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NEW QUESTION: 1
Drag and drop each GRE features on the left to the correct answer on right.
Answer:
Explanation:
NEW QUESTION: 2
A company had US $30 million in total sales last year and expects US $40 million in total sales this year. Ten percent of each year's sales are on credit that will be paid the following year. The company anticipates the following expenses for this year:
Depreciation of US $5 million.
Labor, materials, taxes, and other expenses of US $51 million.
Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of:
A. US $15 million
B. US $12 million
C. US $8 million
D. US $17 million
Answer: B
Explanation:
The cash inflows from last year's credit sales are estimated to be US $3,000,000$'',C1,0C10,0Ci0 _-: 10%). The cash inflows from this year's sales are expected to be US $36,000,000 x 90%), a total cash inflow of US $39,000,000 for the current year. Ignoring depreciation, which is a noncash expense, cash outflows are estimated at US $51,000.000_ Hence, the net cash outflow is anticipated to be US $12.000,000$39,000,000
-$51,000.000).
NEW QUESTION: 3
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