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3 years ago

Chapter 2 Discussion Question

Business

1 answer:

mel-nik [20]3 years ago

4 0

the four financial statements are: (1) balance sheets; (2)income statements (3) cash flow statements (4) statement of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. income statements show how much money a company made and spent over a period of time.

Net income links to both the balance sheet and cash flow statement. In terms of the balance sheet, net income flows into stockholder's equity via retained earnings. ... In terms of the cash flow statement, net income is the first line as it is used to calculate cash flows from operations.

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Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its ex

maw [93]

Answer:

NPV = 37,599 Negative

Explanation:

We can calculate the NPV of the new sewing machine by deducting the Present value of future cash inflows by Investment

Initial investment = Machine cost + Training cost - Salvage value

Initial investment = 2,450,000 + 85,000 - 250,000

Initial investment = 2,285,000

Year DF(9%) Present Value

1 Cash inflow 390,000 x 0.917 $357,798

2 Cash inflow 400,000 x 0.842 $336,672

3 Cash inflow 411,000 x 0.772 $317,367

4 Cash inflow 426,000 x 0.708 $301,789

5 Cash inflow 334,100 x 0.650 $217,077 (434,100 - 100,000)

6 Cash inflow 435,000 x 0.596 $259,376

7 Cash inflow 436,000 x 0.547 $238,507

7 Salvage value 400,000 x 0.547 $218,814

Present Value of cash inflow $2,247,401

Initial investment $2,285,000

NPV ($2,247,401 - $2,285,000) (37,599)

Conclusion: Hillsong should not purchase the new machine as the NPV of the machine is negative

4 0

3 years ago

What is the amount of Justin and Jenna's earned income tax credit reported in the payments section on page 2 of their tax return

MissTica

<span>The amount of Justin and Jenna's Earned Income Tax Credit which was reported in the payment section on page two of their return was $836. The Earned Income Credit, or EIC, is a tax credit that is refunded to low to moderate income earners who are working weather individual or couples. Generally, this is given to those who have children. The amount of the credit depends on the income and number of children.</span>

6 0

4 years ago

The key elements of a business plan can include _____.

Ulleksa [173]

Answer:

Executive summary

Explanation:

It provides information about the business's purpose.

8 0

3 years ago

In reviewing research on power, you discover that there are three other common sources of power in organizations. Which of the f

yarga [219]

Answer:

A. Personal effort

D. Network of relationships

Explanation:

There are many forms of power in organizations, based on the provided answers the two that are examples would be Personal Effort and Network of relationships. One's personal effort helps them climb in an organization and gain power along the way through their hard work. While on the other hand, having a network of relationships grants power by opening doors to opportunities that may not otherwise be available, simply because of someone else in a specific situation.

3 0

3 years ago

Sheridan Company has received a shipment of suits that cost $140 each. If the company uses cost-plus pricing and applies a marku

timama [110]

Answer:

Selling price= $224

Explanation:

Giving the following information:

Unitary purchase cost= $140

Mark-up percentage= 60%

<u>To calculate the selling price per unit, we need to use the following formula:</u>

Selling price= unitary cost*(1 + mark-up)

Selling price= 140*1.6

Selling price= $224

5 0

3 years ago