To determine the amount of additional funds needed (AFN), you may subtract the expected increase in liabilities, which represents a source of funds, from the sum of the expected increases in retained earnings and assets, both of which are uses of funds.
Answer the following statement true (T) or false (F)
False
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Arena, Inc uses straight-line depreciation for its equipment. Arena purchased equipment for $300,000 and estimated its useful life at 8 years. The bookkeeper failed to consider the residual value of $50,000 . What is the impact on earnings per share and operating income of failing to consider the residual value?
a. Earnings per share will be overstated and operating income will be understated. b. Earnings per share will be understated and operating income will be overstated. c. Both earnings per share and operating income will be overstated. d. Both earnings per share and operating income will be understated.
Global Engineering's actual operating income for the current year is $56,000. The flexible budget operating income for actual sales volume is $51,000, while the static budget operating income is $54,000. What is the sales volume variance for operating income?
A) $3000 favorable B) $2000 unfavorable C) $3000 unfavorable D) $2000 favorable
If it takes Diamondback Enterprises 90 days to sell inventory, 46 days to collect from the sale, and creditors' payment terms are 60 days, the financing period is
A) 196 days. B) 46 days. C) 90 days. D) 76 days.
The model was entered into an Excel spreadsheet and the table below shows part of the sensitivity report. Calculate the expected per unit profit for the three services
Variable Cells Final Reduced Cell Name Value Gradient $C$3 P1_ 45.5694 0 $D$3 P2_ 51.5 0 $E$3 P3_ 58.8929 0