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1 year ago

Discounted cash flow methods consider the present value of the cash flows after the recovery of the initial investment. quizlet

1 answer:

3 0

Discounted cash flow methods do not consider the present value of the cash flows after the recovery of the initial investment.

A cash flow is a physical or virtual movement of money: a cash flow in its most limited sense is a payment, particularly from one central bank account to another.

A cash flow statement is divided into three sections: operating activities, investments, and financial activities.

Cash flow from assets is the sum of all cash flows related to a company's assets. This data is used to calculate the net amount of cash generated by or used in the operations of a business.

Companies should track and analyze three types of cash flows to determine the liquidity and solvency of their business: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.

To know more about cash flow follow the link:

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A small business produces a single product and reports the following data: Sales price $8.50 per unit Variable cost $5.25 per

ozzi

Answer:

The correct answer is Decrease by $5,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate the previous operating income, by using following formula:

Previous operating income = ($8.5 - $5.25) × 10,000 units - $22,000

= $10,500

Now, we will calculate the current operating income by using following formula:

New operating income = ($7.5 - $5.25) 12,000 units - $22,000

= $5,000

So, the change in operating income can be calculated as

Change in operating income = New operating income - Previous operating income

= $5,000 - $10,500

= -$5,500 ( Negative shows Decrease)

= Decrease by $5,500.

8 0

2 years ago

Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March Marc

san4es73 [151]

Answer:

1. Prepare general journal entries to record these transactions using the following titles:

March 1

Dr Cash (101) 175,000

Dr Office Equipment (163) 26,000

Cr Common Stock (307) 201,000

March 2

Dr Prepaid Rent (131) 6,000

Cr Cash (101) 6,000

March 3

Dr Office Equipment (163) 3,800

Dr Office Supplies (124) 2,200

Cr Accounts Payable (201) 6,000

March 6

Dr Cash (101) 4,500

Cr Services Revenue (403) 4,500

March 9

Dr Accounts Receivable (106) 10,900

Cr Services Revenue (403) 10,900

March 12

Dr Accounts Payable (201) 6,000

Cr Cash (101) 6,000

March 19

Dr Prepaid Insurance (128) 6,400

Cr Cash (101) 6,400

March 22

Dr Cash (101) 4,000

Cr Accounts Receivable (106) 4,000

March 25

Dr Accounts Receivable (106) 5,330

Cr Services Revenue (403) 5,330

March 29

Dr Dividends (319) 5,400

Cr Cash (101) 5,400

March 30

Dr Office Supplies (124) 1,700

Cr Accounts Payable (201) 1,700

March 31

Dr Utilities Expense (690) 1,400

Cr Cash (101) 1,400

2. Post the journal entries from part 1 to the ledger accounts.

Account Description Debit Credit

101 Cash 175,000

6,000

4,500

6,000

6,400

4,000

5,400

1,400

101 Cash 158,300

106 Accounts Receivable 10,900

4,000

5,330

106 Accounts Receivable 12,330

124 Office Supplies 2,200

1,700

124 Office Supplies 3,900

128 Prepaid Insurance 6,400

131 Prepaid Rent 6,000

163 Office Equipment 26,000

3,800

163 Office Equipment 29,800

201 Accounts Payable 6,000

6,000

1,700

201 Accounts Payable 1,700

307 Common Stock 201,000

319 Dividends 5,400

403 Services Revenue 4,500

10,900

5,330

403 Services Revenue 20,730

690 Utilities Expense 1,400

3. Prepare a trial balance as of April 30.

Account Description Debit Credit

101 Cash 158,300

106 Accounts Receivable 10,900

106 Accounts Receivable 12,330

124 Office Supplies 3,900

128 Prepaid Insurance 6,400

131 Prepaid Rent 6,000

163 Office Equipment 29,800

201 Accounts Payable 1,700

307 Common Stock 201,000

319 Dividends 5,400

Retained earnings 11,000

403 Services Revenue 20,730

690 Utilities Expense 1,400

TOTAL 234,430 234,430

6 0

3 years ago

Incremental Analysis for Discontinuation Decision Total Contribution margin lost if special oats is discontinued Less: Fixed cos

Scilla [17]

Incremental Analysis for Discontinuation Decision can have two way affect to the Business

Explanation:

1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues

Less:

2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.

Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.

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2 years ago

Foreign investors assess not only the interest rate offered on financial securities but also (check all that apply):

Greeley [361]

Answer:

their total wealth

-their future expenditure needs

-the risk on the security

Explanation:

Financial System

This simply are markets and various financial units or intermediaries that help transfer financial assets, real assets, and financial risks in various forms from one person to another, from one place to another, and from one point to another

3 Main functions of the Financial System

1.) The achievement of the purposes for which people use the financial system

2.) The discovery of the rates of return that equate aggregate savings with aggregate borrowings

3.) The allocation of capital to the best uses

An investment

This is simply defined as the current commitment of current resources in the hope of getting greater resources in the future. It reduces current consumption in hopes of greater future consumptions. When making investment, different actions are considered before decision making.

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2 years ago

Hello, I'm a sister of a brother that needs a Gm.ail friend he talks a lot loves bablayeds those tops that spin in cycles and ga

wariber [46]

it won't let you put a g-mail in here.

8 0

3 years ago