Answer:
Forecast Free Cashflow: $
Forecast earnings 1,031,000
Add: Depreciation 175,000
Add: Decrease in working capital <u>108,000</u>
Forecast free cashflow <u> 1,314,000</u>
Explanation:
Free cashflow is the aggregate of forecast earning, depreciation and decrease in working capital. Depreciation is added back to the forecast earnings because it does not involve movement of cash. Decrease in working capital is also added to the forecast earnings because it is an inflow of cash.
Answer:
Credit to Estimated Warranty Payable for $26,500
Explanation:
Based on the information given we were told that the Monthly sales were the amount of $530,000 in which the Warranty costs are estimated at 5% of the monthly sales which means that at the end of the month, the company should record a journal entry with a credit to: Estimated Warranty Payable for the amount of $26,500 which is calculated as:
Estimated Warranty Payable=$530,000 × 5%
Estimated Warranty Payable = $26,500
Answer:
subprime loan
Explanation:
Subprime loans are loans that charge a higher interest rate than normal market interest rate. They are usually given to people that don't qualify for prime rate loans (which charge a normal market interest rate). Since they are high risk clients, the creditor charges higher interest rates.
Answer: the resulting trust and confidence in the financial institutions and markets derived by society.
