Answer:it ignores cash flows following the payback period
Explanation:
The payback method of budgeting does not consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.
Also, Many capital investments provide complexity of cash flows as a result of investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.
The large number of the population in childbearing age
Answer:
a. predicting the current salary of an employee, given the initial salary and the number of years the employee has been in his or her current position
b. predicting the number of home runs a baseball player will hit in the next season, given the number of home runs the player hit in the previous season and the number of doubles the player hit in the previous season
Explanation:
Multiple regression is a regression method that is employed to to predict the value of a variable, called the dependent variable, based on the value of two or more other variables, called the independent variables.
From the question, on the following two options have one dependent and at least two independent variables as indicated below:
a. "<em>the current salary of an employee</em>" is the dependent variable. "<em>the initial salary</em>" is the first independent variable, and "<em>the number of years the employee has been in his or her current position</em>" is the second independent variable.
b. "<em>the number of home runs a baseball player will hit in the next season</em>" is the dependent variable. "<em>the number of home runs the player hit in the previous season</em>" is the first independent variable, and "t<em>he number of doubles the player hit in the previous season</em>" is the second independent variable.
Answer:
$2,730,000
Explanation:
The opening cash balance is netted off the cash flows from all activities namely; Operating, investing and financing activities to get the closing cash balance.
The operating activities includes elements such as net income, depreciation and amortization, changes in working capital etc.
Given;
Net income = $2,500,000
Depreciation = $160,000
accounts receivable decrease = $350,000 (inflow of cash)
accounts payable decrease = $280,000 (outflow of cash)
net cash provided by operating activities using the indirect approach
= $2,500,000 + $160,000 + $350,000 - $280,000
= $2,730,000
Answer:
1. Attached is the Stockholder's equity section of the company's balance at the end of the current year.
Preferred stock = 2,500 (half of 5,000) were issued at par value of $100 each = 2,500 * 100 = $250,000
Additional Paid in capital for Preferred stock = (103 - 100) * 2,500 = $7,500
Common stock = 59,000 issued at stated value of $2 = 59,000 *2 = $118,000
Additional Paid in capital for Common stock = (22 - 2) * 59,000 = $1,180,000
2. The Stockholder's equity section is prepared with the book values of the relevant entries. As such, it WILL NOT be affected by changes in market value.
