Answer:
Depreciation expense is added back to net income when preparing the cash flow from operating activities section because depreciation represents a non cash reduction to net income. Depreciation is a non cash reduction because it notes down the the reduction in the value of an asset due to use as an expense and because the company isn't making any cash transactions due to depreciation of assets therefore it is a non cash expense and this is why it is added back to net income when preparing cash flow from operating activities.
Explanation:
Maturity Value = Principal x ( 1 + Rate x Time )
Here is:
Principal = $90,000
Rate = 6% = .06
Time = 120 / 360
Maturity value = $90,000 x ( 1 + .06 x 120/360 ) =
= $90,000 x ( 1 + .02 ) =
= $90,000 x 1.02 = $91,800
Answer: c. $91,800
<span>Tax shield is the saving in tax due to exemption of tax on interest expense = interest expense * tax rate
= $35 million * 36% = $ 12.6 million</span>
Answer: the correct answer is $7,000
Explanation:
Revenues $60,000
Expenses ($33, 000)
Paid Dividens ($20,000)
Equity $7,000 ($60,000-$33,000-$20,000)
Answer:
A
Explanation:
Allow the minor to cancel the contract
