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Musya8 [376]
2 years ago
15

Red Barchetta Co. paid $27,950 in dividends and $28,941 in interest over the past year. During the year, net working capital inc

reased from $13,746 to $18,469. The company purchased $43,100 in fixed assets and had a depreciation expense of $17,255. During the year, the company issued $25,250 in new equity and paid off $21,350 in long-term debt. What was the company's cash flow from assets
Business
1 answer:
NemiM [27]2 years ago
5 0

Answer:

$52,991    

Explanation:

The computation of the cash flow from assets is shown below:

As we know that

Cash flow from assets =  cash flow to shareholders +  cash flow to creditors

where,  

cash flow to shareholders

= Dividend paid - new equity issued

= $27,950 - $25,250

= $2,700

And, the cash flow to creditors  is

Cash flow to creditors = Interest paid - closing balance of  long term debt + beginning balance of long term debt

= $28,941 - 0 + $21,350

= $50,291

So, the cash flow form assets is

Cash flow from assets =  cash flow to shareholders +  cash flow to creditors

= $2,700 + $50,291

= $52,991    

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Explain how each of the five pillars of sustainable change could be applied to sustain the learning organization environment of
Vanyuwa [196]

Answer:

Following are the five pillars of sustainable change could be applied to sustain the learning organization environment of the company:

1) Leadership

2) Strategy

3) Culture

4) Structure

5) System

Explanation:

1) Leadership

Leadership provides the way forward for sustainable change i.e. they show the right direction to their employees . They will develop strategies to keep the momentum going within the learning environment that has now been created. Leadership will coach and mentor individuals, teams, and departments to keep the new systems in alignment and working well together.

2) Strategy

By strategizing means to get positioned itself as a market leader or more customer centric . In order to maintain the competitive edge, development of new learning organizational structure to make good use of all employee knowledge for changes in the market and especially for efficiencies and continuous improvements in operations.

3) Culture

Culture will include the attitude of open communication, a willingness to always be open minded, an encouragement for create thinking and sharing new ideas or conflict, and to support the value of lessons learned from mistakes. It will set the tone for the importance of working together toward a common goal, and will be dedicated to recognizing accomplishments to inspire innovation.

4) Structure

Deciding about the best organizational structure, say the flat one. This will allow employees to communicate freely, share knowledge in real time and work and problem solve cross-functionally. Since the company promotes culture that encourages creative thinking, the employees are confident their talents are being used at the highest capacity to support the company’s drive for continuous improvement.

5) System

As part of the change management project, reliance on new technologies and system is increasing, and using of expert and decision making system, stronger controls can be in placed which would be asset to the learning organization.

5 0
2 years ago
Adams Corporation's present capital structure, which is also its target capital structure is
kaheart [24]

Answer:

Task a:

The answer is $24,500.

Task b:

The answer is 17%

Explanation:

<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST  component cost of EQUITY?</h3><h3>Solution:</h3>

We already know the following:

Projected net income = $21,000

Payout ratio = 30%

Retention ratio = 70%

Debt share = 40%

Equity share = 60%

Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×\frac{Retention ratio}{Equity share}

= $21,000 × \frac{0.70}{0.60}

= $24,500

<h3>Answer:</h3>

The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.

<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>

k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth

Formula:

k(e) = \frac{Do(1+g)}{P(1-0.20)} + 0.05

Where

Do = $2.00

G = 0.05

P = $21/88

= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05

= ($2.10/$21.88(1-.20)) + 0.05

= ($2.10/$21.88(0.80) + 0.05

= 0.17 or 17%

<h3>Answer: </h3>

The component cost of equity by selling new common stock = 17%

5 0
2 years ago
Partial balance sheets and additional information are listed below for Monaco Company. Monaco Company Partial Balance Sheets as
Studentka2010 [4]

Answer:

Net Purchases = Cost of goods sold - Decrease in Inventory

                        = $308,000 - $16,500

                        = $291,500

Cash paid to Suppliers = Net Purchases + Decrease in accounts Payable

                                      = $291,500 + $13,500

                                      = $305,000

The summary entry is as follows:

Merchandise Inventory A/c Dr. $291,500

Accounts payable A/c          Dr. $13,500

To cash                                                              $305,000

(To record the amount of cash paid to merchandise suppliers during 2018)

                                       

5 0
2 years ago
The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by _
aleksandr82 [10.1K]

Answer:

The correct answer is letter "A": the social business environment.

Explanation:

The social business environment includes the society inhabitants' believes, customs, and lifestyles. It determines how businesses are handled in different regions worldwide. When it comes to low costs of labor, it might be beneficial for some companies that can open subsidiaries there to lower production costs but it also represents a struggle for some other firms because their products seem unreachable because of the low wages people earn.

7 0
2 years ago
Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below
xenn [34]

Answer:

The large application should be produced first by management in order to incorporate short run profit maximizing strategy.

Explanation:

In order to maximize profit in the short run by management, we need to calculate the unit profit per machine hour for each appliances. Using the following formulae, as shown below:

Unit Profit / Machine-hours per unit = Unit Profit per Machine hour

<u>Small Application</u>

40 / 20 = $2 per machine hour

<u>Medium Application</u>

115 / 40 = $2.875 per machine hour

<u>Large Application</u>

340 / 100 = $3.4 per machine hour

As per the above calculation the large application gives the highest profit per machine hour so should be produced first. Afterwards if any machine hour is left then medium application should be produced second and finally, small application third.

5 0
2 years ago
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