Answer:
$45,100
Explanation:
Cash flows from operating activities:
Net income $48,000
Adjustments to reconcile net cash flows
from operating activities: ($2,900)
+ depreciation expense $3,900
- gain on sale of equipment ($4,500)
- increase in accounts receivable ($4,100)
<u>+ decrease in inventory $1,800 </u>
Net cash flow from operating activities $45,100
the gain on sale of equipment (or any other productive asset) is included in the cash flows from investing activities, that is why they must be decreased from operating activities.
Answer:
Shortening the duration of critical path tasks.
Explanation:
The critical path method is relevant for achieving effective project management. By visualizing the project's activities, it is possible to analyze the time needed to complete the tasks and avoid possible delays. The possibility of calculating the duration of completion time, the longest or the shortest, for each activity, also helps in reducing uncertainties, as it helps in reducing the unexpected surprises that may occur in the project.
This method also guarantees the advantage of helping to reduce project time by the possibility of visualizing which tasks can be reduced, as the method generates a greater understanding of the project's deadline as a whole, allowing a clearer view on which tasks can be changed and which should remain unchanged.
Answer:
P0 = $90.3328 rounded off to $90.33
Explanation:
The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + D0 * (1+g1)^3 / (1+r)^3
+ [ (D0 * (1+g1)^3 * (1+g2) / (r - g2)) / (1+r)^3 ]
Where,
- g1 is the initial growth rate which is 30%
- g2 is the constant growth rate which is 5%
- r is the required rate of return
P0 = 2.8 * (1+0.3) / (1+0.11) + 2.8 * (1+0.3)^2 / (1+0.11)^2 +
2.8 * (1+0.3)^3 / (1+0.11)^3 +
[ (2.8 * (1+0.3)^3 * (1+0.05) / (0.11 - 0.05)) / (1+0.11)^3 ]
P0 = $90.3328 rounded off to $90.33
P0 = $13.33