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2 years ago

In preparing a company's statement of cash flows for the most recent year, the following information is available:

Business

2 answers:

svet-max [94.6K]2 years ago

5 0

Answer:

Net cash used from investing activities is $253600

Explanation:

Given data

sale of equipment = $14,400,

Purchase of equipment = 149,000,

sale of equipment = 130,000

Purchase of land = 119,000

increase in accounts = 45,000

Decrease in accounts = 77000

Payment of cash dividends = 37,000

to find out

Net cash flows from investing activities

solution

we will find net cash flow by equation this formula that is

Cash flow from investing = sale of equipment - Purchase of equipment - purchase of land ...............1

put all value in equation 1 we get

Cash flow from investing = 14400 - 149000 - 119000 = - 253600

so that

Net cash used from investing activities is $253600

Butoxors [25]2 years ago

3 0

Answer:

- $ 138,000

Explanation:

The investment activities includes the transaction done on purchasing the equipment and selling the land.

Thus, for the given question

The list of investment activities:

Purchase of Equipment = - $ 149,000

Proceeds from Sales = $ 130,000

Purchase of Land = - $ 119,000

here, the negative sign depicts the amount is paid

thus, the net cash flow from the investment activities

= - $ 149,000 + $ 130,000 + (- $ 119,000)

the net cash flow from the investment activities = - $ 138,000

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The Rhaegel Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the ma

alexira [117]

Answer:

Cost of equity = 14.74%

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock..

Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.

Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM,

E(r)= Rf + β(Rm-Rf)

E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.

Using this model, we can work out the value of beta as follows:

β-1.2 Rf- 4.3%, Rm = 13%

E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74 %

Expected return = 14.74 %

Cost of equity = 14.74%

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3 years ago

Tammy, a resident of Virginia, is considering purchasing a North Carolina bond that yields 4.6% before tax. She is in the 35% Fe

Agata [3.3K]

I think it would be 4.5 percent

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3 years ago

Hardware is adding a new product line that will require an investment of $ 1 comma 450 comma 000. Managers estimate that this in

ozzi

Answer:

6.83%

Explanation:

The computation of the accounting rate of return is shown below:

As we know that

Average accounting rate of return = Average annual operating income ÷ Initial Investment

where,

Average annual operating income is

Year 1 net cash inflow $320,000

Year 2 net cash inflow $280,000

Years 3-10 ($230,000 × 8) $1,840,000

Total net cash flows $2,440,000

Less: Total depreciation ($1,450,000)

$990,000

Divided it by years of life ÷ 10 years

Average annual operating income $99,000

So,

Average accounting rate of return is

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3 years ago

A(n) ______ is maintained for each financial statement item, whereas a(n) ______ contains all of the accounts of the company.

Svetllana [295]

Answer:

An account is maintained for each financial statement item, whereas a(n) general ledger contains all of the accounts of the company.

Explanation:

Financial statements refers to a statement that that provides formal records of all financial activities and standing of a company or any entity in a structured and easily understandable manner.

For each item of financial statement, an account is kept with the aim of giving a an accurate record of all business activities that are germane to that specific financial statement item.

The purpose of a general ledger is to show individual transactions and resulting account balance of each account of a company as a single collection.

Therefore, an account is maintained for each financial statement item, whereas a(n) general ledger contains all of the accounts of the company.

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2 years ago

What is The appearance of text called?

Nezavi [6.7K]

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2 years ago