Answer:
the amount of the operating cash flow using the top-down approach is $4.500
Explanation:
operating cash flow using the top-down approach
operating cash flow =Sales- increase cash expenses -increase in tax
=16000-10000-(24500-23000)
=$ 4500
Note:increase cash expenses and increase in tax are cash outflow . Depreciation has not been considered as it is a non cash expenditure.
Answer:
$1,500,000
Explanation:
in order for the insurance company to pay for all the damages, you should have purchased a policy that covered $4,000,000 in damages. Since the policy only covers $3,000,000, the insurance company will pay:
($3,000,000 / $4,000,000) x $2,000,000 (loss) = 0.75 x $2,000,000 = $1,500,000
Answer:
Opening Cash Balance = $ 12,000
Add: Expected receipt = $ 30,000
Total Cash Available = $ 42,000
Less: Cash disbursement = $ 34,500
Less: Minimum Balance = $ 10,000
Closing Balance = ($ 2,500)
Therefore, company must borrow = $ 2,500
Answer:
At the start of the year their accounts receivables were 50,000. During the year they earned revenues of 180,000 which means that they are entitle to get 230,000 (180,000+50,000) from the customers. But because the accounts receivables at the end of the year are 30,000 this means that their customers still owe them 30,000. This means that they collected a total of $200,000 cash from their customers.
Another way of looking it is that at the beginning of the year they had receivables of 50,000, they made sales of 180,000 in the current year and had ending receivables of 30,000 so cash collected will be equal to,
Year start receivables + current sales - Year end receivables
50,000+ 180,000 - 30,000
=$200,000
Explanation:
