Answer: A. Cash flow from investing activities
Explanation:
When we prepare a cash flow statements the sum of following heads are ascertained:
- Cash flow from operating activities
- Cash flow from investing activities
- Cash flow from financing activities
The total sum of these three heads provide the net increase or decrease in cash.
Now we add the openening balance of cash to ascertain the closing cash balance which is reported to the final balance sheet of the company under the head Current Assets.
cash flow from investing activities indicates the inflow and outflow of cash of the business in sale and purchase of investments and assets.
Answer:
$5,600
Explanation:
Calculation to determine the total amount that will be paid to common stockholders?
Total amount paid to common stockholders=$44,000-[(800 (12%)($100)*4]
Total amount paid to common stockholders=$44,000-($9,600*4 )
Total amount paid to common stockholders=$44,000-$38,400
Total amount paid to common stockholders=$5,600
(2014-2017=4)
Therefore the total amount that will be paid to common stockholders is $5,600
Answer: centralized
Explanation:
Based on the information given in the question, we can infer that McCoy operates a centralized department.
This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions
Answer:
(a) 14.9107%
(b) 17.9095%
(c) 21.13321%
Explanation:
Given that,
Net profit margin = 3.58%
Total asset turnover = 1.75
Total assets = $42.6 million
Book value of equity = $ 17.9 million
(a) firm's current ROE:
= Net income ÷ Total equity
= Net profit margin × Assets turnover × (Assets ÷ Equity)
= (Net income ÷ sales) × (sales ÷ assets) × (Assets ÷ Equity)
= 3.58% × 1.75 × ($42.6 ÷ $17.9)
= 3.58% × 1.75 × 2.38
= 14.9107%
(b) If the firm increased its net profit margin to 4.30 %,
ROE:
= 4.30% × 1.75 × ($42.6 ÷ $17.9)
= 4.30% × 1.75 × 2.38
= 17.9095%
(c) If, in addition, the firm increased its revenues by 18%,
Asset turnover increases by:
= 1.75 × 1.18
= 2.065
ROE:
= 4.30% × 2.065 × ($42.6 ÷ $17.9)
= 4.30% × 2.065 × 2.38
= 21.13321%