All categories

3 years ago

A company had the following cash flows for the year:

Business

1 answer:

BaLLatris [955]3 years ago

3 0

Answer:

$35,000 (inflow)

Explanation:

Net investing cash flows is computed as follows;

Inflow:

Issued common stock $75,000

Sold equipment 40,000

Total $115,000

Less: outflow

Purchased land $60,000

Paid dividends 20,000

Total outflow $80,000

——————

Net investing cash flows $35,000

*positive cash flows (inflow is greater than outflow) will increase the amount cash of the company

*proceeds from the bank classified as financing activity

*paid employees and sold services to customers are fall under operating activities

You might be interested in

You want to be a millionaire when you retire in 35 years. a. How much do you have to save each month if you can earn an annual r

expeople1 [14]

Answer:

Monthly deposit= $164.24

Explanation:

Giving the following information:

Future value= $1,000,000

Interest rate= 0.118/12= 0.00983

Number of periods= 35*12= 420 months

<u>To calculate the monthly deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,000,000*0.00983) / [(1.00983^420) - 1]

A= $164.24

7 0

3 years ago

Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).

Softa [21]

Answer:

B. False

Explanation:

Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

6 0

3 years ago

Calfee Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just compl

AlladinOne [14]

Answer:

$200,000

Explanation:

The computation of the ending balance in the work in process inventory account is shown below:

But before that determined the overhead rate per direct labor

Manufacturing OH estimated $595,000

Divide by DLH estimated 35000

OH rate per DLH $17

Now

Beginning Inventory of WIP $19,000

Current manufacturing cost

material $420,000

Labour $641,000

Manufacturing OH (33,000 × $17) $561000

Total Manufacturing cost $1,622,000

Total cost of WIP $1,641,000

Less: Cost of goods manufactured $1,441,000

Ending inventory of WIP $200,000

8 0

3 years ago

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price

Bad White [126]

Answer:

a. 10.60%

b. 3.53%

Explanation:

a. Calculate the yield on the repo if it has a 5-day maturity.

Profit = $34,000,000 − $33,950,000 = $50,000

Using 360 days a year, we have:

Yield on the repo = ($50,000/$33,950,000)*(360/5) = 0.1060, or 10.60%

b. Calculate the yield on the repo if it has a 15-day maturity.

Using 360 days a year also, we have:

Yield on the repo = ($50,000/$33,950,000)*(360/15) = 0.0353, or 3.53%

3 0

3 years ago

On May 30, 2018, Jane purchased a factory building to use for her business. In August 2019, Jane paid $300,000 for improvements

PilotLPTM [1.2K]

Answer:

$2,889

Explanation:

We need to use the MACRS cost recovery schedule for business property (39 years) placed on service during the 8th month = 0.963%

Jane's total deduction = total cost of improvements x depreciation schedule = $300,000 x 0.963% = $2,889

Modified accelerated cost recovery system (MACRS) is the depreciation method established by the IRS to calculate tax deductions based on asset depreciation.

3 0

3 years ago