Answer:
The correct answer is letter "A": operating activities.
Explanation:
Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.
When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.
Answer:
$20,000
Explanation:
The question is missing some parts:
Penn Corp. paid $300,000 for the outstanding common stock of Star Co. At that time, Star had the following condensed balance sheet:
Carrying amounts
- Current assets $40,000
- Plant and equipment, net $380,000
- Liabilities $200,000
- Stockholders' equity $220,000
After a company is acquired, the parent company (the buyer) must record all the assets and liabilities at fair market value. In this case, the fair market value was higher than the carrying value by $60,000, therefore, the value of Penn's P,P&E must increase from $380,000 to $440,000. So total assets = $480,000, liabilities = $200,000, so equity = $480,000 - $200,000 = $280,000.
Since Goodwill represents the amount of money paid in excess of equity value, then Goodwill = $300,000 - $280,000 = $20,000
Answer:
The answer is before.
Explanation:
She should create a website before investing
Answer:
NPV = $ 3,969,921.84
IRR = 23.94%
Explanation:
As the values are not given so i searched and found a similar question. i am using those values.
using formulas:
Cash Flows = Net Income + Depreciation + Investment + NWC + After-tax Salvage value
NPV = NPV(rate, CF1...CF5) - CF0
IRR = IRR(values)
It requires a table for it to be solved easily and efficiently so i am putting a screen shot of a word file on which i have solved the question. the question and its values are also given in screenshots.
