Answer:
Net cashflow = Net income + Depreciation
Net cashflow = 3,100,000 + 500,000 = 3,600,000 dollars
Explanation:
Net cashflow equals net income plus depreciation.
I don’t understand this question
Answer:
Design Capacity Utilization= 75%
Production efficiency = 120%
Explanation:
Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there
1. The Capacity Utilization = The Actual Output/ Design Capacity
Actual Output= 300 hamburgers a day
Design Capacity = 400 Hamburgers a day
Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100
= 75%
2. The Efficiency of the production = The Actual Output / The Effective Capacity
Actual Output = 300 Hamburgers a day
Effective Capacity = 250 hamburgers
= 300 Hamburgers/ 250 Hamburgers x 100
= 120%
Conclusion
First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.
Answer:
a) Market Value = $100 million × $20 = $2,000 million = $2 billion
Market value of equity would remain same = $2 billion
b) Market value would remain same after recap. Only market capitalization would reduce to half.
Market value of equity = 1 billion
c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.
d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.
e) Equity shareholders have gained due to increase in there share value
Explanation:
Answer:
b. $78,500
Explanation:
Assets
Equipment $65,000
Cash $12,000
Supplies $4,500
Prepaid rent <u>$2,000</u>
Total Assets <u>$83,500</u>
Equity and Liabilities
Common stock $68,000
Retained earnings <u>$10,500</u>
Total Equity $78,500
Accounts payable <u>$5,000</u>
Total Equity and Liability <u>$83,500</u>
*<u>Working</u>
Net Profit = Service revenue - Salaries Expenses - Miscellaneous expenses
Net Profit = $30,000 - $4,500 - $20,000 = $5,500
Total retained Earning = $8,000 + $5,500 - $3,000 = $10,500
