Answer:
a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)
c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)
d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)
Explanation:
Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:
- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.
- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.
- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt
Answer:
Explanation:
the picture attached shows all the explanation needed
Answer: $45 per machine hour
Explanation:
Company uses machine hours as its overhead allocation base and there were 106,000 machine hours planned.
The overheads are $3,800,000 for indirect labor and $970,000 for factory utilities.
The rate will therefore be;
= Total Overhead / Machine hours
= (3,800,000 + 970,000) / 106,000
= $45 per machine hour
Answer: Choiceboard
Explanation: A choiceboard may be explained as an online tool usually developed by product makers or manufacturers which affords consumers to make bespoke or custom products by allowing them the flexibility of making personal choices about the type, attribute and specifications they would want their personal product to posses. The choiceboard will contain a list of various options available on each of the specifications a product could have and the customer makes his or her choice allowing them to build a fully customized product.
Answer:
The maximum price that should be paid for one share of this stock today is $46.86
Explanation:
Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.
The price of this stock at time zero (t=0) will be,
Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2
Price = $46.86
