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kherson [118]
3 years ago
12

Munster Company reports the following net cash in its statement of cash flows: net inflow from operating activities: $200; net o

utflow from investing activities: $300; net outflow from financing activities: $50. The ending balance in cash is $20; the beginning balance must have been
Business
1 answer:
Murrr4er [49]3 years ago
3 0

Answer:

$170

Explanation:

Given the following information about Munster company:

Net inflow from operating ACTIVITIES = $200

Net outflow from investing ACTIVITIES =  $300

Net outflow from financing ACTIVITIES = $50

Ending balance in cash = $20

BEGINNING BALANCE :

Outflows + ending balance - inflow

(Outflow from investing ACTIVITIES + outflow from financing ACTIVITIES + ending balance in cash) - inflow from operating activities

($300 + $50 + $20) - $200

$370 - $200

= $170

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When recording the payment of interest using the effective-interest method, the entry will include a ______ to Discount on bonds
goldfiish [28.3K]

Answer:Debit , market, stated.

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6 0
3 years ago
For a levered firm, flotation costs should
KengaRu [80]

Answer:

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Explanation:

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Flotation is actually the costs  incurred by a company in issuing its securities to public.  it is also called issuance costs.

Examples of Flotation costs include charges paid to the investment bankers, lawyers, accountants, registration fees of the securities regulator and the exchange on which the issue is to be listed.

Flotation cost would vary based on several factors, such as company’s size, issue size, issue type (debt vs equity),

In summary, Flotation costs are the cost a company incurs to issue new stock making new equity cost more than existing ones.

Business analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.

It is based on this premise that i chose option B, which states that flotation costs be spread over the life of a project thereby reducing the cash flows for each year of the project at levered firms.

5 0
3 years ago
How does selling shares on the stock exchange benefit companies?
Jlenok [28]

Answer:

C

Explanation:

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6 0
3 years ago
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Answer:

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The least likely to be successful is indeed a direct marketing message that is sent to the largest possible public. After all, while simply irritating several other beneficiaries, the business can gain few more consumers.

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UkoKoshka [18]

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6 0
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