Answer:
Zetrov Company
Budgeted Balance Sheet for the month of March
Assets
Current assets:
Cash $59,700
Accounts receivable 96,600
Inventory 27,300 $183,600
Long-term assets:
Equipment $82,200
Accumulated depreciation (34,600) $47,600
Total assets $231,200
Liabilities and Equity:
Current liabilities:
Bank loan payable $19,000
Accounts payable 90,800
Income tax payable 27,800 $137,600
Equity:
Common stock $34,000
Retained earnings 59,600 $93,600
Total liabilities and equity $231,200
Explanation:
a) Data and Calculations:
Ending Bank Loan = $19,000
Ending cash balance = $59,700
Accounts receivable = $96,600 ($138,000 * 70%)
Accounts payable = $90,800
Ending inventory = $27,300 (780 * $35)
Net income = $49,800
Income tax payable = $27,800
Equipment at cost = $82,200
Accumulated depreciation, beginning $31,800
Depreciation for the month = 2,800
Accumulated depreciation, ending = $34,600
Retained earnings, beginning = $9,800
Net income 49,800
Retained earnings, ending $59,600
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each phrase that follows with the term it describes.
Clear All
Evaluation of how profit will change based on an alternative course of action
Possible result of using an inappropriate overhead allocation method
Revenue forgone from an alternative use of an asset
Strategy that focuses on reducing the influence of bottlenecks
Not relevant to future decisions
Product cost distortion
Opportunity cost
Differential analysis
Sunk cost
Theory of constraints
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each phrase that follows with the term it describes.
Clear All
Recognizes that a dollar today is worth more than a dollar tomorrow
Often referred to as the discounted cash flow method
Also referred to as capital budgeting
Average income as a percentage of average investment
Can be determined by initial cost divided by annual net cash inflow of an investment
Cash payback period
Capital investment analysis
Average rate of return
Net present value method
Time value of money concept
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match the following descriptions and examples with the four performance perspectives in the balanced scorecard.
Clear All
Focuses on operational efficiencies and issues like improving manufacturing performance
Focuses on obtaining and retaining customers and customer base
Focuses on traditional accounting measures of performance, such as net income and cash flow
Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
Customer
Learning and growth
Internal processes
Financial
Answer:
1. Match each phrase that follows with the term it describes:
a. Evaluation of how profit will change based on an alternative course of action
Correct term: Differential analysis
b. Possible result of using an inappropriate overhead allocation metho
Correct term: Product cost distortion
c. Revenue forgone from an alternative use of an asset
Correct term: Opportunity cost
d. Strategy that focuses on reducing the influence of bottlenecks
Correct term: Theory of constraints
e. Not relevant to future decisions
Correct term: Sunk cost
2. Match each phrase that follows with the term it describes:
a. Recognizes that a dollar today is worth more than a dollar tomorrow
Correct term: Time value of money concept
b. Often referred to as the discounted cash flow method
Correct term: Net present value method
c. Also referred to as capital budgeting
Correct term: Capital investment analysis
d. Average income as a percentage of average investment
Correct term: Average rate of return
e. Can be determined by initial cost divided by annual net cash inflow of an investment
Correct term: Cash payback period
3. Match the following descriptions and examples with the four performance perspectives in the balanced scorecard:
a. Focuses on operational efficiencies and issues like improving manufacturing performance
Correct option: Internal processes
b. Focuses on obtaining and retaining customers and customer base
Correct option: Customer
c. Focuses on traditional accounting measures of performance, such as net income and cash flow
Correct option: Financial
d. Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
Correct option: Learning and growth
Jordan performs services for Ryan. Which, if any, of the following factors indicate that Jordan is an independent
contractor, rather than an employee?
a. Ryan sets the work schedule
b. Ryan provides the tools used.
c. Jordan follows a specific set of instructions from Ryan to complete tasks.
d. Jordan is paid based on tasks performed.
Answer:
d. Jordan is paid based on tasks performed.
Explanation:
In the given options, the option d seems to be an independent contractor instead of an employee as the independent contractor would be paid that depend upon the performance of the task. They are free to choose their time and resources in order to performing the task. In other way, they dont have to depend upon others
So, the option d is correct
Dairy Cream Inc. makes and sells ice cream. Dairy Cream wants to merge with EZ Freeze Inc., its main competitor and a maker of ice cream and other frozen desserts. In a challenge to the deal on a charge of monopolization, the relevant product market includes ice cream and:_______
a. no other products.
b. products that have identical attributes, such as frozen yogurt.
c. products that must be kept cold, such as frozen fruit.
d. products that are related, such as cake.
