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3 years ago

Calculate the end of the year cash balance based on the information below:

Business

1 answer:

WINSTONCH [101]3 years ago

7 0

Answer: $2,180

Explanation:

Net income is already derived from revenue so adding revenue would be double counting.

Depreciation is a non cash expense so should be added back to cash holdings.

Negative changes in operating assets and liabilities reduces cash.

Acquisitions of Property and Plants reduces cash

Dividends also reduce cash

Increase in debt increases cash.

Cash balance is therefore:

= Beginning of year cash + Net income + Depreciation + Increase in long-term debt - Negative changes in operating assets and liabilities - Acquisitions of PP - Dividends paid in current year

= 1,600 + 450 + 100 + 500 - 60 - 300 - 110

= $2,180

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The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance

n200080 [17]

Answer:

The adjusted balance will be of $ 25,420

Explanation:

For the bank reconciliation we should post what is the unknow information for each party.

CASH

Balance 24,930

Service Charge -50

accounting mistake 540

(+710 to ammend the mistake - 170 real value of the check)

Adjusted Balance 25,420

BANK

Balance 26,420

Outstanding Check -5,060

Deposit in transit 4,060

Adjusted Balance 25,420

4 0

4 years ago

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a rep

AleksandrR [38]

Answer:

Value of the company is $140.70

Explanation:

We need first of all turn the equity beta from an unlevered to a levered beta with the below formula:

BU = BL / [1 + ((1 - Tax Rate) x Debt/Equity)]

BL=BU*[1 + ((1 - Tax Rate) x Debt/Equity)]

BU is levered beta

BL is the levered beta which is unknown

tax rate is 30% or 0.3

debt/equity =0.4

BU is 1.7

BL=1.7*[1 + ((1 - 0.3) x 0.4)

BL=1.7*(1+(0.7*0.4)

BL=1.7*(1+0.28)

BL=1.7*1.28

BL=2.176

Cost of equity=Rf+beta*market risk premium

Rf is the risk free rate of 6%

market risk premium is 11%

cost of equity=6%+2.176*11%

cost of equity=6%+23.94%

cost of equity =29.94%

In valuing the company the stock price formula below can be adapted

stock price=Do*(1+g)/(r-g)

Do is the dividend but can be replaced with a proxy free cash flow,since dividend per share is meant to compute price of one share,but FCF is to calculate the value of the entire company.

The free cash flow is computed below

FCF=EBIT*(1-t)+depreciation and amortization-capital expenditure-net increase in working capital

FCF=$56*(1-0.3)+$5.6-$5.3-$2.7

FCF=$36.8 million

g is the growth rate of FCF at 3%

r is the cost of equity of 29.94%

value of the company=$36.80*(1+3%)/(29.94%-3%)

value of the company=$36.80*1.03/0.2694

=$140.70

5 0

3 years ago

What should workers be told about discrimination before entering the workforce? Is this good advice? Why or why not? Justify you

marishachu [46]

Answer

Workers should avoid discrimination and unfair treatment at work places.

Explanation

In the United States, the Civil Right Act of 1964 and other cats prohibits discrimination at workplace. Increased cultural and gender diversity has brought to work together so as to reach job goals thus discrimination should be avoided conflicts and misunderstanding at workplaces.This is a good advise because it will increase staff morale and improve productivity due to proper utilization of workers from diverse origins.

6 0

4 years ago

Read 2 more answers

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing

likoan [24]

Answer:

Required 1

Process cost summary for May

Inputs

Units Dollars

Beginning Work In Process 3,600 $269,340

Started 24,300 $3,027,360

Totals 27,900 $3,296,700

Output

Units Dollars

Transfer to Finished Goods 25,200 $3,024,000

Closing Work In Process 2,700 $272,700

Total 27,900 $3,296,700

Required 2

May 31

Finished Goods Inventory 3,024,000 (debit)

Work In Process 3,024,000 (credit)

Explanation:

Equivalent Units of Production Calculation

Materials

Units Completed and Transferred ( 25,200 × 100%) = 25,200

Units in Closing Work In Process ( 2,700 × 100%) = 2,700

Total Equivalent Units of Production = 27,900

Conversion Cost

Units Completed and Transferred ( 25,200 × 100%) = 25,200

Units in Closing Work In Process ( 2,700 × 80%) = 2,160

Total Equivalent Units of Production = 27,360

Calculation of Cost per Equivalent Unit of Production

Cost per Equivalent Unit = Total Cost / Total Equivalent Units of Production

Materials = ( $20,400 + $677,100) / 27,900

= $25.00

Conversion Cost = ( $248,940 + $2,350,260) / 27,360

= $95.00

Total Cost per Equivalent Unit = $120.00

The cost of completed units to finished goods inventory = 25,200 × $120.00 = $3,024,000.

7 0

3 years ago

When should you look for a bank or credit union that offers the LOWEST interest rates?

Harman [31]

Answer:

A. When borrowing capital to start a business

Explanation:

When you want money, you must pay for it. the price of the money is called "interest" thus, if you are expecting to open up a business a need money for it you must acquire that money at the cheapest price possible. This means at the lowest interest rate.

3 0

4 years ago

Read 2 more answers