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3 years ago

Revenues and gains included in arriving at net income that do not provide cash.

Business

1 answer:

zhenek [66]3 years ago

7 0

Answer:

Non-cash revenues.

Explanation:

Non-cash revenues can be defined as revenues and gains included in arriving at net income that do not provide cash.

Basically, on the statement of cash-flow, non-cash revenues are considered not to be a real cash-flow because they don't add to the total inflow of cash.

Some examples of noncash revenues are amortization of premium relating to bonds payable, cash flow from investments that are carried under the equity method, accrued revenues, and gains from disposals of non-current assets.

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On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provi

const2013 [10]

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

PV=$80,0008(1+0.08)^-4

PV=$80,000*(1.08)^-4

PV =$ 58,802.39

interest for four years=FV-PV

interest for four years=$80,000-$ 58,802.39

=$21,197.61

4 0

3 years ago

Kevin wants to lose 5 pounds of fat. he finds it difficult to cut back on his eating, so he decides that he will walk an hour ea

Umnica [9.8K]

You can't tell because we don't know how much calories he burns each day from walking and how much calories he intakes each day

3 0

3 years ago

After cooking food that must sit for a little while before being consumed, Sherry is aware that the food must remain at a certai

Aliun [14]

Answer:

140°F

Explanation:

140°F is ordinary temperature for eliminating microscopic organisms, yet it will likewise effect and truly burn individuals. In this regard, sherry knows about that, which is the reason she comprehend that she needs to hold back to consume it. High temperatures, 140°F or more, ought not be brought into normal private or business pipes that go to end client taps and showers etc.

8 0

2 years ago

A company has the opportunity to take over a redevelopment project in an industrial area of a city. No immediate investment is r

Ganezh [65]

Answer:

1-a. The are multiple IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. Rate of return = 7.58%

2. This is NOT a good investment because the NPV is negative.

Explanation:

Note: The estimated Net Cash Flow for the 4th year in the data is erroneously stated in the question as a positive value instead as a negative value since it is a cost.

The estimated net cash flows correctly before answering the question as follows:

Year End Net Cash Flow

1 $500,000

2 $300,000

3 $100,000

4 –$2,400,000

5 $150,000

6 $200,000

7 $250,000

8 $300,000

9 $350,000

10 $400,000

The explanation of the answers is now given as follows:

1-a. Tabulate the PW versus the interest rate and determine whether multiple IRRs exist.

Note: See Part 1-a of the attached excel file for the tabulation of the PW versus the interest rate.

From Part 1-a of the attached excel file, it can be observed that multiple IRRs exist. This is because there two IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. If so, use the ERR method when e 8% per year to determine a rate of return.

Note: See Part 1-a of the attached excel file for the calculation of total future value of income when e = 8% per year.

In the attached excel file, note that year 4 has a cost not income. Therefore,

From attached excel, we have:

Total Future Value of Income = $3,661,508.81

In the attached excel file, note that year 4 has a cost (not income) of $2,400,000. Therefore, it future value is not calculated. However, the present of the cost can be calculated as follows:

Present value of cost in year 4 = $2,400,000 / (100% + e)^4 = $2,400,000 / (100% + 8%)^4 = $1,764,071.65

The rate of return can now be calculated as follows:

Rate of return = ((Total Future Value of Income / Present value of cost in year 4)^(1/Number of period)) - 1 = (($3,661,508.81 / $1,764,071.65)^(1/10)) - 1 = 0.0758, or 7.58%

2. Use the PW method and a MARR of 18% to determine whether this is a good investment.

Note: See Part 2 of the attached excel file for the calculation of net present value (NPV).

From part 2 of the attached excel file, we have:

Net present value = –$21,043.15

Since the net present value is negative, this implies that this is NOT a good investment.

Download xlsx

5 0

3 years ago

The use of the allows bank customers the ability to complete most transactions electronically without leaving home.

jeka57 [31]

The use of the <u>internet </u>allows bank customers the ability to complete most transactions electronically without leaving home.

<h3>What is Internet?</h3>

Internet help to transmit data or information across a network, making it possible for internet user to communicate and exchange information.

Example of internet are:

WAN which full meaning is Wide Area Network.
LAN which full meaning is Local Area Network.

Hence, internet play an important function as it make it possible for bank customers to complete their transactions electronically or to carryout their transaction online without having to leave their various homes.

Learn more about internet here:brainly.com/question/2780939

#SPJ1

5 0

1 year ago