Answer:
$43 million
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.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.
Peridot's Net cash outflows from investing activities (in millions)
= -$38 + $96 + $71 - $86
= $43
The gain from the disposal of land will be deducted from the net income under the cash flows from operating activities while the requisition of own shares is a financing activity.
Answer:
D.
Explanation:
Based on the scenario being described within the question it can be said that when allocating funds, the firm should probably assign the highest cost of capital to division Z because it is most likely the riskiest of the three divisions. This is because Division Z focuses on research and development which means that they might not actually discover or create something that can bring value to the company and is therefore highly risky.
Answer:
Option (A) $180,000
Explanation:
The amount of income tax expense has to be reported by the provincial is shown as
$600,000 × 30% = $180,000
Income tax benefits of ($100,000 × 30% = $30,000) should be disclosed separately in the discontinued operations section of income statement.
Therefore, the correct answer is option (A) $ 180,000.
Answer:
The statement is true.
Explanation:
Investment expenditure refers to the expenses incurred on account of creating capital assets.
If a good is produced but is left unsold or not used in the production process, then, they result in increased inventory, which is considered as an investment by the firm.
For the purpose of GDP accounting, unsold goods in inventory are treated as purchased by the firm from itself. As such, they form a part of investment expenditure in the accounting period.
Answer:
b. $19500000.
Explanation:
Break-even point is the level of sales on which business has no profit no loss situation. The business only covers the variable and fixed cost at this point.
Total Contribution can be determined by calculating adding estimated contribution of each division.
Total Contribution ratio = (65% x 30%) + (35% x 50%) = 19.5% + 17.5% = 37%
Fixed cost = $7,215,000
Break-even point = Fixed cost / Contribution margin ratio = $7,215,000 / 37% = $19,500,000
