Answer:
The cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be $108,099
Explanation:
Cash Flow from Operating Activities adjusts the Net Income for the Year with (1) Non-Cash Items, (2) Items Appearing Elsewhere (3) Changes in Working Capital.
From the given data Net Cash flow from Operating Activities is Determined as follows:
<u>Cash flow from Operating Activities</u>
Net income $124,042
<em>Adjustment for Changes in Working Capital.</em>
Increase In Trade Receivables (61,370-45,427) ($15,943)
Net Cash flow from Operating Activities $108,099
Answer:
C. Borrowing $43 at the risk-free rate and investing the total amount ($143) in the risky asset.
Explanation:
Outcome Return For $100 = (115 - 100)/100 = 15%;
0.15 = w1(0.12) + (1 - w1)(0.05)
0.15 = 0.12w1 + 0.05 - 0.05w1
0.10 = 0.07w1
w1 = 1.43($100)
w1 = $143;
(1 - w1)$100 = $100 - $143
(1 - w1)$100 = -$43
Answer:
=(88-79+1.45)/79=Calculating Returns formula is the correct answer.
Explanation:
