BUSINESS COLLEGE

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts payable will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project

Answers

Answer 1
Answer:

Answer: Increase by $3,500

Explanation:

The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.

Raw materials are current assets and Accounts Payable are current liabilities.

The Net working capital resulting from accepting this project is;

= 12,000 - 8,500

= $3,500

Net Working capital investment would increase by $3,500.

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What is the future value of an annuity due that pays $550 per year for 18 years? Use an annual interest rate of 8.00%.

Answers

Answer:

$22,245.44

Explanation:

For computing the future value we need to apply the future value which is to be shown in the attachment below:

Provided that,  

Present value = $0

Rate of interest = 8%

NPER = 18 years

PMT = $550

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after  applying the above formula, the future value is $22,245.44

A company's sales forecast would likely consider all of the following factors except: advertising and pricing policies. top management's attitude toward decentralized operating structures. general economic and industry trends. competition. political and legal events.

Answers

Answer:

The correct answer is letter "B": top management's attitude toward decentralized operating structures.

Explanation:

A sales forecast is an estimate of the sales a company projects to process during a given period. This is done so that the firm can have an idea of the resources necessary to produce a determined amount of output from where the company can profit a margin that allows keep the business up and running satisfying stakeholders and employees' expectations.

While creating a sales forecast it is important to consider events that could affect the regular operations of the business such as government regulatory policy changes, competition, and the economy of the industry. Top executives' attitudes towards operating structures are irrelevant for such a purpose.

Answer:

top management's attitude toward decentralized operating structures.

Explanation:

Your tax client Chen asks whether it is likely that her Form 1040 will be audited this year. You suspect that Chen might modify the information she reports on her return based on your answer. Address Chen's question, and provide her with a justification to comply fully with the tax law's reporting requirements.About 1% of (all corporate tax returns/ all individual tax returns/ all tax returns) are audited in a given tax year. However, certain types of both taxpayers and income are subject to much higher probabilities of audit. The ethical tax professional (does/ does not) play the "audit lottery" and lower his or her reporting standards because of a perception that such actions "will not be caught." In addition, the tax professional (should/ should not) allow clients to do so.

For example, the IRS has developed ways of (document matching/ maximizing income) where Treasury can determine if a transaction has been properly reported by comparing (related party information/ third party information/ yearly averages) to relevant taxpayers' returns for the year.

Answers

Answer:

Fewer than 1% of all individual tax returns are audited in a given tax year. However, certain types of both taxpayers and income—including, for instance, high-income individuals, cash- oriented businesses, real estate transactions, and estate- and gift-taxable transfers—are subject to much higher probabilities of audit. The ethical tax professional does not "play the audit lottery" and lower his/her reporting standards because of a perception that such actions "will not be caught," nor should the tax professional allow clients to do so.

Explanation:

Fewer than 1% of all individual tax returns as well as all corporate tax return are been audited in a given tax year.

However, certain types of both taxpayers and the income for example high-income individuals, cash- oriented businesses, real estate transactions, estate as well as gift-taxable transfer are often subject to much higher probabilities of audit.

Furthermore the ethical tax professional does not "play the audit lottery" and lower his/her reporting standards because of a perception that such actions "will not be caught," nor should the tax professional allow clients to do so which is why thethe IRS has developed ways of document matching/ maximizing income in which Treasury can help determine if a transaction has been properly and effectively reported by comparing all related party information, third party information and yearly averages to relevant taxpayers' returns for the year.

The term __________ refers to the supplemental information provided in a proposal. It often includes examples of past projects, client testimonials, and technical specifications.A. overview
B. references
C. executive summary
D. appendices

Answers

Answer:

D. appendices

Explanation:

The term appendices refers to the supplemental information provided in a proposal. It often includes examples of past projects, client testimonials, and technical specifications. Appendices basically provide the readers with the additional information which help them in better understanding the proposal in a greater detail. It is combination of additional and supplementary materials which includes the results of the past projects, testimonials, supportive data  and other technical specification of the project, which can't be included in the main body of the proposal.

Final answer:

The term for supplemental information in a proposal, including examples of past projects, client testimonials, and technical specifications, is appendices. These provide detailed information that could distract if included in the main proposal.

Explanation:

The term that refers to the supplemental information provided in a proposal, often including examples of past projects, client testimonials, and technical specifications, is D. appendices. An appendix serves to provide detailed information that might be diverting if it was included in the general proposal. For instance, complex diagrams, in-depth market research, or technical specifications might be better situated in the appendix. This allows a proposal to remain simultaneously detailed yet focused, and maximises its efficacy in persuading readers. An appendix serves to provide detailed information that might be diverting if it was included in the general proposal. For instance, complex diagrams, in-depth market research, or technical specifications might be better situated in the appendix. This allows a proposal to remain simultaneously detailed yet focused, and maximises its efficacy in persuading readers.

Learn more about appendices here:

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If Wild Widgets, Inc., were an all-equity company, it would have a beta of .95. The company has a target debt-equity ratio of .40. The expected return on the market portfolio is 11 percent and Treasury bills currently yield 3.5 percent. The company has one bond issue outstanding that matures in 15 years and has a coupon rate of 6.5 percent. The bond currently sells for $1,080. The corporate tax rate is 21 percent.Required:
a. What is the company's cost of debt?
b. What is the company's cost of equity?
c. What is the company's weighted average cost of capital?

Answers

Answer:

see explanation

Explanation:

a. The company's cost of debt

Cost of Debt = Total after tax cost

b. The company's cost of equity?

Cost of equity = Return from risk free + Beta x Market Premium

c. The company's weighted average cost of capital

weighted average cost of capital = Weighted Cost of Debt + Weighted Cost of Equity

The basic promotion objectives and adoption process fit very neatly with an action-oriented model, which is called theA) bricks and clicks model.
B) bait and hook model.
C) AIDA model.
D) DAGMAR model.
E) economic buyer model.

Answers

Answer:

C) AIDA model.

Explanation:

AIDA model which the complete words are

✓attention( seek the attention of potential buyer)

✓interest(know their interest)

✓desire

✓action.

Can be regarded as a model that has been in existence since 19th century, which is engaged in marketing to analyze the process the steps/process that consumer follow when making a purchase on a particular goods/product. It should be noted that the The basic promotion objectives and adoption process fit very neatly with an action-oriented model, is called the AIDA model.
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