Answer:
$127,104 profit
Explanation:
Given the following :
Cost of manufacture = $600,000
Periodic payment made semianually = $60,000
Implicit interest rate (i) = 8% ; hence semiannual interest rate = 8% / 2 = 0.04
Number of lease years = 8 years ; period = (2 × 8) = 16 periods
Semiannual payment * (present value of annuity due factor)
Using the present value of annuity due factor table, PVAD(4%, 16) = 12.1184
Hence,
$60,000 × 12.1184 = 727, 104
Profit or loss made:
$727,104 - Cost of manufacture
$727,104 - $600,000
= $127,104 profit
Answer:
Produce goods and services with less of everything that goes into the process.
Explanation:
Answer:
$22,640
The explanation is shown below:-
Explanation:
The computation of cash flow from operating activities using the direct method is shown below:-
Direct method
Pizza International, Inc.
Statement of cash inflow
Cash flow from operating expenses
Cash received from customers $143,777
($143,951 - $174)
Cash Paid
To suppliers ($53,773)
($45,700 - $651 + $8,724)
To salaries and wages ($56,855)
For office expenses ($7,730)
($7,785 + $668 - $723)
For income tax expenses ($2,779)
($50 + $2,729)
Net cash inflow from operating
activities $22,640
It is mainly due to no depreciation expenses for cash products. Depreciation expenses do not contribute to cash outflows. Because of which company has reported large cash inflow from operations compared to near net loss.
Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
