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2 years ago

Cash flows from activities include both inflows and outflows of cash from the external funding of a business. True or false?.

Business

1 answer:

user100 [1]2 years ago

3 0

True.

Cash flows from activities include both inflows and outflows of cash from the external funding of a business.

<h3>Cash Flow from Financing Activities: What is it? </h3>

The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.

<h3>What Are the Different Types of Cash Flows? </h3>

Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
The reverse of a cash outflow is a cash inflow, which is money entering a business.

<h3>What three different forms of cash flows are there?</h3>

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

cash flow from operating operations
cash flow from investing activities
cash flow from financing activities.

The cash flow statement of a corporation includes all three.

Items like dividends and interest payments are excluded.
stock, debt, or alternative sources of funding.
Asset depreciation for capital goods

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g On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000

Verdich [7]

Answer:

Present value = $31,047,749

No. The present value when the interest rate is 12% is less than the present value when the interest rate is 5%

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 8 = $6,250,000

I = 12%

Present value = $31,047,748.54

Present value when interest rate is 5% = $40,395,079.75

The present value when interest rate is 5% is greater than the present value when interest rate is 12%

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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3 years ago

What is a market segment?

Kryger [21]

Answer: A market segment is a group of people who share on or more common characteristics, lumped together for marketing purposes.

Explanation: People, or sometimes groups of people, who share similar thoughts, personalities, income, or lifestyle, will often be grouped together by companies for the purpose of advertising to them more efficiently. When this happens, it is called a market segment.

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3 years ago

Read 2 more answers

At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and plac

valina [46]

Answer: See attachment

Explanation:

a. What is Poplock’s year 1 depreciation expense for each asset?

See attachment. Note that the depreciation for the assets were calculated as the original basis × the rate. e.g for Computer equipment, the Depreciation was, the original basis of $5000 × the rate of 20% which equals $1,000.

b. What is Poplock’s year 2 depreciation expense for each asset?

Check attachment.

Depreciation for computer = $1600

Depreciation for day grooming furniture = $1714

Depreciation for popup truck = $3200

Depreciation for commercial building = $6923

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3 years ago

What would a central bank need to do to reverse the effects of a favorable supply shock on inflation? what would its reaction do

denis-greek [22]

A favorable supply shock is a sudden increase in supply that makes the short-run aggregate supply curve (SRAS) shift to the right, average price levels go down and real GDP also shifts to the right. In this case, average price levels go down as shown in the figure below from p1 to p2 SRAS shifts right.

This may make create deflation in an economy and discourage new producers to enter the market, to bring back inflation, the central bank may reduce interest rates and decrease the money supply in the market, and in short, will follow expansionary monetary policy. This will make people demand more and hence as aggregate demand shifts to correct average price levels may again go up. This move will create new jobs in the market as aggregate demand will increase in the short term.

A supply shock is an event that causes unexpected cost increases or production disruptions. This shifts the short-run aggregate supply curve to the left, boosting inflation and lowering real domestic production.

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6 0

2 years ago

Justin Company's budget includes the following credit sales for the current year: September, $40,000; October, $51,000; November

zheka24 [161]

Answer:

$45,350

Explanation:

Follow the Company`s collection history to determine the November Cash Collection.

November Cash Collection :

Collected in month of sale - 15% x $45,000 $6,750

Collected for 1st month after sale - 60% x $51,000 $30,600

Collected for 2nd month after sale - 20% x $40,000 $8,000

Total $45,350

Therefore,

The cash Justin can expect to collect in November is $45,350

7 0

3 years ago