The idea of same value is rooted in the belief of women must be paid equally to men for job that is similarly difficult, entails similar roles, and needs comparable training and education levels.
What is the fundamental meaning of education?Either imparting information to individuals and absorbing it from another person are acts of education. Education also covers every profession of education in general as well as the knowledge gained via formal education or teaching.
Why is education so crucial?Nobody is able to completely remove from your life the foundation which education brings to your life. You boost your chances of finding good employment possibilities and widen your employment options because of being very well having an university degree.
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find the monthly payment for the loan. (round your answer to the nearest cent.) $700 loan for 12 months at 15%
your monthly payment for the loan would be $700 (12 x 0.15)= 1260.
A loan is the lending of money by one or more people, businesses, or other entities to other people, businesses, or other entities. The recipient incurs a debt and is often responsible for both the principal amount borrowed as well as interest payments until the debt is repaid. The paperwork proving the debt will often include information such as the principal sum borrowed, the interest rate levied by the lender, and the due date. The subject asset is temporarily reallocated between the lender and the borrower as part of a loan. The payment of interest encourages the lender to make the loan. Each of these commitments and limitations is upheld in a formal loan.
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as a percentage, by how much will galoshes r' us change their use of labor if wages fall by 23.4#.4% ? enter a negative percentage if the firm will decrease the amount of labor that they hire.
Galoshes increase their labor by 85.8% if there is a decrease in 37.4% in wages using elasticity of labor.
Elasticity of labor is defined as the percentage change in demand for labor to percentage change in demand for labor to percentage change in wage rate.
Elasticity of labor= % demand of labor/% change in wage rate
Let % wage decrease be x
Δ demand for labor =L
i) Galorhes R = ΔL/-Δx = -2.3
ii) Emerson R = ΔL/-ΔX= -3.2
III) Wayne= ΔL/-ΔX= 1.7
iv) Bull stearns = ΔL/-Δx= 4.6
Therefore, emerson,lake and palmer increases the amounts
Hence 2nd option
2) Galorhes R= ΔL--37.3=-2.3
= 37.3× 2.3
= 85.79%
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1- If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable. True or false?
2- If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio. True or false?
If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable is a False statement.
If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio is a false statement.
When an organization's operational cycle is significantly longer than its typical supplier payment time, it becomes necessary to borrow money to finance its inventories and accounts receivable.
What is operating cycleThe time it takes for a business to purchase items, sell them, and get payment for those sales is referred to as an operating cycle. To put it another way, it indicates how long it takes a business to convert its inventories into cash.
The industry will determine how long this operating cycle will be. By providing a sense of whether or not it will be able to pay off any creditors, an understanding of a company's operating cycle will help establish its financial health.
For instance, a short operating cycle for the company means that payments will come in steadily. The more quickly the business generates income, the better off it will be in terms of clearing any outstanding obligations or
When the acid-test ratio is less than one, the purchase of inventory with cash affect each ratio by No change to the current ratio and decrease the acid-test ratio.
What do acid-test ratio and current ratio mean?While the acid-test ratio is computed as current assets plus inventories divided by current liabilities, the current ratio is equal to current assets minus current liabilities.
Both the current ratio and the acid-quick ratio are crucial for a corporation since they help assess a company's capacity to settle its short-term obligations.
Inconlusion While the acid-test ratio should be reduced, the current ratio should remain constant.
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RFID eliminates the need for manual counting and bar-code scanning of goods at receiving docks.
T/F
The following statement "RFID eliminates the need for manual counting and bar-code scanning of goods at receiving docks" is true.
Electromagnetic fields are used by Radio Frequency Identification (RFID) to automatically detect and track tags attached to items. A tiny radio transponder, a radio transmitter, and a radio receiver make up an RFID system. The tag delivers digital data to the reader, often an identifying number, when it receives an electromagnetic interrogation pulse from a nearby RFID reader. To keep track of stock levels, utilize this number.
The radio wave energy from an RFID reader is used to power passive tags. Due to their battery-powered nature, active tags can read data up to hundreds of meters away from RFID readers.
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true or false: the higher priced your menu concept is, the more spacious and comfortable your restaurant seating should be.
It's true that the more expensive your menu idea is, the more roomy and comfortable the seating in your restaurant should be.
