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olga_2 [115]
3 years ago
14

Sunset Acres reported net income of $60 million. Included in that number were trademark amortization expense of $2 million and a

gain on the sale of land of $1 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2 million, $5 million, and $4 million, respectively. What were Sunset’s cash flows from operating activities? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Business
1 answer:
Bess [88]3 years ago
5 0

Answer:

$62 million

Explanation:

Adjustments for non-cash effects:

= Amortization expense - Gain on the sale of land

= $2 million - $1 million

= $1 million

Changes in operating assets and liabilities:

= Decrease in accounts receivable - Decrease in accounts payable + Decrease in inventory

= $2 million - $5 million + $4 million

= $1 million

Net cash flows from operating activities:

= Net income + Adjustments for non-cash effects + Changes in operating assets and liabilities

= $60 million + $1 million + $1 million

= $62 million

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Based on the scenario, the most likely impact on these trends on the profits of Green Restaurants is that there will be a lower cost present by which this will likely lead their restaurant to gain and increase their profits, having a higher profits.

7 0
3 years ago
Imagine that your boss is someone whom you and your coworkers have very little respect for, but you and others continue to do wh
Maksim231197 [3]

Answer:

The correct answer is letter "B" and "E": Behave in an authoritarian way.; Hold back talented employees.

Explanation:

Disrespected bosses tend to use their authority to let others know their ideas since they transmit no inspiration because of who they are. It is the only form they can get subordinates' attention. Besides, when subordinates start to show leadership skills or special talents, the disrespected boss would minimize that individual in an attempt to keep his or her power and not to be replaced by that subordinat

6 0
3 years ago
A bank employee so customers personal identification information to a third party. What law did the employee break?
slava [35]
B your right to financial privacy
4 0
3 years ago
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,200,000; preferred 8% sto
Sonbull [250]

Answer:

Number of times bond interest charges were earned = 5.44

Explanation:

Given data,

Bond Interest Rate = 6%

Bond Amount = $1200000

Net Income before Income Tax = $320000

Bond Interest charges Earned :

= Bond Value × Interest Rate

= $1,200,000 × 6%

= $72,000

Net Income before Interest :

= Net Income Income Before Interest + Interest

= $320,000 + $72,000

= $392,000

Number of times bond interest charges were earned :

= Net Income before Interest and taxes ÷ Interest charges

= (392,000 ÷ 72,000 )

= 5.4444

Number of times bond interest charges were earned = 5.44

8 0
3 years ago
Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 12.2 percent
almond37 [142]

Answer:

The company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.

Explanation:

There is a need to first calculate the yield to maturity (YTM) using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) * Number of semiannuals in a year =  RATE(nper,pmt,-pv,fv)*2 .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity * number of semiannuals in a year = 17 * 2 = 14

pmt = semiannual coupon payment = face value * (annual coupon rate / number of semiannuals in a year) = 1000 * (12.2% / 2) = 61

pv = present value = current bond price = 1434.96

fv = face value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(14,61,-1434.96,1000)*2

Inputting =RATE(14,61,-1434.96,1000)*2 into excel (Note: as done in the attached excel file), the YTM is obtained as 4.81%.

Therefore, the company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.

Download xlsx
4 0
2 years ago
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