In the presentation we learned that "one exchange rate is the reciprocal of another exchange rate"

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.9 million in long-term debt, $770,000 in the common stock account

Naddika [18.5K]

Answer:

OCF = -$1,670,000

Explanation:

To calculate this, the following are first calculated:

Cash flow to creditors = Interest expense - (Long-term debt in 2009 - Long-term debt in 2008) = $230,000 – (3,500,000 – 2,900,000) = -$370,000

Cash flow to stockholders = Dividends paid – ((Common stock in 2009 + Additional paid-in surplus in 2009) - (Common stock in 2008 + Additional paid-in surplus in 2008)) = $550,000 – (($985,000 + $8,250,000) – ($770,000 + $6,000,000)) = -$1,915,000

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders = -$370,000 - $1,915,000 = $2,285,000

The the firm's 2009 operating cash flow, or OCF can now be calculated as follows:

Cash flow from assets = OCF - Net working capital investment - Net capital spending

-$2,285,000 = OCF - (-$165,000) - $780,000

-$2,285,000 = OCF + $165,000 - $780,000

OCF = -$2,285,000 - $165,000 + $780,000 = -$1,670,000

3 0

3 years ago

Total Product Cost and Per-Unit Product Cost Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint,

umka21 [38]

Answer:

Total product cost for last week= $120,000

Unit cost per hockey= $240

Explanation:

Total product cost is the sum of direct material cost, direct labour and overhead

Direct material cost is the costs of all specific materials required to product a product. For example, wood, paint for making chairs.

Direct labour : the cost of the man hours used directly for the purpose of production. wages of carpenters working on the chairs. It is arrived as active hours used for production × wage rate per hour.

Overhead :Sum of the indirect costs. indirect costs. These include expenditures on materials , labour and expenses incurred not specifically for a particular product. Examples are, cost of detergent for cleaning the toilets, salaries of the accountant, rent of the factory, e.t.c.

Total product cost for last week

= $32,000 + $28,0000+ $60,000= $120,000

Cost per product = Total product cost/ units produced

Unit cost per hockey= $120,000/500= $240

5 0

3 years ago

A company that utilizes carbon fiber 3-D printing wants to have money available two years from now to add new equipment. The com

Alenkinab [10]

Answer:

Total amount available in two years is $1,354,125.

Explanation:

The total amount available in two years can be calculated as follows:

Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000

Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125

Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000

Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125

5 0

3 years ago

Maggie called her insurance agent after estimating the damages. She had already spent $2,000 on pumping out the water and repair

Sonja [21]

The correct answers are B, E and D

6 0

3 years ago

Read 2 more answers

A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be

pashok25 [27]

Answer:

NPV =$ 60,311.80

Explanation:

The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

0 1 2 3

Operating cash flow 136,000 136,000 136,000

Initial cost (274,000)

Working capital (61,000 ) 61,000

Salvage value 15000

Net cashflow (335,000) 136,000 136,000 212,000.

PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

= 395,311.80

NPV =395,311.80 -335,000

=$ 60,311.80

3 0

3 years ago