Solution :
Let us suppose that a company cannot predict the market value of an equipment that acquired by the reference to the similar purchase for the cash. Thus the company finds cost of purchased of the equipment by exchanging :
-- the market price of the bonds when they have an established price in the market.
-- the market price of the bonds when the common stocks does not have a established market price.
-- market price of the equipment when the similar kind of an equipment have a determinable value in the market.
Answer:
a) A discount retailer
Explanation:
The formula to determine the cash conversion cycle is shown below:
Cash Conversion Cycle = days inventory outstanding + days sales outstanding - days payables outstanding.
So as per the given situation, the first option i.e. discount retailer should have the negative cash conversion cycle as in other options it created the positive impact
So the option a is correct
Answer:
C) 4.2 years
Explanation:
The computation of the payback period is as follows;
As we know that
Payback Period = Initial cost ÷ Annual net cash flow
Here
Initial cost = $278000
Annual net cash flow = Incremental after tax + Depreciation per year
where,
Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life
= ($278,000 - $30,000) ÷ 8 years
= $31,000
Annual net cash flow is
= $35000 + $31000
= $66000
So,
Payback Period is
= $278000 ÷ $66000
= 4.2 Years
Answer:
Customer-focused compensation strategy
Explanation:
Customer-focused compensation strategy is the rating system where the employees are rated based on the way customers are being serviced. In this scenario, Mich Inc. is rating its employees on their friendliness, usefulness, and product knowledge, so the compensation strategy followed by Mich is closely described as a customer-focused strategy.