Answer:
The Net cash is 224.000
Explanation:
To get net cash flow using the indirect method we must make adjustment to the net income.
It depends on the movement if it is added or subtracted to net income
In this case,
Net income 252.000
+ Depreciation expense 26.000
- Increase in accounts receivable (15.000)
- inventory increased (40.000)
+ decreased Prepaid expenses 2.000
- accounts payable decreased (4.000)
+ loss on the sale of equipment 3.000
Net cash 224.000
<span>What is the periodic interest rate of Melanie's investment?
How many compounding periods does Melanie's investment offer in a year? How about in 8 year?
Semiannually means that it is twice in a year, then:
- the number of compounding periods in a year is 2.
- the number of compounding periods in 8 years is 2 * 8 = 16
What expression can Melanie write to figure out how much her investment will be worth in 8 years?
Use the formula : F = P * ( 1+ r/n) ^ (n*t)
P is the initial investment = $12,000
n = the number of periods per year, which is 2
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<span><span>r is the yearly rate = 4.8% = 0.048
t is the number of years, which is 8.
Then, the equation is F = $12,000 * ( 1 + 0.048/2) ^ (8*2) =
= $12,000 ( 1+ 0.024)^ 16 = $12,000 (1,024)^16
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How much will Melanie's investment be worth in 8 years?</span>
Just use the calculator: 12,000 (1,024)^16 = $17,538
<span>True, stocks have historically
delivered higher returns than bonds because there is a greater risk that, if
the company fails, all of the stockholders' investment will be lost. On the
flip side, however, there is a return to stockholders that could potentially </span>dwarf<span> <span>what they could earn investing in bonds. Stock investors will
judge the amount they are willing to pay for a share of stock based on the
perceived risk and the </span></span>expected return<span> potential – a return potential that is driven by earnings
growth.</span><span>
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