Answer:
free cash flow is 2.352 million
Explanation:
Given data:
operating income is $2.30 million
depreciation $1.20
tax rate is 25%
free cash flow is calculated by using below formula
free cash flow = operating income ( 1- Tax) + depreciation - fixed working capital
= 2.75( 1 - 0.25) + 1.20 - 0.6
= 2.352 million
free cash flow is 2.352 million
Answer:
B) Inflation is everywhere and always a monetary phenomenon.
Explanation:
Henry Thornton developed this theory in 1802. According to the Quantity Theory, In an economy, there is a direct relationship between the quantity of money in the economy and the prices of goods and services. The price levels are directly related to the amount of money in circulation, which is the cause of inflation. Hence the consumer has to pay more for the same amount of commodity.
Answer:
The correct answer are the option B and C: Foreign competition would wipe out domestic production and producers are driven by the profit motive to work against competition.
Explanation:
First of all, the huge companies, and that includes the foreign competition, will always wipe out the small ones and that situation will definitely impact in the domestic economy of a country by leaving without work to the other enterprises and their employees, also by increasing prices and obligating to the customers to buy them due to their power in the industry and more. That is why, government regulation is obviously needed in the free-market system because if there is not, then the leader organization will do as they please with the market.
Secondly, the companies are lucrative organization and therefore that the most important thing that they care about is to make money by producing goods or giving services to the community that need it. That is why, if there is not government then the most powerful companies would try to eliminate the small ones by taking all their consumers away.
Answer:
Explanation:
Selling Price Commission Shipping NRV Cost
A 220 220*10% = 22 200*5% = 10 (220-22-10) 188 200
B 260 260*10%=26 240*5%=12 (260-26-12) 222 240
C 240 240*10%=24 120*5%=6 (240-24-6) 210 120
D 300 300*10%=30 160*5%=8 (300-30-8) 262 160
E 140 140*10%= 14 100*5%=5 (140-14-5) 121 100
Therefore ,the unit inventory valuation at lower of cost or net realizable value =
Products Valuation
A 188
B 222
C 120
D 160
E 100
