Answer:
$505
Explanation:
Armstrong Company
Cash flow from operating activities
Adjustments to reconcile net income to operating cash flow.
Net income
$450
Less : Increase in plant and equipment
($170)
Add : Depreciation expenses
$80
Add : Payment of dividends
$10
Add : Decrease in accounts receivable
$20
Add : Increase in long term debt
$100
Less : Increase in Inventories
($15)
Add : Decrease in Account payable $30
Net Cash flow from operating activities
$505
Answer:
$30,947.92
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor + - initial investment
where,
The Initial investment is $74,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 9 years at 8%
= $16,800 × 6.2469
= $104,947.92
Refer to the PVIFA table
So, the net present value is
= $104,947.92 - $74,000
= $30,947.92
Answer:
The correct answer for gain on transfer is $40,000 and the basis of his stock is $0.
Explanation:
According to the scenario, the given data are as follows:
Liability on the transferred real estate = $300,000
Amount transferred on adjusted basis = $260,000
So, we can calculate the gain on the transfer by using following formula:
Gain on transfer = Liability on the transferred real estate - Amount transferred on adjusted basis
= $300,000 - $260,000
= $40,000
Hence, the gain on the transfer is $40,000 and $0 on the basis of stock because 100% stock exchanged.
Answer:
A. Line of credit
Explanation:
Renita is using a line of credit because her financing option has the following characteristics:
- A maximum amount she can withdraw, in this case $50,000
- She can draw from that maximum amount as she needs, for example, she could have one month $30,000, and the following month $20,000, effectively exhausting her credit in a two-month period.
- She can pay off her debt either at specified periods of time, or in full at any time.
All those characteristics above are specific of a line of credit.
Answer: b.if a seller charges more than the going price, buyers will go elsewhere to make their purchases
Explanation:
A competitive market is characterised by :
1. Firms in the market been price takers.
2. No barriers to entry or exit.
3. Perfect homogenous products.
Because goods in a competition market are homogenous, if a firm increases it's price, customers would go and buy the product from the firm that sells at the market price.
Also firms in a competitive market are price takers, so they cannot set the market price.
