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zloy xaker [14]
3 years ago
8

You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement also helps determine

whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets.
Which of the following is true for the statement of cash flows?
a. It reflects cash generated and used during the reporting period.
b. It reflects revenues when earned.
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.
Globo-Chem Co. reported net sales of $200 million last year and generated a net income of $44 million. Last year's accounts receivable increased by $20 million. What is the maximum amount of cash that Globo-Chem Co. received from sales last year?
a. $135 million
b. $64 million
c. $90 million
d. $180 million
Business
1 answer:
Rufina [12.5K]3 years ago
7 0

Answer:

Which of the following is true for the statement of cash flows?

  • a. It reflects cash generated and used during the reporting period.

Revenues are recognized when the earning process is completed, and they are not necessarily associated to the collection of cash, e.g. accounts receivable.

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.

What statements? I looked for a similar question:

  • Ruth Enterprises distributes a holiday bonus to all its employees ⇒ OPERATING ACTIVITY
  • Yum Co. uses cash to repurchase 10% of its common stock. ⇒ FINANCING ACTIVITY
  • A company buys some common stock in its supplier's firm with its extra cash. ⇒ INVESTING ACTIVITY
  • A company records a decrease in its total raw materials inventory from the previous year. ⇒ OPERATING ACTIVITY

Globo-Chem Co. reported net sales of $200 million last year and generated a net income of $44 million. Last year's accounts receivable increased by $20 million. What is the maximum amount of cash that Globo-Chem Co. received from sales last year?

  • d. $180 million

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the amount of financial aid that they offer

Explanation:

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Pension data for Fahy Transportation Inc. include the following: ($ in millions) Discount rate, 9% Expected return on plan asset
mixer [17]

Answer: $45 million

Explanation:

Cash Contributions during the year can be calculated by;

= Ending Plan assets + Retiree benefits - Opening plan assets - Actual return

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3 0
3 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00
charle [14.2K]

Answer:

Total relevant cost = $143,288

Explanation:

In a make-or buy decision , to determine the optimal course of action we compare the purchase  cost of the component from the external market to the relevant variable cost of internal production.  Where the relevant cost of in-house production is less than the external price, the company should  produce internally and vice versa

Differential cost per unit = 16 - 12 = $4

Total relevant cost = $4× 35,822 = $143,288

Total relevant cost = $143,288

Note the fixed cost of $10 per unit is exclude because it is not relevant ; it would be incurred either way

6 0
4 years ago
Dorrance, the coach of the UNC women’s soccer team, has an eye for recruiting outstanding talent. In business language, this is
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Answer: Selective hiring

Explanation: In the selective hiring process the managers of an organisation sets a criteria for the job available. While recruiting the managers sticks to the criteria strictly and only those employees are hired who fits that particular criteria.

In the given case, Dorrance wants to recruit someone with excellent skills in soccer, thus we can conclude that she is doing selective hiring.

5 0
3 years ago
UPX bank is selling a security that makes equal annual payments of $7,000 with the first payment 3 years from today and the last
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Answer:

The security is worth $30,570.77.-

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Giving the following information:

Annual payment (3 to 9)= $7,000

Interest rate= 5.1%

<u>First, we need to determine the value of the security 3 years from now:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {7,000*[(1.051^6) - 1]} / 0.051

FV= $47,833.35

PV= FV/(1+i)^n

PV= 47,833.35 / 1.051^6

PV= $35,490.70

The value of the security in 3 years is $35,490.70.

<u>Now, the present value:</u>

PV= 35,490.70 / 1.051^3

PV= $30,570.77

The security is worth $30,570.77.-

7 0
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