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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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A car manufacturer ordered 20,000 window assemblies from a supplier. To make sure the assemblies were made to specifications, th

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3 years ago

Wildhorse Construction Company had a contract starting April 2021, to construct a $24900000 building that is expected to be comp

jek_recluse [69]

Answer:

The construction in process amount reported at December 2021 is $13,695,000

Explanation:

In this question, we are asked to state the amount the company will report construction in the process of.

Firstly, we calculate the profit = Total contract price - Expected costs of contract = $24,900,000-$22,900,000 = $2,000,000

The profit in percentage of cost is; 2,000,000/22,900,000 = 8.73%

The costs incurred in 2021 is $12,595,000

The proportionate profit = 12,595,000 * 8.73 = $1,100,000

The construction in process at December 2021 = Cost incurred + Proportionate profit = 12,595,000 + 1,100,000 = $13,695,000

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3 years ago

In the united states, the average person mostly patronizes firms that operate in?

Likurg_2 [28]

In the united states, the average person mostly patronizes firms that operate in Monopolistic Competitive Market.

Monopolistic Competitive Market is a kind of market structure where numerous associations are accessible in an industry, and they produce relative yet isolated things.

None of the association participate in a partnership, and every association work unreservedly no matter what the engaging quality of various association. The market structure is a type of Imperfect Competition.

Imperfect Competition alludes to the circumstance where the characteristics of a market don't satisfy every one of the essential states of an entirely serious market and consequently, it cause market weaknesses when it ends up actually working, and bringing about market disappointment.

To learn more about Monopolistic Competitive Market.

brainly.com/question/15143240

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3 0

2 years ago

What is a sound recorder used for

VLD [36.1K]

It is used to record sounds that you can hear.

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3 years ago

A hospitality company is evaluating building a new hotel in Bloomington (capital project) that management forecasts will generat

Gre4nikov [31]

Answer:

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-165,000

Cash flow in year 1 - 6 = $45,000

I = 12%

NPV = $20,013.33

the project should be approved because NPV is positive

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago