Answer:
D
Explanation:
Cash flow is the flow of cash and cash equivalent in and and out of a business.
there are three types of cash flows:
1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.
2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation
3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock
Reasons why cash flow analysis is popular
- Cash flows are less subject to manipulation when compared with net income
- Cash flow in often positive when net income is negative or zero
Answer:
PV= $9,626.49
Explanation:
Giving the following information:
Cash flow= $1,500
Interest rate= 9%
Number of years= 10
First, we will determine the future value, using the following formulas:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {1,500*[(1.09^10) - 1]} / 0.09
FV= $22,789.395
Now, the present value:
PV=FV/(1+i)^n
PV= 22,789.395/(1.09^10)
PV= $9,626.49
Answer:
B) $114,000
Explanation:
To calculate the operating cash flows using the top down approach we can use the following equation:
operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid
operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000
I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.
Answer:
the weighted mean price per share is $38.76
Explanation:
The computation of the weighted mean price per share is given below:
= (200 shares × $37 per share + 270 shares × $36 per share + 490 shares × $41 per share) ÷ (200 shares + 270 shares + 490 shares)
= ($7,400 + $9,720 + $20,090) ÷ (960 shares)
= $37,210 ÷ 960 shares
= $38.76
Hence, the weighted mean price per share is $38.76
Answer:
The correct answer is B: $46,400
Explanation:
The difference between absorption and variable costing is that the first one includes fixed manufacturing overhead in the manufacturing cost.
Giving the following information:
Absorption costing:
Direct materials= 30,000
Direct labor= 38,000
Variable factory overhead= 8,000
Fixed factory overhead= 40,000
Total= $116,000
Unitary cost= 116000/10000= $11.6
Ending finished inventory= 4000*11.6= $46,400
