Answer:
The net operating cashflows are 18,876 dollars.
Explanation:
Operating cashflows are cashflows which an entity generates from it core operations. In other words cash flow related to investment and finance activities do not form part of an entity operaing cashflows.
So in this example interest will not be part of operating cashflows.
For more details please refer to below given calculations.
OCF
Sales 46,200
Cost (23,100)
Tax (4,224) (W-1)
OCF 18,876
(W-1) Calculating profit to find tax paid
(46,200-23,100-2,200-1,700)*22%
Solution:
Given ,
1 Year interest rates in Europe = 4 %
1 Year interest rates in the U.S. = 2 %
You are translating $200,000 and spending $200,000 in French
Current spot rate of the euro = $1.20
a. (2%-4%)/(1+4%)=(S - 1.20) / 1.20
S= $1.1769 one year Euro rate
b. ( $1 / 1.20 )( 1 + 4% )* 1.12 = $.9707 return of -2.93% (loss)
c. ( $1 / 1.20) ( 1 + 4%)* 1.31 = $1.1353 return of 13.53% (gain)
d . ($1 / 1.20) ( 1 + 4%) *S = $1 (1+2%) ;
S=$1.1769
A spot rate of over $1.17697 (this is the same in part A) would be effective.
They would opt to have a sale of bathing suits. They would offer discount from the original price of the bathing suit. In this way, the suits will be bought because its cheaper than before.
The store manager should make sure that the discounted price is still higher than the cost of the bathing suits so that they will still generate profit even at a lower value than initially expected.
Answer: A. Fewer new businesses were started in 2010 than in other years
Explanation:
Define the markets, people, and environments you are addressing
