Cash flows<em> from investing</em> activities contain the following things and include:
- Cash outflows from acquiring land
According to the given question, we are asked to state what the cash flow from investing activities contains based on the list of available choices.
As a result of this, we can see that cash flows which are gotten from investing activities includes the cash that has either been made or spent on a fixed asset like land or properties that are expected to generate profit in the future.
Therefore, the correct answer is Cash outflows from acquiring land
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Answer:
2,000
Explanation:
On average, a person who have a full time job works will work approximately 2,000 hours each year reason been that we have 5 working days in a week and standard working hours in a weeks is 40 hours (5days×8hours daily) which means 8 hours daily , secondly we have 52 weeks in a year, now assuming that person takes 2 weeks off each year for his or her vacation we would have 50 weeks left (52 weeks-2 weeks vacation) which means that the person would be working 50 weeks of the year multiply by 40 hours a week which will give us a total of 2,000 hours each year.
40 work hours weekly× 50 weeks yearly
=2,000 hours of work each year
Therefore on average, a person with a full time job works approximately 2,000 hours each year.
Answer:
Estimating un-collectible accounts expense improves the matching of revenues and expenses.
Explanation:
When uncollectibles are recorded through allowance method then, bad debts expense is provided, which reduces net income. But at the time of writing off only the allowance and accounts receivables account is affected and not the net income.
When direct method is used then also the net income gets reduced, as bad debt expense and accounts receivables is affected.
And as provided in first para, when estimating and creating the allowance for bad debts, it affects net income, and it also represents the true and fair view of expenses and income.
Thus, statement c is correct.
Answer:
always,
Explanation:
if a house catches fire and u have insurance it will be covered
Answer:
cost of common equity = 14.46%
WACC = 11.29%
accept = Project A
Explanation:
Cost of common equity is the return that is required by Holders of Common Stock.
The available details can be used to calculate the cost of common equity using the Dividend Growth Model as follows :
Cost of common equity = (Next year`s Dividend / Current Market Price of a Stock) + Expected Growth
= ($2.20/$26)+6%
= 14.46%
WACC is the minimum return that a project must offer before it can be accepted.It shows the risk of the company.
Cost of Debt = Market Interest Rate × (1 - tax rate)
= 9.00% × (1-0.40)
= 5.40%
Capital Source Weight Cost Total
Debt 35% 5.40% 1.89%
Common Equity 65% 14.46% 9.40%
Total 100% 19.86% 11.29%
Therefore WACC is 11.29%
When evaluating projects, Compare the Project`s Internal Rate of Return (IRR) to the WACC.
<u>Project A</u>
IRR 12% > WACC 11.29%
Therefore Accept
<u>Project B/S</u>
IRR 11% < WACC 11.29%
Therefore Do Not Accept