It's true that the more expensive your menu idea is, the more roomy and comfortable the seating in your restaurant should be. The interior design of a restaurant has a psychological effect on customers, causing them to order more or less and even affecting how long they stay in the restaurant, something that most people are unaware of. A restaurant's interior design includes options for seating, lighting, music, architecture, and more. Here is an aide on how you can impact your client's brain research involving inside plan in eateries and some splendid eatery inside thoughts that you can use at your outlet
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Some u.s. multinationals add a premium percentage for risk to the discount rate when evaluating potential foreign investments. critics argue that this practice?
a. heavily penalizes distant cash flows. b. fails to penalize early cash flows.
c. fails to recognize early cash flows. d. penalizes early cash flows too heavily.
This penalizes early cash flows too heavily.
Of all the economies, the United States saw the biggest gain in inbound foreign direct investment in 2021. According to the most recent Coordinated Direct Investment Survey report from the IMF, the US position improved by $506 billion (11.3%) last year. There are generally no restrictions on foreigners owning US real estate, and no special legal criteria apply to the acquisition of properties by foreign investors (except for certain restrictions on agricultural land and mineral lease rights).
A U.S. investor must own at least 10% of a foreign company in order to engage in U.S. direct investment. For businesses applying for new industrial licenses, FDI up to 74% via the automated method shall be approved.
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kaitlin wants to earn a real rate of interest of at least 4 percent and she is expecting inflation to be exactly 3 percent. what is the lowest nominal interest rate that kaitlin would be willing to accept from her local bank?
The lowest nominal interest rate that Kaitlin would be willing to accept from her local bank is 7%.
The local bank's lowest nominal interest rate is roughly equal to:
Real interest rate plus inflation equals nominal interest rate.
Interest rate nominal = 4% plus 3%
7% is the nominal interest rate.
The lowest nominal interest rate Kaitlin will tolerate is therefore 7 percent.
The interest rate charged by banks or other financial institutions when lending money or assets in the market is known as the interest rate in economics. It increases the overall sum that the borrower must repay.
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when entering into an income based repayment plan option, a student must contact their ________ to select the repayment plan option
when entering into an income-based repayment plan option, a student must contact their student loan facilitator to select the repayment plan option.
What is income-based repayment?
A repayment strategy known as income-based repayment, or IBR, bases loan instalments on a proportion of the borrower's discretionary income rather than the whole amount owing. Midway through 2009, IBR initially became accessible.
One of four income-driven repayment schemes is IBR. Pay-As-You-Earn Repayment (PAYE), Income-Contingent Repayment (ICR), and Revised Pay-As-You-Earn Repayment are the others (REPAYE). For debtors who don't qualify for PAYE and are worried about the marital penalty and the absence of a payment maximum in REPAYE, IBR is typically a viable alternative.
IBR bases monthly student loan repayments on 15% of discretionary income. The amount by which adjusted gross income (AGI) surpasses 150% of the poverty line is referred to as discretionary income.
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approximately how long does it take for a pharmaceutical company in the united states to bring a newly identified chemical compound to market?
It take six to seven years for a pharmaceutical company in the united states to bring a newly identified chemical compound to market.
What is market?In economics, a market is a system, institution, process, social relationship, or infrastructure configuration through which parties exchange information. Although parties can exchange goods and services through barter, most markets rely on sellers offering goods and services to buyers in exchange for money. Market is defined as the totality of all buyers and sellers in the region or region under consideration. A region can be a globe, country, region, state, or city. The value, cost and price of products are governed the forces of supply and demand in the market. A marketplace is a place where buyers and sellers meet to facilitate the exchange or trade of goods and services. A market can be physical, like a retail store, and virtual, like e-merchant.To learn more about market from the given link :
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finding an apartment reading quiz question 4 of 10: you have been living in your apartment for 6 months on a one-year lease agreement. today you received notice that your rent will be increased by $50 starting the first of next month. are you obligated to pay the new rental price next month?
I am not obligated to pay the increased rent or the new rental price from the next month as I am already under one-year lease agreement and pay the rent as per the terms of the agreement.
What is a lease?A lease is a contract that outlines a landlord's and tenant's rights and responsibilities when the tenant rents residential or commercial property from the landlord.
A Residential Lease Agreement is a lease that is specific to residential rental properties and spells out the terms and conditions of the tenancy, including the landlord's and tenant's rights and obligations. It can be used to rent apartments, houses, condos, duplexes, townhouses, and other properties.
Therefore, I am not obligated to pay the new rental price next month.
