Goods purchased on credit-----------inflow of funds

Related MCQs

• Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is
• Funds from operations are --------------of funds
• Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds from operation will be
• Cost of goods sold for a company is Rs 30,00,000, Rs 24,00,000 and Rs 18,00,000 for 2015, 2014 and 2013 respectively. If 2013 is the base year the percentage increase in cost of goods sold from 2013 to 2015 is
• A department makes a product whose contribution per unit is £1,000, and which takes 20 hours machine time. A component used in this product with a marginal cost of £300 (taking 5 hours of machine time) could be purchased from an external supplier. The department is working at full capacity. What is the maximum price that the company may pay to buy the component from an external supplier?
• The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?
• The transaction which increase working capital are ………….. of funds
• . Return on properties funds is also known as.
• Funds flow statements are prepared so as to
• The Funds required by way of permanent working capital should be provided by __________.