Answer:
4. understated by $64000
Explanation:
Purchase cost increases the cost of goods sold and reduces profit before tax (PBT) income.
Similarly, closing inventory balance increases profits before tax income.
In the given case, purchase cost is understated by $40,000 less $4000 i.e $36000. This would overstate the profits by $ 36000. Whereas, omission of closing inventory from records of $100,000 would understate profits by $100,000.
Thus, the net effect of the two mentioned omissions and errors would lead to understated profits by $100,000 less $36000 i.e by $64,000.
Answer:
Year Cashflow [email protected]% PV
$ $
1 150 0.8929 134
2 150 0.7972 120
3 150 0.7118 107
4 250 0.6355 159
5 300 0.5674 170 6 600 0.5066 <u>304 </u>
<u> 994</u>
Explanation:
In this case, we will discount the cashflow for each year at 12% per annum. The discount factor can be obtained by using the formula (1 + r)-n. Then, we will multiply the cashflows by the discount factors in order to obtain the present values. All the present values will be added up.
Answer:
The dollar value that the stock must reach before investors would consider converting to common stock is $33.
Explanation:
stock price for conversion = $1000/30.303
= $33
Therefore, The dollar value that the stock must reach before investors would consider converting to common stock is $33.
Answer:
Net operating cash-flow= $6,392
Explanation:
Giving the following information:
Sales of $19,650.
Costs of $9,380
Depreciation expense of $2,050.
Interest expense of $1,540.
The tax rate is 35 percent
Cash- flow:
Sales 19650
Cost= 9380 (-)
Interest= 1540 (-)
Depreciation =2050 (-)
EBT= 6680
Tax= (6680*0.35)=2338 (-)
EAT= 4342
Depreciation= 2050 (+)
Net operating cash-flow= 6392
Answer:
Generate traffic.
Explanation:
Direct marketing is a type of marketing strategy that involves communicating directly with potential customers. In this type of advertising strategy there is no middleman as business is transacted directly from the producers to the customers.
Direct marketing helps an organization to increase its sales, it also helps to build a strong relationship with customers. Direct marketing mediums include: newspapers, postcards, catalogs, phone calls.
