Answer:
Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee's operations and decision making. On January 1, 2015, the balance in the Investment in Lindman account is $337,000. Amortization associated with this acquisition is $10,000 per year.
Explanation:
Answer:
The expected year-end free cash flow is $2.44 million
Explanation:
The formula to compute free cash flow is shown below:
Value of operations = (free cash flow) ÷ (weighted average cost of capital - growth rate)
$57.50 million = free cash flow ÷ (10.25% - 6.00%)
$57.50 million = free cash flow ÷ 4.25%
So, free cash flow equal to
= $2.44 million
The growth rate should always be deducted from the weighted average cost of capital in computing the year ending free cash flow.
Answer:
$44,440.96
Explanation:
We must find the future value of the initial $7,900 deposit and the annuity (17 deposits of $1,200 each)
- future value of the initial deposit = present value x (1 + interest rate)ⁿ = $7,900 x 1.04¹⁸ = $16,003.95
- future value of the annuity = Payment x ([1 + interest rate]ⁿ - 1) / interest rate = $1,200 x (1.04¹⁷ - 1) / 0.04 = $28,437.01
total amount on Angela's savings account = $16,003.95 + $28,437.01 = $44,440.96
False.
While it is true that individuals can choose what to do with their money, both saving and investing are smart decisions when done right.
Answer and Explanation:
<u>Cash flows (Indirect method) from Operating Activities. </u>
<u>Particular Amount </u>
Net Income $53,000
Adjustment:
Add: Depreciation expense $9,000
Loss on sale of land $4,800
Decrease in A/c receivables $23,000
Decrease in Inventory $14,000
<u> Increase in A/c payable $43,000 </u>
<u>Net Cash flows from Operating activities $146,800</u>
