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drek231 [11]
2 years ago
7

Len Corp. reported net sales of $300 million last year and generated a net income of $66 million. Last year’s accounts receivabl

e increased by $29 million. What is the maximum amount of cash that Len Corp. received from sales last year?
Business
1 answer:
Anna71 [15]2 years ago
5 0

Answer:

$37,000,000

Explanation:

When you are preparing a statement of cash flows, you start with net income and then make all necessary adjustments that include any changes in accounts receivables.

Cash flow from operating activities:

Net income                                                $66,000,000

Adjustments to net income:

Increase in accounts receivable             <u>($29,000,000)</u>

Net cash flows from operating activities $37,000,000

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A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $ 80 per​ tire, pa
nignag [31]

Answer:

$4,372.71

Explanation:

Here for reaching the difference in PV between the first and the second offer first we need to follow some steps which is shown below:-

Step 1

Total payment due = Per tire × Bought tires

= $80 × 600

= $48,000

Step 2

Present value factor of 8.4% for 1 year = 1 ÷ (1 + Rate of interest)^Number of years

= 1 ÷ (1 + 8.4%)^1

= 1 ÷ (1 + 0.084)^1

= 1 ÷ 1.084

= 0.92251

Step 3

First offer

Present value = Total payment due × Present value factor of 8.4% for 1 year

= $48,000 × 0.92251

= $44,280.48

Step 4

Second offer

One year payment = Bought tires × Per tire

= 600 × $45

= $27,000

Step 5

Present value = One year payment × Present value factor of 8.4% for 1 year

= 27,000 × 0.92251

= $24,907.77

Step 6

Total present value = Present value of second offer + Tires cost

= $24,907.77 + $15,000

= $39,907.77

Here we can see that first offer is higher than second offer

So,

The difference between the first and the second offer = First offer - Second offer

= $44,280.48 - $39,907.77

= $4,372.71

7 0
2 years ago
if a company spends 40m to install new footwear making equipment with capacity to produce 2 million pairs of athletic footwear a
Mrrafil [7]

Answer:

The annual depreciation cost the facility will rise by 10% or $4,000,000.

Explanation:

Annual depreciation = \frac{Cost of equipment - Estimated salvage value}{Useful life}

Annual depreciation = \frac{40 - 0}{10}

Annual depreciation = 10% or $4,000,000

4 0
2 years ago
four ways in which the government can ensure that Road Accident Fund benefits are given to deserving beneficiaries
OLga [1]

1)   Road accident officials may visit the claimant in person, to confirm the authenticity of the claim.

 

<span>2)   The RAF should reinstate their existing system (the fault-based compensation system) with a new system proposed in the high court, called the Road Accident Fund Benefit Scheme (RABS) – a no fault benefit system – that will pardon the affected driver from civil liability.</span>

 

<span>3)   Certify that there is slight intermediary intervention as possible. For instance, lessen the amount that lawyers take as a cut from pay-out.</span>

 

<span>4)   Utilize more efficient employees, who can make certain that the administrative side of the RAF runs as reasonably and smoothly as possible, with as little deceitful behavior and corruption as possible.  </span>

<span> </span>

3 0
2 years ago
Read 2 more answers
If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, i
Lelechka [254]

Answer:

Rises

Explanation:

If labor demand is downward sloping and labor supply is upward sloping , then when labor demand rises faster than labor supply , it is expected that real wages rises.

Labor demand is downward sloping means the demand for labor in the market is less as compared to the supply of labor which is high as compared to its supply so when the demand starts rises faster as compared to the supply then the available labor been less in quantity gets a chance to demand for high wages because of monopoly competition .

7 0
2 years ago
The owner of supermarket chain Reynold's wants to offer nonfood items such as greeting cards and magazines. However, Reynold's d
Elis [28]

Answer:

E) rack jobbers.

Explanation:

Rack jobbers is defined as a company or trader that has an agreement with a seller to display their products in the retail stores and sell them. Usually channels used are not the traditional channels used to sell the products and can include: gas stations, grocery stores.

In such instances the profit realised is split between both parties. For example if Procter and Gamble provide a product rack to a grocery store this is called rack jobbers.

This will be Reynold's best option as he does not want to take care of setting up displays and maintaining inventory records.

6 0
2 years ago
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