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4 years ago

The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:

Business

1 answer:

Nutka1998 [239]4 years ago

7 0

Answer:

Please see the Cash Flow Statement for Plasma Screens Corporation below:

Explanation:

PLASMA SCREENS CORPORATION

Statement of Cash Flows

For the Year Ended December 31, 2021

CASH FLOWS FROM OPERATING ACTIVITIES $

Net Income 68,000

Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation on Fixed Assets 161,000

(Increase) Decrease in Current Assets:

Accounts Receivables 13,900

Inventory (14,900)

Prepaid Rent (1,900)

Increase (Decrease) in Current Assets:

Accounts Payable 13,900

Interest Payable (6,900)

Income Tax Payable 2,900

NET CASH PROVIDED BY OPERATING ACTIVITIES 236,000

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment (109,000)

NET CASH USED IN INVESTING ACTIVITIES (109,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Notes Payable (115,000)

Payment of Cash Dividends (24,500)

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES (139,500)

NET INCREASE (DECREASE) IN CASH (12,500)

Cash Balance, December 31 2020 154,300

Cash Balance, December 31 2021 141,800

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Targaryen Corporation has a target capital structure of 75 percent common stock, 10 percent preferred stock, and 15 percent debt

erastova [34]

Answer:

WACC = 0.07961 or 7.961% rounded off to 7.96%

After tax cost of debt = 0.0474 or 4.74%

Explanation:

The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.

The formula for WACC is,

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component

r represents the cost of each component

D, P and E represents debt, preferred stock and common stock respectively

WACC = 0.15 * 0.06 * (1 - 0.21) + 0.1 * 0.05 + 0.75 * 0.09

WACC = 0.07961 or 7.961% rounded off to 7.96%

The after tax cost of debt is calculated by multiplying the cost of debt by (1 - tax rate) to adjust for the tax advantage provided by debt as interest payments on debt are tax deductible.

After tax cost of debt = 0.06 * (1 - 0.21)

After tax cost of debt = 0.0474 or 4.74%

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3 years ago

A consumer is a buyer of services. True False

Alex17521 [72]

Answer

True

Explain

a person who purchases goods and services for personal use is a consumer

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3 years ago

Which term can be defined as the net income that a firm reinvests in itself?

KengaRu [80]

Answer:

retention ratio

Explanation:

Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.

When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.

Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.

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3 years ago

current challenges in operations management include all of the following except: part 2 a. rapid product development. b. lean o

Ghella [55]

Out of the choices provided above, it can be said that the current challenges in operations management include all of the following except increased communication cost. Therefore, the option C holds true.

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

Communication costs can be referred to or considered as the costs incurred by an organization to spread awareness and convey the message of achieving efficiency in the management, especially related to the operations of an organization.

Therefore, the option C holds true and states regarding the significance of communication costs.

Learn more about communication costs here:

brainly.com/question/2180772

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2 years ago

Amounts withheld from each employee for social security and medicare vary by state.

satela [25.4K]

It is False.

No matter which states the employee lives, the amounts withheld from each employee for social security and medicare do not vary by state. The present tax rate for social security for employers and employees is 6.2% and the present current rate of medicare is 1.45% for both the employer and employee.

Employers are typically required to withhold Social Security and Medicare taxes from an employee's paycheck and pay the employer's share of those taxes.

The Social Security Tax and the Medicare Tax have different rates, and only the Social Security tax has a salary cap. The base salary ceiling is the maximum taxable salary in the year. Determine the withholding amount for Social Security and Medicare contributions by multiplying each payment by the employee's tax rate.

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2 years ago