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RideAnS [48]
3 years ago
9

In a statement of cash flows using the indirect method, an increase in the available-for-sale debt securities account due to an

increase in the debt's fair value should be reported as: Group of answer choices A deduction from net income in determining cash flows from operating activities. Not reported. An investing activity. An addition to net income in determining cash flows from operating activities.
Business
1 answer:
Bess [88]3 years ago
5 0

Answer: Not reported.

Explanation:

The Indirect method includes Net income in its calculation but this would not include any increase in Available-For-Sale (AFS) debt securities as these fall under other comprehensive income in the balance sheet.

Most importantly, the indirect method of calculating the cash the company has is for calculating just that, the cash. This means that an increase in the AFS security due to its fair value increasing will bring in no additional cash to the company so it is not reported in the cash flow statement.

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Can I get your email and name so i can help you with work?
vfiekz [6]
Help with what work? Our school work? If so comment on my question
5 0
3 years ago
The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decr
s344n2d4d5 [400]

The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

<h3>Aggregate expenditures schedule</h3>

Using this formula

Aggregate expenditures schedule=Marginal propensity to save×Equilibrium gdp

Where:

Marginal propensity to save=0.2

Equilibrium gdp=$50 billion

Let plug in the formula

Aggregate expenditures schedule=0.2×$50 billion

Aggregate expenditures schedule=$10 billion

Therefore the marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

Learn more about Aggregate expenditures schedule here:brainly.com/question/13117251

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3 0
2 years ago
West Corp. issued 10-year bonds two years ago at a coupon rate of 8.1 percent. The bonds make semiannual payments. If these bond
REY [17]

Answer:

Yield To Maturity is 7.82% per year and 3.9% per 6 months

Explanation:

Assuming Coupon value is $100

C = Coupon Payment = 100 x 8.1%/ = $8.1

F = Face Value = $100

P = Price = $102

n = number of years = 10

Yield To Maturity = ( C + ( F - P )/n ) / ( ( F + P ) / 2 )

Yield To Maturity = ( $8.1 + ( $100 - $102 )/10 ) / ( ( $100 + 102 ) / 2 )

Yield To Maturity = $7.9 / $101

Yield To Maturity = 7.82%

8 0
4 years ago
Holt Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 19% for 2 years followed by a
lyudmila [28]

Answer:

The horizon date of Holt Enterprises is at the end of the second year.

Explanation:

The horizon date is when there is a constant growth or the growth rate becomes constant. The horizon date is the last year in the free cash flow when the growth rate is constant. It is also called forecast horizon or terminal date because it is at the end of the forecast. At the horizon date,  the firm becomes stable and profitable.

The horizon date of Holt Enterprises is at the end of the second year.

6 0
3 years ago
Melanie wants to open a restaurant near Central Park in New York. She understands that there are many restaurants in the vicinit
Pani-rosa [81]

Answer:

Perfect Competition.

Explanation:

Melanie wants to open a restaurant near central park New York. There are many restaurants in the vicinity. She has to compete in this market. She can enter the market by opening her own restaurant with different dishes and a but lower price as compared to the other restaurants. So she is planning to use the Perfect Competition in order to enter the market of similar products.  

8 0
3 years ago
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