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tino4ka555 [31]
3 years ago
7

In preparation for developing its statement of cash flows for the year ended December 31, 2016, Millennium Solutions, Inc., coll

ected the following information ($ in millions):
Payment for the early extinguishments of long-term notes (book value: $50 million) $ 54
Sale of common shares $ 176
Retirement of common shares 122
Loss on sale of equipment 2
Proceeds from sale of equipment 8
Issuance of short-term note payable for cash 10
Acquisition of building for cash 7
Purchase of marketable securities (not a cash equivalent) 5
Purchase of marketable securities (considered a cash equivalent) 1
Cash payment for 3-year insurance policy 3
Collection of note receivable with interest (principal amount, $11) 13
Declaration of cash dividends 33
Distribution of cash dividends declared in 2015 30
Required:
In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Business
1 answer:
kirza4 [7]3 years ago
4 0

Answer:

$7 million

Explanation:

Investing activities: it monitors the operations that include buying and selling long-term assets. The buying is a cash outflow, while the selling is a cash inflow

The computation of the net cash flows is shown below:

Cash flow from Investing activities  

Proceeds from sale of equipment $8 million

Acquisition of building for cash -$7  million

Purchase of marketable securities (not a cash equivalent) -$5 million

Collection of note receivable only principal amount $11 million

Net Cash flow from Investing activities $7 million

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Trek Cycles estimates the production of the model X-1 will incur an overhead of 150,000 machine hours and cost $30,000. It takes
Lelechka [254]

Answer:

Unitary cost= $11.2

Explanation:

Giving the following information:

Estimated overhead= $30,000

Estimated machine-hours= 150,000

It takes 6 machine hours per bicycle, a direct material cost of $5 per bicycle, and direct labor of $5 per bicycle.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 30,000/150,000

Predetermined manufacturing overhead rate= $0.2 per machine hour

Now, we can determine the unitary cost:

Unitary cost= 5 + 5 + 0.2*6= $11.2

3 0
3 years ago
Suppose that Tony Hsieh noticed that Zappos’s customers were no longer willing tov pay full retail prices on shoes. What actions
natta225 [31]

Answer:

1. Giving employers the right and the necessary tools they need to make good business decisions that can improve the company's efficiency.

2. Reward outstanding achievements and encourage everyone to think outside the box as well as being productive.

3. Creating a challenging and interactive environment for everyone.

4. Inspiring everyone to do their best and let them know that they will certainly be rewarded.

Explanation:

Giving employers the right and the necessary tools they need to make good business decisions that can improve the company's efficiency. Reward outstanding achievements and encourage everyone to think outside the box as well as being productive. Creating a challenging and interactive environment for everyone. Inspiring everyone to do their best and let them know that they will certainly be rewarded.

3 0
3 years ago
Vilas Company is considering a capital investment of $190,900 in additional production facilities. The new machinery is expected
makvit [3.9K]

Answer:

See below.

Explanation:

For payback period we use,

Payback = Initial outlay / Annual cash flow

Payback = 190,900/49,900 = 3.82 years

Annual rate of return is calculated as follows,

Annual rate of return = Average profit / Initial outlay *100%

Annual Rate of return = 11600/190,900) *100% = 6.08%

To calculate the NPV we discount the cash flows.

12% annuity factor for 5 years = 3.6048

PV of cash flows = 49,900*3.6048 = $179,879.52

NPV = 179879.52 - 190,900 = -$11,020.48  (negative)

Hope that helps.

4 0
3 years ago
Marigold Corp. self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it
DENIUS [597]

Answer:

loss on fire and storms 710,000

insurance expense zero as the firm didn't acquire any

Explanation:

Notice it state <u><em>"if the company were to obtain insurance"</em></u> Which means it currently has none insurance.

If the firm had an insurance the amount of losses would be deducted from the insurance policy but there is none so we disclosure the entire loss as a result of the period.

Hence, we should recognize the entire loss on fire and storm damage of 710,000 during the year and no insurance expense.

8 0
3 years ago
An excise tax of $2 is placed on a jar of Honey. Honey producers end up bearing only $0.40 of the tax. The demand curve for hone
saw5 [17]

Answer:

The correct answer is option c.

Explanation:

If the demand for a product is elastic the tax burden will be borne by the producer. This is because elastic demand means that an increase in the price will lead to a more than proportionate reduction in the quantity demanded. So with the imposition of a tax, the sellers will not increase the price as it is likely to reduce demand.

If the demand is inelastic, it means that an increase in price will lead to less than a proportionate decrease in the demand. In this situation, after the imposition of tax, the tax burden can be shared between producer and buyer.

3 0
3 years ago
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