Answer:
D. All of the above
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
3. Cash-flow from financing activities: it represents the cash flow from debt or equity. Basically, the costs used in a financing a business.
<em>The purposes of the statement of cash flows are to;</em>
A. Predict future cash flows.
B. Evaluate management decisions.
C. Determine ability to pay debts and dividends.
Venture most likely to attract a venture capitalist
C. A one-year-old e-commerce company
Explanation:
A venture capitalist is an investor who invests private equity and provides capital to the companies that exhibit higher potential of growth in the future or are projected to grow on the rate they are growing.
The venture capitalists usually fund a project in exchange for an equity stake in the business.
This could to a new started venture or pre existing businesses that need to expand to newer levels like the one year old e commerce company which is a booming industry.
Answer:
Explanation:
1. 28/11 Debit: Bank. $4,500
Credit: deferred Rev $4,500
Being advance pmt for services
2. 01/12 Debit: advert exp $900
Debit: Ad Prepaym. $1,800
Credit: Bank. $2,700
Being payment for advert
3. 31/12 Debit: Salary payable$8000
Credit: Salary Exp. $8000
Being Accrued salaries
4 31/08 Debit: Bank. $70,000
Credit: Loan A/c. $70,000
Being bank loan borrowed
5. 31/12 Debit: into on loan $2,100
Credit: Bank. $2,100
Being accrued interest on loan borrowed.
Answer:
A. $5.17
Explanation:
Use the following formula to calculate the Earnings per share
Earnings per share = ( Net Income - preferred Dividend ) / Weighted average numbers of outstanding shares
Where
Net Income = $370,000
Preferred Dividend = 10,000 x $100 x 6% = $60,000
Weighted average numbers of outstanding shares = 54,000 shares + ( 18,000 shares x 4/12 ) = 54,000 shares + 6,000 shares = 60,000 shares
Placing values in the formula
Earnings per share = ( $370,000 - $60,000 ) / 60,000 shares
Earnings per share = $5.17 per share
Answer:
$30,174.74
Explanation:
The computation of present value is shown below:-
Future value = Present value × (1 + Rate of interest ÷ 1200)^12 × time period
$43,011 = Present value × (1 + 7.11 ÷ (12 × 100)^(12 × 5)
$43,011 = Present value × (1 + 7.11 ÷ 1,200)^60
$43,011 = Present value × (1 + 0.005925
)^60
Present value = $43,011 ÷ (1 + 0.005925
)^60
= $43,011 ÷ (1.005925
)^60
= $43,011 ÷ 1.425397857
= $30,174.73317
or
= $30,174.74
Therefore for computing the present value we simply applied the above formula.
We also attached the spreadsheet for better understanding
In compounded monthly, the interest rate is divided by 12 months and the time period is multiplied by 12 months and the same is to be considered
