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katovenus [111]
3 years ago
7

Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $0.5 millio

n to buy short-term investments, sold used equipment for $0.8 million when its book value was $0.6 million, and purchased new equipment for $3.4 million. What was the net cash flow from investing activities? $6.3 million net cash outflow. $5.3 million net cash outflow. $5.1 million net cash outflow. $4.8 million net cash outflow.
Business
1 answer:
LenKa [72]3 years ago
8 0

Answer:

Net cash flow from investing activities -$5.3 million

Explanation:

The computation of the net cash flow from investing activities is shown below:

Purchase stock -$2.2 million

Short term investment purchase -$0.5 million

Sold equipment $0.8 million

Purchase new equipment -$3.4 million

Net cash flow from investing activities -$5.3 million

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I think the correct answer would be contract manufacturing. This method makes use of a firm or manufacturer that is contracted to make products for another company. It is a type of outsourcing. Hope this answers the question.
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Which of the following is the most popular framing system used today?
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Which of the following is the most popular framing system used today?a. platform frame
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2 years ago
Sam is comparing the costs of two loans. The principal amount of each loan is $5,000. One is due in one year and the other is du
Naya [18.7K]

Answer:

b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan

d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

Explanation:

Sam is comparing the costs of two loans.

The principal amount of each loan is $5,000.

One is due in one year and the other is due in four years.

Both have the same stated rate of annual interest.

Two of the following are true:

<u>b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.</u>

Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5

d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

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8 0
2 years ago
Read 2 more answers
The lakeshore hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: month guest-day of
Law Incorporation [45]

Answer:

cost formula: Total cost = F + (V x Q) = $4,500 + ($0.75 x Q)

  • F = fixed costs = $4,500
  • V = variable costs = $0.75 per guest day
  • Q = number of guest days

Explanation:

month                      occupancy              supplies expenses

march                           4,000                         $7,500

april                              6,500                         $8,250

may                              8,000                        $10,500

june                             10,500                       $12,000

july                               12,000                       $13,500

august                           9,000                       $10,750

september                    7,500                         $9,750

high activity level        12,000                       $13,500

low activity level           4,000                        $7,500

variation                        8,000                        $6,000

variable cost per guest-day = $6,000 / 8,000 = $0.75

fixed costs per month = $13,500 - (12,000 x $0.75) = $4,500

cost formula: Total cost = F + (V x Q)

F = fixed costs = $4,500

V = variable costs = $0.75 per guest day

Q = number of guest days

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