Answer:
Cash flow from Operating Activities
Net income $455,000
Adjustments for non-cash items :
Depreciation expense $95,500
Gain on sale of machinery ($26,300)
Adjustment for Changes in Working Capital :
Increase in Accounts receivable ($52,800)
Decrease in Prepaid expenses $17,400
Increase in Accounts payable $6,200
Decrease in Wages payable $2,100
Net Cash from Operating Activities $497,100
Explanation:
The Indirect method adjusts the Profit before tax with the following items :
- Non-cash items previously added or deducted from net income
- Changes in Working Capital
Answer:
We consider the salvage value as an income at the last moment.
Explanation:
The salvage value is the money we can when we sell the fixed assets we use in project.
When we compute the net present value , we consider the salvage value as an income in the last moment. We have to consider the time of the project to bring it at the actual moment. If the rate of discount is different to 0, the actual value of salvage value , will always be smaller that the $45,000
Answer:
5.38 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt
where,
Cost of Equity = 9.00 % (given)
After tax Cost of Debt = 6% x (1 - 0.21) = 4.74 %
Market Value of Equity = 1/5 x $13 million = $2.6 million
Weight of Equity = $2.6 million / $11.6 million = 0.22
Weight of Debt = $9 million / $11.6 million = 0.76
therefore,
WACC = 9.00 % x 0.22 + 4.74 % x 0.76
= 5.38 %
thus
the company’s WACC is 5.38 %
Answer:
The daily consumption rate per capita is equal to USA daily consumption divided by the population in 2010.
This give us 0.062 barrels of oil (19,148,000/309,000,000).
Explanation:
The usage of barrels of oil is indicated in a daily total of 19,148,000 barrels.
The 2010 USA population is given as 309 million.
Therefore, to obtain the daily consumption of barrels of oil per person or the consumption rate per capita, the daily consumption is divided by the population.
Consumption rate per capita is the consumption per each head in the population.
This consumption rate per capita can be used to compare the consumption over time and with other countries with different population sizes. This rate also indicates how each individual citizen of the USA is affected by the consumption of oil.
It does not actually imply that each individual has or can consume such quantity of oil per day.
This question is usually asked during job interviews. The interviewer wants to know what skills and knowledge do you have that will help him/her tell if the job is really suitable for you. You will just have to enumerate the technical skills you are confident on based on your experience and previous lessons.