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Ilya [14]
1 year ago
13

Explain the impact of effective purchasing on an operation’s cash flow.

Business
1 answer:
Paraphin [41]1 year ago
8 0

Answer:

Thus, effective purchasing Implies buying the right items needed for operations at the right/fair price so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.

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Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits o
igomit [66]

Answer:

Explanation:

Balance as per cash book =                             6,650

Deduct uncleared check            (450)

Check 323                                      (650)

Rent                                                 ( 1200)

Interest                                              165

Titanic payment not captured        5,500

Service fee                                        (100)

Total adjustment                                                      3,265

Adjusted balance                                                     9,915

Balance as per bank statement                               10,665

Cash receipt                                     1250

Check 325                                        ( 450)

Check 327                                         (1550)    

Total adjustment                                                       (750)

Adjusted balance                                                       9,915

b)

Cash adjustment

Uncleared customer check

Debit customer = 450

Credit Cash   = 450

Advertising

Debit Advertising     650

Credit Cash               650

Rent

Debit rent                   1200

Credit Cash                1200

Interest

Debit cash                                   165

Credit interest expenses             165

Payment from Titanic

Debit cash                     5,500

Credit Oscar                  5300

Credit  Interest  exp.       200

Service fee

Credit cash                    100

Debit service charges   100

4 0
2 years ago
When launching any technology product, a firm such as GoPro must create a balance between what is technically possible and wheth
guapka [62]

Answer:

Whether the technology provides benefits and responds to customers needs

Explanation:

Technological innovation can be defined as the introduction of new technical products and services or improving an existing ones.

One major reason for this is to address human needs and better serve individual . Therefore whenever any firm wants to launch any new product , it is important that it must create a balance between what is technically possible and whether the new technology provides benefits and responds to customers needs.

3 0
1 year ago
A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Love Forever
In-s [12.5K]

Answer:

The correct answer is letter "A": True.

Explanation:

Stability strategies are those in which the firm does not change its core method of working, thus, it remains to focus on its current products and markets. Carrying out stability strategies is a less risky approach. The types of stability strategies can be <em>no-change strategy; profit strategy; </em><u><em>and</em></u><em> growth through concentration, integration, diversification, co-operation, internationalization.</em>

6 0
2 years ago
The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered
harina [27]

Answer:

23.68%

Explanation:

The computation of the cost of not taking a cash discount is shown below:-

Cost of not taking a cash discount = [Discount percentage ÷ (100% - Disc.%)] × (360 ÷ (Final due date - Discount period))

= (2% ÷ 98%) × (360 ÷ (50 - 19))

= 2.04% × 11.61

= 23.68%

Therefore for computing the cost of not taking a cash discount we simply applied the above formula.

4 0
2 years ago
A corporate bond has a face value of $1,000 and a coupon rate of 6.5%. The bond matures in 10 years and has a current market pri
Virty [35]

Answer:After-tax cost of debt capital = 4.78%

Explanation:

Cost of debt (After-tax):

K_{d} = (\frac{1}{P_{b}} - F)\times(1 – tax rate)

Where,

K_{d}= After tax cost of debt

F = Floatation cost

P_{b} = Net proceeds

Net proceeds = Bond face value ± Premium or Discount

Net proceeds: $ 1000 - $ 15 = $ 985

Flotation cost = $ 36

Tax rate 34% or 0.34

Hence, after tax cost of debt =  (\frac{65}{985} - 36)\times(1 - 0.34)

= 4.778 % (approx.)

i.e. 4.78%

3 0
1 year ago
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