Answer:
d. $33,641.50
Explanation:
In this question, we use the PMT formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $375,000
Future value = $0
Rate of interest = 7.5%
NPER = 25 years
The formula is shown below:
= -PMT(Rate;NPER;PV;FV;type)
So, after solving this, the answer would be $33,641.50
Current asset under Balance Sheet. :)
In order to calculate cash flows we must before adding the net cash from investment and financing activities to determine the company's net cash rise or reduction for that time period, the cash outflows and inflows are deducted to determine the net cash flow from operational operations.
Operating activities' net cash flow: $337,500
$700,000 in earnings before income taxes.
Vendor payments in cash: (525,000)
Customer cash taken in: $1,500,000
<h3><u>How do you figure out the cash that operating activities provide?</u></h3>
Flow of Cash from Operations
Net Income plus Non-Cash Items plus Changes in Working Capital equals Cash Flow from Operations.
- Step 1: Take the net income from the income statement to begin calculating operational cash flow.
- Add back all non-cash items in step two.
- Adjust for variations in working capital in step three.
To Learn more about Statement of Cash flows, click the links,
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The more time the higher the interest rate