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use the following data from mayonnaise manufacturing co. to identify the revenues from sales of finished goods for the year.
The information presented does not permit the determination of revenues from sales of finished items for the year.
Revenue, which is determined by multiplying the average sales price by the number of units sold, is the money made from regular business operations. The top line (or gross income) figure is what is used to calculate net income by deducting costs. Sales are another name for revenue in the income statement.
The raw material account contains information about the raw materials used, while the manufacturing overhead account contains information about the manufacturing overhead incurred.
The work-in-process inventory account can be used to compute the cost of manufactured goods.
The finished goods inventory account can be used to determine the cost of goods sold.
Therefore, the ability to calculate sales revenue is not supported by the information provided.
COMPLETE QUESTION:
Use the following data from Mayonnaise Manufacturing Co. to identify the revenues from sales of finished goods for the year. Manufacturing Raw Materials WIP Invent Cost of Goods Sold 10,010 125,000 120,000 150,000 130,000 150,010 30,000 60,000 35,000 - 110.000 130.000 0 $150,000 0 $150,000 0 $25,000 0 $130,000 0 Cannot be determined from the information provided
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Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms. a decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes. what are these points called?
A decision tree is made up of boxes that include points that reflect when firms must make the decisions in the boxes. They are known as decision nodes.
How do decision trees help in sequential game analysis?A decision tree is made up of decision nodes where businesses must make decisions, arrows that depict the decisions, and terminal nodes that represent the resulting rates of return. The extensive form can be thought of as a multi-player decision tree generalization. A plan that works best regardless of what the competition does. A strategy is dominated if, regardless of what other players do, it provides the player a lower payout than another approach. A strategy is dominated if, regardless of what other players do, it provides the player a lower payout than another approach. A game in which players pick their actions in turn, so that a player who acts later knows the actions chosen by previous players.
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according to federal labor laws, which of the following employer acts is absolutely prohibited during an organizing campaign? a. expressing views about the disadvantages of unions b. stressing the favorable employee-employer relationship in the past without a union c. presenting unfavorable publicity the organizing union has received concerning corruption d. threatening employees with the loss of their jobs if they vote to unionize
Threatening employees with the loss of their jobs if they vote to unionize.
What cannot employers do while a union is being formed?
Supervisors and managers are not allowed to coercively interrogate you about your union involvement or the union activity of your coworkers, spy on you (or give the impression that they are doing so), threaten you, or bribe you. These actions are not grounds for dismissal, reprimand, demotion, or other type of punishment.
The Taft-Hartley Act expressly forbids which of the following?
The Taft-Hartley Act outlawed jurisdictional, wildcat, solidarity, and political strikes, as well as secondary boycotts, secondary and mass picketing, closed workplaces, and financial contributions by unions to federal political campaigns.
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if the working age population was 280 million of the 350 million people living in the united states and the labor force was 250 million with an unemployment rate of 6%, the number of employed workers would be
The number of employed workers would be 235 million.
This calculation can be derived by subtracting the unemployment rate of 6% (or 15 million people) from the labour force of 250 million people.
To calculate this:
= 250 - (6% of 250 )
= 235 million
Therefore, the number of employed workers is 235 million.
Percentage expresses a proportion as a fraction of 100. It is often denoted using the percent sign, “%”, or the abbreviation “pct.”
For example, 45% (read as “forty-five percent”) is equal to 45/100 or 0.45.
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Answer:
235 million people
Explanation:
(x/250)*100=6 x=15 million unemploy 250-15=235
To calculate the expected risk premium on a stock, one must subtract the_________ from the stock's expected return.
a) variance
b) expected market rate of return
c) Standard deviation
d) risk free rate
e) Intiation rate
To calculate the expected risk premium on a stock, one must subtract the d) risk free rate from the stock's expected return.
In the field of business, the expected risk premium can be described as the revenue that can be generated from investing in a product or asset.
To calculate the expected risk premium for a particular stock, one must exclude the risk-free rate from the expected return. The expected return is the money that one expects to get back from investing in a particular asset.
The expected risk makes an investor believe to be compensated for the risk that he has taken by investing in a particular asset. Hence, in order to calculate the expected risk premium, a business needs to exclude the free rate after the exclusion of risk from the expected rate of return.
