The utmost effective
audit procedure for determining the collectability of an account receivable is
the, review of the subsequent cash collections. Reviewing the subsequent cash
collections speeds up the audit procedure to determine the collectability of an
account receivable.
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Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- r is the required rate of return
- g is the constant growth rate in dividends
- n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00
Based on the calculation below, incremental after-tax operating cash flow is $675,000
<h3>How to calculate incremental after-tax operating cash flow</h3>
This can be calculated as follows:
Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000
Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000
Therefore, we have:
Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000
Learn more about cash flows here: brainly.com/question/18301011.
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Answer:
REAL GDP
Explanation:
GDP typically used as a variable to measure a nation's economic strength within a certain time period. But often time, the value of GDP is a little bit jaded. If the inflation is high, an increase in GDP doesn't really mean that the country become more productive.
This is why there are many experts prefers to use REAL GDP as a more accurate unit to measure the economic strength.
