The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $2,700
<h3>What is cashflow?</h3>
This is the amount of cash , which a company receives or gives out by the way of payments to its creditors.
Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.
The duration of the payment is 12 months, hence
Monthly amortization
= $3,600 / 12
= $300
Rent expense for year 1
= $300 × 3
= $900
The ending balance in the prepaid rent account will be
= $3,600 - $900
= $2,700
This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.
Hence, the cash outflow for rent that would be reported on the Year 1 statement of cash flows is $2,700
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Answer:
The Chinese government holds $200 of U.S. bonds.
Explanation:
LThe Chinese government holds $200 of U.S. bonds. This is so because of payments must the same to each other and since the U.S spent a total of $2,100 and the Chinese as we can see also spent a total of $1,900 with the bonds not been included, getting the difference between them American and Chinese bond ($2,100-$1,900) which is $200.Financial Account for U.S =$200 and the Financial Account for Japan=$800 For the U.S., it is more money coming in than out so it has a $600 Financial account Surplus. China has a $600 outflow or money going out, for this reason China will be the one having a deficit in its financial account.
Answer:
In his traditional role Finance
Manager is responsible for
Select one:
a
Running the business smoothly
b
Proper utilisation of the funds
c
Arranmgement of financial
resources
d
Efficient management of cash
Explanation:
In his traditional role Finance
Manager is responsible for
Select one:
a
Running the business smoothly
b
Proper utilisation of the funds
c
Arranmgement of financial
resources
d
Efficient management of cash
Answer:
BUILDING C
Explanation:
Calculation to determine In which building would you recommend that The Nash Inc. locate, assuming a 12% cost of funds
BUILDING A $611,000
Calculation for BUILDING B
Annual payments $71,370
X PV factor 8.65246=1+(1-(1.11)^-24)/0.12
Net present value $617,526.1
Calculation for BUILDING C
Annual rental $6,800
X PV factor 7.71993 =(1-(1.11)^-25)/0.12
Present value 52,495.5
Net present value =$657,400- $52,495.5
Net present value =$604,905
Net present value
Building A $611,000
Building B $617,526.1
Building C $604,905
Based on the above calculation Nash inc should locate itself in Building C because it has less Net present value
Therefore the building you would recommend that The Nash Inc. locate, assuming a 12% cost of funds is BUILDING C
