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zepelin [54]
3 years ago
12

Kela Corporation reports a net income of $450,000 that includes a depreciation expense of $70,000. Also, cash of $50,000 was bor

rowed on a 5-year note payable. Based on this data, the total cash inflows from operating activities are:
a. $380,000.
b. $470,000.
c. $520,000.
d. $570,000.
Business
1 answer:
Mariana [72]3 years ago
6 0

Answer:

option (c) $520,000

Explanation:

Data provided in the question:

Net income = $450,000

Depreciation expense = $70,000

Amount borrowed = $50,000

Now,

Here out of the given transactions, the amount borrowed is a financing activity.

Therefore,

The  total cash inflows from operating activities

= Net income + Depreciation expense

= $450,000 + $70,000

= $520,000

Hence,

The correct answer is option (c) $520,000

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Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. Wha
gtnhenbr [62]

Answer:

The expected price after 1 year would be$55.5

Explanation:

According to the given data,

Price of the stock (Po) = $50

Dividend after 1year (D1) = $2

Equity cost of capital (KE) =15%

The formula for calculating the price after 1 year i.e.,(P1 ) is

                         

                          Po = (D1 + P1 )/ 1+KE                                      $50= ($2 + P1) / (1+0.15)

                        P1 = [$50(1.15)] - $2 = $55.5

6 0
2 years ago
Ace Hauling, Inc., has been transporting industrial tailings for companies around the Minneapolis/St. Paul area for the past dec
natulia [17]

Answer: The correct answer is "b. Ace has done nothing to change its CERCLA liability."

Explanation: CERCLA is the Comprehensive Environmental Response, Compensation and Responsibility Act and was designed to promote cleaning, maintenance and protection of the environment against hazardous waste.

Those responsible for releasing dangerous substances are identified to take care of their cleaning through the superfunds, therefore by creating the new corporation and transferring the assets: Ace has done nothing to change its CERCLA liability.

7 0
3 years ago
In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par val
SSSSS [86.1K]
A credit to common stock for 1000

8 0
3 years ago
A senator from a state with several steel-rod factories explains that it is necessary to impose trade restrictions, such as a ta
Sergio [31]

Answer:

Jobs argument

Explanation:

-The national-security argument states that some industries have to be protected by imposing tariffs to maintain the local production in case of a war.

-The unfair-competition argument says that the domestic market has to be protected when there is unfair competition because companies from other countries are subject to different regulations.

-Using-protection-as-a-bargaining-chip argument states that the threat of imposing a restriction can help to eliminate a restriction that was imposed by another country.

-Infant-industry argument says that new industries have to be protected because they don't have economies of scales that their competitors from others countries have.

-The jobs argument claims that the trade with other countries eliminates the local jobs.

According to this, the answer is that the senator is using the jobs argument to argue for the trade restriction on steel rods because he claims that it is necessary to impose those restrictions to protect the workers from losing their jobs.

8 0
3 years ago
Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a
umka2103 [35]

Answer: $75

Explanation:

Using the Gordon Growth Model:

Price of stock = Next year dividend / (Required return - growth rate)

Growth rate is 0% as dividend does not change per year.

Price of stock = 6 / 8%

= $75

7 0
2 years ago
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