Answer:
b. products that have identical attributes, such as frozen yogurt.
Explanation:
A monopoly is formed when a firm or a group of firms have a an unfair advantage in supplying a product and faces no competition while operating.
It is important to identify the market where the monopolist exists.
In the given scenario where Dairy Cream wants to merge with EZ Freeze Inc., its main competitor and a maker of ice cream and other frozen desserts. The merger will eliminate competition and the product market is defined under ice cream and products that have identical attributes, such as frozen yogurt.
Explain how introducing an agile method will improve the outcomes of software development?
Answer:
In simple words, Agile architecture, in fact, speeds up the distribution of original market value and ensures that quality is maximized during the implementation system by a process of constant preparation and feedback.
Projects are finished in shorter iterations, rendering them more achievable, thanks to the incremental design of the agile process. It also makes it possible to roll out goods efficiently and make adjustments at any time throughout the phase
In a query, if you want to summarize the data and use a sum to apply addition to the summarized data, use the _____ tool.
SUM
Add
Summarize
Totals
PaulCo, DavidCo, and Sean form a partnership with cash contributions of $80,000, $50,000 and $30,000, respectively, and agree to share profits and losses in the ratio of their original cash contributions. PaulCo uses a January 31 fiscal year-end, while DavidCo and Sean use a November 30 and December 31 year-end, respectively. The partnership must use the least aggregate deferral method to determine its year end.
a. True
b. False
Answer:
True
Explanation:
Based on the information given The partnership MUST USE THE LEAST AGGREGATE DEFERRAL METHOD IN ORDER TO DETERMINE ITS YEAR END reason been that PaulCo ownership is not more than 50% and lastly the three partners year end is different as PaulCo make use of January 31, DavidCo November 30 and Sean December 31.
Therefore The partnership must make use of the LEAST AGGREGATE DEFERRAL METHOD to determine its year end.
Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:_______.
a. 49,100.
b. 49,900.
c. 48,100.
d. 50,900.
e. cannot be determined based on the information presented.
Answer:
c. 48,100.
Explanation:
The computation of the actual labor hours worked is shown below;
Actual Overhead $392,000.00
Less: Underapplied overhead $7,200.00
Applied Overhead ($392,000 - $,7200) $384,800.00
Predetermined overhead rate $8.00
Actual labor hours ($384,800 ÷ 8) $48,100
hence, the actual labor hours worked is $48,100
Therefore the option c is correct
Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:_______.
a. 49,100.
b. 49,900.
c. 48,100.d. 50,900.
e. cannot be determined based on the information presented.
-KeonLee
I hope it help
#Carry on learning
Ryan's Express has total credit sales for the year of $189,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment:
a. Allowance for Doubtful Accounts has a credit balance of $925.
b. Allowance for Doubtful Accounts has a debit balance of $385.
Answer:
a. Date Account title Debit Credit
Bad debt expenses $4,745
(3%*189,000 - $925)
Allowance for doubtful account $4,745
(To record the adjusting entry)
a. Date Account title Debit Credit
Bad debt expenses $1,505
(3%*189,000 - $385)
Allowance for doubtful account $1,505
(To record the adjusting entry)
(Learning Outcome 2) Watson Plumbing performed plumbing services for ABC Daycare on account for $565. How will this transaction affect ABC Daycare's accounting equation?
Answer:
ABC Daycare
Effect of Performing Plumbing Services on account on the Accounting Equation:
Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565
Explanation:
a) Data and Analysis:
Accounts receivable $565 Service Revenue $565
The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction. It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two. This equation forms the basis for the double-entry system of financial accounting.
Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from the equipment is $3,000, after deducting $28,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 9% return on its investments. The present value of an annuity of $1 for different periods follows:
Periods 11 Percent
1 0.9009
2 1.7125
3 2.4437
4 3.1024
What is the net present value of the machine?
a. $(4,502).
b. $48,000.
c. $5,400.
d. $43,498.
e. $39,099.
Answer:
($16,2470.30)
Explanation:
After-tax cash flow = After-tax net income + Depreciation
After-tax cash flow = $3,000 + $28,000
After-tax cash flow = $31,000
Net present value = Purchase cost + After-tax cash flow*PVIFA(%, n)
Net present value = -$84,000 + $31,000*PVIFA(9%, 3)
Net present value = -$84,000 + $31,000*2.5313
Net present value = -$84,000 + $78,470.30
Net present value = -$16,2470.30
You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of 8 years.
