Answer:
Computation of net cash provided by operating activities under the indirect method
<em>Cash flow from Operating Activities</em>
Net Income $370,000
<u>Adjastment for Non-Cash Items:</u>
Depreciation $92,500
<u>Adjastment of Other Items already included:</u>
Loss on Disposal of Plant Assets $37,000
Net Cashflow from Operating Activities $499,500
Explanation:
Indirect method makes adjastment to Net Income on the following items:
1.Non-Cash Items already included in the Calculation of Net Income
In this case Depreciation is a non-cash item and is added back to arrive at cash flow amount related to Net Income
2.Other items already included in other sections of cashflow statement
Loss on disposal is added back to Net Income. This relates to Activity in Investments
3. Changes to Working Capital
No further details applied to this section in the question.
Answer:
43150 units
Explanation:
For computing the equivalent units of production for conversion costs, first, we have to find the sale units which is shown below:
= Production units for material - ending work in progress units
= 44,500 units - 4,500 units
= 40,000 units
Now the ending work in progress units for conversion would be
= Ending work in progress units × percentage of completion
= 4,500 units × 70%
= 3,150 units
So, the equivalent units of production for conversion costs would be
= Sale units + ending work in progress units for conversion
= 40,000 units + 3,150 units
= 43,150 units
Answer:
0.2
Explanation:
The weighted average cost of capital (WACC) is calculated as below:
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E , where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
r_D: pre-tax cost of debt;
r_E: cost of equity;
t: tax rate
Rearrange above formula a bit, we get:
WACC = (D/A) x r_D x (1-t) + (1 - D/A) x r_E
Putting all the numbers together, we have:
10.9% = (D/A) x 8.9% x (1 - 38%) + (1 - D/A) x 12%
Solve the equation, we get D/A = 17% or D/E = 0.2
So, target debt−equity ratio is 0.2
I believe it’s False, it might be wrong though
D) They pay for specific social programs rather than general government activities.