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3 years ago

Portions of the financial statements for Peach Computer are provided below.

Business

1 answer:

mamaluj [8]3 years ago

4 0

Answer:

$128,100

Explanation:

PEACH Computer

Statement of cash flow using direct method for the year ended 31 December 2018.

Cash flows from operating activity

Net income. $91,000

Adjustment to reconcile net income to net cash from operations

Depreciation expense. $47,000

Changes in working capital

Decrease in accounts re. $4,200

Increase in inventory. ($18,500)

Decrease in prepaid rent $1,700

Increase in accounts Payable $6,500

Decrease in Income tax Payable ($3,800)

Net cash flow from operating activities

$128,100

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Answer: Selling exports abroad at a lower price than the domestic price.

Explanation:

Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.

This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.

An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.

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3 years ago

In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was

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Answer:

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R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>

Real Income = 32000 × 120/125

=$30,720

Change Real income

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= $ 720

Change in real income (%) = (720/30,000) × 100

= 2%

Real income has increased by $720 in terms of dollar and 2% in percentage

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3 years ago

Familiar routes to and from commonly visited areas create an individual's:

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3 years ago

Which option is the best way to organize a document into topics?

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3 years ago

Read 2 more answers

Another company plans to issue 20-year bonds with a face value of $1,000 and an annual coupon rate of 10%. The market price of s

Lorico [155]

The after-tax cost of debt is 6.28%. Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.

<h3>What is After-tax cost?</h3>

After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.

WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.

WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).

Therefore,

The after-tax cost of debt is 6.28%.

FV = -$1,000

PMT = -$100

N = 20 years

PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.

Compute I/Y = 9.511%

After-tax cost of debt = 9.511%×(1-.34) = 6.28%

To learn more about After-tax cost, refer to:

brainly.com/question/25790997

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