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3 years ago

Classlfylng Items on the Indirect statement of cash flows [10 mln]

Business

1 answer:

il63 [147K]3 years ago

3 0

Answer:

Please see the answers below:

Explanation:

(O+) a. Increase in accounts payable

(F-) b. Payment of dividends

(O-) c. Decrease in accrued liabilities

(F+) d. Issuance of common stock

(O-) e. Gain on sale of building

(O+) f. Loss on sale of land

(O+) g. Depreciation expense

(O-) h. Increase in inventory

(O+) i. Decrease in accounts receivable

(I-) j. Purchase of equipment

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Alyssa owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in h

artcher [175]

Answer:

It is an example of the shoes leather costs.

Explanation:

Shoe leather cost is the cost which involve the time as well as the efforts which people spend on trying to counter-act the inflation effects like holding less amount of cash and make additional trips to the bank.

In this scenario, Alyssa in order to protect herself from the effect of the inflation, she sends employee to bank for depositing the money into the bank four times a day. Therefore, it is an example of Shoe leather cost

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4 years ago

Rydell Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $168,000. The project

Inessa [10]

Answer:

-$15,315.21

Reject the project

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The NPV can be found using a financial calculator.

Cash flow in year zero = -168,000

Cash flow in year 1 = $44,800

Cash flow in Year 2 = $51,700

Cash flow in Year 3 = $48,600

Cash flow in Year 4 = $47,900

Interest rate = 10%

NPV = $-15,315.21

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

The decision rule with NPV is to accept the project if the npv is positive. Since the NPV calculated above is negative, the project should be rejected.

I hope my answer helps you

6 0

3 years ago

You will receive $15,000 in two years when you graduate. You plan to invest this at an annual interest rate of 6.5%. How much mo

Sunny_sXe [5.5K]

Answer:

FV= $21,887.13

Explanation:

Giving the following information:

Initial investment= $15,000

Number of periods= 6 years

Interest rate= 6.5% compounded annually

T<u>o calculate the future value of the investment, we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 15,000*(1.065^6)

FV= $21,887.13

8 0

4 years ago

If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is: Multiple Ch

Oliga [24]

Answer:

Margin of safety= $60,000

Explanation:

Giving the following information:

A firm's forecasted sales are $250,000 and its break-even sales are $190,000.

The margin of safety is the excess of sales from the break-even point. To calculate the margin of safety, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= 250,000 - 190,000= 60,000

6 0

3 years ago

Shelley wants to cash in her winning lottery ticket. She can either receive eight $100,000 semiannual payments starting today, o

Aleksandr-060686 [28]

Answer:

single-amount payment $925,160

Explanation:

Given data:

Amount $100,000

Rate 6%

interest semi annually 3%

Number of period 5

Lumpsum Payment $= A\times {PVAF@ I,n}$

$= A\times {PVAF@ 3\%,5}$

calculation for PVAF

PVAF @ I,N $=\frac{(1-(1+I)^-N)}{I}$

[email protected] 3%,5 $= \frac{(1-(1+0.03)^{-5})}{0.03}$

=4.58

Lumpsum Payment =202000*4.58

=925160

6 0

3 years ago