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3 years ago

Cash flows from investing activities include all of the following except:

Business

1 answer:

astra-53 [7]3 years ago

5 0

Answer:

(D) Cash proceeds from borrowing

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets. It also includes collections on loans and Cash advance to borrowers

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.

Options A, B, and C are the investing activities whereas option D is financing activities.

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A company purchased a piece of equipment for $50,000 and the equipment has an expected useful life of five years. Its residual v

Simora [160]

Answer:

$12,000

Explanation:

Given that,

Cost of equipment = $50,000

Expected useful life = 5 years

Estimated residual value = $4,000

Depreciation refers to the fall in the value of fixed assets with the passage of time.

Here, we are using double-declining-balance depreciation method,

Firstly, we are calculating the straight line depreciation rate as follows:

= (100% ÷ useful life)

= (100% ÷ 5)

= 20%

So, the double-declining depreciation rate is calculated by multiplying the straight line depreciation rate by 2. It is calculated as follows:

= 2 × straight line depreciation rate

= 2 × 20%

= 40%

First year depreciation is calculated as follows:

= Double-declining depreciation rate × Cost of equipment

= 40% × $50,000

= $20,000

Therefore, the amount of depreciation expense for the second year is calculated as follows:

= Double-declining depreciation rate × (Cost of equipment - First year depreciation)

= 40% × ($50,000 - $20,000)

= 0.4 × $30,000

= $12,000

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2 years ago

What business structure automatically reinvests profits in the corporation?

zhuklara [117]

Answer:

A sole proprietorship

Explanation:

7 0

2 years ago

For most accounting positions, the minimum educational requirement is

Archy [21]

It’s c I had this problem a week ago

3 0

2 years ago

Federal law prohibits employers from hiring certain illegal alien workers. Suppose an employer advertises the availability of a

Vladimir79 [104]

Answer:

The correct answer is Conflict.

Explanation:

Ethical conflict, is all conflict of values, that is when contradictory values come into play when faced with the need to make a decision.

As examples we have, the construction of a dam that will allow to provide electricity to a region, but implies pollution or destruction of the environment; having an abortion is a moral problem, practicing a woman abortion is an ethical problem; stealing is a moral problem, defining punishment is an ethical problem; Euthanasia is a moral problem, defining who should apply is an ethical problem.

Conflict ethics means assuming values and attitudes that men can share and defend all. It implies achieving a code of conduct of mutual responsibility that takes into account the effects of what we do, both in the present and in the future; This conflict ethic needs the defense of values that involve men, nature and the world, which strengthens respect for life and freedom.

7 0

2 years ago

Bond X is noncallable and has 20 years to maturity, an 11% annual coupon, and a $1,000 par value. Your required return on Bond X

stira [4]

Answer:

You should be willing to pay $984.93 for Bond X

Explanation:

The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid annually and the proceeds from the sale of the bond at the end of year 5.

During the 5 years, there are 5 equal periodic coupon payments that will be made. Given a par value equal to $1,000 and a coupon rate equal to 11% the annual coupon paid will be $1,000*0.11$ = $110. This stream of cash-flows is an ordinary annuity.

The PV of the cash-flows = PV of the coupon payments + PV of the value of the bond at the end of year 5

Assuming that at the end of year 5 the yield to maturity on a 15-year bond with similar risk will be 10.5%, the price of the bond will be equal to :

110*PV Annuity Factor for 15 periods at 10.5%+ $1,000* PV Interest factor with i=10.5% and n =15

= $110*\frac{[1-(1+0.105)^-^1^5]}{0.105}+ \frac{1,000}{(1+0.105)^1^5}$ =$1,036.969123

therefore, the value of the bond today equals

110*PV Annuity Factor for 5 periods at 12%+ $1,036.969123* PV Interest factor with i=12% and n =5

= $110*\frac{[1-(1+0.12)^-^5]}{0.105}+ \frac{1,036.969123}{(1+0.12)^5}$ =$984.93

5 0

3 years ago