Answer:
Project's Operating cash inflow is $16,500
Explanation:
Operating cash flows are cash inflow and outflow generated from to day to day business activities. All the cash flows needed to operate the business smoothly.
Operating Cash flows from indirect method is calculated by adding non cash items in net income and any other working capital adjustment to the cash flows.
Net Income = Sales - Costs - depreciation - Taxes = $56,300 - $31,700 - $3,400 - $5,500 = $15,700
because the depreciation is an non cash expense so, it will be added back to the net income for the calculation of Net operating cash flows. Outlay in Net working capital will reduce the net operating cash flow, so it will be deducted.
Net Operating cash flow = $15,700 + $3,400 - $2,600 = $16,500
Answer:
The correct answer is r=(DIV1/P0)+g
Explanation:
The expected rate of return for a stock is usually the dividend yield added to capital gains yield.
Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO
On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.
Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)
Answer:
the overhead cost assigned to Job 971 is $1,020
Explanation:
The computation of the overhead cost assigned to Job 971 is shown below:
= Budgeted Machine overhead cost ÷ Number of set up
= $13,200 ÷ 390
= 34
Now the overhead cost assigned is
= 30 setups × 34
= $1,020
hence, the overhead cost assigned to Job 971 is $1,020
Therefore the last option is correct
Answer:
The correct answer is letter "C": keep prices of downloads low and raise prices for concerts and merchandise.
Explanation:
To maximize profits, Augi's agent should not stop doing any of the commercial activities the pop singer has been carrying out. However, a way to deal with Augi's music internet piracy, the agent could lower the online-song prices but the "losses" can be compensated by raising the concert ticket prices and the singer's merchandise sold there since most of Augi's concerts are sold-outs.
Answer:
- <u><em>$31,858.57</em></u>
Explanation:
1. First calculate the value of a constant annuity of $1,500 for 15 years at the 8% return.
The formula is:
![PV=C[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Where:
- PV is the present value of the annuity
- C is the constant pay,emt: $1,500
- r is the rate of return: 8%/12 = 0.08/12 =
- t is the number of periods: 15 years × 12 moths/year = 180
Substitute and compute:
![PV=\$ 1,500[\dfrac{1}{(0.08/12)}-\dfrac{1}{(0.08/12)(1+0.08/12)^{180}}]](https://tex.z-dn.net/?f=PV%3D%5C%24%201%2C500%5B%5Cdfrac%7B1%7D%7B%280.08%2F12%29%7D-%5Cdfrac%7B1%7D%7B%280.08%2F12%29%281%2B0.08%2F12%29%5E%7B180%7D%7D%5D)
<u>2. Discount to the present year.</u>
You calculate the value of the annuity 20 years from now.
Then, you must discount that value at the same 8% rate to have the price today.
Here, the value in 20 years is $156,960.89, r = 0.08/12, and t = 240 (20 × 12).
