Answer:
The present value of the cash flows is $ 786.
Explanation:
This problem requires us to calculate present value of cash flows given in the question. The present value can be calculated by discounting cash flows using interest rate (5%) as discount factor.
PV= (190* (1+5%)^-1)+(390* (1+5%)^-2)+(290* (1+5%)^-3)
PV = 181 + 354 + 251
PV = $ 786
(Discount factor = CF (1+interest rate)^-period)
The first Continental Congress all meet
Answer: B) $115,200
Explanation:
Fixed costs are by definition fixed which means that they do not change as a result of a change in production level. This means that where Greenway sells 48,000 units or 54,000 units or even 0 units, the company would still incur the same fixed cost of $115,200.
The costs that change as a result of production level change are called Variable costs.
Answer:
$40,970
Explanation:
The computation of the total cost of the material K is given below;
Material needed for August sales:
= 14,000 × 3
= 42,000
Desired ending inventory:
= 14,500 × 3 × 20%
= 8,700
Beginning inventory:
= 2,500
Now
Purchases in August:
= (42,000 + 8,700 - 2,500) × $0.85
= $40,970
Answer:
C) $370,000
Explanation:
sales expressed in thousands of $
Month total sales collected in collected in collected
current m. 70% next m. 25% 2 m. 5%
Jan. 600 420
Feb. 700 490 150
Mar. 500 350 175 30
Apr. 300 <u>210</u> <u>125</u> <u>35</u>
May 75 25
June 15
total cash collection in April = $210,000 + $125,000 + $35,000 = $370,000
