Answer:
In general, the higher the total asset turnover and the lower the capital intensity ratio, the more efficient the overall asset management of the firm will be.
Explanation:
Asset Turnover = Net Sales / Total Asset
Capital Intensity = Total Asset / Net Sales
According to the above formulas most efficient situation will be to increase the asset turnover and decrease the capital intesity ratio because they are reciprocal to each other, so thses will behave inversly with each other. Higher turnover means the higher sales using total asset and lower capital intensity ratio means asset are lower timesto the net sales which is an efficient use of asset.
Answer:
B. agreements between two or more parties
Explanation:
if you were to sign a contract for something huge and you were broke the contract before you had finish the time that you had signed whom ever you signed it could end in a law sue and maybe even jail time.
Hope this helps :)
Answer:
Sales Revenue 212,000
Variable Cost (63,000)
Rent Expense (43,000)
Depreciation Expense (23,000)
Income before taxes 83,000
Income tax expense <u> (16,600) </u>
Net Income 84,800
Cash from operating activities 107,800
tax-shield from depreciation 4,600
Explanation:
Cash flow from operations (indirect method)
net income 84,800 + depreciation expense = 107,800
The depreciation provides a tax shield as they are an accounting concept. The depreciation expense did not involve the outflow of cash but, it is a taxable deduction therefore generates a tax-shield.
23,000 x 20% = 4,600
The main mechanism that regulates the market system is the
government. It is because they are the one that sets up and regulates the
system and allows the mechanism of the system to continue as the government is
the one that enforces and controls the demand and supply in the market system.
