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lara31 [8.8K]
2 years ago
13

During the last year, Len Corp. generated $1,170.00 million in cash flow from operating activities and had negative cash flow ge

nerated from investing activities (-640.00 million). At the end of the first year, Len Corp. had $200 million in cash on its balance sheet, and the firm had $280 million in cash at the end of the second year. What was the firm’s cash flow (CF) due to financing activities in the second year?
Business
1 answer:
Anit [1.1K]2 years ago
8 0

Answer:

The firm’s cash flow (CF) due to financing activities in the second year is    - $450 million

Explanation:

As we know that,

Net increase in cash = Operating activity - investing activity - financing activity

where,

Net increase in cash = Ending balance of second year  - ending balance of first year

= $280 million - $200 million

= $80 million

The other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

$80 million = $1,170 million - $640 million + financing activity

$80 million = $530 + financing activity

So, financing activity = $80 million - $530 million

                                   = - $450 million

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EB5.
rusak2 [61]

Answer:

1. Break-even in units is 6,000 units

2. Break-even in dollars is $720,000

3. Contribution Income Statement for 10,000 units

Sales revenue (10,000 x 120)    $1,200,000

Variable cost   (10,000 x 90)       <u> (900,000)</u>

Contribution margin                    $300,000

Fixed cost                                     <u> (180,000)</u>

Profit                                              $120,000

4. Units to sell is 16,000

5. Dollars sale is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue

Sales revenue (20,000 x 120)    $2,400,000

Variable cost   (120,000 x 90)     <u> (1,800,000)</u>

Contribution margin                       $600,000

Fixed cost                                       <u> (180,000)</u>

Profit                                              $420,000

Explanation:

1. To compute the Break-even point in units,

Formula is BEP = total fixed cost / unit contribution margin

 <em>Step 1. Compute the unit contribution margin</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

  <em>Step 2. compute the unit break-even in units using the formula.</em>

BEP = total fixed cost / unit contribution margin

BEP = $180,000 / 30

BEP = 6,000 units

2. To compute the Break-even point in dollars,

Formula is BES = total fixed cost / contribution margin ratio

 <em>Step 1. Compute the contribution margin ratio</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

So, $30 divided by $120 equals 25% (CMR)

  <em>Step 2. compute the unit break-even in dollars using the formula.</em>

BEP = total fixed cost / contribution margin ratio

BEP = $180,000 / 25%

BEP = $720,000

3. To prepare the contribution margin income statement, we will multiply the units sold of 10,000 units by $120 to get the sales revenue. Then multiply 10,000 units by $90 to get the variable cost. Further illustration below;

Sales revenue (10,000 x 120)    $1,200,000

Variable cost   (10,000 x 90)       <u> (900,000)</u>

Contribution margin                    $300,000

Fixed cost                                     <u> (180,000)</u>

Profit                                              $120,000

4. To compute the units to sell to realize the target profit we will use the formula:

(Total fixed cost +  Target profit )/ unit contribution margin

 <em>Step 1. Compute the unit contribution margin</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

  <em>Step 2. compute the units to sell using the formula.</em>

(Total fixed cost + target profit) / unit contribution margin

($180,000  + $300,000) / 30

Answer is 16,000 units

5. To compute the sales in dollars to realize the target profit of $300,000,

Formula is (Total fixed cost + target profit) / contribution margin ratio

 <em>Step 1. Compute the contribution margin ratio</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

So, $30 divided by $120 equals 25% (CMR)

  <em>Step 2. compute the target sales in dollars using the formula.</em>

(Total fixed cost + target profit) / contribution margin ratio

($180,000 + $300,000) / 25%

$480,000 / 25%

Answer is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue. FIRST we must determine how many unit are sold to have that sales revenue. $2,400,000 sales revenue divided by unit selling price equals 20,000 units. To further illustrate, see presentation below.

$2,400,000 / $120 = 20,000 units

Sales revenue (20,000 x 120)    $2,400,000

Variable cost   (120,000 x 90)     <u> (1,800,000)</u>

Contribution margin                       $600,000

Fixed cost                                       <u> (180,000)</u>

Profit                                              $420,000

4 0
3 years ago
If the Fed carries out an open market operation and buys U.S. government​ securities, the federal funds rate​ ________ and the q
vitfil [10]

Answer:

decreases,  increases

Explanation:

An open market operation where the government buys securities increases the money supply so the Federal funds rates increases. Because of the increase in money supply, the reserves held by banks would increase.

the federal funds rate​ is the interest rate at which banks can borrow or lend excess reserves overnight

7 0
3 years ago
Ashley is taking an essay test in science. Her teacher tells the class what the essay question is so they can create notes befor
Liono4ka [1.6K]
I believe she should get notes from her friend if she does her and her friend can study together. That is proven in a study that if you tutor/teach or study with a person, family member or friend it improves your memory and helps you remember the things you study as well.
6 0
3 years ago
Monica paid $12 for a music CD for which she later was offered $15. After that someone offered her $18 for the CD. If Monica kee
Wewaii [24]

Answer:

False

Explanation:

The opportunity cost refers to the benefit that is foregone by choosing some other alternative. It is measurable in monetary terms as well as in non-monetary terms.

In our case,

Monica paid for CD = $12

Hence, she already paid for the CD, so here the opportunity cost is either she keep the CD or she not keep the CD for the amount of $18.

Hence, if Monica decided to keep the CD then the opportunity cost of keeping the CD is $18.

7 0
3 years ago
What information should a public company present about revenues from foreign operations?
nevsk [136]

Answer:

Disclose unaffiliated customers sales and also the intra-company sales between geographical areas.

Explanation:

Public companies are required to disclose the amount of sales to unaffiliated customers by geographical region. At the same time, they must also disclose the intra-company sales between geographical areas. It is to be noted that the above said requirements are to be reported separately.

4 0
3 years ago
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