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Nastasia [14]
4 years ago
8

Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $226,000; Costs = $122,000; Other expe

nses = $7,900; Depreciation expense = $17,900; Interest expense = $14,700; Taxes = $22,225; Dividends = $12,000. In addition, you’re told that the firm issued $6,200 in new equity during 2018 and redeemed $4,700 in outstanding long-term debt. a. What is the 2018 operating cash flow? (Do not round intermediate calculations.) b. What is the 2018 cash flow to creditors? (Do not round intermediate calculations.) c. What is the 2018 cash flow to stockholders? (Do not round intermediate calculations.) d. If net fixed assets increased by $30,000 during the year, what was the addition to NWC?
Business
1 answer:
Arturiano [62]4 years ago
4 0

Answer:

Explanation:

Operating Cash Flow  $ 48,675

Net Income  $ 41,275

Depreciation   17,900  

Dividends  -$ 12,000

Stock Issued  $ 6,200

Redeemed Long-Term Debt  -$ 4,700

Cash Flow to Creditors  -$ 19,400

Interest expenses  -$ 14,700

Redeemed Long-Term Debt  -$ 4,700

Cash Flow to StockHolders  -$ 12,000

Dividends  -$ 12,000

Addition to NWC  $ 47,900

Depreciation  $ 17,900

Net Fixed Assets Inc  $ 30,000

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If a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the lo
spin [16.1K]

The condition when a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the loan thereby increasing the loan balance even though the required payment is being made, is known as a negative amortization.

<h3>What is negative amortization?</h3>

A condition where the amount owed by an individual keeps adding even after the repayments are done is known as negative amortization.

Such condition of a negative amortization arises as the amount being repaid does not fully or partly cover the interest amount.

Hence, the significance of negative amortization is aforementioned.

Learn more about negative amortization here:

brainly.com/question/22232264

#SPJ1

6 0
2 years ago
A metallurgist has one alloy containing 26%26% copper and another containing 69%69% copper. How many pounds of each alloy must h
Brilliant_brown [7]

Answer:

Ans. He must use 2,987.76 pounds of alloy X (Cu=69%) and 2,365.24 pounds of alloy Y (26%=Cu)

Explanation:

Hi, let´s call alloy X the alloy that contains 69% of Cu and alloy Y the one containing 26% of Cu. Since he needs to produce 5,353 pounds of alloy, the first equation that we need to use is the following.

X+Y=5,353

Now, we need this 5,353 pounds of the new alloy to be 50% Cu, therefore, we have to use a portion of alloy X and alloy Y. This is as follows.

0.69X+0.26Y=0.5(X+Y)

And we have already established that X+Y is equal to 5,353, therefore this equation should look like this.

0.69X+0.26Y=5,353*0.5

0.69X+0.26Y=2,676.5

And we solve for X this equation, this as follows.

0.69X=2,676.5-0.26Y

X=\frac{2,676.5-0.26Y}{0.69}

X=3,878.98-0.3768Y

Now, we use this result and substitute this for X in the first equation like this.

3,878.98-0.3768Y+Y=5,353

and then, we solve for Y

0.6232Y=5,353-3,878.98

Y=\frac{1,474.02}{0.6232} =2,365.24

So, he needs to use 2,365.24 pounds of alloy that contains 26% of Cu, this means that the rest (2,987.76 pounds) must come from the alloy that contains 69% of Cu.

We can check this result by finding the overall Cu obtained by this amounts of alloy, that is

Coppper FromX=2,987.76*0.69=2,061.55

Coppper FromY=2,365.24*0.26=614.96

That adds up to 2,676.51 pounds of pure Cu, and since the total weight of the new alloy is 5,353, this amount of copper makes up for:

PercentCu=\frac{2,676.51}{5,353} =0.5

50% of the total weight.

Best of luck.

7 0
3 years ago
Describe the key stages in integrating total quality management into the strategy of an international petrochemical company
Julli [10]

Answer:

  • Total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.

Explanation:

If my answer is incorrect, pls correct me!

If you like my answer and explanation, mark me as brainliest!

8 0
3 years ago
ou are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At
Scilla [17]

Answer:

The flood shifts the supply to the left.

The increase in healthcare costs shifts the supply curve to the left.

Explanation:

An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.

A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.

6 0
3 years ago
Every year, the Office of Federal Student Aid and various educational institutions across the nation work together to help needy
Schach [20]

Answer:

<u><em>The answer is</em></u>: <u>True.</u>

Explanation:

<u>There are several sources that offer financial aid to help students. </u>

Financial aid can come from federal sources, from the state, from educational or private institutions that help you pay for the university or professional institute.

The federal government offers several financial aid programs. Federal student aid covers expenses such as tuition and fees, room and board, books and supplies, as well as transportation. It can also help pay other related expenses, such as a computer and caring for dependents.

The U.S. Department of Education grants more than $ 120 billion a year in scholarships and grants, funds for the Study and Work Program, and low interest loans to more than 13 million students.

Thousands of educational institutions across the country participate in federal student aid programs.

<u><em>The answer is</em></u>: <u>True.</u>

4 0
3 years ago
Read 2 more answers
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