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kirza4 [7]
3 years ago
7

During 20x8, a firm discontinued a component qualifying for separate disclosure within the income statement. The disposal was co

mpleted before the end of 20x8 and resulted in a $300 disposal gain. The component earned $400 in 20x7 but lost $100 (negative income) in 20x8. The 20x7 income statement reported income from continuing operations (IFCO) of $6,000. The 20x8 income statement reported $7,000 of net income. Determine the following two amounts:
IFCO for 20x7 as it is reported comparatively in the 20x8 statements
IFCO for 20x8
Business
1 answer:
MAVERICK [17]3 years ago
4 0

Answer:

  1. IFCO for 20x7 as it is reported comparatively in the 20x8 statements  = $5,600
  2. IFCO for 20x8 = $6,800

Explanation:

1) IFCO for 20x7 as it is reported comparatively in the 20x8 statements, should not include the $400 operating income from the component = $6,000 - $400, or $5,600.

2) IFCO for 20x8 should not include the gains resulting from the disposal of the component nor the losses generated by it = $7,000 - $300 + $100 = $6,800

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Answer:

d. 2.94%

Explanation:

First, Calculate the Yield to maturity of the bond using the following formula

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P = [ C x ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Where

F = Face value = $1,000

P = Price = $1,495.56

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n = numbers of periods = Numbers of years to maturity = 10 years

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Placing values in the formula

$1,495.56 = [ $100 x ( 1 - ( 1 + r )^-10 ) / r ] + [ $1,000 / ( 1 + r )^10 ]

r = 3.916%

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After-tax cost of debt = 3.916% x ( 1 - 25% )

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2 years ago
Pharoah Corporation had the following activities in 2020. 1. Payment of accounts payable $843,000 4. Collection of note receivab
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The amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows is $344,000.

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Pharoah Corporation

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Net cash flows from financing activities    $344,000

Note that the payment of accounts payable and collection of notes receivable only affect the operating activities section of the cash flows.

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