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to pay for social insurance programs administered by the social security administration, employers, employees, and the unemployed must contribute.
a) true
b) false
"To pay for social insurance programs administered by the social security administration, employers, employees, and the unemployed must contribute." False Option B
What is social insurance?Generally, The term "social insurance" refers to a public insurance program that is designed to protect individuals against a variety of financial hazards (such as a loss of income due to illness, old age, or unemployment) and in which membership is mandated for all individuals.
The provision of protection against the adverse effects of economic uncertainty is the primary function of social insurance as a kind of social welfare. The insurance could be supplied by the government, or it might be subsidized by private insurance companies.
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the expected rates of return for the different types of capital used to finance the business.
The expected rates of return for the different types of capital used to finance the business Debt financing.
The target capital structure is the desired most advantageous mix of debt and fairness financing that maximum corporations attempt to obtain and keep. The fee of capital is the fee of return a company need to earn on investments in order to increase the firm's price.
"The price of capital is the fee of go back a firm have to earn on its investments for the marketplace cost of the company to stay unchanged. it can additionally be thought of as the fee of go back required by the market providers of capital a good way to entice needed financing at a reasonal.
Risk and return in economic management is the risk associated with a sure investment and its returns. typically, excessive-threat investments yield higher monetary returns, and coffee-hazard investments yield decrease returns. that is, the threat of a particular funding is at once related to the returns earned from it.
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consider the following scenario: most restaurants will supply a free dessert if it is the customer's birthday. assume that this is not specifically advertised by restaurants. is this an example of price discrimination?
Supply of a free desert on a customer's birthday not being specifically advertised can be regarded as an ideal example of price discrimination.
Price discrimination can be referred to or considered as a practice wherein an organization or the seller offers the same products to two different customers at differentiated prices, as a course of a biased behavior being expressed. It is not an ideal practice, and must be avoided by business organizations for a number of reasons that help in maintenance of the goodwill.
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The biden administration announced on wednesday that it would give three native tribes a total of $75 million to do what?
Answer:
move tribal homes and vital buildings and facilities out of area threatened by flooding, erosion, and other hazards
in a company where units are given autonomy to work independently, but are now asked to work together, the units may become territorial and refuse to share ideas for fear of being eliminated. this functional structure will produce which drawback? slf-cannibalization inability to support cost competency cascading effect of errors redundancy across units low levels of centralization
Functional structure will produce drawback such as cascading effect of errors (C) that lead the nits to become territorial and refuse to share ideas across units.
Functional structure is an organizational structure where a company divides its employees based on their specialization and capabilities. Functional structure is effective for some companies with large volume of standardized produc or service sales, large fixed asset base, and minimal changes in technology.
However, functional structure also have many disadvantages. They are:
Weakening of common bondsLack of coordinationTerritorial disputesSegregationUnhealthy working competitionFunctional structure makes units become relatively isolated from each other. This structure will make the commond bond that emphasizes a single overarching organizational purpose is weaker than in an organization with high cross-unit interactions. Functional structure makes having and understanding a common organizational purpose to be hard to execute.
The lack of coordination happens because of lack of communication and the isolated groups structure across the organization. Many units leaders may become uncare with other units difficulties and limitations. They become not respond helpfully or in a timely way because they don't feel that others' difficulties are part of their problems. By the time the need for cooperation has been established, the moment when cooperation would have been most effective may already have passed.
Territoril disputes may happen when any disagreement over goals, budgets, or any other issues came up from a clash of egos when each department has its own separate functional structure or a strong sense of common purpose is lacking. Each units fears of being eliminated if they fail to achieve their units target and underperfomed.
Segregation happens because the isolated group structure means that teams become siloed. Employees in different teams do not get the oppotunity to meet and share perspectives. This condition could be harmful for the business in the long run because of the limitation of perspectives.
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a temporary price differential in resource markets is a. eliminated by resources moving from lower-valued to higher-valued uses. b. caused by inherent differences in nonmonetary aspects of a job. c. caused by a failure of firms to maximize profits. d. eliminated when resources earn an excess of their opportunity costs. e. caused by governments increasing the minimum wages of workers.
A temporary price differential in resource markets is eliminated by resources moving from lower-valued to higher-valued uses. (Option A)
What do you mean by temporary resource price differential?A price difference that drives more workers to relocate to regions with higher wages is known as a temporary resource price differential. Because they drive resource supply to move away from lower-paid applications and toward higher-paid ones, some price discrepancies are only ephemeral.
