Answer:
$37,200
Explanation:
The amount of retained earnings is calculated by using the formula below;
Amount of retained earnings = Net income - Dividends paid
In year 1, the amount of retained earnings
= $20,200 - $12,100
= $8,100
In year 2, the amount of retained earnings
= $34,200 - $5,100
= $29,100
Therefore, the amount of retained earnings at the end of year 2
= Amount of retained earnings for year 1 + Amount of retained earnings for year 2
= $8,100 + $29,100
= $37,200
Answer:
The net cash flows from operating activities is $54.9 million computed as below:
Explanation:
<u>Hi-Tech Corporation</u>
<u>Cash flows from Operating Activities</u>
Net Income 51.0
Depreciation 4.1
Loss on disposal of equipment 1.9
Increase in receivable (1.1)
Increase in payable 2.1
Increase in inventory <u> (3.1)</u>
Net CF from Operating Activities <u> 54.9</u>
The major is here is that in determining the cash flows from operating activities, the net income is adjusted for the impacts of non cash items by:
- adding back depreciation and/or amortization, loss on sale of fixed assets, increase in provision and impairment of assets (if any),
- deducting gains on sale of fixed assets, decrease in provisions and reversal of impairment of assets.
Thereafter, movement in working capital is considered as follows:
- Deduct Increase/add decrease in current assets (receivables and payable),
- Add increase/less decrease in payable.
The essence of making these adjustments are that they have have inverse relationship between net income computation and cash flows. For example, while depreciation is deducted to arrive at net income, depreciation does not involvement in cash, hence depreciation charge should be added back to arrive at cash flow from operating activities.
Regarding movement in working capital, an increase in receivable means that the reporting entity have sold its goods or services without collection cash, thus tieing down its cash resources. The same can be said of inventory where the increase in inventory means that the entity have let out cash in stocking up inventory thus reducing its cash inflow or increasing its cash outflows. But the reverse is the case when talking about payable, as an increase in payables means that the reporting entity have held back cash it will have used to settle its obligations hence increasing reducing cash outflows or increasing cash inflows.
Answer:
c. stereotypes ready to avoid a decision minefield and remain realistic about cost and difficulty
Explanation:
To take good decisions it is necessary to have many variables into account. However, the conception of stereotypes may skew the decision making process. The main problem about stereotypes is that when these are applied to every situation, new unrealistic scenarios are created, it produces confusion for the decision making process, therefore a bad decision can be taken.
Answer:
Dividend yield = 16.3636%
Explanation:
As for the information provided:
Dividend yield = $4.50
And that amount is earned on the investment amount of $27.50.
The current price as stated in the formula is on which you receive the dividend.
Dividend yield = 
= 16.3636%
As the selling price is the price at which the investment in shares is sold.
That the difference in between the selling price and the price at which it is purchased is capital gain.
