Serena's financial goal is to reduce debt. Which statement could make Serena's financial goal specific and timely?

Statement of Cash Flows—Indirect Method

GaryK [48]

Answer:

Statement of Cash Flows

Cash flow From Operating Activities

Net income $524,580

Adjustment for Non Cash Items :

Depreciation expense - buildings $51,660

Depreciation expense - machinery and equipment $22,680

Patent amortization $5,040

Adjustments for Changes in Working Capital Items :

Increase in Accounts receivable -$73,080

Decrease in Inventories $134,680

Increase in Prepaid expenses -$6,400

Decrease in Accounts payable -$89,600

Net Cash From Investing Activities $569,540

Cash flow From Investing Activities

Buildings -$579,600

Net Cash From Investing Activities -$579,600

Cash flow From Financing Activities

Mortgage Note $224,000

Dividends Paid -$123,480

Net Cash From Financing Activities $100,520

Movement during the year $82,320

Cash and Cash Equivalents at beginning of the year $360,920

Cash and Cash Equivalents at end of the year $443,240

Explanation:

For Determination of Dividends Paid, open a Dividends Paid Account as follows :

Debit:

Cash (Balancing figure) 123,480

Balance c/d 32,760

Totals 156,240

Credit

Balance b/d 25,200

Dividends Declared 131,040

Totals 156,240

8 0

3 years ago

If you were the leader of a special-purpose team developing a new computer game and conflicts arose related to power and status

Mice21 [21]

I would listen to the team’s differences and finally come to an agreement that will be the best benefit for everyone.

6 0

3 years ago

Respond to the following comments:

MakcuM [25]

Answer:

Comment for statement A - The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the appropriate discount rate must still be specified.

Comment for statement B - There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.

Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.

Explanation:

a)

“I like the IRR rule. I can use it to rank projects without having to specify a discount rate”

The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the appropriate discount rate must still be specified.

b.

“I like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That reduces risk”

There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.

Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.

5 0

3 years ago

Stephanie is the wage earner in a "typical family" with $36,000 gross annual income. Use the easy method to determine how much i

MA_775_DIABLO [31]

Answer:

$176,400

Explanation:

Life insurance need = 0.70 × Salary amount × 7

= 0.70 × $36,000 × 7

= $176,400

Therefore using the easy method the amountof insurance that Stephanie should carry is $176,400

6 0

3 years ago

Read 2 more answers

Business are hiring workers and GDP starts to increase as consumer spending increases

Grace [21]

Answer:

True

Explanation:

The reason is that the business would only recruit extra employees if the demand of the product is increasing which means that the consumer are spending more on purchasing goods and services which would increase the domestic production that is responsible in increase in GDP of the country. So it is true that increased customer spending increases the domestic production which increase the GDP of the country.

6 0

3 years ago