Answer:
1. True.
2. True.
3. True.
4. True.
Explanation:
1. True: A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.
2. True: Land held for speculation is reported in the long-term investment section of the balance sheet because they are fixed assets.
3. True: Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.
4. True: Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.
Answer:
The annual payment at the end of each year: $4,572.23
Explanation:
The formular for calculating Present value of Annuity is applied in this case to help us find the equal annual payment.
Applying information in the question, we have the annuity that have:
n= 10 as there are 10 equal annual payments paid at the end of each year during 10 years;
i = 8.5% per annum compounded annually, as stated in the question;
PV = Borrowed amount = $30,000;
C = the equal annual payment.
The formular for PV of Annuity: PV = (C/i) x [ 1- (1+i)^(-n)] <=> C = (PV x i) / [ 1- (1+i)^(-n)]
Thus, C = (30,000 x 8.5%) / [ 1- 1.085^(-10) ] = $4,572.23
Answer:
Explanation: Subtract from net income to arrive at net cash flows from operating activities.
Answer:
The Net Cash Flow is $9,300,000.
Explanation:
A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:
Ruston Company
Statement of Cash Flows
For the Year 2020
<u>Details $'000 </u>
Net Income 9,100
Adjustments from Operating Activities <u> 1,100 </u>
Net Cash Flow from Operating Activities 10,200
Net Cash Flow from Investing Activities (4,300)
Net Cash Flow from Financing Activities of <u> 3,400 </u>
Net Cash Flow <u> 9,300 </u>
Since the amount is in thousands, that implies that the Net Cash Flow is $9,300,000.
