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3 years ago

The indirect and direct methods:

Business

2 answers:

Dmitriy789 [7]3 years ago

6 0

Answer:

The indirect and direct methods:

A) Are two allowable methods to present operating activities in the statement of cash flows.

Explanation:

The option A is correct as these two different methods of cash flows are used by different companies and businesses to determine their cash flows.
The option B is incorrect as they don't affect the presentations of operating, investing and financing activities but only limited to cash flows.
The option C is incorrect as indirect method of cash flow is mostly used by the companies as compared to the direct method as direct method take large amount of time.
The option D is incorrect as net cash flow remains the same.

tia_tia [17]3 years ago

5 0

Answer A

Explanation im sure because i got a 100 on my test

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Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent comp

zvonat [6]

Answer:

$26,036.74

Explanation:

Tom is able to pay $390 per month for 7 years. The interest rate is 6.8 %. Tom will pay an equivalent of the present value of a $390 annuity for & years 6.8 per cent

The applicable formula is

PV = P × 1 − (1+r)−n

Where PV is the present value

P is 390

r is 6.8% per year or 0.005666

n is 7 year or 84 months

PV = $390 x 1-(1+0.005666)84

0.00566

PV = $390 x 1- 0. 622133410)

0.00566

PV =390 x (0.37786659/0.00566)

PV = $390 x 66.760

PV = $26,036.74

4 0

3 years ago

If import restrictions prohibit foreigners from selling various goods and services in the U.S. market,

Vesnalui [34]

Answer:

The correct answer is option b.

Explanation:

When foreign producers sell their goods and services in the US market they get US dollars in return. They use these dollars to buy goods and services from the US.

If import restrictions prohibit foreigners from selling various goods and services in the U.S. market, foreigners will have fewer U.S. dollars which they can spend to buy U.S. goods and services. So they will be able to purchase fewer goods and services from the US.

4 0

2 years ago

Baskets Inc. gathered the following actual results for the current month: Actual amounts: Units produced 6000 Direct material

ss7ja [257]

Answer:

price variance $(22,800.00) UNFAVORABLE

Explanation:

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $6.00

actual cost $9.00

quantity 7,600

difference $(3.00)

price variance $(22,800.00)

We calculate the actual cost by dividing total cost by the lbs purchased:

68,400/7,600 = 9

Because the diference is negative, the variance is unfavorable.

Each pound cost more than it was planned.

8 0

2 years ago

Insurance is the way a person or business is protected from :

nevsk [136]

Answer:

losing money

Explanation:

Helps save you from the out of pocket expense if something bad were to happen.

For example if your roof was damaged by a natural disaster it could cost thousnads of dollars out of a persons pocket.

Insurance will pay the cost to repair it allowing you to be protected from losing money.

3 0

2 years ago

A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat

Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

$price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }$

so in this particular case that one year later there are 29 years to maturity so we have:

$price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }$

$price=553.6638$

so as we have a higher rate the investment has the next return:

$return=\frac{553.66}{627.73} -1$

$return=-11.8\%$

4 0

2 years ago