Finance

3.2 Why atomic number 18 assesses and the tax code of the essence(predicate) for managerial termination making? tax code is very important to finance managers, because near decisions are made on an after-tax basis.Therefore, taxes usurp both valuation analysis and also determine the bottom-line attribute that is the most important concern to the companys managers and shareholders. 3.4 develop why firms prefer to use accelerated disparagement readys everyplace the straight-line method for tax purposes. If a firm uses accelerated depreciation, the depreciation outgo is higher(prenominal) than with the straight-line method. This entrusts in reducing the taxable income and the summation of tax paid by the firm. As a result of this higher non-cash expense, the firms cash flow is higher. 3.8 Why are maintained wampum not considered an asset of the firm? Retained earnings are part of shareholders equity that has already been utilized by the company. It is a li ability of the company and corresponds to a claim by the firms shareholders.New bear earnings conduct to be generated to provide for new(a) uses while retain earnings reported on the equipoise sheet have already been allocated by the company among confused assets and hence are not available for current or future uses. |ASSETS | earmark VALUE | |Revenues |$1,450.000.00 | |Costs |-$812,500.00 | |Total |$637,500.

00 | |disparagement |-$175,000.00 | |Total |$462,500.00 | | touch on |-$89,575.00 | |Total |$372,925,000...If you want to get a full essay, order it on our website: BestEssayCheap.com

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