Answer:
$99,000
Explanation:
According to the scenario, computation of the given data are as follows,
Net income = $55,000
Add- Depreciation expense = $70,000
Less- prepaid rent = $50,000
Add- accounts payable = $11,000
Add- Income tax payable = $13,000
Total = $99,000
Hence, Net cash flow from operating activities = $99,000
Answer:
1. Merchandise held on consignment for Trout Creek Clothing.
- Excluded from the company's year-end inventory because they belong to another company.
2. Goods shipped f.o.b. destination on December 28 that arrived at the customer's location on January 4.
- Included in the company's year-end inventory because FOB destination shipments transfer ownership only after they are delivered, not while on transit.
3. Goods purchased from a vendor shipped f.o.b. shipping point on December 26 that arrived on January 3.
- Included in the company's year-end inventory because FOB shipping point shipments transfer ownership after they leave the seller's facilities.
4. Goods shipped f.o.b. shipping point on December 28 that arrived at the customer's location on January 5.
- Excluded from the company's year-end inventory because FOB shipping point shipments transfer ownership after they leave the seller's facilities, so they belong to the buyer now.
5. Phoenix had merchandise on consignment at Lisa's Markets, Inc.
- Included in the company's year-end inventory because merchandise on consignment belong to the company, not to Lisa' Market.
6. Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 3.
- Excluded from the company's year-end inventory because FOB destination shipments transfer ownership only after they have been delivered, not while in transit.
7. Freight charges on goods purchased in 3.
-
Included in the company's year-end inventory because freight costs under FOB shipping point are paid by the buyer.
Answer:
Billy's mom increases his weekly allowance by $ 55 . As a result, Billy increases the number of apps he downloads on his smartphone.
If with increase in income demand increases, the good will be a normal good. Thus, apps that billy downloads are normal goods.
Susan gets a 15 percent performance bonus at work. She can finally stop eating so many frozen pizzas and eat something more tasty. Frozen pizzas are: Inferior goods
Here with increase in income, the demand for a commodity falls, the so called commodity is a inferior good. Thus, in this case frozen pizzas are inferior goods.
Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name brand cereal to generic cereal. Generic cereal is: Inferior goods
If there is a fall in income and thus demand increases, the good is inferior. Thus, in this case generic cereal is an inferior good.
Hair stylist Molly loses a few of her clients. Molly cuts back on the number of smoothies she buys during the week. Smoothies are: Normal goods
If there is a decrease in income and thus demand falls, the good is normal. Thus, smoothies as commodity in this case will be refereed to as normal goods.
Answer:
The best recommendation to be made to this client is to do nothing.
Explanation:
Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.
From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.
Since losing so much money through investment in stock is not affordable to him, the best recommendation to be made to this client is to that he should do nothing.
Answer:
Risk free interest rate is 5%
Y is 15.5% at a Beta of 1.5
X is 0.29 when Y is 7%
Explanation:
Risk free interest is 0.05 which 5% as given in the equation
The average expected return is given by Y
Y=0.05+0.07X
Since Beta is the same as X, when equals 1.5,Y is calculated thus
Y=0.05+0.07(1.5)
Y=0.05+0.105
Y=0.155
Y=15.5%
The value of Beta at an average return of 7% is computed thus:
7%=0.05+0.07X
where X is the unknown
0.07=0.05+0.07X
0.07-0.05=0.07X
0.02=0.07X
X=0.02/0.07
X=0.29
The scenario illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.