Answer:
This question requires us to calculate cash flows from operations and net income. Each of them is calculated as follow.
Cash flows from operations
Cash flow from operation comprises of cash generated or spend on core business related purchase and sale. It will be calculated as follow.
Cash from operations = 25,000 - 100,000 =($ 75,000).
Net income
Net income will be calculated using simple cashflow equation given below.
Closing cash balance = opening cashflow + net income + depreciation + cash flow from operations + cash flow investment + cash flow finance
25,000 = 55,000 + net income + 10,000 - 75,000 - 250,000 + 170,000
Net income = 115,000
<u>Solution and Explanation:</u>
1. False- Long run Economic growth is likely to be sustainable because of finite natural resources as othe man made resources will be available to sustain growth.
2. False- In mordern economy posesing few natural resources will not affect a country to develop economically; human resources and man made resources will also contribute. Foreign trade can also play an important role towards growth, in the absence of abundant natural resources.
3. True- Natural resources are vital, and mostly exhaustible. Hence it is very essential to find suitable alternatives.
4. False- Economies of 21st century depend on human capital due to depletable atural resources.
5. True - In the 19th century, minerals and farming land were the most mportant resources, since self sustainability was in vogue.
Answer:
$953
Explanation:
According IFRS the equity and Liability portion of a bond should be recorded separately at the time of bond Issuance. The Liability portion can be calculated current value of the similar non convertible bonds and the difference between the Present value of cash flows and total proceeds from bond is the equity value.
Convertible Bond are value at the present value of their cash flows.
Use following formula to calculate the value of the bond.
Value of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Value of the Bond = ($1,000 x 6%) x [ ( 1 - ( 1 + 6.5% )^-15 ) / 6.5% ] + [ $1,000 / ( 1 + 6.5% )^15 ]
Value of the Bond = $952.99
Answer:
$19,200 Unfavorable since more material is used.
Explanation:
The company made 4,200 units, so 4,200 yards of material should be used (based on initial plan of using 1 yard per unit), but they actually used 3,960 yards.
Therefore,
Materials quantity variance:
= (Material should be used - Material they actually used) × Plastic actual cost per yard
= (4,200 - 3,960) × $80
= 240 × $80
= $19,200 Unfavorable since more material is used.
