Under the indirect method of determining cash flows from operations, which of the following is added to net income?
a. An increase in Accounts Receivable
b. A decrease in Income Taxes Payable
c. A decrease in Inventory
d. An increase in Prepaid Expenses
c
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A party to an illegal agreement generally cannot recover damages for breach of the agreement, recover consideration given to the other party, or recover in quasi contract for benefits conferred on the other party.
Answer the following statement true (T) or false (F)
Since a product's price tends to be invisible, customers rarely have trouble moving past price to consider other critical benefits the product affords.
Answer the following statement true (T) or false (F)
The ________ approach to management has been used in a limited manner because many aspects of a management decision cannot be expressed through mathematical symbols and formulas.
A. systematic management B. human relations C. organizational behavior D. administrative management E. quantitative management
Louisiana Enterprises, an all-equity firm, is considering a new capital investment. Analysis has indicated that the proposed investment has a beta of 0.55 and will generate an expected return of 5.00%. The firm currently has a required return of 10.75% and a beta of 1.25. The investment, if undertaken, will double the firm's total assets. If rRF is 7.00% and the market risk premium is 5%, should the firm undertake the investment?
A. Yes; the beta of the asset will reduce the risk of the firm. B. No; the expected return of the asset is less than the firm's required return, which is 10.75%. C. No; the expected return of the asset (5.00%) is less than the required return (9.64%). D. No; the risk of the asset (beta) will increase the firm's beta. E. Yes; the expected return of the asset (5.00%) exceeds the required return (4.50%).