Answer:
$128,100
Explanation:
PEACH Computer
Statement of cash flow using direct method for the year ended 31 December 2018.
Cash flows from operating activity
Net income. $91,000
Adjustment to reconcile net income to net cash from operations
Depreciation expense. $47,000
Changes in working capital
Decrease in accounts re. $4,200
Increase in inventory. ($18,500)
Decrease in prepaid rent $1,700
Increase in accounts Payable $6,500
Decrease in Income tax Payable ($3,800)
Net cash flow from operating activities
$128,100
Answer:
MIRR = 15.65%
so correct option is b. 15.65%
Explanation:
solution
We will apply here formula for amount that is
A = P × 
..................1
here A is future value and P is present value and r is rate and n is time period
so here future value of inflows will be
future value of inflows = [ 300 × (1.1)³ ] + [ 320 × (1.1)² ] + [ 340 × (1.1) ] + 360
future value of inflows = $1520.5
and MIRR will be here
MIRR = 
MIRR = 
MIRR = 15.65%
so correct option is b. 15.65%
Answer:
7%
Explanation:
nominal interest rate = real interest rate + expected inflation rate
nominal interest rate = 5% + 2% = 7%
Usually the nominal interest rate has four major components:
- real interest rate: the net interest rate received by a lender or an investor
- inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
- liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
- credit risk: possibility of the borrower defaulting the loan
Answer:
A) total cost = (200 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $12,000
average total cost per unit = $12,000 / 2,000 units = $6 per unit
B) new total cost = (100 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $2,000 + $4,000 + $4,000 = $10,000
average total cost per unit = $10,000 / 3,000 units = $3.33 per unit
C) When process innovation occurs, total productivity and efficiency increase, decreasing the average cost per unit. In this case the total cos decrease, but even if total costs do not decrease, higher efficiency and productivity can be achieved by production more units at the same total costs. Process innovations, usually related to new technologies, are responsible for the greatest increases in productivity and efficiency which result in higher economic output and growth.
Journal entries
Dr Allowance for uncollectible account $41,000
Cr Account Receivable $41,000
Dr Account receivable $3,600
Cr Allowance for uncollectible account $3,600
Dr Cash $3,600
Cr Account receivable $3,600
