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3 years ago

Which of the following line items of the statement of cash flows must be obtained from the income statement?

Business

1 answer:

trapecia [35]3 years ago

5 0

Answer:

The answer is D.

Explanation:

Interest Expense is a line item in income statement. It is deducted from the gross profit/earnings.

Accounts Receivable is under current asset in balance sheet

Accruals in Curren liability will also be found in balance sheet.

cash dividends paid on both preferred and common stocks will be found under Statement of changes in equity.

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The project is expected to generate the following net cash flows:

iVinArrow [24]

Answer:

Correct option is A 5.01%

Explanation:

Let irr be x%

At irr,present value of inflows=present value of outflows.

1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4

Hence x=irr=5.01%(Approx).

8 0

2 years ago

First Bank offers personal loans at 7.7 percent compounded monthly. Second Bank offers similar loans at 7.4percent compounded da

Korolek [52]

Answer:

The First Bank loan has an effective rate of 7.98 percent.

Explanation:

we calcualte the effective rate for both loand and check which statement is correct.

First bank:

$(1+\frac{0.077}{12} )^{12} = 1 + r_e$

$(1+\frac{0.077}{12} )^{12} - 1 = r_e$

1.07977643 - 1 = 0.07977 = 7.98%

Second bank:

$(1+\frac{0.074}{365} )^{365} = 1 + r_e$

$(1+\frac{0.077}{365} )^{365} - 1 = r_e$

1.076798729 - 1 = 0.076798729 = 7.68%

Notice tthis isthe effective rate not the annual percentage rate.

So only the statement abour the first bank effectibe rate is true.

7 0

3 years ago

If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to _____

snow_tiger [21]

Answer: The correct option is "c.exercising an in-the-money put option".

Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to exercising an in-the-money put option on the assets of the firm.

because he would be paying the debt with the participation in the equity of the company.

3 0

2 years ago

List 5 factors that you would be looking for when buying a used car.

julia-pushkina [17]

Answer:

Price, Speed, Gas type, Quality, and Reliability

Explanation:

4 0

2 years ago

Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is con

Anastasy [175]

Here, we are decide the best option between making the part or buying the part.

a. Make or Buy Analysis

Particulars Make amount Buy amount

Direct Materials $4.50

Direct Labor $1.00

Overhead (80% of Direct Labor) $0.80

Cost to buy $4.70

Cost per unit $5.70  $4.70

Cost Difference = $5.70 - $4.70

Cost Difference = $1.00

Therefore, the cost difference of making amount over buying amount is $1.00.

b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.

Therefore, the buying of the part is the best decision.

See similar solution about Analysis

brainly.com/question/23287319

3 0

2 years ago

Which of the following line items of the statement of cash flows must be obtained from the income​ statement?

Which of the following line items of the statement of cash flows must be obtained from the income statement?