Parameter A B C D
First cost $25,000 $35,000 $20,000 $40,000
Annual costs $8,000 $6,000 $9,000 $5,000
Salvage value $2,500 $3,500 $2,000 $4,000
The discount rate is 12%. Ignore taxes. The most preferable top two projects and the difference between their present worth values are most nearly:_____.
A. A and C, $234.
B. B and D, $170.
C. A and C, $170.
D. B and D, $234.
Answer:
You must choose between four pieces of comparable equipment based on the cash flows.
Explanation:
list three classified ways of getting into small business?
Answer:
sole , partnership , team business
Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,650,000.
Required:
Calculate the depreciation on the building and building addition for 2018 and 2019 assuming that the addition did not change the life or residual value of the building.
Answer:
Depreciation expense on Building
Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life
= ($5,000,000 - $200,000) / 30
= $4,800,000 / 30
= $160,000
Depreciation expense for 2018 = $160,000
Depreciation expense for 2019 = $160,000
Depreciation expense on Building addition
Useful life = 30.00 years - 2.50 years = 27.50 years
Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life
= ($1,650,000 - $0) / 27.50
= $60,000
Depreciation expense for 2018 for 6 months = $60,000 * (6/12) = $30,000
Depreciation expense for 2019 = $60,000
On March 1, 2021, McHugh Enterprises issued 1000 of its 8%, $1,000 bonds dated January 1, 2021 at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. McHugh paid $50,000 in bond issue costs. McHugh uses straight-line amortization. The interest expense recognized on July 1, 2021 will be:__________
Answer: $82000
Explanation:
Interest will be calculated as:
= No of shares x Face value per Share x Interest rate
= 1000 × $1000 × 8%
= 1000 × $1000 × 0.08
= $80000
Total face value of shares issued = 1000 × $1000 = $1,000,000
Issue Amount will be:
= No of shares x Face value per Share x Issue rate
= 1,000 x 1,000 x 98 %
= $980,000
Discount on issue will be:
= $1,000,000 - $980,000
= $20,000
Amortization of Discount on issue per annum will be:
= $20,000/10
= $2000
Therefore, interest expense will be:
= $80000 + $2000
= $82000
Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?
A. 9
B. 12
C. 16
D. 19
E. 28
Answer:
Post Test: Government
Economics
Question #5
Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?
Answers:
A. 9
B. 12
C. 16
D. 19
E. 28
__________________________________________________________
The 100% correct answer is:
E. 28
Explanation:
I took the test and this is 100% it
Hope this helped
successfulness of the competition policy in South Africa
Assume that during 2019, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,955,000, net cash used in investing activities of $207,200,000 (including cash spent for plant assets of $132,930,000), and net cash used in financing activities of $33,350,000. Dividends of $4,860,000 were paid.
Required:
Calculate free cash flow.
Answer:
$18,165,000
Explanation:
Given that;
Cash provided by operating activities = $155,955,000
Net cash used in investing activities = $207,200,000 (including cash spent for plant asset of $132,930,000)
Net cash used in financing activities = $33,350,000
Dividends = $4,860,000
Then,
The free cash flow
= Cash provided by operating activities - Net cash used in investing activities - Dividends
= $155,955,000 - $132,930,000 - $4,860,000
= $18,165,000
Tyreek Hill of the Kansas City Chiefs, and his agent are evaluating three contract options. Each option offers a signing bonus and a series of payments over the life of the contract. Hill uses a 10.375 percent rate of return to evaluate the contracts. Given the cash flows for each option, whish one should he choose? Show your work.
