Answer:
$150,300
Explanation:
The computation of the correct initial cash flow is shown below:
= Capital expenditure + net after taxes + initial investment in inventory
= $33,000 + $112,000 + $5,300
= $150,300
The net after taxes is also term as opportunity cost
And, the initial investment in inventory is also term as change in working capital
All other information which is given is not relevant. Hence, ignored it
Answer:
b. $1,260,000
Explanation:
The computation of the total manufacturing cost is shown below:
= Cost of goods manufactured + ending work in process - beginning work in progress
= $1,280,000 + $60,000 - $80,000
= $1,260,000
We simply add the ending work in progress and deduct the beginning work in progress to the cost of goods manufactured so that the accurate amount can come
Answer:
2. If two investments have the same expected return, the investment with the greater risk is preferred.
Explanation:
The statement above is clearly incorrect. If two investment are expected to return the same amount of money to the investor, then, the investor will seek the investment that has a lower risk, because risk, as the meaning of the word implies, is a variable that may impede the realization of the return.
No rational economic agent or investor would choose the riskier investment in this situation.
An earned value report will likely show all of these measures.
Answer:
Total assets next year are $186670
Explanation:
The basic accounting equation states that Total assets are always equal to the sum of Total liabilities and total equity. Thus, the total assets of the company this year are,
Total assets - this year = 68188 + (10959 + 86023)
Total assets - this year = $165170
The net income generated by a company is used for two purposes. The company can either pay out dividends from it or retain it in the business or do both. The retained net income will increase the amount of retained earnings and thus the total equity.
Retained earnings for next year = 36500 - 15000 = $21500
Thus, total assets for next year are,
Total assets next year = Total assets this year + change in retained earnings
Total assets next year = 165170 + 21500 = $186670
