Finances Problem set 1.docx - Edjinou Prophete Fin-504-0103...

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Edjinou PropheteFin-504-0103Problem Set 1: Introduction to Managerial FinanceDecember 2018P1-1A.Ms. Harper is the owner of the company, she has unlimited liability. Therefore, the creditors can claim against her personal assets to recover the debts owned by the business.B.Ms. Harper has unlimited liability, so the creditors can claim against her personal assets to recover the debts owed to them.C.Because the company is a corporation which means that Ms. Harper has limited liability, the creditors can only take the money she has invested. Ms. Harper cannot lose more than the $25,000 she invested.P1-3a.Jane’s total cash inflows and cash outflows. Cash inflow total= $450+$4500=$4950. Cash outflow total= -$1000-$500-$800-$355-$280-$1200-$222=-$4357b.Net cash flow = total cash outflow- total cash inflow; $4357-$4950=-$593c.Jane is short $593; she can either borrow it from her bank, or she can withdraw it from asaving account or another account. Also, she can decrease some unnecessary expenses that make up her cash outflow to match her cash inflow.d.If there is a surplus it would be smart for Jane to either save that money in a saving account or another account or use that money to pay extra towards a debt that she owes. P1-4a.Marginal benefits for new robotics= benefits with new robotics minus benefits with old robotics= $560,000- $400,000=$160,000.

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