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Tamiku [17]
3 years ago
11

The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is call

ed discounting. A. True B. False
Business
1 answer:
Klio2033 [76]3 years ago
8 0

Answer:

A. True

Explanation:

The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting.

Discounting is the opposite of Compounding because discounting measures what the value of future cash flow is worth in the present while compounding takes the present value into the future. Discounting generally points to a method of knowing the present value of cash flow. Discounting is an important tool due to how a business could know the present value of what the business spends and gains by comparing it to the future value of what is to be received.

The cash flow that is received or paid in the future is less than the present value of the cash flow and that depicts the time value of money.

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Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased f
inn [45]

If Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719.  During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

First step is to calculate the cash flow to creditor  

Cash flow to creditors   = $21,700 + $29,571  

Cash flow to creditors   = $51,271

 

Second step is to calculate the cash flow to Stockholders

Cash flow to Stockholders =$28,400 - $25,500  

Cash flow to Stockholders =$2,900

Now let determine the cash flow from assets using this formula

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Let plug in the formula  

Cash flow from assets = $51,271 + $2,900  

Cash flow from assets = $48,371

Inconclusion if Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719.  During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

Learn more here:

brainly.com/question/11009567

6 0
2 years ago
Because risk is associated with the potential for higher profits, business persons are motivated to choose organizational forms
Lubov Fominskaja [6]

Answer:

True

Explanation:

The reason why every business exists is to make a profit. Hopefully businesses will be able to make a profit by selling products or services that satisfy the needs of their customers. The problem with higher profits is that they are always associated with higher risks, and business owners and investors are risk averse.

Business owners and managers will continually search for ways to increase their profits while keeping the risks as low as possible. This includes choosing organizational layouts and forms that might help them increase their profits while reducing risks or at least keeping them under a certain level.

8 0
3 years ago
Understal Company has $750,000 to invest and two competing investment opportunities. Investment 1 would pay 9% per year ($67,500
ikadub [295]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

8 0
3 years ago
Which type of risk is most likely to be insurable? A. Pure risk B. Speculative risk C. Equity risk D. Investment risk
BARSIC [14]
<span>the type of risk that is most likely to be insurable is : A. pure risk Pure risk refer to the type of risk in which loss is the only possible outcome. Example of pure risk : Identitiy theft Identity theft is insurable because the only possible outcome of identity theft is a loss in assets, there is no way someone could get more wealth after identity theft</span>
8 0
3 years ago
Read 2 more answers
Consider the following information pertaining to Company C:
Sloan [31]

Answer:

C. $34,300.

Explanation:

Gross profit= Net sales - cost of sales

1. <u>calculating  net sales</u>

    = sales- sales returns and allowances

 =$48,000-6000

 =$42,000

2.<u> calculating cost of sales</u>

 =opening stock + purchases- closing stock

 =($900+$9100)-$2300

 =$7,700

3. Gross profit

                  =$42,000-$7,700= $34,300

              Gross profit =$ 34,300

4 0
3 years ago
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