Answer:
Cash Inflow would be cash coming into the company and Cash Outflow would be going out.
<h2>Cash Inflow</h2>
- Water Sales
- Government Grants - money given to the company by the Government to help in its operation
- Issuance of bonds - Cash inflow from debt issuance
- Used Equipment sales - cash from sale of used equipment
- Stormwater fees - paid by customers to take stormwater from property
- Discharge Permit revenue
<h2>Cash Outflow</h2>
- Well drilling - drilling well requires cash expenditure
- Maintenance - cash expense
- Accounting - Administrative expenditure
- Energy Cost
- Pension Plan Contributions - contributing to its employees' pension plans is an expense
- Heavy Equipment Purchases - Capital expenditure
Answer:
Explanation:
The journal entry is shown below:
Account receivable A/c Dr $593,850
To Sales tax payable A/c $58,850 ($535,000 × 11%)
To Sales revenue A/c $535,000
(Being sale is made on credit)
The account receivable amount includes both the sales tax payable and the sales revenue amount.
Answer:
Annual repayment under option(i) is $1490
Annual repayment under option (ii) is $2189
Therefore option A is correct
Explanation:
Immediate repayment
Loan amount $10,000
Repayment period 10 years
Interest rate 8%
Let the annual repayment be X
:10000=X*(1/0.08)*(1-(1/(1.08)^10))
1/0.08 = 12.5
1-(1/(1.08)^10 = 0.536806512
12.5*0.536806512
=6.710081399
10000=X*6.710081
X = $1,490.29
5 years grace period
let P be accummulated loan value after 5 year
P=10000*(1.08)^5 =14693.28077
Let annual repayment be Q
14693.28=Q*(1/0.08)*(1-(1/(1.08)^10))
1/0.08 = 12.5
1-(1/(1.08)^10 = 0.536806512
12.5*0.536806512 =6.710081399
14693.28=Q*6.710081
Q 2189.73
Answer:
The explanation is given in the file attached
Explanation:
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Answer:
E. If the interest rate the companies pay on their debt is more than their basic earning power (BEP), then Company Heidee will have the higher ROE.
Explanation:
Base on the scenario been described in the question, we saw that between the two companies, Heidee and Leaudy, they both have the same total assets, sales, operating costs, and tax rates, and they pay the same interest rate on their debt but company Heidee has a higher debt ratio, this will make company Heidee has a higher ROE because of its higher ratio of debt