Finance

3.2 Why ar valuees and the revenue income code cardinal for managerial decision making? tax code is very burning(prenominal) to finance managers, beca persona most decisions ar made on an after-tax basis.Therefore, taxes rebuild any valuation depth psychology and also determine the bottom-line variety that is the most important awe to the friendships managers and sh beholders. 3.4 justify why firms prefer to use deepen wear and disunite methods everywhere the straight-line method for tax purposes. If a firm uses accelerated depreciation, the depreciation expense is higher(prenominal) than with the straight-line method. This passs in reducing the dutiable income and the nitty-gritty of tax pay by the firm. As a result of this higher non- coin expense, the firms cash flow is higher. 3.8 Why are hold pelf non considered an asset of the firm? maintained shekels are office staff of shareholders equity that has already been utilised by the company. It is a liability of the company and corresponds to a lead by the firms shareholders.New well-kept earnings get to to be generated to earmark for pertly uses while retained earnings reported on the correspondence sheet have already been allocated by the company among assorted assets and hence are not available for topical or future uses. |ASSETS | hold back VALUE | |Revenues |$1,450.000.00 | |Costs |-$812,500.00 | | count |$637,500.

00 | | wear and tear |-$175,000.00 | | get along |$462,500.00 | |Interest |-$89,575.00 | |Total |$372,925,000...

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