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Irina18 [472]
3 years ago
8

Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect

method.
Cash balance at prior year-end $43,600 Gain on sale of machinery $2,900
Increase in inventory 8,600 Cash received from sale of
machinery 11,300
Depreciation expense 7,600 Increase in accounts payable 3,300
Cash received from issuing stock 11,600 Net income 59,000
Cash paid for dividends 4,600 Decrease in accounts
receivable 6,600
Business
1 answer:
r-ruslan [8.4K]3 years ago
7 0

Answer:

                                                 VPI Co.

            Cashflow statement for the year ended December 31

                                                                               $

Operating activities                                            

Net income                                                         59,000

Add Depreciation                                                 7600

Less gain from sale of machinery                      (2900)

Increase in Inventory                                          (8,600)

Increase in accounts payable                              3,300

Decrease in accounts  receivable                      <u>  6,600</u>

Cash flow from Operating activities                  65,000

Investing activities

Cash received from sale of  machinery              11,300

Financing activities

Cash paid for dividends                                      (4,600)

Net cashflow                                                        71,700

Cash balance at prior year-end                       <u> </u><u>43,600</u>

Cash balance at current year-end                  <u> 114,300</u>

Explanation:

The indirect method of cashflow statements starts with the cashflows from the operating activities to Financing and then investing activities.

An increase in an asset other than cash is a decrease in cash and vice versa. An increase in a liability is an increase in cash and vice versa. We add or subtract none cash items like depreciation, gain on asset disposal etc.

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There are 12 general categories of threat to an organization's people, information, and systems. List at least six of the genera
Alenkinab [10]

Answer:

1. Human Error: an example is disregard to safety measures.

2. Compromises to Intellectual Property: an example is piracy of an organization's product.

3. Forces of Nature: an example is earthquake.

4. Information extortion: an example is coercion or blackmail.

5. Quality of service deviation: an example is an epileptic or poor power supply.

6. Industrial espionage: an example is unethical hacking of data.

Explanation:

A threat to an organization's people, information, and systems is basically any circumstances or events that poses a potential danger, damage or adverse affect to its smooth running.

These threats can be classified into six (6) categories and these are;

1. Human Error or failure: this are errors that arise as a result of having incompetent employees (slips and lapses) or mistakes stemming from the workers. <em>An example of human error is an employee that disregard safety measures. </em>

2. Compromises to Intellectual Property: this usually occurs when an intellectual property is stolen illegally from an organization. <em>An example is piracy of an organization's product.</em>

3. Forces of Nature: this is usually caused by a natural disaster. <em>Examples of forces of nature are flood, earthquake, fire etc. </em>

4. Information extortion: this arises when sensitive data about an organization is held through <em>coercion, bribery or computer hacking</em>.

5. Quality of service deviation: this would occur when there's a shortage in the quality of service received by an organization, contrary to what is expected or required. <em>Examples are poor power supply, poor internet service etc. </em>

6. Industrial espionage: this is as a result of loosing sensitive data to <em>unauthorized individuals or hackers.</em>

7 0
3 years ago
Dakota Corporation decided to issue three-year bonds denominated in 5 million Russian rubles at par. The bonds have a coupon rat
sertanlavr [38]

Answer:

23.39%

Explanation:

From the given information, the amount was raised in rubies, Hence, we will convert them to dollars to be able to pay back the needed obligations.

However, according to the exchange rates, the IRR of dollar cash flow is the actual cost of financing that the company will address.

By applying the EXCEL FORMULA to compute the actual cost of financing, we get;

   A                    B                    C                    D                          E

Coupon              17%

Year                      0                    1                    2                         3

Cashflow in

rubles            5,000,000   5000000*17%  5000000*17%    5000000+850

                                           = 850000          = 850000         000

                                                                                                 = 5850000

Exchange          $0.30         $0.032                 $0.034              $0.035

rate

(per rubles)   5,000,000       5,000,000          5,000,000      5,000,000

Cash flow      × 0.03            × 0.032               × 0.034           × 0.035

in dollars    =  $150000.00  27200.00        28900.00           204750.00

IRR                   23.39%

8 0
3 years ago
In many larger U.S. based firms the __________ match(es) the overall strategy of the firm and reinforce(s) the culture emerging
Gre4nikov [31]

Answer:

Reward system

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The reward system is the mechanism that a company uses to provide a compensation to their employees that can include salary, bonuses, equity and perks to keep them happy, maintain loyalty and increase motivation. This allows the company to have a strong team that is willing to work hard in their daily activities to achieve the company's goals.

According to this, the answer is that in many larger U.S. based firms the reward system match(es) the overall strategy of the firm and reinforce(s) the culture emerging from day-to-day activities because the reward system is established in a way in which it contributes to the appropiate implementation of the strategy to achieve the goals and it also helps strengthen the way in which people perform their activities.

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3 years ago
When a firm's customers make investments in order to use its particular product or service, the customers incur which type of co
vladimir1956 [14]

When a firm's customers make investments in order to use its particular product or service, the customers incur switching costs if they purchase another firm's products or services instead. Therefore, the option B holds true.

<h3>What is the significance of switching costs?</h3>

The switching costs can be referred to or considered as the costs incurred by the customers of a product or a service when they use the alternatives or the competitive products available in the market, instead of the product they were using earlier.

Therefore, the option B holds true and states regarding the significance of the switching costs.

Learn more about switching costs here:

brainly.com/question/14728758

#SPJ1

When a firm's customers make investments in order to use its particular product or service, the customers incur which type of costs if they purchase another firm's products or services instead?

A. Acquisition costs

B. Switching costs

C. Alternative costs

D. Replacement costs

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What is a sound recorder used for
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