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3 years ago

Using Statement of Cash Flows Information to Assess Company Life-Cycle Stage

Business

1 answer:

yKpoI14uk [10]3 years ago

5 0

Answer:

Explanation:

Operating Investing Financing Cycle

3751 (2404) 1381 Growth

1102 2054 (759) Maturity

20 (480) 926 Growth

(2580) (4200) 7508 Introduction

(409) 5581 (2356) Declining

2281 (3451) 1957 Growth

6385 3272 (1958) Maturity

(365) (1678) (3478) Declining

In the introduction phase , cash flow from the operating and investing activities are negative as the company generate cash for investment through financing activities for operation

In the growth phase , the activities begin to pay off gradually while investing is still on simultaneously as operating activities generate a positive cash flow , investing negative and finance positive

In the maturity phase , company start to pay offset debt and buy back the stock as the business appears stable. Operating and financing activities generate a positive cash flow and financing negative.

In declining stage ,sales begin to fall and operating activities nosedive , investing may be positive as assets are being sold off and financing activities negative.

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2 years ago

A fee is paid a. for each overdraft. c. monthly to have overdraft. b. for the first overdraft. d. annually to have overdraft.

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3 years ago

Perdue Company purchased equipment on April 1, 2014, for $270,000. The equipment was expected to have a useful life of three yea

otez555 [7]

Answer:

Straight line:

2014 $ 65,250

2015 $ 87,000

2016 $ 87,000

2017 $ 21,750

units-of-output method:

2014 $ 108,750

2015 $ 79,750

2016 $ 58,000

2017 $ 14,500

dobule declining method

2014 135,000

2015 45,000

2016 15,000

2017 9,000

Explanation:

Straight line:

(cost - salvage value) / useful life

(270,000 - 9,000)/3 = 87,000 per complete year

First year: from April 1st to December 31th

87,000 x 9/12 = 65,250

Second and third year are complete year thus, 87,000

fourth year: from Jan 1st to March 31th:

87,000 x 3/12 = 21,750

units-of-output method:

(cost - salvage value) / unit of output

261,000 / 18,000 = 14.5 per hour

We multiply each year hours by this rate

7,500 x 14.5 = 108,750

5,500x 14.5 = 79,750

4,000x 14.5 = 58,000

1,000 x 14.5 = 14,500

double declining

we multiply by twice the rate of of straight line:

1/3 x 2 = 2/3 we depreciate this amount of the carrying vbalue per year

Last year we adjust to obtain the residual value

Year Beginning Rate Dep expense Carrying value

2014 270,000 0.50 135,000 135,000

2015 135,000 0.67 90,000 45,000

2016 45,000 0.67 30,000 15,000

2017 15,000 6,000 9,000

5 0

3 years ago