The Italian government can increase the efficiency of its effluent system by becoming creating a law that makes it illegal to smoke in smoke-free zones.
<h3>What is an Effluent?</h3>
This refers to wastes that are secreted or released into the air, water, or underground channels.
Examples of effluents are:
- Liquid factory waste
- Smoke
- Sewage etc.
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Answer:
$165,000
Explanation:
Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.
The Depreciation is already adjusted in the Cash Flow from operating activities.
Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure
Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000
Current and Long term liabilities has nothing to do in free cash flow calculations.
Answer:
C) Decrease the acid-test ratio
Explanation:
The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.
That is the amount of cash or near cash assets it has to settle it's current debt.
Mathematically
Quick ratio = (Current assets - Inventory) ÷ Current liabilities
If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.
The value of (Current asset - Inventory) reduces.
As the numerator in the ratio reduces, the quick ratio also reduces.
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Answer:
The president of Riggs has missed something.
She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.
Explanation:
<u>Cost of Manufacturing the Sails:</u>
Direct materials $93
Direct Labor $83
Total $173
The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.
Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.
Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity
<u>Conclusion:</u>
The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.
I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.