Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
a. $519
b. $481.69
c. $500 Today
Explanation:
a. Computation of amount in one year
= $500 × 1.038
= $519
for computing the 1.038 (1 + 1.038)
b. Computation of amount of today
= $500 ÷ 1.038
= $481.69
c. $500 today
No, because today I have money and it will not depend on when I need the money. I can earn interest and invest the amount till the time I need the money actually.
Answer:
Statement of Cash Flows (Direct Method)
For Year Ended December 31, 2020
Particulars Amount
Cash Flows from operating activities:
Cash Receipts from:
Customers ($50800+ $190100) $240,900
Dividend Revenue $18,800 $259,700
Less: Cash payments:
For Interest -$10,000
For Income Taxes -$16,900
To suppliers for Merchandise -$115,600
For Salaries and wages -$57,100
For Operating Expenses -$28,300 -<u>$227,900</u>
Net Cash provided by operating activities <u>$31,800</u>
Is committed to maintain a product oriented philosophy
