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3 years ago

How is it possible for a company to show positive net income but go bankrupt? Give one example.

2 answers:

4 0

Yes, it is possible for a company to show positive net income but go bankrupt.There are two types of bankruptcy. The first takes place when the company's outgoing cash is more than the cash which is incoming. It happens when companies stretch their business to complete a particular project and payment does not come in a timely manner. The second takes place when liabilities are greater than assets of an organization. In this case, the company can have a positive net income but cannot continue its business operations without help from investors or the court of bankruptcy.

Akimi4 [234]3 years ago

3 0

It happens when companies stretch their business to complete a particular project and payment does not come in a timely manner. The second takes place when liabilities are greater than assets of an organization.

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Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent c

jeka57 [31]

Answer: $62.50

Explanation:

The stock price of Locked-In Real Estate (LIRE) will be calculated thus:

Stock price = D /ke - g

where,

D = Dividend paid per share = $7.50

Ke = expected rate of return on equity = 12% = 0.12

g is growth rate of dividend = 0

Stock price = $7.50/0.12

Stock price = $62.5

Therefore, the stock price is $62.50

4 0

3 years ago

A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are

DENIUS [597]

Answer:

Total indirect manufacturing cost= $75,450

Explanation:

Giving the following information:

12,000 units:

Variable manufacturing overhead $ 1.50

Fixed manufacturing overhead $ 5.00

<u>First, we need to calculate the total fixed manufacturing overhead:</u>

Total fixed overhead= 5*12,000= $60,000

<u>Now, for 10,300 units:</u>

Total indirect manufacturing cost= 60,000 + 10,300*1.5

Total indirect manufacturing cost= $75,450

7 0

3 years ago

A new tax on gasoline causes a reduction in the purchase of new vehicles with poor fuel economy. This is an example of what type

Ugo [173]

Answer:

Option (C) is correct.

Explanation:

Negative Indirect.

This is due to the indirect affect of tax on the purchase of new vehicle because a new tax on gasoline reduces the consumers incentive to the buy the new vehicles. Therefore, it is a negative indirect incentive.

Also, there is a fall in the number of cars or vehicles purchased because of the tax imposed on the gasoline.

7 0

3 years ago

Organizations have three levels of management: first-line, middle, and top. Each of the managers at these levels has different l

Karolina [17]

Management is of three levels. managerial, middle and top level management.

Explanation:

levels of management can be defined as a part of an organization that maintains responsibility for the overall productivity and the work performance of employees.

Managerial or top level management consists of board of directors. It also consists of the board of directors. Executive or middle level management consist of line or department managers and in this level mostly the managers report top the top level management. next lowest level is the operative or supervisory level management.

Thus mostly consists of supervisors, first line managers. It comes under the organisational hierarchy of a company. top management is responsible and controls the entire organisation.

8 0

3 years ago

Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a prod

Umnica [9.8K]

Answer:

A.The primary value activity outbound logistics.

Explanation:

Outbound logistics is the process of delivering the products to customers. In this process companies need to have a good shipping and delivery system that ensure that the customers receive the product in a timely manner and in good conditions. So, in this case when Sandy Fiero decides to create a service that offers free next day shipping on any order over $50, she is adding value to the outbound logistics.

5 0

3 years ago