Answer:
c. it ignores all cash flows after the payback period
d. it ignores the time value of money.
Explanation:
Payback period as far as capital budgeting is concerned can be regarded as time that is required for recouping of funds that is been expended during setting up of an investment, or the funds required to get to break-even point. It should be noted that weaknesses of the payback period are;
✓. it ignores all cash flows after the payback period
✓ it ignores the time value of money.
Answer: Form 8-K
Explanation:
An 8-K is a report the corporate changes that happens at an organization. The information given in form 8-K is important to the shareholders of the organization and also to the Securities and Exchange Commission.
Events such as bankruptcy, acquisitions, resignation of directors can all be seen in the report.
Answer:
$45,350
Explanation:
Follow the Company`s collection history to determine the November Cash Collection.
November Cash Collection :
Collected in month of sale - 15% x $45,000 $6,750
Collected for 1st month after sale - 60% x $51,000 $30,600
Collected for 2nd month after sale - 20% x $40,000 $8,000
Total $45,350
Therefore,
The cash Justin can expect to collect in November is $45,350
Answer:
Direct method
Explanation:
There are three types of activities in the cash flow statement under the direct method
1. Operating activities: It records those transactions which are related to the cash receipts and cash payments.
Like:
Cash flow from Operating activities
Collections from customers
Less: Cash paid to suppliers and employees
Less: Interest and taxes paid
Net Cash flow from Operating activities
2. Investing activities: It records those activities which include purchase and sale of the long term assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
Strict, which is the highest level of scrutiny is the level of scrutiny affirmation action policies must meet.
There are 3 levels of scrutiny:
1) Strict (highest level)
2) Intermediate (a little less demanding)
3) Rational Basis Review (lowest level)
