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3 years ago

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Business

1 answer:

Delvig [45]3 years ago

4 0

Answer:

A) $97,600

Explanation:

Calculation for the net cash provided or used by operating activities

OPERATING ACTIVITIES

Net Income $86,800

Depreciation Expense 13,500

Gain on Sale of Land (6,800)

Increase in Merchnadize Inventory (3,550)

Increase in Accounts Payable 7,650

Net Cash provided by Operations $97,600

Therefore the net cash provided or used by operating activities will be $97,600

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aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

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3 years ago

Nicole works from home full-time for a non-profit organization. She receives work from and sends work to the office via a comput

BartSMP [9]

Answer:

telecommuting

Explanation:

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In this scenario, Nicole works from home full-time for a non-profit organization. She receives work from and sends work to the office via a computer and modem. Thus, this is an example of telecommuting.

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3 years ago

How can companies increase return on common stockholders’ equity without increasing revenue?

Pani-rosa [81]

D) By reducing expenses you increase margins which means there is more money available for stockholders

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2 years ago

E14.3 (LO 1) (Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2020, Simon Compan

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Answer:

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Cr Interest payable 6,000

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3 years ago

Western Company recently lost its entire inventory in an earthquake. The following information is available from its accounting

harina [27]

Answer: dont care

Explanation:

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2 years ago