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3 years ago

The accounting records of EZ Company provided the data below.

Business

1 answer:

Brrunno [24]3 years ago

7 0

Answer:

Net cash flow from operating activities = $62,200

Explanation:

EZ Company

Statement of Cash Flow

Particulars Amount ($)

Net Income 50,000

Net cash flow from operating activities:

Depreciation expense 7,000

Amortization of patent 500

Amortization of premium on bonds 1,000

Decrease in accounts receivable 2,000

Increase in inventory (1,500)

Decrease in salaries payable (800)

Increase in accounts payable 4,000

Net cash used or provided 12,200

Net cash flow from operating activities =$62,200

Cash dividend is a financing activities, that is why it is not added or deducted in the operating activities.

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Cash equivalents:______.

Rina8888 [55]

Answer:

C. Are readily converted to a known cash amount.

Explanation:

Highly liquid short term assets are those which are ready available for conversion into cash. These are also called Liquid assets. Highly liquid investment are made for short term investment interest revenues.

6 0

3 years ago

Challenge Tennis & Recreation's operating activities for the year are listed below. Purchases $174 comma 800 Operating exp

makkiz [27]

Answer:

The answer is $169,400

Explanation:

Gross profit is a line item under income statement and it is the difference between net sales(revenue) and cost of sales. It is a measure of profitability ( net sales - cost of sales?

Cost of sales = beginning Inventory + purchases - ending Inventory

$27,600 + $174,800 - $37,800

$164,600.

Now, cost of sales is: ( net sales - cost of sales)

$334,000 - $163,800

=$169,400

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2 years ago

Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer

USPshnik [31]

Answer:

9.59%

Explanation:

The computation of the weighted-average interest rate used for interest capitalization purposes is shown below:

Particulars Amount Interest

9%, 5-year note payable $2,458,400 $221,256

10%, 4-year note payable $3,504,400 $350,440

Total $5,962,800 $571,696

So, Weighted-average interest rate is

= $571,696 ÷ $5,962,800

= 9.59%

8 0

3 years ago

refers to the process of developing a working replica of the system or some aspect of the system. a. Use case modeling b. Protot

Bumek [7]

b. Prototyping refers to the process of developing a working replica of the system or some aspect of the system.

Explanation:

A prototype is a sample used by the system analysts or users to evaluate the new design or build to determine its precision. A prototype is a trial product or software that is widely used in software programming and electronics.

The accuracy of the newly developed product can be checked with the help of prototype. Prototype is the replica of the real product. It helps in correcting design error before its production. Consumer gets easily attracted by seeing the prototype before the release of the original product.

6 0

3 years ago

SCI just paid a dividend of $2.16 per share, and its annual dividend is expected to grow at a constant rate of 4.50% per year. I

guajiro [1.7K]

Answer:

$33.44

Explanation:

The computation of the intrinsic value of the share is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.16 + $2.16 × 4.50%

= $2.16 + $0.0972

= $2.2572

The required rate of return is 11.25%

And, the growth rate is 4.50%

So, the intrinsic value is

= ($2.2572) ÷ (11.25% - 4.50)

= $33.44

8 0

3 years ago