Highland Park Homes reports net income of $300,000, and yet its net cash flow from operating activities is a negative $200,000 during the same period. Is this possible? Explain.
What will be an ideal response?
It is possible to report net income and negative operating cash flows at the same time. Increases in current assets and decreases in current liabilities both result in net income that is higher than operating cash flows. As one specific example, an increase in accounts receivable of $500,000 would result in net income exceeding operating cash flows by $500,000.
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A partnership began on January 1, 2020, with two partners Mary Snow and Scott Lucas. Mary contributed $53,000 cash and Scott contributed equipment with a fair market value of $33,000. The partners share profits and losses 60:40, with Mary receiving 60%. Partners' withdrawals were $11,000 by Mary and $5500 by Scott. Net income for 2020 was $54,000. What is the balance in Mary's capital account at December 31, 2020?
A) $74,400 B) $21,400 C) $53,000 D) $32,400
________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying
A) Specialty products B) Convenience products C) Unsought products D) Shopping products E) Capital items
Explain why feedback is important for the goal setting process.
What will be an ideal response?
Which of the following refers to the rate of speed and unpredictability of change within the industry?
a. Level of industry concentration b. Environmental hostility c. Environmental dynamism d. Level of environmental heterogeneity