Answer:
c. Real GDP in long run
Explanation:
Potential GDP refers to the level of real GDP in long run.
Answer:
Gutierrez Company
Cash Flow statement
for the year 2017
$
Net Income 225,000
+ Depreciation 45,000
+ Decrease in receivable 15,000
+ Increase in payable 17,000
+ Decrease in prepaid expenses <u> 4,000 </u>
Net cash flow from operating activities <u>306,000</u>
Explanation:
Depreciation is an non cash expense so it will be added to the net profit for the calculation of cash flow from operating activities. Decrease in receivable, Increase in payable and decrease in prepaid expenses result in the inflow of cash. So, they are all added in the operating income value.
The total cost of the lone will be lower
Answer:
$1.67
Explanation:
The amount of shares that was repurchased is:
$300,000/($4,187,100/127,500)
= 9,135 shares
Outstanding shares is:
127,500-9,135
= 118,365 shares
Therefore, the EPS is:
= [$215,600 - ($300,000×.06)]/118,365.
= $1.67
Thus, the amount EPS after the debt was issued is $1.67