How is differential pricing demonstrated?Volume discounts: When offering volume discounts, organizations might employ differential pricing. Book stores and clothing retailers make ideal examples because you can typically tell when they are running promotions that include buying one item and receiving the second in a different color for half off.
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a decrease in the federal funds rate is an indication that monetary policy is expansionary. group startstrue or false
A reduction in the federal funds rate indicates that monetary policy is expansionary.
What exactly do you mean by federal funds, and their functions?Federal funds, also known as fed funds, are excess reserves deposited by commercial banks and other financial institutions at regional Federal Reserve banks; these funds can then be lent to other market participants who do not have enough cash on hand to meet their lending and reserve needs. The loans are unsecured and have a relatively low interest rate, known as the federal funds rate.
The functions are as follows:
Federal funds are excess reserves held by financial institutions that exceed the central bank's mandated reserve requirements.Banks will borrow or lend their excess funds to one another on an overnight basis, as some banks have too many reserves and others have too few.To learn more about federal funds refer to:
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global sourcing means a. finding the country with the lowest cost labor. b. importing specialized labor to complete production work. c. lobbying for tax breaks on international sales. d. purchasing products or services across national boundaries.
Global sourcing means lobbying for tax breaks on international sales.
An international sales contract is an agreement between a buyer and a seller specifying the parties to the transaction, the goods or services to be sold, the terms and conditions of sale, and the price to be paid.
International Sales and Marketing also tracks the effectiveness of sales campaigns in different countries and appropriately modifies or expands campaigns after launch. A sales approach that works in one country may work in a country with similar values and languages.
A sale is a transaction between two or more parties to exchange goods or services for money or other property. In financial markets, a sale is an agreement between a buyer and a seller to set a price for a security and deliver it at an agreed upon rate.
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suppose that both firms start off by deciding not to advertise. if the firms act independently, what strategies will they end up choosing?
Every cost still has the potential to reduce profitability. Big brands' advertising returns on investment are also lower, thus it stands to reason that managers won't want to promote their own products.
What exactly does advertising consist of?The companies that advertise, the agencies that produce the advertisements, the media that air the advertisements, and a plethora of individuals like copy editors, visualizers, brand managers, researchers, creative minds, and designers who go above and beyond to reach the customer or receiver make up the advertising industry.
What are the approaches one should take into account when advertising?There are countless advertising tactics available to promote your firm. Make sure you have marketing objectives, allocate money for marketing, and develop a brand.
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patents are granted to inventors of a product or process for a certain number of years. the reason for this is to encourage innovation in the economy. without the existence of patents, it is argued, research and development for improved pharmaceutical products is unlikely to take place, since there’s nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs.
Barriers to Entry are Government-Created Monopolies.
A monopoly, as described by way of Irving Fisher, is a marketplace with the "absence of opposition", creating a state of affairs wherein a specific man or woman, or company is the handiest dealer of a selected aspect. In a natural monopoly, a producer controls the marketplace due to the fact it can meet the needs of all clients.
herbal monopoly: exists due to the excessive begin-up expenses or effective economies of scale of accomplishing an enterprise in a selected industry. A producer is probably the only issuer or services or products in an enterprise or geographic area.
authorities monopoly: A compelled form of market domination wherein a national, nearby or local management, organization or corporation is the only issuer of a specific true or service and opposition is prohibited by way of regulation. a government monopoly is normally created and run with the aid of a central authority, as opposed to by a non-public business.
technological monopoly, a producer controls production strategies important to supply a positive product, or has exceptional rights over the generation used to manufacture it.
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Which of the following is false about the different capital budgeting analysis methods? Companies often use more than one capital budgeting method to determine which capital investment to make. The Internal Rate of Return (RR) is the specific rate of return of an investment, considering the time value of money, The capital budgeting analysis methods that consider the time value of money are generally considered inferior to the methods that do not A significant criticism of the Payback period analysis method is that it ignores profitability,
It is false about the different capital budgeting analysis methods is:
The capital budgeting analysis methods that consider the time value of money are generally considered inferior to the methods that do not.
The correct option is (c).
Now, According to the question:
What is Capital Budgeting?
Capital Budgeting is defined as the process by which a business determines which fixed asset purchases or project investments are acceptable and which are not. Using this approach, each proposed investment is given a quantitative analysis, allowing rational judgment to be made by the business owners.
Hence, The capital budgeting analysis methods that consider the time value of money are generally considered inferior to the methods that do not.
The correct option is (c).
