Answer:
$620,000
Explanation:
to determine the net cash flow generated by the project, we can use the indirect method to determine cash flows:
net income = $790,000 x (1 - 30%) = $553,000
net income adjustments:
- depreciation expense $190,000
- increase in accounts payable $42,000
- increase in accounts receivable ($79,000)
- increase in inventory <u> ($86,000) </u>
Project's cash flow $620,000
Without the With the change
project project
Accounts receivable $5,000 $84,000 $79,000
Inventory $98,000 $184,000 $86,000
Accounts payable $75,000 $117,000 $42,000
<span>This is a tricky question, because
most of the answers provided are correct. For instance, by raising taxes, the
government drops down the demand rates, as well as by decreasing the money
supply (in that case, it also prevents economy from falling into an inflating
situation). As for balancing the budget, this economical move entails
decreasing the public expenditure and, therefore, contracting the demanding economical
figures too. </span>
Answer:
The correct answer is (A)
Explanation:
Managers are frequently called upon to make decisions. Making a decision is critically important for the success of a business; that is why it is crucial to evaluate the choices in detail. Examining the pro and cons of a decision leads towards a better conclusion. Decision-making process involves various steps, such as identifying, gathering information, choosing from alternatives, implementing the decision, and lastly to analyse the results.
Answer: a - the management and board of directors of the targeted firm disapprove of the proposed merger
Explanation:
A hostile takeover is a situation where the board of directors and senior managers are against the proposed merger.
There are several pre-offer takeover defense mechanisms. One of them is the golden parachute.
The golden parachute is a compensation agreement between a firm and its senior managers. The firm promises a very lucrative amount of money if the senior managers leave the firm if there's a change of control.
There are also post offer takeover defense. They include:
A. The crown jewel - in a crown jewel the firm sells off a subsidiary or an asset to a third party in an effort to mitigate the hostile take over.
B. Greenmail - the target buys its shares back from the acquiring company at a price higher than the market price. This is done with an agreement that the acquirer leaves the target company. It is a form of payoff by the target company.
