Answer:
PV of business opportunity = $1,381.55
Explanation:
<em>The present value of the business opportunity is the difference between the present value of the streams cash inflow and the initial investment cost </em>
PV of streams of cash inflows:
PV of cash flow =A × (1- (1+r)^(-n) )/r
A- 3,600, r- 3%, n- 4
= 3,600 × (1 -(1.03^(-4) )/0.03
=$13,381.55
PV of the business opportunity
= $13,381.55 - 12,000
= $1,381.55
<span>Julie’s nominal wage increase is 10% whereas her real wage increase in only 7% because 3% of her wage increase is negated by the increase in the cost of goods and services reflected by the 3% increase in the CPI.</span>
Answer:
$7,700
Explanation:
Equity of a company is Total Assets minus Total liabilities. Equity is the business worth for shareholders. For Crusoe Waterworks Company the equity will be the initial capital investment by Robin Crusoe plus any revenue received from the business operations.
The equity will be calculated by,
Equity = Capital Investment + Revenue - Expense
Equity = $5,000 + $3,400 - $700
Answer:
The correct answer to this question is D) where it adds all the non cash entries related to a firm's operating activities.
Explanation:
A cash flow statement is a financial statement which shows how cash and cash equivalent are affected by change in the balance sheet accounts and income statements accounts, and cash flow shows this affect on cash and equivalent by breaking down the cash flow statement analysis in to operating , investing and financing activities.
The way in which operating activity now helps in adjusting the net income from balance sheet is by adding all the non cash entries, which are related to company's operating activities.
