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3 years ago

Illinois Woodworking Company is preparing its statement of cash flows using the indirect

Business

2 answers:

loris [4]3 years ago

5 0

Answer:

A) The cash receipt of $6490 is shown as a positive cash flow in the investing activities section.

Explanation:

The neet book value of the equipment sold, is a non-cash item, so all the money reveiced from the sale is reflecting on as a positive cash flow in the financing activities section.

kirill [66]3 years ago

4 0

Answer:

A) The cash receipt of $6490 is shown as a positive cash flow in the investing activities section.

Explanation:

The Statement of Cash Flow represents cash receipts and their sources.

A typical CashFlow statement is divided into 3 segments:

Operating Activities
Investing Activities
Financing Activities

Sale & Purchase of Fixed Assets are considered as Investing Activities. Therefore the total cash receipts from such is shown as a positive entry in the statement.

However under the Operating activity, the profit on disposal is adjusted from the Operating Profit when adjusting for items not involving flow of cash. This is if the Cashflow statement is prepared using the indirect method.

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A firm is reviewing an investment opportunity that requires an initial cash outlay of $336,875 and promises to return the follow

Fofino [41]

Answer:

The NPV of this investment is $64,581.75

Explanation:

Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:

$NPV=-Investment+\frac{CF1}{(1+r)^{1} }+\frac{CF2}{(1+r)^{2}} +\frac{CF3}{(1+r)^{3}} +\frac{CF4}{(1+r)^{4}} +\frac{CF5}{(1+r)^{5}}$

Where

NPV = Net Present Value

CF = The cash flow stated in the problem by year

r= discount rate (in our case, 0.08 or 8%)

Now, let´s solve this.

$NPV=-336,875+\frac{100,000}{(1+0.08)^{1} }+\frac{82,000}{(1+0.08)^{2}} +\frac{76,000}{(1+0.08)^{3}} +\frac{111,000}{(1+0.08)^{4}} +\frac{142,000}{(1+0.08)^{5}}$

$NPV=-336,875+ 92,592.59 + 70,301.78 + 60,331.25 + 81,588.31+96,642.81$

$NPV=64,581.75$

So, the net present value of this project is $64,581.75

Best of luck.

7 0

3 years ago

Which of the following statements best describes the Sherman Act?A. The Sherman Act established the United States Securities and

aleksandr82 [10.1K]

Answer:

B. The Sherman Act allows the US government to regulate activities that restrain competition and trade

Explanation:

The Sherman Antitrust Act of 1890 was first legislation enacted by US congress. It was brought into force to regulate competition and trade among enterprises. This act prohibits agreement in restraint of trade or interference of power in trade like price fixing, bid rigging, etc.

The Sherman Act did not work for long as it restrict the business merger and people are confused about knowing the motive of the act as it is not designed properly.

8 0

3 years ago

Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits of using standa

uranmaximum [27]

Answer:

c. used to indicate where changes in technology and machinery need to be made

Explanation:

Standard Costs are established through past experiences and hence they can be used to control costs, and plan production schedules.

Changes in technology and machinery need to be made is part of perfomance management with a future outlook.

7 0

2 years ago

Read 2 more answers

Early in your first term as President of the United States you faced an economy in the beginnings of a recession. Which of the f

astraxan [27]

Letter C I’d go with

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2 years ago

Companies in the "sunset" industries develop environment ally sound substitutes

OverLord2011 [107]

What's your question I don't understand

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3 years ago