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3 years ago

The following information is available for Ivanhoe Company for the year ended December 31, 2022.

Business

1 answer:

aivan3 [116]3 years ago

7 0

Answer and Explanation:

The preparation of the cash flow statement is presented below:

Cash Flows From Operating Activities

Net Income $497,175

Adjustments made:

Less: Increase in Accounts Receivable -$14,350

Less: Increase in Inventory -$19,250

Less: Decrease in accounts payable -$6,475

Add: Increase in Income tax payable $8,225

Add: Depreciation Expense $283,500

Net Cash Provided by Operating Activities (A) 748,825

Cash Flows From Investing Activities

Cash received for sale of land at book value $61,250

Less: Cash used to purchase a building -$505,750

Net Cash Provided by Investing Activities (B) -$444,500

Cash Flows From Financing Activities

Cash received from issuing bonds $350,000

Less: Cash used to purchase Treasury stock -$45,500

Less: Cash Dividends Paid -$21,000

Net Cash Used by Financing Activities (C) $283,500

Net Increase in Cash (A+B+C) $587,825

Add: Beginning cash balance 78,750

Ending cash balance $666,575

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Answer:

15.8%.

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Calculation for XYZ's cost of equity using the CAPM

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Let plug in the formula

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Cost of equity= 6% + 1.06×9.25%

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3 years ago

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3 years ago

Primare Corporation has provided the following data concerning last month’s manufacturing operations.

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Explanation:

Primare Corporation

Cost of Goods Manufactured

Beginning work-in-process inventory $56,000

Manufacturing costs:

Direct materials:

Beginning inventory $12,000

Purchases $30,000

Materials available $42,000

Less: Ending inventory -$18,000

Direct materials used $24,000

Less:Indirect materials included in manufacturing overhead -$5,000

Other manufacturing costs

Direct labor $58,0000

Manufacturing overhead applied to work in process $87,000

Less: Ending work-in-process $65,000

Cost of goods manufactured $155,000

b. Primare Corporation

Cost of Goods Sold

Beginning finished goods inventory $35,000

Add: Cost of goods manufactured $155,000

Finished goods available for sale $190,000

Less: Ending finished goods inventory -$42,000

Unadjusted cost of goods sold $148,000

Add: Under applied overhead $4,000

Cost of goods sold $152,000

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3 years ago

On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $168 million. The bonds were priced at $147.2 million

bagirrra123 [75]

Answer:

(A)Balance sheet

Bonds at September 30th

Bonds Payable 168,000,000

Discount on Bonds (20,152,000)

Interest Payable 12,600,000

Net 160,448,000

(B) Income Statment

Interest Expense 13,248,000

(C)Cash Flow Statment

Financing

Cash generate for Bonds issued 147,200,000

Explanation:

Jan 1st, 2018 168,000,000 face value

Issed at 147.2M for an effective rate of 12%

Discount of 20.8M

Bonds at September 30th

accrued interest expense: 147,200,000 x 12% x 9/12 = 13,248,000

interest payable: 168,000,000 x 10% x 9/12 = 12,600,000

amortization of Discount: 648,000

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3 years ago

Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and

Ann [662]

Answer:

a. $2,020 Favorable

Explanation:

The computation of spending variance for direct materials in April is shown below:-

For computing the spending variance for direct materials in April first we need to find out the actual price per unit which is here below:-

Actual price per unit = Actual direct material ÷ Actual units purchased

= $49,086 ÷ $5,060

= $9.70

Spending variance for direct materials in April = (Actual price per unit - Standard price per unit) × Actual quantity

= ($9.70 - $10.10) × 5,060

= -$0.4 × 5,060

= $2,024 Favorable

which is closest to $2,020 Favorable.

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3 years ago