Answer:
(a) Plant assets that had cost $20,000 6 years before and were being depreciated on a straight-line basis over 10 years with no estimated scrap value were sold for $5,300.
- increases cash flows from investing activities
(b) During the year, 10,000 shares of common stock with a stated value of $10 a share were issued for $43 a share
- increases cash flows from financing activities
(c) Uncollectible accounts receivable in the amount of $27,000 were written off against Allowance for Doubtful Accounts.
- this corresponds to bad debt expense which is included in the income statement
(d) The company sustained a net loss for the year of $50,000. Depreciation amounted to $22,000, and a gain of $9,000 was realized on the sale of land for $39,000 cash.
- the net loss and the gain on the sale of land decreases the cash flows from operating activities, while the depreciation expense increases it.
- the $39,000 received will increase cash flow from investing activities
(e) A 3-month U.S. Treasury bill was purchased for $100,000. The company uses a cash and cash equivalent basis for its cash flow statement.
- not included in teh cash flow statements
(f) Patent amortization for the year was $20,000
- increases cash flow from operating activities (in a similar way than depreciation)
(g) The company exchanged common stock for a 70% interest in Tabasco Co. for $900,000.
- this is a non-cash financing and investing activity
(h) During the year, treasury stock costing $47,000 was purchased
- decreases cash flow from financing activities
Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on the terminal value used.
What is intrinsic value of stock?
A thing, asset, or financial contract can have intrinsic value if it has some basic, objective value. It may be a good buy or a good sale if the market price is less than that value. There are various approaches for determining a reasonable appraisal of a share's intrinsic value when reviewing equities.
What does terminal value mean?
The worth of a firm, project, or asset after the period for which future cash flows can be predicted is known as its terminal value (TV). After the projected period, terminal value assumes a company will continue to expand at a specific pace indefinitely.
Learn more about intrinsic value: brainly.com/question/14582100
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Answer:
Is your purpose realistic?
Explanation:
Tuition reimbursement is an employee benefit through which the company pays for an amount of continuing education credits or college coursework to be applied towards a degree.
Quon should ask the employees if they are really going to have the time and energy to take advantage of the credits.
Answer:
Total amount available in two years is $1,354,125.
Explanation:
The total amount available in two years can be calculated as follows:
Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000
Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125
Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000
Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125
