Answer: d. a deduction of $80,000 under financing activities.
Explanation:
Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.
The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.
Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.
Answer: -13.35%
Explanation:
Based on the information given in the question, the annual rate of return on this painting will be calculated thus:
Sales price of painting = $1,080,000
Cost price of painting = $1,660,000
The sales Price formula is given as
= Cost price × (1 +r)³
1080000 = 1660000 × (1+r)³
1,080,000/1,660,000 = (1+r)³
0.65 = (1 + r)³
Annual rate of return r will now be:
= 0.6506^⅓ - 1
= -13.35%
Answer:
It is 15.68 times
Explanation:
Price-Earnings Ratio = Market Price per share (MPS)/Earning per share (EPS).
Where EPS = $231,971 /55,100
= $4.21
Hence, Price-Earnings Ratio = 66/4.21
=15.68 times
P/E ratio shows the expectations of the market and is the price you pay per unit of current earnings.
The ratio is as well being used for valuing companies and to find out whether they are overvalued or undervalued most especially by the investors.
Earl has $310 dollars in his checking account