Answer:
The answer is: B) Information is analyzed for taking effective decisions.
Explanation:
Businesses use information for every decision it makes or expects to make. Without good information, businesses are bound to make serious mistakes in their decision making processes and their everyday performance.
Imagine that today the government decides to ban certain food ingredients which we commonly use in our recipes for producing cakes. If we don't get the information on time, we might continue to use the banned ingredients and may face possible sanctions for it. But if we knew about the ban we would have replaced those ingredients.
Answer:
$316,800
Explanation:
Cashflow from Operating activities = Cash sales - Paid wages - Bought Inventory for cash
Cashflow from Operating activities = $704,000 - $105,600 - $281,600
Cashflow from Operating activities = $316,800
So, the net cash provided by operating activities is $316,800
Answer:
Good Guy Foods
The amount that the firm needs to contribute to the fund, assuming that only the interest income is to be distributed is:
d. $1,724,138
Explanation:
a) Data and Calculations:
Distributable Trust Fund = $125,000
Rate of interest or return = 7.25%
The distributable trust fund is a product of total trust fund multiplied by the rate of return.
The total trust fund = $125,000/7.25%
= $125,000/0.0725
= $1,724,138
Check:
7.25% of $1,724,138 = $125,000
b) Good Guy Foods needs to contribute $1,724,138 in funds that will earn 7.25% annually and equal the scholarship amount of $125,000 annually.
Answer:
$115 million
Explanation:
Calculation for the present value of the business.
Using this formula
Present value=Free cash flow+Horizon value
Where,
Free cash flow =$15 million
Horizon value=$100 million
Let plug in the formula
Present value=$15 million +$100 million
Present value=$115 million
Therefore the Present value of the business will be $115 million
Answer:
$62.5
Explanation:
The value of the stock = dividend to be paid next year / required rate of return - growth rate
required rate of return = risk free rate + (risk premium x beta)
2% + (0.8 x 5%) = 6%
1.25 /6% - 4% = 1.25 / 0.06 - 0.04 = $62.5