Northern Railway is considering a project which will produce annual sales of $975,000
and increase cash expenses by $859,000. If the project is implemented, taxes will
increase from $141,000 to $154,000 and depreciation will increase from $194,000 to
$272,000. The company is debt-free. What is the amount of the operating cash flow
using the top-down approach?
This morning a cereal maker agreed to pay a farmer $4.40 a bushel for 5,000 bushels of
wheat that the farmer will ship to the factory four months from now. What is this legally
binding agreement called?
A. forward contract
B. spot contract
E. floating contract
Your company has an available balance of $7,911. A deposit of $2,480 that was made
this morning is not yet included in the bank's balance. There are also 4 checks
outstanding with a value of $325 each. What is the net float?
A. net collection float of $1,180
B. net collection float of $2,480
C. net float of $6,731
D. net disbursement float of $1,300
E. net disbursement float of $2,480