Assume that the direct method is used to prepare the operating activities section of the statement of cash flows. Which of the following statements is correct concerning a decrease in Accounts Payable?
A. Since the cash payments were less than credit purchases, the decrease must be added to purchases to calculate cash payments to suppliers.
B. Since the cash payments were more than the credit purchases, the decrease must be added to purchases to calculate cash payments to suppliers.
C. Since the cash payments were less than credit purchases, the decrease must be subtracted from purchases to calculate cash payments to suppliers.
D. Since the cash payments were more than credit purchases, the decrease must be subtracted from purchases to cash payments to suppliers.
Answer: B
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The ________ holds that a new state coming into existence through decolonization is under no obligation to succeed to the treaties of its former colonial power
A. doctrine of incorporation B. declaratory doctrine C. Clean slate doctrine D. constitutive doctrine
XYZ is a paint product manufacturer, and one of the plants is experiencing a substantial increase in demand. The future demand for the products could be low, medium, or high, with probabilities estimated to be 25%, 50%, and 30%, respectively. The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand. Given the following payoff matrix, compute the expected value of decisions with perfect information.
a. $45.5 M
b. $53M
c. $12.4 M
d. $70 M