1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Naddik [55]
3 years ago
14

Volbeat Corp. shows the following information on its 2015 income statement: sales = $231,000; costs = $135,000; other expenses =

$7,900; depreciation expense = $14,400; interest expense = $14,300; taxes = $20,790; dividends = $11,500. In addition, you’re told that the firm issued $5,800 in new equity during 2015 and redeemed $4,300 in outstanding long-term debt.
What is the 2015 operating cash flow?
Operating cash flow What is the 2015 cash flow to creditors?
Cash flow to creditors What is the 2015 cash flow to stockholders?
Cash flow to stockholders If net fixed assets increased by $28,000 during the year, what was the addition to NWC?
Business
1 answer:
laiz [17]3 years ago
6 0

Answer:

A.$67,340

B.$18,600

C.$5,700

D. Net working capital increase by $28,000.

Explanation:

A. Operating cash flow = EBIT + depreciationEBIT = sales – cost – other expenses - depreciation

= $231,000 -$135,000 – $7,900 -$14,400

=$73,700

Operating cash flow = $73,700+ $14,400 -$20,790= $67,340

B. cash flow to creditor = redeemed long term debt + interest= $4,300 + $14,300= $18,600

C. cash flow to stock holder = dividends – issued equity

= $11,500 – $5,800 = $5,700

D. Net working capital increase by $28,000.

As net working capital = current assets – current liability and fixed asset is a part of current asset.

You might be interested in
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,
Vlad [161]

Answer:

Explanation:

The journal entries are shown below:

1.  Notes receivable A/c Dr $450,000

          To Cash A/c                               $450,000

(Being the notes receivable acceptance is recorded)

2. Interest receivable A/c Dr $40,500

      To Interest revenue                       $40,500

(Being the interest is collected)

Interest = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (9 months ÷ 12 months)

= $40,500

The 3 months is calculated from April 1 to December 31

3.  Cash A/c Dr $504,000

             To Notes receivable A/c $450,000

             To  Interest receivable A/c $40,500

             To Interest revenue A/c      $13,500

(Being cash collected recorded)

Interest revenue = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (3 months ÷ 12 months)

= $13,500

The 3 months is calculated from December 31 to April 1

6 0
3 years ago
Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the e
lawyer [7]

Answer:

Return on company's stock = 15.6%

Explanation:

<u><em>The capital asset pricing model (CAPM)</em></u><em> relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c</em>

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 6%, Rm- 14%, β- 1.2

E(r)  = 6% + 1.2× (14- 6)%

        = 6%  + 9.6%

         = 15.6%

Return on company's stock = 15.6%

7 0
3 years ago
An upcoming convention has secured 300 rooms at $140 per room for Friday night. The rack rate for Friday night is $250 per room
m_a_m_a [10]

Answer:

$67,000

Explanation:

The total revenue will be income from the 300 rooms and that from 100 rooms

=(300 x $140) + ($100 x 250)

=$42,000 +$25,000

=$67,000

6 0
3 years ago
First National Bank charges 13.4 percent compounded monthly on its business loans. First United Bank charges 13.7 percent compou
Wittaler [7]

Answer:

First National Bank-14.25%

First United Bank-14.17%

As a potential borrower, I would go for First United Bank, as it offers a lower rate, which implies a lower interest cost on the loan.

Explanation:

Effective Annual Rate (EAR) is the equivalent annual interest rate where the interest rate for a transaction is quoted to be compounded for a period shorter that a year.

Usually , where the interest  nominal interest rate is quoted to be compounded for  a shorter period than a year, the EAR is usually higher. The EAR is computed as follows using this formula:

EAR =( (1+r/m)^(m) - 1 ) × 100

r-  nominal interest rate per annum, m- number of compounding periods in a year

So we can compute the EAR for the two banks :

First National Bank:

m= 12 compounding periods in a year

Monthly interest rate = r/m = 13.4%/12 = 0.01116

EAR = (1 + 0.01116)^(12) - 1

       = 14.25%

First United Bank:

m = 2 compounding periods in a year

Semi-annual interest rate = 13.7%/2 = 0.0685

EAR = (1+0.0685)^(2) -1

        = 14.17%

As a potential borrower, I would go for First United Bank, as it offers a lower rate, which implies a lower interest cost on the loan.

First National Bank-14.25%

First United Bank-14.17%

8 0
3 years ago
NO LINKS
Rom4ik [11]
Consumer demand, Opportunity cost
7 0
2 years ago
Read 2 more answers
Other questions:
  • John is an investor who is looking at two opportunities. One has higher risk than the other. John is willing to invest in the hi
    10·1 answer
  • Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,000. In addi
    5·1 answer
  • For various reasons related to trying to prevent a catastrophic recession during the pandemic, the federal government has and wi
    12·1 answer
  • The recently appointed CEO of XYZ Inc. uses a luxury summerhouse owned by the company for rest and relaxation with his family as
    5·1 answer
  • Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 15%. A share of stock sells fo
    7·1 answer
  • For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good fall
    13·1 answer
  • A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs p
    12·1 answer
  • Samantha Parks is the owner and CEO of Sparks, a small New York agency that develops advertising, promotions, and marketing mate
    6·1 answer
  • Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory cos
    9·1 answer
  • If aggregate expenditures increase by $14 billion and equilibrium GDP consequently increases by $70 billion, then the marginal p
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!