Necessarily cause an increase in net working capital

Assignment Help Financial Management
Reference no: EM132015290

1) Which of the following will necessarily cause an increase in net working capital?

a) Increasing cash balances.

b) Paying down current liabilities.

c) Issuing shares of stock to purchase fixed assets.

d) Increasing long-term debt to purchase more inventory.

2) A firm has total revenue of $1,000, total expenses of $500, an average tax rate of 30% and a marginal tax rate of 35%. What is the firm's net income?

Please show all steps.

Reference no: EM132015290

Questions Cloud

Daily life that contain or are made from minerals : What are the seven different items that you use in your daily life that contain or are made from minerals?
Argument that selling stock involves too much leeway : The argument that selling stock involves too much leeway is the
The cardigans rights guaranteed to the individuals : They are planning to introduce a new line of clothing called "Scantily Clad" with the slogan, "So light You Won't Know You are Wearing a Thing!"
Eliminate the need for glasses or contact lenses : Many patients are attracted to the idea of LASIK, as it can eliminate the need for glasses or contact lenses. Research LASIK and the associated risks
Necessarily cause an increase in net working capital : Which of the following will necessarily cause an increase in net working capital?
Explain supply chain of the new division of the business : Analyze and explain the supply chain of the new division of the existing business. Share your plans to develop and leverage core competencies and resources.
Diet and nutrition are closely linked to the study : Diet and nutrition are closely linked to the study of biomolecules. How should you monitor your food intake to insure the cells in your body have the materials
Develop contractual or service-level agreement principles : Develop requirements for supplier selection in your supply chain and Develop contractual/service-level agreement principles in terms of data sharing
Posterior cervical three levels laminectomy : The physician performs a posterior cervical three levels Laminectomy, facetectomy and foraminotomy on C3, C4, and C5. How is this coded?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the after-tax cost of debt for burly

Burly Owl Inc. is going to purchase a new machine that will cost $200,000. The machine has a useful life of 4years and falls into the 3-year property class for the depreciation purposes. The IRS MACRS schedule for the four years is 1)33.33% 2)44.44% ..

  Example of systematic risk-according to markowitz risk

Which of the following risks confronting ABC Worldwide, Inc. is an example of a systematic risk? According to Markowitz risk can be: Which of the following statement(s) concerning beta coefficients is (are) correct?

  What is the t-bills effective annual yield

A Treasury bill with a face value of $100,000 and 120 days to maturity is selling for $98,500. What is the T-bills bank discount yield? What is the T-bills effective annual yield?

  What is expected return from your portfolio

You hold a portfolio composed of 20% security A and 80% security B. If A has an expected return of 10% and B has an expected return of 15%, what is the expected return from your portfolio? The expected return from your portfolio is?

  What is the firms times interest earned ratio

In the past year, TVG had revenues of $2.91 million, cost of goods sold of $2.41 million, and depreciation expense of $146,570. The firm has a single issue of debt outstanding with book value of $1.19 million on which it pays an interest rate of 9%. ..

  What program trading strategy would you recommend

What program trading strategy would you recommend?

  What is the present value of the technology

What is the present value of the technology if the discount rate is 10 percent? If the business is completely funded with equity, how much is the equity worth?

  Preferred machine based on annual worth ranking

DelRay Foods must purchase a new gumdrop machine. What is the decision rule for determining the preferred machine based on annual worth ranking?

  Manage well diversified portfolio

Stock Hedges You manage a well diversified portfolio of $21 million. The stock portion of your portfolio is 60% and it has a beta of 1.20.

  Bond is likely to be called if sells at discount below par

A bond is likely to be called if its coupon rate is below its YTM. A bond is likely to be called if its market price is below its par value. Even if a bond’s YTC exceeds its YTM, an investor with an investment horizon longer than the bond’s maturity ..

  Identify theft impact businesses and individuals

What is identify theft and why is it so important to understand it? How does identify theft impact businesses and individuals?

  Determine the time period five cash flow

You are considering a cost reduction project for your business. The project will require investment of $1,500,000 in new equipment as an addition to existing equipment. The equipment has shipping and handling charges of $15,000 and will be installed ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd