Homework Answers
Option A is correct ie. Cash flow will decline
As there is decrease in revenue by 25%, cash flows will decrease
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15. Revenues from product sales at your company decrease by 25%, which of the following will...
9. Which one of these statements is correct? A) Total revenues generally decrease if both the...
9. Which one of these statements is correct? A) Total revenues generally decrease if both the quantity sold and the price per unit increase when credit is granted. B) A firm's cash cycle generally decreases when it switches from a cash to a credit policy, all else equal. C) A firm may have to increase its long-term borrowing if it decides to grant credit to its customers D) Most customers will forgo the discount and pay at the end of...
Your corporation is considering investing in a new product line. The annual revenues (sales) for the...
Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be $176,500.00 with variable costs equal to 50% of these sales. In addition annual fixed costs associated with this new product line are expected to be $43,655.00 . The old equipment currently has no market value. The new equipment cost $55,504.00 . The new equipment will be depreciated to zero using straight-line depreciation for the three-year life of...
An increase in which one of the following will decrease the cash cycle, all else equal?...
An increase in which one of the following will decrease the cash cycle, all else equal? O Operating cycle O Accounts receivable period O Days sales in inventory O Inventory turnover rate O Payables turnover
QUESTION 14 During April 2020, a company had the following transactions: Credit sales of $2,400 (cost...
QUESTION 14 During April 2020, a company had the following transactions: Credit sales of $2,400 (cost of goods sold $1,000). Received $300 from a customer for services that will be provided in May. Purchased inventory for $4,500 paid $2,700 and the rest will be paid in 30 days. Purchased and paid $560 supplies still on hand Paid $960 in wages Net cash flow from operating activities for April 2020 is? ОА ов. Ос. OD. cash outflow of $3.920 cash outflow...
A decrease in which one of the following will increase the cash cycle, all else held...
A decrease in which one of the following will increase the cash cycle, all else held constant? a. Payables turnover b. Days sales in inventory c. Operating cycle d. Inventory turnover rate e. Accounts receivable period
Factor Company is planning to add a new product to its line. To manufacture this product...
Factor Company is planning to add a new product to its line. To manufacture this product the company needs to buy a new machine at a $180,000 cost with an expected four year life and a $20,000 salvage value. All sales are for cash, and all costs are out-ofpocket except for depreciation on the new machine. Additional information includes the following (PV of $1. FV O $1. PVA of $1 and FVA OF $1) (Use appropriate factor(s) from the tables...
12. Under the new method of accounting, service revenues are reported on the income statement in...
12. Under the new method of accounting, service revenues are reported on the income statement in the period in which an agreement is made on cash is received the services are performed 13. A sale is made with credit terms that allow the customer to pay in 30 days. Under the accrual method of accounting the account to be credited at the time of the sale is Accounts Receivable Cash Sales 14. When the company receives the money from its...
Answer true of false to each of the following. briefly explain your reasoning for each answer...
Answer true of false to each of the following. briefly explain your reasoning for each answer a. All else equal, increasing the projected amount of accounts receivable in a financial forecast will increase external funding required. b. Estimates of external funding required based on cash flow forecasts are usually higher than estimates based on pro forma financial statements. c. An annual financial forecast for 2018 showing no external funding required assures a company that no cash shortfalls are likely to...
All else held constant, which one of these is most apt to decrease the average cost...
All else held constant, which one of these is most apt to decrease the average cost of capital (WACC) of a leveraged firm? a) An increase in a market's average return b) A decrease in the tax rate c) An increase in the treasure rate when the firm's equity beta > 1 d) An increase in the firm's risk and equity beta
Question text XYZ Company, a 'for-profit' business, had revenues of $15 million in 2018. Expenses other...
Question text XYZ Company, a 'for-profit' business, had revenues of $15 million in 2018. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.3 million. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. What was XYZ's total cash flow? Hint: Look at the PowerPoint, Homework Hint, especially as it relates...
9. Which one of these statements is correct? A) Total revenues generally decrease if both the quantity sold and the price per unit increase when credit is granted. B) A firm's cash cycle generally decreases when it switches from a cash to a credit policy, all else equal. C) A firm may have to increase its long-term borrowing if it decides to grant credit to its customers D) Most customers will forgo the discount and pay at the end of...
QUESTION 14 During April 2020, a company had the following transactions: Credit sales of $2,400 (cost of goods sold $1,000). Received $300 from a customer for services that will be provided in May. Purchased inventory for $4,500 paid $2,700 and the rest will be paid in 30 days. Purchased and paid $560 supplies still on hand Paid $960 in wages Net cash flow from operating activities for April 2020 is? ОА ов. Ос. OD. cash outflow of $3.920 cash outflow...
Factor Company is planning to add a new product to its line. To manufacture this product the company needs to buy a new machine at a $180,000 cost with an expected four year life and a $20,000 salvage value. All sales are for cash, and all costs are out-ofpocket except for depreciation on the new machine. Additional information includes the following (PV of $1. FV O $1. PVA of $1 and FVA OF $1) (Use appropriate factor(s) from the tables...
12. Under the new method of accounting, service revenues are reported on the income statement in the period in which an agreement is made on cash is received the services are performed 13. A sale is made with credit terms that allow the customer to pay in 30 days. Under the accrual method of accounting the account to be credited at the time of the sale is Accounts Receivable Cash Sales 14. When the company receives the money from its...
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