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torisob [31]
2 years ago
8

he 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $2.7 million, and the 2015 balance sheet showed long

-term debt of $2.95 million. The 2015 income statement showed an interest expense of $140,000. The 2014 balance sheet showed $460,000 in the common stock account and $3.2 million in the additional paid-in surplus account. The 2015 balance sheet showed $500,000 and $3.5 million in the same two accounts, respectively. The company paid out $500,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,320,000, and that the firm reduced its net working capital investment by $59,000. What was the firm’s 2015 operating cash flow, or OCF? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Business
1 answer:
ICE Princess25 [194]2 years ago
6 0

Answer: $1,311,000

Explanation:

Operating Cashflow = Cashflow from Assets + Capital spending + changes in Net working capital

Cashflow from Assets = Cashflow to Creditors + Cashflow to Stakeholders

Cashflow to Creditors = Interest paid - Change in long term debt

=  140,000 - (2,950,000 - 2,700,000)

=  -$110,000

Cashflow to Stakeholders

= Dividends paid - New equity issue

= 500,000 - ((500,000 + 3,500,000) - (460,000 + 3,200,000))

= $160,000

Cashflow from Assets = -110,000 + 160,000

= $50,000

Operating cashflow = 50,000 + 1,320,000 + (-59,000)

= $1,311,000

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signed a contract to work for Acme Global. The contract described the terms of her employment, including her pay and benefits. A
Tems11 [23]

Answer:

Express.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

An express contract can be defined as a type of contract in which the terms binding on the two parties are either explicitly stated in writing or orally, or a combination of both.

In this scenario, Angelica signed a contract to work for Acme Global. The contract described the terms of her employment, including her pay and benefits. Thus, Angelica signed an express contract because the exchange of promise is stated explicitly in writing and it's a legally binding agreement on the two parties (employer and the employee).

4 0
2 years ago
The Water Sports Company soon will be producing and marketing a new model line of motor boats. The production manager, Michael J
Licemer1 [7]

Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a.  For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 =  $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then :  1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

4 0
3 years ago
Here are data on two stocks, both of which have discount rates of 8%: Stock A Stock B Return on equity 8 % 5 % Earnings per shar
AfilCa [17]

Answer:

Please sew solution below

Explanation:

a. What are the dividend payout ratios for each firm

Dividend payout ratio = Dividend / EPS

• Payout ratio stock A = $1.30 / $2.6 = 0.5= 50%

• Payout ratio stock B = $1.3 / $1.8 = 0.72222 = 72.22%

b. What are the expected dividend growth rates for each stock.

Growth rate = ROE × (1 - dividend payout ratio)

•Growth rate stock A = 0.08 × (1 - 50%) = 0.04 = 4%

• Growth rate stock B = 0.05 × (1 - 72.22%) = 0.01389 = 1.39%

c. What is the proper stock price for each firm

• Stock A

Price = D1 / (Re - g)

D1= $1.30 * (1 + 0.04)

= 1.352

Stock B

Price = D1 / (Re - g)

D1= $1.30 * (1 + 0.013)

= 1.3169

Therefore,

• Stock A's proper price = $1.352 / (0.08 - 0.04) = $33.8

• Stock B's proper price = $1.3169 / ($0.08 - $0.013) = $19.66

6 0
3 years ago
Students who live on campus and purchase a meal plan are randomly assigned to one of three dining halls: the Commons, Northeast,
Brut [27]

Answer:

What is the probability that the next student to purchase a meal plan will be assigned to the Commons?a. 0.33

Explanation:

P(A) = (No. of ways A can occur)/(Total no. of possible outcomes)

P=1/3

P=0,333

5 0
3 years ago
Read 2 more answers
Washington Inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,
Mashcka [7]

Answer:D.$14,100 gain

Explanation:

The par value of a bond is $100 when it's issued below the price it's issued at a discount which is a loss to the firm and when it's issued above the par value, it's issued at a premium which is a gain.

The issue of $705,000 means 7050 numbers were issued and retiring it $102 means at a premium of $2 per bond and a total of N14,100 gain.

7 0
3 years ago
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