Answer:
True.
Explanation:
‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.
The cash flow from operating activities is generally more than the net income after taxes.
The cash flow from operating activities includes only the cash transactions relating to the operations of the business. It ignores the non-cash transactions. On the other hand, net income is derived after deducting all the expenses (paid or unpaid) from the revenue earned, pertaining to a particular period.
Example: Depreciation expense is a non-cash transaction. It is treated as follows:
While calculating cash flow from operating activities, depreciation expense is ignored (added back to the net income) as it is a non-cash transaction.
On the other hand, depreciation expense pertaining to the accounting period is deducted from revenue to calculate net income after taxes.
Thus, the cash flow from operations is generally more than the net income after taxes.
The ending cash balance will be $11,000.
$28,000- $12,000
$16,000
$16,000-$10,000
$6,000
$6,000+$5,000
$11,000
An inventory refers to a detailed list of materials and goods in stock. These items are to be later sold or repaired. It is important to perform an inventory and to take photos of the equipment for taxing purposes, i<span>n case of possible damage or theft, and when deciding whether to purchase additional equipment.</span>
Answer:
Option "C"is the correct answer to the following statement.
Explanation:
The retrospective method effect requires the development of new accounting procedures. In other terms, the retrospective method would affect the reporting of past time financial statements.
In this situation, the company will use the equity method at the place of the Fair-value method for calculating and control over their investment, so the above option is correct.
Answer:
The stock current intrinsic value is: $39,46
Explanation:
We solve using the gordon model for dividend growth to valuate the price of the stock:
d0 = 2.50
d1 = 2.50 x 1.03 = 2.575
Value: 42,91666666666667
This value is three years therefore, we need to discount:
Maturity $42.9167
time 3.00
rate 0.09000
33.1395
We also have to calcualtethe present value of the first, second and third year dividends
discount rate 0.09
# Cashflow Discounted
1 2.5 2.29
2 2.5 2.1
3 2.5 1.93
PV 6.32
We ad this to the PV of the infinite future dividends growing at 3%
6.32 + 33.1395 = 39,4595
