Answer:
Correct option is E.
Explanation:
There is not enough information to calculate the amount.
Net operating asset= Operating Assets - Operating Liabilities
=$5489 Million - $2066 Million
=$3423 Million
Hence Average net operating assets can't be calculated by given information.
Answer:
Profit
Explanation:
The term profit is a term used to describe financial gain. The profit is the difference between the amount of money earned on a business transaction involving the sale of an item or service, to the amount spent to produce, to procure, or the put in a function condition.
In the question, the amount consumed or spent to make the product = $3,000
The amount for which the product was sold = $ 4,000
The profit = 4,000 - 3,000 = $1,000.
Answer:
E. They rarely produce net cash flows.
Explanation:
When a company engages with <em>capital budgeting</em>, it assesses potential and planned investments. The goal of each investment is to produce a difference in cash inflows vs. cash outflows, which is the net cash flow.
Therefore, all investments have a tendency of producing a cash flow, since that is the reason why companies opt for capital budgeting (investments) in the start.
It is true that the outcome of capital budgeting is uncertain. Also, it requires significant financial resources, and is a long-term decision.
Answer:
$2475000
Explanation:
The computation of the cost of goods sold for the June month is shown below:
As it is given that total sales of June is $2,970,000
And, the marked up is cost plus 20%
So based on the above information, the cost of goods sold is
= $2,970,000 × 100 ÷ 120
= $2,475,000
Therefore, all the other information which is given is not relevant. Hence, ignored it