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The question is like this:
Which of the following is false about the different capital budgeting analysis methods?
a) Companies often use more than one capital budgeting method to determine which capital investment to make.
b) The Internal Rate of Return (RR) is the specific rate of return of an investment, considering the time value of money.
c) The capital budgeting analysis methods that consider the time value of money are generally considered inferior to the methods that do not.
d) A significant criticism of the Payback period analysis method is that it ignores profitability.
Which of the following is seen by consumers as the negative side of the convergence of real and digital worlds?
Multiple Choice
lack of convenience
trends toward isolation and lowered human interaction
lack of choice
eroding privacy
Eroding privacy, It is the biggest concern of many consumers online.
But if businesses now install sensors in hundreds of sites to track is based on the signals emitted from our Wi-Fi-enabled smartphones, we could be concerned. Today, 68 percent of Internet users believe that privacy regulations don't effectively protect them.)
Because it provides you control over your identity and personal information, internet privacy is crucial. If you don't have that control, anyone with the means and the will can use your identity to further their interests, such as selling you a more expensive trip or robbing you of your savings.
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Having a great credit score will make it easier for you to get into a better educational institution.
t/f
It is a false statement that having a great credit score will make it easier for you to get into a better educational institution.
What is a good credit score?In finance, a credit score refers to a numerical expression based on a level analysis of a person's credit files which is to represent the creditworthiness of an individual. A credit scores are primarily based on a credit report, information typically sourced from credit bureaus.
Lenders like banks and credit card companies, use the credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.
As well, a credit score is the number from 300 to 850 that depicts a consumer's creditworthiness. Some factors considered in credit scoring include repayment history, types of loans, length of credit history, and an individual's total debt.
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the effective tax rate an individual pays is a way the government (and the individual) understand the taxes paid. how is the effective tax rate calculated?
Simply dividing the income tax expense by the profits (or money earned) before taxes yields the effective tax rate. On an income statement, tax expense is typically the last line item before the bottom line, or net income.
A tax levied against people or organizations (taxpayers) in relation to their income or profits is known as an income tax (commonly called taxable income). Tax rates multiplied by taxable income are typically used to calculate income taxes. Tax rates might change depending on the taxpayer's attributes and source of income. As taxable income rises, the tax rate can also (referred to as graduated or progressive tax rates). Corporate tax, which is often assessed at a fixed rate, is the name given to the tax charged on businesses. Individual income is frequently taxed at progressive rates, meaning that the tax rate increases for every subsequent dollar of income (for example, the first $10,000 of income is taxed at 0%, the following $10,000 is taxed at 1%, etc.). The majority of tax laws exempt local charitable groups. Investment income may be subject to a different tax rate than other types of income, which rate is typically lower. Credits of all kinds that lower tax may be granted. A tax on an alternative base or measure of income or an income tax, whichever is higher, may be imposed by some countries. Taxable income for taxpayers who reside in the jurisdiction is often calculated as total income less certain deductions and expenses that go toward earning income. In general, income only includes net gains from the sale of property, including items held for sale. Distributions of corporate earnings are typically included in the income of a corporation's shareholders. Deductions typically cover all expenditures incurred for operating a business or generating money, including a provision for the cost of corporate assets to be recovered. Many countries permit individuals to deduct hypothetical expenses, as well as maybe some personal expenses. The majority of states either do not tax income earned outside their borders or give taxpayers a credit for taxes paid to other states on such income. With rare exceptions, nonresidents are only subject to taxation on a limited range of income derived from sources within the jurisdictions.
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gilliam industries records revenue of $6.4 million for an accounting period. in that same accounting period, they have a beginning balance of $392,000 and an ending balance of $439,000 in the accounts receivable account. how should the cash flows from operating activities be adjusted to account for these items? why? assume gilliam uses the indirect method.
Using the indirect method, Gilliam will only have to adjust for the change in Accounts Receivable, resulting in a $47,000 decrease in cash flows from operating activities.
The indirect method is a financial reporting method in which the statement of cash flows begins with net income before being adjusted for cash operating activities before arriving at an ending cash balance.
While both methods calculate your net cash flow from operating activities, the main difference is the starting point and types of calculations used. Your net income is the starting point for the indirect method. The direct method, on the other hand, starts with the cash amounts received and paid out by your company. Cash flow is calculated using the indirect method by taking the value of net income (i.e. net profit) at the end of the reporting period.
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