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
Answer:
The company’s target debt-equity ratio is 1.16 : 1
Explanation:
Percentage flotation costs = 1 - (14100000/14100000 + 735000)
= 1 - (14100000/14835000)
= 4.95%
We know that:
(1 + Debt/Equity)*4.95% = 0.071 + 0.031*(Debt/Equity)(Percentage flotation cost equation)
0.0495 + 0.0495*(Debt/Equity) = 0.071 + 0.031*(Debt / Equity)
0.049545*(Debt/Equity) - 0.031*(Debt/Equity) = 0.071 - 0.0495
0.018545*(Debt/Equity) = 0.021455
Debt/Equity = 0.021455/0.018545
Debt / Equity = 1.16 : 1
Therefore, The company’s target debt-equity ratio is 1.16 : 1
Answer: c. a "fair use" exception to the provisions of the act.
Explanation: such digital sampling has been found by some federal courts to be a "fair use" exception to the provisions of the act. Fair use as a legal concept allows the reproduction or copying of copyrighted material without obtaining permission from the makers of such material and without paying fee or royalties. Purposes such as reviews, teaching, news reporting, etc. are all considered under the act.
