Answer:
Operating cash flows = $208,000
Explanation:
we know here that
accounts payable balance has decreased from $36,900 and $31,200
inventory balance has increased from $43,300 and $47,000
so to find out the operating cash flow any decrease in current liabilities and any increase in current assets should be subtracted from net income
so
accounts payable= current liability
and inventory = current asset
and
The operating cash flows to be reported should be computed as
Operating cash flows = Net income - Decrease in accounts payable balances - Increase in inventory balance ....................1
Operating cash flows =
Operating cash flows = $217,400 - ($36,900 - $31,200) - ($47,000 - $43,300)
Operating cash flows = $208,000
Self-Analysis
According to the Arkansas Small Business Development Center, most small businesses fail because of poor management and the owner’s inability to manage resources. Before you even start researching the feasibility of your idea and the market you plan on entering, evaluate your own talents, desires and goals. Consider your willingness to take risks as well as the amount of time and energy you’ll need to make the business a success. Review your financial, personnel and marketing skills as well to ensure you have the necessary background to make a success of your new venture.
Financial Components
After learning about the investment required to purchase the existing business or franchise or the start-up costs you’ll need initially, evaluate your own resources. Part of a financial assessment includes the amount you have in personal savings to add to the initial investment. Banks typically require entrepreneurs to come up with a portion of the investment to show good faith and willingness to take a risk with the lender. Assess the financing available through the seller, investors and lenders when evaluating your chances of succeeding.
Market Research
To thoroughly understand what you’re getting into, perform an extensive market research project to determine the feasibility of your business. In addition to gleaning statistics of trends and current customer buying patterns, you need to know who your customers are, where they are located and what kind of competition exists in your area. Consider market research your first steps in opportunity analysis that help you understand exactly how you will sell products or services to a specific market.
Support
Finally, evaluate the amount of support you expect to receive from your family and the community.
Answer:
0.4766
Explanation:
Given:
WACC = 9.7%
Company’s cost of equity = 12%
Pretax cost of debt = 7.5%
Tax rate = 35%
Now,
WACC
= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)
or
0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)
or
0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight
or
0.04825 = 0.07125 × weight
or
weight = 0.6772
also,
weight = 
or
= 
or
= 
+ 1
or
1.4766 = + 1
or
= 0.4766
Answer: c. capital loss.
Explanation:
A capital loss refers to a scenario where the price of a security falls below the price at which it was purchased. This is what happened to the Alpha Industries stock above as the price dropped from $39 to $37 which led to a capital loss of $2.
The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.
