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4 years ago

Smiley Corp.'s transactions for the year ended December 31, 2018 included the following:

Business

2 answers:

Olenka [21]4 years ago

8 0

Answer:

Explanation:

The following information was taken from the 2018 financial statements of Dunlop Corporation:

Bonds payable, January 1, 2018

$ 800,000

Bonds payable, December 31, 2018

4,800,000

During 2018

• A $720,000 payment was made to retire bonds payable with a face amount of $800,000.

• Bonds payable with a face amount of $320,000 were issued in exchange for equipment.

In its statement of cash flows for the year ended December 31, 2018, what amount should Dunlop report as proceeds from issuance of bonds payable?

mixas84 [53]4 years ago

7 0

Answer:

b. -$350,000

Explanation:

The calculation of net cash used in financing activities is shown below:-

Net cash used in cash flow from financing activities = Borrow from bank - Dividend paid + Issue common Stock - Loan repaid

= $1,250,000 - $1,200,000 + $500,000 - $900,000

= -$350,000

Therefore for calculating the net cash used in financing activities we simply applied the above formula.

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Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $ 50 comma 000 for the cu

Brilliant_brown [7]

Answer:

Here we have two cases and in one of these we are paying interest on a normal loan which is tax deductible and in the other case we are paying interest on a preference share which is not Tax allowable expense. So in the nutshell, the only difference will be tax amount computed in both cases for calculating Earnings available for ordinary shareholders.

Case 1. Interest paid on normal loan

Earning After tax = (Earnings before Interest & Tax - Interest) - Tax

Earning After tax = ($50,000 - 12000) - 21%

Earning After tax = $38000 - 21%*$38000

Earning After tax = $30020

The amount available for the ordinary shareholders is $300,20

Case 2. Interest on preference shares

As the interest paid on preference share is not tax deductible so the tax will be calculated as 21% of the amount $50,000. So

Earning After tax = Earnings before Interest & Tax - Interest - Tax

Earning After tax = $50,000 - 12000 - (21%*$50,000)

Earnings After Tax = $38,000 - $10,500 = $27,500

So the amount available for the ordinary shareholders is $27,500.

8 0

3 years ago

Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase e

masya89 [10]

Solution :

Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :

Let

A = Year (n)

B = Initial outlay

C = Five-year MACRS depreciation percentage

D = Depreciation with MACRS Method (D)

E = Savings in earnings before depreciation

F = Taxable Income (earnings before depreciation - depreciation

G = Income taxes (Taxable Income *40%)

H = $\text{After-Tax Net}$ cash flow $\text{(Taxable income - taxes + depreciation)}$

I = PV of $\text{Net cash flow}$ at the rate $12\%$ = $NCF$ / $(1+WACC\%)^n$

A B C D E F G H I

0 82,500 -82,500 -82,500

1 20% 16500 27000 10500 4200 22800 20357.14

2 32% 26400 27000 600 240 26760 21332.91

3 19% 15675 27000 11325 4530 22470 15993.70

4 12% 9900 27000 17100 6840 20160 12812.04

5 11% 9075 27000 17925 7170 19830 11252.07

6 6% 4950 27000 22050 8820 18180 9210.55

7 0% 0 27000 27000 10800 16200 7328.06

8 0% 0 27000 27000 10800 16200 6542.91

NPV $22,329.39

As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.

4 0

3 years ago

Why is personal finance dependent upon your behavior?

AfilCa [17]

Personal finance depends on your behavior because you are the manager of your financial resources, so it is necessary to carry out personal planning of your finances.

Personal financial behavior can be measured by six dimensions, which are:

Emergency funds
Indebtedness level
Savings rates
Asset diversification
Retirement Preparation
Wealth distribution

Personal finances are directly impacted by our behaviors and decisions. Some of these behaviors are subconscious and difficult to identify, but they should be analyzed in case they negatively influence your finances.

Therefore, financial planning is essential to use your financial resources consciously and in accordance with your goals.

Learn more about personal finance here:

brainly.com/question/2961383

8 0

3 years ago

What is the amount of asset for blue top taxi company? A.900 B.1100 C.2000 D. 2900

harkovskaia [24]

B it is b because i would like it to be B please

5 0

3 years ago

Mike purchases a new heavy-duty truck (5 year class recovery property)I for his delivery service on March 30.2019. No other asse

zzz [600]

Answer:

i dont know sorry

Explanation:

4 0

3 years ago