Answer: a. true
Explanation:
Cash payback period shows the amount of time it will take for cash inflows from an investment to pay off the investment.
Cash payback period = Investment/ Cash inflow
= 80,000/32,000
= 2.5 years
<em>Statement is proven true. </em>
Answer:
I believe all of the above
Explanation:
went with what came to mind if its wrong very sorry.
Answer and Explanation:
The computation of the incremental income is as follows;
Particulars Sale as scrap Rework
Sales of reworked units
(16,000 × $8.60) $137,600
Sales of scrap units
(16,000 × $3.10) $49,600
Cost to rework units
(16,000 × $4.50) ($72,000)
Incremental income (loss) $49,600 $65,600
The basic purpose of measuring cash flow is to estimate how much<span> a. net </span>cash<span> a company has during a given period. ... The executive team at Midas Muffler and Brake decides to publish a statement of its available </span>cash<span> that subtracts from the</span>cash<span>, the planned investments in new shops and new technology.</span>
Answer:
A. A $16,000 cash inflow in the investing activities section of the cash flow statement.
Explanation:
The gain on sale of asset is,
Gain on disposal = Selling price - Net Book value of asset
Gain on disposal = 16000 - (44000 - 32000) = $4000
However, this gain is a non cash item as it is only reported on the books and there is no cash inflow or outflow that relates to this gain. Thus, option C and D become invalid as there is no cash related to this disposal gain as it is merely a book item.
A sale of asset doesnot increase but rather decrease total assets so option B become invalid. The correct answer is A as the asset is being sold for 16000 thus a cash inflow of 16000 is taking place.