Answer:
$440 millions
Explanation:
The computation of the net cash inflows (outflows) from operating activities is shown below:
Cash flow from Operating activities
Cash received from Customers $4,200
Interest on investments $360
Less: Cash paid
Interest on debt -$460
Income tax -$240
Purchase of inventory -$2,600
Operating expenses -$820
Net Cash flow from Operating activities $440 millions
Answer:
The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B.
Payback period A=2,1539 years.
Payback period B= 3,0042 years
Explanation:
The payback period refers to the amount of time it takes to recover the cost of an investment. The payback period is the length of time an investment reaches a breakeven point.
<u>Cash Flow A:</u>
$
I0= - 70.000
1= 28000 = -42000
2= 38000 = -4000
3= 26000 = 22000
Payback period= full years until recovery +
unrecovered cost beginning year/Cashflow during year
Payback period A= 2 + (4000/26000)= 2,1539 years.
<u>Cash Flow B:</u>
$
I0= -80000
1= 20000 = -60000
2= 23000 = -37000
3= 36000 = -1000
4= 240000 = 239000
Payback period B= 3 + 1000/240000= 3,0042 years
<u>The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B. </u>
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Answer:
1. Discount rate.
2. Increase.
Explanation:
A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).
Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;
1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.
3. Regulating banking activities: it has the power to supervise and regulate banks.
The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.
<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>
Answer & Explanation:
1- What would be the amount of each installment?
The principal to be paid in each instalment = $300,000/3 = $100,000
1st instalment = $300,000*5% + $100,000 = $115,000
2nd instalment = $200,000*5% + $100,000 = $110,000
3rd installment = $100,000*5% +$100,000 = $105,000
2- Prepare an amortization table for the instalment note.
Please see excel in attachment
3- Prepare the journal entry for the second installment payment.
Debit loan payables account: $100,000
Debit Interest expenses: $10,000
Credit cash: $110,000
Answer:
B
Explanation:
A. Positive confirmation should always be used for large balances
C. Trade receivables is the overlying term for both account receivables and note receivables. There is no distinguish here between large and small balances.
D. The positive form should be used for receivables that are unsatisfactory.