Year 0 CF Type Signing Bonus Option A $ 6,000,000.00 Option B $ 5,800,000.00 Option C $ 7,000,000.00 1 Annual Salary $ 650,000.00 $13,000,000.00 $10,800,000.00 2 Annual Salary $ 715,000.00 $13,000,000.00 $11,000,000.00 3 Annual Salary $ 822,250.00 $13,000,000.00 $11,200,000.00 4 Annual Salary $ 975,000.00 $13,000,000.00 $11,400,000.00 5 Annual Salary $20,000,000.00 $11,600,000.00 6 Annual Salary $30,000,000.00
Answer:
He should choose Option B because it has the highest equivalent annual annuity,
Explanation:
To decide which option is better, calculate the equivalent annual annuity using the following formula
Equivalent Annual Annuity = Total Present value / Total Present value Factor
Option A
Where
Total Present value = $37,245,058
Total Present value Factor = 5.30781306
Placing values in the formula
Equivalent Annual Annuity = $37,245,058 / 5.30781306 = $7,017,025.18
Option B
Where
Total Present value = $46,675,950
Total Present value Factor = 4.144303839
Placing values in the formula
Equivalent Annual Annuity = $46,675,950 / 4.144303839 = $11,262,675.64
Option C
Where
Total Present value = $48,905,550
Total Present value Factor = 4.754748665
Placing values in the formula
Equivalent Annual Annuity = $48,905,550 / 4.754748665 = $10,285,622.48
Tyreek Hill should choose option C.
In order to determine the choice he would make, the present value of each option has to be determined. Present value is the sum of discounted cash flows. Present value can be determined using a financial calculator.
Present value of Option A using a discount rate of 10.375% = 37.28 million
Present value of Option B using a discount rate of 10.375% = 46.68 million
Present value of Option C using a discount rate of 10.35% = 48.91 million
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The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $800 every six months over the subsequent eight years, and finally pays $1,000 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the required return on both these bonds is 8 percent compounded semiannually, what is the current price of Bond M? of Bond N?
Answer:
a. Current value of Bond M = $5,066.47
b. Current value of Bond N = $1,380.93
Explanation:
a. Calculation of current price of Bond M
Note: See the attached excel file for the calculation of the total present of value of the coupon payment of Bond M.
From the attached excel file, we have:
Total present of value of the coupon payment of Bond M = $3,685.54
Present value of the face value of Bond M = Face value / (100% + Required return)^(Number of years to maturity * Number of years in a year) = $30,000 / (100% + 8%)^(20 * 2) = $1,380.93
Current value of Bond M = Total present of value of the coupon payment of Bond M + Present value of the face value of Bond M = $3,685.54 + $1,380.93 = $5,066.47
b. Calculation of current price of Bond N
Since no coupon payments is made over the life of Bond N, we have:
Current value of Bond N = Present value of the face value of Bond N = Face value / (100% + Required return)^(Number of years to maturity * Number of years in a year) = $30,000 / (100% + 8%)^(20 * 2) = $1,380.93
what does it mean to be an economically responsible citizen?
Answer: Hope This Helps!
Explanation:
A responsible citizen has knowledge about his/her role in community, state and the world. A responsible citizen has a role in making the world a better place to live (for every components in biosphere). A responsible citizen is change agent that acts out against injustice in social, economic, and environmental sectors.
The Pampered Pet Shop operates in a perfectly competitive industry and hires you as an economic consultant. The firm is currently producing at a point where market price equals its marginal cost. Its market price is less than its average variable cost. You advise the firm to:_____.
a. raise its price until it breaks even.
b. lower it's price so it can sell more units of output.
c. cease production immediately, because it is incurring a loss.
d. produce in the short run to minimize its loss, but exit the industry in the long run.
Answer:
c. cease production immediately, because it is incurring a loss.
Explanation:
When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.
However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.
Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.
Once price is less than average total cost or average variable cost it is better to stop production.
As they are incurring an economic loss
Answer: cease production immediately, because it is incurring a loss
Explanation:
A perfectly competitive industry is an industry whereby firms make similar products, and there are many firms and customers.
Since from the scenario, the market price is less than its average variable cost, it is advisable for the firm to stop producing. This is because the firm isn't covering its variable cost, therefore it's running at a loss.
Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay.
a. True
b. False
Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay. This statement is True.
What is Contract?A contract is an agreement between parties that establishes legal duties for both parties. The fundamental components necessary for the agreement to be a valid offer and acceptance, adequate consideration, capacity, and legality are: mutual assent, expressed through a contract-compliant offer.
Contracts are legal obligations that contain promises. State common law primarily governs contract law, and while broad contract law is prevalent nationwide, different state courts may have different interpretations of particular contract clauses.
