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Sauron [17]
3 years ago
11

or the year ending December​ 31, 2018, Sparks Electric expects net cash provided by operations of $ 327 comma 000​, net cash use

d by investing activities of $ 138 comma 000​, and net cash provided by financing activities of $ 49 comma 000. Sparks plans to spend $ 251 comma 000 to add a warehouse for its operations and pays $ 31 comma 000 in cash dividends. What is the amount of free cash​ flow?
Business
1 answer:
RUDIKE [14]3 years ago
4 0

Answer:

Free cash flow = 0

Explanation:

Provided details, we have

Net cash provided by Operations = $327,000

Net cash used in investing activities = ($138,000)

Net cash provided by financing activities = $49,000

Cash flow for the year = $238,000

Less; Amount for dividend = $31,000

= $207,000

Further it provides to acquire warehouse for $251,000

That will not let anything left as free cash flow, rather it will be in negative.

= $207,000 - $251,000 = - $44,000

Since after all these there will be no cash for shareholders the free cash flow is 0. As for dividend, even that will not be payable as the value in negative amount is much more than dividend.

Free cash flow is the amount available for distribution to shareholder's after meeting all the capital needs of the company.

Thus here, it is zero.

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If during the current year, liabilities of hayden travel decreased by $50,000 and owners' equity increased by $75,000, then:
lara [203]
The answer is "then <span> assets increased during the year by $25,000".

</span><span>liabilities of Hayden travel decreased by = $50,000 
</span><span>owners' equity increased by = $75,000
</span>assets increased during the year = $75,000 - $50,000
= $25,000
3 0
3 years ago
Barkley Company uses a periodic inventory system and has the following account balances: Beginning Inventory $50,000, Ending Inv
Dmitriy789 [7]

Explanation:

The computation is shown below:

a. Net purchase

= Purchase - Purchase Returns and Allowances - Purchase Discounts + Freight in

= $330,000 - $8,000 - $6,000 + $12,000

= $328,000

b. The cost of goods available for sale is

= Beginning inventory + purchase

= $50,000 + $328,000

= $378,000

c. The cost of goods sold is

=  The cost of goods available for sale - ending inventory

= $378,000 - $80,000

= $298,000

4 0
3 years ago
Suppose you owe $3,000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rate of 12% (or
lianna [129]

Answer:

Never, you will continue to be in debt

Explanation:

the interest per month are 1% of the unpaid amount:

3,000 x 1% = 30 interest per month

the minimum payment is 30 dollars

Therefore, by doing the minimum payment we are just coering the interest generated per month we are not doing any amortization on the principal Hence we cannot repay the debt.

3 0
3 years ago
Vinny asks if he should force Spud to finish the job. Could Oscar get a court order requiring Spud to actually build the display
adell [148]
<span>Vinny might be able to force the completion of the project. If the two had a written agreement that has not been violated or made conditionally null, then Spud could be legally obligated to complete the project, dependent on the interpretation of the contract by the court.</span>
5 0
3 years ago
Which of the following is correct: A. The post-closing trial balance will ensure the accounting equation is balanced at the end
kondor19780726 [428]

Answer:

D. Worksheet is a tool used in preparing adjusting entries and the financial statements, and the use of worksheet is optional

Explanation:

The correct option D because worksheet is used to adjust value and prepare the financial statements and it is not mandatory to use.

The post-closing trial balance might show that accounting equation is balanced but not every time. It only ensure the total of debits balances and total of credits balances are equal. All transaction might not correctly journalized.

The accounting cycle starts with analyzing the business transactions and ends with the preparation of a Financial Statements.

Property, Plant and Equipment are our physical, tangible and long term assets which include all land, office, building, Machinery, equipment and vehicles.

5 0
3 years ago
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