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MArishka [77]
2 years ago
11

Rowdy's Restaurants cash flow ($ in millions)

Business
2 answers:
wolverine [178]2 years ago
6 0

Answer:

$460

Explanation:

Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.

Net Cash flow is the net of receipts and Payment.

Following are the operating cash flows.

Cash received from:

Customers                       $3,600

Cash inflow                                      $3,600

Cash paid for:

Income tax                       $200

Purchase of inventory    $2,200

Operating expenses      <u>$740   </u>

Cash outflow                                  <u>($3,140)</u>

Net Cash Flow                                <u>$460  </u>

All of the following cash flows relates to the Investing and Financing cash flows.

Cash Received

Interest on investments 320

Sale of land 220

Sale of Rowdy's capital stock 840

Issuance of debt securities 3,200

Payments

Interest on debt $ 420

Debt principal reduction 2,700

Purchase of equipment 6,400

Dividends on capital stock 560

Rudiy272 years ago
3 0

Answer:

Rowdy's would report net cash inflows (outflows) from operating activities in the amount of $460.

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

Hence, net cash inflows (outflows) from operating activities

= $3600 - $200 - $2200 - $740

= $460

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3 years ago
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 44,00
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The XYZ Company's basic earnings per share are $0.71, while the diluted earnings per share are $0.72.

Data and Calculations:

Outstanding Common stock shares on Dec. 31, 2020 = 200,000 shares

July 1, 2021, Issuance of 44,000 shares

Total outstanding common stock

January 1, 2021, Issuance of 16,000 convertible preferred stock

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The Dividend rate of preferred stock = 6%

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Net income = $270,000

Preferred dividend = $96,000 ($1,600,000 x 6%)

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Diluted earnings per share = $270,000/372,000

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8 0
2 years ago
Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process. The normal spoilag
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Answer:

(a) The dollar value of abnormal spoilage.

$499,317.

(b) The cost of the good units finished.

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3 years ago
uppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A thr
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Answer:

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WACC for D: 12.65%

Explanation:

WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)

Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%

Thus WACC for a division will be equal:  3% + 50% x ( 4% + beta of each Division x 9%).

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7 0
3 years ago
Avia Company sells a product for $150 per unit. Variable costs are $70 per unit, and fixed costs are $1200 per month. The compan
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Answer:

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unit contribution margin = $150 - $70

or

unit contribution margin = $80 per unit

Hence,

The correct answer is option $80 per unit

4 0
3 years ago
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