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djverab [1.8K]
3 years ago
13

What is the change in cash for a firm with the following: $10,000 cash flow from operations, $1,600 cash used for new investment

, a reduction in the level of debt of $2,000, $1,000 in cash dividends, and $200 in depreciation expense
Business
1 answer:
Solnce55 [7]3 years ago
6 0

Answer:

The change in cash balance is $5,400.

Explanation:

Statement of Cash Flows summarizes use of cash in three main activities namely operating activities, investing activities, and financing activities.

The change in the cash balance can be calculated based on the net of cash inflows and outflows.

Depreciation expense is a non-cash item, therefore, it should not be included in the calculation.

Activity                         Cash Inflow/ (Outflow)

Cash from Operations $10,000

New investment         ($1,600)

Repayment of debt ($2,000)

Cash dividends         ($1,000)

Net Cash Flow          $5,400

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Answer:

Total yield or rate of return is 0.36 or 36%

Explanation:

To calculate rate of return which is also the total yield on the stock, we will use the following formula,

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Where,

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Total dividends for the year = 1.5 * 4 = $6

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Total Yield = (6 + 30) / 100

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Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fi
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Answer:

Cost to make $337,600

Cost to make $344,400

The company should make the product

Explanation:

Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units

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Variable cost per unit $2.90 - $243,600(84000*$2.90)

Fixed manufacturing costs - $94,000 $94,000

Cost to make $337,600

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Cost to make $344,400

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