Answer: IFRS permits the classification of cash outflows for interest expense under operating or financing based on which one results in better cash flows from operating activities.
Explanation: The cash flow statement includes only inflows and outflows of cash and cash equivalents; it excludes transactions that do not directly affect cash receipts and payments. These non-cash transactions include depreciation or write-offs on bad debts or credit losses to name a few.
Answer:
The correct answer is unwillingness of borrowers to obtain loans from banks to invest in factories or expansion of the firm.
Explanation:
Solution
<em>Given that:</em>
Leakage problem occurs or happens within an economy when the money goes out of the economy, which leads to a loss in the economic value of goods and services, and also leads to loss in profits making.
This would lead to an unwillingness of borrower's to obtain loans from banks in the expansion of the firm or to invest in factories.
Answer:
The price of the bond will be $879
Explanation:
Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
According to given data
Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually
Number of periods = n = 2 x 8 years = 16 periods
Current Yield = r = 8.3% / 2 = 4.15% semiannually
Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]
Price of the Bond = $521.74 + $357.26 = $879
Answer:
a. Total net revenue:
= Sales revenue - Sales discounts - Sales returns + Rent revenue + Dividend revenue
= 410,000 - 7,930 - 12,560 + 6,610 + 71,490
= $467,610
b. Net income:
= Total net revenue - Cost of goods sold - Interest expense - selling expenses - income tax expense - administrative expenses
= 467,610 - 179,854 - 13,420 - 99,440 - 28,935 - 75,280
= $70,681
c. Dividends declared:
= Beginning Retained earnings + Net income - Ending Retained earnings
= 114,500 + 70,681 - 134,260
= $50,921
d. Income attributable to controlling shareholders:
= Net income - non-controlling interest:
= 70,681 - 19,240
= $51,441
Answer: Joint Venture
A Joint Venture is a business entity that is created when two or more corporations pool in their resources for a specific project.
The corporations that are a part of the Joint Venture share the governance, risks and rewards of the joint venture.
In a Joint venture the corporations who come together to form a joint venture retain their distinct entities.
