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Hitman42 [59]
3 years ago
15

Hong kong clothiers reported revenue of $5,000,000 for its year ended december 31, 2016. accounts receivable at december 31, 201

5 and 2016, were $320,000 and $355,000, respectively. using the direct method for reporting cash flows from operating activities, hong kong clothiers would report cash collected from customers of:_________ a) $5,045,000. b) $5,000,000. c) $4,965,000. d) $5,035,000.
Business
1 answer:
Eddi Din [679]3 years ago
3 0

Answer:

C) $4,965,000.

Explanation:

cash collected form customers = accounts receivable beginning balance + total revenue - accounts receivable beginning balance = $320,000 + $5,000,000 - $355,000 = $4,965,000

The direct method only uses actual cash outflows and inflows to calculate the cash flow from operating activities.

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Answer:

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Explanation:

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Outstanding shares/bonds  2,000,000              2,000

Market price per unit                $2                     $1,200

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Cost of bonds (coupon rate) = 10%

Tax rate = 34%

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Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

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= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0
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2 years ago
On January 1, 2020, Beyonce Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the bo
Drupady [299]

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8 0
2 years ago
What is the correct statement about regressive taxation?
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Answer:

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2 years ago
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