The direct method of cashflow is one that lists the operating cash receipts and subtracts operating cash payments.
<h3>What is the cash flow direct method?</h3>
This cashflow method determines the changes in cash receipts and payments that are reported in the cash flow from the operations section.
Hence, the method method of cashflow is one that lists the operating cash receipts and subtracts operating cash payments.
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Answer:
19%
Explanation:
Calculation for what The internal rate of return on the investment in the tractor-trailer is closest to
First step is to calculate Factor of the internal rate of return (IRR)
using this formula
Factor of the internal rate of return(IRR)= Cost ÷ Additional Net annual cash inflow
Let plug in the formula
Factor of the internal rate of return(IRR)= $281,656 ÷ $76,000
Factor of the internal rate of return(IRR)= 3.706
Now let determine The internal rate of return on the investment
Based on the above calculation since Factor of the internal rate of return(IRR) for 7 years is 3.706 which means that the internal rate of return (IRR) will be 19%.
Or
The internal rate of return on the investment can also be calculated using below Excel formula
=RATE(7,$76,000,-$281,656)
IRR=19%
The internal rate of return on the investment in the tractor-trailer is closest to 19%
Answer:
Profit Margin = income / sales
45,000 / 1,000,000 = 4.5%
Return on Assets = income / assets
45,000 / 250,000 = 18%
Assets turnover = sales / assets
1,000,000 / 250,000 = 4
Earning per share: income / shares outstanding
45,000 / 40,000 = 1.125
Price- Earning ratio = market price / EPS
28 / 1.125 = 24,89
Return on Equity = income / equity*
45,000 / 120,000 = 37.5%
Debt to Equity ratio liab / equity
130,000 / 120,000 = 1,08
Explanation:
*solving for equity
Assets = laib + equity
250,000 = 130,000 + equity
equity = 120,000