Answer and Explanation:
The computation is shown below:
First we have to find the present value based on monthly payment i.e. to be determined by using the present value formula and the same is to be shown in the attachment
Given that,
Future value = $0
Rate of interest = 7% ÷ 12 months = 0.58333%
NPER = 5 years × 12 months = 60 months
PMT = $1,910
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $96,458.90
As it can be seen than the lumpsum amount i.e. $92,000 is less than the monthly payment present value so here the lumpsum option should be chosen.
<u>Answer: </u>Promissory note
<u>Explanation:</u>
Promissory note is considered to be an financial instrument that consist of the promise made by a person through a written document stating to pay a certain sum of money to another party as mentioned on the specific date or time.
Promissory note usually contains the details of indebtedness name , date, interest amount, principle amount, place of issuance and signatures of the parties involved. This instrument basically gives the information of how the party owes money to another party. this note is legally enforceable by law.
Answer:
(a) Net cash flow provided by operations for Simon Co. for the year ended December 31, 2020 is $1,580.
(b) The correct answer is Option A.
Explanation:
(a) Preparation of statement of cash flows extract
Simon Co.
Statement of Cash Flows (extract) for the Year Ended December 31, 2020
Net income $840
Add: Depreciation and amortization expense 640
Decrease in Accounts receivable 90
Increase in Income taxes payable 70
Less: Increase in Inventory 40
Decrease in Accounts payable 20
Net cash flows from operating activities $1,580
(b) The difference is mainly from timing and recognition. The cash flows from operations is a valuable tool used by investors to evaluate a company's financial strength. This section of the cash flows is regarded as the <em>cash version of net income </em>as non-cash items are added back to net income and it also considers changes in working capital, including current assets and current liabilities.
<span>This liquidated damages approach is ex
ante and is based on the principle that more complete contracts can be more
efficient. Liquidated damages are restricted to reparation for harm and are not
meant as penalties for certain actions. When it is problematic to determine the
actual damages incurred as a consequence of a breach, the courts may provide
relief in the form of specific performance.</span>
Answer: The answer is SITUATIONAL ANALYSIS
Explanation: A SITUATIONAL ANALYSIS is the gathering of methods to analyse the internal and external factors of a business inoder to get a clear picture of the business environment.
A situational analysis is also called a SWOT analysis that measures the strengths, weaknesses, opportunities and threats.
