufactures and sells toy guns. These toy guns are a perfect imitation of real weapons. Inspired by Spa
VMariaS [17]

Answer:

analyzer

Explanation:

This strategy is used by companies wishing to gain market share. It is a moderate aggressive strategy, as it presents low aggregate risks, and innovation is not a very relevant factor in companies that use the analyzer strategy. Companies seek to provide a production of goods already in the market, with modifications and differentiations.

3 0
3 years ago
Federal reserve policy to increase the supply of money and hence to lower the interest rate from 6% to 4%, is accomplished by ac
sveticcg [70]
The answer is
im gay and i want to die
6 0
3 years ago
How are the project management processes that surround Scrum similar to and different to how the project management processes su
timurjin [86]

Answer: The answers are provided below

Explanation:

There are several similarities between the project management processes which surround scrum to the traditional project management processes which surrounds a project life cycle such as Waterfall. When one looks at each iteration as a project, one will see that Scrum planning meeting will be identical to planning meeting of the traditional project.

The daily standups in scrum will resemble the monitoring and the controlling of traditional waterfall with the exception that in scrum, its team monitors itself. A sprint would be the execution stage while the sprint review will be like project closure lessons that are learned. Sprint can be seen as small waterfall model project.

However, the main difference is in the scrum's team mindset versus the team of the traditional project management. Also, the process of work defining as being completed is different for the teams. Lastly, the method used by the scrum team in its approaches to work, team collaboration, responsibility acceptance, tasks definition and accountability are different from the traditional project management team.

A hybrid approach will be sensible in a large organization which has pockets of power. This is true for large retails that have old legacy systems in which frequent deployments aren't possible.

This is true for systems in which, testing can't be automated due to the fact that automated testing is a vital part for success for large scrum projects. In such organizations, it is sensible to use scrum for the teams which are able to move to scrum and waterfall can be used for other parts of the organization.

6 0
2 years ago
DonCo, Inc. sold merchandise on January 14, and accepted a 90-day, 5% promissory note in the amount of $5,000. On January 14, th
svetoff [14.1K]

Answer:

The required entries on 14 January is as follows:

Dr Notes receivable    $5,000

Cr Sales                                     $5,000

Explanation:

No doubt by selling the merchandise a sale transaction has been discharged since the ownership of the goods has changed hands between the seller and the buyer,hence the seller can record a sale by crediting sales account.

However, since the cash has not been received nor is the transaction a mere credit sale where accounts receivable would been debited,neither the cash nor accounts receivable can be debited.

The debit goes to the notes receivable account, without considering the interest as the interest is considered later on when payment becomes due.

4 0
3 years ago
Read 2 more answers
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