Suppose a friend of yours showed you the pro forma income statements for his start-up and exclaimed excitedly that during the first three years of operations his firm will make a net income of $150,000 per year, which is just the amount of money ($450,000) the firm will need to pay off a three-year loan. Given your study of the chapter, why is it that your friend may not actually have $450,000 in cash, even though his pro forma income statements say that he will earn that amount of money?
Answers: 1
Business, 22.06.2019 15:20, amulets5239
Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.
Answers: 3
Business, 24.06.2019 00:00, smancilla2020
Which of the following is not an example of macroeconomics a constructing a city sewer system b tightening the family budget c cutting state income taxes d subsidizing corn farms
Answers: 1
Business, 24.06.2019 04:00, yolo123321
How do unseen costs make it difficult to decide if it is better for government or private companies/people to spend our money? provide an example using a “seen” and “unseen” cost to prove your answer.
Answers: 3
Business, 24.06.2019 07:40, RKennedy3448
Ineed accounting with plato unit activity, essential skills for accounting professionals.
Answers: 1
Suppose a friend of yours showed you the pro forma income statements for his start-up and exclaimed...
Mathematics, 28.05.2021 17:50
Mathematics, 28.05.2021 17:50
History, 28.05.2021 17:50
Mathematics, 28.05.2021 17:50