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3 years ago

Explain the impact of effective purchasing on an operation’s cash flow.

Business

1 answer:

Paraphin [41]3 years ago

8 0

Answer:

Thus, effective purchasing Implies buying the right items needed for operations at the right/fair price so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.

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For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP

vlada-n [284]

Answer:

The purchase of the video game would increase consumption spending

The computer system upgrade would increase the investment spending by businesses

The firework would increase government spending

Darnel imported the wine. So, imports would increase Also, consumption spending would increase

The purchase of the syrup would increase export. The syrup was bought by someone in Sweden

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

The purchase of the video game would increase consumption spending

The computer system upgrade would increase the investment spending by businesses

The firework constitutes spending by government. government spending would increase

Darnel imported the wine. So, imports would increase Also, consumption spending would increase

The purchase of the syrup would increase export. The syrup was bought by someone in Sweden

4 0

4 years ago

Quality home made ice cream has plans to pay decreasing annual dividends of $1.50, $1.25, and $1.00 over the next three years, r

Maurinko [17]

i think the answer is 5

7 0

4 years ago

Matured Water Services had net income for the month of October of $ 50 comma 880. Assets as of the beginning and end of the mont

Lelu [443]

Answer:

12%

Explanation:

Given that,

Net income = $50,880

Asset at the beginning = 362,000

Asset at the end = 486,000

Average total assets:

= (Asset at the beginning + Asset at the end) ÷ 2

= (362,000 + 486,000) ÷ 2

= $424,000

Therefore,

ROA = Net income ÷ Average total assets

= $50,880 ÷ $424,000

= 0.12 or 12%

Therefore, the Matured Water Services' ROA for the month of October is 12%.

3 0

3 years ago

Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purch

geniusboy [140]

Answer:

Since the cost of financing for leasing is higher than buying, Amanda she should finance the car.

Explanation:

Solution

Buy versus Lease problem:

Now,

Buy case

The Purchase price = Gross capitalized cost = $30,000

The Down payment = $3300

The Present value of borrowing from credit union = 30,000 - 3300 = $26700

The EMI payment = $614.88,

No of months = 48, Annual percentage rate (APR) = 5%

The Monthly Percentage rate = 5%/12 = 0.4%

Then

We find future value at the end of 48 months

By applying Excel,

PV=26700, N=48, I/Y=0.4%, PMT=614.88

FV = -0.14079 which is approximate to Zero (given that EMI payment was rounded off to digit of 2 , FV has resulted slightly differ from zero)

So, at the end of four years, the car has no residual value as per the buy option.

The Finance charges of borrowing the car = Sum of all the EMI payments – principal payment

= $61488*48 - 26700 = $2924.724

The lease case

The cost reduction capital= $3300 (capitalized cost is paid by customers to decrease the rate of lease while leasing cars)

Fee disposition on the car = $350

The Residual value = $12,400

Then,

PV = $30,000 - $3300 = $26,700, EMI = $330, Number of months leased = 48

FV = Residual value – Disposition fee = $12,400 - $350 = $12,050

The cost of dollar of leasing = Sum of all the payments of EMI - payment based on principal value at the end of the lease period = 330 * 48 – (26700 – 12050) = $1190

Therefore, since the cost of financing for leasing is higher than buying, Amanda she should finance the car.

4 0

3 years ago

Individual Activity 1: Marty and the Martins

Vesna [10]

Answer:

that is cool.

7 0

3 years ago

Read 2 more answers