Contracts are created when one party's promise results in the creation of a duty between the parties. A promise must be given in exchange for sufficient consideration in order for it to be regarded as a contract. There are two various theories or definitions to take into account: Benefit-Detriment theory of consideration and the bargain theory of consideration
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Foreign Sub, for which the functional currency is the local currency, recognizes a receivable on 11/12/20X1. On December 31, 20X1, Foreign Sub's parent company determines that the exchange rate has changed since the receivable was recognized. In its consolidated financial statements, the parent company should report Foreign Sub's receivable using the exchange rate:_______
a. in effect on 12/31/20X1.
b. that results in the highest reported receivable.
c. in effect on 11/12/20X1.
d. that results in the lowest reported receivable.
Answer:
c. in effect on 11/12/20X1.
Explanation:
According to IAS 21 the exchange rate used to record financial transactions in consolidated statement is the exchange rate at which the transaction took place. There is allowance to used an average rate if the historic rate is not accurate. The receivable should be recorded at the exchange rate which was in effect on 11/12/20X1.
On January 1, Marigold Corp. issued $6600000, 9% bonds for $7029000. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Marigold uses the effective-interest method of amortizing bond premium. At the end of the first year, Marigold should report unamortized bond premium of:________
a) $397320
b) $398580
c) $375320
d) $297000
Answer:
a) $397320
Explanation:
Total premium of bond = Issue price - Par value
Total premium of bond = $7,029,000 - $6,600,000
Total premium of bond = $429,000
Total Annual payment to be made by firm = Coupon rate* par value of bond
= 0.09*$6,600,000
= $594,000
Interest part of the total annual payment made by firm = Market rate*Issue price of bond
= 0.08*$7,029,000
= $562,320
Premium of bond to be amortized at the end of year 1 = Total Annual payment to be made by firm - Interest part of the total annual payment made by firm
= $594,000 - $562,320
= $31,680
Unamortized premium at the end of year 1 = total premium of bond - amortized premium at the end of year 1
= $429,000 - $31,680
= $397,320
Distributions from corporations to the shareholders in a nonliquidating distribution will usually be classified as a dividend up to the amount of the corporation's retained earnings stock basis taxable income for the year earnings and profits.
a. True
b. False
Answer: Earnings and profits.
Explanation:
This is not a true or false question as the options are given first.
It is assumed that dividends comes from earnings and profits so when a company distributes dividends, the total amount of those dividends cannot exceed the total amount of accumulated earnings and profits that the company has.
If the dividends exceed this amount, then they are to be considered as a return on capital to the shareholder and this is beholden to a different tax regime.
Following the sale by one of its partners of her interest in the partnership, Glendale Partnership is required to increase the basis of its assets under Code Sec. 743(b). The total Code Sec. 743(b) adjustment is $8,000. The purchasing partner's share of the partnership's assets is as follows:
Inventory $2,000 $5,000
Property 1 (Sec. 1231 asset) 10,000 25,000
Property 2 (Sec. 1231 asset) 20,000 10,000
$32,000 $40,000
How much of the basis adjustment should be allocated to the inventory?
a. $1,000.
b. $3,000.
c. zero.
d. none of these.
Answer:
b. $3,000.
Explanation:
The computation of the amount of the basis adjustment allocated to the inventory is shown below;
= $5,000 - $2,000
= $3,000
This $3,000 would represent the basis adjustment and the same would be allocated to the inventory
hence, the correct option is b.
And, the rest of the options would be incorrect
How are the FDIC and NCUA similar? Select all that apply
They both regulate credit unions.
They both provide insurance for financial institutions.
They both regulate federally chartered banks.
They are both by the US government.
Which portion of government does reapportionment significantly impact? A. Congress
B. Judicial branch, specifically federal judges
C. Senate
D. House of Representatoves
Answer:
judicial branch , specifically federal judges
Which of the following statements is correct?
a. The current cash flow from existing assets is highly relevant to investors. However, since the value of the firm depends primarily upon its growth opportunities, accounting net income projections from those opportunities are the only relevant future flows with which investors are concerned.
b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.
c. To estimate the net cash provided by operations, depreciation must be subtracted from net income because it is a non-cash charge that has been added to revenue.
d. Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible. This treatment, other things held constant, tends to discourage the use of debt financing by corporations.
e. If Congress changed depreciation allowances so that companies had to report higher depreciation levels for tax purposes in 2013, this would lower their free cash flows for 2013.
Answer:
The correct statement is:
b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.
Explanation:
Net income and free cash flow are profitability measures. While net income measures profitability by including all expenses: cash and non-cash, free cash flow measures profitability by excluding the non-cash expenses but instead includes spending on assets and working capital periodic changes.
7. How can you use nonverbal communication to express an idea to someone?