Determinants of long a firm should borrow money include are:
⇒the seasonal environment of the business
⇒the cost of inventory
⇒the cash flow forecast
The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.
To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.
The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.
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Answer:
The taxable income is $13000
Explanation:
The sell by California resident = $10000
The taxable gains = $2000
Given interest rate = $1000
Since during the year total amount received is the return of principal, gains, and interest rate. Therefore total amount = 10000 + 2000 + 1000 = $13000
Thus, the total amount received during the years is California taxable income.
Answer:
Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.
Explanation:
A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.
A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.
A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.
To deal with both positive and negative externalities, government intervention is very crucial.
Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.
In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate the health complications caused by third party inhalation.
Answer:
Amount of underapplied or overapplied overhead cost for the year
$97000 - Underapplied
Schedule of cost of goods manufactured for the year
Direct Material 3885000
Direct Labor 60000
Overheads 376000
Total Manufacturing Costs 4321000
Add Opening Inventory WIP 400000
Less Closing Inventory WIP (700000)
Cost of Goods Manufactured 4021000
Explanation:
Amount of underapplied or overapplied overhead cost for the year
Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead
$473000-$376000= $ 97000
Schedule of cost of goods manufactured for the year
<em>Direct Materials Calculation </em>
Opening 200000
Add Purchases 4000000
Available 4200000
Less Closing Material 300000
Materials Consumed 3900000
Less Indirect Materials 15000
Direct Materials Consumed 3885000
Question Completion:
A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement
B)Decrease Net Cash from Operations on the Cash Flow Statement
C)Increase Net Cash from Operations on the Cash Flow Statement
D)Just impact the balance sheet
Answer:
C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income. In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects. So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.
