Which of the following is not a cash outflow from an operating activity?
a. a withdrawal by the owners; b. a payment for the acquisition of inventory; c. a tax payment to the government; d. a payment for interest on a loan; e. the payment of wages.
A
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If the stated interest rate on bonds is less than the current market rate, the bonds will sell at a discount
a. True b. False Indicate whether the statement is true or false
A decrease in ________ is added to determine the net cash flow from investing activities
a. common stock b. land c. bond d. inventory
As in the Toddler University case, the needs of a target market virtually determine the nature of an appropriate marketing mix.
Answer the following statement true (T) or false (F)
The board of directors of Wireless, Inc is considering two compensation plans for the CEO of the company. The
first would pay the CEO a salary of $250,000 for the upcoming year. The second would pay the CEO a salary of $100,000 and provide the CEO with a stock option to buy 100,000 shares of stock for $11 per share. The current price per share of Wireless, Inc stock is $10 per share. The stock option expires at the end of the year. Why might shareholders prefer the second payment plan? As part of your answer, calculate the break-even point for the CEO to obtain the same compensation under option two as he or she would under option one.