Answer:
$108,500
Explanation:
The preparation of the operating activities section is presented below
Cash flow from operating activities
Net income $62,000
Add: depreciation expense $77,000
Add: Increase in account payable $10,000
Add: Increase in income tax payable $16,500
Less: Increase in prepaid rent -$57,000
Cash flow from operating activities $108,500
The negative amount shows cash outflow and the positive amount shows the cash inflow
<span>Call cost per minute = $0.04
Number of minutes talked = 550
Call charges for 550 minutes @ $0.04 = $22
We should add the monthly charge of $6 to this call charges because that too is a part of our call cost. So the total cost would be $22 + 6 = 28.</span>
Answer:
A. 0.61%
Explanation:
Calculation for what your 1-year holding-period return
Based on the information given the $1,000 par value bond will be the price for the year and we should also take note that YTM also equals the coupon rate.
We are going to use calculator to find what the following year's price will be
N = 7
I/Y = 7
PMT = 60 (60%×$1,000)
FV = 1,000
CPT PV -946.11
Now let calculate how much we would have at the end of 1 year
$946.11 + $60
= $1,006.11
Last step is to calculate for what your 1-year holding-period return
Holding-period return = $1,006.11/$1,000 - 1
Holding-period return= 0.61%
Therefore your 1-year holding-period return was 0.61%
Answer:
a. Particulars Amount
Gross sales $925,000
Less: COGS <u>$490,000</u>
EBITDA $435,000
Less: Depreciation <u>$120,000</u>
EBIT $315,000
Less: Interest on notes payable <u>$8,800 </u> (220000*4%)
EBT $306,200
Less: Tax (35%*306200) <u>$107,170</u>
Net Income <u>$199,030</u>
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b. Operating cash flow = Net income + Depreciation
Operating cash flow = $199,030 + $120,000
Operating cash flow = $319,030
